Revenue and Performance Obligations

6 Months Ended

Jul. 31, 2022

Disaggregation of Revenue [Abstract]

Revenue and Performance Obligations

3. Revenue and Performance Obligations

Disaggregation of Revenue

The following table presents revenue by category (dollars in thousands):

	Three Months Ended July 31,										Six Months Ended July 31,
	2022					2021					2022					2021
	Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue
License	$	15,338		13	%	$	11,798		16	%	$	25,682		12	%	$	21,958		15	%
Support		84,257		75			58,158		77			163,465		76			110,888		79
Cloud-hosted services		10,637		9			3,762		5			19,469		9			6,342		4
Total subscription revenue		110,232		97			73,718		98			208,616		97			139,188		98
Professional services and other		3,631		3			1,395		2			6,144		3			2,837		2
Total revenue	$	113,863		100	%	$	75,113		100	%	$	214,760		100	%	$	142,025		100	%

The following table summarizes the revenue by region based on the billing address of customers who have contracted to use the Company's products and services (dollars in thousands):

	Three Months Ended July 31,										Six Months Ended July 31,
	2022					2021					2022					2021
	Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue			Amount		% of Total Revenue
United States	$	83,402		73	%	$	53,148		71	%	$	156,192		73	%	$	102,810		72	%
Rest of the world		30,461		27			21,965		29			58,568		27			39,215		28
Total	$	113,863		100	%	$	75,113		100	%	$	214,760		100	%	$	142,025		100	%

No other country, outside of the United States, exceeded 10% of total revenue during the periods presented.

Contract Balances

Changes in deferred revenue and unbilled accounts receivable were as follows (in thousands):

	Three Months Ended July 31,						Six Months Ended July 31,
	2022			2021			2022			2021
Balance, beginning of period	$	219,928		$	138,992		$	223,289		$	147,297
Deferred revenue billings including reclassification to deferred revenue from customer deposits		121,434			82,456			219,528			140,120
Recognition of revenue, net of change in unbilled accounts receivable*		(114,550	)		(75,343	)		(216,005	)		(141,312	)
Balance, end of period	$	226,812		$	146,105		$	226,812		$	146,105
* Reconciliation to revenue reported per consolidated statements of operations:
Revenue billed as of the end of the period	$	114,550		$	75,343		$	216,005		$	141,312
Increase (decrease) in total unbilled accounts receivable		(687	)		(230	)		(1,245	)		713
Revenue reported per consolidated statements of operations	$	113,863		$	75,113		$	214,760		$	142,025

Unbilled accounts receivable represents revenue recognized on contracts for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date. The unbilled accounts receivable balance is due within one year. As of July 31, 2022 and January 31, 2022, unbilled accounts receivable of approximately $1.6 million and $2.9 million, respectively, was included in accounts receivable on the Company’s condensed consolidated balance sheets.

Remaining Performance Obligations (RPOs)

The typical stated customer contract term is one year but can range up to three years. RPOs include both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods. As of July 31, 2022 and January 31, 2022, the Company had $476.0 million and $428.8 million, respectively, of remaining performance obligations, which is comprised of product and services revenue not yet delivered. As of July 31, 2022 and January 31, 2022, the Company expected to recognize approximately 64% and 63%, respectively, of its remaining performance obligations as revenue over the next 12 months and the remainder thereafter.

RPOs exclude customer deposits, which are refundable pre-paid amounts that are expected to be recognized as revenue in future periods. These balances are included in customer deposits in the condensed consolidated balance sheets and are classified as current because contractually customers can cancel these obligations with 30 days written notice. The customer deposit balance is amortized to revenue over the term of the underlying contract as the customer’s right to cancel expires. If no contracts with customers are cancelled, the existing customer deposit balance will be recognized to revenue over the remaining stated term of the underlying contract which may be over the next 12 months or longer as follows (in thousands):

	As of
	July 31, 2022		January 31, 2022
Within the next 12 months	$	20,054	$	20,324
After the next 12 months		2,294		3,059
Total	$	22,348	$	23,383