Revenue

12 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue

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).

	Year ended June 30,
	2022		2021		2020
Small-to-midsize business, accounting firm customers and other	$	603,171	$	218,227	$	126,035
Financial institution customers	30,194		14,028		10,370
Subscription and transaction fees	633,365		232,255		136,405
Interest on funds held for customers	8,594		6,010		21,195
Revenue	$	641,959	$	238,265	$	157,600

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 year ended June 30, 2022, the Company recognized $13.0 million of revenue 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 June 30, 2022, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $150.3 million. Of the total remaining performance obligations, the Company expects to recognize approximately 66% within two years and 34% 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 consolidated balance sheets, consists of revenue recognized that has not been billed to the customers yet. The unbilled revenue amounted to $11.4 million and $8.1 million as of June 30, 2022 and 2021, respectively.

Deferred costs

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

	June 30,
	2022		2021
Deferred sales commissions:
Current	$	5,460	$	4,169
Non-current	9,187		6,542
Total deferred sales commissions	$	14,647	$	10,711
Deferred service costs:
Current	$	1,706	$	1,539
Non-current	13,862		15,260
Total deferred service costs	$	15,568	$	16,799

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, which is included in sales and marketing in the accompanying consolidated statements of operations, was $5.2 million, $3.6 million and $2.3 million during the years ended June 30, 2022, 2021 and 2020, respectively. The amortization of deferred service costs, which is included in the service costs in the accompanying consolidated statements of operations, was $1.6 million, $0.6 million and $0.4 million during the years ended June 30, 2022, 2021 and 2020, respectively.