Revenue from Contracts with Customers

12 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company recognizes revenues for services for which control has transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring the promised services. This process involves identifying the customer contract, determining the performance obligations in the contract, determining the transaction price, allocating the transaction price to the distinct performance obligations in the contract, and recognizing revenue when the performance obligations have been satisfied. A performance obligation is considered distinct from other obligations in a contract when it (a) provides a benefit to the customer either on its own or together with other resources that are readily available to the customer and (b) is separately identified in the contract. The Company considers a performance obligation satisfied as it provides services to a customer, meaning the customer has the ability to direct the use and obtain the benefit of the service.

Revenues from contact center services, which consist of customer service, technical support and other value-added outsourced back-office services, are recognized as the services are performed on the basis of the number of billable minutes or hours, contractual rates, and other contractually agreed metrics, if applicable. Certain of our client contracts include bonus and penalty provisions. Revenues related to training that occurs upon commencement of a new client contract or statement of work are deferred and recognized on a straight-line basis over the estimated life of the client program, as it is not considered to have a standalone value to the customer. The related expenses are expensed as incurred. Revenues are recognized over time as performance obligations are satisfied and in the period in which the Company has a right to invoice, net of discounts, incentives, and/or penalties as per contractual terms. Bonuses and penalties accrue for the current billing period and do not depend on future performance. In some cases, we may estimate these bonuses or penalties using the “most likely amount” method based on actual data and historical experience.

Revenues from digital services are recognized at a point in time upon the successful consumer activation or purchase of clients’ services. We utilize third parties in the satisfaction of this performance obligation; however, because we retain control over these third parties and are solely responsible for the risk and reward associated with this performance obligation, we have determined that we are the principal in these transactions and therefore recognize revenue on a gross basis.

Revenues from CX software-as-a-service products are recognized over time based on the term of the subscription. Set-up fees to customize the customer experience solution for client’s specific needs are deferred and recognized on a straight-line basis over the term of the subscription. Revenues related to additional consulting services are recognized over the period as the related services are performed on a per hour basis.

All of our contracts include the right to invoice for services on a monthly basis. None of our contracts include significant termination penalties, and generally may be terminated for convenience at any time with a short notice period (generally 30 to 120 days).

The Company generally does not incur significant upfront costs to fulfill or obtain a contract that would qualify for capitalization under ASC 606.

Disaggregation of Revenue

The majority of the Company’s revenues are derived from contracts with customers who are located in the United States. However, the Company delivers most of its services from geographies outside of the United

States. Our global delivery model is built on regional customer experience delivery centers and includes a unique ability to support work-at-home capabilities in any region.

The Company generates approximately 97% of its revenue from clients based in the United States of America.

	June 30, 2023		June 30, 2022		June 30, 2021
Revenue
United States	$	509,170	$	476,092	$	428,557
Others	13,948		16,759		14,831
Total	$	523,118	$	492,851	$	443,388

The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided, for the years ended:

	June 30, 2023		June 30, 2022		June 30, 2021
Revenue
Onshore (United States)	$	145,401	$	167,925	$	168,475
Offshore (Philippines, Pakistan)	221,913		186,902		163,865
Nearshore (Jamaica, Nicaragua, Honduras)	155,804		138,024		111,048
Total	$	523,118	$	492,851	$	443,388

The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition for the years ended:

	June 30, 2023		June 30, 2022		June 30, 2021
Pattern of Revenue recognition
Services transferred over time	$	489,942	$	455,206	$	402,613
Services transferred at a point in time	33,176		37,645		40,775
	$	523,118	$	492,851	$	443,388

The movement in the deferred revenue is as follows:

	June 30, 2023		June 30, 2022
Opening balance	$	12,593	$	7,087
Revenue recognized during the year	(11,329)		(5,592)
Revenue deferred during the year	6,532		11,098
Closing balance	$	7,796	$	12,593