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Revenue from Contracts with Customers
6 Months Ended
Jun. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue from Contracts with Customers

2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following table presents our revenue disaggregated by platform (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Online game:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobile

 

$

223,779

 

 

$

143,026

 

 

$

406,612

 

 

$

282,856

 

Other(1)

 

 

16,929

 

 

 

21,654

 

 

 

34,260

 

 

 

43,377

 

Online game total

 

$

240,708

 

 

$

164,680

 

 

$

440,872

 

 

$

326,233

 

Advertising and other:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mobile

 

 

63,663

 

 

 

49,718

 

 

 

126,923

 

 

 

92,489

 

Other(1)

 

 

2,129

 

 

 

2,647

 

 

 

4,108

 

 

 

6,555

 

Advertising and other total

 

$

65,792

 

 

$

52,365

 

 

$

131,031

 

 

$

99,044

 

Total revenue

 

$

306,500

 

 

$

217,045

 

 

$

571,903

 

 

$

425,277

 

 

 

(1)

Includes web for Online Game and web advertising revenue and other revenue for Advertising and Other

 

The following table presents our revenue disaggregated based on the geographic location of our payers (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

United States

 

$

194,309

 

 

$

142,541

 

 

$

366,260

 

 

$

278,537

 

All other countries(1)

 

 

112,191

 

 

 

74,504

 

 

 

205,643

 

 

 

146,740

 

Total revenue

 

$

306,500

 

 

$

217,045

 

 

$

571,903

 

 

$

425,277

 

 

 

(1)

No foreign country exceeded 10% of our total revenue for any periods presented.

Durable virtual items accounted for 72% of online game revenue in the three months ended June 30, 2019 and 53% of online game revenue in the same period of the prior year. Consumable virtual items accounted for 28% of online game revenue in the three months ended June 30, 2019 and 47% of online game revenue in the same period of the prior year. The estimated weighted-average life of durable virtual items was 10 months in the three months ended June 30, 2019, compared to 9 months in the same period of the prior year.

Durable virtual items accounted for 69% of online game revenue in the six months ended June 30, 2019 and 54% of online game revenue in the same period of the prior year. Consumable virtual items accounted for 31% of online game revenue in the six months ended June 30, 2019 and 46% of online game revenue in the same period of the prior year. The estimated weighted average life of durable virtual items was 9 months for both the six months ended June 30, 2019 and 2018.

Contract Balances

We receive payments from our customers based on the payment terms established in our contracts. Payments for online game revenue are required at time of purchase, are non-refundable and relate to non-cancellable contracts that specify our performance obligations. Such payments are initially recorded to deferred revenue and are recognized into revenue as we satisfy our performance obligations. Further, payments made by our players are collected by payment processors and remitted to us generally within 30 days. Our right to the payments collected on our behalf are unconditional and therefore recorded as accounts receivable, net of the associated payment processing fees.

Payments for advertising arrangements are due based on the contractually stated payment terms. The contract terms generally require payment within 30 to 60 days subsequent to the end of the month. Our right to payment from the customer is unconditional and therefore recorded as accounts receivable.  

During the three and six months ended June 30, 2019, we recognized $58.5 million and $168.0 million, respectively, of revenue that was included in the current deferred revenue balance on December 31, 2018.

The increase in accounts receivable, net during the six months ended June 30, 2019 was primarily driven by a net increase in accounts receivable of $23.0 million on the acquisition date of Small Giant Games Oy (“Small Giant”) and sales on account during the period exceeding cash collections of current period and previously due amounts. The increase in deferred revenue during the six months ended June 30, 2019 was primarily driven by the sale of virtual items during the period exceeding revenue recognized from the satisfaction of our performance obligations, which includes the contribution from Small Giant.

Unsatisfied Performance Obligations

Substantially all of our unsatisfied performance obligations relate to contracts with an original expected length of one year or less.