Revenue and Performance Obligations

12 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

Subscription revenue is recognized over time and accounted for approximately 94%, 95% and 93% of our revenue for the years ended January 31, 2020, 2019 and 2018.

As of January 31, 2020, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $768.7 million. We expect to recognize 53% of the transaction price allocated to remaining performance obligation within the 12 months following January 31, 2020 in our consolidated statement of operations and comprehensive loss.

Contract Balances

Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $13.4 million and $11.9 million as of January 31, 2020 and 2019, of which $0.9 million and $1.3 million were noncurrent and included within “Other assets—noncurrent” on our consolidated balance sheets. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers.

Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the years ended January 31, 2020, 2019 and 2018, we recognized revenue of $374.8 million, $264.0 million and $180.4 million that was included in the corresponding contract liability balance at the beginning of the periods presented.

We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days.

Deferred Contract Acquisition and Fulfillment Costs

The following table represents a rollforward of our deferred contract acquisition and fulfillment costs:


	Year Ended January 31,
(in thousands)	2020		2019
Deferred Contract Acquisition Costs
Beginning balance	$	115,985	$	77,344
Additions to deferred contract acquisition costs	99,382		78,983
Amortization of deferred contract acquisition costs	(58,192)		(40,342)
Cumulative translation adjustment	(1,478)		—
Ending balance	$	155,697	$	115,985

Deferred Contract Fulfillment Costs
Beginning balance	$	3,432	$	3,316
Additions to deferred contract fulfillment costs	16,341		1,886
Amortization of deferred contract fulfillment costs	(11,555)		(1,770)
Ending balance	$	8,218	$	3,432