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REVENUES
 9 Months Ended
Mar. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUES REVENUES
Disaggregation of Revenue
We have four revenue streams: cloud services and subscriptions, customer support, license, and professional service and other. The following tables disaggregate our revenue by significant geographic area, based on the location of our direct end customer, by type of performance obligation and timing of revenue recognition for the periods indicated:
Three Months Ended March 31,Nine Months Ended March 31,
2023202220232022
Total Revenues by Geography:
Americas (1)
$750,999 $560,969 $1,892,389 $1,615,967 
EMEA (2)
379,430 252,888 843,088 764,707 
Asia Pacific (3)
114,245 68,426 258,673 210,716 
Total revenues$1,244,674 $882,283 $2,994,150 $2,591,390 
Total Revenues by Type of Performance Obligation:
Recurring revenues (4)
Cloud services and subscriptions revenue
$435,449 $401,947 $1,248,774 $1,123,422 
Customer support revenue
575,884 332,514 1,209,743 1,002,626 
Total recurring revenues
$1,011,333 $734,461 $2,458,517 $2,126,048 
License revenue (perpetual, term and subscriptions) 139,722 80,641 310,230 263,663 
Professional service and other revenue93,619 67,181 225,403 201,679 
Total revenues$1,244,674 $882,283 $2,994,150 $2,591,390 
Total Revenues by Timing of Revenue Recognition:
Point in time $139,722 $80,641 $310,230 $263,663 
Over time (including professional service and other revenue)1,104,952 801,642 2,683,920 2,327,727 
Total revenues$1,244,674 $882,283 $2,994,150 $2,591,390 
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(1)Americas consists of countries in North, Central and South America.
(2)EMEA primarily consists of countries in Europe, the Middle East and Africa.
(3)Asia Pacific primarily consists of Japan, Australia, China, Korea, Philippines, Singapore, India and New Zealand.
(4)Recurring revenue is defined as the sum of Cloud services and subscriptions revenue and Customer support revenue.
Contract Balances
A contract asset, net of allowance for credit losses, will be recorded if we have recognized revenue but do not have an unconditional right to the related consideration from the customer. For example, this will be the case if implementation services offered in a cloud arrangement are identified as a separate performance obligation and are provided to a customer prior to us being able to bill the customer. In addition, a contract asset may arise in relation to subscription licenses if the license revenue that is recognized upfront exceeds the amount that we are able to invoice the customer at that time. Contract assets are reclassified to accounts receivable when the rights become unconditional.
The balance for our contract assets and contract liabilities (i.e. deferred revenues) for the periods indicated below were as follows:
As of March 31, 2023 (1)
As of June 30, 2022
Short-term contract assets $61,374 $26,167 
Long-term contract assets
$63,380 $19,719 
Short-term deferred revenues$1,785,121 $902,202 
Long-term deferred revenues$240,357 $91,144 
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(1)As of March 31, 2023, the deferred revenue and contract assets balances related to the Micro Focus Acquisition are $992.8 million and $83.1 million, respectively.
The difference in the opening and closing balances of our contract assets and deferred revenues primarily results from the timing difference between our performance and the customer’s payments. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. During the nine months ended March 31, 2023, we reclassified $37.7 million (nine months ended March 31, 2022 — $26.6 million) of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the three and nine months ended March 31, 2023 and 2022, respectively, there was no significant impairment loss recognized related to contract assets.
We recognize deferred revenue when we have received consideration or an amount of consideration is due from the customer for future obligations to transfer products or services. Our deferred revenues primarily relate to cloud services and customer support agreements which have been paid for by customers prior to the performance of those services. The amount of revenue that was recognized during the nine months ended March 31, 2023 that was included in the deferred revenue balances at June 30, 2022 was $813 million (nine months ended March 31, 2022—$775 million).
Incremental Costs of Obtaining a Contract with a Customer
Incremental costs of obtaining a contract include only those costs that we incur to obtain a contract that we would not have incurred if the contract had not been obtained, such as sales commissions. The following table summarizes the changes in total capitalized costs to obtain a contract, since June 30, 2022:
Capitalized costs to obtain a contract as of June 30, 2022
$82,562 
New capitalized costs incurred35,663 
Amortization of capitalized costs(24,252)
Impact of foreign exchange rate changes233 
Capitalized costs to obtain a contract as of March 31, 2023
$94,206 
During the three and nine months ended March 31, 2023 and 2022, respectively, there was no significant impairment loss recognized related to capitalized costs to obtain a contract. Refer to Note 9 “Prepaid Expenses and Other Assets” for additional information on incremental costs of obtaining a contract.
Transaction Price Allocated to the Remaining Performance Obligations
As of March 31, 2023, approximately $2.5 billion of revenue is expected to be recognized from remaining performance obligations on existing contracts. We expect to recognize approximately 47% of this amount over the next 12 months and the remaining balance substantially over the next three years thereafter. We apply the practical expedient and do not disclose performance obligations that have original expected durations of one year or less.