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REVENUES
 12 Months Ended
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,
202420232022
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 revenue401,594 330,501 269,511 
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 incurred39,852 
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 incurred47,305 
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 incurred60,507 
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.