Revenues from Contracts with Customers

6 Months Ended

Jun. 30, 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 June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues from contracts with customers:
Leasing and other commissions	$	212,825	$	184,346	$	411,778	$	331,779
Investment sales	209,053		142,233		361,167		243,778
Mortgage brokerage and debt placement	50,326		42,522		96,615		62,380
Management services	181,329		179,414		366,389		325,980
Total	653,533		548,515		1,235,949		963,917
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	31,499		25,815		60,971		54,532
Loan originations related fees and sales premiums, net	17,963		15,446		36,264		34,123
Servicing fees and other	52,356		40,095		100,415		81,279
Total	$	755,351	$	629,871	$	1,433,599	$	1,133,851

(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 June 30, 2022 and December 31, 2021 was $3.3 million and $3.7 million, respectively. During the six months ended June 30, 2022 and 2021, Newmark recognized revenue of $1.8 million and $1.5 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 June 30, 2022, that will be recognized as revenue in future periods over the life of the customer contracts, in accordance with ASC 606, is approximately $199.5 million. Over half of the remaining performance obligation as of June 30, 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 June 30, 2022 are as follows (in thousands):

2022	$	61,579
2023	80,626
2024	35,454
2025	12,119
2026	5,116
Thereafter	4,640
Total	$	199,534