3. Revenue

Disaggregation of revenue

The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The Company’s geographic regions are the Americas, Europe, the Middle East and Africa (“EMEA”), and Asia Pacific (“APAC”). The majority of the Company’s revenue is from the Technology, Media and Telecom (collectively, “TMT”) sector.



	Three Months Ended June 30, 2019								Three Months Ended June 30, 2018
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	38,582	$	20,508	$	2,281	$	61,371	$	36,563	$	20,172	$	2,260	$	58,995
APAC	—		1,157		8,785		9,942		—		931		9,717		10,648
EMEA	1,849		561		4,123		6,533		2,157		1,083		3,859		7,099
Total	$	40,431	$	22,226	$	15,189	$	77,846	$	38,720	$	22,186	$	15,836	$	76,742

Service Line
Professional Services	$	3,641	$	3,989	$	4,881	$	12,511	$	3,576	$	4,294	$	1,831	$	9,701
Transaction Services	1,521		1,144		—		2,665		2,442		2,116		—		4,558
Subscription Services	35,199		16,137		8,557		59,893		32,666		14,454		6,954		54,074
License	70		956		1,751		2,777		36		1,322		7,051		8,409
Total	$	40,431	$	22,226	$	15,189	$	77,846	$	38,720	$	22,186	$	15,836	$	76,742



	Six Months Ended June 30, 2019								Six Months Ended June 30, 2018
	Cloud		Digital		Messaging		Total		Cloud		Digital		Messaging		Total
Geography
Americas	$	77,496	$	41,272	$	4,350	$	123,118	$	72,423	$	41,051	$	4,871	$	118,345
APAC	—		2,155		26,940		29,095		—		2,615		25,640		28,255
EMEA	3,645		1,650		8,443		13,738		4,601		1,531		7,719		13,851
Total	$	81,141	$	45,077	$	39,733	$	165,951	$	77,024	$	45,197	$	38,230	$	160,451

Service Line
Professional Services	$	7,359	$	8,292	$	17,368	$	33,019	$	7,020	$	10,002	$	6,390	$	23,412
Transaction Services	2,883		3,160		—		6,043		4,785		3,895		—		8,680
Subscription Services	70,793		32,539		17,722		121,054		64,795		29,531		15,733		110,059
License	106		1,086		4,643		5,835		424		1,769		16,107		18,300
Total	$	81,141	$	45,077	$	39,733	$	165,951	$	77,024	$	45,197	$	38,230	$	160,451

Trade Accounts Receivable and Contract balances

The Company classifies its right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). For example, the Company recognizes a receivable for revenues related to its time and materials and transaction or volume-based contracts. The Company presents such receivables in Trade accounts receivable, net in its condensed consolidated statements of financial position at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors.

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. For example, the Company would record a contract asset if its records revenue on a professional services engagement but are not entitled to bill until the Company achieves specified milestones. Contract asset balance at June 30, 2019 is $6.8 million.

Amounts collected in advance of services being provided are accounted for as contract liabilities, which are presented as deferred revenue on the accompanying balance sheet and are realized with the associated revenue recognized under the contract. Nearly all of the Company's contract liabilities balance is related to services revenue, primarily subscription services contracts.

The Company’s contract assets and liabilities are reported in a net position on a customer basis at the end of each reporting period.

Significant changes in the contract liabilities balance (current and noncurrent) during the period are as follows (in thousands):



	Contract Liabilities*
Balance - January 1, 2019	$	116,942
Revenue recognized in the period	(147,904		)
Amounts billed but not recognized as revenue	134,664
Balance - June 30, 2019	$	103,702

________________________________


*	Comprised of Deferred Revenue

Transaction price allocated to the remaining performance obligations

Topic 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2019. The Company has elected not to disclose transaction price allocated to remaining performance obligations for:


1.	Contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty;


2.	Contracts for which the Company recognizes revenues based on the right to invoice for services performed;

Variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with Topic 606 Section 10-25-14(b), for which the criteria in Topic 606 Section 10-32-40 have been met. This applies to a limited number of situations where the Company is dependent upon data from a third party or where fees are highly variable.

Many of the Company’s performance obligations meet one or more of these exemptions. Specifically, the Company has excluded the following from the Company’s remaining performance obligations, all of which will be resolved in the period in which amounts are known:

•consideration for future transactions, above any contractual minimums

•consideration for success-based transactions contingent on third party data

•credits for failure to meet future service level requirements

As of June 30, 2019, the aggregate amount of transaction price allocated to remaining performance obligations, other than those meeting the exclusion criteria above, was $274.0 million, of which approximately 93.6% is expected to be recognized as revenues within 2 years, and the remainder thereafter.

Estimates of revenue expected to be recognized in future periods also exclude unexercised customer options to purchase services that do not represent material rights to the customer. Customer options that do not represent a material right are only accounted for in accordance with Topic 606 when the customer exercises its option to purchase additional goods or services.