Revenues from Contracts with Customers

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Revenues from contracts with customers:
Leasing and other commissions	$	839,595	$	831,874	$	826,942
Investment sales	381,276		606,416		757,744
Mortgage brokerage and debt placement	126,934		173,253		180,561
Management services	733,585		692,957		733,761
Total	$	2,081,390	$	2,304,500	$	2,499,008
Other sources of revenue(1):
Fair value of expected net future cash flows from servicing recognized at commitment, net	$	82,082	$	109,926	$	136,406
Loan originations related fees and sales premiums, net	69,604		74,573		89,075
Servicing fees and other	237,292		216,528		181,954
Total	$	2,470,368	$	2,705,527	$	2,906,443

(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, 2023 and 2022 was $2.7 million and $2.9 million, respectively. During the years ended December 31, 2023, 2022 and 2021, Newmark recognized revenue of $1.7 million, $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, that have not yet been recognized as revenue as of December 31, 2023, that will be recognized as revenue in future periods over the life of the customer contracts, in accordance with ASC 606, are approximately $169.1 million. Over half of the remaining performance obligation as of December 31, 2023 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, 2023 are as follows (in thousands):

2024	$	97,858
2025	48,008
2026	18,042
2027	3,613
2028	1,586
Thereafter	15
Total	$	169,122