REVENUE FROM CONTRACTS WITH CUSTOMERS |
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REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS The following table provides information about disaggregated revenue by geographic location of the Company’s players and type of platform (in millions):
Revenues through third-party platforms and through the Company’s own direct-to-consumer platforms were as follows (in millions):
Contract balances Payments from players for virtual items are collected by platform providers or payment processors and remitted to the Company (net of the platform or clearing fees) generally within 30 days after the player transaction. The Company’s right to receive the payments collected by the platform providers or payment processors is recorded as an accounts receivable as the right to receive payment is unconditional. Deferred revenues, which represent a contract liability, represent mostly unrecognized fees billed for virtual items which have not yet been consumed at the balance sheet date. Platform fees paid to platform providers or payment processors and associated with deferred revenues represent a contract asset. Balances of the Company’s contract assets and liabilities are as follows (in millions):
_______ (1) Contract assets are included within prepaid expenses and other current assets in the Company’s consolidated balance sheets. (2) Contract liabilities are included within accrued expenses and other current liabilities as “deferred revenues” in the Company’s consolidated balance sheets. During the three and six months ended June 30, 2025, the Company recognized $8.7 million and $30.9 million, respectively, of its contract liabilities that were outstanding as of December 31, 2024. Unsatisfied performance obligations Substantially all of the Company’s unsatisfied performance obligations relate to contracts with an original expected length of one year or less.
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