Deferred Revenue and Remaining Performance Obligations

9 Months Ended

Oct. 31, 2020

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Remaining Performance Obligations

Deferred Revenue and Remaining Performance Obligations

Revenue recognized for the three months ended October 31, 2020 from amounts included in deferred revenue as of July 31, 2020 was $121.2 million. Revenue recognized for the three months ended October 31, 2019 from amounts included in deferred revenue as of July 31, 2019 was $55.4 million.

Revenue recognized for the nine months ended October 31, 2020 from amounts included in deferred revenue as of January 31, 2020 was $222.0 million. Revenue recognized for the nine months ended October 31, 2019 from amounts included in deferred revenue as of January 31, 2019 was $78.1 million.

Remaining performance obligations (RPO) represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. The Company’s RPO excludes performance obligations from on-demand arrangements as there are no minimum purchase commitments associated with these arrangements, and certain time and materials contracts that are billed in arrears.

As of October 31, 2020, the Company’s RPO was $927.9 million. For contracts with original terms that exceed one year, the Company’s RPO was $560.1 million as of October 31, 2020. The weighted-average remaining life of the Company’s long-term contracts was 2.5 years as of October 31, 2020. However, the amount and timing of revenue recognition are generally driven by customer usage, which can extend beyond the original contract term in cases where customers have the option to roll over unused capacity to future periods, generally on the purchase of additional capacity.