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Revenue, Deferred Revenue and Remaining Performance Obligations
 12 Months Ended
Jan. 31, 2024
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue, Deferred Revenue and Remaining Performance Obligations Revenue, Deferred Revenue and Remaining Performance Obligations
The following table summarizes revenue by region based on the shipping address of customers who have contracted to use the Company’s platform or service (in thousands, except percentages):
Year Ended January 31,
202420232022
Amount% RevenueAmount% RevenueAmount% Revenue
United States$2,088,054 68 %$1,563,567 70 %$1,046,474 72 %
Europe, Middle East, and Africa467,928 15 %327,929 15 %200,198 14 %
Asia Pacific315,524 10 %228,124 10 %142,686 10 %
Other184,049 7 %121,616 5 %62,236 4 %
Total revenue$3,055,555 100 %$2,241,236 100 %$1,451,594 100 %
No single country other than the United States represented 10% or more of the Company’s total revenue during the fiscal years ended January 31, 2024, January 31, 2023, and January 31, 2022.
Contract Balances
Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period. The Company recognized revenue of $1,718.5 million and $1,126.9 million for the fiscal years ended January 31, 2024 and January 31, 2023, respectively, which was included in the corresponding contract liability balance at the beginning of the period.
The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Payment terms on invoiced amounts are typically 30 – 60 days. Contract assets include amounts related to the contractual right to consideration for both completed and partially completed performance obligations that may not have been invoiced.
Changes in deferred revenue were as follows (in thousands):
Year Ended January 31,
20242023
Beginning balance$2,355,113 $1,529,321 
Additions to deferred revenue3,754,541 3,067,028 
Recognition of deferred revenue(3,055,555)(2,241,236)
Ending balance$3,054,099 $2,355,113 
Remaining Performance Obligations
The Company’s subscription contracts with its customers have a typical term of one to three years, and most subscription contracts are non-cancellable. Customers generally have the right to terminate their contracts for cause as a result of the Company’s failure to perform. As of January 31, 2024, the aggregate amount of the transaction price allocated to remaining performance obligations was $4.6 billion. The Company expects to recognize approximately 60% of the remaining performance obligations in the 12 months following January 31, 2024 and 38% of the remaining performance obligations between 13 to 36 months, with the remainder to be recognized thereafter.
Costs to Obtain and Fulfill a Contract
The Company capitalizes referral fees paid to partners and sales commissions and associated payroll taxes paid to internal sales personnel, contractors, or sales agents that are incremental to the acquisition of channel partner and direct customer contracts and would not have occurred absent the customer contract. These costs are recorded as deferred contract acquisition costs, current and deferred contract acquisition costs, noncurrent on the consolidated balance sheets.
Sales commissions for renewal of a contract are not considered commensurate with the commissions paid for the acquisition of the initial contract or follow-on upsell given the substantive difference in commission rates in proportion to their respective contract values. Commissions, including referral fees paid to referral partners, earned upon the initial acquisition of a contract or subsequent upsell are amortized over an estimated period of benefit of four years, while commissions earned for renewal contracts are amortized over the contractual term of the renewals. Sales commissions associated with professional service contracts are amortized ratably over an estimated period of benefit of six months and are included in sales and marketing expense in the consolidated statements of operations. In determining the period of benefit for commissions paid for the acquisition of the initial contract, the Company took into consideration the expected subscription term and expected renewals of customer contracts, the historical duration of relationships with customers, customer retention data, and the life of the developed technology. The Company periodically reviews the carrying amount of deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit of these deferred costs. The Company did not recognize any material impairment losses of deferred contract acquisition costs during the year ended January 31, 2024.
The following table summarizes the activity of deferred contract acquisition costs (in thousands):
Year Ended January 31,
20242023
Beginning balance$447,088 $319,180 
Capitalization of contract acquisition costs374,116 298,716 
Amortization of deferred contract acquisition costs(238,901)(170,808)
Ending balance$582,303 $447,088 
Deferred contract acquisition costs, current$246,370 $186,855 
Deferred contract acquisition costs, noncurrent335,933 260,233 
Total deferred contract acquisition costs$582,303 $447,088