Revenue Recognition

6 Months Ended

Jan. 31, 2020

Revenue from Contract with Customer [Abstract]

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.