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Costs to Obtain and Fulfill a Contract
 6 Months Ended
Aug. 03, 2024
Revenue from Contract with Customer [Abstract]  
Costs to Obtain and Fulfill a Contract Costs to Obtain and Fulfill a Contract
Deferred Commissions—Total deferred commissions as of August 3, 2024 and February 3, 2024 were $188.4 million and $177.6 million, respectively.
The following table provides the amounts capitalized and amortized for the Company’s commission costs for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 3, 2024July 29, 2023August 3, 2024July 29, 2023
Capitalized commission costs$19,641 $22,502 $37,689 $39,489 
Amortization expense$13,876 $12,942 $26,807 $26,411 
Connected Devices—Total connected device costs, which the Company also refers to as IoT device costs, current and non-current, as of August 3, 2024 and February 3, 2024 were $345.7 million and $334.8 million, respectively.
The following table provides the amounts capitalized and amortized for the Company’s connected device costs for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 3, 2024July 29, 2023August 3, 2024July 29, 2023
Capitalized connected device costs$33,655 $40,655 $67,369 $71,230 
Amortization expense$28,827 $22,698 $56,482 $43,567 
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
Revenue Recognition—Subscription revenue is generated from subscriptions to access the Company’s Connected Operations Cloud. Subscription agreements contain multiple service elements for one or more of the Company’s cloud-based Applications via mobile app(s) or a website that enable data collection and provide access to the cellular network, generally one or more wireless gateways, cameras, sensors and other devices (collectively, “connected devices” or “IoT devices”), support services delivered over the term of the arrangement and warranty coverage. The Company’s Connected Operations Cloud and the related connected device access points are highly interdependent and interrelated, and represent a combined performance obligation, which is recognized over the related subscription period.
Other revenue is generally recognized at a point in time and is earned through the sale of replacement gateways, sensors and cameras, as well as related shipping and handling fees, credit card processing fees, and professional services.
Revenue consists of the following (in thousands):
Three Months EndedSix Months Ended
August 3, 2024July 29, 2023August 3, 2024July 29, 2023
Subscription revenue$295,324 $215,179 $571,518 $414,663 
Other revenue4,878 4,078 9,410 8,914 
Total revenue$300,202 $219,257 $580,928 $423,577 
Accounts Receivable—An allowance for credit losses balance of $7.6 million and $7.8 million was recorded as of August 3, 2024 and February 3, 2024, respectively. During the three and six months ended August 3, 2024, the Company recorded a charge of $1.0 million and $3.2 million, respectively, to operations and wrote off $1.7 million and $3.4 million, respectively, against the allowance. During the three and six months ended July 29, 2023, the Company recorded a charge of $1.2 million and $0.7 million, respectively, to operations and wrote off $1.0 million and $2.0 million, respectively, against the allowance.
Deferred Revenue—The following table provides the deferred revenue balances and revenue recognized from beginning deferred revenue balances for the periods presented (in thousands):
Three Months EndedSix Months Ended
August 3, 2024July 29, 2023August 3, 2024July 29, 2023
Deferred revenue, beginning of period$588,017 $449,943 $565,486 $426,565 
Deferred revenue, end of period$622,722 $477,037 $622,722 $477,037 
Revenue recognized in the period from beginning deferred revenue balance$270,053 $195,160 $331,754 $232,793 
Remaining Performance Obligations (“RPO”)—RPO represents the amount of contracted future revenue that has not yet been recognized, including both deferred revenue and non-cancelable contracted amounts that will be invoiced and recognized as revenue in future periods.
As of August 3, 2024, the Company’s RPO was $2,293.1 million, of which the Company expects to recognize revenue of approximately $1,088.2 million over the next 12 months, with the remaining balance to be recognized thereafter.
Concentrations of Significant Customers and Credit Risk—No customer accounted for greater than 10% of the Company’s total revenue for the three and six months ended August 3, 2024 and July 29, 2023.
There were no customers that individually represented greater than 10% of the Company’s accounts receivable as of August 3, 2024 and February 3, 2024.