Revenue and Geographic Information

9 Months Ended

Sep. 29, 2023

Revenue from Contract with Customer [Abstract]

Revenue and Geographic Information

Revenue and Geographic Information

Contract Balances — Amounts invoiced in advance of revenue recognition are recorded as deferred revenue on the condensed consolidated balance sheets. Deferred revenue primarily relates to unspecified software updates and upgrades, hosting, technical support, marketing incentive programs, and subscription services. The following table represents the changes in deferred revenue for the nine months ended September 29, 2023 and September 30, 2022:

	Nine Months Ended
	September 29, 2023		September 30, 2022
Deferred revenue – beginning of period	$	35,051	$	33,385
Amounts billed, but not recognized	26,477		25,809
Recognition of revenue	(26,788)		(24,641)
Deferred revenue acquired	—		218
Deferred revenue – end of period	$	34,740	$	34,771

The Company recorded deferred revenue of $22,813 and $22,611 in accrued liabilities and $11,927 and $12,440 in other liabilities as of September 29, 2023 and December 30, 2022, respectively.

Disaggregation of Revenue — The following table sets forth revenue by geography between the United States and all geographies outside of the United States for the three months and nine months ended September 29, 2023 and September 30, 2022:

	Three Months Ended				Nine Months Ended
	September 29, 2023		September 30, 2022		September 29, 2023		September 30, 2022
Domestic integrators(a)	$	226,021	$	230,173	$	666,307	$	694,254
Domestic other(b)	9,962		14,940		30,389		46,107
International(c)	34,161		36,121		99,895		115,212
Total	$	270,144	$	281,234	$	796,591	$	855,573

(a)Domestic integrators is defined as professional “do-it-for-me” integrator customers who transact with Snap One through a traditional integrator channel in the United States, excluding the impact of revenue earned by the Company’s Access Networks enterprise grade network solution business.

(b)Domestic other is defined as Access Networks revenue and revenue generated through managed transactions with non-integrator customers, such as national accounts.

(c)International consists of all integrators and distributors who transact with Snap One outside of the United States.

The following table sets forth revenue by product type between proprietary products and third-party products for the three months and nine months ended September 29, 2023 and September 30, 2022:

	Three Months Ended				Nine Months Ended
	September 29, 2023		September 30, 2022		September 29, 2023		September 30, 2022
Proprietary products(a)	$	176,172	$	192,172	$	531,372	$	588,165
Third-party products(b)	93,972		89,062		265,219		267,408
Total	$	270,144	$	281,234	$	796,591	$	855,573

(a)Proprietary products consist of products and services internally developed by or for Snap One and sold under one of Snap One’s proprietary brands.

(b)Third-party products consist of products that Snap One distributes but for which Snap One does not own the associated product brands.

Additionally, the Company’s revenue includes amounts recognized over time and at a point in time, and are as follows for the three months and nine months ended September 29, 2023 and September 30, 2022:

	Three Months Ended				Nine Months Ended
	September 29, 2023		September 30, 2022		September 29, 2023		September 30, 2022
Products transferred at a point in time	$	261,075	$	271,500	$	769,803	$	830,932
Services transferred over time	9,069		9,734		26,788		24,641
Total	$	270,144	$	281,234	$	796,591	$	855,573