Revenue Recognition

6 Months Ended

Jan. 31, 2021

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 January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(in thousands)
BOSS Revolution Money Transfer	$	13,280	$	7,660	$	28,438	$	14,861
National Retail Solutions		5,217		2,081		10,147		4,437
Total Fintech		18,497		9,741		38,585		19,298
net2phone-UCaaS		10,738		7,915		20,366		15,122
Mobile Top-Up		96,562		75,836		192,397		152,669
BOSS Revolution Calling		113,903		113,861		231,253		231,195
Carrier Services		87,155		101,659		174,928		215,176
Other		12,911		14,878		25,662		30,629
Total Traditional Communications		310,531		306,234		624,240		629,669
Total	$	339,766	$	323,890	$	683,191	$	664,089

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 January 31, 2021
United States	$	18,497	$	5,677	$	265,318	$	289,492
Outside the United States:
United Kingdom		—		—		31,929		31,929
Netherlands		—		—		5		5
Other		—		5,061		13,279		18,340
Total outside the United States		—		5,061		45,213		50,274
Total	$	18,497	$	10,738	$	310,531	$	339,766

(in thousands)	Fintech		net2phone- UCaaS		Traditional Communications		Total
Three Months Ended January 31, 2020
United States	$	9,741	$	3,695	$	206,129	$	219,565
Outside the United States:
United Kingdom		—		3		36,151		36,154
Netherlands		—		—		49,692		49,692
Other		—		4,217		14,262		18,479
Total outside the United States		—		4,220		100,105		104,325
Total	$	9,741	$	7,915	$	306,234	$	323,890

(in thousands)	Fintech		net2phone- UCaaS		Traditional Communications		Total
Six Months Ended January 31, 2021
United States	$	38,585	$	10,758	$	535,949	$	585,292
Outside the United States:
United Kingdom		—		—		61,350		61,350
Netherlands		—		—		7		7
Other		—		9,608		26,934		36,542
Total outside the United States		—		9,608		88,291		97,899
Total	$	38,585	$	20,366	$	624,240	$	683,191

(in thousands)	Fintech		net2phone- UCaaS		Traditional Communications		Total
Six Months Ended January 31, 2020
United States	$	19,298	$	6,967	$	420,442	$	446,707
Outside the United States:
United Kingdom		—		7		71,943		71,950
Netherlands		—		—		104,634		104,634
Other		—		8,148		32,650		40,798
Total outside the United States		—		8,155		209,227		217,382
Total	$	19,298	$	15,122	$	629,669	$	664,089

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, 2021 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 January 31,				Six Months Ended January 31,
	2021		2020		2021		2020
	(in thousands)
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period	$	22,818	$	24,957	$	26,451	$	35,146

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:

	January 31, 2021		July 31, 2020
	(in thousands)
Deferred customer contract acquisition costs included in “Other current assets”	$	3,066	$	2,350
Deferred customer contract acquisition costs included in “Other assets”		2,946		2,384
Total	$	6,012	$	4,734

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,
	2021		2020		2021		2020
	(in thousands)
Amortization of deferred customer contract acquisition costs	$	864	$	615	$	1,631	$	1,166