Revenues from Contracts with Customers

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenues from Contracts with Customers

Revenues from Contracts with Customers

The following table presents Newmark’s total revenues separately for its revenues from contracts with customers and other sources of revenues (in thousands):

	Three Months Ended March 31,
	2022		2021
Revenues from contracts with customers:
Leasing and other commissions	$	198,952	$	147,433
Investment sales	152,113		101,545
Mortgage brokerage and debt placement	46,290		19,858
Management services	185,061		146,567
Total	582,416		415,403
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	29,472		28,716
Loan originations related fees and sales premiums, net	18,300		18,677
Servicing fees and other	48,059		41,184
Total	$	678,247	$	503,980

(1)Although these items have customers under contract, they were recorded as other sources of revenue as they were excluded from the scope of ASU No. 2014-9.

Disaggregation of revenues

Newmark’s chief operating decision-maker, regardless of geographic location, evaluates the operating results, including revenues, of Newmark as total real estate services (see Note 3 — “Summary of Significant Accounting Policies” for further discussion).

Contract balances

The timing of Newmark’s revenue recognition may differ from the timing of payment by its customers. Newmark records a receivable when revenue is recognized prior to payment and Newmark has an unconditional right to payment. Alternatively, when payment precedes the provision of the related services, Newmark records deferred revenue until the performance obligations are satisfied.

Newmark’s deferred revenue primarily relates to customers paying in advance or billed in advance where the performance obligation has not yet been satisfied. Deferred revenue is recorded as a contract liability. Deferred revenue at March 31, 2022 and December 31, 2021 was $4.7 million and $3.7 million, respectively. During the three months ended March 31, 2022 and 2021, Newmark recognized revenue of $0.9 million and $1.3 million, respectively, that was recorded as deferred revenue at the beginning of the period.

For Knotel and Deskeo, the aggregate amount of the transaction price allocated to the Company’s remaining performance obligations that represent contracted customer revenues that have not yet been recognized as revenue as of March 31, 2022, that will be recognized as revenue in future periods over the life of the customer contracts, in accordance with ASC 606, is approximately $196.8 million. Over half of the remaining performance obligation as of March 31, 2022 is scheduled to be recognized as revenue within the next twelve months, with the remaining to be recognized over the remaining life of the customer contracts, which extends through 2030.

Approximate future cash flows to be received over the next five years at March 31, 2022 are as follows (in thousands):

2022	$	85,852
2023	68,940
2024	27,278
2025	8,647
2026	3,891
Thereafter	2,190
Total	$	196,798