Revenue, Performance Obligations, Deferred Revenue and Deferred Costs

12 Months Ended

Jun. 30, 2021

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 (SMBs), 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,
	2021		2020		2019
Small-to-midsize business and accounting firm    customers	$	218,227	$	126,035	$	76,292
Financial institution customers		14,028		10,370		9,659
Total subscription and transaction fees	$	232,255	$	136,405	$	85,951

Remaining performance obligations with financial institutions

As of June 30, 2021, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) was $145.9 million. Of this amount, the Company expects to recognize approximately $28.1 million, or 19%, 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 consolidated balance sheets. During the year ended June 30, 2021, the Company recognized $6.3 million of revenue that was included in the deferred revenue balance as of June 30, 2020.

Deferred costs

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

	June 30,
	2021		2020
Deferred sales commissions:
Current	$	4,169	$	2,829
Non-current		6,542		5,613
Total deferred sales commissions	$	10,711	$	8,442
Deferred service costs:
Current	$	1,539	$	618
Non-current		15,260		4,474
Total deferred service costs	$	16,799	$	5,092

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 $3.6 million, $2.3 million and $1.4 million during the years ended June 30, 2021, 2020 and 2019, respectively. The amortization of deferred service costs was $0.6 million, $0.4 million and $1.1 million during the years ended June 30, 2021, 2020 and 2019, respectively.