Revenue, Performance Obligations, Deferred Revenue and Unbilled Revenue

3 Months Ended

Sep. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue, Performance Obligations, Deferred Revenue and Unbilled Revenue

NOTE 2 – Revenue, Performance Obligations, Deferred Revenue and UNBILLED REVENUE

The Company generates revenue primarily from subscription and transaction fees. The Company’s customers include small and midsize businesses (SMB), accounting firms and financial institutions. The table below shows the Company’s revenue from subscription and transaction fees, which are disaggregated by customer category, and revenue from interest on funds held for customers (in thousands).

	Three months ended September 30,
	2021		2020
Small-to-midsize business and accounting firm customers	$	111,656	$	40,899
Financial institution customers		3,956		2,889
Total subscription and transaction fees		115,612		43,788
Interest on funds held for customers		791		2,421
Total revenue	$	116,403	$	46,209

Remaining performance obligations

As of September 30, 2021, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) was $152.8 million. Of this amount, the Company expects to recognize approximately $43.0 million, or 28%, within one year. The timing of revenue recognition within the next year is largely dependent upon the go-live dates of the Company’s contracts with its financial institution customers, which are inherently uncertain. Once the services for the Company’s significant contracts have launched, the Company expects the amount of revenue to be recognized for the remaining transaction price will be materially consistent over the next two to five years.

Deferred revenue

Fees from customers with which the Company has annual or multi-year contracts are generally billed in advance. These fees are initially recorded as deferred revenue and subsequently recognized as revenue as the performance obligation is satisfied. Deferred revenue is shown as current or non-current in the accompanying condensed consolidated balance sheets. During the three months ended September 30, 2021, the Company recognized $2.3 million of revenue that was included in the deferred revenue balance as of June 30, 2021.

Unbilled revenue

Unbilled revenue, which is included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheets, consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $9.3 million and $8.1 million as of September 30, 2021 and June 30, 2021, respectively.