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Revenue Recognition
 9 Months Ended
Sep. 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 nine months ended September 30, 2023 and 2022.

Remaining Performance Obligation

As of September 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 $312.9 million. Approximately 91% 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, 2023 is primarily driven by cash payments received or due in advance of its performance obligations, partially offset by $83.7 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:

September 30,
2023		December 31,
2022
(In thousands)
Hosted services $96,022 $83,561 
Professional services 761 933 
Total deferred revenue - short term$96,783 $84,494 
Hosted services $111 $— 
Professional services 282 174 
Total deferred revenue - long term$393 $174 
    
Disaggregated Revenue

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

Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(In thousands)
Revenue:
Hosted services (1)
$85,747 $98,951 $254,371 $318,382 
Professional services 15,585 30,610 52,144 73,941 
Total revenue$101,332 $129,561 $306,515 $392,323 
—————————————
(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 nine months ended September 30, 2023, and $9.5 million and $27.7 million of revenue for the three and nine months ended September 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 September 30,Nine Months Ended September 30,
2023202220232022
(In thousands)
United States$71,911 $89,619 $209,275 $267,189 
Other Americas (1)
1,828 2,470 7,685 10,484 
Total Americas73,739 92,089 216,960 277,673 
EMEA (2) (3)
16,165 16,107 47,280 57,890 
APAC (4)
11,428 21,365 42,275 56,760 
Total revenue$101,332 $129,561 $306,515 $392,323 
—————————————
(1)Canada, Latin America and South America
(2)Europe, the Middle East and Africa (“EMEA”)
(3)Includes revenues from the United Kingdom of $16.2 million and $13.1 million for the three months ended September 30, 2023 and 2022, respectively, and from the Netherlands of $0.2 million and $1.3 million for the three months ended September 30, 2023 and 2022, respectively. Includes revenues from the United Kingdom of $46.8 million and $41.6 million for the nine months ended September 30, 2023 and 2022, respectively, and from the Netherlands of $0.8 million and $4.8 million for the nine months ended September 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), net26,351 (13,021)(7,851)12,289 219 
Ending balance as of September 30, 2023$79,819 $20,048 $35,953 $96,783 $393 


Accounts Receivable, Net

Accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for credit losses 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 credit losses 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.
Allowance for credit losses
(In thousands)
Balance at beginning of the year$9,239 
Additions charged to costs and expenses2,653 
Deductions/write-offs(3,164)
Balance as of September 30, 2023$8,728