Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Schedule of Deferred Revenues and Contract Balances

The opening and closing balances of the Company's accounts receivable, unbilled receivables, contract acquisition costs and deferred revenues are as follows (amounts in thousands):



	Accounts Receivable ⁽¹⁾			Unbilled Receivable ⁽¹⁾			Contract Acquisition Costs noncurrent		Deferred Revenue (current)		Deferred Revenue (long term)
Opening Balance as of December 31, 2019	$	70,318		$	17,302		$	31,965	$	88,751	$	438
(Decrease) Increase, net	(8,222		)	(4,211		)	4,178		3,339		2,684
Ending Balance as of June 30, 2020	$	62,096		$	13,091		$	36,143	$	92,090	$	3,122

⁽¹⁾ These accounts include the $0.7 million adjustment in connection with the adoption of ASU 2016-13 (Topic 326).

Accounts Receivable, Net

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities, which are included in accrued liabilities and other long-term liabilities) on the condensed consolidated balance sheet. Under the typical payment terms of our over time contracts, the customer pays us either performance-based payments or progress payments. Amounts billed and due from our customers are classified as receivables on the condensed consolidated balance sheet. Accounts receivable is presented net of an allowance for doubtful accounts and sales reserve of $4.4 million and $2.9 million at June 30, 2020, respectively and $3.1 million and $1.1 million at December 31, 2019, respectively.

An allowance for doubtful accounts is established to recognize expected credit losses on accounts receivable balances. Judgment is required in the estimation of the allowance and the Company evaluates the collectability of its accounts receivable based on a combination of factors. If the Company becomes aware of a customer’s inability to meet its financial obligations, a specific allowance is recorded to reduce the net receivable to the amount reasonably believed to be collectible from the customer. For all other customers, the Company uses an aging schedule and recognize allowances for doubtful accounts based on the creditworthiness of the debtor, the age and status of outstanding receivables, the current business environment and its historical collection experience adjusted for current expectations for the customers or industry. Accounts receivable are written off against the allowance for uncollectible accounts when the Company determines amounts are no longer collectible.



Allowance for doubtful accounts (in thousands):	As of June 30, 2020
Balance at beginning of year, as adjusted for the adoption of ASU 2016-13 (Topic 326)	$	3,799
Accruals for credit loss charged to expense, net	629
Balance at end of period	$	4,428

The following table presents deferred revenue by revenue source (amounts in thousands):



	Deferred Revenue
	As of June 30, 2020		As of December 31, 2019
Hosted services – Business	$	88,864	$	82,892
Hosted services – Consumer	765		687
Professional services – Business	2,461		5,172
Total deferred revenue - short term	$	92,090	$	88,751

Hosted services – Business	329		—
Professional services – Business	2,793		438
Total deferred revenue - long term	$	3,122	$	438

Schedule of Revenue by Geographic Region

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented (amounts in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
United States	$	59,559	$	41,315	$	108,109	$	79,904
Other Americas ⁽¹⁾	3,048		1,883		5,068		4,652
Total Americas	62,607		43,198		113,177		84,556
EMEA ^{(2) (4)}	19,692		19,911		39,182		38,024
APAC ⁽³⁾	9,304		7,850		17,332		14,781
Total revenue	$	91,603	$	70,959	$	169,691	$	137,361

⁽¹⁾ Canada, Latin America and South America

⁽²⁾ Europe, the Middle East and Africa (“EMEA”)

⁽³⁾ Asia-Pacific (“APAC”)

⁽⁴⁾ Includes revenues from the United Kingdom of $12.5 million and $13.0 million for the three months ended June 30, 2020 and 2019, respectively, and from the Netherlands of $0.6 million and $2.5 million for the three months ended June 30, 2020 and 2019, respectively. Includes revenues from the United Kingdom of $25.1 million and $24.7 million for the six months ended June 30, 2020 and 2019, respectively, and from Netherlands of $1.9 million and $5.0 million for the six months ended June 30, 2020 and 2019, respectively.

Schedule of Disaggregation of Revenue

The following table presents the Company's revenues disaggregated by revenue source (amounts in thousands):



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Revenue:
Hosted services – Business	$	72,382	$	53,672	$	133,435	$	105,209
Hosted services – Consumer	7,587		6,124		13,826		11,531
Professional services	11,634		11,163		22,430		20,621
Total revenue	$	91,603	$	70,959	$	169,691	$	137,361

Schedule of Accounts Receivable, Allowance for Doubtful Accounts

Accounts receivable are written off against the allowance for uncollectible accounts when the Company determines amounts are no longer collectible.



Allowance for doubtful accounts (in thousands):	As of June 30, 2020
Balance at beginning of year, as adjusted for the adoption of ASU 2016-13 (Topic 326)	$	3,799
Accruals for credit loss charged to expense, net	629
Balance at end of period	$	4,428