Revenue

12 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

The Company generates revenue primarily from subscription and transaction fees. 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).

	Year ended June 30,
	2023		2022		2021
SMBs, accounting firms, spending businesses and other	$	901,602	$	603,171	$	218,227
Financial institutions	43,108		30,194		14,028
Total subscription and transaction fees	944,710		633,365		232,255
Interest on funds held for customers	113,758		8,594		6,010
Total revenue	$	1,058,468	$	641,959	$	238,265

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, 2023, the Company recognized approximately $32 million of revenue 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 June 30, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $131.1 million. Of the total remaining performance obligations, the Company expects to recognize approximately 77% within two years and 23% 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 $14.0 million and $11.4 million as of June 30, 2023 and 2022, respectively.

Deferred costs

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

	June 30,
	2023		2022
Deferred sales commissions:
Current	$	6,523	$	5,460
Non-current	12,317		9,187
Total deferred sales commissions	$	18,840	$	14,647
Deferred service costs:
Current	$	904	$	720
Non-current	2,221		3,433
Total deferred service costs	$	3,125	$	4,153

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 $6.6 million, $5.2 million, and $3.6 million during the years ended June 30, 2023, 2022, and 2021, respectively. The amortization of deferred service costs, which is included in the service costs in the accompanying consolidated statements of operations, was $2.5 million, $1.6 million, and $0.6 million during the years ended June 30, 2023, 2022, and 2021, respectively.