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Revenue Recognition | 6 Months Ended
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Jan. 31, 2023
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 Money, NRS, and net2phone are technology-driven, synergistic businesses that leverage the Company’s core assets. BOSS Money and NRS’ revenues are primarily recognized at a point in time, and net2phone’s revenue is mainly 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 IDT Global. 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: Schedule of Revenues Disaggregated by Business Segment and Service Offered to Customers
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
BOSS Money |  | $ | 17,649 |  |  | $ | 12,029 |  |  | $ | 35,203 |  |  | $ | 24,123 |
Other |  |  | 2,672 |  |  |  | 2,570 |  |  |  | 5,005 |  |  |  | 4,706 |
Total Fintech |  |  | 20,321 |  |  |  | 14,599 |  |  |  | 40,208 |  |  |  | 28,829 |
National Retail Solutions |  |  | 19,822 |  |  |  | 10,620 |  |  |  | 39,135 |  |  |  | 20,692 |
net2phone |  |  | 17,794 |  |  |  | 13,535 |  |  |  | 34,744 |  |  |  | 26,448 |
Mobile Top-Up |  |  | 106,127 |  |  |  | 116,246 |  |  |  | 215,176 |  |  |  | 244,731 |
BOSS Revolution Calling |  |  | 82,831 |  |  |  | 99,951 |  |  |  | 169,083 |  |  |  | 205,920 |
IDT Global |  |  | 58,631 |  |  |  | 73,117 |  |  |  | 120,242 |  |  |  | 162,312 |
Other |  |  | 8,410 |  |  |  | 8,990 |  |  |  | 17,164 |  |  |  | 18,209 |
Total Traditional Communications |  |  | 255,999 |  |  |  | 298,304 |  |  |  | 521,665 |  |  |  | 631,172 |
Total |  | $ | 313,936 |  |  | $ | 337,058 |  |  | $ | 635,752 |  |  | $ | 707,141 |
The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location: Schedule of Revenues Disaggregated by Geographic Region
(in thousands) |  | Fintech |  |  | National Retail Solutions |  |  | net2phone |  |  | Traditional Communications |  |  | Total |
Three Months Ended January 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 19,612 |  |  | $ | 19,822 |  |  | $ | 9,514 |  |  | $ | 176,424 |  |  | $ | 225,372 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 69,000 |  |  |  | 69,000 |
Other |  |  | 709 |  |  |  | — |  |  |  | 8,280 |  |  |  | 10,575 |  |  |  | 19,564 |
Total outside the United States |  |  | 709 |  |  |  | — |  |  |  | 8,280 |  |  |  | 79,575 |  |  |  | 88,564 |
Total |  | $ | 20,321 |  |  | $ | 19,822 |  |  | $ | 17,794 |  |  | $ | 255,999 |  |  | $ | 313,936 |
(in thousands) |  | Fintech |  |  | National Retail Solutions |  |  | net2phone |  |  | Traditional Communications |  |  | Total |
Three Months Ended January 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 14,166 |  |  | $ | 10,620 |  |  | $ | 7,157 |  |  | $ | 209,065 |  |  | $ | 241,008 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 77,337 |  |  |  | 77,337 |
Other |  |  | 433 |  |  |  | — |  |  |  | 6,378 |  |  |  | 11,902 |  |  |  | 18,713 |
Total outside the United States |  |  | 433 |  |  |  | — |  |  |  | 6,378 |  |  |  | 89,239 |  |  |  | 96,050 |
Total |  | $ | 14,599 |  |  | $ | 10,620 |  |  | $ | 13,535 |  |  | $ | 298,304 |  |  | $ | 337,058 |
(in thousands) |  | Fintech |  |  | National Retail Solutions |  |  | net2phone |  |  | Traditional Communications |  |  | Total |
Six Months Ended January 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 38,867 |  |  | $ | 39,135 |  |  | $ | 18,316 |  |  | $ | 361,262 |  |  | $ | 457,580 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 137,940 |  |  |  | 137,940 |
Other |  |  | 1,341 |  |  |  | — |  |  |  | 16,428 |  |  |  | 22,463 |  |  |  | 40,232 |
Total outside the United States |  |  | 1,341 |  |  |  | — |  |  |  | 16,428 |  |  |  | 160,403 |  |  |  | 178,172 |
Total |  | $ | 40,208 |  |  | $ | 39,135 |  |  | $ | 34,744 |  |  | $ | 521,665 |  |  | $ | 635,752 |
(in thousands) |  | Fintech |  |  | National Retail Solutions |  |  | net2phone |  |  | Traditional Communications |  |  | Total |
Six Months Ended January 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 27,966 |  |  | $ | 20,692 |  |  | $ | 13,981 |  |  | $ | 445,992 |  |  | $ | 508,631 |
Outside the United States: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United Kingdom |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 159,080 |  |  |  | 159,080 |
Other |  |  | 863 |  |  |  | — |  |  |  | 12,467 |  |  |  | 26,100 |  |  |  | 39,430 |
Total outside the United States |  |  | 863 |  |  |  | — |  |  |  | 12,467 |  |  |  | 185,180 |  |  |  | 198,510 |
Total |  | $ | 28,829 |  |  | $ | 20,692 |  |  | $ | 26,448 |  |  | $ | 631,172 |  |  | $ | 707,141 |
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, 2023 and July 31, 2022 primarily 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. The Company would record a contract asset when revenue is recognized in advance of its 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: Schedule of Information About Contract Liabilities
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period |  | $ | 17,072 |  |  | $ | 20,152 |  |  | $ | 21,205 |  |  | $ | 24,378 |
Deferred Customer Contract Acquisition and Fulfillment Costs The Company recognizes its incremental costs of obtaining a contract with a customer that it expects to recover as an asset. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to employees and third parties on sales to end users. If the amortization period would be one year or less for the asset that would be recognized from deferring these costs, the Company applies the practical expedient whereby the Company charges these costs to expense when incurred. For net2phone sales, the Company defers these costs and amortizes them over the expected customer relationship period when it is expected to exceed one year. The Company’s costs to fulfill its contracts do not meet the criteria to be recognized as an asset, therefore these costs are charged to expense as incurred. The Company’s deferred customer contract acquisition costs were as follows: Schedule of Deferred Customer Contract Acquisition Costs
|  | January 31, 2023 |  |  | July 31, 2022 |
|  | (in thousands) |
Deferred customer contract acquisition costs included in “Other current assets” |  | $ | 4,265 |  |  | $ | 4,085 |
Deferred customer contract acquisition costs included in “Other assets” |  |  | 3,465 |  |  |  | 3,469 |
Total |  | $ | 7,730 |  |  | $ | 7,554 |
The Company’s amortization of deferred customer contract acquisition costs during the periods were as follows: Schedule of Amortization of Deferred Customer Contract Acquisition Costs
|  | Three Months Ended January 31, |  |  | Six Months Ended January 31, |
|  | 2023 |  |  | 2022 |  |  | 2023 |  |  | 2022 |
|  | (in thousands) |
Amortization of deferred customer contract acquisition costs |  | $ | 1,228 |  |  | $ | 1,030 |  |  | $ | 2,405 |  |  | $ | 2,042 |

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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 https://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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045 + Details
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