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Revenue Recognition
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition The majority of the Company’s revenue is generated from monthly service revenues, which is inclusive of its platform usage pricing model, and related professional services from the sale of its services. Revenues are recognized when control of these services is transferred to its customers, in an amount that reflects the consideration it expects to be entitled to in exchange for those services. No single customer accounted for 10% or more of the Company’s total revenue for the three and nine months ended September 30, 2022 and 2021.
Remaining Performance Obligation

As of September 30, 2022, the aggregate amount of the total transaction price allocated in contracts with original duration of one year or greater to the remaining performance obligations was $430.5 million. Approximately 88% of the Company’s 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

The Company records deferred revenues when cash payments are received or due in advance of its performance. The increase in the deferred revenue balance as of September 30, 2022 is primarily driven by cash payments received or due in advance of its performance obligations, partially offset by $67.2 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2021.

The following table presents deferred revenue by revenue source:
Deferred Revenue
September 30,
2022		December 31,
2021
(In thousands)
Hosted services – Business$101,113 $94,107 
Hosted services – Consumer795 870 
Professional services – Business1,311 3,831 
Total deferred revenue - short term$103,219 $98,808 
Hosted services – Business171 — 
Professional services – Business$116 $54 
Total deferred revenue - long term$287 $54 
    
Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue source:
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
(In thousands)
Revenue:
Hosted services – Business$89,491 $93,234 $290,671 $271,966 
Hosted services – Consumer9,460 9,123 27,711 27,944 
Professional services – Business30,610 15,970 73,941 45,913 
Total revenue$129,561 $118,327 $392,323 $345,823 

Revenue by Geographic Location

The following table presents the Company’s revenues attributable to domestic and foreign operations for the periods presented:
Three Months EndedNine Months Ended
September 30,September 30,
2022202120222021
(In thousands)
United States$89,619 $80,096 $267,189 $229,802 
Other Americas (1)
2,470 4,009 10,484 11,917 
Total Americas92,089 84,105 277,673 241,719 
EMEA (2) (4)
16,107 23,399 57,890 68,092 
APAC (3)
21,365 10,823 56,760 36,012 
Total revenue$129,561 $118,327 $392,323 $345,823 
—————————————
(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 $13.1 million and $14.3 million for the three months ended September 30, 2022 and 2021, respectively, and from the Netherlands of $1.3 million and $1.2 million for the three months ended September 30, 2022 and 2021, respectively. Includes revenues from the United Kingdom of $41.6 million and $42.4 million for the nine months ended September 30, 2022 and 2021, respectively, and from the Netherlands of $4.8 million and $3.7 million for the nine months ended September 30, 2022 and 2021, respectively.

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company’s deferred revenue balance is related to Hosted services - Business revenue.

In some arrangements, the Company allows customers to pay for access to the Conversational Cloud over the term of the software license. The Company refers 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 the Company’s accounts receivable, unbilled receivables, contract acquisition costs, and deferred revenues are as follows (in thousands):
Accounts ReceivableUnbilled ReceivableContract Acquisition
Costs
(Non-current)		Deferred Revenue (Current)Deferred Revenue
(Non-current)
Opening balance as of December 31, 2021$69,259 $24,545 $40,675 $98,808 $54 
Increase (decrease), net5,863 1,074 (772)4,411 233 
Ending balance as of September 30, 2022$75,122 $25,619 $39,903 $103,219 $287 

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 the Company determines amounts are no longer collectible.
Allowance for Doubtful Accounts
(In thousands)
Balance as of December 31, 2021$6,338 
Additions charged to costs and expenses4,669 
Deductions/write-offs(2,496)
Balance as of September 30, 2022$8,511