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Revenue

12 Months Ended

Jul. 31, 2021

Revenue from Contract with Customer [Abstract]

Note 2—Revenue

Disaggregation of Revenue

The following table summarizes revenue by type of monetization mechanisms of the Zedge app for the periods presented:

		Fiscal Year Ended
		July 31,
		2021				2020
		(in thousands)
Advertising revenue		$	15,741			$	7,410
Paid subscription revenue			3,311				1,599
Other revenues			517				461
Total Revenues		$	19,569			$	9,470

Contract Balances

Deferred revenues

The Company records deferred revenues related to the unsatisfied performance obligations with respect to subscription revenue. As of July 31, 2021, the Company’s deferred revenue balance related to subscriptions was approximately $1,603,000, representing approximately 752,000 active subscribers. As of July 31, 2020, the Company’s deferred revenue balance related to subscriptions was approximately $1,169,000, representing approximately 504,000 active subscribers which was recognized during fiscal 2021.

The Company also records deferred revenues when users purchase or earn Zedge Credits. Unused Zedge Credits represent the value of the Company’s unsatisfied performance obligation to its users. Revenue is recognized when Zedge App users redeem Zedge Credits to acquire Zedge Premium content or upon expiration of the Zedge Credits upon 180 days of account inactivity. As of July 31, 2021, and 2020, the Company’s deferred revenue balance related to Zedge Premium was approximately $218,000 and $169,000, respectively.

Total deferred revenues increased $483,000 from $1,338,000 at July 31, 2020 to $1,821,000 at July 31, 2021, primarily due to the Company’s increased subscriptions sales as discussed above.

Significant Judgments

The advertising networks and advertising exchanges to which the Company sell its inventory track and report the impressions to Zedge and Zedge recognizes revenues based on these reports. The networks and exchanges base their payments off of those reports and Zedge independently compares the data to each of the client sites to validate the imported data and identify any differences. The number of impressions delivered by the advertising networks and advertising exchanges is determined at the end of each month, which resolves any uncertainty in the transaction price during the reporting period.

Practical Expedients

The Company expenses the fees retained by Google Play related to the subscriptions revenue when incurred because the duration of the contracts for which the Company pay commissions are less than one year. These costs are included in the selling, general and administrative expenses of the Consolidated Statements of Comprehensive Income (Loss).