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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition 
The majority of the Company’s revenue is generated from hosted 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 total revenue for the three and six months ended June 30, 2023 and 2022.

Remaining Performance Obligation

As of June 30, 2023, 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 $326.3 million. Approximately 89% 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 June 30, 2023 is primarily driven by cash payments received or due in advance of its performance obligations, partially offset by $73.0 million of revenues recognized that were included in the deferred revenue balance as of December 31, 2022.
The following table presents deferred revenue by revenue source:

June 30,
2023		December 31,
2022
(In thousands)
Hosted services $99,617 $83,561 
Professional services 799 933 
Total deferred revenue - short term$100,416 $84,494 
Hosted services $196 $— 
Professional services 105 174 
Total deferred revenue - long term$301 $174 
    
Disaggregated Revenue

The following table presents the Company’s revenues disaggregated by revenue source:

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
(In thousands)
Revenue:
Hosted services (1)
$81,286 $103,985 $168,624 $219,431 
Professional services 16,236 28,580 36,559 43,331 
Total revenue$97,522 $132,565 $205,183 $262,762 
—————————————
(1)On March 20, 2023, the Company completed the sale of Kasamba and therefore ceased recognizing revenue related to Kasamba effective on the transaction close date. Further, this sale eliminated the entire Consumer segment, as a result of which revenue is presented within a single consolidated segment. Hosted services includes $7.2 million for the six months ended June 30, 2023, and $9.1 million and $18.3 million of revenue for the three and six months ended June 30, 2022, respectively, relating to Kasamba.

Revenue by Geographic Location

The Company is domiciled in the United States and has international operations around the globe. 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,
2023202220232022
(In thousands)
United States$68,855 $90,433 $137,364 $177,570 
Other Americas (1)
2,052 2,975 5,857 8,014 
Total Americas70,907 93,408 143,221 185,584 
EMEA (2) (3)
14,933 17,963 31,115 41,783 
APAC (4)
11,682 21,194 30,847 35,395 
Total revenue$97,522 $132,565 $205,183 $262,762 
—————————————
(1)Canada, Latin America and South America
(2)Europe, the Middle East and Africa (“EMEA”)
(3)Includes revenues from the United Kingdom of $15.3 million and $13.8 million for the three months ended June 30, 2023 and 2022, respectively, and from the Netherlands of $0.3 million and $2.2 million for the three months ended June 30, 2023 and 2022, respectively. Includes revenues from the United Kingdom of $30.6 million and $28.5 million for the six months ended June 30, 2023 and 2022, respectively, and from the Netherlands of $0.6 million and $3.5 million for the six months ended June 30, 2023 and 2022, respectively.
(4)Asia-Pacific (“APAC”)

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 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 sheets. Contract acquisition costs represent prepaid sales commissions. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, 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, 2021$69,259 $24,545 $40,675 $98,808 $54 
  Increase (decrease), net(15,791)8,524 3,129 (14,314)120 
Opening balance as of December 31, 2022$53,468 $33,069 $43,804 $84,494 $174 
Increase (decrease), net22,868 (4,234)(4,339)15,922 127 
Ending balance as of June 30, 2023$76,336 $28,835 $39,465 $100,416 $301 


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)
Allowance for doubtful accounts:
Balance at beginning of the year$9,239 
Additions charged to costs and expenses1,809 
Deductions/write-offs(2,001)
Balance as of June 30, 2023$9,047