Note 2. Revenue

Impact of ASC Topic 606 on Condensed Consolidated Financial Statement Line Items

The adoption of ASC Topic 606 impacted revenue recognition and incremental costs of obtaining a contract on our condensed consolidated balance sheet as of July 31, 2018 and statement of operations for the three and six months ended July 31, 2018. There was no impact on the total cash (used in) provided by operating activities for the three and six months ended July 31, 2018. Refer to Note 1 for a description of the primary impacts resulting from the adoption of ASC Topic 606.

The following tables present the amount by which each condensed consolidated financial statement line item is affected as of and for the three and six months ended July 31, 2018 by ASC Topic 606 (in thousands, except per share data):

	July 31, 2018
	As Reported			Balances without adoption of ASC Topic 606			Effect of Change
ASSETS
Accounts receivable*	$	114,779		$	114,622		$	157
Deferred commissions		16,855			14,623			2,232
Deferred commissions, non-current		44,059			7,041			37,018
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deferred revenue		281,765			284,249			(2,484	)
Deferred revenue, non-current		19,752			22,042			(2,290	)
Accumulated deficit		(1,074,008	)		(1,118,189	)		44,181

Contract assets are reported as part of accounts receivable upon the adoption of ASC Topic 606.

	Three Months Ended July 31, 2018									Six Months Ended July 31, 2018
	As Reported			Balances without adoption of ASC Topic 606			Effect of Change			As Reported			Balances without adoption of ASC Topic 606			Effect of Change
Revenue	$	148,222		$	150,941		$	(2,719	)	$	288,729		$	294,194		$	(5,465	)
Operating expenses:
Sales and marketing		76,984			82,588			(5,604	)		153,982			163,826			(9,844	)
Loss from operations		(37,219	)		(40,104	)		2,885			(73,079	)		(77,458	)		4,379
Net loss		(38,085	)		(40,970	)		2,885			(74,722	)		(79,101	)		4,379
Net loss per common share, basic and diluted	$	(0.27	)	$	(0.29	)	$	0.02		$	(0.54	)	$	(0.57	)	$	0.03
Weighted-average shares used to compute net loss per share, basic and diluted		140,718			140,718			140,718			139,639			139,639			139,639

	Three Months Ended July 31, 2018									Six Months Ended July 31, 2018
	As Reported			Balances without adoption of ASC Topic 606			Effect of Change			As Reported			Balances without adoption of ASC Topic 606			Effect of Change
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(38,085	)	$	(40,970	)	$	2,885		$	(74,722	)	$	(79,101	)	$	4,379
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Amortization of deferred commissions		4,040			5,980			(1,940	)		7,715			11,942			(4,227	)
Changes in operating assets and liabilities:
Accounts receivable, net		(23,754	)		(23,793	)		39			47,936			47,511			425
Deferred commissions		(8,588	)		(4,924	)		(3,664	)		(13,304	)		(7,687	)		(5,617	)
Deferred revenue		14,568			11,888			2,680			(9,592	)		(14,632	)		5,040
Net cash (used in) provided by operating activities		(1,267	)		(1,267	)		—			17,173			17,173			—

Contract Assets

Contract assets, which are presented within accounts receivable, were $0.2 million as of July 31, 2018.

Deferred Revenue

Deferred revenue was $301.5 million as of July 31, 2018. $115.2 million of revenue was recognized during the three months ended July 31, 2018 that was included in the deferred revenue balance as of April 30, 2018. $197.6 million of revenue was recognized during the six months ended July 31, 2018 that was included in the deferred revenue balance as of February 1, 2018.

Transaction Price Allocated to the Remaining Performance Obligations

As of July 31, 2018, approximately $587.2 million of revenue is expected to be recognized from remaining performance obligations for subscription contracts. We expect to recognize revenue on 66% of these remaining performance obligations over the next 12 months, with the balance recognized thereafter.