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

9 Months Ended

Oct. 31, 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 October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
Product revenue	$	522,752	$	312,458	$	1,383,454	$	780,911
Professional services and other revenue	34,276		21,983		93,193		54,642
Total	$	557,028	$	334,441	$	1,476,647	$	835,553

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 October 31,				Nine Months Ended October 31,
	2022		2021		2022		2021
Americas:
United States	$	441,432	$	265,605	$	1,171,641	$	669,172
Other Americas(1)	11,637		7,703		31,316		18,860
EMEA(1)(2)	79,326		47,671		207,010		117,149
Asia-Pacific and Japan(1)	24,633		13,462		66,680		30,372
Total	$	557,028	$	334,441	$	1,476,647	$	835,553

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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)Includes Europe, the Middle East, and Africa.

Accounts Receivable, Net

As of October 31, 2022 and January 31, 2022, allowance for credit losses of $2.2 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 October 31, 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 and nine months ended October 31, 2022 and 2021.

Deferred Revenue

Revenue recognized for the three months ended October 31, 2022 from amounts included in deferred revenue as of July 31, 2022 was $427.4 million. Revenue recognized for the three months ended October 31, 2021 from amounts included in deferred revenue as of July 31, 2021 was $255.0 million.

Revenue recognized for the nine months ended October 31, 2022 from amounts included in deferred revenue as of January 31, 2022 was $841.8 million. Revenue recognized for the nine months ended October 31, 2021 from amounts included in deferred revenue as of January 31, 2021 was $464.0 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 U.S. dollars each period based on the applicable period-end exchange rates.

As of October 31, 2022, the Company’s RPO was $3.0 billion, of which the Company expects approximately 55% to be recognized as revenue in the twelve months ending October 31, 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.