Revenues, net

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenues, net

Revenues, net

Refer to Note 3 - Segment and Geographical Information to the unaudited consolidated financial statements for revenues disaggregated by reportable segments and geography.

Contract balances

The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:

	As of
	June 30, 2022		December 31, 2021
Accounts receivable, net	$	237,453	$	194,232
Contract assets	$	1,648	$	2,524
Contract liabilities:
Deferred revenue (consideration received in advance)	$	18,617	$	18,247
Consideration received for process transition activities	$	4,327	$	2,203

Accounts receivable includes $122,943 and $93,336 as of June 30, 2022 and December 31, 2021, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables.

Contract assets represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented.

Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and are included within “Deferred revenues” and “Other non-current liabilities” in the unaudited consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer.

Revenue recognized during the three and six months ended June 30, 2022 and 2021, which was included in the contract liabilities balance at the beginning of the respective periods:

	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Deferred revenue (consideration received in advance)	$	4,306	$	3,332	$	13,870	$	26,953
Consideration received for process transition activities	$	298	$	508	$	664	$	1,187

Contract acquisition and fulfillment costs

The following table provides details of the Company’s contract acquisition and fulfillment costs:

	Contract Acquisition Costs
	Three months ended				Six months ended				Year ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		December 31, 2021
Opening Balance	$	927	$	785	$	511	$	1,027	$	1,027
Additions	180		374		727		374		277
Amortization	(124)		(292)		(255)		(534)		(793)
Closing Balance	$	983	$	867	$	983	$	867	$	511

	Contract Fulfillment Costs
	Three months ended				Six months ended				Year ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		December 31, 2021
Opening Balance	$	7,435	$	4,419	$	5,795	$	5,631	$	5,631
Additions	3,308		158		5,485		164		3,742
Amortization	(576)		(883)		(1,113)		(2,101)		(3,578)
Closing Balance	$	10,167	$	3,694	$	10,167	$	3,694	$	5,795

There was no impairment for contract acquisition and contract fulfillment costs as of June 30, 2022 and December 31, 2021. The capitalized costs are amortized over the expected period of benefit of the contract.

Allowance for expected credit losses

The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its

significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19.

	As of
	June 30, 2022		December 31, 2021
Accounts receivable, including unbilled receivables	$	238,297	$	194,805
Less: Allowance for expected credit losses	(844)		(573)
Accounts receivable, net	$	237,453	$	194,232

The movement in “Allowance for expected credit losses” on customer balances was as follows:

	Three months ended				Six months ended				Year ended
	June 30, 2022		June 30, 2021		June 30, 2022		June 30, 2021		December 31, 2021
Balance at the beginning of the period	$	588	$	1,183	$	573	$	1,189	$	1,189
Additions / (reductions) during the period	571		(445)		743		(395)		(496)
Reductions due to write-off of Accounts Receivables	(314)		(13)		(472)		(73)		(129)
Translation adjustment	(1)		5		—		9		9
Balance at the end of the period	$	844	$	730	$	844	$	730	$	573