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REVENUES | 12 Months Ended
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Jun. 30, 2024
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:
| Year Ended June 30,
| 2024 |  | 2023 |  | 2022
Total Revenues by Geography: |  |  |  |  |
Americas (1) | $ | 3,341,881 |  |  | $ | 2,785,003 |  |  | $ | 2,187,629 |
EMEA (2) | 1,878,470 |  |  | 1,310,016 |  |  | 1,026,201 |
Asia Pacific (3) | 549,226 |  |  | 389,961 |  |  | 280,014 |
Total revenues | $ | 5,769,577 |  |  | $ | 4,484,980 |  |  | $ | 3,493,844 |
Total Revenues by Type of Performance Obligation: |  |  |  |  |
Recurring revenues (4) |  |  |  |  |
Cloud services and subscriptions revenue | $ | 1,820,524 |  |  | $ | 1,700,433 |  |  | $ | 1,535,017 |
Customer support revenue | 2,713,297 |  |  | 1,915,020 |  |  | 1,330,965 |
Total recurring revenues | $ | 4,533,821 |  |  | $ | 3,615,453 |  |  | $ | 2,865,982 |
License revenue (perpetual, term and subscriptions) | 834,162 |  |  | 539,026 |  |  | 358,351 |
Professional service and other revenue | 401,594 |  |  | 330,501 |  |  | 269,511 |
Total revenues | $ | 5,769,577 |  |  | $ | 4,484,980 |  |  | $ | 3,493,844 |
Total Revenues by Timing of Revenue Recognition: |  |  |  |  |
Point in time | $ | 834,162 |  |  | $ | 539,026 |  |  | $ | 358,351 |
Over time (including professional service and other revenue) | $ | 4,935,415 |  |  | $ | 3,945,954 |  |  | $ | 3,135,493 |
Total revenues | $ | 5,769,577 |  |  | $ | 4,484,980 |  |  | $ | 3,493,844 |
______________________ (1)Americas consists of countries in North, Central and South America. (2)EMEA 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 June 30, 2024 |  | As of June 30, 2023
Short-term contract assets | $ | 66,450 |  |  | $ | 71,196 |
Long-term contract assets | $ | 38,684 |  |  | $ | 64,553 |
Short-term deferred revenues | $ | 1,521,416 |  |  | $ | 1,721,781 |
Long-term deferred revenues | $ | 162,401 |  |  | $ | 217,771 |
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 customer 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 year ended June 30, 2024, we reclassified $116.3 million (year ended June 30, 2023—$61.9 million) of contract assets to receivables as a result of the right to the transaction consideration becoming unconditional. During the year ended June 30, 2024, 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 year ended June 30, 2024 that was included in the deferred revenue balances at June 30, 2023 was $1.7 billion (year ended June 30, 2023 and 2022 —$887 million and $843 million, respectively). 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, 2021:
Capitalized costs to obtain a contract as of June 30, 2021 | $ | 72,900 |
New capitalized costs incurred | 39,852 |
Amortization of capitalized costs | (26,255) |
Impact of foreign exchange rate changes | (3,935) |
Capitalized costs to obtain a contract as of June 30, 2022 | 82,562 |
New capitalized costs incurred | 47,305 |
Amortization of capitalized costs | (33,269) |
Impact of foreign exchange rate changes | 609 |
Capitalized costs to obtain a contract as of June 30, 2023 | 97,207 |
New capitalized costs incurred | 60,507 |
Amortization of capitalized costs | (44,016) |
Impact of foreign exchange rate changes | (246) |
Divestiture of AMC business (Note 19) | (3,964) |
Capitalized costs to obtain a contract as of June 30, 2024 | $ | 109,488 |
During the year ended June 30, 2024, 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 June 30, 2024, approximately $2.7 billion of revenue is expected to be recognized from remaining performance obligations on existing contracts. We expect to recognize approximately 44% 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. Refer to Note 2 “Accounting Policies and Recent Accounting Pronouncements” for additional information on our revenue policy.

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org/606/tableOfContent + Details
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