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Revenue
 9 Months Ended
Sep. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Revenue by geography is based on the billing address of the customer. Aside from the United States, no other single country accounted for more than 10% of revenue for both the three and nine months ended September 30, 2023 and September 30, 2022. The following table presents the Company’s net revenue by geographic region:
Three months ended September 30,Nine months ended September 30,
2023202220232022
(in thousands)
United States$93,422 $80,173 $268,660 $231,838 
Asia Pacific18,935 14,365 52,633 38,954 
Europe10,493 9,536 31,877 28,131 
All other4,966 4,430 15,041 14,481 
Total revenue$127,816 $108,504 $368,211 $313,404 
The majority of the Company’s revenue is derived from enterprise customers. In the first quarter of 2023, the Company updated its methodology (“new methodology”) by which it calculates its customer count metrics, including Total Customer Count, Enterprise Customer Count and associated metrics.
Under the prior methodology, enterprise customers is defined as customers with revenue in excess of $100,000 over the trailing 12-month period. The following table presents the Company’s net revenue for enterprise and non-enterprise customers based on the prior methodology:
Three months ended September 30,Nine months ended September 30,
2023202220232022
(in thousands)
Enterprise customers$116,193 $97,265 $333,445 $279,619 
Non-enterprise customers11,623 11,239 34,766 33,785 
Total revenue$127,816 $108,504 $368,211 $313,404 
Under the new methodology, enterprise customers is defined as customers with annualized current quarter revenue in excess of $100,000. This is calculated by taking the sum of revenue for each customer within the quarter and multiplying it by four. The following table presents the Company's net revenue for enterprise and non-enterprise customers based on the new methodology:
Three months ended September 30,Nine months ended September 30,
2023202220232022
(in thousands)
Enterprise customers$117,327 $98,497 $337,359 $283,621 
Non-enterprise customers10,489 10,007 30,852 29,783 
Total revenue$127,816 $108,504 $368,211 $313,404 
Contract balances
The timing of revenue recognition may differ from the timing of invoicing to customers. The Company has an unconditional right to consideration when it invoices its customers and records a receivable. The Company records a contract asset, or a receivable, when revenue is recognized prior to invoicing. The Company records a contract liability, or deferred revenue, when revenue is recognized subsequent to invoicing.
Deferred revenue includes amounts billed to customers for which revenue has not been recognized and consists of the unearned portions of edge cloud platform usage and billings to customers for the Company’s security subscription services. Amounts that have been invoiced for annual subscriptions, but not collected, are recorded in accounts receivable and in unearned revenue or in revenue depending on whether services have been delivered to the customer. The Company’s payment terms and conditions vary by contract type, and generally range from 30 to 90 days.
The following table presents the Company’s contract assets and contract liabilities as of September 30, 2023 and as of December 31, 2022:
As of September 30, 2023As of December 31, 2022
(in thousands)
Contract assets
$409 $19 
Contract liabilities$37,459 $30,544 
The following table presents revenue recognized during the three and nine months ended September 30, 2023 and 2022 from amounts included in the contract liability at the beginning of the period:
Three months ended September 30,Nine months ended September 30,
2023202220232022
(in thousands)
Revenue recognized in the period from amounts included in contract liability at the beginning of the period$12,279 $10,627 $27,616 $23,231 
Remaining performance obligations
As of September 30, 2023, the aggregate amount of the transaction price in our contracts allocated to remaining performance obligations that are unsatisfied or partially unsatisfied was $247.6 million. This amount includes future committed revenue for periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced for which the related performance obligations have not been satisfied. The Company has elected to not provide certain information about its remaining performance obligations for service contracts with an original contract duration of one year or less. As of September 30, 2023, the Company expects to recognize approximately 82% of its remaining performance obligations over the next 12 months. The Company’s typical contractual term with its customers is one year, although terms may vary by contract.
Costs to obtain a contract
As of September 30, 2023 and December 31, 2022, the Company's costs to obtain contracts were as follows:
As of September 30,As of December 31,
20232022
(in thousands)
Deferred contract costs, net$60,634 $50,523 
During the three months ended September 30, 2023 and 2022, the Company recognized $4.1 million and $2.0 million of amortization related to deferred contract costs, respectively. During the nine months ended September 30, 2023 and 2022, the Company recognized $11.3 million and $6.0 million of amortization related to deferred contract costs, respectively. These costs are recorded within sales and marketing expenses on the accompanying condensed consolidated statements of operations.