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Note 18 - Revenue
 12 Months Ended
Jan. 31, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

(18) Revenue

 

Revenue Components and Performance Obligations

 

Subscription Services

 

The Company offers subscriptions that provide customers access to a broad-based spectrum of learning options including access to cloud-based SaaS learning content and individualized coaching. The Company’s cloud-based subscription solutions normally do not provide customers with the right to take possession of the software supporting the platform or to download course content without continuing to incur fees for hosting services and, as a result, are accounted for as service arrangements. Access to the platform and course content represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to, the customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the fixed consideration related to subscription revenue is usually recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. The Company’s subscription contracts typically vary from one year to three years. The Company’s cloud-based solutions arrangements are mostly non-cancellable, non-refundable, and are invoiced in advance of the subscription services being provided.

 

Virtual, On-Demand and Classroom

 

Revenue from classroom training and individual coaching is recognized in the period in which the services are rendered. Revenue from virtual and on-demand training for time-based access to unlimited sessions is recognized on a straight-line basis over the period these services are available to the customers. Billing is in advance of the services being provided or immediately after the services have been provided.

 

Professional Services

 

The Company also sells professional services related to its cloud solutions which are typically considered distinct performance obligations and are recognized over time as services are performed. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided (proportional performance method). These services usually consist of implementation, integration, and general consulting. The Company’s professional service engagements are mostly short in duration. Billing is commonly in advance of the services being provided.

 

Disaggregated Revenue and Geography Information

 

The following is a summary of revenues by segment and type for the periods presented (in thousands):

 

  

Twelve Months Ended January 31,

 
  

2025

  

2024

  

2023

 

TDS:

            

SaaS and subscription services

 $382,734  $384,022  $365,447 

Professional services

  22,796   20,828   18,931 
   405,530   404,850   384,378 

GK:

            

Virtual, on-demand and classroom

  125,464   148,387   170,746 

Total net revenues

 $530,994  $553,237  $555,124 

 

Generally, SaaS and subscription services revenues are recognized over the service period, while virtual, on demand, classroom and professional services revenues are recognized at the point they are delivered.

 

The following table sets forth our revenues by geographic region for the periods presented, (in thousands):

 

  

Twelve Months Ended January 31,

 
  

2025

  

2024

  

2023

 

Revenue:

            

United States

 $347,937  $363,665  $356,604 

Europe, Middle East and Africa

  134,580   140,716   148,154 

Other Americas

  26,037   28,547   30,512 

Asia-Pacific

  22,440   20,309   19,854 

Total net revenues

 $530,994  $553,237  $555,124 

 

Other than the United States, no single country accounted for more than 10% of revenue for all periods presented.

 

Deferred Revenue

 

Deferred revenue activity for the fiscal year ended January 31, 2025 was as follows (in thousands):

 

Deferred revenue as of January 31, 2024

 $284,972 

Billings deferred

  529,973 

Recognition of deferred revenue attributable:

    

Prior year deferred revenue

  (277,134)

Current year deferred revenue

  (253,860)

Deferred revenue as of January 31, 2025

 $283,951 

 

Deferred revenue performance obligations relate predominantly to time-based SaaS and subscription services that are billed in advance of services being rendered.

 

Deferred Contract Acquisition Costs

 

Deferred contract acquisition cost activity for the fiscal year ended January 31, 2025 was as follows (in thousands):

 

Deferred contract acquisition costs as of January 31, 2024

 $36,667 

Contract acquisition costs

  28,128 

Recognition of contract acquisition costs

  (26,457)

Deferred contract acquisition costs as of January 31, 2025

 $38,338