Revenue and Contract Balances

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Contract Balances

NOTE 9 — Revenue and Contract Balances

The following table presents the Company's revenue by service type:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Advertising 1	$	10,386	$	11,731	$	32,126	$	34,914
Other services 1		197		50		381		337
	$	10,583	$	11,781	$	32,507	$	35,251

1.Amounts for the prior period have been reclassified to conform to the current period presentation.

The following table presents the Company's revenue by geographic region:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
United States 1	$	10,155	$	11,140	$	31,213	$	32,742
All other countries 1		428		641		1,294		2,509
	$	10,583	$	11,781	$	32,507	$	35,251

1.Amounts for the prior period have been reclassified to conform to the current period presentation.

The following table presents the Company's revenue by state:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Arizona		20	%		19	%		20	%		18	%
California		12	%		13	%		12	%		11	%
Oregon		11	%		10	%		11	%		10	%

No other state comprised 10% or more of Leafly’s revenue during the nine months ended September 30, 2023 and 2022. We have a diversified set of customers; no single customer accounted for 10% or more of our revenue for the nine months ended September 30, 2023 or 2022.

The following table presents the Company's revenue by timing of recognition:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Over Time 1
Retail 2	$	9,266	$	9,042	$	27,576	$	27,286
Brands 3		929		1,758		3,571		5,067
		10,195		10,800		31,147		32,353
Point in time 1
Brands 4		388		981		1,360		2,898
	$	10,583	$	11,781	$	32,507	$	35,251

1.Amounts for the prior period have been reclassified to conform to the current period presentation.

2.Revenues from subscription services and display ads.

3.Revenues from brand profile subscriptions and digital media (including display ads and audience extension).

4.Revenues from channel advertising (including direct to consumer email).

Revenues recognized over time are associated with software subscriptions, display ads and audience extension. Revenues recognized at a point in time are associated with branded content and channel advertising. There are no material variations in delivery and revenue recognition periods within the over time category.

Contract liabilities consist of deferred revenue, which is recorded on the Consolidated Balance Sheets when the Company has received consideration, or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer.

The following table presents the Company's deferred revenue balances and changes therein:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Balance, beginning of period	$	2,017		$	2,467		$	1,958		$	1,975
Add: net increase in current period contract liabilities		1,991			1,630			2,083			1,976
Less: revenue recognized from beginning balance		(1,913	)		(2,045	)		(1,946	)		(1,899	)
Balance, end of period	$	2,095		$	2,052		$	2,095		$	2,052

A majority of the deferred revenue balance as of September 30, 2023 is expected to be recognized in the subsequent 12-month period. No other contract assets or liabilities are recorded on the Company’s Consolidated Balance Sheets as of September 30, 2023 and December 31, 2022.