XML 20 R9.htm IDEA: XBRL DOCUMENT v3.21.1
Revenues
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
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 being recognized at a point in time.
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):
 Three Months Ended March 31,Change
 20212020$%
Chegg Services$162,351 $100,359 $61,992 62 %
Required Materials36,027 31,231 4,796 15 
Total net revenues$198,378 $131,590 $66,788 51 

During the three months ended March 31, 2021 and 2020, we recognized $29.5 million and $17.5 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each reporting period. During the three months ended March 31, 2021 and 2020, we recognized $10.7 million and $12.3 million, respectively, of operating lease income from print textbook rentals that we own.

Contract Balances

The following table presents our accounts receivable, net, deferred revenue, and contract assets balances (in thousands, except percentages):
 Change
 March 31, 2021December 31, 2020$%
Accounts receivable, net$11,633 $12,913 $(1,280)(10)%
Deferred revenue48,608 32,620 15,988 49 
Contract assets18,043 13,243 4,800 36 

During the three months ended March 31, 2021, our accounts receivable, net balance decreased by $1.3 million, or 10%, primarily due to timing of billings and seasonality of our business. During the three months ended March 31, 2021, our deferred revenue balance increased by $16.0 million, or 49%, primarily due to increased bookings driven by higher Chegg Services revenue. During the three months ended March 31, 2021, our contract assets balance increased by $4.8 million, or 36%, primarily due to the income sharing payment arrangements we offer to students for our Thinkful service.