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Revenue Recognition
 6 Months Ended
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:

  

                 
  

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:

  

                          
(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:

  

                 
  

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:

  

           
  

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:

   

                 
  

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