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Deferred Contract Acquisition and Fulfillment Costs | 9 Months Ended
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Oct. 31, 2023
Revenue from Contract with Customer [Abstract] |
Deferred Contract Acquisition and Fulfillment Costs | Revenue Subscription revenue is recognized over time and accounted for approximately 97% of our revenue in each of the three and nine month periods ended October 31, 2023 and 2022. Performance Obligations As of October 31, 2023, the amount of the transaction price allocated to remaining performance obligations for contracts greater than one year was $2.0 billion. Beginning in the third quarter of fiscal 2024, we are including two immaterial international subsidiaries to our remaining performance obligations disclosure. We expect to recognize 58% of the transaction price allocated to remaining performance obligations within the 12 months following October 31, 2023 in our condensed consolidated statement of operations and comprehensive income (loss). Contract Balances Contract assets represent amounts for which we have recognized revenue, pursuant to our revenue recognition policy, for contracts that have not yet been invoiced to our customers where there is a remaining performance obligation, typically for multi-year arrangements. Total contract assets were $19.4 million and $12.4 million as of October 31, 2023 and January 31, 2023. The change in contract assets reflects the difference in timing between our satisfaction of remaining performance obligations and our contractual right to bill our customers. Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are generally recognized as revenue over the contractual period. For the nine months ended October 31, 2023 and 2022 we recognized revenue of $1.1 billion and $951.2 million that was included in the corresponding contract liability balance at the beginning of the periods presented. We receive payments from customers based upon contractual billing schedules. We record accounts receivable when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 days. Geographic Information Revenue by geography is based on the address of the customer as specified in our master subscription agreements with our customers. Revenue by geographic area was as follows:
| Three Months Ended October 31, |  | Nine Months Ended October 31,
(in thousands) | 2023 |  | 2022 |  | 2023 |  | 2022
U.S. | $ | 515,050 |  |  | $ | 488,280 |  |  | $ | 1,516,092 |  |  | $ | 1,401,355 |
International | 185,371 |  |  | 157,183 |  |  | 533,404 |  |  | 454,984 |
Total revenue | $ | 700,421 |  |  | $ | 645,463 |  |  | $ | 2,049,496 |  |  | $ | 1,856,339
Deferred Contract Acquisition and Fulfillment Costs The following table represents a rollforward of our deferred contract acquisition and fulfillment costs:
| Nine Months Ended October 31,
(in thousands) | 2023 |  | 2022
Deferred Contract Acquisition Costs: |  |  |
Beginning balance | $ | 355,389 |  |  | $ | 315,158 |
Additions to deferred contract acquisition costs | 143,321 |  |  | 127,071 |
Amortization of deferred contract acquisition costs | (114,151) |  |  | (99,535) |
Cumulative translation adjustment | (1,212) |  |  | (8,001) |
Ending balance | $ | 383,347 |  |  | $ | 334,693 |
Deferred Contract Fulfillment Costs: |  |  |
Beginning balance | $ | 21,076 |  |  | $ | 19,088 |
Additions to deferred contract fulfillment costs | 33,189 |  |  | 34,548 |
Amortization of deferred contract fulfillment costs | (33,630) |  |  | (34,846) |
Cumulative translation adjustment | (268) |  |  | (1,088) |
Ending balance | $ | 20,367 |  |  | $ | 17,702 |

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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 -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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