v3.25.1
Deferred Contract Acquisition and Fulfillment Costs
 3 Months Ended
Apr. 30, 2025
Revenue from Contract with Customer [Abstract]  
Deferred Contract Acquisition and Fulfillment Costs Revenue
Subscription revenue is recognized over time and accounted for approximately 98% of our revenue in the three months ended April 30, 2025, and 97% of our revenue in the three months ended April 30, 2024.

Performance Obligations

As of April 30, 2025, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.3 billion. We expect to recognize 57% of the transaction price allocated to remaining performance obligations within the 12 months following April 30, 2025 in our condensed consolidated statement of operations and comprehensive income.

Contract Balances

Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $9.6 million and $13.8 million as of April 30, 2025 and January 31, 2025. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers.

Contract liabilities consist of deferred revenue and payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the three months ended April 30, 2025 and 2024, we recognized revenue of $610.3 million and $563.3 million that was included in the corresponding contract liability balance at the beginning of the periods presented.

We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days.
Deferred Contract Acquisition and Fulfillment Costs
The following table represents a rollforward of our deferred contract acquisition and fulfillment costs:
Three Months Ended April 30,
(in thousands)20252024
Deferred Contract Acquisition Costs:
Beginning balance$467,201 $409,658 
Additions to deferred contract acquisition costs45,607 52,088 
Amortization of deferred contract acquisition costs(56,009)(44,400)
Cumulative translation adjustment5,170 (1,603)
Ending balance$461,969 $415,743 
Deferred Contract Fulfillment Costs:
Beginning balance$23,657 $22,525 
Additions to deferred contract fulfillment costs11,041 10,984 
Amortization of deferred contract fulfillment costs(10,473)(9,812)
Cumulative translation adjustment1,327 (150)
Ending balance$25,552 $23,547