Revenue and Contract Balances

12 Months Ended

Jan. 31, 2024

Revenue from Contract with Customer [Abstract]

Revenue and Contract Balances

REVENUE AND CONTRACT BALANCES

Disaggregation of Revenue

The following table summarizes revenue by geography based on the shipping address of end customers who have contracted to use our platform for the periods presented (in thousands, except percentages):

	Year Ended January 31,
	2024				2023				2022
	Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
US	$	397,885	64	%	$	276,443	65	%	$	140,034	68	%
International	223,269		36		145,736		35		64,765		32
Total	$	621,154	100	%	$	422,179	100	%	$	204,799	100	%

No single country other than the US represented 10% or more of our revenue during fiscal 2024, 2023 and 2022.

Substantially all of our sales are fulfilled through channel partners, including distributors, resellers, managed security service providers, and others.

Contract Balances

Contract assets consist of unbilled accounts receivable, which arise when a right to consideration for our performance under the customer contract occurs before invoicing the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the consolidated balance sheets was $3.8 million and $1.5 million as of January 31, 2024 and 2023, respectively.

Contract liabilities consist of deferred revenue, which represents invoices billed in advance of performance under a contract. Deferred revenue is recognized as revenue over the contractual period. The deferred revenue balance was $514.5 million and $406.3 million as of January 31, 2024 and 2023, respectively. We recognized revenue of $305.7 million, $195.9 million and $95.5 million for fiscal 2024, 2023 and 2022, respectively, that was included in the corresponding contract liability balance at the beginning of the period.

Remaining Performance Obligations

Our contracts with customers typically range from one to three years. Revenue allocated to remaining performance obligations represents non-cancelable contract revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced in future periods.

For consumption and usage-based agreements with non-cancelable commitments, remaining performance obligations are determined based on the ratable recognition of the remaining commitment over the remaining contract term. The amount and timing of revenue recognition are generally dependent on customers’ future consumption, which is inherently variable at the customers’ discretion.

As of January 31, 2024, our remaining performance obligations were $896.2 million, of which we expect to recognize 87% as revenue over the next 24 months, with the remainder to be recognized thereafter.

Capitalized contract costs were $125.8 million and $93.4 million as of January 31, 2024 and 2023, respectively. Amortization expense of contract costs was $48.7 million, $36.4 million, and $21.7 million for fiscal 2024, 2023 and 2022, respectively. We periodically review deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. We did not recognize any impairment of deferred contract acquisition costs during fiscal 2024, 2023 and 2022.