Revenue Recognition

6 Months Ended

Jan. 31, 2022

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 January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
	(in thousands)
BOSS Revolution Money Transfer	$	12,462	$	13,280	$	24,958	$	28,438
National Retail Solutions		10,620		5,218		20,692		10,147
Total Fintech		23,082		18,498		45,650		38,585
net2phone-UCaaS		13,535		10,866		26,448		20,568
Mobile Top-Up		116,246		96,562		244,731		192,397
BOSS Revolution Calling		99,951		113,903		205,920		231,253
Carrier Services		73,117		87,155		162,312		174,928
Other		11,127		12,782		22,080		25,460
Total Traditional Communications		300,441		310,402		635,043		624,038
Total	$	337,058	$	339,766	$	707,141	$	683,191

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location. On February 1, 2021, the Company changed the geographic sourcing of certain revenues from the United States to the United Kingdom.

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Three Months Ended January 31, 2022
United States	$	23,082	$	7,157	$	210,694	$	240,933
Outside the United States:
United Kingdom		—		—		77,894		77,894
Other		—		6,378		11,853		18,231
Total outside the United States		—		6,378		89,747		96,125
Total	$	23,082	$	13,535	$	300,441	$	337,058

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Three Months Ended January 31, 2021
United States	$	18,498	$	5,680	$	265,315	$	289,493
Outside the United States:
United Kingdom		—		—		31,929		31,929
Other		—		5,186		13,158		18,344
Total outside the United States		—		5,186		45,087		50,273
Total	$	18,498	$	10,866	$	310,402	$	339,766

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Six Months Ended January 31, 2022
United States	$	45,650	$	13,981	$	449,386	$	509,017
Outside the United States:
United Kingdom		—		—		159,663		159,663
Other		—		12,467		25,994		38,461
Total outside the United States		—		12,467		185,657		198,124
Total	$	45,650	$	26,448	$	635,043	$	707,141

(in thousands)	Fintech		net2phone-UCaaS		Traditional Communications		Total
Six Months Ended January 31, 2021
United States	$	38,585	$	10,769	$	535,938	$	585,292
Outside the United States:
United Kingdom		—		—		61,350		61,350
Other		—		9,799		26,750		36,549
Total outside the United States		—		9,799		88,100		97,899
Total	$	38,585	$	20,568	$	624,038	$	683,191

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 as of January 31, 2022 and July 31, 2021 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. 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 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:

	Three Months Ended January 31,				Six Months Ended January 31,
	2022		2021		2022		2021
	(in thousands)
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period	$	20,152	$	22,818	$	24,378	$	26,451

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 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 incremental costs of obtaining a contract with a customer are sales commissions paid to employees and third parties on sales to end users. 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, 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 deferred customer contract acquisition costs were as follows:

	January 31, 2022		July 31, 2021
	(in thousands)
Deferred customer contract acquisition costs included in “Other current assets”	$	3,730	$	3,460
Deferred customer contract acquisition costs included in “Other assets”		3,346		3,151
Total	$	7,076	$	6,611

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,
	2022		2021		2022		2021
	(in thousands)
Amortization of deferred customer contract acquisition costs	$	1,030	$	864	$	2,042	$	1,631