Revenue

9 Months Ended

Sep. 30, 2020

Revenue From Contract With Customer [Abstract]

Revenue

3. REVENUE

Revenue disaggregation:

The Company’s disaggregated revenues are represented by the two reportable segments discussed in Note 14. The disaggregation is based on the evaluations that are regularly performed by the Chief Operating Decision Maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer.

Contract balances:

Contract balances include the following (in thousands):

	As of
	September 30, 2020		December 31, 2019
Accounts receivable, net	$	391,277	$	332,673
Contract assets (included in Prepaid expenses and other current assets)	$	6,809	$	3,588
Deferred revenue:
Current		48,004		39,861
Non-current		18,134		15,370
Total deferred revenue	$	66,138	$	55,231

Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts, sales returns, and sales incentives. Payment terms can vary by customer and contract.

The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities are included in deferred revenue and reflect consideration invoiced prior to the completion of performance obligations and revenue recognition.

Contract assets increased by approximately $3.2 million during the nine months ended September 30, 2020 primarily due to an increase in revenue recognition from growth in the platform business combined with the timing of billing which falls into a subsequent period. Deferred revenue increased by approximately $10.9 million during the nine months ended September 30, 2020 due to the increase in content arrangements, change in the timing of fulfillment of performance obligations, and overall growth in both the player and platform business.

During the three and nine months ended September 30, 2020, the Company recognized revenue of approximately $7.9 million and $36.6 million, respectively, from the amounts deferred as of December 31, 2019. During the three and nine months ended September 30, 2019, the Company recognized revenue of approximately $6.3 million and $44.2 million, respectively, from the amounts deferred as of December 31, 2018.

Revenue Allocated to Future Performance Obligations:

Revenue allocated to remaining or unsatisfied performance obligations represents estimated revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $299.0 million as of September 30, 2020 of which we expect to recognize approximately 65% over the next 12 months and the remainder thereafter.