Receivables

As of April 30, 2023 and January 31, 2023, the allowance for credit losses on current accounts receivable was $0.6 million and $0.8 million, respectively. As of April 30, 2023, the allowance for credit losses on current unbilled receivables was $0.4 million and $0.2 million on long-term unbilled receivables. As of January 31, 2023, the allowance for credit losses on current unbilled receivables was $0.2 million, and there was no allowance for credit losses provided for long-term unbilled receivables.

Unbilled Receivables, Net

Unbilled receivables, net consist of amounts recognized as revenue as performance obligations were transferred to customers for which the Company does not currently have the right to invoice. Unbilled receivables, net are primarily derived from the allocation of contract consideration to products and services, such as software licenses, recognized at the point of time transferred when the payment of such consideration is contingent on transferring support and maintenance services over the subsequent period which is frequently one to three years. There were no impairment losses recognized during the three months ended April 30, 2023 or 2022.

Contract Liabilities

Contract liabilities consist of deferred revenue and customer deposits that arise when amounts are billed to or collected from customers in advance of revenue recognition. Deferred revenue that will be recognized during the succeeding 12-month period is recorded as current deferred revenue and the remaining portion is recorded as deferred revenue, long-term. The change in deferred revenue as of April 30, 2023 is due to new billings in advance of revenue recognition offset by revenue recognized during the period.

The Company recognized $2.0 million of revenue that was included in deferred revenue at the beginning of the period, offset by an additional $1.9 million of new contract liabilities for the three months ended April 30, 2023.

Remaining Performance Obligations

The aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied or are partially satisfied as of April 30, 2023 is $20.5 million and consists primarily of undelivered software, service, and support obligations. This amount in part includes amounts billed for undelivered services that are included in deferred revenue reported on the condensed consolidated balance sheets. The Company expects to recognize $13.8 million as revenue within one year, an additional $3.8 million in the following year, and the remaining revenue thereafter. The Company expects to recognize substantially all of the remaining performance obligations by the second quarter of fiscal 2029. Revenue recognized for the three months ended April 30, 2023 related to remaining performance obligations as of the previous fiscal year ended January 31, 2023 was $4.0 million.