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Segment and geographic information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment and geographic information | 16. Segment and geographic information The Company’s Chief Executive Officer is its CODM. The CODM reviews separate financial information presented for the Company’s two segments, Consumer and Enterprise, in order to allocate resources and evaluate the Company’s financial performance. The Consumer segment targets individual learners seeking to obtain hands-on learning, gain valuable job skills to advance their professional careers, or learn a new personal skill. The Enterprise segment is focused on helping business and government customers upskill and reskill their employees and public servants. The CODM measures the performance of each segment primarily based on segment revenue and segment gross profit. Segment gross profit, as presented below, is defined as segment revenue less segment cost of revenue. Segment cost of revenue includes content costs, hosting and platform costs, customer support services, and payment processing fees that are allocable to each segment. Segment gross profit excludes amortization of capitalized software, depreciation, stock-based compensation, and amortization of intangible assets allocated to cost of revenue as the CODM does not include the information in his measurement of the performance of the operating segments. Additionally, the Company does not allocate sales and marketing expenses, research and development expenses, and general and administrative expenses because the CODM does not include the information in his measurement of the performance of the operating segments. The Udemy platform supports the operations of each segment. The CODM does not use asset information by segments to assess performance and make decisions regarding allocation of resources, and the Company does not track its long-lived assets by segment. The geographic identification of these assets is set forth below. Financial information for each reportable segment was as follows (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Revenue |  |  |  |  |  |  |
Consumer | $ | 74,567 |  |  | $ | 79,198 |  |  | $ | 240,364 |  |  | $ | 251,035 |
Enterprise | 83,865 |  |  | 50,365 |  |  | 223,403 |  |  | 129,171 |
Total Revenue | $ | 158,432 |  |  | $ | 129,563 |  |  | $ | 463,767 |  |  | $ | 380,206 |
Segment cost of revenue |  |  |  |  |  |  |
Consumer | 35,901 |  |  | 37,243 |  |  | 111,909 |  |  | 118,606 |
Enterprise | 27,448 |  |  | 17,429 |  |  | 74,293 |  |  | 44,842 |
Total segment cost of revenue | $ | 63,349 |  |  | $ | 54,672 |  |  | $ | 186,202 |  |  | $ | 163,448 |
Segment gross profit |  |  |  |  |  |  |
Consumer | 38,666 |  |  | 41,955 |  |  | 128,455 |  |  | 132,429 |
Enterprise | 56,417 |  |  | 32,936 |  |  | 149,110 |  |  | 84,329 |
Total segment gross profit | $ | 95,083 |  |  | $ | 74,891 |  |  | $ | 277,565 |  |  | $ | 216,758 |
Reconciliation of segment gross profit to gross profit |  |  |  |  |  |
Amortization of capitalized software | 3,261 |  |  | 2,501 |  |  | 9,000 |  |  | 6,689 |
Amortization of intangible assets | 725 |  |  | 293 |  |  | 2,175 |  |  | 293 |
Depreciation | 134 |  |  | 170 |  |  | 513 |  |  | 585 |
Stock-based compensation | 1,611 |  |  | 350 |  |  | 3,440 |  |  | 887 |
Total reconciling items | 5,731 |  |  | 3,314 |  |  | 15,128 |  |  | 8,454 |
Total gross profit | $ | 89,352 |  |  | $ | 71,577 |  |  | $ | 262,437 |  |  | $ | 208,304 |
Geographic information Revenue: The following table summarizes the revenue by region based on the billing address of the Company’s customers (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
North America | $ | 65,809 |  |  | $ | 51,209 |  |  | $ | 189,284 |  |  | $ | 148,425 |
Europe, Middle East, Africa | 45,788 |  |  | 39,050 |  |  | 139,729 |  |  | 124,666 |
Asia Pacific | 35,210 |  |  | 29,200 |  |  | 101,125 |  |  | 77,509 |
Latin America | 11,625 |  |  | 10,104 |  |  | 33,629 |  |  | 29,606 |
Total revenue | $ | 158,432 |  |  | $ | 129,563 |  |  | $ | 463,767 |  |  | $ | 380,206 |
No single country other than the United States represented 10% or more of the Company’s total revenue during the three and nine months ended September 30, 2022 and 2021. Long-lived assets: The following table presents the Company’s long-lived assets, which consist of tangible property and equipment, net of depreciation, and operating lease ROU assets, by geographic region (in thousands):
| September 30, |  | December 31,
| 2022 |  | 2021
North America | $ | 14,590 |  |  | $ | 6,922 |
Rest of world | 6,098 |  |  | 2,832 |
Total long-lived assets | $ | 20,688 |  |  | $ | 9,754 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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