v3.26.1
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
 3 Months Ended
May 02, 2026
Revenue from Contract with Customer [Abstract]  
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations Costs to Obtain and Fulfill a Contract
Deferred Commissions—Total deferred commissions as of May 2, 2026 and January 31, 2026 were $273.4 million and $261.9 million, respectively.
The following table provides the amounts capitalized and amortized for commission costs for the periods presented (in thousands):
Three Months Ended
May 2, 2026May 3, 2025
Capitalized commission costs$34,463$23,695
Amortization expense$22,895$17,250
Connected Devices—Total connected device costs, current and non-current, as of May 2, 2026 and January 31, 2026 were $458.4 million and $440.1 million, respectively. Amounts include deployed long-lived device assets that transfer ownership to the customer at the end of the contract, net of amortization, of $7.7 million and $8.1 million as of May 2, 2026 and January 31, 2026, respectively.
The following table provides the amounts capitalized and amortized for connected device costs for the periods presented (in thousands):
Three Months Ended
May 2, 2026May 3, 2025
Capitalized connected device costs$57,716$38,573
Amortization expense$39,470$32,582
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
Revenue Recognition—Subscription revenue is generated from subscriptions to access the Connected Operations Platform. Subscription agreements contain multiple service elements for one or more of the cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (collectively, “connected devices” or “Internet of Things (“IoT”) devices”), support services that are delivered over the term of the arrangement, and warranty coverage. The Connected Operations Platform and the related connected device access points are highly interdependent and interrelated, and represent a combined performance obligation, which is recognized over the related subscription period.
Other revenue is generally recognized at a point in time and is earned through the sale of replacement gateways, sensors and cameras, as well as related shipping and handling fees, and professional services.
Revenue comprises the following (in thousands):
Three Months Ended
May 2, 2026May 3, 2025
Subscription revenue$470,976$359,604
Other revenue7,8687,280
Total revenue$478,844$366,884
Accounts Receivable—An allowance for credit losses of $14.5 million and $14.1 million was recorded as of May 2, 2026 and January 31, 2026, respectively. During the three months ended May 2, 2026, the Company recorded a charge of $2.7 million to operations and wrote off $2.3 million against the allowance. During the three months ended May 3, 2025, the Company recorded a charge of $1.4 million to operations and recovered $0.2 million against the allowance.
Deferred Revenue—The following table provides the deferred revenue balances for the periods presented (in thousands):
Three Months Ended
May 2, 2026May 3, 2025
Deferred revenue, beginning of period$809,042$685,770
Deferred revenue, end of period$827,777$706,112
Revenue recognized during the three months ended May 2, 2026 and May 3, 2025 that was included in the deferred revenue balance at the beginning of the respective periods was $398.7 million and $338.8 million, respectively.
Remaining Performance Obligations (“RPO”)—RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.
As of May 2, 2026, the RPO was $3,988.5 million, of which the Company expects to recognize revenue of approximately $1,730.5 million over the next 12 months, with the remaining balance to be recognized thereafter.
Concentrations of Significant Customers and Credit Risk—No customer accounted for greater than 10% of total revenue for the three months ended May 2, 2026 and May 3, 2025.
No customer accounted for greater than 10% of total accounts receivable as of May 2, 2026 and January 31, 2026.