REVENUE FROM CONTRACTS WITH CUSTOMERS

9 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe Company generates revenue through its Direct to Consumer segment which consists of product sales of monthly subscription boxes, as well as sales through its website, BarkShop.com, and its Commerce segment which generates revenue from product sales to retailers and through marketplaces. The Company’s standard payment terms vary but do not result in a significant delay between the timing of invoice and payment. The Company occasionally negotiates other payment terms during the contracting process for its retail business. The Company has elected the practical expedient to not adjust the total consideration within a contract to reflect a financing component when the duration of the financing is one year or less.

Disaggregated Revenue

Revenue disaggregated by significant revenue stream for the three and nine months ended December 31, 2022 and 2021 were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	December 31,				December 31,
	2022		2021		2022		2021
Revenue
Direct to Consumer:
Toys and treats subscription	$	114,673	$	114,270	$	342,076	$	321,343
Other	5,402		3,854		13,942		8,973
Total Direct to Consumer	$	120,075	$	118,124	$	356,018	$	330,316
Commerce	14,259		22,688		53,280		48,264
Revenue	$	134,334	$	140,812	$	409,298	$	378,580

Contract Liability

The Company’s contract liability represents cash collections from its customers prior to delivery of subscription products, which is recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue is recognized as revenue upon the delivery of the box or product.

Deferred revenue was $32.9 million and $31.5 million as of December 31, 2022 and March 31, 2022, respectively.

Performance Obligations

A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account. Performance obligations are satisfied as of a point in time when control of promised goods are transferred to customers. The Company has elected to not disclose information related to remaining performance obligations due to their original expected terms being one year or less.