Revenues

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues, most significantly the revenue share we earn from our print textbook partners, being recognized at the point in time when print textbooks are shipped to students.

The following table sets forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):



	Years Ended December 31,						Change in 2019				Change in 2018
	2019		2018		2017		$		%		$			%
Chegg Services	$	332,221	$	253,985	$	185,683	$	78,236	31	%	$	68,302		37	%
Required Materials	78,705		67,099		69,383		11,606		17		(2,284		)	(3	)
Total net revenues	$	410,926	$	321,084	$	255,066	$	89,842	28		$	66,018		26

During the year ended December 31, 2019, we recognized $17.0 million of revenues that were included in our deferred revenue balance as of December 31, 2018. During the year ended December 31, 2018, we recognized $11.7 million of revenues that were included in our deferred revenue balance as of December 31, 2017. During the year ended December 31, 2019, we recognized $3.4 million of previously deferred revenues recognized from performance obligations satisfied in previous periods related to variable consideration recognized from our agreement with our Required Materials print textbook partner. During the year ended December 31, 2018, we recognized an immaterial amount of previously deferred revenues recognized from performance obligations satisfied in previous periods. The aggregate amount of unsatisfied performance obligations is approximately $18.8 million as of December 31, 2019, which are expected to be recognized into revenues over the next year.

Contract Balances

The following table presents our accounts receivable, net, deferred revenue, and contract asset balances (in thousands, except percentages):



	December 31,				Change
	2019		2018		$			%
Accounts receivable, net	$	11,529	$	12,733	$	(1,204	)	(9	)%
Deferred revenue	18,780		17,418		1,362			8
Contract assets	3,531		337		3,194			n/m

_______________________________________

n/m - not meaningful

During the year ended December 31, 2019, our accounts receivable, net balance decreased by $1.2 million, or 9%, primarily due to timing of billings partially offset by an improvement in cash collections. During the year ended December 31, 2019, our deferred revenue balance increased by $1.4 million, or 8%, primarily due to increased bookings for our Chegg Study service and eTextbook rentals driven by the seasonality of our business. During the year ended December 31, 2019, our contract assets balance increased by $3.2 million primarily due to variable consideration and payment arrangements for Thinkful.