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Revenue Recognition | 12 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | 3. Revenue Recognition Disaggregation of Revenue The following table summarizes revenue by region in which our merchants’ headquarters are located:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| Amount |  | Percentage of Revenue |  | Amount |  | Percentage of Revenue |  | Amount |  | Percentage of Revenue
| (in thousands, except where indicated)
United States | $ | 182,806 |  |  | 61 | % |  | $ | 163,920 |  |  | 63 | % |  | $ | 163,681 |  |  | 71 | %
Europe, the Middle East and Africa (“EMEA”)* | 80,547 |  |  | 27 |  |  | 71,443 |  |  | 27 |  |  | 44,850 |  |  | 20 |
Asia-Pacific (“APAC”) | 16,699 |  |  | 6 |  |  | 12,005 |  |  | 5 |  |  | 7,416 |  |  | 3 |
Americas | 17,558 |  |  | 6 |  |  | 13,879 |  |  | 5 |  |  | 13,194 |  |  | 6 |
Total revenue | $ | 297,610 |  |  | 100 | % |  | $ | 261,247 |  |  | 100 | % |  | $ | 229,141 |  |  | 100 | %
_________________ *Revenue recognized from merchants whose headquarters are in Israel, which is our country of domicile, was $1.3 million, $3.3 million, and $2.4 million for the years ended December 31, 2023, 2022, and 2021, respectively. The following table summarizes revenue based on the nature and type of service provided to our merchants:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| Amount |  | Percentage of Revenue |  | Amount |  | Percentage of Revenue |  | Amount |  | Percentage of Revenue
| (in thousands, except where indicated)
Fraud review service revenue (ASC 606) | $ | 167,278 |  |  | 56 | % |  | $ | 156,040 |  |  | 60 | % |  | $ | 132,261 |  |  | 58 | %
Indemnification guarantee service revenue (ASC 460) | 130,332 |  |  | 44 |  |  | 105,207 |  |  | 40 |  |  | 96,880 |  |  | 42 |
Total revenue | $ | 297,610 |  |  | 100 | % |  | $ | 261,247 |  |  | 100 | % |  | $ | 229,141 |  |  | 100 | %
We primarily generate revenue from our Chargeback Guarantee offering. Revenue generated from other offerings are not material. The allocation of consideration between fraud review service revenue and indemnification guarantee service revenue is a function of the fair value of our chargeback guarantee which represents what we would need to pay a third party to relieve ourselves from our obligations under issued guarantees. The fair value of the chargeback guarantee is primarily determined by utilizing the historical percentage of guarantees issued that resulted in a chargeback plus a risk premium fee that we would have incurred from a third-party in order to relieve ourselves from our legal obligation under the guarantee. Refer to Item 5. “Operating and Financial Review and Prospects — Critical Accounting Policies and Estimates.” Changes in the percentage of revenue that are recorded as fraud review service revenue and indemnification guarantee service revenue are a function of changes in the aforementioned fair value of the chargeback guarantee and changes in the speed in which we resolve chargeback claims which impacts the systematic and rational approach that we utilize to record revenue associated with our guarantee obligation. Cost to Obtain a Contract The following table represents a roll-forward of deferred contract acquisition costs:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Beginning balance | $ | 14,383 |  |  | $ | 10,365 |  |  | $ | 6,263 |
Additions to deferred contract acquisition costs | 8,894 |  |  | 9,707 |  |  | 7,744 |
Amortization of deferred contract acquisition costs | (7,715) |  |  | (5,689) |  |  | (3,642) |
Ending balance | $ | 15,562 |  |  | $ | 14,383 |  |  | $ | 10,365 |
Cost to Fulfill a Contract The following table represents a roll-forward of deferred contract fulfillment costs that are included within in other assets, noncurrent on the consolidated balance sheets:
| Year Ended December 31,
| 2023 |  | 2022 |  | 2021
| (in thousands)
Beginning balance | $ | 3,673 |  |  | $ | 2,930 |  |  | $ | 2,166 |
Additions to deferred contract fulfillment costs | 2,635 |  |  | 2,189 |  |  | 1,789 |
Amortization of deferred contract fulfillment costs | (1,852) |  |  | (1,446) |  |  | (1,025) |
Ending balance | $ | 4,456 |  |  | $ | 3,673 |  |  | $ | 2,930 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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