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Revenue Recognition | 6 Months Ended
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Jan. 31, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Disaggregation of Revenue Subscription and support revenue is recognized over time and accounted for approximately 98% and 97% of our revenue for the three months ended January 31, 2020 and 2019, respectively, and approximately 98% of our revenue for the six months ended January 31, 2020 and 2019. The following table summarizes the revenue by region based on the shipping address of customers who have contracted to use our cloud platform:
| Three Months Ended January 31, |  |  |  |  |  |  |  |  | Six Months Ended January 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2020 |  |  |  | 2019 |  |  |  |  | 2020 |  |  |  | 2019 |  |  |  |  |  |  |  |  |  |
| Amount |  | % Revenue |  | Amount |  | % Revenue |  |  | Amount |  | % Revenue |  | Amount |  | % Revenue |  |  |  |  |  |  |  |
| (in thousands, except per percentage data) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States | $ | 49,629 |  |  | 49 | % |  | $ | 37,626 |  |  | 51 | % |  |  | $ | 95,574 |  |  | 49 | % |  | $ | 67,433 |  |  | 49 | % |  |  |  |  |  |  |  |
Europe, Middle East and Africa (*) | 41,002 |  |  | 40 | % |  | 29,552 |  |  | 40 | % |  |  | 79,291 |  |  | 41 | % |  | 56,946 |  |  | 41 | % |  |  |  |  |  |  |  |
Asia Pacific | 8,828 |  |  | 9 | % |  | 5,674 |  |  | 7 | % |  |  | 16,647 |  |  | 8 | % |  | 10,463 |  |  | 8 | % |  |  |  |  |  |  |  |
Other | 1,809 |  |  | 2 | % |  | 1,450 |  |  | 2 | % |  |  | 3,346 |  |  | 2 | % |  | 2,758 |  |  | 2 | % |  |  |  |  |  |  |  |
Total | $ | 101,268 |  |  | 100 | % |  | $ | 74,302 |  |  | 100 | % |  |  | $ | 194,858 |  |  | 100 | % |  | $ | 137,600 |  |  | 100 | % |  |  |  |  |  |  |  |
(*) Revenue from the United Kingdom ("U.K.") represented 10% of our revenue for the three months ended January 31, 2020 and 2019, and 11% and 10% of our revenue for the six months ended January 31, 2020 and 2019, respectively. The following table summarizes the revenue from contracts by type of customer:
| Three Months Ended January 31, |  |  |  |  |  |  |  | Six Months Ended January 31, |  |  |  |  |  |
| 2020 |  |  |  | 2019 |  |  |  | 2020 |  |  |  | 2019 |  |
| Amount |  | % Revenue |  | Amount |  | % Revenue |  | Amount |  | % Revenue |  | Amount |  | % Revenue
| (in thousands, except per percentage data) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Channel partners | $ | 98,132 |  |  | 97 | % |  | $ | 71,074 |  |  | 96 | % |  | $ | 188,375 |  |  | 97 | % |  | $ | 131,093 |  |  | 95 | %
Direct customers | 3,136 |  |  | 3 | % |  | 3,228 |  |  | 4 | % |  | 6,483 |  |  | 3 | % |  | 6,507 |  |  | 5 | %
Total | $ | 101,268 |  |  | 100 | % |  | $ | 74,302 |  |  | 100 | % |  | $ | 194,858 |  |  | 100 | % |  | $ | 137,600 |  |  | 100 | %
Significant Customers No single customer accounted for 10% or more of our revenue for the three and six months ended January 31, 2020 and 2019. The following table summarizes 10% or more of the total balance of accounts receivable, net:
| January 31, 2020 |  | July 31, 2019
Channel partner A | 16% |  |  | 11% |
Channel partner B | 12% |  |  | * |
Channel partner C | 10% |  |  | 10% |
Channel partner D | * |  |  | 12% |
(*) Represents less than 10%. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. For the six months ended January 31, 2020 and 2019, we recognized revenue of $148.4 million and $68.2 million, respectively, that was included in the corresponding contract liability balance at the beginning of these periods. Remaining Performance Obligations The typical subscription and support term is one to three years. Most of our subscription and support contracts are non-cancelable over the contractual term. However, customers typically have the right to terminate their contracts for cause, if we fail to perform. As of January 31, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $608.5 million. We expect to recognize 56% of the transaction price over the next 12 months and 98% of the transaction price over the next three years, with the remainder recognized thereafter. Costs to Obtain and Fulfill a Contract We capitalize sales commission and associated payroll taxes paid to internal sales personnel that are incremental to the acquisition of channel partner and direct customer contracts. These costs are recorded as deferred contract acquisition costs in the condensed consolidated balance sheets. The following table summarizes the activity of the deferred contract acquisition costs:
| Three Months Ended January 31, |  |  |  | Six Months Ended January 31, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
| (in thousands) |  |  |  |  |  |
Beginning balance | $ | 70,426 |  |  | $ | 55,978 |  |  | $ | 69,785 |  |  | $ | 55,910 |
Capitalization of contract acquisition costs | 9,514 |  |  | 9,080 |  |  | 15,690 |  |  | 13,472 |
Amortization of deferred contract acquisition costs | (5,890) |  |  | (4,457) |  |  | (11,425) |  |  | (8,781) |
Ending balance | $ | 74,050 |  |  | $ | 60,601 |  |  | $ | 74,050 |  |  | $ | 60,601 |
Deferred contract acquisition costs, current | $ | 23,527 |  |  | $ | 18,058 |  |  | $ | 23,527 |  |  | $ | 18,058 |
Deferred contract acquisition costs, noncurrent | 50,523 |  |  | 42,543 |  |  | 50,523 |  |  | 42,543 |
Total deferred contract acquisition costs | $ | 74,050 |  |  | $ | 60,601 |  |  | $ | 74,050 |  |  | $ | 60,601 |
Sales commissions accrued but not paid as of January 31, 2020 and July 31, 2019, totaled $5.7 million and $9.0 million, respectively, which are included within accrued compensation in the condensed consolidated balance sheets.

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- References No definition available. + Details
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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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