Revenue, Performance Obligations, Deferred Revenue and Deferred Costs

12 Months Ended

Jun. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue, Performance Obligations, Deferred Revenue and Deferred Costs

NOTE 2 – Revenue, Performance Obligations, Deferred Revenue and Deferred Costs

The Company generates revenue from two primary sources: (1) subscription and transaction fees and (2) interest on funds held for customers. The Company’s customers include small and midsize businesses (SMB), accounting firms and financial institutions. The Company’s subscription and transaction fees are disaggregated by customer category and consisted of the following (in thousands):

	Year ended June 30,
	2020		2019		2018
Small-to-midsize business and accounting firm    customers	$	126,035	$	76,292	$	50,138
Financial institution customers		10,370		9,659		6,854
Total subscription and transaction fees	$	136,405	$	85,951	$	56,992

Remaining performance obligations with financial institutions

As of June 30, 2020, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) was $152.3 million. Of this amount, the Company expects to recognize $13.0 million within one year and $139.3 million thereafter.

Deferred revenue

Subscription and transaction 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 consolidated balance sheets. Fees for monthly subscription and transaction fees are billed in arrears on a monthly basis. During the year ended June 30, 2020, the Company recognized $5.6 million of revenue that was included in the deferred revenue balance as of June 30, 2019.

Deferred costs

Deferred costs consisted of the following as of the dates presented (in thousands):

	June 30,
	2020		2019
Deferred sales commissions:
Current	$	2,829	$	1,674
Non-current		5,613		3,069
Total deferred sales commissions	$	8,442	$	4,743
Deferred service costs:
Current	$	618	$	755
Non-current		4,474		2,173
Total deferred service costs	$	5,092	$	2,928

The current portion of deferred costs is included in prepaid expenses and other current assets and the non-current portion is included in other assets in the accompanying consolidated balance sheets. The amortization of deferred sales commissions was $2.3 million, $1.4 million and $1.0 million during the years ended June 30, 2020, 2019 and 2018, respectively. The amortization of deferred service costs was $0.4 million, $1.1 million and $0.4 million during the years ended June 30, 2020, 2019 and 2018, respectively.