REVENUE |
REVENUE: The following table disaggregates revenue from contracts by recurring fees and implementation services and other, which the Company believes depicts the nature, amount and timing of its revenue: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Fiscal Year Ended June 30, | | | | | | 2024 | | 2023 | | 2022 | Recurring fees | | | | | $ | 587,023 | | | $ | 506,131 | | | $ | 414,677 | | Implementation services and other | | | | | 15,363 | | | 12,743 | | | 12,355 | | Recurring and other revenue | | | | | $ | 602,386 | | | $ | 518,874 | | | $ | 427,032 | |
Deferred revenue The Company recognizes deferred revenue for nonrefundable upfront fees as well as for subscription services related to certain ancillary products invoiced prior to the satisfaction of the performance obligation. The nonrefundable upfront fees related to implementation services are typically included on the client’s first invoice. Implementation fees are deferred and recognized as revenue over an estimated 24-month period to which the material right exists, which is the period the client is expected to benefit from not having to pay an additional nonrefundable implementation fee upon renewal of the service. The following table summarizes the changes in deferred revenue related to the nonrefundable upfront fees and recurring subscription services: | | | | | | | | | | | | | | | | | | | Fiscal Year Ended June 30, | | | | | | 2024 | | 2023 | Balance, beginning of period | | | | | $ | 18,697 | | | $ | 17,046 | | Deferred revenue acquired | | | | | — | | | 1,049 | | Deferral of revenue | | | | | 20,699 | | | 20,556 | | Revenue recognized | | | | | (20,040) | | | (19,883) | | Impact of foreign exchange | | | | | (38) | | | (71) | | Balance, end of period | | | | | $ | 19,318 | | | $ | 18,697 | |
Deferred revenue is recorded within deferred revenue and other long-term liabilities on the consolidated balance sheets. The Company will recognize deferred revenue of $13,601 in fiscal year 2025, $5,466 in fiscal year 2026, and $251 in fiscal year 2027.
Deferred contract costs | | | | | | | | | | | | | | | | | | | | | | | | | As of and for the Fiscal Year Ended June 30, 2024 | | Beginning Balance | | Capitalization of Costs | | Amortization | | Ending Balance | Costs to obtain a contract | $ | 93,317 | | | $ | 42,815 | | | $ | (27,549) | | | $ | 108,583 | | Costs to fulfill a contract | 123,788 | | | 64,540 | | | (36,708) | | | 151,620 | | Total | $ | 217,105 | | | $ | 107,355 | | | $ | (64,257) | | | $ | 260,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | As of and for the Fiscal Year Ended June 30, 2023 | | Beginning Balance | | Capitalization of Costs | | Amortization | | Ending Balance | Costs to obtain a contract | $ | 72,342 | | | $ | 41,325 | | | $ | (20,350) | | | $ | 93,317 | | Costs to fulfill a contract | 91,132 | | | 58,746 | | | (26,090) | | | 123,788 | | Total | $ | 163,474 | | | $ | 100,071 | | | $ | (46,440) | | | $ | 217,105 | |
The Company capitalizes costs associated with obtaining and fulfilling revenue contracts. Deferred contract costs are recorded within deferred contract costs and long-term deferred contract costs on the consolidated balance sheets and amortized over the expected period of benefit of six years, which the Company has determined to be the estimated average client life. Amortization of costs to fulfill a contract and costs to obtain a contract are recorded in cost of revenues and sales and marketing expenses in the consolidated statements of operations, respectively. The Company regularly reviews its deferred costs for impairment and did not recognize an impairment loss during any period presented.
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