Revenue

6 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The Company generates revenue primarily from subscription and transaction fees. The Company serves 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 sales channel, and revenue from interest on funds held for customers (in thousands).

	Three Months Ended December 31,				Six Months Ended December 31,
	2022		2021		2022		2021
Small-to-midsize businesses, accounting firms and other	$	220,406	$	147,530	$	425,227	$	261,132
Financial institutions	10,689		7,989		20,479		11,945
Total subscription and transaction fees	231,095		155,519		445,706		273,077
Interest on funds held for customers	28,911		959		44,224		1,750
Total revenue	$	260,006	$	156,478	$	489,930	$	274,827

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.

During the three and six months ended December 31, 2022, the Company recognized $11.4 million and $25.7 million of revenue, respectively, that was included in the deferred revenue balance as of June 30, 2022.

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, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $133.5 million. Of the total remaining performance obligations, the Company expects to recognize approximately 75% within two years and 25% 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 consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $12.4 million and $11.4 million as of December 31, 2022 and June 30, 2022, respectively.