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Revenue Recognition
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

Note 2: Revenue Recognition

The Company’s AI-powered conversational analytics technology platform provides data and insights into the conversations our clients are having with their customers across phone, text, and other communication channels. Our tools enable brands to personalize customer interactions in order to accelerate sales and capture more opportunities to grow their business. The Company generates revenue from the Company's conversational analytics technology platform when customers pay the Company a fee for call, text, or other communication related data elements they receive from calls or texts or for each phone number tracked based on a pre-negotiated rate. Revenue is recognized as services are provided over time, which is generally measured by the delivery of each call/text or call/text related data element or each phone number tracked.

The majority of the Company’s customers are invoiced on a monthly basis following the month of the delivery of services and are required to make payments under standard credit terms. Net accounts receivable was $7.4 million, including unbilled accounts receivable of $1.5 million, at January 1, 2024. Net accounts receivable, including unbilled accounts receivable, consists of the following as of the periods below:

 

 

March 31,

 

 

December 31,

 

(In Thousands)

 

2025

 

 

2024

 

Accounts receivable:

 

 

 

 

 

 

Billed

 

$

5,846

 

 

$

5,420

 

Unbilled

 

 

1,763

 

 

 

1,736

 

Allowance for expected credit losses

 

 

(25

)

 

 

(84

)

Accounts receivable, net

 

$

7,584

 

 

$

7,072

 

Customer payments received in advance of revenue recognition are considered contract liabilities and are recorded as deferred revenue. The deferred revenue balance and revenue recognized that was included in these contract liabilities at the beginning of the period consists of the following:

 

 

March 31,

 

 

December 31,

 

(In Thousands)

 

2025

 

 

2024

 

Deferred revenue and deposits

 

$

1,293

 

 

$

1,093

 

 

 

 

 

 

 

 

Revenue recognized in the period from contract liability at beginning of period

 

$

444

 

 

 

 

The Company’s incremental direct costs of obtaining a contract, which consist primarily of sales incentive compensation including commissions, are generally deferred and amortized to sales and marketing expense over the estimated life of the relevant customer relationship. The Company’s net contract acquisition costs shown below consist of $0.9 million in Prepaid expenses and other current assets and $0.3 million in Other assets, net on both of the March 31, 2025 and December 31, 2024 Consolidated Balance Sheets. The gross and net amounts consist of the following:

 

 

March 31,

 

 

December 31,

 

(In Thousands)

 

2025

 

 

2024

 

Contract assets:

 

 

 

 

 

 

Gross balance

 

$

3,660

 

 

$

3,407

 

Accumulated amortization

 

 

(2,508

)

 

 

(2,247

)

Contract assets, net

 

$

1,152

 

 

$

1,160