v3.25.0.1
Deferred Revenue
 12 Months Ended
Dec. 31, 2024
Revenue from Contract with Customer [Abstract]  
Deferred Revenue Deferred Revenue
 December 31, 2024December 31, 2023
(in US $ millions)
Balance, beginning of the year498 564 
Deferral of revenue(1)
207 213 
Recognition of deferred revenue from beginning balance(2)
(275)(279)
Balance, end of the year430 498 
(1) Deferral of revenue includes only the portion of collections from merchant billings throughout the year, primarily related to subscription fees, for which the services have not yet been provided. The amounts primarily exclude subscription revenue that has both been deferred and recognized within the period presented.

(2) Includes impairment of deferred revenue due to the sales of Shopify's logistics businesses (see Note 4) during the year ended December 31, 2023.

December 31, 2024December 31, 2023
(in US $ millions)
Current portion283 302 
Long-term portion147 196 
430 498 
The opening balances of current and long-term deferred revenue were $296 million and $268 million, respectively, as of January 1, 2023.
As of December 31, 2024, the long-term deferred revenue, excluding non-cash consideration received, will be recognized ratably over the remaining terms of the contracts with the customers, which range from two to three years.
The Company has received non-cash consideration in the form of equity investments in exchange for services to be rendered as part of strategic partnerships. As the Company is required to provide referral services and other services to support the partners' merchant offerings over the period of the performance obligations, revenue is deferred and recognized over time on a ratable basis over the expected terms of the contracts.
The table below summarizes the gross changes in deferred revenue associated with this non-cash consideration received for the years ended December 31, 2024 and 2023:
 December 31, 2024December 31, 2023
(in US $ millions)
Balance, beginning of the year284 382 
Non-cash consideration received in exchange for services— 60 
Revenue recognized related to non-cash consideration(94)(158)
Balance, end of the year190 284 
Current portion50 95 
Long term portion140 189 
190 284 
The Company will recognize this revenue ratably over the remaining terms of the respective strategic partnership service agreements, which range from one to five years.