XML 19 R9.htm IDEA: XBRL DOCUMENT v3.22.2.2
Revenues
 9 Months Ended
Sep. 30, 2022
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 tables set 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
September 30,		Change
 20222021$%
Chegg Services$159,264 $146,790 $12,474 8 %
Required Materials5,475 25,152 (19,677)(78)
Total net revenues$164,739 $171,942 $(7,203)(4)

 Nine Months Ended September 30,Change
 20222021$%
Chegg Services$533,152 $482,654 $50,498 10 %
Required Materials28,552 86,144 (57,592)(67)
Total net revenues$561,704 $568,798 $(7,094)(1)

During the three and nine months ended September 30, 2022, we recognized $35.2 million and $33.8 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and nine months ended September 30, 2021 we recognized $31.3 million and $32.6 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each respective reporting period. During the three and nine months ended September 30, 2022, we recognized no operating lease income and $5.1 million of operating lease income, respectively, from print textbook rentals that we owned. During the three and nine months ended September 30, 2021, we recognized $6.2 million and $26.9 million, respectively, of operating lease income from print textbook rentals that we owned. The decreases in operating lease income are primarily due to the transition of our Required Materials product line. For further information, refer to Note 7, “Required Materials Transition.”

Contract Balances

The following table presents our accounts receivable, net, contract assets and deferred revenue balances (in thousands, except percentages):
 Change
 September 30,
2022		December 31, 2021$%
Accounts receivable, net$22,187 $17,850 $4,337 24 %
Contract assets12,710 14,231 (1,521)(11)
Deferred revenue60,475 35,143 25,332 72 
During the nine months ended September 30, 2022 our accounts receivable, net balance increased by $4.3 million, or 24%, primarily due to timing of billings and seasonality of our business. During the nine months ended September 30, 2022, our contract assets balance decreased by $1.5 million, or 11%, primarily due to our Thinkful service. During the nine months ended September 30, 2022, our deferred revenue balance increased by $25.3 million, or 72%, primarily due to acquired deferred revenue in conjunction with our acquisition of Busuu, increased bookings, and seasonality of our business.