Revenue and Contract Balances

9 Months Ended

Sep. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue and Contract Balances

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,
	2022		2021		2022		2021
Advertising	$	11,731	$	10,840	$	34,959	$	30,813
Other services	50		56		292		146
	$	11,781	$	10,896	$	35,251	$	30,959

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
United States1	$	11,140	$	9,757	$	32,787	$	27,644
All other countries1	641		1,139		2,464		3,315
	$	11,781	$	10,896	$	35,251	$	30,959

1 Calculated based on customer sold to address for the periods presented. Using the prior calculation based on billing entity address, revenue for the United States and All other countries would have been $11,335 and $446 for the three months ended September 30, 2022, $10,041 and $855 for the three months ended September 30, 2021, $33,491 and $1,760 for the nine months ended September 30, 2022, and $28,204 and $2,755 for the nine months ended September 30, 2021, respectively.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Arizona	19	%	16	%	18	%	16	%
California	13	%	11	%	11	%	10	%
Oregon	10	%	11	%	10	%	12	%

No other state comprised 10% or more of Leafly’s revenue during the three and nine months ended September 30, 2022 and 2021. We have a diversified set of customers; no single customer accounted for 10% or more of our revenue for the three and nine months ended September 30, 2022 and 2021.

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Over time
Retail1	$	9,042	$	8,606	$	27,286	$	24,572
Brands2	1,759		1,581		5,067		4,591
	$	10,801	$	10,187	$	32,353	$	29,163
Point in time
Brands3	980		709		2,898		1,796
	$	11,781	$	10,896	$	35,251	$	30,959

1 Revenues from subscription services and display ads.

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

3 Revenues from branded content and 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 accounts and changes in the deferred revenue accounts

	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Balance, beginning of period	$	2,467	$	2,079	$	1,975	$	1,585
Add: net increase in current period contract liabilities	1,630		1,947		1,976		2,112
Less: revenue recognized from beginning balance	(2,045)		(1,847)		(1,899)		(1,518)
Balance, end of period	$	2,052	$	2,179	$	2,052	$	2,179

A majority of the deferred revenue balance as of September 30, 2022 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, 2022 or December 31, 2021.