Revenue

3 Months Ended

Sep. 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).

	Three Months Ended September 30,
	2023		2022
Small-to-midsize businesses, accounting firms, spending businesses and other	$	260,203	$	204,821
Financial institutions	4,939		9,790
Total subscription and transaction fees	265,142		214,611
Interest on funds held for customers	39,843		15,313
Total revenue	$	304,985	$	229,924

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 months ended September 30, 2023, the Company recognized $10.2 million of revenue that was included in the deferred revenue balance as of June 30, 2023.

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 September 30, 2023, the aggregate amount of transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied), including deferred revenue, was approximately $125.1 million, which the company expects to recognize as revenue in future periods without a significant reduction. Of the total remaining performance obligations, the Company expects to recognize approximately 81% within two years and 19% over the next three to five years thereafter. The Company determines remaining performance obligations at a point of time based on contracts with customers. The Company continues to evaluate expansion opportunities on an ongoing basis, which may include renegotiating the terms of our contracts with SMBs, accounting firms and financial institutions. There were no significant subsequent events that would affect these contracts. However, actual amounts and timing of revenue recognized may still 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 $15.5 million and $14.0 million as of September 30, 2023 and June 30, 2023, respectively and is included in accounts receivable, net in the accompanying condensed consolidated balance sheets.