Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2020

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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Online game:
Mobile	$	418,034	$	265,836	$	1,116,927	$	672,449
Other(1)		17,977		15,815		51,625		50,074
Online game total	$	436,011	$	281,651	$	1,168,552	$	722,523
Advertising and other:
Mobile	$	66,148	$	61,742	$	186,878	$	188,665
Other(1)		1,173		1,900		3,357		6,008
Advertising and other total	$	67,321	$	63,642	$	190,235	$	194,673
Total revenue	$	503,332	$	345,293	$	1,358,787	$	917,196

⁽¹⁾ Includes web revenue 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 September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
United States	$	311,966	$	212,567	$	831,369	$	578,828
All other countries(1)		191,366		132,726		527,418		338,368
Total revenue	$	503,332	$	345,293	$	1,358,787	$	917,196

⁽¹⁾ No foreign country exceeded 10% of our total revenue for any periods presented.

Durable virtual items accounted for 77% of online game revenue in the three months ended September 30, 2020 and 76% of online game revenue in the same period of the prior year. Consumable virtual items accounted for 23% of online game revenue in the three months ended September 30, 2020 and 24% of online game revenue in the same period of the prior year. The estimated weighted-average life of durable virtual items was nine months for the three months ended September 30, 2020 and 2019.

Durable virtual items accounted for 75% of online game revenue in the nine months ended September 30, 2020 and 72% of online game revenue in the same period of the prior year. Consumable virtual items accounted for 25% of online game revenue in the nine months ended September 30, 2020 and 28% of online game revenue in the same period of the prior year. The estimated weighted-average life of durable virtual items was ten months for the nine months ended September 30, 2020 and nine months for the same period of the prior year.

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 45 days of invoicing. 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 nine months ended September 30, 2020, we recognized $53.4 million and $423.3 million, respectively, of revenue that was included in the current deferred revenue balance on December 31, 2019.

The increase in accounts receivable, net during the nine months ended September 30, 2020 was primarily driven by a net increase in accounts receivable of $64.3 million on the acquisition date from our acquisition of Peak Oyun Yazılım ve Pazarlama Anonim Şirketi (“Peak”) and sales on account during the period exceeding cash collections of current period and previously due amounts. The increase in deferred revenue during the nine months ended September 30, 2020 was primarily driven by the sale of virtual items during the period, which includes contribution from Peak, exceeding revenue recognized from the satisfaction of our performance obligations.

Unsatisfied Performance Obligations

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