v3.24.2.u1
Revenue and contract costs
 6 Months Ended
Jul. 31, 2024
Revenue from Contract with Customer [Abstract]  
Revenue and contract costs Revenue and contract costs
The Company generates revenue primarily from providing integrated SaaS-based software and payment solutions for the healthcare industry. The Company derives revenue from subscription fees and related services generated from the Company’s healthcare services clients for access to the Company’s solutions, payment processing fees based on patient payment volume, and fees from life sciences and payer clients for delivering qualified direct communications to patients who voluntarily opt in to receive this type of engagement using the Company’s solutions.
The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $2,324 and $2,603 for the three months ended July 31, 2024 and 2023, respectively. The amount of subscription and related services revenue recorded pursuant to ASC 842 for the leasing of the Company’s PhreesiaPads and Arrivals Kiosks was $4,712 and $5,265 for the six months ended July 31, 2024 and 2023, respectively.
Contract balances
The following table represents a roll-forward of contract assets:
Balance, January 31, 2024$3,375 
Amount transferred to receivables from beginning balance of contract assets(3,375)
Contract asset additions, net of reclassification to receivables8,336 
Balance, July 31, 2024
$8,336 

The following table represents a roll-forward of deferred revenue:
Balance, January 31, 2024$24,210 
Revenue recognized that was included in deferred revenue at the beginning of the period(20,101)
Other current period activity in deferred revenue17,324 
Balance, July 31, 2024
$21,433 
Cost to obtain a contract
The Company capitalizes certain incremental costs to obtain customer contracts and amortizes these costs over a period of benefit that the Company has estimated to be three to five years. The Company determined the period of benefit by taking into consideration its customer contracts, its technology and other factors. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $192 and $280 for the three months ended July 31, 2024 and 2023, respectively. Amortization expense is included in sales and marketing expenses in the accompanying consolidated statements of operations and totaled $384 and $620 for the six months ended July 31, 2024 and 2023, respectively. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.
The following table represents a roll forward of deferred contract acquisition costs:
Balance, January 31, 2024$1,754 
Additions to deferred contract acquisition costs213 
Amortization of deferred contract acquisition costs(384)
Balance, July 31, 2024
$1,583 
Deferred contract acquisition costs, current (to be amortized in next 12 months)$841 
Deferred contract acquisition costs, non-current742 
Total deferred contract acquisition costs$1,583