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Revenue and Deferred Revenue | 6 Months Ended
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Jul. 31, 2020
Revenue From Contract With Customer [Abstract] |
Revenue and Deferred Revenue | Note 2: Revenue and Deferred Revenue The Company’s revenue is presented in accordance with the provisions under Topic 606. The Company derives its revenue from two sources: Subscription and Services Revenue is derived primarily from recurring subscription fees related to service plans such as Ooma Business, Ooma Residential and other communications services. Service plans are generally sold as monthly subscriptions; however, certain plans are also offered as annual or multi-year subscriptions. Subscription revenue is generally recognized ratably over the contractual service term. Product and Other Revenue is generated from the sale of on-premise appliances and end-point devices, including shipping and handling fees for direct customers, and to a lesser extent from porting fees that enable customers to transfer their existing phone numbers. The Company recognizes revenue from sales to direct end-customers and channel partners at the point-in-time that control transfers, which is typically when it delivers the product or when all customer contractual provisions have been met, if any. Revenue disaggregated by revenue source consisted of the following (in thousands):
|  | Three Months Ended |  |  | Six Months Ended |
|  | July 31, 2020 |  |  | July 31, 2019 |  |  | July 31, 2020 |  |  | July 31, 2019 |
Subscription and services revenue |  | $ | 38,500 |  |  | $ | 34,469 |  |  | $ | 76,116 |  |  | $ | 65,581 |
Product and other revenue |  |  | 2,912 |  |  |  | 2,874 |  |  |  | 5,602 |  |  |  | 5,769 |
Total revenue |  | $ | 41,412 |  |  | $ | 37,343 |  |  | $ | 81,718 |  |  | $ | 71,350 |
The Company derived approximately 55% and 59% of its total revenue from Ooma Residential and approximately 43% and 38% from Ooma Business for the three months ended July 31, 2020 and 2019, respectively. The Company derived approximately 55% and 62% of its total revenue from Ooma Residential and approximately 43% and 36% from Ooma Business for the six months ended July 31, 2020 and 2019, respectively. No individual country outside of the United States represented 10% or more of total revenue for the periods presented. No single customer accounted for 10% or more of total revenue for the periods presented. As of July 31, 2020, one customer accounted for 15% of the Company’s net accounts receivable balance. As of January 31, 2020, no single customer accounted for 10% or more of net accounts receivable. Deferred Revenue primarily consists of billings or payments received in advance of meeting revenue recognition criteria. Deferred services revenue is recognized on a ratable basis over the term of the contract as the services are provided. Deferred revenue consisted of the following (in thousands):
|  |  |  | As of |
|  |  |  | July 31, 2020 |  |  | January 31, 2020 |
Subscription and services |  |  |  | $ | 16,316 |  |  | $ | 15,892 |
Product and other |  |  |  |  | 73 |  |  |  | 79 |
Total deferred revenue |  |  |  | $ | 16,389 |  |  |  | 15,971 |
Less: current deferred revenue |  |  |  |  | 16,270 |  |  |  | 15,797 |
Non-current deferred revenue included in other long-term liabilities |  |  |  | $ | 119 |  |  | $ | 174 |
During the three and six months ended July 31, 2020, the Company recognized revenue of approximately $3.0 million and $12.3 million, respectively, pertaining to amounts deferred as of January 31, 2020. As of July 31, 2020, the Company’s deferred revenue balance was primarily composed of subscription contracts that were invoiced during the first six months of fiscal 2021, as well as amounts recorded during fiscal 2020 for annual contracts. Remaining Performance Obligations. As of July 31, 2020, contract revenue that has not yet been recognized for open contracts with an original expected length of greater than one year was approximately $8.1 million. The Company expects to recognize revenue on approximately 52% of this amount over the next 12 months, with the balance to be recognized thereafter.

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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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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