Contract Balances, Performance Obligations and Contract Costs |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract Balances, Performance Obligations and Contract Costs | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Contract Balances, Performance Obligations and Contract Costs | Note 19 – Contract Balances, Performance Obligations and Contract Costs Deferred Revenue The following table presents the changes in the deferred revenue balance as follows:
Performance Obligations As of July 31, 2026, approximately $729.6 million of revenue is expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. We expect to recognize revenue on approximately 80% of these remaining performance obligations over the next 24 months with the balance recognized thereafter. Contract Assets The following table presents the changes in the contract assets balance as follows:
Contract Costs Capitalized contract costs net of accumulated amortization is $23.1 million at July 31, 2026 ($22.8 million at January 31, 2026). Capitalized contract costs are amortized consistent with the pattern of transfer to the customer for the goods and services to which the asset relates. For the three and six month periods ended July 31, 2026, the amount of amortization included in sales and marketing expenses was $2.2 million and $4.4 million, respectively, and $2.1 million and $4.1 million for the same periods in fiscal 2026, respectively. For both the three and six month periods ended July 31, 2026 and July 31, 2025, there was no impairment loss in relation to the capitalized contract costs. |