Deferred Revenue and Remaining Performance Obligations

12 Months Ended

Jan. 31, 2021

Revenue from Contract with Customer [Abstract]

Deferred Revenue and Remaining Performance Obligations

Deferred Revenue and Remaining Performance Obligations

The Company recognized $257.9 million, $89.1 million, and $24.4 million of revenue for the fiscal years ended January 31, 2021, 2020, and 2019, respectively, from the deferred revenue balances as of January 31, 2020, 2019, and 2018, respectively.

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 January 31, 2021, the Company’s RPO was $1.3 billion. For contracts with original terms that exceed one year, the Company’s RPO was $865.6 million as of January 31, 2021. The weighted-average remaining life of the Company’s contracts with terms that exceed one year was 2.5 years as of January 31, 2021. However, the amount and timing of revenue recognition are generally driven by customers’ consumption, which can extend beyond the original contract term in cases where customers are permitted to roll over unused capacity to future periods, generally on the purchase of additional capacity at renewal.