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Revenue Recognition
 3 Months Ended
Oct. 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’ offerings 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, and IDT Global. IDT Digital Payments and BOSS Revolution 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 
  

Three Months Ended
October 31,

 
   2024   2023 
   (in thousands) 
National Retail Solutions  $30,362   $23,995 
BOSS Money   33,693    24,239 
Other   3,377    2,324 
Total Fintech   37,070    26,563 
           
net2phone   21,620    19,927 
IDT Digital Payments   105,119    100,038 
BOSS Revolution   56,842    71,170 
IDT Global   52,375    52,034 
Other   6,178    7,478 
           
Total Traditional Communications   220,514    230,720 
Total  $309,566   $301,205 

 

 

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 October 31, 2024                         
United States  $30,362   $35,889   $12,293   $165,221   $243,765 
Outside the United States:                         
United Kingdom   —    —    —    47,957    47,957 
Other   —    1,181    9,327    7,336    17,844 
                          
Total outside the United States   —    1,181    9,327    55,293    65,801 
                          
Total  $30,362   $37,070   $21,620   $220,514   $309,566 

 

(in thousands)  National Retail Solutions   Fintech   net2phone   Traditional Communications   Total 
Three Months Ended October 31, 2023                         
United States  $23,995   $25,834   $10,688   $163,068   $223,585 
Outside the United States:                         
United Kingdom   —    —    —    58,843    58,843 
Other   —    729    9,239    8,809    18,777 
                          
Total outside the United States   —    729    9,239    67,652    77,620 
                          
Total  $23,995   $26,563   $19,927   $230,720   $301,205 

 

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 October 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 October 31:               
2025  $6,920   $39,399   $46,319 
2026   5,743    19,095    24,838 
Thereafter   5,545    7,284    12,829 
                
Total  $18,208   $65,778   $83,986 

 

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. 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

 
  

Three Months Ended
October 31,

 
  

2024

  

2023

 
   (in thousands) 
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period  $13,600   $16,089 

 

 

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.

 

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:

 

   October 31,
2024		   July 31,
2024		 
   (in thousands) 
Deferred customer contract acquisition costs included in “Other current assets”  $4,948   $4,823 
Deferred customer contract acquisition costs included in “Other assets”   4,549    4,276 
           
Total  $9,497   $9,099 

 

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

 

   2024   2023 
  

Three Months Ended
October 31,

 
   2024   2023 
   (in thousands) 
Amortization of deferred customer contract acquisition costs  $1,498   $1,215