key metrics we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . number of customers . we define our number of customers at the end of a particular quarter as the number of customers generating subscription revenue at the end of the quarter . we believe the number of customers is a key indicator of our market penetration , the productivity of our sales organization and the value that our products bring to our customers . we classify our customers by including them in either premium or volume offerings . our premium offerings include our premium video cloud customers ( enterprise and pro editions ) , our zencoder customers ( other than zencoder customers on month-to-month contracts and pay-as-you-go contracts ) , our ssai customers , our player customers , our ott flow customers , our video marketing suite customers and our enterprise video suite customers . our volume offerings include our video cloud express customers and our zencoder customers on month-to-month contracts and pay-as-you-go contracts . as of december 31 , 2018 , we had 3,783 customers , of which 1,557 used our volume offerings and 2,226 used our premium offerings . as of december 31 , 2017 , we had 4,168 customers , of which 2,001 used our volume offerings and 2,167 used our premium offerings . our go-to-market focus and growth strategy is to expand our premium customer base , as we believe our premium customers represent a greater opportunity for our solutions . volume customers decreased in recent periods primarily due to our discontinuation of the promotional video cloud express offering . as a result , we have experienced attrition of this base level offering without a corresponding addition of customers . we expect customers using our volume offerings to continue to decrease in 2018 and beyond as we continue to focus on the market for our premium solutions . recurring dollar retention rate . we assess our ability to retain customers using a metric we refer to as our recurring dollar retention rate . we calculate the recurring dollar retention rate by dividing the retained recurring value of subscription revenue for a period by the previous recurring value of subscription revenue for the same period . we define retained recurring value of subscription revenue as the committed subscription fees for all contracts that renew in a given period , including any increase or decrease in contract value . we define previous recurring value of subscription revenue as the recurring value from committed subscription fees for all contracts that expire in that same period . we typically calculate our recurring dollar retention rate on a monthly basis . recurring dollar retention rate provides visibility into our ongoing revenue . during the years ended december 31 , 2018 and 2017 , the recurring dollar retention rate was 94 % and 89 % , respectively . average annual subscription revenue per premium customer . we define average annual subscription revenue per premium customer as the total subscription revenue from premium customers for an annual period , excluding professional services revenue , divided by the average number of premium customers for that period . we believe that this metric is important in understanding subscription revenue for our premium offerings in addition to the relative size of premium customer arrangements . as our starter edition has a price point of $ 199 or $ 499 per month , we disclose the average annual subscription revenue per premium customer separately for starter edition customers and all other premium customers . backlog . we define backlog as the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied , excluding professional service engagements . we believe that this metric is important in understanding future business performance . as of 35 december 31 , 2018 , the total backlog for subscription and support contracts was approximately $ 109.4 million , of which approximately $ 90.7 million is expected to be recognized over the next 12 months . as of december 31 , 2017 , the total backlog for subscription and support contracts was approximately $ 101.0 million , of which approximately $ 79.2 million was expected to be recognized over the next 12 months . the following table includes our key metrics for the periods presented : replace_table_token_4_th components of consolidated statements of operations revenue subscription and support revenue  we generate subscription and support revenue from the sale of our products . video cloud is offered in two product lines . the first product line is comprised of our premium product editions . all premium editions include functionality to publish and distribute video to internet-connected devices , with higher levels of premium editions providing additional features and functionality . customer arrangements are typically one year contracts , which include a subscription to video cloud , basic support and a pre-determined amount of video streams , bandwidth , transcoding and storage . we also offer gold support or platinum support to our premium customers for an additional fee , which includes extended phone support . the pricing for our premium editions is based on the value of our software , as well as the number of users , accounts and usage , which is comprised of video streams , bandwidth , transcoding and storage . should a customer 's usage exceed the contractual entitlements , the contract will provide the rate at which the customer must pay for actual usage above the contractual entitlements . the second product line is comprised of our volume product edition . our volume editions target small and medium-sized businesses , or smbs . story_separator_special_tag determining the amount of variable consideration to recognize as revenue involves significant judgment on the part of management and it is possible that actual revenue will deviate from estimates over the course of a customer 's committed contract term . contracts with customers that are month-to-month arrangements ( volume customers ) have a maximum monthly level of usage and provide the rate at which the customer must pay for actual usage above the monthly allowable usage . the monthly volume subscription and support and usage fees are recognized as revenue during the related period of performance . contracts with customers that are invoiced on a pay-as-you-go basis , where there is no monthly or annual commitment for usage , provide the rate at which the customer must pay for actual 40 usage for a particular period . fees that are invoiced on a pay-as-you-go basis are recognized as revenue during the period of performance . professional services and other revenue consist of services such as implementation , software customizations and project management for customers who subscribe to our premium editions . these arrangements are priced either on a fixed fee basis with a portion due upon contract signing and the remainder due when the related services have been completed , or on a time and materials basis . professional services and other revenue sold on a stand-alone basis are recognized as the services are performed , subject to any refund or other obligation . deferred revenue includes amounts billed to customers for which revenue has not been recognized , and primarily consists of the unearned portion of annual software subscription and support fees , and deferred professional service fees . revenue is presented net of any taxes collected from customers . we periodically enter into multiple-element service arrangements that include platform subscription fees , support fees , and , in certain cases , other professional services . these contracts include multiple promises that we evaluate to determine if the promises are separate performance obligations . performance obligations are identified based on services to be transferred to a customer that are both capable of being distinct and are distinct within the context of the contract . once we determine the performance obligations , we determine the transaction price , which includes estimating the amount of variable consideration to be included in the transaction price , if any . we then allocate the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method . the transaction price post allocation is recognized as revenue as the related performance obligation is satisfied . income taxes we are subject to income taxes in both the united states and international jurisdictions , and we use estimates in determining our provision for income taxes . we account for income taxes under the asset and liability method for accounting and reporting for income taxes . deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax basis of assets and liabilities using statutory rates . this process requires us to project our current tax liability and estimate our deferred tax assets and liabilities , including net operating losses and tax credit carryforwards . in assessing the need for a valuation allowance , we considered our recent operating results , future taxable income projections and feasible tax planning strategies . we have provided a valuation allowance against our net u.s. deferred tax assets at december 31 , 2018. we maintain net deferred tax liabilities for temporary differences related to our foreign subsidiaries . due to the evolving nature and complexity of tax regulations combined with the number of jurisdictions in which we operate , it is possible that our estimates of our tax liability could change in the future , which may result in additional tax liabilities and adversely affect our results of operations , financial condition and cash flows . as of december 31 , 2018 and 2017 , we had no material unrecognized tax benefits . business combinations we record tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting . amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition . we then allocate the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management . we allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill . if the fair value of the assets acquired exceeds our purchase price , the excess is recognized as a gain . significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities , particularly acquired intangible assets . the valuation of purchased intangible assets is based 41 upon estimates of the future performance and cash flows from the acquired business . each asset is measured at fair value from the perspective of a market participant . if different assumptions are used , it could materially impact the purchase price allocation and adversely affect our results of operations , financial condition and cash flows . goodwill and acquired intangible assets we record goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net assets acquired . goodwill is not amortized , but rather is tested for impairment annually or more frequently if facts and circumstances warrant a review . conditions that could trigger a more frequent impairment assessment include , but are not limited to , a significant adverse change in certain agreements , significant underperformance relative to historical or projected future operating results , an economic downturn in customers ' industries , increased competition , a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net

cash and cash equivalents . our cash and cash equivalents at december 31 , 2018 were held for working capital purposes and were invested primarily in money market funds . we do not enter into investments for trading or speculative purposes . at december 31 , 2018 and 2017 , we had $ 9.9 million and $ 7.8 million , respectively , of cash and cash equivalents held by subsidiaries in international locations , including subsidiaries located in japan and the united kingdom . as a result of changes in tax law , these earnings can be repatriated to the united states tax-free but will still be subject to foreign withholding taxes . on february 13 , 2019 , we entered into a definitive agreement to acquire a significant portion of the assets of ooyala , inc. and certain of its subsidiaries in exchange for 1,056,763 unregistered shares of common stock of brightcove inc. and approximately $ 6.25 million of cash . we believe that our existing cash and cash equivalents will be sufficient to meet our anticipated working capital and capital expenditure needs over at least the next 12 months . replace_table_token_20_th accounts receivable , net . our accounts receivable balance fluctuates from period to period , which affects our cash flow from operating activities . the fluctuations vary depending on the timing of our billing activity , cash collections , and changes to our allowance for doubtful accounts . in many instances we receive cash payment from a customer prior to the time we are able to recognize revenue on a transaction . we record these payments as deferred revenue , which has a positive effect on our accounts receivable balances . cash flows provided by ( used in ) operating activities . cash used in operating activities consists primarily of net loss adjusted for certain non-cash items including depreciation and amortization , stock-based compensation expense , the provision for bad debts and the effect of changes in working capital and other activities . cash provided by operating activities during the year ended december 31 , 2018 was $ 2.6 million .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash and cash equivalents . our cash and cash equivalents at december 31 , 2018 were held for working capital purposes and were invested primarily in money market funds . we do not enter into investments for trading or speculative purposes . at december 31 , 2018 and 2017 , we had $ 9.9 million and $ 7.8 million , respectively , of cash and cash equivalents held by subsidiaries in international locations , including subsidiaries located in japan and the united kingdom . as a result of changes in tax law , these earnings can be repatriated to the united states tax-free but will still be subject to foreign withholding taxes . on february 13 , 2019 , we entered into a definitive agreement to acquire a significant portion of the assets of ooyala , inc. and certain of its subsidiaries in exchange for 1,056,763 unregistered shares of common stock of brightcove inc. and approximately $ 6.25 million of cash . we believe that our existing cash and cash equivalents will be sufficient to meet our anticipated working capital and capital expenditure needs over at least the next 12 months . replace_table_token_20_th accounts receivable , net . our accounts receivable balance fluctuates from period to period , which affects our cash flow from operating activities . the fluctuations vary depending on the timing of our billing activity , cash collections , and changes to our allowance for doubtful accounts . in many instances we receive cash payment from a customer prior to the time we are able to recognize revenue on a transaction . we record these payments as deferred revenue , which has a positive effect on our accounts receivable balances . cash flows provided by ( used in ) operating activities . cash used in operating activities consists primarily of net loss adjusted for certain non-cash items including depreciation and amortization , stock-based compensation expense , the provision for bad debts and the effect of changes in working capital and other activities . cash provided by operating activities during the year ended december 31 , 2018 was $ 2.6 million .
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 Suspicious Activity Report : key metrics we regularly review a number of metrics , including the following key metrics , to evaluate our business , measure our performance , identify trends affecting our business , formulate financial projections and make strategic decisions . number of customers . we define our number of customers at the end of a particular quarter as the number of customers generating subscription revenue at the end of the quarter . we believe the number of customers is a key indicator of our market penetration , the productivity of our sales organization and the value that our products bring to our customers . we classify our customers by including them in either premium or volume offerings . our premium offerings include our premium video cloud customers ( enterprise and pro editions ) , our zencoder customers ( other than zencoder customers on month-to-month contracts and pay-as-you-go contracts ) , our ssai customers , our player customers , our ott flow customers , our video marketing suite customers and our enterprise video suite customers . our volume offerings include our video cloud express customers and our zencoder customers on month-to-month contracts and pay-as-you-go contracts . as of december 31 , 2018 , we had 3,783 customers , of which 1,557 used our volume offerings and 2,226 used our premium offerings . as of december 31 , 2017 , we had 4,168 customers , of which 2,001 used our volume offerings and 2,167 used our premium offerings . our go-to-market focus and growth strategy is to expand our premium customer base , as we believe our premium customers represent a greater opportunity for our solutions . volume customers decreased in recent periods primarily due to our discontinuation of the promotional video cloud express offering . as a result , we have experienced attrition of this base level offering without a corresponding addition of customers . we expect customers using our volume offerings to continue to decrease in 2018 and beyond as we continue to focus on the market for our premium solutions . recurring dollar retention rate . we assess our ability to retain customers using a metric we refer to as our recurring dollar retention rate . we calculate the recurring dollar retention rate by dividing the retained recurring value of subscription revenue for a period by the previous recurring value of subscription revenue for the same period . we define retained recurring value of subscription revenue as the committed subscription fees for all contracts that renew in a given period , including any increase or decrease in contract value . we define previous recurring value of subscription revenue as the recurring value from committed subscription fees for all contracts that expire in that same period . we typically calculate our recurring dollar retention rate on a monthly basis . recurring dollar retention rate provides visibility into our ongoing revenue . during the years ended december 31 , 2018 and 2017 , the recurring dollar retention rate was 94 % and 89 % , respectively . average annual subscription revenue per premium customer . we define average annual subscription revenue per premium customer as the total subscription revenue from premium customers for an annual period , excluding professional services revenue , divided by the average number of premium customers for that period . we believe that this metric is important in understanding subscription revenue for our premium offerings in addition to the relative size of premium customer arrangements . as our starter edition has a price point of $ 199 or $ 499 per month , we disclose the average annual subscription revenue per premium customer separately for starter edition customers and all other premium customers . backlog . we define backlog as the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied , excluding professional service engagements . we believe that this metric is important in understanding future business performance . as of 35 december 31 , 2018 , the total backlog for subscription and support contracts was approximately $ 109.4 million , of which approximately $ 90.7 million is expected to be recognized over the next 12 months . as of december 31 , 2017 , the total backlog for subscription and support contracts was approximately $ 101.0 million , of which approximately $ 79.2 million was expected to be recognized over the next 12 months . the following table includes our key metrics for the periods presented : replace_table_token_4_th components of consolidated statements of operations revenue subscription and support revenue  we generate subscription and support revenue from the sale of our products . video cloud is offered in two product lines . the first product line is comprised of our premium product editions . all premium editions include functionality to publish and distribute video to internet-connected devices , with higher levels of premium editions providing additional features and functionality . customer arrangements are typically one year contracts , which include a subscription to video cloud , basic support and a pre-determined amount of video streams , bandwidth , transcoding and storage . we also offer gold support or platinum support to our premium customers for an additional fee , which includes extended phone support . the pricing for our premium editions is based on the value of our software , as well as the number of users , accounts and usage , which is comprised of video streams , bandwidth , transcoding and storage . should a customer 's usage exceed the contractual entitlements , the contract will provide the rate at which the customer must pay for actual usage above the contractual entitlements . the second product line is comprised of our volume product edition . our volume editions target small and medium-sized businesses , or smbs . story_separator_special_tag determining the amount of variable consideration to recognize as revenue involves significant judgment on the part of management and it is possible that actual revenue will deviate from estimates over the course of a customer 's committed contract term . contracts with customers that are month-to-month arrangements ( volume customers ) have a maximum monthly level of usage and provide the rate at which the customer must pay for actual usage above the monthly allowable usage . the monthly volume subscription and support and usage fees are recognized as revenue during the related period of performance . contracts with customers that are invoiced on a pay-as-you-go basis , where there is no monthly or annual commitment for usage , provide the rate at which the customer must pay for actual 40 usage for a particular period . fees that are invoiced on a pay-as-you-go basis are recognized as revenue during the period of performance . professional services and other revenue consist of services such as implementation , software customizations and project management for customers who subscribe to our premium editions . these arrangements are priced either on a fixed fee basis with a portion due upon contract signing and the remainder due when the related services have been completed , or on a time and materials basis . professional services and other revenue sold on a stand-alone basis are recognized as the services are performed , subject to any refund or other obligation . deferred revenue includes amounts billed to customers for which revenue has not been recognized , and primarily consists of the unearned portion of annual software subscription and support fees , and deferred professional service fees . revenue is presented net of any taxes collected from customers . we periodically enter into multiple-element service arrangements that include platform subscription fees , support fees , and , in certain cases , other professional services . these contracts include multiple promises that we evaluate to determine if the promises are separate performance obligations . performance obligations are identified based on services to be transferred to a customer that are both capable of being distinct and are distinct within the context of the contract . once we determine the performance obligations , we determine the transaction price , which includes estimating the amount of variable consideration to be included in the transaction price , if any . we then allocate the transaction price to each performance obligation in the contract based on a relative stand-alone selling price method . the transaction price post allocation is recognized as revenue as the related performance obligation is satisfied . income taxes we are subject to income taxes in both the united states and international jurisdictions , and we use estimates in determining our provision for income taxes . we account for income taxes under the asset and liability method for accounting and reporting for income taxes . deferred tax assets and liabilities are recognized based on temporary differences between the financial reporting and income tax basis of assets and liabilities using statutory rates . this process requires us to project our current tax liability and estimate our deferred tax assets and liabilities , including net operating losses and tax credit carryforwards . in assessing the need for a valuation allowance , we considered our recent operating results , future taxable income projections and feasible tax planning strategies . we have provided a valuation allowance against our net u.s. deferred tax assets at december 31 , 2018. we maintain net deferred tax liabilities for temporary differences related to our foreign subsidiaries . due to the evolving nature and complexity of tax regulations combined with the number of jurisdictions in which we operate , it is possible that our estimates of our tax liability could change in the future , which may result in additional tax liabilities and adversely affect our results of operations , financial condition and cash flows . as of december 31 , 2018 and 2017 , we had no material unrecognized tax benefits . business combinations we record tangible and intangible assets acquired and liabilities assumed in business combinations under the purchase method of accounting . amounts paid for each acquisition are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition . we then allocate the purchase price in excess of net tangible assets acquired to identifiable intangible assets based on detailed valuations that use information and assumptions provided by management . we allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired and liabilities assumed to goodwill . if the fair value of the assets acquired exceeds our purchase price , the excess is recognized as a gain . significant management judgments and assumptions are required in determining the fair value of acquired assets and liabilities , particularly acquired intangible assets . the valuation of purchased intangible assets is based 41 upon estimates of the future performance and cash flows from the acquired business . each asset is measured at fair value from the perspective of a market participant . if different assumptions are used , it could materially impact the purchase price allocation and adversely affect our results of operations , financial condition and cash flows . goodwill and acquired intangible assets we record goodwill when consideration paid in a purchase acquisition exceeds the fair value of the net assets acquired . goodwill is not amortized , but rather is tested for impairment annually or more frequently if facts and circumstances warrant a review . conditions that could trigger a more frequent impairment assessment include , but are not limited to , a significant adverse change in certain agreements , significant underperformance relative to historical or projected future operating results , an economic downturn in customers ' industries , increased competition , a significant reduction in our stock price for a sustained period or a reduction of our market capitalization relative to net

