REVENUE FROM CONTRACTS WITH CUSTOMERS

3 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERSThe 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-months ended June 30, 2021 and 2020 were as follows (in thousands):

	Three Months Ended
	June 30,
	2021		2020
Revenue
Direct to Consumer:
Toys and treats subscription	$	103,089	$	65,608
Other	$	2,287	$	1,491
Total Direct to Consumer	$	105,376	$	67,099
Commerce	$	12,230	$	7,709
Revenue	$	117,606	$	74,808

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.

Contractual liabilities included in deferred revenue were $30.7 million and $27.2 million as of June 30, 2021 and March 31, 2021, respectively. During the three months ended June 30, 2021, the Company recognized $4.8 million of revenue included in deferred revenue as of March 31, 2021.

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 in Topic 606. Performance obligations are satisfied as of a point in time and are supported by contracts with 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.