ZILLOW GROUP INC

Note 18. Revenue and Contract Balances

We recognize revenue when or as we satisfy our performance obligations by transferring control of the promised products or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products or services. See Note 2 for additional information regarding our revenue recognition accounting policies.

Beginning in 2023, our chief executive officer, who acts as the chief operating decision maker, began to manage our business, make operating decisions and evaluate operating performance on the basis of the company as a whole, instead of on a segment basis as he did prior to 2023. Accordingly, this change resulted in revisions to the nature and substance of information regularly provided to and used by the chief operating decision maker. This serves to align our reported results with our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating real estate transactions. As a result, we have determined that we have a single reportable segment. In addition, our revenue is classified into four categories: Residential, Rentals, Mortgages and Other. Certain prior period amounts have been revised to reflect these changes.

The Residential revenue category primarily includes revenue for our Premier Agent and new construction marketplaces, as well as revenue from the sale of other advertising and business technology solutions for real estate professionals, including StreetEasy for-sale product offerings, ShowingTime+ and Follow Up Boss. Our Rentals and Mortgages revenue categories remain consistent with our historical presentation, and our Other revenue category primarily includes revenue generated from display advertising.

Disaggregation of Revenue

The following table presents our revenue disaggregated by category for the periods presented (in millions):

Contract Balances

Contract assets totaled $90 million and $71 million as of December 31, 2023 and December 31, 2022, respectively.

For the year ended December 31, 2023, the opening balance of deferred revenue was $44 million, of which $43 million was recognized as revenue during the period. For the year ended December 31, 2022, the opening balance of deferred revenue was $51 million, of which $51 million was recognized as revenue during the period.