Other Financial Statement Information

6 Months Ended

Jun. 30, 2021

Other Financial Information [Abstract]

Note 3. Other Financial Statement Information

Accounts Receivable

Changes in the allowance consisted of the following (in thousands):


	Three Months Ended June 30						Six Months Ended June 30
	2021			2020			2021			2020
Beginning balance	$	4,709		$	1,366		$	5,256		$	2,461
Add: amounts recognized as a reduction of revenue		1,445			930			3,027			2,813
Add: bad debt expense recognized in general and administrative expense		16			680			30			680
Less: write-offs, net of recoveries		(1,056	)		(529	)		(3,199	)		(3,507	)

Ending balance	$	5,114		$	2,447		$	5,114		$	2,447

The allowance recognized as a reduction of revenue primarily relates to our installment plan receivables for which we expect we will not be entitled to a portion of the transaction price based on our historical experience with similar transactions. The allowance recognized against general and administrative expense represents an allowance relating to receivables from partners that are no longer considered collectible.

Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consisted of the following (in thousands):


	June 30, 2021		December 31, 2020
Prepaid expenses	$	7,797	$	7,177
Deferred cost of revenue		2,452		1,967
Other current assets		2,316		1,392

Total prepaid expenses and other current assets	$	12,565	$	10,536

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (in thousands):


	June 30, 2021		December 31, 2020
Accrued payroll and related expenses	$	15,530	$	16,135
Accrued vendor payables		17,714		10,854
Derivative liabilities and hybrid debt		5,554		5,131
Sales allowances		4,676		4,856
Accrued sales, use and business taxes		1,816		1,789
Accrued advertising		—		173
Other		2,587		2,090

Total accrued expenses and other current liabilities	$	47,877	$	41,028

Depreciation and Amortization

Depreciation and amortization expense of our property and equipment, including capitalized

internal-use

software, and intangible assets consisted of the following (in thousands):


	Three Months Ended June 30				Six Months Ended June 30
	2021		2020		2021		2020
Cost of revenue	$	1,398	$	1,934	$	3,076	$	3,892
Sales and marketing		1,323		1,762		2,798		3,611
Technology and development		584		667		1,171		1,317
General and administrative		358		464		784		927

Total depreciation and amortization expense	$	3,663	$	4,827	$	7,829	$	9,747

Deferred Revenue

Deferred revenue as of June 30, 2021 and December 31, 2020 was $153.9 million and $130.1 million, respectively. We recognized $77.5 million and $57.7 million of revenue during the three months ended June 30, 2021 and 2020, respectively, that was included in the deferred revenue balances as of March 31, 2021 and 2020, respectively, and $102.3 million and $83.1 million during the six months ended June 30, 2021 and 2020, respectively, that was included in the deferred revenue balances as of December 31, 2020 and 2019, respectively. We expect to recognize substantially all of the remaining deferred revenue as of December 31, 2020 as revenue in 2021. We expect substantially all of the deferred revenue at June 30, 2021 will be recognized as revenue within the next twelve months.

We have omitted disclosure about the transaction price allocated to remaining performance obligations and when revenue will be recognized as revenue as our contracts with customers that have a duration of more than one year are immaterial.