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Revenue
6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
The following table depicts the disaggregation of revenue by geographic region based on the shipping address of customers (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
United States$36,380 $38,336 $72,929 $75,290 
EMEA7,935 9,362 16,082 18,858 
Other3,923 4,420 7,719 8,069 
Total revenue$48,238 $52,118 $96,730 $102,217 
The following table summarizes the foreign countries which contributed 10% or more of the total revenue (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
United Kingdom*10 %*11 %
*Represent less than 10% of total revenue
No single customer accounted for 10% or more of the total revenue during the three and six months ended June 30, 2022 and 2021. Additionally, no single customer accounted for 10% or more of accounts receivable as of June 30, 2022 and December 31, 2021.
Contract Balances
Accounts receivable: The Company records accounts receivable when the Company has a contractual right to consideration. In some arrangements, a right to consideration for the Company’s performance under the customer contract may occur before invoicing to the customer, resulting in an unbilled receivable. As of June 30, 2022 and December 31, 2021, unbilled receivables were included within accounts receivable, net of allowance for doubtful accounts and billing reserves on the condensed consolidated balance sheets and were not material.
Contract assets: The Company records a contract asset when the Company has satisfied a performance obligation but does not yet have an unconditional right to consideration. Contract assets are included in prepaid expenses and other current assets in the condensed consolidated balance sheets and were not material as of June 30, 2022 and December 31, 2021.
Contract liabilities: The Company defers its revenue when the Company has the right to invoice in advance of performance under a customer contract. The current portion of deferred revenue balances is recognized during the following 12-month period and the remaining portion is recorded as noncurrent, which is included in other long-term liabilities on the condensed consolidated balance sheet. The amount of revenue recognized in the three and six months ended June 30, 2022 that was included in deferred revenue at the beginning of the period was $27.0 million and $67.0 million, respectively.
Remaining Performance Obligations
The terms of the Company’s subscription agreements are primarily annual and, to a lesser extent, multi-year. The Company may bill for the full term in advance or on an annual, quarterly or monthly basis, depending on the terms of the agreement. As of June 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $154.8 million, which consists of both billed consideration in the amount of $91.3 million and unbilled consideration in the amount of $63.5 million that the Company expects to recognize as revenue. As of June 30, 2022, the Company expects to recognize 78% of its remaining performance obligations as revenue over the subsequent 12 months and the remainder thereafter.
Costs to Obtain a Contract
The Company capitalizes sales commissions and associated payroll taxes paid to internal sales personnel and third-party referral fees that are incremental costs resulting from obtaining a contract with a customer. These costs are recorded as deferred contract acquisition costs on the condensed consolidated balance sheets. The Company determines whether costs should be deferred based on its sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract.
Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of five years as the Company specifically anticipates renewals of customer contracts and commissions paid on renewal contracts are not commensurate with commissions paid on new customer contracts. Sales commissions paid upon renewal of customer contracts are amortized over the contractual renewal term. Amortization is recognized on a straight-line basis commensurate with the pattern of revenue recognition. Sales commissions paid related to professional services are amortized over the expected service period. The Company determines the period of benefit for commissions paid for the acquisition of the initial customer contract by taking into consideration the initial estimated customer life and the technological life of its platform and related significant features. Amortization of deferred contract acquisition costs was $3.9 million and $8.0 million or the three and six months ended June 30, 2022, respectively, and $3.8 million and $7.5 million for the three and six months ended June 30, 2021, respectively. Amortization of deferred contract acquisition costs is included in sales and marketing expense in the condensed consolidated statements of operations.
The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. The Company had no impairment losses relating to deferred contract acquisition costs during the periods presented.