Deferred Revenue and Commissions

12 Months Ended

Feb. 05, 2023

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Commissions

Deferred Revenue and Commissions

Deferred Commissions

Changes in total deferred commissions during the periods presented are as follows (in thousands):

	Fiscal Year Ended
	2022		2023
Beginning balance	$	187,924	$	246,307
Additions	217,595		155,414
Recognition of deferred commissions	(159,212)		(155,865)
Ending balance	$	246,307	$	245,856

During fiscal 2021, 2022 and 2023, we recognized sales commission expenses of $150.2 million, $175.9 million, and $170.0 million, respectively. Of the $245.9 million total deferred commissions balance at the end of fiscal 2023, we expect to recognize approximately 28% as sales commission expense over the next 12 months and the remainder thereafter.

There was no impairment related to capitalized commissions for fiscal 2021, 2022 or 2023.

Deferred Revenue

Changes in total deferred revenue during the periods presented are as follows (in thousands):

	Fiscal Year Ended
	2022		2023
Beginning balance	$	843,697	$	1,079,872
Additions	937,510		1,248,417
Recognition of deferred revenue	(701,335)		(942,639)
Ending balance	$	1,079,872	$	1,385,650

During fiscal 2022 and 2023, we recognized approximately $442.7 million and $567.8 million, respectively, in revenue pertaining to deferred revenue as of the beginning of each period.

Remaining Performance Obligations

Total remaining performance obligations (RPO) which is contracted but not recognized revenue was $1.8 billion at the end of fiscal 2023. RPO consists of both deferred revenue and non-cancelable amounts that are expected to be invoiced and recognized as revenue in future periods. Product orders are generally cancelable until delivery has occurred, and as such unfulfilled product orders are excluded from RPO. Of the $1.8 billion RPO at the end of fiscal 2023, we expect to recognize approximately 47% over the next 12 months, and the remainder thereafter.