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Deferred Revenue
9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue Revenue
Revenue by geography is generally based on the address of the customer as defined in the contract with the customer. The following table sets forth revenue by geographic area (in thousands):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
North America$52,041 $27,553 $141,352 $72,150 
Europe, Middle East and Africa2,264 1,155 8,843 2,832 
Other international regions2,848 989 6,772 2,716 
Total revenue$57,153 $29,697 $156,967 $77,698 
Deferred Revenue
Deferred revenue, which is a contract liability, consists primarily of payments received and accounts receivable recorded in advance of revenue recognition under the Company’s contracts with customers and is recognized as the revenue recognition criteria are met.
The following table represents a roll forward of the Company’s deferred revenue (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Deferred revenue, beginning of period$28,821 $12,013 $13,929 $11,855 
Acquired deferred revenue1,173 403 10,081 403 
Additions to deferred revenue52,098 25,345 146,337 62,041 
Recognized revenue in the period(51,206)(23,148)(139,461)(59,686)
Deferred revenue, end of period$30,886 $14,613 $30,886 $14,613 
The acquired deferred revenue balance of $1.2 million for the three months ended September 30, 2022 relates to a measurement period adjustment to the preliminary purchase price allocation for the acquisition of Tile, Inc. Refer to Note 7 “Business Combinations” for additional information.
Costs Capitalized to Obtain Contracts
The Company recognizes as an asset the incremental costs of obtaining a contract with a customer if the entity expects to recover those costs. The Company determined that its costs to obtain contracts were both direct and incremental. These costs are attributable to the Company’s largest channel partners.
Renewal contracts are considered non-commensurate with new contracts as the Company pays a different commission rate for renewals. Accordingly, the guidance requires that specifically anticipated renewal periods should be taken into consideration in determining the required amortization period. Specifically, under the guidance of ASC 340-40, the Company is required to estimate the specifically anticipated renewals after the initial contract to which the initial commission asset relates. The total amortization period is then equal to the initial contractual term plus all specifically anticipated renewals that relate to the initial commission asset. Based upon its assessment of historical data and other factors, the Company concluded that its average customer life was approximately two to three years depending on the subscription type, which is used as the amortization period for all capitalized contract acquisition costs for that subscription type.
The following table represents a roll forward of the Company’s costs capitalized to obtain contracts, net (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Capitalized costs to obtain contracts, beginning of period$1,776 $2,743 $1,649 $3,951 
Acquired costs capitalized to obtain contracts— — 848 — 
Additions to capitalized costs to obtain contracts979 334 1,929 1,381 
Amortization of capitalized costs to obtain contracts(748)(909)(2,419)(3,164)
Capitalized costs to obtain contracts, end of period$2,007 $2,168 $2,007 $2,168