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Revenue Recognition
 9 Months Ended
Apr. 30, 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 IDT Digital Payments, BOSS Revolution Calling, and IDT Global. IDT Digital Payments 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:

 

   2023   2022   2023   2022 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
   2023   2022   2023   2022 
   (in thousands) 
BOSS Money  $19,441   $15,084   $54,644   $39,207 
Other   2,346    2,131    7,351    6,837 
Total Fintech   21,787    17,215    61,995    46,044 
National Retail Solutions   18,073    11,383    57,208    32,075 
net2phone   18,392    15,555    53,136    42,003 
IDT Digital Payments   101,030    115,864    316,207    360,594 
BOSS Revolution Calling   77,646    91,768    246,729    297,688 
IDT Global   54,473    67,094    174,715    229,407 
Other   7,894    9,474    25,057    27,683 
Total Traditional Communications   241,043    284,200    762,708    915,372 
Total  $299,295   $328,353   $935,047   $1,035,494 

 

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 April 30, 2023                    
United States  $21,124   $18,073   $9,571   $166,854   $215,622 
Outside the United States:                         
United Kingdom   —    —    —    64,415    64,415 
Other   663    —    8,821    9,774    19,258 
Total outside the United States   663    —    8,821    74,189    83,673 
Total  $21,787   $18,073   $18,392   $    241,043   $299,295 

 

 

                          
(in thousands)  Fintech   National Retail Solutions   net2phone   Traditional Communications   Total 
Three Months Ended April 30, 2022                    
United States  $16,716   $11,383   $7,732   $198,174   $234,005 
Outside the United States:                         
United Kingdom   —    —    —    74,567    74,567 
Other   499    —    7,823    11,459    19,781 
Total outside the United States   499    —    7,823    86,026    94,348 
Total  $17,215   $11,383   $15,555   $     284,200   $328,353 

 

                          
(in thousands)  Fintech   National Retail Solutions   net2phone   Traditional Communications   Total 
Nine Months Ended April 30, 2023                    
United States  $59,991   $57,208   $27,888   $      528,116   $673,203 
Outside the United States:                         
United Kingdom   —    —    —    202,355    202,355 
Other   2,004    —    25,248    32,237    59,489 
Total outside the United States   2,004    —    25,248    234,592    261,844 
Total  $61,995   $57,208   $53,136   $762,708   $935,047 

 

                          
(in thousands)  Fintech   National Retail Solutions   net2phone   Traditional Communications   Total 
Nine Months Ended April 30, 2022                    
United States  $44,683   $32,075   $21,713   $644,166   $742,637 
Outside the United States:                         
United Kingdom   —    —    —    233,647    233,647 
Other   1,361    —    20,290    37,559    59,210 
Total outside the United States   1,361    —    20,290    271,206    292,857 
Total  $46,044   $32,075   $42,003   $915,372   $1,035,494 

 

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 April 30, 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:

 

  

2023

  

2022

  

2023

  

2022

 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
  

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  $16,772   $18,751   $21,890   $25,437 

 

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’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 were 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:

 

         
  

April 30,

2023

  

July 31,

2022

 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $4,343   $4,085 
Deferred customer contract acquisition costs included in “Other assets”   3,542    3,469 
Total  $7,885   $7,554 

  

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

 

  

2023

  

2022

  

2023

  

2022

 
  

Three Months Ended

April 30,

  

Nine Months Ended

April 30,

 
  

2023

  

2022

  

2023

  

2022

 
   (in thousands) 
Amortization of deferred customer contract acquisition costs  $1,226   $1,121   $3,631   $3,163