v3.26.1
Revenue Recognition
 6 Months Ended
Jul. 31, 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 and six months ended July 31, 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 July 31,

 

 

Six Months Ended July 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Americas

 

$

120,887

 

 

$

96,770

 

 

$

233,006

 

 

$

184,861

 

Asia Pacific and Japan ("APJ")

 

 

41,842

 

 

 

31,908

 

 

 

78,889

 

 

 

61,625

 

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

 

 

57,812

 

 

 

42,080

 

 

 

110,238

 

 

 

82,008

 

     Total revenue

 

$

220,541

 

 

$

170,758

 

 

$

422,133

 

 

$

328,494

 

 

Revenue from the United States, which was included within the Americas region in the table above, was $95.9 million, $76.4 million, $184.6 million, and $146.7 million during the three months ended July 31, 2026 and 2025, and the six months ended July 31, 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 July 31,

 

 

Six Months Ended July 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Indirect channels

 

$

213,695

 

 

$

162,198

 

 

$

408,567

 

 

$

311,573

 

Direct end customers

 

 

6,846

 

 

 

8,560

 

 

 

13,566

 

 

 

16,921

 

     Total revenue

 

$

220,541

 

 

$

170,758

 

 

$

422,133

 

 

$

328,494

 

 

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 July 31, 2026 and 2025 and the six months ended July 31, 2026 and 2025, that were included in the deferred revenue at the beginning of the period, were $160.2 million, $126.8 million, $347.9 million, and $272.1 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 July 31,

 

 

Six Months Ended July 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Beginning balance

 

$

652,836

 

 

$

585,618

 

 

$

675,858

 

 

$

590,307

 

Additions

 

 

238,380

 

 

 

191,517

 

 

 

416,950

 

 

 

344,564

 

Recognition of deferred revenue

 

 

(220,541

)

 

 

(170,758

)

 

 

(422,133

)

 

 

(328,494

)

Ending balance

 

$

670,675

 

 

$

606,377

 

 

$

670,675

 

 

$

606,377

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Deferred revenue, current

 

 

 

 

 

 

 

$

546,462

 

 

$

453,300

 

Deferred revenue, noncurrent

 

 

 

 

 

 

 

 

124,213

 

 

 

153,077

 

     Total deferred revenue

 

 

 

 

 

 

 

$

670,675

 

 

$

606,377

 

 

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 July 31, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.4 billion. The Company expects to recognize 53% of the remaining performance obligations over the next 12 months and 43% 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 July 31,

 

 

Six Months Ended July 31,

 

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Beginning balance

 

$

156,228

 

 

$

122,844

 

 

$

154,846

 

 

$

121,665

 

Capitalization of contract acquisition costs

 

 

24,804

 

 

 

20,828

 

 

 

41,522

 

 

 

34,320

 

Amortization of deferred contract acquisition costs

 

 

(16,608

)

 

 

(13,034

)

 

 

(31,944

)

 

 

(25,347

)

Ending balance

 

$

164,424

 

 

$

130,638

 

 

$

164,424

 

 

$

130,638

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 31,

 

 

 

 

 

 

 

 

 

2026

 

 

2025

 

Deferred contract acquisition costs, current

 

 

 

 

 

 

 

$

58,387

 

 

 

46,471

 

Deferred contract acquisition costs, noncurrent

 

 

 

 

 

 

 

 

106,037

 

 

 

84,167

 

     Total deferred contract acquisition costs

 

 

 

 

 

 

 

$

164,424

 

 

$

130,638