Revenue Recognition

3 Months Ended

Oct. 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 Money, NRS, and net2phone are technology-driven, synergistic businesses that leverage the Company’s core assets. BOSS Money and NRS’ revenues are primarily recognized at a point in time, and net2phone’s revenue is mainly 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 IDT Global. 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 October 31,
	2022		2021
	(in thousands)
BOSS Money	$	17,554	$	12,094
Other		2,333		2,136
Total Fintech		19,887		14,230
National Retail Solutions		19,313		10,072
net2phone		16,950		12,913
Mobile Top-Up		109,048		128,485
BOSS Revolution Calling		86,253		105,969
IDT Global		61,611		89,195
Other		8,754		9,219
Total Traditional Communications		265,666		332,868
Total	$	321,816	$	370,083

The following table shows the Company’s revenues disaggregated by geographic region, which is determined based on selling location:

(in thousands)	Fintech		National Retail Solutions		net2phone		Traditional Communications		Total
Three Months Ended October 31, 2022
United States	$	19,255	$	19,313	$	8,802	$	184,838	$	232,208
Outside the United States:
United Kingdom		—		—		—		68,940		68,940
Other		632		—		8,148		11,888		20,668
Total outside the United States		632		—		8,148		80,828		89,608
Total	$	19,887	$	19,313	$	16,950	$	265,666	$	321,816

(in thousands)	Fintech		National Retail Solutions		net2phone		Traditional Communications		Total
Three Months Ended October 31, 2021
United States	$	13,800	$	10,072	$	6,824	$	236,926	$	267,622
Outside the United States:
United Kingdom		—		—		—		81,743		81,743
Other		430		—		6,089		14,199		20,718
Total outside the United States		430		—		6,089		95,942		102,461
Total	$	14,230	$	10,072	$	12,913	$	332,868	$	370,083

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, 2022 and July 31, 2022 primarily 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 October 31,
	2022		2021
	(in thousands)
Revenue recognized in the period from amounts included in the contract liability balance at the beginning of the period	$	17,906	$	22,456

Deferred Customer Contract Acquisition and Fulfillment Costs

The Company recognizes its incremental costs of obtaining a contract with a customer that it expects to recover as an asset. 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 would be 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. For net2phone 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 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, 2022		July 31, 2022
	(in thousands)
Deferred customer contract acquisition costs included in “Other current assets”	$	4,240	$	4,085
Deferred customer contract acquisition costs included in “Other assets”		3,424		3,469
Total	$	7,664	$	7,554

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

	Three Months Ended October 31,
	2022		2021
	(in thousands)
Amortization of deferred customer contract acquisition costs	$	1,176	$	1,012