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Revenue Recognition
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

Revenue Recognition

The following table summarizes revenue from contracts with customers by geographical region and by revenue source for the three and nine months ended September 30, 2021 and 2020.

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

 Marketplace subscription revenue

 

$

134,261

 

 

$

121,814

 

 

$

400,377

 

 

$

330,295

 

 Wholesale and other revenue

 

 

77,293

 

 

 

16,598

 

 

 

180,772

 

 

 

45,869

 

Total

 

 

211,554

 

 

 

138,412

 

 

 

581,149

 

 

 

376,164

 

International

 

 

 

 

 

 

 

 

 

 

 

 

 Marketplace subscription revenue

 

 

10,328

 

 

 

8,139

 

 

 

28,017

 

 

 

21,477

 

 Wholesale and other revenue

 

 

1,033

 

 

 

921

 

 

 

2,865

 

 

 

2,257

 

Total

 

 

11,361

 

 

 

9,060

 

 

 

30,882

 

 

 

23,734

 

 Total Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 Marketplace subscription revenue

 

 

144,589

 

 

 

129,953

 

 

 

428,394

 

 

 

351,772

 

 Wholesale and other revenue

 

 

78,326

 

 

 

17,519

 

 

 

183,637

 

 

 

48,126

 

Total

 

$

222,915

 

 

$

147,472

 

 

$

612,031

 

 

$

399,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Company provides disaggregation of revenue based on the marketplace subscription versus wholesale and other revenue classification and based on geographic region in the table above as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”) requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the relevant quarter end.

For contracts with an original expected duration greater than one year, the aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied as of September 30, 2021 was approximately $12.2 million, which the Company expects to recognize over the next 12 months.

For contracts with an original expected duration of one year or less, the Company has applied the practical expedient available under Topic 606 to not disclose the amount of transaction price allocated to unsatisfied performance obligations as of September 30, 2021. For performance obligations not satisfied as of September 30, 2021, and to which this expedient applies, the nature of the performance obligations, the variable consideration and any consideration from contracts with customers not included in the transaction price is consistent with performance obligations satisfied as of September 30, 2021.

Revenue recognized during the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, from amounts included in deferred revenue at the beginning of the period, was approximately $13,120, $8,195, $9,137 and $9,984, respectively.

In response to the COVID-19 pandemic, the Company reduced the subscription fees for paying dealers by at least 50% on all marketplace subscriptions for the April and May 2020 service periods, as well as provided a fee reduction on all June 2020 marketplace subscriptions of 20% for paying dealers in the United States and Canada and 50% for paying dealers in the United Kingdom. These fee reductions resulted in a modification to contracts with initial contractual periods greater than one month. For any contract modified, the Company calculated the remaining transaction price and allocated the consideration over the remaining performance obligations. The Company also waived subscription fees for paying dealers in the United Kingdom for the December 2020 and February 2021 service periods. These fee reductions are included in the Company’s variable consideration assessment. The fee reductions had an immaterial impact on the Company’s revenues for the three and nine months ended September 30, 2021, as well as the three months ended September 30, 2020. The fee reductions had a material impact on the Company’s revenues for the nine months ended September 30, 2020.