QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip code) |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||
Title of Each Class: | Trading symbol(s) | Name of Each Exchange on Which Registered: | ||||||
|
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
PAGE | |||||||||||
ITEM | |||||||||||
1. | |||||||||||
2. | |||||||||||
3. | |||||||||||
4. | |||||||||||
1. | |||||||||||
1A. | |||||||||||
2. | |||||||||||
3. | |||||||||||
4. | |||||||||||
5. | |||||||||||
6. | |||||||||||
As of | ||||||||||||||
September 30, 2023 | December 31, 2022 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Short-term investments | ||||||||||||||
Restricted cash | ||||||||||||||
Accounts receivable, net | ||||||||||||||
Other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property and equipment, net | ||||||||||||||
Operating lease right-of-use assets, net | ||||||||||||||
Restricted cash | ||||||||||||||
Deferred tax assets, net | ||||||||||||||
Goodwill | ||||||||||||||
Other intangible assets, net | ||||||||||||||
Long-term investments | ||||||||||||||
Other assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities and stockholders’ equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | $ | ||||||||||||
Current portion of long-term borrowings | ||||||||||||||
Deferred revenue | ||||||||||||||
Accrued employee costs | ||||||||||||||
Accrued expenses and other current liabilities | ||||||||||||||
Current portion of operating lease liabilities | ||||||||||||||
Income taxes payable, net | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term borrowings, less current portion | ||||||||||||||
Operating lease liabilities, less current portion | ||||||||||||||
Deferred tax liabilities, net | ||||||||||||||
Other non-current liabilities | ||||||||||||||
Total liabilities | ||||||||||||||
Commitments and contingencies (Refer to Note 25) | ||||||||||||||
ExlService Holdings, Inc. Stockholders’ equity: | ||||||||||||||
Preferred stock, $ | ||||||||||||||
Common stock, $ | ||||||||||||||
Additional paid-in capital (1) | ||||||||||||||
Retained earnings | ||||||||||||||
Accumulated other comprehensive loss | ( | ( | ||||||||||||
Total including shares held in treasury |
Less: | ( | ( | ||||||||||||
Total stockholders’ equity | ||||||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | ||||||||||||||||||||||
Cost of revenues (1) | ||||||||||||||||||||||||||
Gross profit (1) | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
General and administrative expenses | ||||||||||||||||||||||||||
Selling and marketing expenses | ||||||||||||||||||||||||||
Depreciation and amortization expense | ||||||||||||||||||||||||||
Total operating expenses | ||||||||||||||||||||||||||
Income from operations | ||||||||||||||||||||||||||
Foreign exchange gain, net | ||||||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | ||||||||||||||||||||||
Other income, net | ||||||||||||||||||||||||||
Income before income tax expense and earnings from equity affiliates | ||||||||||||||||||||||||||
Income tax expense | ||||||||||||||||||||||||||
Income before earnings from equity affiliates | ||||||||||||||||||||||||||
Gain from equity-method investment | ||||||||||||||||||||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ | $ | $ | $ | ||||||||||||||||||||||
Earnings per share attributable to ExlService Holdings, Inc. stockholders (2): | ||||||||||||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||||||||||||
Weighted average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders (2): | ||||||||||||||||||||||||||
Basic | ||||||||||||||||||||||||||
Diluted |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||||||||||||||
Other comprehensive income/(loss): | ||||||||||||||||||||||||||
Unrealized gain/(loss) on cash flow hedges | ( | ( | ( | |||||||||||||||||||||||
Foreign currency translation loss | ( | ( | ( | ( | ||||||||||||||||||||||
Reclassification adjustments | ||||||||||||||||||||||||||
(Gain)/loss on cash flow hedges(1) | ( | |||||||||||||||||||||||||
Retirement benefits(2) | ( | ( | ||||||||||||||||||||||||
Income tax effects relating to above(3) | ( | |||||||||||||||||||||||||
Total other comprehensive income/(loss) | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ |
Common Stock (1) | Additional Paid-in Capital (1) | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock issued against stock-based compensation plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
Common Stock (1) | Additional Paid-in Capital (1) | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock issued against stock-based compensation plans | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
Common Stock (1) | Additional Paid-in Capital (1) | Retained Earnings | Accumulated Other Comprehensive Income/(loss) | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | ||||||||||||||||||||||||||||||||||||||||||||
January 1, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock issued against stock-based compensation plans | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
Common Stock (1) | Additional Paid-in Capital (1) | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | ||||||||||||||||||||||||||||||||||||||||||||
January 1, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||
Stock issued against stock-based compensation plans | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | — | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | $ | $ | $ | ( | ( | $ | ( | $ |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Stock-based compensation expense | |||||||||||
Amortization of operating lease right-of-use assets | |||||||||||
Unrealized loss/(gain) on investments | ( | ||||||||||
Unrealized foreign currency exchange gain, net | ( | ( | |||||||||
Deferred income tax benefit | ( | ( | |||||||||
Allowance for expected credit losses | |||||||||||
Fair value changes in contingent consideration | |||||||||||
Others, net | |||||||||||
Change in operating assets and liabilities, net of effects of acquisitions: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Other current assets | ( | ||||||||||
Income taxes payable, net | ( | ||||||||||
Other assets | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Deferred revenue | |||||||||||
Accrued employee costs | ( | ( | |||||||||
Accrued expenses and other liabilities | |||||||||||
Operating lease liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Proceeds from sale of property and equipment | |||||||||||
Investment in equity affiliate | ( | ||||||||||
Business acquisition (net of cash and cash equivalents acquired) | ( | ||||||||||
Purchases of investments | ( | ( | |||||||||
Proceeds from redemption of investments | |||||||||||
Net cash provided by/(used for) investing activities | ( | ||||||||||
Cash flows from financing activities: | |||||||||||
Principal payments of finance lease liabilities | ( | ( | |||||||||
Proceeds from borrowings | |||||||||||
Repayments of borrowings | ( | ( | |||||||||
Acquisition of treasury stock | ( | ( | |||||||||
Payment of contingent consideration | ( | ||||||||||
Proceeds from ESPP contribution and exercise of stock options | |||||||||||
Net cash used for financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net increase/(decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at the beginning of the period | |||||||||||
Cash, cash equivalents and restricted cash at the end of the period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | $ | |||||||||
Income taxes, net of refunds | $ | $ | |||||||||
Supplemental disclosure of non-cash investing and financing activities: | |||||||||||
Assets acquired under finance lease | $ | $ |
Three months ended September 30, 2023 | |||||||||||||||||||||||||||||
Insurance | Healthcare | Emerging Business | Analytics | Total | |||||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of revenues(1) | |||||||||||||||||||||||||||||
Gross profit(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Foreign exchange gain, net, interest expense and other income, net | ( | ||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Gain from equity-method investment | |||||||||||||||||||||||||||||
Net income | $ |
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||
Insurance | Healthcare | Emerging Business | Analytics | Total | |||||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of revenues(1) | |||||||||||||||||||||||||||||
Gross profit(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Foreign exchange gain, net, interest expense and other loss, net | |||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Gain from equity-method investment | |||||||||||||||||||||||||||||
Net income | $ |
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||
Insurance | Healthcare | Emerging Business | Analytics | Total | |||||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of revenues(1) | |||||||||||||||||||||||||||||
Gross profit(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Foreign exchange gain, net, interest expense and other income, net | ( | ||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Gain from equity-method investment | |||||||||||||||||||||||||||||
Net income | $ |
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||
Insurance | Healthcare | Emerging Business | Analytics | Total | |||||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Cost of revenues(1) | |||||||||||||||||||||||||||||
Gross profit(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Foreign exchange gain, net, interest expense and other income, net | |||||||||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||||||||
Gain from equity-method investment | |||||||||||||||||||||||||||||
Net income | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Digital operations and solutions(1) | $ | $ | $ | $ | |||||||||||||||||||
Analytics services | |||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues, net | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Non-United States | |||||||||||||||||||||||
United Kingdom | |||||||||||||||||||||||
Rest of World | |||||||||||||||||||||||
Total Non-United States | |||||||||||||||||||||||
Revenues, net | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Long-lived assets | |||||||||||
United States | $ | $ | |||||||||
India | |||||||||||
Philippines | |||||||||||
Rest of World | |||||||||||
Long-lived assets | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Accounts receivable, net | $ | $ | |||||||||
Contract assets | $ | $ | |||||||||
Contract liabilities: | |||||||||||
Deferred revenue (consideration received in advance) | $ | $ | |||||||||
Consideration received for process transition activities | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Deferred revenue (consideration received in advance) | $ | $ | $ | $ | |||||||||||||||||||
Consideration received for process transition activities | $ | $ | $ | $ |
Contract Acquisition Costs | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | Year ended | |||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | December 31, 2022 | |||||||||||||||||||||||||
Opening Balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Closing Balance | $ | $ | $ | $ | $ |
Contract Fulfillment Costs | |||||||||||||||||||||||||||||
Three months ended | Nine months ended | Year ended | |||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | December 31, 2022 | |||||||||||||||||||||||||
Opening Balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||||||
Amortization | ( | ( | ( | ( | ( | ||||||||||||||||||||||||
Closing Balance | $ | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Accounts receivable, including unbilled receivables | $ | $ | |||||||||
Less: Allowance for expected credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three months ended | Nine months ended | Year ended | |||||||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | September 30, 2023 | September 30, 2022 | December 31, 2022 | |||||||||||||||||||||||||
Opening Balance | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||||||
Reductions due to write-off of accounts receivables | ( | ( | ( | ( | |||||||||||||||||||||||||
Currency translation adjustments | |||||||||||||||||||||||||||||
Closing Balance | $ | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerators: | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Denominators(1): | |||||||||||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock-based awards | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
Earnings per share attributable to ExlService Holdings, Inc. stockholders (1): | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share (1) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gain on sale and mark-to-market on investments | $ | $ | $ | $ | |||||||||||||||||||
Interest and dividend income | |||||||||||||||||||||||
Fair value changes of contingent consideration* | ( | ( | ( | ||||||||||||||||||||
Others, net | ( | ( | ( | ( | |||||||||||||||||||
Other income, net | $ | $ | $ | $ |
As of | |||||||||||||||||
September 30, 2023 | September 30, 2022 | December 31, 2022 | |||||||||||||||
Cash and cash equivalents | $ | $ | $ | ||||||||||||||
Restricted cash (current) | |||||||||||||||||
Restricted cash (non-current) | |||||||||||||||||
Cash, cash equivalents and restricted cash | $ | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Short-term investments | |||||||||||
Mutual funds | $ | $ | |||||||||
Term deposits | |||||||||||
Total Short-term investments | $ | $ | |||||||||
Long-term investments | |||||||||||
Term deposits | $ | $ | |||||||||
Investment in equity affiliate | |||||||||||
Total Long-term investments | $ | $ |
As of | |||||||||||||||||
Estimated useful lives (Years) | September 30, 2023 | December 31, 2022 | |||||||||||||||
Owned Assets: | |||||||||||||||||
Network equipment and computers | $ | $ | |||||||||||||||
Software | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Office furniture and equipment | |||||||||||||||||
Motor vehicles | |||||||||||||||||
Buildings | |||||||||||||||||
Land | — | ||||||||||||||||
Capital work in progress | — | ||||||||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||||||||
Right-of-use assets under finance leases: | |||||||||||||||||
Network equipment and computers | |||||||||||||||||
Leasehold improvements | |||||||||||||||||
Office furniture and equipment | |||||||||||||||||
Motor vehicles | |||||||||||||||||
Less: Accumulated depreciation and amortization | ( | ( | |||||||||||||||
Property and equipment, net | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Depreciation and amortization expense | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Effect of foreign exchange loss | $ | ( | $ | ( | $ | ( | $ | ( |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Cost | $ | $ | |||||||||
Less : Accumulated amortization | ( | ( | |||||||||
Internally developed software, net | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Amortization expense | $ | $ | $ | $ |
Insurance | Healthcare | Emerging Business | Analytics | Total | |||||||||||||||||||||||||
Balance as of January 1, 2023 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Currency translation adjustments | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | $ | $ | $ | $ |
As of September 30, 2023 | |||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||
Customer relationships | $ | $ | ( | $ | |||||||||||||
Developed technology | ( | ||||||||||||||||
Trade names and trademarks | ( | ||||||||||||||||
Non-compete agreements | ( | ||||||||||||||||
( | |||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||
Trade names and trademarks | — | ||||||||||||||||
Total intangible assets | $ | $ | ( | $ |
As of December 31, 2022 | |||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||
Customer relationships | $ | $ | ( | $ | |||||||||||||
Developed technology | ( | ||||||||||||||||
Trade names and trademarks | ( | ||||||||||||||||
Non-compete agreements | ( | ||||||||||||||||
( | |||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||
Trade names and trademarks | — | ||||||||||||||||
Total intangible assets | $ | $ | ( | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Amortization expense | $ | $ | $ | $ |
Estimated future amortization expense related to finite-lived intangible assets as of September 30, 2023 was as follows: | |||||
2023 (October 1 - December 31) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
2028 and thereafter | |||||
Total | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Advance income tax, net | $ | $ | |||||||||
Receivables from statutory authorities | |||||||||||
Prepaid expenses | |||||||||||
Deferred contract fulfillment costs | |||||||||||
Derivative instruments | |||||||||||
Contract assets | |||||||||||
Advances to suppliers | |||||||||||
Others | |||||||||||
Other current assets | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Deferred contract fulfillment costs | $ | $ | |||||||||
Contract assets | |||||||||||
Deposits with statutory authorities | |||||||||||
Lease deposits | |||||||||||
Derivative instruments | |||||||||||
Others | |||||||||||
Other assets | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Accrued expenses | $ | $ | |||||||||
Payable to statutory authorities | |||||||||||
Contingent consideration | |||||||||||
Client liabilities | |||||||||||
Derivative instruments | |||||||||||
Accrued capital expenditures | |||||||||||
Others | |||||||||||
Accrued expenses and other current liabilities | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Retirement benefits | $ | $ | |||||||||
Deferred transition revenue | |||||||||||
Unrecognized tax benefits | |||||||||||
Derivative instruments | |||||||||||
Contingent consideration | |||||||||||
Others | |||||||||||
Other non-current liabilities | $ | $ |
Accumulated Other Comprehensive Income/(Loss) | |||||||||||||||||||||||
Foreign currency translation gain/(loss) | Unrealized gain/(loss) on cash flow hedges | Retirement benefits | Total | ||||||||||||||||||||
Balance as of January 1, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Gains/(losses) recognized during the period | ( | ||||||||||||||||||||||
Reclassification to net income (1) | ( | ||||||||||||||||||||||
Income tax effects (2) | ( | ( | ( | ||||||||||||||||||||
Accumulated other comprehensive income/(loss) as of September 30, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Balance as of January 1, 2022 | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||
Losses recognized during the period | ( | ( | ( | ||||||||||||||||||||
Reclassification to net income (1) | ( | ( | |||||||||||||||||||||
Income tax effects (2) | ( | ||||||||||||||||||||||
Accumulated other comprehensive income/(loss) as of September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( |
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||||
As of September 30, 2023 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents - Money market funds (1) | $ | $ | $ | $ | |||||||||||||||||||
Mutual funds (2) | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration (3) | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||||
As of December 31, 2022 | (Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents - Money market funds (1) | $ | $ | $ | $ | |||||||||||||||||||
Mutual funds (2) | |||||||||||||||||||||||
Derivative financial instruments | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Derivative financial instruments | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration (3) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Opening balance | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions | |||||||||||||||||||||||
Fair value changes | |||||||||||||||||||||||
Payments | ( | ||||||||||||||||||||||
Closing balance | $ | $ | $ | $ |
As of | ||||||||||||||
Foreign currency forward contracts denominated in: | September 30, 2023 | December 31, 2022 | ||||||||||||
U. S. dollar (USD) | ||||||||||||||
U.K. pound sterling (GBP) | ||||||||||||||
Euro (EUR) | ||||||||||||||
Australian dollar (AUD) | ||||||||||||||
South African rand (ZAR) | ||||||||||||||
Colombian peso (COP) |
Derivatives in cash flow hedging relationships | Derivatives not designated as hedging instruments | |||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||
September 30, 2023 | December 31, 2022 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||
Other current assets | $ | $ | $ | $ | ||||||||||||||||||||||
Other assets | $ | $ | $ | $ | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | $ | $ | $ | ||||||||||||||||||||||
Other non-current liabilities | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
Derivative financial instruments: | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Unrealized gain/(loss) recognized in AOCI | ||||||||||||||||||||||||||
Derivatives in cash flow hedging relationships | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||
Gain/(loss) recognized in unaudited consolidated statements of income | ||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | $ | ( | $ | ( | $ | $ | ( |
Three months ended September 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
As per unaudited consolidated statements of income | Gain/(loss) on derivative financial instruments | As per unaudited consolidated statements of income | Gain/(loss) on derivative financial instruments | |||||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||||||||
Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI | ||||||||||||||||||||||||||
Cost of revenues | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
General and administrative expenses | $ | $ | ( | |||||||||||||||||||||||
Selling and marketing expenses | $ | $ | ( | |||||||||||||||||||||||
Depreciation and amortization expense | $ | ( | $ | ( | ||||||||||||||||||||||
Interest expense | $ | $ | ||||||||||||||||||||||||
Total before tax | ( | ( | ||||||||||||||||||||||||
Income tax effects on above | ( | |||||||||||||||||||||||||
Net of tax | $ | ( | $ | ( | ||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Location in unaudited consolidated statements of income where gain/(loss) was recognized | ||||||||||||||||||||||||||
Foreign exchange gain/(loss), net | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
$ | $ | ( | $ | $ | ( |
Nine months ended September 30, | ||||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
As per unaudited consolidated statements of income | Gain/(loss) on derivative financial instruments | As per unaudited consolidated statements of income | Gain/(loss) on derivative financial instruments | |||||||||||||||||||||||
Derivatives in cash flow hedging relationships | ||||||||||||||||||||||||||
Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI | ||||||||||||||||||||||||||
Cost of revenues | $ | $ | ( | $ | $ | |||||||||||||||||||||
General and administrative expenses | $ | ( | $ | |||||||||||||||||||||||
Selling and marketing expenses | $ | ( | $ | |||||||||||||||||||||||
Depreciation and amortization expense | $ | ( | $ | |||||||||||||||||||||||
Interest expense | $ | $ | ||||||||||||||||||||||||
Total before tax | ( | |||||||||||||||||||||||||
Income tax effects on above | ( | |||||||||||||||||||||||||
Net of tax | $ | ( | $ | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Location in unaudited consolidated statements of income where gain/(loss) was recognized | ||||||||||||||||||||||||||
Foreign exchange gain/(loss), net | $ | $ | $ | $ | ( | |||||||||||||||||||||
$ | $ | $ | $ | ( |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Revolving credit facility | |||||||||||
Current portion of long-term borrowings | $ | $ | |||||||||
Long-term borrowings | |||||||||||
Total borrowings | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Effective Interest Rate | % | % | % | % |
Revolving credit facility | |||||||||||
Principal Payments | Interest Payments* | ||||||||||
2023 (October 1 - December 31) | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
Total | $ | $ |
Shares repurchased | Total consideration | Weighted average purchase price per share (1) | |||||||||||||||
Three months ended September 30, 2023 | $ | $ | |||||||||||||||
Three months ended September 30, 2022 | $ | $ | |||||||||||||||
Nine months ended September 30, 2023 | $ | $ | |||||||||||||||
Nine months ended September 30, 2022 | $ | $ |
Shares repurchased | Total consideration | Weighted average purchase price per share | |||||||||||||||
Three months ended September 30, 2023 | $ | $ | |||||||||||||||
Three months ended September 30, 2022 | $ | $ | |||||||||||||||
Nine months ended September 30, 2023 | $ | $ | |||||||||||||||
Nine months ended September 30, 2022 | $ | $ |
Change in Plan Assets | ||||||||
Plan assets as of January 1, 2023 | $ | |||||||
Actual return | ||||||||
Employer contribution | ||||||||
Benefits paid* | ( | |||||||
Effect of exchange rate changes | ( | |||||||
Plan assets as of September 30, 2023 | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest cost | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of actuarial (gain)/loss, gross of tax | ( | ( | |||||||||||||||||||||
Net gratuity cost | $ | $ | $ | $ | |||||||||||||||||||
Amortization of actuarial (gain)/loss, gross of tax | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Income tax effects on above | ( | ( | ( | ( | |||||||||||||||||||
Amortization of actuarial (gain)/loss, net of tax | $ | ( | $ | $ | ( | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Contribution to the 401(k) Plans | $ | $ | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Contributions to the defined social security contribution plans | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
Operating Lease | |||||||||||
Operating lease right-of-use assets, net | $ | $ | |||||||||
Operating lease liabilities - Current | $ | $ | |||||||||
Operating lease liabilities - Non-current | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance Lease | |||||||||||
Property and equipment, gross | $ | $ | |||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ | |||||||||
Finance lease liabilities - Current | $ | $ | |||||||||
Finance lease liabilities - Non-current | |||||||||||
Total finance lease liabilities | $ | $ |
Lease cost | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||
Finance lease: | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Amortization of right-of-use assets | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Operating lease(a) | |||||||||||||||||||||||
Variable lease costs | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
Cash payments for amounts included in the measurement of lease liabilities : | |||||||||||
Operating cash outflows for operating leases | $ | $ | |||||||||
Operating cash outflows for finance leases | $ | $ | |||||||||
Financing cash outflows for finance leases | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | $ | |||||||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | $ | |||||||||
Weighted average remaining lease term (in years) | |||||||||||
Finance lease | |||||||||||
Operating lease | |||||||||||
Weighted average discount rate | |||||||||||
Finance lease | % | % | |||||||||
Operating lease | % | % |
Operating Leases | Finance Leases | ||||||||||
2023 (October 1 - December 31) | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 and thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Imputed interest | |||||||||||
Present value of lease liabilities | $ | $ |
Operating Leases | Finance Leases | ||||||||||
2023 | $ | $ | |||||||||
2024 | |||||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 and thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Imputed interest | |||||||||||
Present value of lease liabilities | $ | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Deferred taxes benefit / (expense) recognized on: | |||||||||||||||||||||||
Unrealized gain/(loss) on cash flow hedges | $ | $ | $ | ( | $ | ||||||||||||||||||
Reclassification adjustment for cash flow hedges | ( | ( | |||||||||||||||||||||
Reclassification adjustment for retirement benefits | ( | ( | ( | ( | |||||||||||||||||||
Foreign currency translation adjustments | |||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||||||||||
General and administrative expenses | |||||||||||||||||||||||
Selling and marketing expenses | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Income tax benefit related to stock-based compensation(1) | $ | $ | $ | $ |
Number of Stock Options | Weighted Average Exercise Price | Aggregate Intrinsic Value | Weighted Average Remaining Contractual Life (Years) | ||||||||||||||||||||
Outstanding as of December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | — | ||||||||||||||||||||||
Exercised | ( | — | |||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||
Outstanding as of September 30, 2023 | $ | $ | — | ||||||||||||||||||||
Vested and exercisable as of September 30, 2023 | $ | $ | — | ||||||||||||||||||||
Weighted average grant date fair value of per unit of stock option granted during the period | $ |
Nine months ended September 30, 2023 | |||||
Dividend yield | |||||
Expected life (years) | |||||
Risk free interest rate for expected life | % | ||||
Volatility for expected life | % |
Restricted Stock Units (SMP) | |||||||||||
Number | Weighted Average Fair Value | ||||||||||
Outstanding as of December 31, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | |||||||||||
Forfeited | ( | ||||||||||
Outstanding as of September 30, 2023 | $ |
Restricted Stock Units | |||||||||||
Number | Weighted Average Fair Value | ||||||||||
Outstanding as of December 31, 2022* | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Outstanding as of September 30, 2023* | $ |
Revenue Based PRSUs | Market Condition Based PRSUs | ||||||||||||||||||||||
Number | Weighted Average Fair Value | Number | Weighted Average Fair Value | ||||||||||||||||||||
Outstanding as of December 31, 2022 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Outstanding as of September 30, 2023 | $ | $ |
Number | Total Proceeds Received | |||||||||||||
Shares available for issuance as of December 31, 2022 | ||||||||||||||
Issuance of common stock related to the: | ||||||||||||||
First offering period | ( | $ | ||||||||||||
Second offering period | ( | $ | ||||||||||||
Shares available for issuance as of September 30, 2023 | ||||||||||||||
Contributions received for the third offering period up to September 30, 2023 | $ |
Second offering period of January 1, 2023 to June 30, 2023 | Third offering period of July 1, 2023 to December 31, 2023 | ||||||||||
Dividend yield | |||||||||||
Expected life (years) | |||||||||||
Risk free interest rate for expected life | % | % | |||||||||
Volatility for expected life | % | % | |||||||||
Discount for illiquidity | % | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
(dollars in millions) | (dollars in millions) | ||||||||||||||||||||||
Revenues, net | $ | 411.0 | $ | 361.4 | $ | 1,216.6 | $ | 1,037.3 | |||||||||||||||
Cost of revenues(1) | 256.0 | 230.5 | 760.7 | 659.2 | |||||||||||||||||||
Gross profit(1) | 155.0 | 130.9 | 455.9 | 378.1 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
General and administrative expenses | 52.2 | 42.5 | 144.5 | 122.9 | |||||||||||||||||||
Selling and marketing expenses | 31.0 | 23.9 | 88.7 | 72.0 | |||||||||||||||||||
Depreciation and amortization expense | 11.6 | 14.4 | 38.2 | 42.1 | |||||||||||||||||||
Total operating expenses | 94.8 | 80.8 | 271.4 | 237.0 | |||||||||||||||||||
Income from operations | 60.2 | 50.1 | 184.5 | 141.1 | |||||||||||||||||||
Foreign exchange gain, net | 0.4 | 1.5 | 0.8 | 4.7 | |||||||||||||||||||
Interest expense | (3.4) | (2.4) | (10.0) | (4.8) | |||||||||||||||||||
Other income, net | 0.8 | 2.3 | 6.6 | 4.5 | |||||||||||||||||||
Income before income tax expense and earnings from equity affiliates | 58.0 | 51.5 | 181.9 | 145.5 | |||||||||||||||||||
Income tax expense | 14.2 | 12.5 | 37.8 | 34.8 | |||||||||||||||||||
Income before earnings from equity affiliates | 43.8 | 39.0 | 144.1 | 110.7 | |||||||||||||||||||
Gain from equity-method investment | 0.1 | 0.1 | 0.2 | 0.4 | |||||||||||||||||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ | 43.9 | $ | 39.1 | $ | 144.3 | $ | 111.1 |
Three months ended September 30, | Percentage change | ||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Insurance | $ | 136.4 | $ | 116.2 | $ | 20.2 | 17.4 | % | |||||||||||||||
Healthcare | 26.2 | 22.8 | 3.4 | 14.7 | % | ||||||||||||||||||
Emerging Business | 65.3 | 56.1 | 9.2 | 16.6 | % | ||||||||||||||||||
Analytics | 183.1 | 166.3 | 16.8 | 10.1 | % | ||||||||||||||||||
Total revenues, net | $ | 411.0 | $ | 361.4 | $ | 49.6 | 13.7 | % |
Cost of Revenues | Gross Margin | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Change | Percentage change | Three months ended September 30, | Change | |||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 86.5 | $ | 75.0 | $ | 11.5 | 15.2 | % | 36.6 | % | 35.4 | % | 1.2 | % | |||||||||||||||||||||||||||
Healthcare | 16.5 | 17.1 | (0.6) | (3.4) | % | 36.8 | % | 25.0 | % | 11.8 | % | ||||||||||||||||||||||||||||||
Emerging Business | 37.6 | 32.4 | 5.2 | 16.2 | % | 42.4 | % | 42.2 | % | 0.2 | % | ||||||||||||||||||||||||||||||
Analytics | 115.4 | 106.0 | 9.4 | 9.0 | % | 37.0 | % | 36.3 | % | 0.7 | % | ||||||||||||||||||||||||||||||
Total | $ | 256.0 | $ | 230.5 | $ | 25.5 | 11.1 | % | 37.7 | % | 36.2 | % | 1.5 | % |
Three months ended September 30, | Change | Percentage change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
General and administrative expenses | $ | 52.2 | $ | 42.5 | $ | 9.7 | 22.8 | % | |||||||||||||||
Selling and marketing expenses | 31.0 | 23.9 | 7.1 | 29.6 | % | ||||||||||||||||||
Selling, general and administrative expenses | $ | 83.2 | $ | 66.4 | $ | 16.8 | 25.2 | % | |||||||||||||||
As a percentage of revenues | 20.2 | % | 18.4 | % |
Three months ended September 30, | Change | Percentage change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Depreciation expense | $ | 8.4 | $ | 10.1 | $ | (1.7) | (16.9) | % | |||||||||||||||
Intangible amortization expense | 3.2 | 4.3 | (1.1) | (25.6) | % | ||||||||||||||||||
Depreciation and amortization expense | $ | 11.6 | $ | 14.4 | $ | (2.8) | (19.5) | % | |||||||||||||||
As a percentage of revenues | 2.8 | % | 4.0 | % |
Three months ended September 30, | Change | Percentage change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Gain on sale and mark-to-market on investments | $ | 1.3 | $ | 1.5 | $ | (0.2) | (9.1) | % | |||||||||||||||
Interest and dividend income | 2.1 | 1.5 | 0.6 | 44.5 | % | ||||||||||||||||||
Fair value changes of contingent consideration | (2.5) | — | (2.5) | (100.0) | % | ||||||||||||||||||
Others, net | (0.1) | (0.7) | 0.6 | (75.3) | % | ||||||||||||||||||
Other income, net | $ | 0.8 | $ | 2.3 | $ | (1.5) | (65.6) | % |
Nine months ended September 30, | Percentage change | ||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Insurance | $ | 390.8 | $ | 328.0 | $ | 62.8 | 19.1 | % | |||||||||||||||
Healthcare | 80.0 | 72.1 | 7.9 | 11.1 | % | ||||||||||||||||||
Emerging Business | 198.7 | 160.6 | 38.1 | 23.7 | % | ||||||||||||||||||
Analytics | 547.1 | 476.6 | 70.5 | 14.8 | % | ||||||||||||||||||
Total revenues, net | $ | 1,216.6 | $ | 1,037.3 | $ | 179.3 | 17.3 | % |
Cost of Revenues | Gross Margin | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Percentage change | Nine months ended September 30, | Change | ||||||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||||||||||||||||||||
Insurance | $ | 253.1 | $ | 210.7 | $ | 42.4 | 20.1 | % | 35.2 | % | 35.7 | % | (0.5) | % | |||||||||||||||||||||||||||
Healthcare | 52.9 | 52.4 | 0.5 | 0.8 | % | 33.9 | % | 27.2 | % | 6.7 | % | ||||||||||||||||||||||||||||||
Emerging Business | 111.4 | 92.8 | 18.6 | 20.1 | % | 43.9 | % | 42.2 | % | 1.7 | % | ||||||||||||||||||||||||||||||
Analytics | 343.3 | 303.3 | 40.0 | 13.2 | % | 37.3 | % | 36.4 | % | 0.9 | % | ||||||||||||||||||||||||||||||
Total | $ | 760.7 | $ | 659.2 | $ | 101.5 | 15.4 | % | 37.5 | % | 36.5 | % | 1.0 | % |
Nine months ended September 30, | Percentage change | ||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
General and administrative expenses | $ | 144.5 | $ | 122.9 | $ | 21.6 | 17.6 | % | |||||||||||||||
Selling and marketing expenses | 88.7 | 72.0 | 16.7 | 23.1 | % | ||||||||||||||||||
Selling, general and administrative expenses | $ | 233.2 | $ | 194.9 | $ | 38.3 | 19.7 | % | |||||||||||||||
As a percentage of revenues | 19.2 | % | 18.8 | % |
Nine months ended September 30, | Percentage change | ||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
(dollars in millions) | |||||||||||||||||||||||
Depreciation expense | $ | 26.7 | $ | 29.2 | $ | (2.5) | (8.6) | % | |||||||||||||||
Intangible amortization expense | 11.5 | 12.9 | (1.4) | (10.6) | % | ||||||||||||||||||
Depreciation and amortization expense | $ | 38.2 | $ | 42.1 | $ | (3.9) | (9.2) | % | |||||||||||||||
As a percentage of revenues | 3.1 | % | 4.1 | % |
Nine months ended September 30, | Percentage change | ||||||||||||||||||||||
2023 | 2022 | Change | |||||||||||||||||||||
Gain on sale and mark-to-market on investments | $ | 4.1 | $ | 3.4 | $ | 0.7 | 22.0 | % | |||||||||||||||
Interest and dividend income | 5.5 | 3.7 | 1.8 | 49.2 | % | ||||||||||||||||||
Fair value changes of contingent consideration | (2.5) | (1.0) | (1.5) | 150.0 | % | ||||||||||||||||||
Others, net | (0.5) | (1.6) | 1.1 | (69.5) | % | ||||||||||||||||||
Other income, net | $ | 6.6 | $ | 4.5 | $ | 2.1 | 46.6 | % |
Nine months ended September 30, | |||||||||||
2023 | 2022 | ||||||||||
(dollars in millions) | |||||||||||
Opening cash, cash equivalents and restricted cash | $ | 125.6 | $ | 143.8 | |||||||
Net cash provided by operating activities | 132.2 | 101.1 | |||||||||
Net cash provided by/(used for) investing activities | 11.4 | (75.2) | |||||||||
Net cash used for financing activities | (141.0) | (61.8) | |||||||||
Effect of exchange rate changes | (0.3) | (9.6) | |||||||||
Closing cash, cash equivalents and restricted cash | $ | 127.9 | $ | 98.3 |
As of September 30,2023 | As of December 31, 2022 | ||||||||||
(dollars in millions) | |||||||||||
Revolving credit facility | |||||||||||
Current portion of long-term borrowings | $ | 50.0 | $ | 30.0 | |||||||
Long-term borrowings | 160.0 | 220.0 | |||||||||
Total borrowings | $ | 210.0 | $ | 250.0 |
Shares Purchased from Employees in connection with satisfaction of Withholding Tax Obligations | Shares Purchased as Part of Publicly Announced Programs | Total Number of Shares Purchased | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Programs | |||||||||||||||||||||||||||||||||||
Period | Number of Shares Purchased | Average Price Paid per share | Number of Shares Purchased | Average Price Paid per share | ||||||||||||||||||||||||||||||||||
July 1, 2023 through July 31, 2023 | — | $ | — | 320,620 | $ | 31.19 | 320,620 | $ | 156,632,595 | |||||||||||||||||||||||||||||
August 1, 2023 through August 31, 2023 | — | $ | — | 356,689 | $ | 28.04 | 356,689 | $ | 146,632,597 | |||||||||||||||||||||||||||||
September 1, 2023 through September 30, 2023 | 45,267 | $ | 29.25 | 298,465 | $ | 28.94 | 343,732 | $ | 137,995,675 | |||||||||||||||||||||||||||||
Total | 45,267 | $ | 29.25 | 975,774 | $ | 29.35 | 1,021,041 | $ | — |
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
32.2 | ||||||||
101.INS | XBRL Instance Document* | |||||||
101.SCH | XBRL Taxonomy Extension Scheme* | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase* | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase* | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase* | |||||||
101.PRE | XBRL Extension Presentation Linkbase* | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | |||||||
Date: October 26, 2023 | EXLSERVICE HOLDINGS, INC. | ||||||||||
By: | /S/ MAURIZIO NICOLELLI | ||||||||||
MAURIZIO NICOLELLI Chief Financial Officer (Duly Authorized Signatory, Principal Financial and Accounting Officer) |
EXLSERVICE HOLDINGS, INC. | ||||||||
By: | /s/ Rohit Kapoor | |||||||
Name: | Rohit Kapoor | |||||||
Title: | Chief Executive Officer, Vice- Chairman and Director |
Date: October 26, 2023 | /s/ Rohit Kapoor | ||||
Rohit Kapoor | |||||
Vice-Chairman and Chief Executive Officer |
Date: October 26, 2023 | /s/ Maurizio Nicolelli | ||||
Maurizio Nicolelli | |||||
Chief Financial Officer |
/s/ Rohit Kapoor | |||||
Rohit Kapoor | |||||
Vice-Chairman and Chief Executive Officer | |||||
October 26, 2023 |
/s/ Maurizio Nicolelli | |||||
Maurizio Nicolelli | |||||
Chief Financial Officer | |||||
October 26, 2023 |
Consolidated Balance Sheets (Unaudited) (Parenthetical) |
Sep. 30, 2023
$ / shares
shares
|
Dec. 31, 2022
$ / shares
shares
|
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, issued (in shares) | 202,124,185 | 199,939,880 |
Common stock, outstanding (in shares) | 165,117,859 | 166,172,220 |
Treasury stock, common (in shares) | 37,006,326 | 33,767,660 |
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||||
Income Statement [Abstract] | ||||||||
Revenues, net | $ 410,971 | $ 361,351 | $ 1,216,610 | $ 1,037,341 | ||||
Cost of revenues | [1] | 256,002 | 230,462 | 760,691 | 659,185 | |||
Gross profit | 154,969 | 130,889 | 455,919 | 378,156 | ||||
Operating expenses: | ||||||||
General and administrative expenses | 52,213 | 42,519 | 144,564 | 122,898 | ||||
Selling and marketing expenses | 30,943 | 23,879 | 88,674 | 72,034 | ||||
Depreciation and amortization expense | 11,583 | 14,380 | 38,192 | 42,057 | ||||
Total operating expenses | 94,739 | 80,778 | 271,430 | 236,989 | ||||
Income from operations | 60,230 | 50,111 | 184,489 | 141,167 | ||||
Foreign exchange gain, net | 409 | 1,504 | 838 | 4,683 | ||||
Interest expense | (3,405) | (2,442) | (10,030) | (4,820) | ||||
Other income, net | 778 | 2,261 | 6,594 | 4,498 | ||||
Income before income tax expense and earnings from equity affiliates | 58,012 | 51,434 | 181,891 | 145,528 | ||||
Income tax expense | 14,161 | 12,447 | 37,773 | 34,774 | ||||
Income before earnings from equity affiliates | 43,851 | 38,987 | 144,118 | 110,754 | ||||
Gain from equity-method investment | 25 | 108 | 157 | 365 | ||||
Net income attributable to ExlService Holdings, Inc. stockholders | $ 43,876 | $ 39,095 | $ 144,275 | $ 111,119 | ||||
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||||||
Basic (in dollars per share) | [2] | $ 0.26 | $ 0.24 | $ 0.87 | $ 0.67 | |||
Diluted (in dollars per share) | [2] | $ 0.26 | $ 0.23 | $ 0.86 | $ 0.66 | |||
Weighted average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||||||
Basic (in shares) | [2] | 166,159,619 | 166,189,165 | 166,707,599 | 166,801,730 | |||
Diluted (in shares) | [2] | 167,688,374 | 168,888,745 | 168,591,612 | 169,168,185 | |||
|
Consolidated Statements of Income (Unaudited) (Parenthetical) |
1 Months Ended | |
---|---|---|
Jun. 20, 2023 |
Aug. 31, 2023 |
|
Income Statement [Abstract] | ||
Stock split conversion ratio | 5 | 5 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||||||
Statement of Comprehensive Income [Abstract] | ||||||||||
Net income | $ 43,876 | $ 39,095 | $ 144,275 | $ 111,119 | ||||||
Other comprehensive income/(loss): | ||||||||||
Unrealized gain/(loss) on cash flow hedges | (7,903) | (13,489) | 8,242 | (28,638) | ||||||
Foreign currency translation income (loss) | (7,782) | (19,144) | (2,605) | (49,371) | ||||||
Reclassification adjustments | ||||||||||
Gain on cash flow hedges | [1] | 32 | 1,567 | 4,261 | (1,881) | |||||
Retirement benefits | [2] | (22) | 147 | (70) | 451 | |||||
Income tax effects relating to above | [3] | 3,017 | 10,090 | (2,490) | 14,710 | |||||
Total other comprehensive income/(loss) | (12,658) | (20,829) | 7,338 | (64,729) | ||||||
Total comprehensive income | $ 31,218 | $ 18,266 | $ 151,613 | $ 46,390 | ||||||
|
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands |
Total |
Common Stock |
Additional Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
|||||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2021 | [1] | 197,541,700 | |||||||||
Beginning balance at Dec. 31, 2021 | $ 693,156 | $ 198 | [1] | $ 395,584 | [1] | $ 756,137 | $ (89,474) | $ (369,289) | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2021 | [1] | (31,084,290) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock issued against stock-based compensation plans (in shares) | [1] | 1,453,080 | |||||||||
Stock issued against stock-based compensation plans | 0 | $ 1 | [1] | (1) | [1] | ||||||
Stock-based compensation | $ 36,750 | 36,750 | [1] | ||||||||
Acquisition of treasury stock (in shares) | (2,519,290) | (2,655,385) | [1] | ||||||||
Acquisition of treasury stock | $ (71,712) | $ (71,712) | |||||||||
Other comprehensive income (loss) | (64,729) | (64,729) | |||||||||
Net income | 111,119 | 111,119 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1] | 198,994,780 | |||||||||
Ending balance at Sep. 30, 2022 | 704,584 | $ 199 | [1] | 432,333 | [1] | 867,256 | (154,203) | $ (441,001) | |||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | [1] | (33,739,675) | |||||||||
Beginning balance (in shares) at Jun. 30, 2022 | [1] | 198,975,805 | |||||||||
Beginning balance at Jun. 30, 2022 | 685,653 | $ 199 | [1] | 420,147 | 828,161 | (133,374) | $ (429,480) | ||||
Treasury stock, beginning balance (in shares) at Jun. 30, 2022 | [1] | (33,355,630) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock issued against stock-based compensation plans (in shares) | [1] | 18,975 | |||||||||
Stock issued against stock-based compensation plans | 0 | ||||||||||
Stock-based compensation | $ 12,186 | 12,186 | |||||||||
Acquisition of treasury stock (in shares) | (384,045) | (384,045) | [1] | ||||||||
Acquisition of treasury stock | $ (11,521) | $ (11,521) | |||||||||
Other comprehensive income (loss) | (20,829) | (20,829) | |||||||||
Net income | 39,095 | 39,095 | |||||||||
Ending balance (in shares) at Sep. 30, 2022 | [1] | 198,994,780 | |||||||||
Ending balance at Sep. 30, 2022 | $ 704,584 | $ 199 | [1] | 432,333 | [1] | 867,256 | (154,203) | $ (441,001) | |||
Treasury stock, ending balance (in shares) at Sep. 30, 2022 | [1] | (33,739,675) | |||||||||
Beginning balance (in shares) at Dec. 31, 2022 | 166,172,220 | 199,939,880 | [1] | ||||||||
Beginning balance at Dec. 31, 2022 | $ 758,179 | $ 200 | [1] | 444,948 | [1] | 899,105 | (144,143) | $ (441,931) | |||
Treasury stock, beginning balance (in shares) at Dec. 31, 2022 | (33,767,660) | (33,767,660) | [1] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock issued against stock-based compensation plans (in shares) | [1] | 2,184,305 | |||||||||
Stock issued against stock-based compensation plans | $ 4,646 | $ 2 | [1] | 4,644 | [1] | ||||||
Stock-based compensation | $ 42,985 | 42,985 | [1] | ||||||||
Acquisition of treasury stock (in shares) | (3,001,619) | (3,238,666) | [1] | ||||||||
Acquisition of treasury stock | $ (101,336) | $ (101,336) | |||||||||
Other comprehensive income (loss) | 7,338 | 7,338 | |||||||||
Net income | $ 144,275 | 144,275 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | 165,117,859 | 202,124,185 | [1] | ||||||||
Ending balance at Sep. 30, 2023 | $ 856,087 | $ 202 | [1] | 492,577 | [1] | 1,043,380 | (136,805) | $ (543,267) | |||
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | (37,006,326) | (37,006,326) | [1] | ||||||||
Beginning balance (in shares) at Jun. 30, 2023 | [1] | 201,748,635 | |||||||||
Beginning balance at Jun. 30, 2023 | $ 834,214 | $ 202 | [1] | 471,962 | [1] | 999,504 | (124,147) | $ (513,307) | |||
Treasury stock, beginning balance (in shares) at Jun. 30, 2023 | [1] | (35,985,285) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Stock issued against stock-based compensation plans (in shares) | [1] | 375,550 | |||||||||
Stock issued against stock-based compensation plans | 3,548 | 3,548 | [1] | ||||||||
Stock-based compensation | $ 17,067 | 17,067 | [1] | ||||||||
Acquisition of treasury stock (in shares) | (975,774) | (1,021,041) | [1] | ||||||||
Acquisition of treasury stock | $ (29,960) | $ (29,960) | |||||||||
Other comprehensive income (loss) | (12,658) | (12,658) | |||||||||
Net income | $ 43,876 | 43,876 | |||||||||
Ending balance (in shares) at Sep. 30, 2023 | 165,117,859 | 202,124,185 | [1] | ||||||||
Ending balance at Sep. 30, 2023 | $ 856,087 | $ 202 | [1] | $ 492,577 | [1] | $ 1,043,380 | $ (136,805) | $ (543,267) | |||
Treasury stock, ending balance (in shares) at Sep. 30, 2023 | (37,006,326) | (37,006,326) | [1] | ||||||||
|
Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) |
1 Months Ended | |
---|---|---|
Jun. 20, 2023 |
Aug. 31, 2023 |
|
Statement of Stockholders' Equity [Abstract] | ||
Stock split conversion ratio | 5 | 5 |
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash flows from operating activities: | ||
Net income | $ 144,275 | $ 111,119 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 38,010 | 41,993 |
Stock-based compensation expense | 42,985 | 36,750 |
Amortization of operating lease right-of-use assets | 15,171 | 17,365 |
Unrealized loss/(gain) on investments | 6,003 | (475) |
Unrealized foreign currency exchange gain, net | (862) | (16,813) |
Deferred income tax benefit | (26,555) | (5,621) |
Allowance for expected credit losses | 2,444 | 177 |
Fair value changes in contingent consideration | 2,500 | 1,000 |
Others, net | 1,384 | 1,240 |
Change in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (46,488) | (68,066) |
Other current assets | (412) | 2,553 |
Income taxes payable, net | (12,022) | 4,043 |
Other assets | (18,792) | (8,428) |
Accounts payable | (4,624) | (1,927) |
Deferred revenue | 2,319 | 2,103 |
Accrued employee costs | (1,853) | (11,778) |
Accrued expenses and other liabilities | 4,299 | 13,685 |
Operating lease liabilities | (15,622) | (17,831) |
Net cash provided by operating activities | 132,160 | 101,089 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (41,106) | (32,099) |
Proceeds from sale of property and equipment | 640 | 197 |
Investment in equity affiliate | (600) | 0 |
Business acquisition (net of cash and cash equivalents acquired) | 0 | (3,322) |
Purchases of investments | (165,021) | (164,313) |
Proceeds from redemption of investments | 217,525 | 124,355 |
Net cash provided by/(used for) investing activities | 11,438 | (75,182) |
Cash flows from financing activities: | ||
Principal payments of finance lease liabilities | (120) | (108) |
Proceeds from borrowings | 70,000 | 35,000 |
Repayments of borrowings | (110,000) | (25,000) |
Acquisition of treasury stock | (100,542) | (71,712) |
Payment of contingent consideration | (5,000) | 0 |
Proceeds from ESPP contribution and exercise of stock options | 4,690 | 0 |
Net cash used for financing activities | (140,972) | (61,820) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (288) | (9,626) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 2,338 | (45,539) |
Cash, cash equivalents and restricted cash at the beginning of the period | 125,621 | 143,810 |
Cash, cash equivalents and restricted cash at the end of the period | 127,959 | 98,271 |
Cash paid during the period for: | ||
Interest | 10,580 | 4,982 |
Income taxes, net of refunds | 76,743 | 35,192 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Assets acquired under finance lease | $ 285 | $ 218 |
Organization |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence and machine learning, the Company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. The Company’s data-led value creation framework enables better and faster decision making, leveraging its end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows. The Company embeds digital operations and solutions into clients’ businesses and introduces its data led approach to transform operations. The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”).
|
Summary of Significant Accounting Policies |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a)Basis of Preparation and Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the unaudited consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP. (b)Stock Split The Company recognizes the effects of a forward stock split in the financial statements if there are changes in the total par value of the increased shares upon such forward stock split. The Company reclassifies an amount equal to the par value of the increased shares resulting from the forward stock split from “Additional paid-in capital” to “Common stock.” The Company presents the effects of a forward stock split on earnings per share in the financial statements retroactively for all the periods presented. The Company has an option to present other effects of the forward stock split, including changes in the total par value of the increased shares and count of shares of common stock, in the consolidated financial statements either retroactively for all the periods presented or only for the period in which the forward stock split of the common stock becomes effective. The Company has elected to present the effects of the forward stock split retroactively for all the periods presented. (c)Use of Estimates The preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, and stock-based awards, useful life of long-lived assets and other intangible assets, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, methods to calculate depreciation and amortization for long-lived assets and other intangible assets, and recoverability of long-lived assets, goodwill and other intangible assets. (d)Recent Accounting Pronouncements In March 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-01, Leases (“Accounting Standards Codification (“ASC”) Topic 842”): Common Control Arrangements. This ASU provides guidance in ASC Topic 842 that leasehold improvements associated with common control leases should be (i) amortized by the lessee over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset through a lease, and (ii) accounted for as a transfer between entities under common control through an adjustment to equity if and when the lessee no longer controls the use of the underlying asset. The ASU is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. When adopted in an interim period, it must be adopted from the beginning of the year that includes that interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. (e)Recently adopted Accounting Pronouncements In October 2021, FASB issued ASU No. 2021-08, Business Combinations (“ASC Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in ASC Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contract with Customers, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The adoption of this ASU is applicable for future business combinations. In July 2023, the FASB issued ASU No. 2023-03, Presentation of Financial Statements (“ASC Topic 205”), Income Statement-Reporting Comprehensive Income (“ASC Topic 220”), Distinguishing Liabilities from Equity (“ASC Topic 480”), Equity (“ASC Topic 505”), and Compensation-Stock Compensation (“ASC Topic 718”) pursuant to SEC Staff Accounting Bulletin No. 120 and amends various SEC paragraphs in the ASC. The ASU is effective immediately upon issuance and did not have a material impact on the Company’s unaudited consolidated financial statements.
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Segment and Geographical Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographical Information | Segment and Geographical Information The Company is a provider of data analytics and digital operations and solutions. The Company manages and reports financial information through its four reportable segments: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. These business units develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and are integrally responsible for service delivery, customer satisfaction, growth and profitability. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate, and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. Revenues and cost of revenues for the three months ended September 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows:
(1) Exclusive of depreciation and amortization expense.
(1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the nine months ended September 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows:
(1) Exclusive of depreciation and amortization expense.
(1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows:
(1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers.
Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows:
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Revenues, net |
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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:
Accounts receivable includes $152,425 and $126,027 as of September 30, 2023 and December 31, 2022, 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 revenue” and “Other non-current liabilities” in the 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 nine months ended September 30, 2023 and 2022, which was included in the contract liabilities balance at the beginning of the respective periods:
Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs:
There was no impairment for contract acquisition and contract fulfillment costs as of September 30, 2023 and December 31, 2022. 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.
The movement in “Allowance for expected credit losses” on customer balances was as follows:
Concentration of credit risk To reduce credit risk, the Company conducts ongoing credit evaluations of its customers. No customer accounted for more than 10% of accounts receivable, net, as of September 30, 2023 and December 31, 2022.
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Earnings Per Share |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents (outstanding stock options, restricted stock, restricted stock units and employee stock purchase plans) issued and outstanding at the reporting date, using the treasury stock method. Common stock equivalents that are anti-dilutive are excluded from the computation of weighted average shares outstanding. The following table sets forth the computation of basic and diluted earnings per share:
(1) Prior period information has been adjusted to reflect the 5-for-1 forward stock split of the Company’s common stock effected in August 2023. Refer to Note 19 – Capital Structure to the unaudited consolidated financial statements for further details.
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Other Income, net |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income, net | Other Income, net Other income, net consists of the following:
* Refer to Note 16 - Fair Value Measurements to the unaudited consolidated financial statements for further details.
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Cash, Cash Equivalents and Restricted Cash |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following:
Restricted cash (current) primarily represents funds held on behalf of clients in dedicated bank accounts. The corresponding liability against the same is included under “Accrued Expenses and other current liabilities.” Restricted cash (non-current) represents amounts on deposit with banks against bank guarantees issued through banks in favor of relevant statutory authorities for equipment imports, deposits for obtaining indirect tax registrations and for demands against pending income tax assessments. These deposits with banks will mature one year after the balance sheet date.
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Investments |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments consist of the following:
Refer to Note 16 - Fair Value Measurements to the unaudited consolidated financial statements for further details.
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Property and Equipment |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment, net consists of the following:
Capital work in progress represents advances paid towards acquisition of property and equipment and costs incurred on internally developed software not yet ready for its intended use. During the three and nine months ended September 30, 2023, there were no material changes in estimated useful lives of property and equipment during the ordinary course of operations. The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows:
The effect of foreign exchange loss upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows:
Internally developed software costs, included under Software, was as follows:
The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows:
As of September 30, 2023 and December 31, 2022, the Company believes no impairment exists because the long-lived asset's future undiscounted net cash flows expected to be generated exceeds its carrying value; however, there can be no assurance that long-lived assets will not be impaired in future periods. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, the asset’s residual value, if any. It is reasonably possible that the judgments and estimates described above could change in future periods.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company:
As of September 30, 2023, the Company performed an assessment to determine whether events or circumstances exist that may lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company considered current and forecasted economic and market conditions and qualitative factors, such as the Company’s performance during nine months of the current fiscal year, business forecasts for the remainder of the year, stock price movements, generation and availability of cash and expansion plans. The Company reviewed key assumptions, including revisions of projected future revenues for reporting units against the results of the annual impairment test performed during the fourth quarter of 2022. The Company did not identify any triggers or indications of potential impairment for its reporting units as of September 30, 2023. The recoverability of goodwill is dependent upon the continued growth of cash flows from the Company’s business activities. This growth is based on business forecasts and improvement in profitability of its reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. Other Intangible Assets Information regarding the Company’s intangible assets is set forth below:
The amortization expense recognized in the unaudited consolidated statements of income was as follows:
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Other Current Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other Current Assets Other current assets consist of the following:
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Other Assets |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets Other assets consist of the following:
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Accrued Expenses and Other Current Liabilities |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following:
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Other Non-Current Liabilities |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following:
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Accumulated Other Comprehensive Income/(Loss) |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income/(Loss) | Accumulated Other Comprehensive Income/(Loss) Accumulated other comprehensive income/(loss) (“AOCI”) consists of actuarial gain/(loss) on retirement benefits and foreign currency translation adjustments. In addition, the Company enters into foreign currency forward contracts and interest rate swaps, which are designated as cash flow hedges and net investment hedges, as applicable, in accordance with ASC Topic 815, Derivatives and Hedging. Cumulative changes in the fair values of cash flow hedges are recognized in AOCI on the Company’s consolidated balance sheets. The fair value changes are reclassified from AOCI to unaudited consolidated statements of income upon settlement of foreign currency forward contracts designated as cash flow hedges of a forecast transaction, whereas such changes for interest rate swaps are reclassified over the term of the contract. Fair value changes related to net investment hedges are included in AOCI and are reclassified to unaudited consolidated statements of income when a foreign operation is disposed or partially disposed. The following table sets forth the changes in AOCI during the nine months ended September 30, 2023 and 2022:
(1) Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.
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Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were recognized at fair value:
(1) Represents money market funds which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. (2) Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. (3) Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. Fair Value of Derivative Financial Instruments: The Company’s derivative financial instruments consist of foreign currency forward contracts and interest rate swaps. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. Refer to Note 17 - Derivatives and Hedge Accounting to the unaudited consolidated financial statements for further details. Fair Value of Contingent Consideration: The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for business acquisitions. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals. The Company estimated the fair value of the contingent consideration based on the Monte Carlo simulation model and scenario-based method. The following table summarizes the changes in the fair value of contingent consideration:
During the three and nine months ended September 30, 2023 and 2022, there were no transfers among Level 1, Level 2 and Level 3. Financial Instruments Not Carried at Fair Value: The Company’s other financial instruments not carried at fair value consist primarily of cash and cash equivalents (except investments in money market funds, as disclosed above), short-term investments (except investments in mutual funds, as disclosed above), restricted cash, accounts receivable, net, long-term investments, accrued capital expenditures, accrued expenses, client liabilities and interest payable on borrowings for which fair values approximate their carrying amounts. The carrying value of the Company’s outstanding revolving credit facility approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt instruments.
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Derivatives and Hedge Accounting |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives and Hedge Accounting | Derivatives and Hedge Accounting The Company uses derivative instruments to mitigate cash flow volatility from risk of fluctuations in foreign currency exchange rates and interest rates. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted transactions denominated in certain foreign currencies, and interest rate swaps to hedge cash flow risks from its revolving credit facility having variable interest rate obligations. These contracts qualify as cash flow hedges under ASC Topic 815, Derivatives and Hedging, and are with counterparties that are highly rated financial institutions. For derivatives in cash flow hedging relationships as of September 30, 2023 and December 31, 2022, the Company had outstanding foreign currency forward contracts totaling $797,400 and $841,620, respectively and interest rate swaps totaling $75,000, each. The Company estimates that approximately $2,399 of derivative losses, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of September 30, 2023, could be reclassified into earnings within the next twelve months. As of September 30, 2023, the maximum outstanding term of the cash flow hedges was approximately 36 months. The Company also enters into foreign currency forward contracts to hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of fluctuations in foreign currency exchange rates associated with remeasurement of such assets and liabilities to functional currency. These foreign currency forward contracts do not qualify as fair value hedges under ASC Topic 815, Derivatives and Hedging. Changes in the fair value of these financial instruments are recognized in the unaudited consolidated statements of income and are included in the foreign exchange gain/(loss) line item. The Company’s primary exchange rate exposure is with the Indian rupee, the Philippine peso and the U.K. pound sterling (GBP). The Company also has exposure to Colombian pesos (COP), the Euro (EUR), South African rand (ZAR), the Australian dollar (AUD), the Canadian dollar (CAD) and other local currencies in which it operates. The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments:
The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets:
The following table sets forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the unaudited consolidated statements of income:
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
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Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Borrowings The following table summarizes the Company’s debt position:
Unamortized debt issuance costs for the Company’s revolving credit facility of $972 and $1,177 as of September 30, 2023 and December 31, 2022, respectively, are presented under “Other current assets” and “Other assets,” as applicable in the consolidated balance sheets. Credit Agreement The Company held a $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”), dated as of November 21, 2017 with certain lenders and Citibank N.A. as Administrative Agent. The revolving credit facility originally had a maturity date of November 21, 2022 and was voluntarily pre-payable from time to time without premium or penalty. On April 18, 2022, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into an Amendment and Restatement Agreement with Citibank, N.A. as Administrative Agent and certain lenders (the “2022 Credit Agreement”), pursuant to which the parties thereto amended and restated the Credit Agreement. Among other things, the 2022 Credit Agreement (a) provides for the issuance of new revolving credit commitments such that the aggregate amount of revolving credit commitments available to the Company is equal to $400,000; (b) extends the maturity date of the revolving credit facility from November 21, 2022 to April 18, 2027; and (c) replaces LIBOR with Secured Overnight Financing Rate (“SOFR”) as the reference rate for the U.S. dollar borrowings. The 2022 Credit Agreement provides an option to increase the commitments by up to $200,000, subject to certain approvals and conditions. The 2022 Credit Agreement includes a letter of credit sub facility and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the 2022 Credit Agreement can be used for working capital and general corporate purposes, including permitted acquisitions. Obligations under the 2022 Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the Company’s and its material domestic subsidiaries’ assets. The 2022 Credit Agreement contains customary affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of certain assets or subsidiaries. The revolving credit facility carried an effective interest rate as shown below:
As of September 30, 2023 and December 31, 2022, the Company was in compliance with all financial and non-financial covenants listed under the revolving credit facility. Expected payments for all of the Company’s borrowings as of September 30, 2023 were as follows:
* Interest payments are based on interest rate prevailing as of September 30, 2023. Letters of Credit In the ordinary course of business, the Company provides standby letters of credit to third parties primarily for facility leases. As of each of September 30, 2023 and December 31, 2022, the Company had outstanding letters of credit of $461, that were not recognized in the consolidated balance sheets.
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Capital Structure |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. Stock Split On June 20, 2023, the Company’s stockholders approved an amendment to the Company’s Amended and Restated Certificate of Incorporation, which upon filing with the State of Delaware on August 1, 2023, and effectiveness thereof, effected a 5-for-1 forward stock split of the Company’s common stock (the “2023 Stock Split”) and an increase in the number of authorized shares of the Company’s common stock from 100,000,000 shares to 400,000,000 shares. The par value of each share of common stock, $0.001, remained unchanged. Pursuant to the 2023 Stock Split, each stockholder of record on July 25, 2023 holding shares of the Company’s common stock received four additional shares of the Company’s common stock for every one share held. The additional shares were distributed after the close of business on August 1, 2023. The common shares began trading on the Nasdaq Global Select Market on a post-split basis on August 2, 2023. All share count and per share amounts in the unaudited consolidated financial statements have been retrospectively adjusted from January 1, 2022 to reflect the 2023 Stock Split as if it occurred at the beginning of the earliest period presented. An amount equal to the par value of the increased shares resulting from the 2023 Stock Split was reclassified from “Additional paid-in capital” to “Common stock.” Share Repurchases The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below:
(1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock. On October 5, 2021, the Company’s board of directors authorized a $300,000 common stock repurchase program beginning January 1, 2022 (the “2022 Repurchase Program”). Under the 2022 Repurchase Program, shares may be purchased by the Company from time to time from the open market and through private transactions, or otherwise, as determined by the Company’s management as market conditions warrant. Repurchases may be discontinued at any time by the management. The Company purchased shares of its common stock, for a total consideration including commissions, under the 2022 Repurchase Program, as below:
Repurchased shares have been recorded as treasury shares and will be held until the Company’s board of directors designates that these shares be retired or used for other purposes.
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Employee Benefit Plans |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plan in India (the “India Plan”) provides for a lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit, which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the “Philippines Plan”). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. The India Plan is partially funded whereas the Philippines Plan is unfunded. The Company makes annual contributions to the India Plan established with insurance companies. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis and interest is declared retrospectively on March 31 of each year. The Company expects to earn a return of approximately 7.2% per annum on the India Plan for the year ending on December 31, 2023.
* Benefits payments were substantially made through the plan assets during the nine months ended September 30, 2023. Components of net periodic benefit costs recognized in unaudited consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows:
The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined social security contribution plan. The Company may make discretionary contributions of up to a maximum of 3.0% of employee compensation within certain limits. The Company’s accrual for contribution to the 401(k) Plans was as follows:
The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company was as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information
The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:
(a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows:
The Company modified certain of its operating leases, resulting in a net decrease of its lease liabilities by $1,876 and a net increase of its lease liabilities by $209, during the nine months ended September 30, 2023 and 2022, respectively, with a corresponding adjustment to ROU assets. As of September 30, 2023 and December 31, 2022, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of September 30, 2023 were as follows:
Maturities of lease liabilities as of December 31, 2022 were as follows:
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Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, Leases, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information
The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:
(a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows:
The Company modified certain of its operating leases, resulting in a net decrease of its lease liabilities by $1,876 and a net increase of its lease liabilities by $209, during the nine months ended September 30, 2023 and 2022, respectively, with a corresponding adjustment to ROU assets. As of September 30, 2023 and December 31, 2022, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. Maturities of lease liabilities as of September 30, 2023 were as follows:
Maturities of lease liabilities as of December 31, 2022 were as follows:
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The Company determines the tax provision for interim periods using an estimate of its annual effective tax rate. Each quarter, the Company updates its estimate of annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment. The effective tax rate increased from 24.2% during the three months ended September 30, 2022 to 24.4% during the three months ended September 30, 2023. The Company recorded income tax expense of $14,161 and $12,447 for the three months ended September 30, 2023 and 2022, respectively. The increase in income tax expense was primarily as a result of higher profit during the three months ended September 30, 2023, compared to the three months ended September 30, 2022, and an increase in non-deductible expenses during the three months ended September 30, 2023, partially offset by higher excess tax benefits related to stock-based compensation, and higher tax credits during the three months ended September 30, 2023, compared to the three months ended September 30, 2022. The effective tax rate decreased from 23.9% during the nine months ended September 30, 2022 to 20.8% during the nine months ended September 30, 2023. The Company recorded income tax expense of $37,773 and $34,774 for the nine months ended September 30, 2023 and 2022, respectively. The increase in income tax expense was primarily as a result of higher profit during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, and an increase in non-deductible expenses, partially offset by higher excess tax benefits related to stock-based compensation, and higher tax credits during the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022. During the nine months ended September 30, 2023, the Company’s subsidiaries in India, the United Kingdom and Australia repatriated $76,000 (net of $4,015 withholding taxes), $15,598 and $9,081, respectively, to the United States. These distributions do not constitute a change in the Company’s permanent reinvestment assertion. Deferred income taxes recognized in AOCI were as follows:
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Stock-Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Prior period information has been adjusted to reflect the 5-for-1 forward stock split of the Company’s common stock effected in August 2023. Refer to Note 19 – Capital Structure to the unaudited consolidated financial statements for further details. Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income:
(1) Includes $462 and ($92) during the three months ended September 30, 2023 and 2022, respectively, and $13,172 and $3,532 during the nine months ended September 30, 2023 and 2022, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation. As of September 30, 2023 and December 31, 2022, the Company had 3,284,270 and 6,623,775 shares, respectively, available for grant under the 2018 Omnibus Incentive Plan. Stock Options Stock options activity under the Company’s stock-based compensation plans is shown below:
Stock options granted under the 2018 Omnibus Incentive Plan during the three and nine months ended September 30, 2023, have a contractual period of ten years and vest ratably over four years. The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. As of September 30, 2023, unrecognized compensation cost of $20,070 is expected to be expensed over a weighted average period of 3.8 years. The total grant date fair value of stock options exercised during the nine months ended September 30, 2023 and 2022, was $30 and $nil, respectively. Share Matching Program Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock. Restricted stock unit activity under the SMP is shown below:
As of September 30, 2023, unrecognized compensation cost of $2,710 is expected to be expensed over a weighted average period of 1.5 years. Restricted Stock Units Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:
* As of September 30, 2023 and December 31, 2022 restricted stock units vested for which the underlying common stock is yet to be issued are 652,640 and 872,450 respectively. As of September 30, 2023, unrecognized compensation cost of $66,970 is expected to be expensed over a weighted average period of 2.5 years. Performance Based Stock Awards Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the nine months ended September 30, 2023, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three-year period (“PU”). The remaining 60% of each award recipient’s equity grants are PRSUs that are based on market conditions, contingent on the Company’s meeting a total shareholder return relative to a group of peer companies specified under the 2018 Plan, and are measured over a three-year performance period (“MU”). PRSU activity under the Company’s stock plans is shown below:
As of September 30, 2023, unrecognized compensation cost of $29,509 is expected to be expensed over a weighted average period of 1.9 years. Employee Stock Purchase Plan On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The Company has reserved 4,000,000 shares of common stock for issuance under the 2022 ESPP. The third offering period under the 2022 ESPP commenced on July 1, 2023 with a term of six months. Activity under the Company’s 2022 ESPP is shown below:
The ESPP is compensatory and results in compensation expense. The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions:
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Related Party Disclosures |
9 Months Ended |
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Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | Related Party DisclosuresIn April 2022, the Company entered into a service contract for providing analytics services to The Vanguard Group Inc. which beneficially owns more than 10% of the Company’s common stock as of September 30, 2023. During the three months ended September 30, 2023 and 2022, the Company recognized revenues, net of $354 and $814, respectively, related to this service contract. During the nine months ended September 30, 2023 and 2022, the Company recognized revenues, net of $1,684 and $1,388, respectively, related to this service contract. The Company had outstanding accounts receivable, net of $240 and $856, related to this service contract as of September 30, 2023 and December 31, 2022, respectively. |
Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments As of September 30, 2023, the Company had committed to spend approximately $9,400 under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in unaudited consolidated balance sheets as “Capital work in progress” under “Property and equipment, net.” On June 15, 2023, the Company, along with other limited partners, entered into a limited partnership agreement with the general partner, PNP Financial Services Fund GP I, LLC and initial limited partner and outgoing partner, to form a partnership with the name Plug and Play Financial Services Fund I, L.P. (the “Partnership”) for the primary purpose of making investments in growth-stage technology companies. During the three months ended September 30, 2023, the Company invested $600 in the Partnership and is committed under the Partnership to make further investments up to an amount of $3,400. Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India or Special Economic Zone scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company believes, however, that these units have in the past satisfied, and will continue to satisfy, the required conditions. The Company’s operations centers in the Philippines are registered as qualified Philippines Economic Zone Authority units, which provides the Company fiscal incentives on the import of capital goods and local purchase of services and materials. The Company is required to meet certain requirements to retain the incentives. The Company has complied, and intends to continue compliance, with the requirements to avail itself of the incentives. Contingencies The transfer pricing regulations in the countries in which the Company operates require that controlled intercompany transactions be at arm’s-length. Accordingly, the Company determines and documents pricing for controlled intercompany transactions based on an economic analysis as prescribed in the respective regulations. The tax authorities have jurisdiction to review the Company’s transfer pricing. If the Company’s transfer pricing is challenged by the authorities, they could assess additional tax, interest and penalties, thereby impacting the Company’s profitability and cash flows. The Company is currently involved in transfer pricing and related income tax disputes with Indian tax authorities. The aggregate amount demanded by Indian tax authorities (net of advance payments) as of September 30, 2023 and December 31, 2022 is $36,682 and $37,088, respectively. The Company has made payments and/or provided bank guarantees against these demands in the amounts of $7,242 and $7,532, as of September 30, 2023 and December 31, 2022, respectively. The Company believes that its positions will more likely than not be sustained upon final examination by the tax authorities, and accordingly has not accrued any liabilities with respect to these matters in its consolidated financial statements. India’s Value Added Tax (“VAT”) regime ended in June 2017 and was replaced by the current Goods and Service Tax (“GST”) regime. Pursuant to reviewing the Company’s annual VAT filings, the Indian tax authorities raised aggregate VAT demands for tax years 2015 and 2017, in the amounts of $5,504 and $5,526, as of September 30, 2023 and December 31, 2022, respectively. The GST authorities rejected the Company’s refunds claims in the amounts of $4,203 and $3,866 as of September 30, 2023 and December 31, 2022, respectively. The Company has filed appeals against these matters and believes that it is more likely than not that upon final examination its position will be sustained based on its technical merits. Accordingly, no provision was recognized as of September 30, 2023 and December 31, 2022, respectively. One of the Company’s subsidiaries in India has undergone an assessment with the statutory authority with respect to defined social security contribution plan. Except for some components of the assessment for which the Company has recognized a provision in the financial statements, the Company believes that the amount demanded by such authority is not a meaningful indicator of the potential liabilities of the Company, and that the matter is without merit. The Company is defending against the assessment order and has accordingly instituted an appeal against the order before the relevant tribunal while also making a payment under protest of the amount demanded. As of the reporting date, the Company’s management does not believe that the ultimate assessment will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company will continue to monitor and evaluate its position based on future events and developments in this matter. In August 2019 and September 2020, the Indian Parliament passed various consolidating labor codes, including the Code on Social Security, 2020 (the “Indian Social Security Code”) which aims to rationalize labor laws relating to employee benefits during employment and post-employment benefits. However, the rules for the Indian Social Security Code are yet to be published and the effective date from which these changes are applicable is yet to be notified. The Company will complete its evaluation once the subject rules are notified and will give appropriate impact in the financial statements in the period in which, the Indian Social Security Code becomes effective and the related rules to determine the financial impact are published. From time to time, the Company, its subsidiaries, and/or their present officers or directors, may be or have been, named as a defendant in litigation matters, including employment-related claims. The plaintiffs in those cases seek damages, including, where applicable, compensatory damages, punitive damages and attorney’s fees. With respect to pending litigation matters as of the reporting date, the Company believes that the damages claimed are without merit, and the Company intends to vigorously defend them. The Company will continuously monitor developments on these matters to assess potential impacts to the financial statements. The outcomes of legal actions are unpredictable and subject to significant uncertainties, and thus it is inherently difficult to determine the likelihood of the Company incurring a material loss or quantification of any such loss. With respect to pending litigation matters as of the reporting date, based on information currently available, including the Company’s assessment of the facts underlying each matter and advice of counsel, the amount or range of reasonably possible losses, if any, cannot be reasonably estimated. Based on the Company’s assessment, including the availability of insurance recoveries, the Company’s management does not believe that currently pending litigation, individually or in aggregate, will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company will continuously monitor these matters to assess potential impacts to the financial statements.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 43,876 | $ 39,095 | $ 144,275 | $ 111,119 |
Insider Trading Arrangements |
3 Months Ended |
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Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation and Principles of ConsolidationThe unaudited consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information, the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements and therefore should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. |
Principles of Consolidation | The unaudited consolidated financial statements reflect all adjustments (of a normal and recurring nature) that management considers necessary for a fair presentation of such statements for the interim periods presented. The unaudited consolidated statements of income for the interim periods presented are not necessarily indicative of the results for the full year or for any subsequent period. The accompanying unaudited consolidated financial statements include the financial statements of ExlService Holdings and all of its subsidiaries. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the unaudited consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP.
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Stock Split | Stock SplitThe Company recognizes the effects of a forward stock split in the financial statements if there are changes in the total par value of the increased shares upon such forward stock split. The Company reclassifies an amount equal to the par value of the increased shares resulting from the forward stock split from “Additional paid-in capital” to “Common stock.” The Company presents the effects of a forward stock split on earnings per share in the financial statements retroactively for all the periods presented. The Company has an option to present other effects of the forward stock split, including changes in the total par value of the increased shares and count of shares of common stock, in the consolidated financial statements either retroactively for all the periods presented or only for the period in which the forward stock split of the common stock becomes effective. The Company has elected to present the effects of the forward stock split retroactively for all the periods presented. |
Use of Estimates | Use of EstimatesThe preparation of the unaudited consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements and the unaudited consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the unaudited consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, and stock-based awards, useful life of long-lived assets and other intangible assets, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, methods to calculate depreciation and amortization for long-lived assets and other intangible assets, and recoverability of long-lived assets, goodwill and other intangible assets. |
Recent Accounting Pronouncements and Recently adopted Accounting Pronouncements | Recent Accounting Pronouncements In March 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2023-01, Leases (“Accounting Standards Codification (“ASC”) Topic 842”): Common Control Arrangements. This ASU provides guidance in ASC Topic 842 that leasehold improvements associated with common control leases should be (i) amortized by the lessee over the useful life of the leasehold improvements to the common control group, regardless of the lease term, as long as the lessee controls the use of the underlying asset through a lease, and (ii) accounted for as a transfer between entities under common control through an adjustment to equity if and when the lessee no longer controls the use of the underlying asset. The ASU is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted for both interim and annual financial statements that have not yet been issued. When adopted in an interim period, it must be adopted from the beginning of the year that includes that interim period. The Company is currently evaluating the impact of this ASU on its consolidated financial statements. (e)Recently adopted Accounting Pronouncements In October 2021, FASB issued ASU No. 2021-08, Business Combinations (“ASC Topic 805”): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU provides guidance in ASC Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, Revenue from Contract with Customers, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The adoption of this ASU is applicable for future business combinations. In July 2023, the FASB issued ASU No. 2023-03, Presentation of Financial Statements (“ASC Topic 205”), Income Statement-Reporting Comprehensive Income (“ASC Topic 220”), Distinguishing Liabilities from Equity (“ASC Topic 480”), Equity (“ASC Topic 505”), and Compensation-Stock Compensation (“ASC Topic 718”) pursuant to SEC Staff Accounting Bulletin No. 120 and amends various SEC paragraphs in the ASC. The ASU is effective immediately upon issuance and did not have a material impact on the Company’s unaudited consolidated financial statements.
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Segment and Geographical Information (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for the three months ended September 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows:
(1) Exclusive of depreciation and amortization expense.
(1) Exclusive of depreciation and amortization expense. Revenues and cost of revenues for the nine months ended September 30, 2023 and 2022, respectively, for each of the reportable segments, are as follows:
(1) Exclusive of depreciation and amortization expense.
(1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows:
(1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above.
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Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon the location of its customers.
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Long-lived Assets Based on Geographical Information | Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows:
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Revenues, net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracts with Customer, Receivables, Liabilities and Revenue Recognized | The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:
Revenue recognized during the three and nine months ended September 30, 2023 and 2022, which was included in the contract liabilities balance at the beginning of the respective periods:
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Contract Acquisition and Fulfillment Costs | The following table provides details of the Company’s contract acquisition and fulfillment costs:
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Movement in Allowance for Expected Credit Loss |
The movement in “Allowance for expected credit losses” on customer balances was as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share:
(1) Prior period information has been adjusted to reflect the 5-for-1 forward stock split of the Company’s common stock effected in August 2023. Refer to Note 19 – Capital Structure to the unaudited consolidated financial statements for further details.
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Other Income, net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Income/(Loss), net | Other income, net consists of the following:
* Refer to Note 16 - Fair Value Measurements to the unaudited consolidated financial statements for further details.
|
Cash, Cash Equivalents and Restricted Cash (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash and Cash Equivalents | For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following:
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Restrictions on Cash and Cash Equivalents | For the purposes of unaudited statements of cash flows, cash, cash equivalents and restricted cash consist of the following:
|
Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment | Investments consist of the following:
|
Property and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment, net consists of the following:
The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the unaudited consolidated statements of income was as follows:
The effect of foreign exchange loss upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows:
Internally developed software costs, included under Software, was as follows:
The amortization expense on internally developed software recognized in the unaudited consolidated statements of income was as follows:
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Goodwill and Other Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table sets forth details of changes in goodwill by reportable segment of the Company:
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Schedule of Indefinite Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below:
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Schedule of Amortization of Intangible Assets | The amortization expense recognized in the unaudited consolidated statements of income was as follows:
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Schedule of Estimated Future Amortization of Intangible Assets |
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Other Current Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Current Assets | Other current assets consist of the following:
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Other Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Assets | Other assets consist of the following:
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Accrued Expenses and Other Current Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following:
|
Other Non-Current Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities, Noncurrent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Non-Current Liabilities | Other non-current liabilities consist of the following:
|
Accumulated Other Comprehensive Income/(Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table sets forth the changes in AOCI during the nine months ended September 30, 2023 and 2022:
(1) Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the unaudited consolidated financial statements for reclassification to net income. (2) These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation gain/(loss). Refer to Note 22 - Income Taxes to the unaudited consolidated financial statements.
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were recognized at fair value:
(1) Represents money market funds which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. (2) Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “Financial Instruments”. (3) Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets.
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Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in the fair value of contingent consideration:
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Derivatives and Hedge Accounting (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Value of Foreign Currency Exchange Contracts | The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments:
The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets:
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Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income | The following table sets forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the unaudited consolidated statements of income:
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:
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Borrowings (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Company's Debt Position | The following table summarizes the Company’s debt position:
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Schedule of Credit Facilities Carried an Effective Interest Rate | The revolving credit facility carried an effective interest rate as shown below:
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Schedule of Maturities of Long-term Debt | Expected payments for all of the Company’s borrowings as of September 30, 2023 were as follows:
* Interest payments are based on interest rate prevailing as of September 30, 2023.
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Capital Structure (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock | The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below:
(1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock.
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Summary of Company's Purchased Shares of its Common Stock, Including Commissions | The Company purchased shares of its common stock, for a total consideration including commissions, under the 2022 Repurchase Program, as below:
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Employee Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Projected Benefit Obligations |
* Benefits payments were substantially made through the plan assets during the nine months ended September 30, 2023.
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Components of Net Periodic Benefit Cost | Components of net periodic benefit costs recognized in unaudited consolidated statements of income and actuarial (gain)/loss reclassified from AOCI, were as follows:
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Schedule of Company's Contribution Plan | The Company’s accrual for contribution to the 401(k) Plans was as follows:
The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company was as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information
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Schedule of Components of Lease Cost | The components of lease cost, which are included in the Company’s unaudited consolidated statements of income, are as follows:
(a) Includes short-term leases, which are immaterial.
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Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and other information related to leases are as follows:
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Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of September 30, 2023 were as follows:
Maturities of lease liabilities as of December 31, 2022 were as follows:
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Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities as of September 30, 2023 were as follows:
Maturities of lease liabilities as of December 31, 2022 were as follows:
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax (Deferred) Recognized in Other Comprehensive Income | Deferred income taxes recognized in AOCI were as follows:
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs Related to Company's Stock-based Compensation Plan | Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income:
(1) Includes $462 and ($92) during the three months ended September 30, 2023 and 2022, respectively, and $13,172 and $3,532 during the nine months ended September 30, 2023 and 2022, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.
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Schedule of Stock Options Activity | Stock options activity under the Company’s stock-based compensation plans is shown below:
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Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions:
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Restricted Stock Activity Under Company's Stock Plans | Restricted stock unit activity under the SMP is shown below:
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Schedule of Restricted Stock Unit Activity | Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:
* As of September 30, 2023 and December 31, 2022 restricted stock units vested for which the underlying common stock is yet to be issued are 652,640 and 872,450 respectively.
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Schedule of Performance Based Stock Awards Activity | PRSU activity under the Company’s stock plans is shown below:
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Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity | Activity under the Company’s 2022 ESPP is shown below:
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Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions:
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Segment and Geographical Information - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
operating_segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | $ 410,971 | $ 361,351 | $ 1,216,610 | $ 1,037,341 | ||
Cost of revenues | [1] | 256,002 | 230,462 | 760,691 | 659,185 | |
Gross profit | 154,969 | 130,889 | 455,919 | 378,156 | ||
Operating expenses | 94,739 | 80,778 | 271,430 | 236,989 | ||
Foreign exchange gain, net, interest expense and other income, net | (2,218) | 1,323 | (2,598) | 4,361 | ||
Income tax expense | 14,161 | 12,447 | 37,773 | 34,774 | ||
Gain from equity-method investment | 25 | 108 | 157 | 365 | ||
Net income attributable to ExlService Holdings, Inc. stockholders | 43,876 | 39,095 | 144,275 | 111,119 | ||
Digital operations and solutions | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 227,862 | 195,053 | 669,475 | 560,703 | ||
Analytics services | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 183,109 | 166,298 | 547,135 | 476,638 | ||
Insurance | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 136,369 | 116,198 | 390,762 | 328,021 | ||
Cost of revenues | 86,435 | 75,041 | 253,081 | 210,768 | ||
Gross profit | 49,934 | 41,157 | 137,681 | 117,253 | ||
Healthcare | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 26,177 | 22,820 | 80,036 | 72,027 | ||
Cost of revenues | 16,533 | 17,119 | 52,882 | 52,464 | ||
Gross profit | 9,644 | 5,701 | 27,154 | 19,563 | ||
Emerging Business | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 65,316 | 56,035 | 198,677 | 160,655 | ||
Cost of revenues | 37,599 | 32,363 | 111,414 | 92,790 | ||
Gross profit | 27,717 | 23,672 | 87,263 | 67,865 | ||
Analytics | ||||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||||
Revenues, net | 183,109 | 166,298 | 547,135 | 476,638 | ||
Cost of revenues | 115,435 | 105,939 | 343,314 | 303,163 | ||
Gross profit | $ 67,674 | $ 60,359 | $ 203,821 | $ 173,475 | ||
|
Segment and Geographical Information - Revenues based on Geographical Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | $ 410,971 | $ 361,351 | $ 1,216,610 | $ 1,037,341 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 343,135 | 310,652 | 1,022,883 | 891,551 |
Total Non-United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 67,836 | 50,699 | 193,727 | 145,790 |
United Kingdom | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | 46,327 | 34,131 | 131,549 | 98,994 |
Rest of World | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues, net | $ 21,509 | $ 16,568 | $ 62,178 | $ 46,796 |
Segment and Geographical Information - Property, Plant and Equipment, Net Based On Geographical Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 153,546 | $ 138,175 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 62,642 | 60,709 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 44,811 | 50,118 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 21,895 | 18,406 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 24,198 | $ 8,942 |
Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 303,378 | $ 259,222 |
Contract assets | 11,086 | 2,768 |
Contract liabilities: | ||
Deferred revenue (consideration received in advance) | 11,285 | 17,079 |
Consideration received for process transition activities | $ 13,893 | $ 5,423 |
Revenues, net - Additional Information (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Accounts receivable not billed | $ 152,425,000 | $ 126,027,000 |
Contract Acquisition Costs | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impairment loss in relation to costs capitalized | 0 | 0 |
Contract Fulfillment Costs | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Revenues, net - Contract with Customer Revenue Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue (consideration received in advance) | $ 690 | $ 2,456 | $ 16,682 | $ 16,326 |
Consideration received for process transition activities | $ 373 | $ 706 | $ 1,381 | $ 1,370 |
Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Contract Acquisition Costs | |||||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||||
Opening Balance | $ 2,183 | $ 983 | $ 1,095 | $ 511 | $ 511 |
Additions | 115 | 78 | 1,591 | 805 | 1,014 |
Amortization | (233) | (73) | (621) | (328) | (430) |
Closing Balance | 2,065 | 988 | 2,065 | 988 | 1,095 |
Contract Fulfillment Costs | |||||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | |||||
Opening Balance | 21,445 | 10,167 | 13,871 | 5,795 | 5,795 |
Additions | 3,790 | 2,964 | 12,633 | 8,449 | 15,509 |
Amortization | (878) | (1,170) | (2,147) | (2,283) | (7,433) |
Closing Balance | $ 24,357 | $ 11,961 | $ 24,357 | $ 11,961 | $ 13,871 |
Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|---|---|
Revenue from Contract with Customer [Abstract] | ||||||
Accounts receivable, including unbilled receivables | $ 307,074 | $ 260,554 | ||||
Less: Allowance for expected credit losses | (3,696) | $ (1,800) | (1,332) | $ (855) | $ (844) | $ (573) |
Accounts receivable, net | $ 303,378 | $ 259,222 |
Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||||
Opening Balance | $ 1,800 | $ 844 | $ 1,332 | $ 573 | $ 573 |
Additions | 1,964 | 9 | 2,441 | 752 | 815 |
Reductions due to write-off of accounts receivables | (70) | 0 | (78) | (472) | (60) |
Currency translation adjustments | 2 | 2 | 1 | 2 | 4 |
Closing Balance | $ 3,696 | $ 855 | $ 3,696 | $ 855 | $ 1,332 |
Earnings Per Share - Computation of Basic and Diluted Earnings per Share (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|
Jun. 20, 2023 |
Aug. 31, 2023 |
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Sep. 30, 2022
USD ($)
$ / shares
shares
|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Sep. 30, 2022
USD ($)
$ / shares
shares
|
|||
Numerators: | ||||||||
Net income | $ | $ 43,876 | $ 39,095 | $ 144,275 | $ 111,119 | ||||
Denominators: | ||||||||
Basic weighted average common shares outstanding (in shares) | [1] | 166,159,619 | 166,189,165 | 166,707,599 | 166,801,730 | |||
Dilutive effect of share-based awards (in shares) | 1,528,755 | 2,699,580 | 1,884,013 | 2,366,455 | ||||
Diluted weighted average common shares outstanding (in shares) | [1] | 167,688,374 | 168,888,745 | 168,591,612 | 169,168,185 | |||
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||||||
Basic (in dollars per share) | $ / shares | [1] | $ 0.26 | $ 0.24 | $ 0.87 | $ 0.67 | |||
Diluted (in dollars per share) | $ / shares | [1] | $ 0.26 | $ 0.23 | $ 0.86 | $ 0.66 | |||
Weighted average potentially dilutive considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 2,899,035 | 4,680 | 1,564,844 | 3,365 | ||||
Stock split conversion ratio | 5 | 5 | ||||||
|
Other Income, net - Summary of Other Income, net (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Other Income and Expenses [Abstract] | ||||
Gain on sale and mark-to-market on investments | $ 1,337 | $ 1,471 | $ 4,076 | $ 3,341 |
Interest and dividend income | 2,106 | 1,457 | 5,480 | 3,674 |
Fair value changes in contingent consideration | (2,500) | 0 | (2,500) | (1,000) |
Others, net | (165) | (667) | (462) | (1,517) |
Other income, net | $ 778 | $ 2,261 | $ 6,594 | $ 4,498 |
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|---|---|
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 122,655 | $ 118,669 | $ 89,262 | |
Restricted cash (current) | 3,257 | 4,897 | 7,013 | |
Restricted cash (non-current) | 2,047 | 2,055 | 1,996 | |
Cash, cash equivalents and restricted cash | $ 127,959 | $ 125,621 | $ 98,271 | $ 143,810 |
Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Investments, All Other Investments [Abstract] | ||
Mutual funds | $ 76,476 | $ 110,964 |
Term deposits | 75,105 | 68,063 |
Short-term investments | 151,581 | 179,027 |
Term deposits | 1,078 | 31,341 |
Investment in equity affiliate | 4,195 | 3,438 |
Long-term investments | $ 5,273 | $ 34,779 |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Owned Assets: | ||
Owned assets, gross | $ 319,834 | $ 298,460 |
Less: Accumulated depreciation and amortization | (223,760) | (216,132) |
Owned assets, net | 96,074 | 82,328 |
Right-of-use assets under finance leases: | ||
Finance lease, right of use asset, gross | 1,985 | 2,499 |
Less: Accumulated depreciation and amortization | (1,330) | (1,999) |
Property and equipment, net | 655 | 500 |
Property and equipment, net | 96,729 | 82,828 |
Network equipment and computers | ||
Owned Assets: | ||
Owned assets, gross | 143,357 | 130,218 |
Right-of-use assets under finance leases: | ||
Finance lease, right of use asset, gross | 58 | 82 |
Software | ||
Owned Assets: | ||
Owned assets, gross | 99,614 | 88,487 |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | 39,470 | 42,890 |
Right-of-use assets under finance leases: | ||
Finance lease, right of use asset, gross | 605 | 1,013 |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | 19,407 | 20,211 |
Right-of-use assets under finance leases: | ||
Finance lease, right of use asset, gross | 431 | 662 |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | 727 | 605 |
Right-of-use assets under finance leases: | ||
Finance lease, right of use asset, gross | $ 891 | 742 |
Buildings | ||
Owned Assets: | ||
Estimated useful lives (Years) | 30 years | |
Owned assets, gross | $ 958 | 961 |
Land | ||
Owned Assets: | ||
Owned assets, gross | 627 | 629 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 15,674 | $ 14,459 |
Minimum | Network equipment and computers | ||
Owned Assets: | ||
Estimated useful lives (Years) | 3 years | |
Minimum | Software | ||
Owned Assets: | ||
Estimated useful lives (Years) | 2 years | |
Minimum | Leasehold improvements | ||
Owned Assets: | ||
Estimated useful lives (Years) | 3 years | |
Minimum | Office furniture and equipment | ||
Owned Assets: | ||
Estimated useful lives (Years) | 3 years | |
Minimum | Motor vehicles | ||
Owned Assets: | ||
Estimated useful lives (Years) | 2 years | |
Maximum | Network equipment and computers | ||
Owned Assets: | ||
Estimated useful lives (Years) | 5 years | |
Maximum | Software | ||
Owned Assets: | ||
Estimated useful lives (Years) | 5 years | |
Maximum | Leasehold improvements | ||
Owned Assets: | ||
Estimated useful lives (Years) | 8 years | |
Maximum | Office furniture and equipment | ||
Owned Assets: | ||
Estimated useful lives (Years) | 8 years | |
Maximum | Motor vehicles | ||
Owned Assets: | ||
Estimated useful lives (Years) | 5 years |
Property and Equipment - Depreciation and Amortization Expense and Effect of Foreign Exchange Gain/Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Property, Plant and Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 8,426 | $ 10,137 | $ 26,682 | $ 29,182 |
Depreciation and Amortization | ||||
Property, Plant and Equipment [Line Items] | ||||
Effect of foreign exchange loss | $ (37) | $ (126) | $ (182) | $ (64) |
Property and Equipment - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | |||||
Cost | $ 42,585 | $ 42,585 | $ 31,544 | ||
Less : Accumulated amortization | (22,843) | (22,843) | (16,134) | ||
Internally developed software, net | 19,742 | 19,742 | $ 15,410 | ||
Amortization expense | $ 2,311 | $ 1,832 | $ 6,711 | $ 4,414 |
Property and Equipment - Additional Information (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Abstract] | ||
Long-lived assets impairment charges | $ 0 | $ 0 |
Goodwill and Other Intangible Assets - Summary of Company's Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning Balance | $ 405,637 |
Currency translation adjustments | (58) |
Ending Balance | 405,579 |
Insurance | |
Goodwill [Roll Forward] | |
Beginning Balance | 49,929 |
Currency translation adjustments | 11 |
Ending Balance | 49,940 |
Healthcare | |
Goodwill [Roll Forward] | |
Beginning Balance | 21,875 |
Currency translation adjustments | (2) |
Ending Balance | 21,873 |
Emerging Business | |
Goodwill [Roll Forward] | |
Beginning Balance | 47,101 |
Currency translation adjustments | (66) |
Ending Balance | 47,035 |
Analytics | |
Goodwill [Roll Forward] | |
Beginning Balance | 286,732 |
Currency translation adjustments | (1) |
Ending Balance | $ 286,731 |
Goodwill and Other Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Finite-lived intangible assets: | ||
Gross Carrying Amount | $ 104,672 | $ 126,060 |
Accumulated Amortization | (52,257) | (62,141) |
Total | 52,415 | 63,919 |
Indefinite-lived intangible assets: | ||
Total intangible assets, gross carrying amount | 105,572 | 126,960 |
Total intangible assets, net carrying amount | 53,315 | 64,819 |
Trade names and trademarks | ||
Indefinite-lived intangible assets: | ||
Trade names and trademarks | 900 | 900 |
Customer relationships | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 99,146 | 99,146 |
Accumulated Amortization | (48,313) | (39,848) |
Total | 50,833 | 59,298 |
Developed technology | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 3,490 | 24,878 |
Accumulated Amortization | (2,266) | (20,902) |
Total | 1,224 | 3,976 |
Trade names and trademarks | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 1,700 | 1,700 |
Accumulated Amortization | (1,520) | (1,303) |
Total | 180 | 397 |
Non-compete agreements | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 336 | 336 |
Accumulated Amortization | (158) | (88) |
Total | $ 178 | $ 248 |
Goodwill and Other Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 3,157 | $ 4,243 | $ 11,510 | $ 12,875 |
Goodwill and Other Intangible Assets - Estimated Future Amortization of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 (October 1 - December 31) | $ 3,147 | |
2024 | 12,135 | |
2025 | 10,699 | |
2026 | 10,363 | |
2027 | 9,364 | |
2028 and thereafter | 6,707 | |
Total | $ 52,415 | $ 63,919 |
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 15,066 | $ 18,132 |
Receivables from statutory authorities | 15,996 | 15,724 |
Advance income tax, net | 26,630 | 5,716 |
Derivative instruments | 2,757 | 1,526 |
Advances to suppliers | 1,299 | 1,944 |
Deferred contract fulfillment costs | 3,091 | 1,178 |
Contract assets | 2,286 | 904 |
Others | 3,572 | 5,855 |
Other current assets | $ 70,697 | $ 50,979 |
Other Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred contract fulfillment costs | $ 21,266 | $ 12,693 |
Lease deposits | 5,828 | 6,621 |
Deposits with statutory authorities | 7,272 | 6,276 |
Contract assets | 8,800 | 1,864 |
Derivative instruments | 2,265 | 820 |
Others | 5,967 | 3,795 |
Other assets | $ 51,398 | $ 32,069 |
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 55,071 | $ 47,854 |
Payable to statutory authorities | 19,067 | 20,430 |
Contingent consideration | 15,600 | 5,000 |
Client liabilities | 5,251 | 5,110 |
Derivative instruments | 5,089 | 10,059 |
Accrued capital expenditures | 3,978 | 4,032 |
Others | 3,674 | 2,867 |
Accrued expenses and other current liabilities | $ 107,730 | $ 95,352 |
Other Non-Current Liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Liabilities, Noncurrent [Abstract] | ||
Retirement benefits | $ 13,210 | $ 12,982 |
Deferred transition revenue | 11,807 | 4,408 |
Derivative instruments | 1,534 | 6,218 |
Unrecognized tax benefits | 2,329 | 2,329 |
Contingent consideration | 589 | 13,689 |
Others | 1,885 | 1,666 |
Other non-current liabilities | $ 31,354 | $ 41,292 |
Accumulated Other Comprehensive Income/(Loss) - Summary of Accumulated Other Comprehensive Income/(Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | $ 834,214 | $ 685,653 | $ 758,179 | $ 693,156 | ||
Gain (losses) recognized during the period | 5,637 | (78,009) | ||||
Reclassification to net income | 4,191 | (1,430) | ||||
Income tax effects | [1] | 3,017 | 10,090 | (2,490) | 14,710 | |
Ending balance | 856,087 | 704,584 | 856,087 | 704,584 | ||
Foreign currency translation gain/(loss) | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (133,139) | (95,437) | ||||
Gain (losses) recognized during the period | (2,605) | (49,371) | ||||
Reclassification to net income | 0 | 0 | ||||
Income tax effects | 466 | 8,898 | ||||
Ending balance | (135,278) | (135,910) | (135,278) | (135,910) | ||
Unrealized gain/(loss) on cash flow hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (11,303) | 8,420 | ||||
Gain (losses) recognized during the period | 8,242 | (28,638) | ||||
Reclassification to net income | 4,261 | (1,881) | ||||
Income tax effects | (2,900) | 5,948 | ||||
Ending balance | (1,700) | (16,151) | (1,700) | (16,151) | ||
Retirement benefits | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | 299 | (2,457) | ||||
Gain (losses) recognized during the period | 0 | 0 | ||||
Reclassification to net income | (70) | 451 | ||||
Income tax effects | (56) | (136) | ||||
Ending balance | 173 | (2,142) | 173 | (2,142) | ||
Total | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Beginning balance | (124,147) | (133,374) | (144,143) | (89,474) | ||
Ending balance | $ (136,805) | $ (154,203) | $ (136,805) | $ (154,203) | ||
|
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets | ||
Mutual funds | $ 76,476 | $ 110,964 |
Recurring | ||
Assets | ||
Cash equivalents - Money market funds | 17,718 | 1,137 |
Mutual funds | 76,476 | 110,964 |
Derivative financial instruments | 5,022 | 2,346 |
Total | 99,216 | 114,447 |
Liabilities | ||
Derivative financial instruments | 6,623 | 16,277 |
Contingent consideration | 16,189 | 18,689 |
Total | 22,812 | 34,966 |
Recurring | (Level 1) | ||
Assets | ||
Cash equivalents - Money market funds | 17,718 | 1,137 |
Mutual funds | 76,476 | 110,964 |
Derivative financial instruments | 0 | 0 |
Total | 94,194 | 112,101 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Recurring | (Level 2) | ||
Assets | ||
Cash equivalents - Money market funds | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 5,022 | 2,346 |
Total | 5,022 | 2,346 |
Liabilities | ||
Derivative financial instruments | 6,623 | 16,277 |
Contingent consideration | 0 | 0 |
Total | 6,623 | 16,277 |
Recurring | (Level 3) | ||
Assets | ||
Cash equivalents - Money market funds | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 16,189 | 18,689 |
Total | $ 16,189 | $ 18,689 |
Fair Value Measurements - Changes in the fair value of contingent consideration (Details) - Contingent Consideration - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Beginning balance, contingent consideration | $ 13,689 | $ 11,439 | $ 18,689 | $ 9,000 |
Acquisitions | 0 | 0 | 0 | 1,439 |
Fair value changes | 2,500 | 0 | 2,500 | 1,000 |
Payments | 0 | 0 | (5,000) | 0 |
Ending balance, contingent consideration | $ 16,189 | $ 11,439 | $ 16,189 | $ 11,439 |
Derivatives and Hedge Accounting - Additional Information (Details) € in Thousands, £ in Thousands, R in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
9 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
GBP (£)
|
Sep. 30, 2023
EUR (€)
|
Sep. 30, 2023
AUD ($)
|
Sep. 30, 2023
ZAR (R)
|
Sep. 30, 2023
COP ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
GBP (£)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
AUD ($)
|
Dec. 31, 2022
ZAR (R)
|
Dec. 31, 2022
COP ($)
|
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ (2,399) | |||||||||||
Maximum outstanding term of the cash flow hedges | 36 months | |||||||||||
Foreign Exchange Contract [Member] | Derivatives not designated as hedging instruments | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Foreign exchange contracts outstanding | $ 175,445 | £ 10,435 | € 3,531 | $ 3,991 | R 122,188 | $ 2,286,550 | $ 163,990 | £ 8,351 | € 1,956 | $ 1,951 | R 0 | $ 0 |
Foreign Exchange Contract [Member] | Cash flow hedge | Derivatives Designated as Hedging Instruments | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Foreign exchange contracts outstanding | 797,400 | 841,620 | ||||||||||
Interest Rate Swap | Cash flow hedge | Derivatives Designated as Hedging Instruments | ||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||
Foreign exchange contracts outstanding | $ 75 | $ 75 |
Derivatives and Hedge Accounting - Foreign Currency Forward Contracts (Details) € in Thousands, £ in Thousands, R in Thousands, $ in Thousands, $ in Thousands, $ in Thousands |
Sep. 30, 2023
USD ($)
|
Sep. 30, 2023
GBP (£)
|
Sep. 30, 2023
EUR (€)
|
Sep. 30, 2023
AUD ($)
|
Sep. 30, 2023
ZAR (R)
|
Sep. 30, 2023
COP ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2022
GBP (£)
|
Dec. 31, 2022
EUR (€)
|
Dec. 31, 2022
AUD ($)
|
Dec. 31, 2022
ZAR (R)
|
Dec. 31, 2022
COP ($)
|
---|---|---|---|---|---|---|---|---|---|---|---|---|
Foreign Exchange Contract [Member] | Derivatives not designated as hedging instruments | ||||||||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||||||||
Foreign exchange contracts outstanding | $ 175,445 | £ 10,435 | € 3,531 | $ 3,991 | R 122,188 | $ 2,286,550 | $ 163,990 | £ 8,351 | € 1,956 | $ 1,951 | R 0 | $ 0 |
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivatives Designated as Hedging Instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | $ 2,542 | $ 1,271 |
Derivatives Designated as Hedging Instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 2,265 | 820 |
Derivatives Designated as Hedging Instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 4,941 | 10,044 |
Derivatives Designated as Hedging Instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 1,534 | 6,218 |
Derivatives not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 215 | 255 |
Derivatives not designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, asset | 0 | 0 |
Derivatives not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | 148 | 15 |
Derivatives not designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange contracts, liability | $ 0 | $ 0 |
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain/(loss) recognized in AOCI | $ (7,903) | $ (13,489) | $ 8,242 | $ (28,638) |
Gain/(loss) recognized in unaudited consolidated statements of income | 409 | 1,504 | 838 | 4,683 |
Cash flow hedge | Derivatives in cash flow hedging relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized gain/(loss) recognized in AOCI | (7,903) | (13,489) | 8,242 | (28,638) |
Fair value hedge | Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain/(loss) recognized in unaudited consolidated statements of income | $ (1,584) | $ (4,889) | $ 574 | $ (11,245) |
Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cost of revenues | [1] | $ 256,002 | $ 230,462 | $ 760,691 | $ 659,185 | |
General and administrative expenses | 52,213 | 42,519 | 144,564 | 122,898 | ||
Selling and marketing expenses | 30,943 | 23,879 | 88,674 | 72,034 | ||
Depreciation and amortization expense | 11,583 | 14,380 | 38,192 | 42,057 | ||
Interest expense | 3,405 | 2,442 | 10,030 | 4,820 | ||
Income before income tax expense and earnings from equity affiliates | 58,012 | 51,434 | 181,891 | 145,528 | ||
Income tax effects on above | (14,161) | (12,447) | (37,773) | (34,774) | ||
Net income attributable to ExlService Holdings, Inc. stockholders | 43,876 | 39,095 | 144,275 | 111,119 | ||
Foreign exchange gain/(loss), net | 409 | 1,504 | 838 | 4,683 | ||
Gain/ (loss) on foreign currency exchange contracts | Derivatives in cash flow hedging relationships | Cash flow hedge | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Cost of revenues | (252) | (1,381) | (4,148) | 1,396 | ||
General and administrative expenses | 18 | (109) | (357) | 366 | ||
Selling and marketing expenses | 0 | (6) | (32) | 23 | ||
Depreciation and amortization expense | (19) | (71) | (185) | 96 | ||
Interest expense | 221 | 0 | 461 | 0 | ||
Income before income tax expense and earnings from equity affiliates | (32) | (1,567) | (4,261) | 1,881 | ||
Income tax effects on above | (64) | 133 | 701 | (802) | ||
Net income attributable to ExlService Holdings, Inc. stockholders | (96) | (1,434) | (3,560) | 1,079 | ||
Gain/ (loss) on foreign currency exchange contracts | Derivatives not designated as hedging instruments | Fair value hedge | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign exchange gain/(loss), net | $ (1,584) | $ (4,889) | $ 574 | $ (11,245) | ||
|
Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | $ 50,000 | $ 30,000 |
Long-term borrowings, less current portion | 160,000 | 220,000 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 50,000 | 30,000 |
Long-term borrowings, less current portion | 160,000 | 220,000 |
Total borrowings | $ 210,000 | $ 250,000 |
Borrowings - Additional Information (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
Apr. 18, 2022 |
---|---|---|---|
Credit Facilities [Line Items] | |||
Letters of credit outstanding | $ 461,000 | $ 461,000 | |
Revolving credit facility | |||
Credit Facilities [Line Items] | |||
Unamortized debt issuance costs | 972,000 | $ 1,177,000 | |
Revolving credit facility | New Credit Agreement | |||
Credit Facilities [Line Items] | |||
Maximum borrowing capacity | $ 300,000,000 | ||
Revolving credit facility | Credit Agreement | |||
Credit Facilities [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Line of credit facility option for additional borrowing capacity | $ 200,000,000 |
Borrowings - Credit Facilities Carried an Effective Interest Rate (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Revolving credit facility | New Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Effective Interest Rate | 6.50% | 3.40% | 6.20% | 2.30% |
Borrowings - Principle Maturities of Borrowings and Credit Arrangements (Details) $ in Thousands |
Sep. 30, 2023
USD ($)
|
---|---|
Principal Payments | |
Debt Instrument [Line Items] | |
2023 (October 1 - December 31) | $ 35,000 |
2024 | 15,000 |
2025 | 0 |
2026 | 0 |
2027 | 160,000 |
Total | 210,000 |
Interest Payments | |
Debt Instrument [Line Items] | |
2023 (October 1 - December 31) | 3,029 |
2024 | 10,659 |
2025 | 10,069 |
2026 | 10,069 |
2027 | 3,776 |
Total | $ 37,602 |
Capital Structure - Additional Information (Details) $ / shares in Units, $ in Thousands |
1 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Aug. 01, 2023
$ / shares
shares
|
Jun. 20, 2023 |
Aug. 31, 2023 |
Sep. 30, 2023
class_of_common_stock
$ / shares
shares
|
Jul. 31, 2023
shares
|
Dec. 31, 2022
$ / shares
shares
|
Oct. 05, 2021
USD ($)
|
|
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of classes of common stock outstanding | class_of_common_stock | 1 | ||||||
Stock split conversion ratio | 5 | 5 | |||||
Common stock, authorized (in shares) | 400,000,000 | 400,000,000 | 100,000,000 | 400,000,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Shares received per share, stock splits | 4 | ||||||
2022 Repurchase Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Repurchase of common stock authorized, maximum | $ | $ 300,000 |
Capital Structure - Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity [Abstract] | ||||
Shares repurchased (in shares) | 45,267 | 0 | 237,047 | 136,095 |
Total consideration | $ 1,324 | $ 0 | $ 7,853 | $ 3,191 |
Weighted average purchase price per share (in dollars per share) | $ 29.25 | $ 0 | $ 33.13 | $ 23.45 |
Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Equity [Abstract] | ||||
Shares repurchased (in shares) | 975,774 | 384,045 | 3,001,619 | 2,519,290 |
Total consideration | $ 28,636 | $ 11,521 | $ 93,483 | $ 68,521 |
Weighted average purchase price per share (in dollars per share) | $ 29.35 | $ 30.00 | $ 31.14 | $ 27.20 |
Employee Benefit Plans - Additional Information (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Expected return on plan assets, percentage | 7.20% |
Discretionary contributions towards 401(k) plan, maximum percentage | 3.00% |
Employee Benefit Plans - Change in Plan Assets (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Change in Plan Assets | |
Plan assets as of January 1, 2023 | $ 14,449 |
Actual return | 853 |
Employer contribution | 2,921 |
Benefits paid* | (1,015) |
Effect of exchange rate changes | (78) |
Plan assets as of September 30, 2023 | $ 17,130 |
Employee Benefit Plans - Net Gratuity Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 947 | $ 921 | $ 2,856 | $ 2,869 |
Interest cost | 392 | 302 | 1,180 | 938 |
Expected return on plan assets | (261) | (215) | (788) | (664) |
Amortization of actuarial (gain)/loss, gross of tax | (22) | 147 | (70) | 451 |
Net gratuity cost | 1,056 | 1,155 | 3,178 | 3,594 |
Income tax effects on above | (19) | (44) | (56) | (136) |
Amortization of actuarial (gain)/loss, net of tax | $ (41) | $ 103 | $ (126) | $ 315 |
Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Retirement Benefits [Abstract] | ||||
Contribution to the 401(k) Plans | $ 1,240 | $ 1,097 | $ 4,804 | $ 4,140 |
Contributions to the defined social security contribution plans | $ 5,841 | $ 4,660 | $ 16,837 | $ 13,422 |
Leases - Balance Sheet Information (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Lease | ||
Operating lease right-of-use assets, net | $ 56,817 | $ 55,347 |
Operating lease liabilities - Current | 14,008 | 14,978 |
Operating lease liabilities - Non-current | 48,445 | 48,155 |
Present value of lease liabilities | 62,453 | 63,133 |
Finance Lease | ||
Property and equipment, gross | 1,985 | 2,499 |
Accumulated depreciation | (1,330) | (1,999) |
Property and equipment, net | 655 | 500 |
Finance lease liabilities - Current | 171 | 164 |
Finance lease liabilities - Non-current | 505 | 355 |
Total finance lease liabilities | $ 676 | $ 519 |
Leases - Components of Lease Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Finance lease: | ||||
Amortization of right-of-use assets | $ 50 | $ 28 | $ 127 | $ 116 |
Interest on lease liabilities | 25 | 14 | 63 | 42 |
Total finance lease cost | 75 | 42 | 190 | 158 |
Operating lease | 4,839 | 5,360 | 15,171 | 17,365 |
Variable lease costs | 1,170 | 1,298 | 3,334 | 3,827 |
Total lease cost | $ 6,084 | $ 6,700 | $ 18,695 | $ 21,350 |
Leases - Cash Flow and Other Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Cash payments for amounts included in the measurement of lease liabilities : | ||
Operating cash outflows for operating leases | $ 15,622 | $ 17,831 |
Operating cash outflows for finance leases | 63 | 42 |
Financing cash outflows for finance leases | 120 | 108 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 13,477 | 3,519 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 285 | $ 218 |
Weighted average remaining lease term (in years) | ||
Finance lease | 3 years 1 month 6 days | 2 years 8 months 12 days |
Operating lease | 5 years 7 months 6 days | 5 years 6 months |
Weighted average discount rate | ||
Finance lease | 14.20% | 14.40% |
Operating lease | 7.40% | 7.00% |
Leases - Additional Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Leases [Abstract] | ||
Increase (decrease) in lease liabilities | $ 1,876 | $ (209) |
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
2023 (October 1 - December 31) | $ 4,632 | |
2024 | 17,468 | $ 18,711 |
2025 | 13,220 | 14,846 |
2026 | 12,322 | 10,037 |
2027 | 9,779 | 8,941 |
2028 and thereafter | 20,584 | |
Total lease payments | 78,005 | 78,633 |
Less: Imputed interest | 15,552 | 15,500 |
Present value of lease liabilities | 62,453 | 63,133 |
Finance Leases | ||
2023 (October 1 - December 31) | 72 | |
2024 | 241 | 228 |
2025 | 198 | 162 |
2026 | 167 | 114 |
2027 | 148 | 88 |
2028 and thereafter | 65 | |
Total lease payments | 891 | 671 |
Less: Imputed interest | 215 | 152 |
Present value of lease liabilities | $ 676 | $ 519 |
Leases - Maturities of Lease Liabilities Prior Year (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases | ||
2023 | $ 17,468 | $ 18,711 |
2024 | 13,220 | 14,846 |
2025 | 12,322 | 10,037 |
2026 | 9,779 | 8,941 |
2027 | 6,474 | |
2028 and thereafter | 19,624 | |
Total lease payments | 78,005 | 78,633 |
Less: Imputed interest | 15,552 | 15,500 |
Present value of lease liabilities | 62,453 | 63,133 |
Finance Leases | ||
2023 | 241 | 228 |
2024 | 198 | 162 |
2025 | 167 | 114 |
2026 | 148 | 88 |
2027 | 79 | |
2028 and thereafter | 0 | |
Total lease payments | 891 | 671 |
Less: Imputed interest | 215 | 152 |
Present value of lease liabilities | $ 676 | $ 519 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Taxes [Line Items] | ||||
Effective tax rate, current income tax expense (benefit) (as a percent) | 24.40% | 24.20% | 20.80% | 23.90% |
Income tax expense | $ 14,161 | $ 12,447 | $ 37,773 | $ 34,774 |
INDIA | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 76,000 | |||
Foreign earnings repatriated, withholding taxes | 4,015 | |||
United Kingdom | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | 15,598 | |||
AUSTRALIA | ||||
Income Taxes [Line Items] | ||||
Foreign earnings repatriated | $ 9,081 |
Income Taxes - Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Unrealized gain/(loss) on cash flow hedges | $ 1,370 | $ 2,348 | $ (2,199) | $ 5,146 |
Reclassification adjustment for cash flow hedges | 64 | (133) | (701) | 802 |
Reclassification adjustment for retirement benefits | (19) | (44) | (56) | (136) |
Foreign currency translation adjustments | 1,602 | 7,919 | 466 | 8,898 |
Total | $ 3,017 | $ 10,090 | $ (2,490) | $ 14,710 |
Stock-Based Compensation - Narrative (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023
USD ($)
shares
|
Jul. 01, 2023 |
Jun. 20, 2023 |
Jun. 21, 2022
USD ($)
shares
|
Aug. 31, 2023 |
Sep. 30, 2023
USD ($)
shares
|
Sep. 30, 2023
USD ($)
shares
|
Sep. 30, 2022
shares
|
Dec. 31, 2022
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock split conversion ratio | 5 | 5 | |||||||
Employee Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 20,070,000 | $ 20,070,000 | $ 20,070,000 | ||||||
Cost not yet recognized, period for recognition | 3 years 9 months 18 days | ||||||||
Share-based compensation arrangement by share-based payment award, options, exercised in period, fair value | shares | 30,000 | 0 | |||||||
Share Match Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 2,710,000 | 2,710,000 | $ 2,710,000 | ||||||
Cost not yet recognized, period for recognition | 1 year 6 months | ||||||||
Restricted Stock Units | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cost not yet recognized, period for recognition | 2 years 6 months | ||||||||
Unrecognized compensation cost | 66,970,000 | 66,970,000 | $ 66,970,000 | ||||||
Performance Based Stock Awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Cost not yet recognized, period for recognition | 1 year 10 months 24 days | ||||||||
Unrecognized compensation cost | $ 29,509,000 | $ 29,509,000 | $ 29,509,000 | ||||||
Two Thousand Eighteen Stock Options Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, number of shares available for grant | shares | 3,284,270 | 3,284,270 | 3,284,270 | 6,623,775 | |||||
Share-based compensation arrangement by share-based payment award, expiration period | 10 years | 10 years | |||||||
Award vesting period | 4 years | 4 years | |||||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Performance based percentage | 40.00% | 40.00% | 40.00% | ||||||
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Performance based percentage | 60.00% | 60.00% | 60.00% | ||||||
2022 Employee Stock Purchase Plan | Employee Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Employee stock purchase program, cap per employee | 15.00% | ||||||||
Employee stock purchase program, cap per employee | $ 25,000 | ||||||||
Shares reserved for future issuance (shares) | shares | 3,831,325 | 4,000,000 | 3,831,325 | 3,831,325 | 4,000,000 | ||||
Share-based compensation arrangement by share-based payment award, purchase period | 6 months |
Stock-Based Compensation - Costs Related to Company's Stock-Based Compensation Plan (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 17,067 | $ 12,186 | $ 42,985 | $ 36,750 |
Income tax benefit related to share-based compensation | 4,340 | 2,833 | 16,959 | 8,855 |
Share-based payment arrangement, expense, tax benefit, discrete benefits | 462 | (92) | 13,172 | 3,532 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 4,038 | 2,713 | 10,945 | 8,485 |
General and administrative expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 6,544 | 5,237 | 15,579 | 14,937 |
Selling and marketing expenses | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 6,485 | $ 4,236 | $ 16,461 | $ 13,328 |
Stock-Based Compensation - Stock Based Compensation Stock Option Activity (Details) - Employee Stock Option $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2023
USD ($)
$ / shares
shares
|
Dec. 31, 2022
USD ($)
$ / shares
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of options, outstanding, beginning balance (in shares) | shares | 15,465 | |
Number of options, granted (in shares) | shares | 1,790,695 | |
Number of options, exercised (in shares) | shares | (15,465) | |
Number of options, forfeited (in shares) | shares | 0 | |
Number of options, outstanding, ending Balance (in shares) | shares | 1,790,695 | 15,465 |
Number of options, vested and exercisable at end of period (in shares) | shares | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted-average exercise price, outstanding, beginning balance (in dollars per share) | $ 5.52 | |
Weighted-average exercise price, granted (in dollars per share) | 30.14 | |
Weighted-average exercise price, exercised (in dollars per share) | 5.52 | |
Weighted-average exercise price, forfeited (in dollars per share) | 0 | |
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 30.14 | $ 5.52 |
Weighted-average exercise price, vested and exercisable at end of period (in dollars per share) | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Aggregate intrinsic value, outstanding | $ | $ 439 | |
Aggregate intrinsic value, exercised | $ | $ 384 | |
Aggregate intrinsic value, vested and exercisable at end of period | $ | $ 0 | |
Weighted-average remaining contractual life | 9 years 8 months 12 days | 1 year |
Weighted-average remaining contractual life, granted | 9 years 8 months 12 days | |
Weighted average grant date fair value of per unit of stock option granted during the period (in USD per share) | $ 12.03 |
Stock-Based Compensation - Restricted Stock Units Activity (Details) - $ / shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Share Match Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, at beginning balance (in shares) | 238,115 | |
Number, granted (in shares) | 0 | |
Number, vested (in shares) | 0 | |
Number, forfeited (in shares) | (20,885) | |
Number, outstanding, at ending balance (in shares) | 217,230 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ 24.95 | |
Weighted-average fair value, granted (in dollars per share) | 0 | |
Weighted-average fair value, vested (in dollars per share) | 0 | |
Weighted-average fair value, forfeited (in dollars per share) | 24.95 | |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ 24.95 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||
Number, outstanding, at beginning balance (in shares) | 4,615,630 | |
Number, granted (in shares) | 1,193,615 | |
Number, vested (in shares) | (1,779,745) | |
Number, forfeited (in shares) | (332,035) | |
Number, outstanding, at ending balance (in shares) | 3,697,465 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ 19.74 | |
Weighted-average fair value, granted (in dollars per share) | 34.27 | |
Weighted-average fair value, vested (in dollars per share) | 18.48 | |
Weighted-average fair value, forfeited (in dollars per share) | 21.30 | |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ 24.89 | |
Units vested for which the underlying common stock is yet to be issued (in shares) | 652,640 | 872,450 |
Stock-Based Compensation - Performance Based Stock Awards (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023
$ / shares
shares
| |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, at beginning balance (in shares) | shares | 247,955 |
Number, granted (in shares) | shares | 219,740 |
Number, vested (in shares) | shares | (245) |
Number, forfeited (in shares) | shares | (27,495) |
Number, outstanding, at ending balance (in shares) | shares | 439,955 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ / shares | $ 24.00 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 34.56 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 25.94 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 25.59 |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares | $ 29.17 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, at beginning balance (in shares) | shares | 893,560 |
Number, granted (in shares) | shares | 329,245 |
Number, vested (in shares) | shares | (365) |
Number, forfeited (in shares) | shares | (87,010) |
Number, outstanding, at ending balance (in shares) | shares | 1,135,430 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, at beginning balance (in dollars per share) | $ / shares | $ 26.94 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 44.72 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 33.55 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 28.33 |
Weighted-average fair value, outstanding, at ending balance (in dollars per share) | $ / shares | $ 31.99 |
Stock-Based Compensation - Schedule of Share-Based Compensation, Employee Stock Purchase Activity (Details) - Employee Stock - 2022 Employee Stock Purchase Plan - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Jun. 21, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for future issuance (shares) | 3,831,325 | 3,831,325 | 4,000,000 | 4,000,000 | |
Share-based compensation arrangement by share-based payment award, shares issued in period (in shares) | (130,495) | (38,180) | |||
Share-based compensation arrangement by share-based payment award, shares issued in period, value | $ 1,112 | $ 3,548 | $ 1,013 |
Stock-Based Compensation - Schedule of Share-Based Compensation, Employee Stock Purchase Plan (Details) |
6 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 31, 2023 |
Jun. 30, 2023 |
Sep. 30, 2023 |
|
Employee Stock Option | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Dividend yield | 0.00% | ||
Expected life (years) | 6 years 3 months | ||
Risk free interest rate for expected life | 3.80% | ||
Volatility for expected life | 32.40% | ||
Employee Stock | 2022 Employee Stock Purchase Plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Dividend yield | 0.00% | ||
Expected life (years) | 6 months | ||
Risk free interest rate for expected life | 4.70% | ||
Volatility for expected life | 38.90% | ||
Discount for illiquidity | 10.30% | ||
Employee Stock | 2022 Employee Stock Purchase Plan | Forecast | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Dividend yield | 0.00% | ||
Expected life (years) | 6 months | ||
Risk free interest rate for expected life | 5.40% | ||
Volatility for expected life | 25.50% | ||
Discount for illiquidity | 8.90% |
Related Party Disclosures - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
Related Party Transaction [Line Items] | |||||
Revenues, net | $ 410,971 | $ 361,351 | $ 1,216,610 | $ 1,037,341 | |
Accounts receivable, net | 303,378 | 303,378 | $ 259,222 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenues, net | 354 | $ 814 | 1,684 | $ 1,388 | |
Accounts receivable, net | $ 240 | $ 240 | $ 856 |
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
Jun. 15, 2023 |
|
Other Commitments [Line Items] | |||||
Purchase commitment | $ 9,400 | ||||
Payments to acquire investments | $ 165,021 | $ 164,313 | |||
Other commitment | $ 3,400 | ||||
Export-oriented units established, percentage | 100.00% | ||||
Aggregate amount demanded by income tax authorities related to its transfer pricing issues | $ 36,682 | $ 36,682 | $ 37,088 | ||
Bank guarantees and deposits in respect to contingencies | 7,242 | 7,242 | 7,532 | ||
Value added tax payable | 5,504 | 5,504 | 5,526 | ||
GST refund, amount rejected | $ 4,203 | $ 3,866 | |||
Plug and Play Financial Services Fund I, L.P. | |||||
Other Commitments [Line Items] | |||||
Payments to acquire investments | $ 600 |
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