Segment and Major Customers Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment and Major Customers Information

Segment and Major Customers Information

Disaggregation of revenue by geography

We conduct business globally and are primarily managed on a geographic basis. Our Chief Executive Officer, who is our chief operating decision maker, reviews financial information presented on a consolidated basis accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. We define our regions as United States ("U.S."), Europe, the Middle East, and Africa ("EMEA"), Asia Pacific and Japan ("APAC"), and all remaining geographies (primarily Latin America and Canada) included in Others. There are no segment managers who are held accountable for operations, operating results, and plans for levels, components, or types of products or services below the consolidated unit level. Accordingly, we are considered to be a single reportable segment and operating unit structure.

Revenue by geographic region based on the billing address is as follows (in thousands):

	Three Months Ended September 30,
	2020		2019		2020		2019		2020		2019		2020		2019
	U.S.				EMEA				APAC				Other
Product and related subscription and support	$	61,576	$	70,468	$	21,616	$	21,296	$	21,373	$	21,666	$	4,166	$	4,405
Platform, cloud subscription and managed services	50,173		42,593		10,937		9,197		9,969		7,461		4,026		2,738
Professional services	37,486		30,275		7,049		7,675		4,890		4,726		5,199		3,414
Total revenue	$	149,235	$	143,336	$	39,602	$	38,168	$	36,232	$	33,853	$	13,391	$	10,557

	Nine Months Ended September 30,
	2020		2019		2020		2019		2020		2019		2020		2019
	U.S.				EMEA				APAC				Other
Product and related subscription and support	$	180,071	$	207,359	$	62,698	$	67,197	$	62,660	$	64,785	$	12,794	$	14,431
Platform, cloud subscription and managed services	146,018		115,111		31,971		26,258		27,373		20,384		11,639		8,303
Professional services	108,945		87,132		21,174		20,435		12,722		12,045		15,017		10,626
Total revenue	$	435,034	$	409,602	$	115,843	$	113,890	$	102,755	$	97,214	$	39,450	$	33,360

We generate revenue from sales of our network, email and endpoint security solutions, network forensics appliances, cloud threat intelligence and analytics subscriptions, managed security, our Mandiant professional services, our Helix security operations platform, and our Mandiant security validation platform (formerly Verodin security instrumentation platform). We disaggregate our revenue into two main categories: (i) product, subscription, and support and (ii) professional services.

 Within the product, subscription and support category, we provide supplemental data to distinguish between solutions that are deployed on-premise on physical or virtual appliances, and solutions and managed services that are not dependent on appliances. These solutions include security delivered entirely through the cloud or delivered through hybrid on premise/cloud platform. Security solutions that are dependent on appliances are included in the product and related subscription and support sub-category, and solutions and managed services without dependency on appliances are included in the platform, cloud subscription and managed services sub-category.

In addition to our product, subscription and support solutions, we offer professional services, including incident response and other security consulting services, to our customers who have experienced a cyber security breach or desire assistance assessing the resilience of their information systems infrastructure. The majority of our professional services are offered on a time and materials basis, through a fixed fee arrangement, or on a retainer basis. Revenue from professional services is recognized as services are delivered. Revenue from our Expertise-on-Demand micro-services and some pre-paid professional services is deferred, and revenue is recognized when services are delivered.

The following table depicts the disaggregation of revenue according to revenue type and is consistent with how we evaluate our financial performance (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Product and related subscription and support	$	108,731	$	117,835	$	318,223	$	353,773
Platform, cloud subscription and managed services	75,105		61,988		217,001		170,055
Professional services	54,624		46,091		157,858		130,238
Total revenue	$	238,460	$	225,914	$	693,082	$	654,066

Long lived assets by geography

Long lived assets by geographic region based on physical location is as follows (in thousands):

	As of September 30, 2020		As of December 31, 2019
Property and equipment, net:
United States	$	77,435	$	85,287
International	6,562		8,525
Total property and equipment, net	$	83,997	$	93,812

For the three months ended September 30, 2020 and 2019, one distributor represented 11% and 10%, respectively, of our total revenue. For the three months ended September 30, 2020 and 2019, one reseller represented 17% and 14%, respectively, of our total revenue. Additionally, another distributor represented 12% of our total revenue for the three months ended September 30, 2019, but did not represent 10% or greater of our total revenue for the three months ended September 30, 2020.

For the nine months ended September 30, 2020, one distributor represented 11% of our total revenue, but did not represent 10% or greater of our total revenue for the nine months ended September 30, 2019. For the nine months ended September 30, 2020 and 2019, one reseller represented 15% and 14%, respectively, of our total revenue. Additionally, for the nine months ended September 30, 2020 and 2019, another distributor represented 9% and 14%, respectively, of our total revenue.

As of September 30, 2020, one customer represented 14% of our net accounts receivable balance, but did not represent 10% or greater of our net accounts receivable balance as of December 31, 2019.