Deferred Commissions

9 Months Ended

Oct. 31, 2020

Revenue from Contract with Customer [Abstract]

Deferred Commissions

Deferred CommissionsSales commissions capitalized as contract costs totaled $21.5 million and $15.3 million in the three months ended October 31, 2020 and 2019, respectively, and $51.8 million and $36.7 million in the nine months ended October 31, 2020 and 2019, respectively. Amortization of contract costs was $10.3 million and $7.3 million for the three months ended October 31, 2020 and 2019, respectively, and $28.4 million and $20.5 million for the nine months ended October 31, 2020 and 2019, respectively. There was no impairment loss in relation to the costs capitalized.Deferred Revenue and Performance Obligations

Deferred Revenue

Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.

Subscription revenue recognized during the three months ended October 31, 2020 and 2019 that was included in the deferred revenue balances at the beginning of the respective periods was $174.0 million and $123.5 million, respectively, and $334.2 million and $224.0 million in the nine months ended October 31, 2020 and 2019, respectively. Professional services and other revenue recognized in the three and nine months ended October 31, 2020 and 2019 from deferred revenue balances at the beginning of the respective periods was not material.

Transaction Price Allocated to the Remaining Performance Obligations

Transaction price allocated to the remaining performance obligations represents all future, noncancelable contracted revenue that has not yet been recognized, inclusive of deferred revenue that has been invoiced and noncancelable amounts that will be invoiced and recognized as revenue in future periods.

As of October 31, 2020, total remaining noncancelable performance obligations under the Company’s subscription contracts with customers was approximately $1,581.8 million. Of this amount, the Company expects to recognize revenue of approximately $753.2 million, or 48%, over the next 12 months, with the balance to be recognized as revenue thereafter. Revenue from remaining performance obligations for professional services and other contracts as of October 31, 2020 was not material.