v3.26.1
Revenue Recognition
 3 Months Ended
Apr. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 4 - Revenue Recognition

Disaggregation of Revenue

Subscription revenue is recognized over time and accounted for 99% of the Company's total revenue for the three months ended April 30, 2026 and 2025, respectively.

The following table summarizes the disaggregation of revenue by geographic area, based on the shipping address of the end customer for contracts through channel partners and direct customers (in thousands):

 

 

Three Months Ended April 30,

 

 

2026

 

 

2025

 

Americas

 

$

112,120

 

 

$

88,090

 

Asia Pacific and Japan ("APJ")

 

 

37,046

 

 

 

29,717

 

Europe, the Middle East, and Africa ("EMEA")

 

 

52,426

 

 

 

39,929

 

     Total revenue

 

$

201,592

 

 

$

157,736

 

 

Revenue from the United States, which was included within the Americas region in the table above, was $88.7 million and $70.3 million during the three months ended April 30, 2026 and 2025, respectively.

The following table summarizes revenue from contracts through indirect channels, including channel partners and managed service providers, and direct end customers for the periods presented (in thousands):

 

 

Three Months Ended April 30,

 

 

2026

 

 

2025

 

Indirect channels

 

$

194,872

 

 

$

149,375

 

Direct end customers

 

 

6,720

 

 

 

8,361

 

     Total revenue

 

$

201,592

 

 

$

157,736

 

 

Deferred Revenue

Deferred revenue consists primarily of payments received and accounts receivable recorded in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The amounts of revenue recognized during the three months ended April 30, 2026 and 2025 that were included in the deferred revenue at the beginning of the period, were $187.7 million and $145.4 million, respectively.

Payments are received from customers based upon contractual billing schedules and accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the Company's contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced and such amounts have historically not been material.

The following table summarizes the activity of deferred revenue (in thousands):

 

 

 

Three Months Ended April 30,

 

 

2026

 

 

2025

 

Beginning balance

 

$

675,858

 

 

$

590,307

 

Additions

 

 

178,570

 

 

 

153,047

 

Recognition of deferred revenue

 

 

(201,592

)

 

 

(157,736

)

Ending balance

 

$

652,836

 

 

$

585,618

 

 

 

 

 

 

 

 

Deferred revenue, current

 

$

520,602

 

 

$

430,691

 

Deferred revenue, noncurrent

 

 

132,234

 

 

 

154,927

 

     Total deferred revenue

 

$

652,836

 

 

$

585,618

 

 

 

Remaining Performance Obligations

Remaining performance obligations represent the amount of contracted future revenue that has not yet been recognized, including both deferred revenue that has been invoiced and non-cancelable committed amounts that will be invoiced and recognized as revenue in future periods.

 

As of April 30, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.2 billion. The Company expects to recognize 54% of the remaining performance obligations over the next 12 months and 42% between 13 and 36 months, with the remainder to be recognized thereafter.

Deferred Contract Acquisition Costs

The following table summarizes the activity of deferred contract acquisition costs (in thousands):

 

 

 

Three Months Ended April 30,

 

 

2026

 

 

2025

 

Beginning balance

 

$

154,846

 

 

$

121,665

 

Capitalization of contract acquisition costs

 

 

16,718

 

 

 

13,492

 

Amortization of deferred contract acquisition costs

 

 

(15,336

)

 

 

(12,313

)

Ending balance

 

$

156,228

 

 

$

122,844

 

 

 

 

 

 

 

 

Deferred contract acquisition costs, current

 

$

55,089

 

 

 

43,880

 

Deferred contract acquisition costs, noncurrent

 

 

101,139

 

 

 

78,964

 

     Total deferred contract acquisition costs

 

$

156,228

 

 

$

122,844