Revenue Recognition
Disaggregation of Revenue
The following table presents the Company’s revenue disaggregated by subscription product categories (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| Subscription | | | | | |
| SaaS | $ | 602,149 | | | $ | 444,595 | | | $ | 312,259 | |
| Maintenance | 150,879 | | | 154,351 | | | 155,528 | |
| Term subscriptions | 229,292 | | | 173,917 | | | 144,181 | |
| Other subscription services | 27,878 | | | 21,056 | | | 10,862 | |
| Total Subscription | 1,010,198 | | | 793,919 | | | 622,830 | |
| | | | | |
| Services and other | 61,218 | | | 67,692 | | | 76,742 | |
| Total revenue | $ | 1,071,416 | | | $ | 861,611 | | | $ | 699,572 | |
The following table summarizes the revenue the Company recognizes at a point in time and over time (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| Revenue recognized at a point in time | $ | 160,265 | | | $ | 110,479 | | | $ | 106,450 | |
| Revenue recognized over time | 911,151 | | | 751,132 | | | 593,122 | |
| Total revenue | $ | 1,071,416 | | | $ | 861,611 | | | $ | 699,572 | |
Contract Acquisition Costs
A summary of the activity impacting contract acquisition costs is presented below (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended January 31, |
| 2026 | | 2025 | | 2024 |
| Beginning Balance | $ | 127,104 | | | $ | 80,325 | | | $ | 30,128 | |
| Additional contract acquisition costs | 77,649 | | | 71,678 | | | 61,716 | |
| Amortization of contract acquisition costs | (39,223) | | | (24,899) | | | (11,519) | |
| Ending Balance | $ | 165,530 | | | $ | 127,104 | | | $ | 80,325 | |
There were no material impairments of contract acquisition costs for the years ended January 31, 2026, 2025, and 2024.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of revenue recognition under the Company’s contracts with customers. Revenue recognized during the reporting periods that was previously deferred was $413.7 million and $339.6 million, and $272.3 million, for the years ended January 31, 2026, 2025, and 2024, respectively.
Remaining Performance Obligations
The Company’s contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These remaining performance obligations represent contract value that has not yet been recognized as revenue. Remaining performance obligations includes both invoices that have been issued to customers but have not been recognized as revenues and amounts that will be invoiced and recognized as revenue in future periods. As of January 31, 2026, remaining performance obligations were $1.8 billion, of which the Company expects to recognize $857.8 million as revenue over the next 12 months.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.