Revenues from Contracts with Customers

12 Months Ended

Dec. 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):

	Year Ended December 31,
	2022		2021		2020
Revenues from contracts with customers:
Leasing and other commissions	831,874		$	826,942	$	513,842
Investment sales	606,416		757,744		403,971
Mortgage brokerage and debt placement	173,253		180,561		50,135
Management services	692,957		733,761		467,453
Total	2,304,500		2,499,008		1,435,401
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	109,926		136,406		194,814
Loan originations related fees and sales premiums, net	74,573		89,075		116,100
Servicing fees and other	216,528		181,954		158,683
Total	$	2,705,527	$	2,906,443	$	1,904,998

(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 December 31, 2022 and 2021 was $2.9 million and $3.7 million, respectively. During the years ended December 31, 2022 and 2021, Newmark recognized revenue of $2.5 million and $2.1 million, respectively, that was recorded as deferred revenue at the beginning of the period.

For Knotel and Deskeo, the Company’s remaining performance obligations that represent contracted customer revenues, generally from high credit quality customers, that have not yet been recognized as revenue as of December 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 $167.5 million. Over half of the remaining performance obligation as of December 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 as of December 31, 2022 are as follows (in thousands):

2023	$	89,436
2024	44,544
2025	22,081
2026	7,410
2027	2,505
Thereafter	1,506
Total	$	167,482