Deferred Revenue

3 Months Ended

Mar. 31, 2024

Deferred Revenue

Deferred Revenue

11. Deferred Revenue

As of March 31, 2024 and December 31, 2023, deferred revenue includes club initiation fees of $50.4 million and $48.7 million, respectively, and other deferred revenue of $14.1 million as of both periods.

Club initiation fees are recognized as revenue over the estimated average duration of membership, which is evaluated periodically. The following table presents the changes in club initiation fees related to contracts with customers:

	March 31,		March 31,
	2024		2023
Balance at beginning of period	$	48,742	$	25,088
New club memberships		5,022		2,890
Revenue from amounts included in contract liability opening balance		(3,105)		(1,891)
Revenue from current period new memberships		(262)		(74)
Balance at end of period	$	50,397	$	26,013

Remaining performance obligations represent contracted revenue that has not been recognized related to club initiation fees. As of March 31, 2024, remaining performance obligations were $50.4 million, of which the Company expects to recognize as revenue $8.7 million in 2024, $21.9 million in 2025 through 2026, $15.8 million in 2027 through 2028 and $4.0 million thereafter.

Other deferred revenue as of both March 31, 2024 and December 31, 2023, includes $10.9 million related to a 2006 agreement pursuant to which the Company agreed to sell land to the Florida Department of Transportation. Revenue is recognized when title to a specific parcel is legally transferred.