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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

Note 2. Revenue

Disaggregation of Revenue

The following table shows revenues disaggregated by revenue stream for the three months ended September 30, 2024 and September 30, 2023, respectively and for the nine months ended September 30, 2024, and September 30, 2023, respectively:

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30, 2024

 

 

September 30, 2023

 

 

September 30, 2024

 

 

September 30, 2023

 

 

(in thousands of USD)

 

 

(in thousands of USD)

 

Paid Content

 

$

285,228

 

 

$

261,833

 

 

$

812,791

 

 

$

775,654

 

Advertising

 

 

43,384

 

 

 

35,924

 

 

 

120,800

 

 

 

108,374

 

IP Adaptations

 

 

19,303

 

 

 

20,007

 

 

 

62,040

 

 

 

64,656

 

Total

 

$

347,915

 

 

$

317,764

 

 

$

995,631

 

 

$

948,684

 

 

The revenue stream disaggregation above takes into consideration how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. Paid content revenue is generated from the provision of platform services that enable users to access content. Paid content revenue also includes $2.8 million and $1.8 million of physical book sales through the platform for the three months ended September 30, 2024 and September 30, 2023, respectively and $8.0 million and $5.5 million for nine months ended September 30, 2024 and 2023, respectively. Advertising revenue represents amounts earned for the display of advertisements on our offerings or product placement within content. IP Adaptations include the internal development of film, streaming series, or other rich media format adaptations commissioned by third party studios or streaming platforms; the license fees generated from sub-licensing content to third parties are $3.2 million and $2.6 million for the three months ended September 30, 2024 and 2023, respectively, and $10.0 million and $8.6 million for the nine months ended September 30, 2024 and 2023; as well as $1.8 million and $2.8 million of merchandise sales generated through external platforms, IP royalties, and pop-up stores for the three months ended September 30, 2024 and 2023, respectively, and $10.6 million and $6.2 million for the nine months ended September 30, 2024 and 2023, respectively.

Contract Liabilities

Contract liabilities primarily include payments received for virtual currency prior to the Company satisfying its performance obligation to deliver content to the customer.

We recognized revenues of $72.2 million and $54.8 million during the three months ended September 30, 2024 and 2023, respectively, and $70.1 million and $58.7 million during the nine months ended September 30, 2024 and 2023, respectively, that were included within Contract liabilities on the Condensed Consolidated Balance Sheets as of the beginning of the respective period.

Our remaining performance obligations were $107.5 million and $76.7 million as of September 30, 2024, and December 31, 2023, respectively, and we expect to recognize the entire amounts within one year of the respective dates.