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Revenues | 6 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenues | 3. Revenues The Company accounts for revenues in accordance with Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers. The Company derives the majority of its revenues from sales of its networking equipment, with the remaining revenues generated from sales of subscription and support, which primarily includes software subscriptions delivered as software as a service (“SaaS”) and additional revenues from maintenance contracts, professional services and training for its products. The Company sells its products, SaaS, and maintenance contracts direct to customers and to partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock the Company's products and sell primarily to resellers. The second tier of the distribution channel consists of non-stocking distributors and value-added resellers that sell directly to end-users. Products and subscription and support may be sold separately or in bundled packages. Revenue Recognition Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in ASC 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using other observable inputs. The Company’s performance obligations are satisfied at a point in time or over time as the customer receives and consumes the benefits provided. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s subscription and support revenues are recognized over time. For revenues recognized over time, the Company uses an input measure, days elapsed, to measure progress. On December 31, 2023, the Company had $548.2 million of remaining performance obligations, which primarily comprised deferred maintenance and deferred SaaS revenues. The Company expects to recognize approximat ely 32% of its deferred revenue as revenue in the remainder of fiscal 2024, an additional 34% in fiscal 2025, and 34% of the balance thereafter. Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or at periodic intervals (e.g., quarterly or annually). The Company generally receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period. Revenue recognized for the three months ended December 31, 2023 and 2022 that was included in the deferred revenue balance at the beginning of each period w as $105.7 million and $83.9 million, respectively. Revenue recognized for the six months ended December 31, 2023 and 2022 that was included in the deferred revenue balance at the beginning of each period was $172.0 million and $145.7 million, respectively. Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining subscription and support contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $22.2 million and $20.0 million at December 31, 2023 and June 30, 2023, respectively. Capitalized commissions are included within other assets in the condensed consolidated balance sheets. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2023 and 2022 was $2.7 million and $2.2 million, respectively. Amortization recognized during the six months ended December 31, 2023 and 2022 was $5.2 million and $4.3 million, respectively. Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations, which were satisfied or partially satisfied during previous periods. Revenues by Category The Company operates in three geographic regions: Americas, EMEA (Europe, Middle East and Africa) and APAC (Asia Pacific). The following table sets forth the Company’s net revenues disaggregated by sales channel and geographic region based on the billing addresses of its customers (in thousands):
|  | Three Months Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |
|  | Distributor |  | Direct |  | Total |  |  | Distributor |  | Direct |  | Total |
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 81,350 |  | $ | 68,199 |  | $ | 149,549 |  |  | $ | 70,963 |  | $ | 66,630 |  | $ | 137,593 |
Other |  |  | 8,244 |  |  | 4,842 |  |  | 13,086 |  |  |  | 10,807 |  |  | 4,614 |  |  | 15,421 |
Total Americas |  |  | 89,594 |  |  | 73,041 |  |  | 162,635 |  |  |  | 81,770 |  |  | 71,244 |  |  | 153,014 |
EMEA |  |  | 64,082 |  |  | 46,523 |  |  | 110,605 |  |  |  | 97,147 |  |  | 40,903 |  |  | 138,050 |
APAC |  |  | 8,864 |  |  | 14,273 |  |  | 23,137 |  |  |  | 7,403 |  |  | 19,881 |  |  | 27,284 |
Total net revenues |  | $ | 162,540 |  | $ | 133,837 |  | $ | 296,377 |  |  | $ | 186,320 |  | $ | 132,028 |  | $ | 318,348 |
|  | Six Months Ended |
|  | December 31, 2023 |  |  | December 31, 2022 |
|  | Distributor |  | Direct |  | Total |  |  | Distributor |  | Direct |  | Total |
Americas: |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 199,151 |  | $ | 133,150 |  | $ | 332,301 |  |  | $ | 144,277 |  | $ | 130,942 |  | $ | 275,219 |
Other |  |  | 10,775 |  |  | 15,208 |  |  | 25,983 |  |  |  | 26,832 |  |  | 8,712 |  |  | 35,544 |
Total Americas |  |  | 209,926 |  |  | 148,358 |  |  | 358,284 |  |  |  | 171,109 |  |  | 139,654 |  |  | 310,763 |
EMEA |  |  | 166,393 |  |  | 87,815 |  |  | 254,208 |  |  |  | 173,403 |  |  | 80,156 |  |  | 253,559 |
APAC |  |  | 8,975 |  |  | 28,047 |  |  | 37,022 |  |  |  | 9,441 |  |  | 42,274 |  |  | 51,715 |
Total net revenues |  | $ | 385,294 |  | $ | 264,220 |  | $ | 649,514 |  |  | $ | 353,953 |  | $ | 262,084 |  | $ | 616,037 |
For the three months ended December 31, 2023, the Company generated 10% of its net revenues from Germany. For the six months ended December 31, 2023, the Company generated approximately 11% of its net revenues from the Netherlands. For the three months ended December 31, 2022, the Company generated 11% and 10% of its net revenues from the Netherlands and Germany, respectively. For the six months ended December 31, 2022, the Company generated 10% of its net revenues from each of the Netherlands and Germany. No other foreign country accounted for 10% or more of its net revenues for the three and six months ended December 31, 2023 and 2022. Customer Concentrations The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit. The following table sets forth customers accounting for 10% or more of the Company’s net revenues for the periods indicated below:
|  | Three Months Ended |  | Six Months Ended
|  | December 31, 2023 |  | December 31, 2022 |  | December 31, 2023 |  | December 31, 2022
Jenne, Inc. |  | 23% |  | 13% |  | 25% |  | 13%
Westcon Group, Inc. |  | 10% |  | 19% |  | 18% |  | 17%
TD Synnex Corporation |  | 24% |  | 17% |  | 21% |  | 18%
ScanSource, Inc. |  | * |  | 11% |  | * |  | *
* Less than 10% of revenue |  |  |  |  |  |  |  |
The following table sets forth major customers accounting for 10% or more of the Company’s net accounts receivable balance:
|  | December 31, 2023 |  | June 30, 2023
Jenne, Inc. |  | 52% |  | 39%
TD Synnex Corporation |  | * |  | 10%
ScanSource, Inc. |  | * |  | 10%
Ingram Micro |  | 10% |  | *
* Less than 10% of accounts receivable |  |  |  |
The Company's net accounts receivable balance with Jenne, Inc. as of December 31, 2023 is current and the Company expects to collect the majority of this balance by March 31, 2024.

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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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