Revenue |
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| Revenue | Note 2—Revenue
Disaggregation of Revenue
The following table presents revenue disaggregated by segment and type (in thousands):
Contract Balances
Contract liabilities consist of deferred revenue, which are recorded for payments received in advance of the satisfaction of performance obligations.
The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. The Company’s deferred revenue balance for paid subscriptions was approximately $4.6 million related to approximately 896,000 active subscribers, and approximately $2.9 million, related to approximately 669,000 active subscribers, as of April 30, 2025 and July 31, 2024, respectively. Deferred revenue increased $1.8 million for the nine months ended April 30, 2025, primarily attributable to the significant growth in lifetime subscriptions sales.
The Company also records deferred revenues when users purchase or earn Zedge Credits. Unused Zedge Credits represent the value of the Company’s unsatisfied performance obligation to its users. Revenue is recognized when Zedge App users use Zedge Credits to acquire Zedge Premium content or upon expiration of the Zedge Credits after 180 days of account inactivity (“Breakage”). As of April 30, 2025, and July 31, 2024, the Company’s deferred revenue balance related to Zedge Premium was approximately $250,000 and $251,000, respectively.
The amount of deferred revenue recognized in the nine months ended April 30, 2025 that was included in the deferred revenue balance at July 31, 2024 was $1.6 million.
Unsatisfied Performance Obligations
Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of 30 months or less.
Significant Judgments
The advertising networks and advertising exchanges to which the Company sells its inventory track and report the impressions and revenues to Zedge, and Zedge recognizes revenues based on these reports. The networks and exchanges base their payments off of those reports and Zedge independently compares the data to each of the client sites to validate the imported data and identify any differences. The number of impressions and revenues delivered by the advertising networks and advertising exchanges is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period. |
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