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REVENUES
 9 Months Ended
Mar. 31, 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:
Three Months Ended March 31,Nine Months Ended March 31,
2024202320242023
Total Revenues by Geography:
Americas (1)
$828,830 $750,999 $2,558,344 $1,892,389 
EMEA (2)
481,175 379,430 1,431,500 843,088 
Asia Pacific (3)
137,126 114,245 417,584 258,673 
Total revenues$1,447,131 $1,244,674 $4,407,428 $2,994,150 
Total Revenues by Type of Performance Obligation:
Recurring revenues (4)
Cloud services and subscriptions revenue
$454,528 $435,449 $1,355,633 $1,248,774 
Customer support revenue
691,441 575,884 2,084,916 1,209,743 
Total recurring revenues
$1,145,969 $1,011,333 $3,440,549 $2,458,517 
License revenue (perpetual, term and subscriptions) 200,363 139,722 662,627 310,230 
Professional service and other revenue100,799 93,619 304,252 225,403 
Total revenues$1,447,131 $1,244,674 $4,407,428 $2,994,150 
Total Revenues by Timing of Revenue Recognition:
Point in time $200,363 $139,722 $662,627 $310,230 
Over time (including professional service and other revenue)1,246,768 1,104,952 3,744,801 2,683,920 
Total revenues$1,447,131 $1,244,674 $4,407,428 $2,994,150 
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(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 March 31, 2024
As of June 30, 2023
Short-term contract assets (1)
$66,124 $71,196 
Long-term contract assets (1)
$42,659 $64,553 
Short-term deferred revenues (1)
$1,583,638 $1,721,781 
Long-term deferred revenues (1)
$170,544 $217,771 
______________________
(1)Excludes $5.5 million of short-term contract assets and $2.9 million of long-term contract assets that have been reclassified to Assets held for sale, as well as $176.9 million of short-term deferred revenues and $24.5 million of long-term deferred revenues that have been reclassified to Liabilities held for sale as of March 31, 2024, related to the AMC Divestiture. See Note 19 “Acquisitions and Divestitures” for more details.
The difference in the opening and closing balances of our contract assets and deferred revenues, excluding the impact of assets held for sale, 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, 2024, we reclassified $90.6 million (nine months ended March 31, 2023 — $37.7 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, 2024 and 2023, 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, excluding the impact of Liabilities held for sale, 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, 2024 that was included in the deferred revenue balances at June 30, 2023 was $1,566 million (nine months ended March 31, 2023—$813 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, 2023:
Capitalized costs to obtain a contract as of June 30, 2023
$97,207 
New capitalized costs incurred47,961 
Amortization of capitalized costs(30,493)
Impact of foreign exchange rate changes(233)
Reclassification to Assets held for sale (1)
(4,143)
Capitalized costs to obtain a contract as of March 31, 2024
$110,299 
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(1)Adjustment to reclassify capitalized costs to obtain a contract to Assets held for sale related to the AMC Divestiture. See Note 19 “Acquisitions and Divestitures” for more details.
During the three and nine months ended March 31, 2024 and 2023, 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, 2024, approximately $2.6 billion of revenue is expected to be recognized from remaining performance obligations on existing contracts, excluding performance obligations related to the AMC Divestiture which are reported within Liabilities held for sale. We expect to recognize approximately 45% of this amount over the next 12 months and the remaining balance substantially over the next three years thereafter. As of March 31, 2024, approximately $130.0 million of revenue is expected to be recognized from remaining performance obligations on existing contracts related to the AMC Divestiture and the AMC business expects to recognize approximately 50% of this amount over the next 12 months. We apply the practical expedient and do not disclose performance obligations that have original expected durations of one year or less. See Note 25 “Subsequent Events” for more details.