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Revenue | 12 Months Ended
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Dec. 31, 2023
Revenue from Contract with Customer [Abstract] |
Revenue | Revenue Disaggregation of 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 the years ended December 31, 2023, 2022 and 2021. The following table presents the Company’s net revenue by geographic region:
|  | Year ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (in thousands)
United States |  | $ | 370,424 |  |  | $ | 316,149 |  |  | $ | 260,399 |
Asia Pacific |  | 72,873 |  |  | 58,073 |  |  | 39,496 |
Europe |  | 42,770 |  |  | 38,469 |  |  | 35,177 |
All other |  | 19,921 |  |  | 20,034 |  |  | 19,258 |
Total revenue |  | $ | 505,988 |  |  | $ | 432,725 |  |  | $ | 354,330 |
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:
|  | Year ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (in thousands)
Enterprise customers |  | $ | 458,472 |  |  | $ | 386,853 |  |  | $ | 313,360 |
Non-enterprise customers |  | 47,516 |  |  | 45,872 |  |  | 40,970 |
Total revenue |  | $ | 505,988 |  |  | $ | 432,725 |  |  | $ | 354,330 |
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:
|  | Year ended December 31,
|  | 2023 |  | 2022 |  | 2021
|  | (in thousands)
Enterprise customers |  | $ | 464,452 |  |  | $ | 393,152 |  |  | $ | 315,918 |
Non-enterprise customers |  | 41,536 |  |  | 39,573 |  |  | 38,412 |
Total revenue |  | $ | 505,988 |  |  | $ | 432,725 |  |  | $ | 354,330 |
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 December 31, 2023 and 2022:
| As of December 31, 2023 |  | As of December 31, 2022
| (in thousands)
Contract assets | $ | 621 |  |  | $ | 19 |
Contract liabilities | $ | 38,150 |  |  | $ | 30,544 |
The following table presents revenue recognized during the years ended December 31, 2023 and 2022 from amounts included in the contract liability at the beginning of the period:
| Year ended December 31,
| 2023 |  | 2022
| (in thousands)
Revenue recognized in the period from amounts included in contract liability at the beginning of the period | $ | 28,616 |  |  | $ | 26,274 |
Remaining performance obligations As of December 31, 2023, the aggregate amount of the transaction price in the Company's contracts allocated to remaining performance obligations that were unsatisfied or partially unsatisfied was $235.7 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 December 31, 2023, the Company expects to recognize approximately 80% 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 December 31, 2023 and December 31, 2022, the Company’s costs to obtain contracts were as follows:
| As of December 31, 2023 |  | As of December 31, 2022
| (in thousands)
Deferred contract costs, net | $ | 61,981 |  |  | $ | 50,523 |
During the years ended December 31, 2023, 2022 and 2021, the Company recognized $15.5 million, $8.9 million and $6.3 million of amortization related to deferred contract costs, respectively. These costs are recorded within sales and marketing expenses on the accompanying consolidated statements of operations.

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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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