Quarterly report pursuant to Section 13 or 15(d)

Note 13 - Revenue

Note 13 - Revenue
9 Months Ended
Oct. 31, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

(13)    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 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 end 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


The Company’s virtual, on-demand and classroom training provides customers with technical training. Revenue is recognized in the period in which the services are performed. 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. Mostly, the Company’s professional service engagements are 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 type for the three and nine months ended October 31, 2023 and October 31, 2022 (in thousands):



Three Months Ended October 31,


Nine Months Ended October 31,










SaaS and subscription services

  $ 96,085     $ 93,127     $ 287,936     $ 272,443  

Virtual, on-demand and classroom

    37,824       41,646       112,804       128,931  

Professional services

    5,047       4,617       14,957       13,429  

Total net revenues

  $ 138,956     $ 139,390     $ 415,697     $ 414,803  



Three Months Ended October 31,


Nine Months Ended October 31,












United States

  $ 92,587     $ 92,177     $ 274,610     $ 268,096  

Europe, Middle East and Africa

    34,475       35,230       104,751       109,031  

Other Americas

    6,714       7,099       21,041       23,075  


    5,180       4,884       15,295       14,601  

Total net revenues

  $ 138,956     $ 139,390     $ 415,697     $ 414,803  


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 nine months ended October 31, 2023 was as follows (in thousands):


Deferred revenue at January 31, 2023

  $ 282,454  

Billings deferred


Recognition of prior deferred revenue

    (415,697 )

Deferred revenue at October 31, 2023

  $ 205,796  


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 nine months ended October 31, 2023 was as follows (in thousands):


Deferred contract acquisition costs at January 31, 2023

  $ 24,594  

Contract acquisition costs


Recognition of contract acquisition costs

    (15,622 )

Deferred contract acquisition costs at October 31, 2023

  $ 26,546