Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Revenue

Note 10 - Revenue
3 Months Ended
Apr. 30, 2024
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

(10)    Revenue


Revenue Components and Performance Obligations


SaaS and Subscription Services


The Company offers subscriptions that provide customers access to a broad-based spectrum of learning options including access to cloud-based Software as a Service ("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 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 months ended April 30, 2024 and April 30, 2023 (in thousands):



Three Months Ended April 30,






SaaS and subscription services

  $ 93,162     $ 93,819  

Virtual, on-demand and classroom

    29,718       36,981  

Professional services

    4,913       4,754  

Total net revenues

  $ 127,793     $ 135,554  


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 sets forth our revenues by geographic region for the three months ended April 30, 2024 and April 30, 2023 (in thousands):



Three Months Ended April 30,








United States

  $ 84,948     $ 89,087  

Europe, Middle East and Africa

    31,345       34,535  

Other Americas

    6,351       6,996  


    5,149       4,936  

Total net revenues

  $ 127,793     $ 135,554  


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 three months ended April 30, 2024 was as follows (in thousands):


Deferred revenue at January 31, 2024

  $ 284,972  

Billings deferred


Recognition of prior deferred revenue

    (127,793 )

Deferred revenue at April 30, 2024

  $ 245,275  


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 three months ended April 30, 2024 was as follows (in thousands):


Deferred contract acquisition costs at January 31, 2024

  $ 36,667  

Contract acquisition costs


Recognition of contract acquisition costs

    (5,442 )

Deferred contract acquisition costs at April 30, 2024

  $ 34,281