Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations

3 Months Ended

Apr. 30, 2022

Revenue Recognition and Deferred Revenue [Abstract]

Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations

Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations

Disaggregation of Revenue

Revenue consists of the following (in thousands):

	Three Months Ended April 30,
	2022		2021
Product revenue	$	394,434	$	213,830
Professional services and other revenue	27,937		15,084
Total	$	422,371	$	228,914

Revenue by geographic area, based on the location of the Company’s customers (or end-customers under reseller arrangements), was as follows (in thousands):

	Three Months Ended April 30,
	2022		2021
Americas:
United States	$	335,925	$	186,185
Other Americas(1)	9,126		5,020
EMEA(1)(2)	58,018		30,174
Asia-Pacific and Japan(1)	19,302		7,535
Total	$	422,371	$	228,914

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(1)No individual country in these areas represented more than 10% of the Company’s revenue for all periods presented.

(2)Europe, the Middle East and Africa

Accounts Receivable, Net

As of April 30, 2022 and January 31, 2022, allowance for credit losses of $0.9 million and $1.3 million, was included in the Company’s accounts receivable, net balance, respectively.

Significant Customers

For purposes of assessing the concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. As of April 30, 2022 and January 31, 2022, there were no customers that represented 10% or more of the Company’s accounts receivable, net balance. Additionally, there were no customers that represented 10% or more of the Company’s revenue for each of the three months ended April 30, 2022 and 2021.

Deferred Revenue

Revenue recognized for the three months ended April 30, 2022 from amounts included in deferred revenue as of January 31, 2022 was $339.1 million. Revenue recognized for the three months ended April 30, 2021 from amounts included in deferred revenue as of January 31, 2021 was $187.0 million.

Remaining Performance Obligations

Remaining performance obligations (RPO) represent the amount of contracted future revenue that has not yet been recognized, including (i) deferred revenue and (ii) 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. Portions of RPO that are not yet invoiced and are denominated in foreign currencies are revalued into USD each period based on the applicable period-end exchange rates.

As of April 30, 2022, the Company’s RPO was $2.6 billion, of which the Company expects approximately 53% to be recognized as revenue in the twelve months ending April 30, 2023 based on historical customer consumption patterns. However, the amount and timing of revenue recognition are generally dependent upon customers’ future consumption, which is inherently variable at customers’ discretion and 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.