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Revenue Recognition
 6 Months Ended
Jun. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
The majority of our revenue is generated from monthly service revenues, which is inclusive of our platform usage pricing model, and related professional services from the sale of our services. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. No single customer accounted for 10% or more of our total revenue for the six months ended June 30, 2021.

Remaining Performance Obligation

As of June 30, 2021, the aggregate amount of the total transaction price allocated in contracts with original duration of greater than one year to the remaining performance obligations was $345.8 million. Approximately 92% of our remaining performance obligations is expected to be recognized during the next 24 months, with the balance recognized thereafter. The aggregate balance of unsatisfied performance obligations represents contracted revenue that has not yet been recognized, and does not include contract amounts that are cancellable by the customer, amounts associated with optional renewal periods, and any amounts related to performance obligations, which are billed and recognized as they are delivered.

Deferred Revenues

We record deferred revenues when cash payments are received or due in advance of our performance. The increase in the deferred revenue balance as of June 30, 2021 is primarily driven by cash payments received or due in advance of our performance obligations, partially offset by $81.9 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2020.
The following table presents deferred revenue by revenue source:
Deferred Revenue
June 30,
2021		December 31,
2020
(In thousands)
Hosted services – Business$105,239 $86,144 
Hosted services – Consumer889 835 
Professional services – Business1,543 1,869 
Total deferred revenue - short term$107,671 $88,848 
Professional services – Business489 409 
Total deferred revenue - long term$489 $409 
    
Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue source:
Three Months EndedSix Months Ended
June 30,June 30,
2021202020212020
(In thousands)
Revenue:
Hosted services – Business$95,092 $72,382 $178,732 $133,435 
Hosted services – Consumer9,810 7,587 18,821 13,826 
Professional services – Business14,703 11,634 29,943 22,430 
Total revenue$119,605 $91,603 $227,496 $169,691 

Revenue by Geographic Location

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented:
Three Months Ended June 30,Six Months Ended
June 30,June 30,
2021202020212020
(In thousands)
United States$80,924 $59,559 $149,706 $108,109 
Other Americas (1)
3,995 3,048 7,908 5,068 
Total Americas84,919 62,607 157,614 113,177 
EMEA (2) (4)
22,933 19,692 44,693 39,182 
APAC (3)
11,753 9,304 25,189 17,332 
Total revenue$119,605 $91,603 $227,496 $169,691 
——————————————
(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 $14.8 million and $12.5 million for the three months ended June 30, 2021 and 2020, respectively, and from the Netherlands of $1.2 million and $0.6 million for the three months ended June 30, 2021 and 2020, respectively. Includes revenues from the United Kingdom of $28.1 million and $25.1 million for the six months ended June 30, 2021 and 2020, respectively, and from the Netherlands of $2.5 million and $1.9 million for the six months ended June 30, 2021 and 2020, respectively.
Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of our deferred revenue balance is related to Hosted Services - Business Revenue.

In some arrangements, we allow customers to pay for access to the Conversational Cloud over the term of the software license. We refer to these as subscription transactions. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables, anticipated to be invoiced in the next twelve months, are included in accounts receivable on the condensed consolidated balance sheet. Contract acquisition costs represent prepaid sales commissions. The opening and closing balances of our accounts receivable, unbilled receivables, contract acquisition costs, and deferred revenues are as follows:
Accounts ReceivableUnbilled ReceivableContract Acquisition
Costs
(Non-current)		Deferred Revenue (Current)Deferred Revenue
(Non-current)
(In thousands)
Opening balance as of December 31, 2020$61,801 $18,622 $41,021 $88,848 $409 
(Decrease) increase, net(2,936)12,320 2,441 18,823 80 
Ending balance as of June 30, 2021$58,865 $30,942 $43,462 $107,671 $489 

Accounts Receivable, Net

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of probable credit losses in the Company’s existing accounts receivable. The Company determines the allowance based on historical write-off experience. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable are written off against the allowance for uncollectible accounts when we determine amounts are no longer collectible.
Allowance for Doubtful Accounts
(In thousands)
Balance as of December 31, 2020$5,344 
Additions charged to costs and expenses1,599 
Deductions/write-offs(1,106)
Balance as of June 30, 2021$5,837