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Revenue Recognition
 6 Months Ended
Jun. 30, 2024
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 pricing model, and related professional services. Revenues are recognized when control of these services is transferred to the Company’s customers, in an amount that reflects the consideration the Company 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, 2024 and 2023.
The following table presents the Company’s revenues disaggregated by revenue source:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)(In thousands)
Revenue:
Hosted services (1)
$67,316 $81,286 $138,811 $168,624 
Professional services12,559 16,236 26,213 36,559 
Total revenue$79,875 $97,522 $165,024 $205,183 
(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 condensed consolidated segment. Hosted services includes $7.2 million of revenue related to Kasamba for the six months ended June 30, 2023.

Remaining Performance Obligation

As of June 30, 2024, 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 $283.0 million. Approximately 94% 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. The Company has elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an original expected duration of less than one year. Such remaining performance obligations represent unsatisfied or partially unsatisfied performance obligations pursuant to ASC 606, “Revenue from Contracts with Customers.”

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 operations by region for the periods presented:

Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(In thousands)(In thousands)
Americas (1)
$56,385 $70,907 $118,410 $143,221 
EMEA (2)
14,559 14,933 28,780 31,115 
APAC (3)
8,931 11,682 17,834 30,847 
Total revenue$79,875 $97,522 $165,024 $205,183 
——————————————
(1)United States, Canada, Latin America and South America (“Americas”)
(2)Europe, the Middle East and Africa (“EMEA”)
(3)Asia-Pacific (“APAC”)

Information about Contract Balances

The deferred revenue balance consists of services, which have been invoiced upfront, and are recognized as revenue only when the revenue recognition criteria are met.

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, net of allowance for credit losses on the condensed consolidated balance sheets.
The Company recognized revenue of $22.2 million and $64.7 million for the three and six months ended June 30, 2024, respectively, which was included in the corresponding deferred revenue balance at the beginning of the year. The Company recognized revenue of $28.9 million and $73.0 million for the three and six months ended June 30, 2023, respectively, which was included in the corresponding deferred revenue balance at the beginning of the year.

Our long-term deferred revenues are included in Other liabilities on the condensed consolidated balance sheets. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, contract acquisition costs, net, and deferred revenues are as follows:

Accounts ReceivableUnbilled Receivable
Contract Acquisition
Costs, Net
(Non-current)
Deferred Revenue (Current)Deferred Revenue
(Non-current)
(In thousands)
Balance as of December 31, 2022
$53,468 $33,069 $43,804 $84,494 $174 
  Increase (decrease), net6,914 (11,649)(6,450)(2,636)9 
Balance as of December 31, 2023
$60,382 $21,420 $37,354 $81,858 $183 
Decrease, net
(18,800)(6,651)(490)(2,502)(106)
Balance as of June 30, 2024
$41,582 $14,769 $36,864 $79,356 $77 

Amortization expense in connection with contract acquisition cost was approximately $4.8 million and $9.7 million for the three and six months ended June 30, 2024, respectively. Amortization expense in connection with contract acquisition cost was approximately $5.1 million and $13.4 million for the three and six months ended June 30, 2023, respectively.

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 estimate of the amount of probable credit losses in the Company’s existing accounts receivable, based on both specific and general reserves. The Company maintains general reserves on a collective basis by considering factors such as historical experience, creditworthiness, the age of the trade receivable balances, and current economic conditions. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company does not have any off-balance sheet credit exposure related to its customers. The activity in the allowance for credit losses is as follows:

June 30,
2024		December 31,
2023
(In thousands)
Balance, beginning of year$9,290 9,239 
Additions charged to costs and expenses8,928 3,319 
Deductions/write-offs(8,862)(3,268)
Balance, end of period
$9,356 $9,290