Revenue from contracts with customers

6 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from contracts with customers

Revenue from contracts with customers

The Company provides fleet and mobile asset management solutions. The principal revenue streams are (1) Subscription and (2) Hardware and other. Subscription revenue is recognized over time and hardware and other revenue is recognized at a point-in-time.

To provide services to customers, a device which collects and transmits information collected from the vehicle or other asset is required. Fleet customers may also obtain other items of hardware, virtually all of which are functionally-dependent on the device. Some customers obtain control of the device and other hardware (where legal title transfers to the customer), while other customers do not (where legal title remains with the Company). A contract arises on the acceptance of a customer’s purchase order, which is typically executed in writing.

Contract liabilities

When customers are invoiced in advance for subscription services that will be provided over periods of more than one month, or pay in advance of service periods of more than one month, deferred revenue liabilities are recorded. Deferred revenue as of March 31, 2021 and September 30, 2021 was $5.8 million and $5.6 million, respectively. During the quarter ended September 30, 2020 and September 30, 2021, revenue of $0.6 million and $1.2 million, respectively, was recognized which was included in the deferred revenue balances at the beginning of each such quarter. During the six months ended September 30, 2020 and September 30, 2021, revenue of $1.7 million and $2.4 million, respectively, was recognized which was included in the deferred revenue balances at the beginning of each such financial year.

Contract acquisition costs

Commissions payable to sales employees and external third parties which are incurred to acquire contracts are capitalized and amortized, unless the amortization period is 12 months or less, in which instance they are expensed immediately. Deferred commissions were $3.7 million and $3.6 million as of March 31, 2021 and September 30, 2021, respectively, and are included in Other assets on the Condensed Consolidated Balance Sheets.

The following is a summary of the amortization expense recognized (in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2020		2021		2020		2021
Amortization recognized during the period:	$	(782)	$	(857)	$	(1,475)	$	(1,767)
–Cost of revenue (external commissions)	(563)		(616)		(1,048)		(1,291)
–Sales and marketing (internal commissions)	(219)		(241)		(427)		(476)