Revenue

3 Months Ended

Apr. 30, 2020

Revenue Recognition

Disaggregation of Revenue

Based on the information provided to and reviewed by the Company’s Chief Executive Officer, the Company believes that the nature, amount, timing and uncertainty of its revenue and cash flows and how they are affected by economic factors is most appropriately depicted through the Company’s primary geographical markets and subscription product categories. The Company’s primary geographical markets are North and South America (“Americas”); Europe, Middle East and Africa (“EMEA”); and Asia Pacific. The Company also disaggregates its subscription products between its MongoDB Atlas-related offerings, which includes mLab, and other subscription products, which includes MongoDB Enterprise Advanced.

The following table presents the Company’s revenues disaggregated by primary geographical markets, subscription product categories and services (in thousands):



	Three Months Ended April 30,
	2020		2019
Primary geographical markets:
Americas	$	81,538	$	57,756
EMEA	39,009		25,320
Asia Pacific	9,782		6,312
Total	$	130,329	$	89,388

Subscription product categories and services:
MongoDB Atlas-related	$	54,170	$	30,863
Other subscription	70,686		53,131
Services	5,473		5,394
Total	$	130,329	$	89,388

Customers located in the United States accounted for 58% and 60% of total revenue for the three months ended April 30, 2020 and 2019, respectively. Customers located in the United Kingdom accounted for 9% and 10% of total revenue for the three months ended April 30, 2020 and 2019, respectively. No other country accounted for 10% or more of revenue for the periods presented.

Contract Liabilities

The Company’s contract liabilities are recorded as deferred revenue in the Company’s condensed consolidated balance sheet and consists of customer invoices issued or payments received in advance of revenues being recognized from the Company’s subscription and services contracts. Deferred revenue, including current and non-current balances, as of April 30, 2020 and January 31, 2020 was $193.0 million and $190.8 million, respectively. Approximately 52% and 50% of the total revenue recognized for the three months ended April 30, 2020 and 2019, respectively, was from deferred revenue at the beginning of each respective period.

Remaining Performance Obligations

Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of April 30, 2020, the aggregate transaction price allocated to remaining performance obligations was $209.7 million. Approximately 54% is expected to be recognized as revenue over the next 12 months and the remainder thereafter. The Company applies the practical expedient to omit disclosure with respect to the amount of the transaction price allocated to remaining performance obligations if the related contract has a total duration of 12 months or less.

Unbilled Receivables

Revenue recognized in excess of invoiced amounts creates an unbilled receivable, which represents the Company’s unconditional right to consideration in exchange for goods or services that the Company has transferred to the customer. Unbilled receivables were recorded as part of accounts receivable, net in the Company’s condensed consolidated balance sheets. As of April 30, 2020, unbilled receivables were $5.9 million.

Allowance for Doubtful Accounts

The adoption of ASU 2016-13 on February 1, 2020 required the Company to shift from an incurred loss impairment model to an expected credit loss model. Accordingly, the Company is required to consider expectations of forward-looking losses, in addition to historical loss rates, to estimate its allowance for doubtful accounts on its account receivables. The following is a summary of the changes in the Company’s allowance for doubtful accounts (in thousands):



	Allowance for Doubtful Accounts
Balance at January 31, 2020	$	2,515
Adoption of new accounting standard	50
Provision	2,075
Recoveries/write-offs	(313		)
Balance at April 30, 2020	$	4,327

The Company is closely monitoring the potential impact from the COVID-19 pandemic and associated global economic uncertainty on its business. A higher allowance was recorded during the three months ended April 30, 2020 due to the potential adverse impact the COVID-19 pandemic may have on factors that affect the Company’s estimate of current expected credit losses, including possible financial difficulties faced by a portion of the Company’s customers.

Costs Capitalized to Obtain Contracts with Customers

Deferred commissions were $80.0 million as of April 30, 2020. Amortization expense with respect to deferred commissions was $6.5 million and $4.4 million for the three months ended April 30, 2020 and 2019, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.