Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

4. Revenue from Contracts with Customers

The Company markets and sells its products through direct-to-consumer online channels, traditional wholesale partners, third-party online retailers and Company factory outlet and showrooms. Revenue is recognized when the Company satisfies its performance obligations under the contract which is transferring the promised products to the customer as described in Note 2 – Summary of Significant Accounting Policies.

Contract Balances

Payment for sale of products through the direct-to-consumer online channels, third-party online retailers and Company factory outlet and showrooms is collected at point of sale in advance of shipping the products. Amounts received for unshipped products are recorded as customer prepayments. Customer prepayments were $8.7 million at June 30, 2020 and $6.3 million at December 31, 2019. During the six months ended June 30, 2020, the Company recognized $6.3 million of revenue that was deferred in customer prepayments at December 31, 2019.

Disaggregated Revenue

The following table presents the Company's revenue disaggregated by sales channel and product (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
Channel	2020		2019		2020		2019
Direct-to-consumer	$	145,180	$	63,710	$	225,867	$	117,474
Wholesale partner		19,916		39,294		61,604		69,178
Revenues, net	$	165,096	$	103,004	$	287,471	$	186,652

	Three Months Ended June 30,				Six Months Ended June 30,
Product	2020		2019		2020		2019
Bedding	$	150,503	$	96,383	$	265,004	$	173,826
Other		14,593		6,621		22,467		12,826
Revenues, net	$	165,096	$	103,004	$	287,471	$	186,652

The Company sells products through two channels: Direct-to-Consumer and Wholesale. The Direct-to-Consumer channel includes product sales through various direct-to-consumer channels including Company outlet and showrooms. The Wholesale channel includes all product sales to traditional third-party retailers for their in store and online channels. The Company classifies products into two major categories: Bedding and Other. Bedding products include mattresses, platforms, adjustable bases, mattress protectors, pillows and sheets. Other products include cushions and various other products.