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Revenue Recognition | 6 Months Ended
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Jan. 31, 2021
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Note 3—Revenue Recognition The Company earns revenue from contracts with customers, primarily through the provision of retail telecommunications and payment offerings as well as wholesale international voice and SMS termination. BOSS Revolution Money Transfer, NRS, and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company’s core assets, and revenue is primarily recognized at a point in time, and in some cases (mainly net2phone-UCaaS) is recognized over time. Traditional Communications are mostly minute-based, paid-voice communications services, and revenue is primarily recognized at a point in time. The Company’s most significant revenue streams are from BOSS Revolution Calling, Mobile Top-Up, and Carrier Services. BOSS Revolution Calling and Mobile Top-Up are sold direct-to-consumers and through distributors and retailers. Disaggregated Revenues The following table shows the Company’s revenues disaggregated by business segment and service offered to customers:
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
BOSS Revolution Money Transfer |  | $ | 13,280 |  |  | $ | 7,660 |  |  | $ | 28,438 |  |  | $ | 14,861 |
National Retail Solutions |  |  | 5,217 |  |  |  | 2,081 |  |  |  | 10,147 |  |  |  | 4,437 |
Total Fintech |  |  | 18,497 |  |  |  | 9,741 |  |  |  | 38,585 |  |  |  | 19,298 |
net2phone-UCaaS |  |  | 10,738 |  |  |  | 7,915 |  |  |  | 20,366 |  |  |  | 15,122 |
Mobile Top-Up |  |  | 96,562 |  |  |  | 75,836 |  |  |  | 192,397 |  |  |  | 152,669 |
BOSS Revolution Calling |  |  | 113,903 |  |  |  | 113,861 |  |  |  | 231,253 |  |  |  | 231,195 |
Carrier Services |  |  | 87,155 |  |  |  | 101,659 |  |  |  | 174,928 |  |  |  | 215,176 |
Other |  |  | 12,911 |  |  |  | 14,878 |  |  |  | 25,662 |  |  |  | 30,629 |
Total Traditional Communications |  |  | 310,531 |  |  |  | 306,234 |  |  |  | 624,240 |  |  |  | 629,669 |
Total |  | $ | 339,766 |  |  | $ | 323,890 |  |  | $ | 683,191 |  |  | $ | 664,089 |
The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On July 31, 2020, the Company restructured certain operations for tax purposes resulting in the change of geographic sourcing of revenues from the Netherlands to the United States.
(in thousands) |  | Fintech |  |  | net2phone- UCaaS |  |  | Traditional Communications |  |  | Total |
Three Months Ended January 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 18,497 |  |  | $ | 5,677 |  |  | $ | 265,318 |  |  | $ | 289,492 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | 31,929 |  |  |  | 31,929 |
Netherlands |  |  | — |  |  |  | — |  |  |  | 5 |  |  |  | 5 |
Other |  |  | — |  |  |  | 5,061 |  |  |  | 13,279 |  |  |  | 18,340 |
Total outside the United States |  |  | — |  |  |  | 5,061 |  |  |  | 45,213 |  |  |  | 50,274 |
Total |  | $ | 18,497 |  |  | $ | 10,738 |  |  | $ | 310,531 |  |  | $ | 339,766 |
(in thousands) |  | Fintech |  |  | net2phone- UCaaS |  |  | Traditional Communications |  |  | Total |
Three Months Ended January 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 9,741 |  |  | $ | 3,695 |  |  | $ | 206,129 |  |  | $ | 219,565 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | 3 |  |  |  | 36,151 |  |  |  | 36,154 |
Netherlands |  |  | — |  |  |  | — |  |  |  | 49,692 |  |  |  | 49,692 |
Other |  |  | — |  |  |  | 4,217 |  |  |  | 14,262 |  |  |  | 18,479 |
Total outside the United States |  |  | — |  |  |  | 4,220 |  |  |  | 100,105 |  |  |  | 104,325 |
Total |  | $ | 9,741 |  |  | $ | 7,915 |  |  | $ | 306,234 |  |  | $ | 323,890 |
(in thousands) |  | Fintech |  |  | net2phone- UCaaS |  |  | Traditional Communications |  |  | Total |
Six Months Ended January 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 38,585 |  |  | $ | 10,758 |  |  | $ | 535,949 |  |  | $ | 585,292 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | 61,350 |  |  |  | 61,350 |
Netherlands |  |  | — |  |  |  | — |  |  |  | 7 |  |  |  | 7 |
Other |  |  | — |  |  |  | 9,608 |  |  |  | 26,934 |  |  |  | 36,542 |
Total outside the United States |  |  | — |  |  |  | 9,608 |  |  |  | 88,291 |  |  |  | 97,899 |
Total |  | $ | 38,585 |  |  | $ | 20,366 |  |  | $ | 624,240 |  |  | $ | 683,191 |
(in thousands) |  | Fintech |  |  | net2phone- UCaaS |  |  | Traditional Communications |  |  | Total |
Six Months Ended January 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 19,298 |  |  | $ | 6,967 |  |  | $ | 420,442 |  |  | $ | 446,707 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | 7 |  |  |  | 71,943 |  |  |  | 71,950 |
Netherlands |  |  | — |  |  |  | — |  |  |  | 104,634 |  |  |  | 104,634 |
Other |  |  | — |  |  |  | 8,148 |  |  |  | 32,650 |  |  |  | 40,798 |
Total outside the United States |  |  | — |  |  |  | 8,155 |  |  |  | 209,227 |  |  |  | 217,382 |
Total |  | $ | 19,298 |  |  | $ | 15,122 |  |  | $ | 629,669 |  |  | $ | 664,089 |
Remaining Performance Obligations The Company does not have any significant revenue from performance obligations satisfied or partially satisfied in previous reporting periods. The Company’s remaining performance obligations at January 31, 2021 and July 31, 2020 had an original expected duration of one year or less. Accounts Receivable and Contract Balances The timing of revenue recognition may differ from the time of billing to the Company’s customers. Trade accounts receivable in the Company’s consolidated balance sheets represent unconditional rights to consideration. An entity records a contract asset when revenue is recognized in advance of the entity’s right to bill and receive consideration. The Company has not identified any contract assets. Contract liabilities arise when the Company receives consideration or bills its customers prior to providing the goods or services promised in the contract. The primary component of the Company’s contract liability balance is payments received for prepaid BOSS Revolution Calling. Contract liabilities are recognized as revenue when services are provided to the customer. The contract liability balances are presented in the Company’s consolidated balance sheets as “Deferred revenue”. The following table presents information about the Company’s contract liability balance:
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period |  | $ | 22,818 |  |  | $ | 24,957 |  |  | $ | 26,451 |  |  | $ | 35,146 |
Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes as an asset its incremental costs of obtaining a contract with a customer that it expects to recover. The Company charges its direct costs to fulfill contracts to expense as incurred. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to acquire customers. The Company applies the practical expedient whereby the Company primarily charges these costs to expense when incurred because the amortization period would be one year or less for the asset that would have been recognized from deferring these costs. For net2phone-UCaaS sales, employees and third parties receive commissions on sales to end users. The Company amortizes the deferred costs over the expected customer relationship period when it is expected to exceed one year. The Company’s deferred customer contract acquisition costs were as follows:
|  | January 31, 2021 |  |  | July 31, 2020 |
|  | (in thousands) |
Deferred customer contract acquisition costs included in “Other current assets” |  | $ | 3,066 |  |  | $ | 2,350 |
Deferred customer contract acquisition costs included in “Other assets” |  |  | 2,946 |  |  |  | 2,384 |
Total |  | $ | 6,012 |  |  | $ | 4,734 |
The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows:
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
|  | (in thousands) |
Amortization of deferred customer contract acquisition costs |  | $ | 864 |  |  | $ | 615 |  |  | $ | 1,631 |  |  | $ | 1,166 |

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 13 -Subparagraph (b)(2) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 50 -Paragraph 12 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045 + Details
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