XML 21 R11.htm IDEA: XBRL DOCUMENT v3.24.0.1
Revenue Recognition
 6 Months Ended
Jan. 31, 2024
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’s 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-consumer and through distributors and retailers.

 

Disaggregated Revenues

 

The following table shows the Company’s revenues disaggregated by business segment and service offered to customers:

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31,

  

Six Months Ended

January 31,

 
   2024   2023   2024   2023 
   (in thousands) 
National Retail Solutions  $25,223   $19,822   $49,217   $39,135 
                     
BOSS Money   25,039    17,649    49,278    35,203 
Other   2,948    2,672    5,272    5,005 
                     
Total Fintech   27,987    20,321    54,550    40,208 
                     
net2phone   20,353    17,794    40,280    34,744 
                     
IDT Digital Payments   99,620    106,127    199,606    215,177 
BOSS Revolution Calling   66,703    82,831    137,925    169,083 
IDT Global   48,741    58,631    100,775    120,242 
Other   7,471    8,410    14,949    17,163 
                     
Total Traditional Communications   222,535    255,999    453,255    521,665 
                     
Total  $296,098   $313,936   $597,302   $635,752 

 

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location:

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Three Months Ended January 31, 2024                         
United States  $25,223   $26,901   $10,700   $163,774   $226,598 
Outside the United States:                         
United Kingdom   —    —    —    50,390    50,390 
Other   —    1,086    9,653    8,371    19,110 
                          
Total outside the United States   —    1,086    9,653    58,761    69,500 
                          
Total  $25,223   $27,987   $20,353   $222,535   $296,098 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Three Months Ended January 31, 2023                         
United States  $19,822   $19,612   $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  $19,822   $20,321   $17,794   $255,999   $313,936 

 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Six Months Ended January 31, 2024                         
United States  $49,217   $52,734   $21,388   $326,842   $450,181 
Outside the United States:                         
United Kingdom   —    —    —    109,232    109,232 
Other   —    1,816    18,892    17,181    37,889 
                          
Total outside the United States   —    1,816    18,892    126,413    147,121 
                          
Total  $49,217   $54,550   $40,280   $453,255   $597,302 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Six Months Ended January 31, 2023                         
United States  $39,135   $38,867   $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  $39,135   $40,208   $34,744   $521,665   $635,752 

 

Remaining Performance Obligations

 

The following table includes revenue by business segment expected to be recognized in the future from performance obligations that were unsatisfied or partially unsatisfied as of January 31, 2024. The table excludes contracts that had an original expected duration of one year or less.

 

(in thousands)  National Retail Solutions   net2phone   Total 
Twelve-month period ending January 31:               
2025  $5,896   $38,854   $44,750 
2026   4,940    18,769    23,709 
Thereafter   4,838    6,213    11,051 
                
Total  $15,674   $63,836   $79,510 

 

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 currently 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:

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31,

  

Six Months Ended

January 31,

 
   2024   2023   2024   2023 
   (in thousands) 
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period  $15,803   $17,072   $19,605   $21,205 

 

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:

 

  

January 31,

2024

  

July 31,

2023

 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $4,197   $4,460 
Deferred customer contract acquisition costs included in “Other assets”   3,871    3,734 
           
Total  $8,068   $8,194 

 

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

 

   2024   2023   2024   2023 
  

Three Months Ended

January 31,

  

Six Months Ended

January 31,

 
   2024   2023   2024   2023 
   (in thousands) 
Amortization of deferred customer contract acquisition costs  $1,194   $1,228   $2,409   $2,405