Revenue, Performance Obligations, Deferred Revenue and Unbilled Revenue

9 Months Ended

Mar. 31, 2022

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 March 31,				Nine months ended March 31,
	2022		2021		2022		2021
Small-to-midsize business, accounting    firm customers and other	$	156,518	$	54,710	$	417,651	$	144,609
Financial institution customers		8,950		3,912		20,895		10,134
Total subscription and transaction fees		165,468		58,622		438,546		154,743
Interest on funds held for customers		1,443		1,116		3,192		5,249
Total revenue	$	166,911	$	59,738	$	441,738	$	159,992

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. Total deferred revenue was $33.6 million and $15.8 million as of March 31, 2022 and June 30, 2021, respectively. The current portion of the deferred revenue, which was $31.6 million and $12.9 million as of March 31, 2022 and June 30, 2021, respectively, is included in other accruals and current liabilities in the accompanying condensed consolidated balance sheets. The non-current portion of the deferred revenue, which was $2.0 million and $2.9 million as of March 31, 2022 and June 30, 2021, respectively, is included in other long-term liabilities in the accompanying condensed consolidated balance sheets.

During the three and nine months ended March 31, 2022, the Company recognized $3.2 million and $12.1 million of revenue, respectively, that was included in the deferred revenue balance as of June 30, 2021.

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 March 31, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $148 million. Of the total remaining performance obligations, the Company expects to recognize approximately 63% within two years and 37% 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.

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 $11.0 million and $8.1 million as of March 31, 2022 and June 30, 2021, respectively.