Revenue, Performance Obligations, Deferred Revenue and Unbilled Revenue

6 Months Ended

Dec. 31, 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 December 31,				Six months ended December 31,
	2021		2020		2021		2020
Small-to-midsize business, accounting    firm customers and other	$	147,530	$	49,000	$	261,132	$	89,899
Financial institution customers		7,989		3,333		11,945		6,222
Total subscription and transaction fees		155,519		52,333		273,077		96,121
Interest on funds held for customers		959		1,712		1,750		4,133
Total revenue	$	156,478	$	54,045	$	274,827	$	100,254

Remaining performance obligations

The Company has performance obligations associated with commitments in customer contracts for future services that have not yet been recognized as revenue. As of December 31, 2021, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) was approximately $155.0 million, including deferred revenue. Of the total remaining performance obligations, the Company expects to recognize approximately 60% within two years and 40% over the next three to five years thereafter. The Company determines remaining performance obligations at a point of time. Actual amounts and timing of revenue recognized may differ due to subsequent contract modifications, renewals and/or terminations.

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 and six months ended December 31, 2021, the Company recognized $6.6 and $8.9 million of revenue, respectively, 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 $10.5 million and $8.1 million as of December 31, 2021 and June 30, 2021, respectively.