Revenue Recognition |
3 Months Ended |
|---|---|
Apr. 30, 2026 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue Recognition | Revenue Recognition The Company generates revenues primarily from (i) subscription fees, which consist primarily of fees for accessing its proprietary Unified-CXM platform and related stand-ready services; and (ii) professional services fees, which include fixed-fee arrangements for implementation and managed services associated with the Unified-CXM Platform. For managed services, the Company’s consultants work alongside customers’ teams to support their CXM goals and include platform configuration, ongoing education, and ad-hoc support.
Costs to Obtain Customer Contracts
Capitalized costs to obtain customer contracts as of April 30, 2026 were $183.8 million, with $66.8 million classified as current (included in prepaid expenses and other current assets) and $117.0 million classified as non-current (included in other non-current assets). As of January 31, 2026, capitalized costs were $173.0 million, with $63.1 million classified as current and $109.9 million classified as non-current.
During the three months ended April 30, 2026 and 2025, the Company amortized costs to obtain customer contracts of $18.0 million and $12.0 million, respectively.
Deferred Revenue
Deferred revenue consists primarily of customer billings made in advance of the related performance obligations being satisfied. The Company recognized revenue of $141.5 million for the three months ended April 30, 2026 that was included in the deferred revenue balance at the beginning of the period.
The Company receives payments from customers based on contractually established billing schedules. Contract assets represent revenue recognized in excess of amounts billed. As of April 30, 2026 and January 31, 2026, contract assets were $9.1 million and $10.6 million, respectively, and were included in prepaid expenses and other current assets.
Remaining Performance Obligation
Remaining performance obligation (“RPO”) represents contracted revenue that has not yet been recognized and includes both deferred revenues and amounts that will be invoiced and recognized in future periods. As of April 30, 2026, the Company’s RPO was $1,038.3 million, of which $627.1 million is expected to be recognized as revenue over the next 12 months, with the remaining balance to be recognized thereafter. As of January 31, 2026, RPO was $986.5 million, of which $618.8 million was expected to be recognized as revenue over the next 12 months.
Disaggregation of Revenues
The Company disaggregates revenue by geographic region, as it believes that this presentation best reflects how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. Refer to Note 14, Segment and Geographic Information, for revenue by geographic location.
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