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Revenue Recognition
 3 Months Ended
Oct. 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 Mobile Top-Up, BOSS Revolution Calling, and Carrier Services. Mobile Top-Up and BOSS Revolution Calling 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

October 31,

 
  

2021

  

2020

 
   (in thousands) 
BOSS Revolution Money Transfer  $12,496   $15,157 
National Retail Solutions   10,072    4,930 
Total Fintech   22,568    20,087 
net2phone-UCaaS   12,913    9,702 
Mobile Top-Up   128,485    95,835 
BOSS Revolution Calling   105,969    117,350 
Carrier Services   89,195    87,773 
Other   10,953    12,678 
Total Traditional Communications   334,602    313,636 
Total  $370,083   $343,425 

 

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On February 1, 2021, the Company changed the geographic sourcing of certain revenues from the United States to the United Kingdom.

 

(in thousands)  Fintech   net2phone-UCaaS   Traditional Communications   Total 
Three Months Ended October 31, 2021                
United States  $22,568   $6,824   $238,692   $268,084 
Outside the United States:                    
United Kingdom   —    —    81,769    81,769 
Other   —    6,089    14,141    20,230 
Total outside the United States   —    6,089    95,910    101,999 
Total  $22,568   $12,913   $334,602   $370,083 

 

(in thousands)  Fintech   net2phone-UCaaS   Traditional Communications   Total 
Three Months Ended October 31, 2020                
United States  $20,087   $5,090   $270,623   $295,800 
Outside the United States:                    
United Kingdom   —    —    29,421    29,421 
Other   —    4,612    13,592    18,204 
Total outside the United States   —    4,612    43,013    47,625 
Total  $20,087   $9,702   $313,636   $343,425 

 

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 October 31, 2021 and July 31, 2021 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 Company’s contract liability balance is primarily 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:

 

   2021  

2020

 
  

Three Months Ended

October 31,

 
   2021  

2020

 
   (in thousands) 
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period  $22,456   $23,460 

 

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:

 

  

October 31,2021

  

July 31, 2021

 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $3,787   $3,460 
Deferred customer contract acquisition costs included in “Other assets”   3,241    3,151 
Total  $7,028   $6,611 

 

  The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows:

 

  

2021

  

2020

 
  

Three Months Ended

October 31,

 
  

2021

  

2020

 
   (in thousands) 
Amortization of deferred customer contract acquisition costs  $1,012   $767