Revenue Recognition

9 Months Ended

Apr. 30, 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 Mobile Top-Up, BOSS Revolution Calling, and Carrier Services. Mobile Top-Up 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:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2020		2021		2020
	(in thousands)
BOSS Revolution Money Transfer	$	10,259	$	11,817	$	38,697	$	26,679
National Retail Solutions		6,385		2,867		16,532		7,303
Total Fintech		16,644		14,684		55,229		33,982
net2phone-UCaaS		11,255		8,103		31,621		23,225
Mobile Top-Up		132,603		85,139		325,001		237,808
BOSS Revolution Calling		111,412		112,536		342,665		343,731
Carrier Services		88,643		87,435		263,571		302,613
Other		13,274		13,439		38,935		44,066
Total Traditional Communications		345,932		298,549		970,172		928,218
Total	$	373,831	$	321,336	$	1,057,022	$	985,425

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 April 30, 2021
United States	$	16,644	$	5,839	$	240,442	$	262,925
Outside the United States:
United Kingdom		—		—		92,800		92,800
Netherlands		—		—		7		7
Other		—		5,416		12,683		18,099
Total outside the United States		—		5,416		105,490		110,906
Total	$	16,644	$	11,255	$	345,932	$	373,831

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Three Months Ended April 30, 2020
United States	$	14,684	$	3,988	$	205,982	$	224,654
Outside the United States:
United Kingdom		—		3		26,360		26,363
Netherlands		—		—		52,237		52,237
Other		—		4,112		13,970		18,082
Total outside the United States		—		4,115		92,567		96,682
Total	$	14,684	$	8,103	$	298,549	$	321,336

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Nine Months Ended April 30, 2021
United States	$	55,229	$	16,597	$	776,391	$	848,217
Outside the United States:
United Kingdom		—		—		154,150		154,150
Netherlands		—		—		14		14
Other		—		15,024		39,617		54,641
Total outside the United States		—		15,024		193,781		208,805
Total	$	55,229	$	31,621	$	970,172	$	1,057,022

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Nine Months Ended April 30, 2020
United States	$	33,982	$	10,954	$	626,424	$	671,360
Outside the United States:
United Kingdom		—		10		98,304		98,314
Netherlands		—		—		156,870		156,870
Other		—		12,261		46,620		58,881
Total outside the United States		—		12,271		301,794		314,065
Total	$	33,982	$	23,225	$	928,218	$	985,425

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, 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 April 30,				Nine Months Ended April 30,
	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	$	21,926	$	23,572	$	27,665	$	31,288

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:

	April 30, 2021		July 31, 2020
	(in thousands)
Deferred customer contract acquisition costs included in “Other current assets”	$	3,493	$	2,350
Deferred customer contract acquisition costs included in “Other assets”		3,206		2,384
Total	$	6,699	$	4,734

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

	Three Months Ended April 30,				Nine Months Ended April 30,
	2021		2020		2021		2020
	(in thousands)
Amortization of deferred customer contract acquisition costs	$	950	$	616	$	2,581	$	1,781