Revenue from Contracts with Customers
6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
The Company generates all of its revenue from contracts with customers. Many of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software licenses are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis. The Company usually expects payment within 30 to 90 days from the invoice date (fulfillment of performance obligations or per contract terms). None of the Company’s contracts as of June 30, 2020 contained a significant financing component. Differences between the amount of revenue recognized and the amount invoiced are recognized as deferred revenue.
Disaggregation of revenue
The following table provides information about disaggregated revenue for the three and six months ended June 30, 2020 and 2019 by the timing of revenue recognition, and includes a reconciliation of the disaggregated revenue by reportable segment (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Software & Services
Products and services transferred over time$8,063  $8,388  $16,393  $17,263  
Products transferred at a point in time2,852  2,200  5,584  4,483  
Total Software & Services10,915  10,588  21,977  21,746  
Portal & Advertising
Products and services transferred over time881  1,202  2,105  2,708  
Products transferred at a point in time6,380  20,059  14,677  39,219  
Total Portal & Advertising7,261  21,261  16,782  41,927  
Total Revenue$18,176  $31,849  $38,759  $63,673  
Revenue disaggregated by geography, based on the billing address of our customer, consists of the following (in thousands):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Revenue
United States$12,672  $26,974  $27,967  $53,248  
International5,504  4,875  10,792  10,425  
Total revenue$18,176  $31,849  $38,759  $63,673  
Remaining Performance Obligations
Deferred revenue is recorded when cash payments are received or due in advance of revenue recognition from software licenses, professional services, and maintenance agreements. The timing of revenue recognition may differ from the timing of billings to customers.
The changes in deferred revenue, inclusive of both current and long-term, are as follows (in thousands):
Beginning balance - January 1, 2020
$8,875  
Recognition of deferred revenue(5,471) 
Deferral of revenue3,929  
Effect of foreign currency translation(77) 
Ending balance - June 30, 2020$7,256  
The majority of the deferred revenue balance above relates to the maintenance and support contracts for the Company's email software licenses. These are recognized straight-line over the life of the contract, with the majority of the balance being recognized within the next twelve months.
Practical Expedients
The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses.
The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which revenue is recognized at the amount to which the Company has the right to invoice for services performed.