CONTRACT BALANCES

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Contract Balances

CONTRACT BALANCES

The allowance for doubtful accounts as of September 30, 2020 and 2019 and changes in the allowance for doubtful accounts during the nine months ended September 30, 2020 and 2019 were as follows (in thousands):

	Nine Months Ended September 30,
	2020		2019
Balance, beginning of period	$	7,686	$	8,685
Add: provision for doubtful accounts	26,802		15,259
Less: write-offs, net of recoveries	(23,172)		(16,165)
Balance, end of period	$	11,316	$	7,779

The net increase in the allowance for doubtful accounts in the nine months ended September 30, 2020 was primarily related to an anticipated increase in customer delinquencies due to the COVID-19 pandemic. In calculating the allowance for doubtful accounts as of September 30, 2020, the Company considered expectations of probable credit losses associated with the COVID-19 pandemic based on observed trends to date in cancellations, observed changes to date in the credit risk of specific customers, the impact of anticipated closures and bankruptcies using forecasted economic indicators in addition to historical experience and loss patterns during periods of macroeconomic uncertainty.

Contract liabilities consist of deferred revenue, which is recorded on the condensed consolidated balance sheets when the Company has received consideration, or has the right to receive consideration, in advance of transferring the performance obligations under the contract to the customer.

As of September 30, 2020, deferred revenue was $4.7 million, the majority of which is expected to be recognized as revenue in the subsequent three-month period ending December 31, 2020. Changes in deferred revenue during the nine months ended September 30, 2020 were as follows (in thousands):

	Nine Months Ended September 30, 2020
Balance, beginning of period	$	4,315
Less: recognition of deferred revenue from beginning balance	(3,713)
Add: net increase in current period contract liabilities	4,129
Balance, end of period	$	4,731

No other contract assets or liabilities are recorded on the Company's condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019.