Revenue Recognition

3 Months Ended

Oct. 31, 2020

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 Revolution Money Transfer, NRS, and net2phone-UCaaS are technology-driven, synergistic businesses that leverage the Company’s core assets, and revenue is primarily recognized at a point in time, and in some cases (mainly net2phone-UCaaS) is 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 BOSS Revolution Calling, Mobile Top-Up, and Carrier Services. BOSS Revolution Calling and Mobile Top-Up 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 October 31,
	2020		2019
	(in thousands)
BOSS Revolution Money Transfer	$	15,157	$	7,202
National Retail Solutions		4,930		2,355
Total Fintech		20,087		9,557
net2phone-UCaaS		9,628		7,207
Mobile Top-Up		95,785		76,815
BOSS Revolution Calling		116,231		116,242
Carrier Services		87,775		113,517
Other		13,919		16,862
Total Traditional Communications		313,710		323,436
Total	$	343,425	$	340,200

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On July 31, 2020, the Company restructured certain operations for tax purposes resulting in the change of geographic sourcing of revenues from the Netherlands to the United States.

(in thousands)	Fintech		net2phone- UCaaS		Traditional Communications		Total
Three Months Ended October 31, 2020
United States	$	20,087	$	5,082	$	270,631	$	295,800
Outside the United States:
United Kingdom		—		—		29,421		29,421
Netherlands		—		—		2		2
Other		—		4,546		13,656		18,202
Total outside the United States		—		4,546		43,079		47,625
Total	$	20,087	$	9,628	$	313,710	$	343,425

(in thousands)	Fintech		net2phone- UCaaS		Traditional Communications		Total
Three Months Ended October 31, 2019
United States	$	9,557	$	3,272	$	214,313	$	227,142
Outside the United States:
United Kingdom		—		4		35,793		35,797
Netherlands		—		—		54,942		54,942
Other		—		3,931		18,388		22,319
Total outside the United States		—		3,935		109,123		113,058
Total	$	9,557	$	7,207	$	323,436	$	340,200

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 October 31, 2020 and July 31, 2020 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. An entity records a contract asset when revenue is recognized in advance of the entity’s 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 primary component of the Company’s contract liability balance is 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 October 31,
	2020		2019
	(in thousands)
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period	$	23,460	$	26,336

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 charges its direct costs to fulfill contracts to expense as incurred. The Company’s incremental costs of obtaining a contract with a customer are sales commissions paid to acquire customers. The Company applies the practical expedient whereby the Company primarily charges these costs to expense when incurred because the amortization period would be one year or less for the asset that would have been recognized from deferring these costs. For net2phone-UCaaS sales, employees and third parties receive commissions on sales to end users. The Company amortizes the deferred costs over the expected customer relationship period when it is expected to exceed one year.

The Company’s deferred customer contract acquisition costs were as follows:

	October 31, 2020		July 31, 2020
	(in thousands)
Deferred customer contract acquisition costs included in “Other current assets”	$	2,734	$	2,350
Deferred customer contract acquisition costs included in “Other assets”		2,581		2,384
Total	$	5,315	$	4,734

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

	Three Months Ended October 31,
	2020		2019
	(in thousands)
Amortization of deferred customer contract acquisition costs	$	767	$	551