Company Quick10K Filing
Medallia
Price27.51 EPS-1
Shares128 P/E-45
MCap3,513 P/FCF-191
Net Debt-297 EBIT-78
TEV3,217 TEV/EBIT-41
TTM 2019-10-31, in MM, except price, ratios
10-Q 2020-04-30 Filed 2020-06-09
10-K 2020-01-31 Filed 2020-03-19
10-Q 2019-10-31 Filed 2019-12-11
10-Q 2019-07-31 Filed 2019-09-12
S-1 2019-06-21 Public Filing
8-K 2020-06-22
8-K 2020-06-02
8-K 2020-05-29
8-K 2020-03-12
8-K 2019-12-05
8-K 2019-09-23
8-K 2019-09-05

MDLA 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7A. Qualitative and Quantitative Disclosures About Market Risk
Item 9A. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-10.1 ca019sfcbc23rd575marke.htm
EX-31.1 exhibit311-q14302020.htm
EX-31.2 exhibit312-q14302020.htm
EX-32.1 exhibit321-q14302020.htm
EX-32.2 exhibit322-q14302020.htm

Medallia Earnings 2020-04-30

Balance SheetIncome StatementCash Flow
0.70.60.40.30.10.02018201820192020
Assets, Equity
0.20.10.10.0-0.0-0.12018201820192020
Rev, G Profit, Net Income
0.0-0.0-0.0-0.1-0.1-0.12018201820192020
Ops, Inv, Fin

mdla-20200430
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
______________________________________
FORM 10-Q
______________________________________
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 2020
OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______ to ______
Commission File Number: 001-38982
______________________________________
Medallia, Inc.
(Exact name of registrant as specified in its charter)
______________________________________
Delaware77-0558353
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
575 Market Street, Suite 1850
San Francisco, California 94105
(Address of principal executive offices, including zip code)
(650) 321-3000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading
Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 par value per shareMDLANew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of May 29, 2020, 141,130,176 shares of the registrant's common stock, $0.001 par value, were outstanding.


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MEDALLIA, INC.

TABLE OF CONTENTS

Page
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3
Item 4
Item 5
Item 6.


© 2020 Medallia, Inc. All rights reserved. Medallia®, the Medallia logo, and the names and marks associated with Medallia’s products are trademarks of Medallia. All other trademarks are the property of their respective owners.
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SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risk and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:

our ability to attract new customers;
our ability to retain customers;
our ability to maintain and improve our products;
our ability to up-sell and cross-sell within our existing customer base;
our future financial performance, including trends in revenue, cost of revenue, gross profit or gross margin, operating expenses customers and other key metrics;
our expectations and management of future growth;
our ability to achieve or maintain profitability;
the implications of the COVID-19 pandemic on our business;
possible harm caused by significant disruption of service or loss or unauthorized access to users’ data;
our ability to prevent serious errors or defects in our products;
our ability to protect our brand;
our ability to attract and retain key personnel and highly qualified personnel;
our ability to manage our international expansion;
our ability to maintain, protect and enhance our intellectual property;
our ability to effectively integrate our products and solutions with others;
our ability to successfully identify, acquire and integrate companies and assets;
our ability to offer high-quality customer support;
the increased expenses associated with being a public company;
the demand for our platform or for customer experience market solutions in general;
our ability to compete successfully in competitive markets; and
our ability to respond to rapid technological changes.

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors related to the current COVID-19 pandemic and those described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.
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The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments we may make.

In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
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PART I—FINANCIAL INFORMATION

Item 1.  Financial Statements

Medallia, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except share and par value data)
(unaudited)
April 30, 2020January 31, 2020
Assets
Current assets:
Cash and cash equivalents$344,697  $226,866  
Marketable securities62,832  116,833  
Trade and other receivables, net of allowance for doubtful accounts of $2,043 and $982 as of April 30, 2020 and January 31, 2020, respectively
67,645  150,661  
Deferred commissions, current22,792  22,455  
Prepaid expenses and other current assets28,625  22,492  
Total current assets526,591  539,307  
Property and equipment, net36,274  34,879  
Deferred commissions, noncurrent49,467  51,540  
Intangible assets, net25,091  21,306  
Goodwill98,241  79,324  
Other noncurrent assets6,252  5,293  
Total assets$741,916  $731,649  
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$1,791  $3,608  
Accrued expenses and other current liabilities19,556  20,268  
Accrued compensation18,224  37,160  
Revolving line of credit43,000    
Deferred revenue, current221,600  263,115  
Total current liabilities304,171  324,151  
Deferred revenue, noncurrent4,292  1,407  
Deferred rent, noncurrent5,741  2,799  
Other liabilities4,191  5,496  
Total liabilities318,395  333,853  
Commitments and contingencies (Note 9)
Stockholders' equity:
Common stock, $0.001 par value: 1,000,000,000 shares and 1,000,000,000 shares authorized as of April 30, 2020 and January 31, 2020, respectively; 139,794,418 shares and 132,346,402 shares issued and outstanding as of April 30, 2020 and January 31, 2020, respectively
139  132  
        Additional paid-in capital 939,841  878,843  
Accumulated other comprehensive loss(2,957) (206) 
Accumulated deficit(513,502) (480,973) 
Total stockholders' equity 423,521  397,796  
Total liabilities and stockholders' equity$741,916  $731,649  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.


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Medallia, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)


Three Months Ended April 30,
20202019
Revenue:
Subscription$88,992  $71,712  
Professional services23,699  21,907  
Total revenue112,691  93,619  
Cost of revenue:
Subscription17,344  13,461  
Professional services22,219  19,134  
Total cost of revenue39,563  32,595  
Gross profit73,128  61,024  
Operating expenses:
Research and development32,379  19,616  
Sales and marketing52,015  33,615  
General and administrative21,498  9,838  
Total operating expenses105,892  63,069  
Loss from operations(32,764) (2,045) 
Interest income and other income (expense), net175  142  
Loss before provision for income taxes(32,589) (1,903) 
(Benefit from) provision for income taxes(60) 656  
Net loss$(32,529) $(2,559) 
Net loss per share attributable to common stockholders, basic and diluted$(0.24) $(0.08) 
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted135,993  30,430  
The accompanying notes are an integral part of these unaudited consolidated financial statements.
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Medallia, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(in thousands)
(unaudited)


Three Months Ended April 30,
20202019
Net loss$(32,529) $(2,559) 
Other comprehensive income (loss), net of taxes: 
   Foreign currency translation adjustment  (2,531) (163) 
   Change in unrealized gain (loss) on marketable securities 3  15  
   Change in unrealized gain (loss) on cash flow hedges (223) (253) 
Other comprehensive loss  (2,751) (401) 
Comprehensive loss$(35,280) $(2,960) 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Medallia, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)


Three Months Ended April 30,
20202019
Operating activities
Net loss$(32,529) $(2,559) 
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization5,468  3,178  
Amortization of deferred commissions6,081  4,178  
Stock-based compensation expense31,804  7,962  
Impairment (gain) on property and equipment, and lease termination  (13,783) 
Other845  494  
Changes in assets and liabilities:
Trade and other receivables81,689  55,281  
Deferred commissions(4,345) (6,702) 
Prepaid expenses and other current assets(5,809) (891) 
Other noncurrent assets(892) (100) 
Accounts payable(2,726) 736  
Deferred revenue(39,248) (25,135) 
Accrued expenses and other current liabilities(20,277) (4,246) 
Other noncurrent liabilities3,052  (171) 
Net cash provided by operating activities23,113  18,242  
Investing activities
Purchases of property, equipment and other(5,374) (1,852) 
Purchase of marketable securities(22,748) (68,726) 
Maturities of marketable securities76,423    
Proceeds from sale of marketable securities600  511  
Acquisitions, net of cash acquired(25,209)   
Net cash provided by (used in) investing activities23,692  (70,067) 
Financing activities
Proceeds from Series F convertible preferred stock, net of issuance costs  69,848  
Proceeds from revolving line of credit43,000    
Proceeds from exercise of stock options19,180  5,276  
Proceeds from share purchase plan10,267    
Principal payments on capital leases(1,041) (624) 
Deferred issuance costs  (3,053) 
Net cash provided by financing activities71,406  71,447  
Effect of exchange rate changes on cash and cash equivalents(380) (42) 
Net increase in cash and cash equivalents117,831  19,580  
Cash and cash equivalents at beginning of period226,866  44,876  
Cash and cash equivalents at end of period$344,697  $64,456  
Supplemental disclosures of cash flow information:
Cash paid for interest$168  $113  
Cash paid for income taxes$469  $302  
Noncash investing and financing activities:
Other receivables related to stock option exercises$93  $  
Vesting of early exercised stock options$  $207  
Accrued unpaid capital expenditures$1,318  $3,222  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Medallia, Inc.
Condensed Consolidated Statements of Stockholders' Equity
(in thousands, except share data)
(unaudited)



Convertible
Preferred Stock
Class A
Common Stock
Class B
Common Stock

Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Stockholders'
Equity
(Deficit)
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at January 31, 2020  $    $    $  132,346,402  $132  $878,843  $(206) $(480,973) $397,796  
Exercise of employee stock options—  —  —  —  —  —  5,184,632  6  18,928  —  —  18,934  
Release of restricted stock units—  —  —  —  —  —  1,671,652  —  —  —  —  —  
Issuance of shares from share purchase plan—  —  —  —  —  —  591,732  1  10,266  —  —  10,267  
Stock-based compensation—  —  —  —  —  —  —  —  31,804  —  —  31,804  
Other comprehensive loss—  —  —  —  —  —  —  —  —  (2,751) —  (2,751) 
Net loss—  —  —  —  —  —  —  —  —  —  (32,529) (32,529) 
Balance at April 30, 2020  $    $    $  139,794,418  $139  $939,841  $(2,957) $(513,502) $423,521  

Convertible
Preferred Stock
Class A
Common Stock
Class B
Common Stock

Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Total
Stockholders'
Equity
(Deficit)
SharesAmountSharesAmountSharesAmountSharesAmount
Balance at January 31, 201972,482,609  $72  29,755,883  $30  3,000  $    $  $363,076  $(1,096) $(368,640) $(6,558) 
Issuance of Series F preferred shares, net of issuance costs4,666,666  5  —  —  —  —  —  —  69,843  —  —  69,848  
Exercise of employee stock options—  —  1,370,818  1  —  —  —  —  5,267  —  —  5,268  
Repurchase of early exercised stock options—  —  —  —  —  —  —  —  —  —  —  —  
Vesting of early exercised stock options—  —  —  —  —  —  —  —  207  —  —  207  
Stock-based compensation—  —  —  —  —  —  —  —  7,962  —  —  7,962  
Other comprehensive loss—  —  —  —  —  —  —  —  —  (401) —  (401) 
Net loss—  —  —  —  —  —  —  —  —  —  (2,559) (2,559) 
Balance at April 30, 201977,149,275  $77  31,126,701  $31  3,000  $    $  $446,355  $(1,497) $(371,199) $73,767  
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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Medallia, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements


1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Medallia, Inc. (the Company or Medallia) provides an enterprise Software-as-a-Service (SaaS) platform that utilizes deep learning-based artificial intelligence (AI) technology to analyze structured and unstructured data from signal fields across human, digital and Internet of Things (IoT) interactions at great scale to derive personalized and predictive insights. Medallia's customers include companies in various industries such as retail, technology, manufacturing, financial services, insurance and hospitality. Medallia is headquartered in San Francisco, California.
Basis of Presentation and Consolidation
The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
The condensed consolidated balance sheet as of January 31, 2020 included herein was derived from the audited financial statements as of that date but does not include all disclosures including certain notes required by GAAP on an annual reporting basis. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, comprehensive loss, stockholders’ equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements in its Annual Report on Form 10-K, for the year ended January 31, 2020.
The Company's fiscal year ends on January 31. References to fiscal 2021, for example, refer to the fiscal year ended January 31, 2021.
Use of Estimates
The preparation of these unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the periods covered by the financial statements and accompanying notes. Such estimates include, but are not limited to revenue recognition, stock-based compensation expense, including estimation of the grant date fair value of the common stock, allowance for doubtful accounts, the assessment of the recoverability of long-lived assets (goodwill, and identified intangible assets), and contingencies. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates.
The COVID-19 pandemic has created and may continue to create significant uncertainty, which in the future may adversely impact the Company’s results of operations. The Company expects uncertainties around its key accounting estimates, including principally the allowance for doubtful accounts, to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic. The Company’s estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in its unaudited condensed consolidated financial statements.

JOBS Act Accounting Election

The Company is an emerging growth company (EGC), as defined in the Jumpstart Our Business Startups Act of 2012 (the JOBS Act). Under the JOBS Act, EGCs can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date the
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Medallia, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements

Company (i) is no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, the Company’s unaudited condensed consolidated financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Concentrations of Credit Risk and Significant Customers
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and trade and other receivables. For cash, cash equivalents and marketable securities, the Company is exposed to credit risk in the event of default to the extent of the amounts recorded on the condensed consolidated balance sheets. A majority of the cash balances are with U.S. banks and are insured to the extent defined by the Federal Deposit Insurance Corporation.
The Company does not require collateral for trade receivables. No customer accounted for 10% or more of total revenues for three months ended April 30, 2020 and 2019. One customer accounted for 10% or more of accounts receivable as of April 30, 2020 and no customer accounted for 10% or more of accounts receivable as of January 31, 2020.

Significant Accounting Policies
The Company’s significant accounting policies are disclosed in its Annual Report on Form 10-K for the year ended January 31, 2020. There have been no material changes to the Company’s significant accounting policies during the three months ended April 30, 2020.

Recently Issued Accounting Pronouncements
In February 2016, the FASB issued ASU No. 2016-02, Leases, as amended, which would require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a similar manner to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. The guidance will be effective for the Company for its fiscal year ending January 31, 2021 and interim periods thereafter. While the Company is evaluating the accounting, transition and disclosure requirements of the standard, the Company anticipates the recognition of additional assets and corresponding liabilities related to the leases on its balance sheets.
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which requires the measurement and recognition of expected credit losses for financial assets not held at fair value. ASU 2016-13 replaces the existing incurred loss impairment model with a forward-looking expected credit loss model which will result in earlier recognition of credit losses. The guidance will be effective for the Company for its fiscal year ending January 31, 2023 and interim periods within that fiscal year. Early adoption is permitted. The Company is in the process of evaluating the impact of this accounting standard.
In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, as amended. The ASU is intended to better align an entity's risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. The guidance will be effective for the Company for its fiscal year ending January 31, 2021 and interim periods thereafter. Early adoption is permitted. The Company is in the process of evaluating the impact of this accounting standard.

2. Revenue

Revenue Recognition
Revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.

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The Company determines revenue recognition through the following steps:

identification of the contract, or contracts, with a customer;
identification of the performance obligations in the contract;
determination of the transaction price;
allocation of the transaction price to the performance obligations in the contract; and
recognition of revenue when, or as, the Company satisfies a performance obligation.

Subscription Revenue
Subscription revenue is derived from customers accessing the Company's proprietary hosted cloud application. The Company's customers do not have the ability to take possession of the software operating the cloud application. The contracted subscription terms are typically one year to three years.
The Company recognizes subscription revenue ratably over the subscription term, commencing on the date the service is provisioned.
Professional Services Revenue
Professional services revenue consists of managed services and implementation and other services. These services are distinct from subscription revenue.
Managed services support our customers by providing a range of ongoing services including program design, launch, enhancement, expansion and analytics. Managed services are a stand-ready obligation to perform these services over the term of the arrangement and as a result, revenues are recognized ratably over the term of the arrangement.
Implementation services consist primarily of initial design, integration and configuration services. Other professional services include projects that enable customers to gain insightful business information through data analysis, and the Company's institute training programs.
Implementation and other services revenue are recognized as services are performed.

Contracts with Multiple Performance Obligations
Most of the Company's contracts with customers contain multiple performance obligations. The Company's subscription services are sold for a broad range of amounts (the selling price is highly variable) and a representative standalone selling price (SSP) is not discernible from past transactions or other observable evidence. Standalone selling prices for professional services are estimated based upon observable transactions when those services are sold on a standalone basis. As a result, the SSP for subscription services included in a contract with multiple performance obligations is determined by applying a residual approach whereby performance obligations related to professional services within a contract are first allocated a portion of the transaction price based upon their respective SSPs, with the residual amount of transaction price allocated to subscription services.
Contract Balances and Remaining Performance Obligations
Contract assets represent revenue recognized for contracts that have not yet been invoiced to customers, typically for multi-year arrangements. Total contract assets were $2.2 million and $2.1 million as of April 30, 2020 and January 31, 2020, respectively, and are included within trade and other receivables, net, on the unaudited condensed consolidated balance sheets.
Contract liabilities consist of deferred revenue. Revenue is deferred when the Company has the right to invoice in advance of services being provided. The Company recognized revenue of $93.4 million and $76.0 million during the three months ended April 30, 2020 and 2019, respectively, that were included in the deferred revenue balances at the beginning of the respective periods.


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The Company applied a practicable expedient allowing it not to disclose the amount of the transaction price allocated to the remaining performance obligations for contracts with an original expected duration of one year or less, which includes certain professional service contracts.
Remaining performance obligations represent contracted revenue that has not yet been recognized, and include deferred revenue, and amounts that will be invoiced and recognized as revenue in future periods. As of April 30, 2020, the Company's remaining performance obligations were $630.6 million, approximately 51% of which it expects to recognize as revenue over the next 12 months and the remaining balance will be recognized thereafter. As of January 31, 2020, the Company's remaining performance obligations were $679.0 million, approximately 51% of which it expects to recognize as revenue over the next 12 months and the remaining balance will be recognized thereafter.
Disaggregation of Revenue by Geographic Region
The following table sets forth revenue by geographic region based on the billing address of the customers' parent for the periods presented (in thousands):

Three Months Ended April 30,
20202019
North America$86,925  $71,447  
EMEA16,942  15,283  
Other8,824  6,889  
Total$112,691  $93,619  
The United States comprised 73% of the Company's revenue during each of the three months ended April 30, 2020 and 2019. No other country comprised 10% or greater of the Company's revenue during the three months ended April 30, 2020 and 2019.

3. Fair Value of Assets and Liabilities
The Company estimates the fair value of cash equivalents, marketable securities and foreign currency derivative contracts by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
Level 1: Quoted prices in active markets for identical assets or liabilities.
Level 2: Observable inputs such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical assets and liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data or other means.

Level 3: Unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. The inputs require significant management judgment or estimation.
All of the Company's cash equivalents, marketable securities and foreign currency derivative contracts are classified within Level 1 or Level 2 because the Company's cash equivalents, marketable securities and foreign currency derivative contracts are valued using quoted market prices or alternative pricing sources and models utilizing observable market inputs.


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Medallia, Inc.
Notes to Unaudited Condensed Consolidated Financial Statements

The following tables represents the fair value of assets and liabilities measured at fair value on a recurring basis using the above hierarchy (in thousands):
April 30, 2020January 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets:
Cash equivalents:
Money market funds$154,531  $  $  $154,531  $92,272  $  $  $92,272  
Commercial paper  18,080    18,080    17,667    17,667  
U.S. government and agency securities