XML 24 R13.htm IDEA: XBRL DOCUMENT v3.25.3
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
 9 Months Ended
Nov. 01, 2025
Revenue from Contract with Customer [Abstract]  
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations Costs to Obtain and Fulfill a Contract
Deferred Commissions—Total deferred commissions as of November 1, 2025 and February 1, 2025 were $239.0 million and $209.3 million, respectively.
The following table provides the amounts capitalized and amortized for commission costs for the periods presented (in thousands):
Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Capitalized commission costs$32,284 $22,326 $84,795 $60,015 
Amortization expense$19,500 $14,757 $55,137 $41,564 
Connected Devices—Total connected device costs, current and non-current, as of November 1, 2025 and February 1, 2025 were $393.6 million and $362.3 million, respectively.
The following table provides the amounts capitalized and amortized for connected device costs for the periods presented (in thousands):
Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Capitalized connected device costs$54,269 $34,072 $133,324 $101,441 
Amortization expense$35,267 $29,831 $101,990 $86,313 
Revenue, Accounts Receivable, Deferred Revenue, and Remaining Performance Obligations
Revenue Recognition—Subscription revenue is generated from subscriptions to access the Company’s Connected Operations Platform. 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 “Internet of Things (“IoT”) devices”), support services delivered over the term of the arrangement, and warranty coverage. The Company’s Connected Operations Platform 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 IoT devices, shipping and handling fees, and professional services.
Revenue consists of the following (in thousands):
Three Months EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Subscription revenue$408,121 $316,157 $1,151,615 $887,675 
Other revenue7,854 5,824 22,724 15,234 
Total revenue$415,975 $321,981 $1,174,339 $902,909 
Accounts Receivable—An allowance for credit losses balance of $11.9 million and $9.1 million was recorded as of November 1, 2025 and February 1, 2025, respectively. During the three and nine months ended November 1, 2025, the Company recorded a charge of $4.0 million and $7.0 million, respectively, to operations and wrote off $2.1 million and $4.2 million, respectively, against the allowance. During the three and nine months ended November 2, 2024, the Company recorded a charge of $3.1 million and $6.3 million, respectively, to operations and wrote off $2.1 million and $5.5 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 EndedNine Months Ended
November 1, 2025November 2, 2024November 1, 2025November 2, 2024
Deferred revenue, beginning of period$740,512 $622,722 $685,770 $565,486 
Deferred revenue, end of period$754,708 $639,722 $754,708 $639,722 
Revenue recognized in the period from beginning deferred revenue balance$363,477 $291,778 $515,309 $387,654 
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 November 1, 2025, the Company’s RPO was $3,378.2 million, of which the Company expects to recognize revenue of approximately $1,499.4 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 nine months ended November 1, 2025 and November 2, 2024.
There were no customers that individually represented greater than 10% of the Company’s accounts receivable as of November 1, 2025 and February 1, 2025.