Quarterly report pursuant to Section 13 or 15(d)

Accounts Receivables, Contract Assets, and Contract Liabilities

v3.22.2.2
Accounts Receivables, Contract Assets, and Contract Liabilities
9 Months Ended
Oct. 31, 2022
Receivables [Abstract]  
Accounts Receivables, Contract Assets, and Contract Liabilities
9.
Accounts Receivables, Unbilled Receivables, and Contract Liabilities

 

Receivables

A receivable is the Company’s right to consideration that is unconditional and subject solely to the passage of time.

The following table summarizes the Company’s accounts receivable, net and unbilled receivables, net:

 

 

 

As of October 31,

 

 

As of January 31,

 

 

 

2022

 

 

2022

 

 

 

(Amounts in thousands)

 

Accounts receivable, net

 

$

7,011

 

 

$

8,819

 

Unbilled receivables, current

 

 

9,350

 

 

 

9,160

 

Unbilled receivables, long-term

 

 

2,680

 

 

 

3,952

 

 

 

$

19,041

 

 

$

21,931

 

 

As of October 31, 2022, the allowance for unbilled receivables was $0.2 million. As of January 31, 2022, there was no allowance for unbilled receivables, net.

 

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 and nine months ended October 31, 2022.

Unbilled receivables, net are expected to be billed in the future as follows (amounts in thousands, except percentage amounts):

 

 

 

As of October 31,

 

 

 

2022

 

 

Percentage

 

1 year or less

 

$

9,350

 

 

 

78

%

1-2 years

 

 

1,711

 

 

 

14

%

2-5 years

 

 

969

 

 

 

8

%

Total unbilled receivables, net

 

$

12,030

 

 

 

100

%

 

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 October 31, 2022 is due to new billings in advance of revenue recognition offset by revenue recognized during the period.

 

 

 

Deferred Revenue

 

 

 

Current

 

 

Long-Term

 

 

 

(Amounts in thousands)

 

Balance as of January 31, 2022

 

$

3,947

 

 

$

77

 

Decrease

 

 

(1,440

)

 

 

(30

)

Balance as of October 31, 2022

 

$

2,507

 

 

$

47

 

The Company recognized $0.7 million of revenue for the three months ended October 31, 2022 that was included in deferred revenue at the beginning of the period and $3.1 million of revenue for the nine months ended October 31, 2022 that was included in deferred revenue at the beginning of the period.

 

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 October 31, 2022 is $27.5 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 $18.7 million as revenue within one year, an additional $5.6 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 2028. Revenue recognized for the three and nine months ended October 31, 2022 related to remaining performance obligations as of the previous fiscal year ended January 31, 2022 was $4.2 million and $14.2 million, respectively.