Quarterly report pursuant to Section 13 or 15(d)

REVENUE

v3.21.2
REVENUE
 9 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Disaggregation of Revenue
The following table disaggregates revenue by service type and the timing of when these services are provided to the member or customer (in thousands):
Three Months Ended September 30, Nine Months Ended September 30,
2021 2020 2021 2020
Services transferred at a point in time:
Flights, net of discounts and fees $ 218,360  $ 140,280  $ 621,494  $ 343,571 
Aircraft management 55,388  36,107  151,405  87,737 
Other 6,679  2,313  16,418  6,609 
Services transferred over time:
Memberships 17,982  13,345  49,144  39,787 
Aircraft management 2,617  2,295  7,435  5,679 
Other 952  441  3,319  1,825 
Total $ 301,978  $ 194,781  $ 849,215  $ 485,208 
Revenue in the condensed consolidated statements of operations is presented net of discounts and incentives of $5.0 million and $12.5 million, for the three and nine months ended September 30, 2021, respectively, and $2.8 million and $6.4 million for the three and nine months ended September 30, 2020, respectively.
Contract Balances
Receivables from member and customer contracts are included within accounts receivable, net. As of September 30, 2021 and December 31, 2020, gross receivables from members and customers were $60.5 million and $38.6 million, respectively. As of September 30, 2021 and December 31, 2020, undeposited funds were $14.0 million and $14.1 million, respectively. As of September 30, 2021 and December 31, 2020, the allowance for expected credit losses was $5.5 million and $2.3 million, respectively.
Deferred revenue consists of the following (in thousands):
  September 30, 2021 December 31, 2020
Flights - Prepaid Blocks and jet cards $ 538,695  $ 609,490 
Memberships - annual dues 36,771  32,016 
Memberships - initiation fees 4,034  3,870 
Flights - credits 6,780  7,291 
Other 987  411 
Deferred revenue - total 587,267  653,078 
Less: Deferred revenue - current (585,319) (651,096)
Deferred revenue - non-current $ 1,948  $ 1,982 
Changes in deferred revenue for the nine months ended September 30, 2021 were as follows (in thousands):
Deferred revenue - beginning balance $ 653,078 
Amounts deferred during the period 611,985 
Revenue recognized from amounts included in the deferred revenue beginning balance (368,922)
Revenue from current period sales (308,874)
Deferred revenue - ending balance $ 587,267 
Revenue expected to be recognized in future periods for performance obligations that are unsatisfied, or partially unsatisfied, as of September 30, 2021 approximates $101.7 million, $393.2 million, $46.3 million and $46.0 million for 2021, 2022, 2023 and 2024, respectively.
Costs to Obtain a Contract
Capitalized costs related to sales commissions and referral fees were $3.4 million and $7.4 million for the three and nine months ended September 30, 2021, respectively, and $0.1 million and $2.2 million for the three and nine months ended September 30, 2020, respectively.
As of September 30, 2021 and December 31, 2020, capitalized sales commissions and referral fees of $6.2 million and $5.0 million, respectively, are in prepaid expenses and other current assets and $1.0 million and $0.8 million, respectively, are in other non-current assets on the condensed consolidated balance sheets. Amortization expense related to capitalized sales commissions and referral fees included in sales and marketing expense in the condensed consolidated statements of operations was $2.4 million and $5.9 million for the three and nine months ended September 30, 2021, respectively, and $0.2 million and $3.9 million for the three and nine months ended September 30, 2020, respectively.