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Segment and geographic information
 9 Months Ended
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,
2022202120222021
Revenue
Consumer$74,567 $79,198 $240,364 $251,035 
Enterprise83,865 50,365 223,403 129,171 
Total Revenue$158,432 $129,563 $463,767 $380,206 
Segment cost of revenue
Consumer35,901 37,243 111,909 118,606 
Enterprise27,448 17,429 74,293 44,842 
Total segment cost of revenue$63,349 $54,672 $186,202 $163,448 
Segment gross profit
Consumer38,666 41,955 128,455 132,429 
Enterprise56,417 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 software3,261 2,501 9,000 6,689 
Amortization of intangible assets725 293 2,175 293 
Depreciation134 170 513 585 
Stock-based compensation1,611 350 3,440 887 
Total reconciling items5,731 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,
2022202120222021
North America$65,809 $51,209 $189,284 $148,425 
Europe, Middle East, Africa45,788 39,050 139,729 124,666 
Asia Pacific35,210 29,200 101,125 77,509 
Latin America11,625 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,
20222021
North America$14,590 $6,922 
Rest of world6,098 2,832 
Total long-lived assets$20,688 $9,754