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

9 Months Ended

Oct. 31, 2024

Revenue from Contract with Customer [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,
	2024		2023		2024		2023
Product revenue	$	900,282	$	698,478	$	2,519,119	$	1,928,759
Professional services and other revenue	41,812		35,695		120,507		103,031
Total	$	942,094	$	734,173	$	2,639,626	$	2,031,790

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,
	2024		2023		2024		2023
Americas:
United States	$	719,325	$	569,743	$	2,014,996	$	1,569,099
Other Americas(1)	26,269		18,083		72,781		52,781
EMEA(1)(2)	147,205		110,412		416,734		311,586
Asia-Pacific and Japan(1)	49,295		35,935		135,115		98,324
Total	$	942,094	$	734,173	$	2,639,626	$	2,031,790

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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, 2024 and January 31, 2024, allowance for credit losses of $2.8 million and $2.5 million, respectively, was included in the Company’s accounts receivable, net balance.

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, 2024 and January 31, 2024, 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, 2024 and 2023.

Deferred Revenue

The Company recognized $678.5 million and $556.1 million of revenue for the three months ended October 31, 2024 and 2023, respectively, from the deferred revenue balances as of July 31, 2024 and 2023, respectively.

The Company recognized $1.6 billion and $1.2 billion of revenue for the nine months ended October 31, 2024 and 2023, respectively, from the deferred revenue balances as of January 31, 2024 and 2023, respectively.

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, 2024, the Company’s RPO was $5.7 billion, of which the Company expects approximately 50% to be recognized as revenue in the twelve months ending October 31, 2025 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.