Note 13 - Revenue

3 Months Ended

Apr. 30, 2023

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

(13)    Revenue

Revenue Components and Performance Obligations

Subscription services

The Company offers subscriptions that provide customers access to a broad-based spectrum of learning options including access to cloud-based learning content and individualized coaching. The Company’s cloud-based subscription solutions normally do not provide customers with the right to take possession of the software supporting the platform or to download course content without continuing to incur fees for hosting services and, as a result, are accounted for as service arrangements. Access to the platform and course content represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the fixed consideration related to subscription revenue is usually recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. The Company’s subscription contracts typically vary from one year to three years. The Company’s cloud-based solutions arrangements are mostly non-cancellable, non-refundable, and are invoiced in advance of the subscription services being provided.

Virtual, on-demand and classroom

The Company’s virtual, on-demand and classroom training provide customers with technical training. Revenue is recognized in the period in which the services are performed. Billing is in advance of the services being provided or immediately after the services have been provided.

Professional services

The Company also sells professional services related to its cloud solutions which are typically considered distinct performance obligations and are recognized over time as services are performed. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided (proportional performance method). These services usually consist of implementation, integration, and general consulting. Mostly, the Company’s professional service engagements are short in duration. Billing is commonly in advance of the services being provided.

Disaggregated Revenue and Geography Information

The following is a summary of revenues by type for the three months ended April 30, 2023 and 2022 (in thousands):

	Three Months		Three Months
	Ended		Ended
	April 30, 2023		April 30, 2022
SaaS and subscription services	$	93,819	$	85,254
Virtual, on-demand and classroom		36,981		45,053
Professional services		4,754		4,531
Total net revenues	$	135,554	$	134,838

	Three Months		Three Months
	Ended		Ended
	April 30, 2023		April 30, 2022
Revenue:
United States	$	89,087	$	83,315
Europe, Middle East and Africa		34,535		38,026
Other Americas		6,996		8,556
Asia-Pacific		4,936		4,941
Total net revenues	$	135,554	$	134,838

Other than the United States, no single country accounted for more than 10% of revenue for all periods presented.

Deferred Revenue

Deferred revenue activity for the three months ended April 30, 2023 was as follows (in thousands):

Deferred revenue at January 31, 2023	$	282,454
Billings deferred		100,328
Recognition of prior deferred revenue		(135,554	)
Deferred revenue at April 30, 2023	$	247,228

Deferred revenue performance obligations relate predominantly to time-based SaaS and subscription services that are billed in advance of services being rendered.

Deferred Contract Acquisition Costs

Deferred contract acquisition cost activity for the three months ended April 30, 2023 was as follows (in thousands):

Deferred contract acquisition costs at January 31, 2023	$	24,594
Contract acquisition costs		5,701
Recognition of contract acquisition costs		(5,459	)
Deferred contract acquisition costs at April 30, 2023	$	24,836