Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table summarizes revenue by region based on the billing country of users (in thousands, except percentages):

	Year Ended December 31,
	2023				2022				2021
	Amount		Percentage of Revenue		Amount		Percentage of Revenue		Amount		Percentage of Revenue
United States and Canada (1)	$	1,803,812	64	%	$	1,465,955	66	%	$	1,298,938	68	%
Europe	505,633		18		404,431		18		357,656		19
Asia-Pacific, including Australia and New Zealand	286,930		10		204,261		8		145,464		7
Rest of world	202,899		7		150,405		7		117,123		6
Total	$	2,799,274	100	%	$	2,225,052	100	%	$	1,919,181	100	%

(1)The Company’s revenues in the U.S. were 60%, 62%, and 63% of consolidated revenues for each of the years ended December 31, 2023, 2022, and 2021, respectively.

No individual country, other than the United States, exceeded 10% of the Company’s total revenue for any period presented.

Durable virtual items accounted for 91%, 90%, and 89% of virtual item-related revenue in the years ended December 31, 2023, 2022, and 2021, respectively. Consumable virtual items accounted for 9%, 10%, and 11% of virtual item-related revenue in the years ended December 31, 2023, 2022, and 2021, respectively.

Deferred Revenue

The Company receives payments from its users based on the payment terms established in its contracts. Such payments are initially recorded to deferred revenue and are recognized into revenue as the Company satisfies its performance obligations. The aggregate amount of revenue allocated to unsatisfied performance obligations is included in our deferred revenue balances.

The increase in deferred revenue for the year ended December 31, 2023 was driven by sales during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the revenue recognized during the period that was included in the current portion of deferred revenue at the beginning of the period. During the year ended December 31, 2023, we recognized all of the revenue that was included in the $1,941.9 million current deferred revenue balance as of December 31, 2022.