Revenue Recognition |
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| Revenue Recognition | 3. Revenue Recognition Remaining Performance Obligations The transaction price allocated to remaining performance obligations represents the contracted transaction price that has not yet been recognized as revenue, which includes deferred revenue and amounts under non-cancellable contracts greater than one year that will be recognized as revenue in future periods. In nearly all cases, the Company’s subscription agreements (monthly, annual, or multi-year) renew automatically unless cancelled in advance, and the majority of auto-renewing contracts renew for one-year terms rather than multi-year commitments. As of July 31, 2025, the aggregate amount of the transaction price allocated to remaining performance obligations was $404.1 million, of which the Company expects to recognize approximately 53% as revenue in the next 12 months and substantially all of the remainder by July 31, 2028. Remaining performance obligations exclude marketing automation usage-based fees, and payment and financing solution fees for which the Company applies the “right to invoice” practical expedient. Disaggregated Revenue and Revenue by Geography Disaggregated revenue were as follows (in thousands):
Substantially all of the Company’s revenue is concentrated in the United States. Revenue from customers outside of the United States, based on the billing address of the customer, comprised less than 5% of total revenue for each of the three and six months ended July 31, 2025 and 2024. Deferred Revenue The Company recognized revenue of $14.5 million and $12.0 million for the three months ended July 31, 2025 and 2024, respectively, which was included in deferred revenue balances at the beginning of the respective periods. The Company recognized revenue of $15.5 million and $10.3 million for the six months ended July 31, 2025 and 2024, respectively, which was included in deferred revenue balances at the beginning of the respective periods. Substantially all of the $17.3 million of deferred revenue as of July 31, 2025 is expected to be fully recognized in the next 12 months. Deferred Contract Costs During the three months ended July 31, 2025 and 2024, the Company capitalized $4.4 million and $3.6 million of deferred contract costs, respectively. During the six months ended July 31, 2025 and 2024, the Company capitalized $10.2 million and $5.7 million of deferred contract costs, respectively. Amortization expense for the deferred contract costs included in sales and marketing expense in the unaudited condensed consolidated statements of operations was $3.6 million and $2.8 million for the three months ended July 31, 2025 and 2024, respectively, and $6.9 million and $5.4 million for the six months ended July 31, 2025 and 2024, respectively. |
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