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) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer | o | x | ||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||
Emerging growth company |
Page No. | ||||||||
December 31, 2023 | June 30, 2023 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Prepaid expenses | |||||||||||
Due from related parties | |||||||||||
Tax advances and receivables | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Deferred tax asset, net | |||||||||||
Other non-current assets | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | $ | |||||||||
Accrued payroll and employee-related liabilities | |||||||||||
Current deferred revenue | |||||||||||
Current operating lease liabilities | |||||||||||
Current maturities of long-term debt | |||||||||||
Due to related parties | |||||||||||
Income taxes payable | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities | |||||||||||
Non-current deferred revenue | |||||||||||
Non-current operating lease liabilities | |||||||||||
Long-term debt | |||||||||||
Other non-current liabilities | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 7) | |||||||||||
Stockholders' equity | |||||||||||
Common stock: par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock at cost: | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of services (exclusive of depreciation and amortization presented separately below) | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income tax expense | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income / (loss) | |||||||||||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Unrealized gain on cash flow hedging instruments, net of tax | |||||||||||||||||||||||
Total other comprehensive gain / (loss) | ( | ||||||||||||||||||||||
Total comprehensive income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average common shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three months ended December 31, 2022 and 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Common shares | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Provision for common stock warrants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common shares | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ |
Common shares | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | ( | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Provision for common stock warrants | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Issuance of common shares | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ |
Six months ended December 31, 2022 and 2023 | ||||||||||||||||||||||||||||||||||||||||||||
Common shares | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | ( | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Provision for common stock warrants | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | ( | $ | $ | ( | $ | ( | $ |
Common shares | Treasury Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||
Changes in fair value of cash flow hedges | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | ( | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||
Provision for common stock warrants | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Issuance of common shares | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2023 | $ | $ | ( | $ | $ | ( | $ | ( | $ |
Six Months Ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Noncash lease expense | |||||||||||
Warrant contra revenue | |||||||||||
Deferred income tax | |||||||||||
Share-based compensation expense | |||||||||||
Allowance of expected credit losses | |||||||||||
Change in assets and liabilities: | |||||||||||
Increase in accounts receivable | ( | ( | |||||||||
(Increase) / decrease in prepaid expenses and other current assets | ( | ||||||||||
Increase / (decrease) in accounts payable and accrued liabilities | ( | ||||||||||
Increase / (decrease) in deferred revenue | ( | ||||||||||
Decrease in operating lease liabilities | ( | ( | |||||||||
Net cash inflow from operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||
Purchase of property and equipment | ( | ( | |||||||||
Net cash outflow from investing activities | ( | ( | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from line of credit | |||||||||||
Repayments of line of credit | ( | ( | |||||||||
Repayment of debt | ( | ||||||||||
Proceeds from the exercise of options | |||||||||||
Principal payments on finance leases | ( | ( | |||||||||
Purchase of treasury shares | ( | ( | |||||||||
Net cash outflow from financing activities | ( | ( | |||||||||
Effects of exchange rate difference on cash and cash equivalents | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents, beginning | |||||||||||
Cash and cash equivalents, ending | $ | $ | |||||||||
Supplemental cash flow disclosures | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Supplemental non-cash disclosures | |||||||||||
Change in accounts payable related to fixed assets | $ | ( | $ | ( |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Other countries | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | |||||||||||||||||||||||
Onshore (United States) | $ | $ | $ | $ | |||||||||||||||||||
Offshore (Philippines, Pakistan) | |||||||||||||||||||||||
Nearshore (Jamaica, Nicaragua, Honduras) | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Pattern of Revenue recognition | |||||||||||||||||||||||
Services transferred over time | $ | $ | $ | $ | |||||||||||||||||||
Services transferred at a point in time | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Revenue recognized | ( | ( | ( | ( | |||||||||||||||||||
Revenue deferred | |||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
December 31, | June 30, | ||||||||||
($000s) | 2023 | 2023 | |||||||||
Accounts receivable | $ | $ | |||||||||
Less: Allowance for credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Provision for credit losses | |||||||||||||||||||||||
Reversal of provision for credit losses | ( | ( | ( | ( | |||||||||||||||||||
Uncollectible receivables written off | ( | ( | ( | ( | |||||||||||||||||||
Effect of foreign exchange | ( | ||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operating lease cost: | |||||||||||||||||||||||
Operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Variable lease cost | |||||||||||||||||||||||
Total operating lease cost | $ | $ | $ | $ | |||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right of use assets | $ | $ | $ | $ | |||||||||||||||||||
Interest on lease liabilities | |||||||||||||||||||||||
Total finance lease cost | $ | $ | $ | $ |
December 31, | June 30, | ||||||||||
($000s) | 2023 | 2023 | |||||||||
Operating lease assets | $ | $ | |||||||||
Operating lease liabilities, current | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance lease assets, net | $ | $ | |||||||||
Finance lease liabilities, current | |||||||||||
Finance lease liabilities, non-current | |||||||||||
Total finance lease liabilities | $ | $ |
Six Months Ended December 31, | |||||||||||
($000s) | 2023 | 2022 | |||||||||
Cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
Operating cash flows paid for interest portion of finance leases | |||||||||||
Financing cash flows paid for principal portion of finance leases | |||||||||||
Six Months Ended December 31, | |||||||||||
($000s) | 2023 | 2022 | |||||||||
Right-of-use assets obtained in exchange for lease obligations | |||||||||||
Operating leases | $ | ||||||||||
Finance leases | $ |
December 31, | June 30, | ||||||||||
2023 | 2023 | ||||||||||
Weighted average remaining lease term (in years) | |||||||||||
Operating leases | |||||||||||
Finance leases | |||||||||||
Weighted average discount rate | |||||||||||
Operating leases | % | % | |||||||||
Finance leases | % | % |
($000s) | Operating Leases | Finance Leases | |||||||||
2024-remainder of year | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total undiscounted lease payments | |||||||||||
Less: liability accretion | ( | ( | |||||||||
Total lease liabilities | $ | $ |
Settlement date | Hedged currency | Foreign currency rate | Notional amount ($000s) | Fair Value ($000s) | ||||||||||||||||||||||
Foreign currency option contracts - assets | ||||||||||||||||||||||||||
January 5, 2024 through December 19, 2024 | PHP | $ | ||||||||||||||||||||||||
Fair value as of June 30, 2023 | $ | — | ||||||||||||||||||||||||
Fair value as of December 31, 2023 | $ |
Settlement date | Hedged currency | Foreign currency rate | Notional amount ($000s) | Fair Value ($000s) | ||||||||||||||||||||||
Foreign currency option contracts - liabilities | ||||||||||||||||||||||||||
January 5, 2024 through December 19, 2024 | PHP | $ | ||||||||||||||||||||||||
Fair value as of June 30, 2023 | $ | |||||||||||||||||||||||||
Fair value as of December 31, 2023 | $ | — |
December 31, | June 30, | ||||||||||
($000s) | 2023 | 2023 | |||||||||
Debt | |||||||||||
PNC Credit Facility | $ | $ | |||||||||
Finance leases | |||||||||||
Total debt | $ | $ | |||||||||
Less: Current maturities of long-term debt and finance leases | ( | ( | |||||||||
Total long-term debt | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Cost of services | $ | $ | $ | $ | |||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Phantom Stock Plans | $ | $ | $ | ( | $ | ||||||||||||||||||
2018 Restricted Stock Award Plan | ( | ||||||||||||||||||||||
2020 Long term Incentive Plan | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
As of December 31, 2023 | Fair Value Measurements Using | ||||||||||||||||
($000s) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Assets | |||||||||||||||||
Cash flow hedge - foreign currency collars, net | $ | $ | $ | ||||||||||||||
Total assets | $ | $ | $ | ||||||||||||||
Liabilities | |||||||||||||||||
Phantom stock options | $ | $ | $ | ||||||||||||||
Total liabilities | $ | $ | $ |
As of June 30, 2023 | Fair Value Measurements Using | ||||||||||||||||
($000s) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||
Liabilities | |||||||||||||||||
Cash flow hedge - foreign currency collars, net | $ | $ | $ | ||||||||||||||
Phantom stock options | |||||||||||||||||
Total liabilities | $ | $ | $ |
($000s) | Foreign Currency Translation Adjustment | Derivative Valuation | Defined Benefit Plan | Total | |||||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Foreign currency translation | — | — | |||||||||||||||||||||
Unrealized loss on cash flow hedges | — | ( | — | ( | |||||||||||||||||||
Reclassifications to earnings | — | — | |||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | ( | $ | $ | ( |
($000s) | Foreign Currency Translation Adjustment | Derivative Valuation | Defined Benefit Plan | Total | |||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Foreign currency translation | — | — | |||||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | |||||||||||||||||||||
Reclassifications to earnings | — | — | |||||||||||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | $ | $ | ( |
($000s) | Foreign Currency Translation Adjustment | Derivative Valuation | Defined Benefit Plan | Total | |||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Foreign currency translation | ( | — | — | ( | |||||||||||||||||||
Unrealized loss on cash flow hedges | — | ( | — | ( | |||||||||||||||||||
Reclassifications to earnings | — | — | |||||||||||||||||||||
Balance as of December 31, 2022 | $ | ( | $ | ( | $ | $ | ( |
($000s) | Foreign Currency Translation Adjustment | Derivative Valuation | Defined Benefit Plan | Total | |||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||
Foreign currency translation | ( | — | — | ( | |||||||||||||||||||
Unrealized gain on cash flow hedges | — | — | |||||||||||||||||||||
Reclassifications to earnings | — | — | |||||||||||||||||||||
Balance as of December 31, 2023 | $ | ( | $ | $ | $ | ( |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
(000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Shares used in basic earnings per share calculation | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Employee share-based compensation | |||||||||||||||||||||||
Warrant | |||||||||||||||||||||||
Total effects of dilutive securities | |||||||||||||||||||||||
Shares used in dilutive earnings per share calculation | |||||||||||||||||||||||
Shares considered anti-dilutive using the treasury method | ( | ( | ( | ( |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Dividends received | ( | ( | ( | ( | |||||||||||||||||||
Share of profit | |||||||||||||||||||||||
Ending balance | $ | $ | $ | $ |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | $ | 132,634 | $ | 139,325 | $ | 257,243 | $ | 267,130 | |||||||||||||||
Cost of services | 95,884 | 99,790 | 184,080 | 195,943 | |||||||||||||||||||
Selling, general and administrative | 24,857 | 23,502 | 47,897 | 42,807 | |||||||||||||||||||
Depreciation and amortization | 4,946 | 4,582 | 9,988 | 9,259 | |||||||||||||||||||
Income from operations | $ | 6,947 | $ | 11,451 | $ | 15,278 | $ | 19,121 | |||||||||||||||
Interest income | 512 | 138 | 1,098 | 186 | |||||||||||||||||||
Interest expense | (111) | (300) | (215) | (448) | |||||||||||||||||||
Income before income taxes | $ | 7,348 | $ | 11,289 | $ | 16,161 | $ | 18,859 | |||||||||||||||
Provision for income tax expense | (1,273) | (2,019) | (2,661) | (3,066) | |||||||||||||||||||
Net income | $ | 6,075 | $ | 9,270 | $ | 13,500 | $ | 15,793 |
($000s, except per share amounts) | Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | 6,075 | $ | 9,270 | $ | 13,500 | $ | 15,793 | |||||||||||||||
Net income margin | 4.6 | % | 6.7 | % | 5.2 | % | 5.9 | % | |||||||||||||||
Non-recurring expenses | — | 792 | — | 792 | |||||||||||||||||||
Warrant contra revenue | 307 | 310 | 594 | 596 | |||||||||||||||||||
Foreign currency losses / (gains) | 697 | 752 | (100) | (97) | |||||||||||||||||||
Share-based compensation expense | 1,427 | 1,533 | 2,275 | 2,655 | |||||||||||||||||||
Total adjustments | $ | 2,431 | $ | 3,387 | $ | 2,769 | $ | 3,946 | |||||||||||||||
Tax impact of adjustments1 | (482) | (425) | (671) | (710) | |||||||||||||||||||
Adjusted net income | $ | 8,024 | $ | 12,232 | $ | 15,598 | $ | 19,029 | |||||||||||||||
Adjusted net income margin | 6.0 | % | 8.8 | % | 6.1 | % | 7.1 | % | |||||||||||||||
Diluted earnings per share | $ | 0.33 | $ | 0.49 | $ | 0.72 | $ | 0.84 | |||||||||||||||
Per share impact of adjustments to net income | 0.11 | 0.16 | 0.12 | 0.17 | |||||||||||||||||||
Adjusted earnings per share | $ | 0.44 | $ | 0.65 | $ | 0.84 | $ | 1.01 | |||||||||||||||
Weighted average diluted shares outstanding | 18,440 | 18,860 | 18,667 | 18,759 |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net income | $ | 6,075 | $ | 9,270 | $ | 13,500 | $ | 15,793 | |||||||||||||||
Net income margin | 4.6 | % | 6.7 | % | 5.2 | % | 5.9 | % | |||||||||||||||
Interest expense | 111 | 300 | 215 | 448 | |||||||||||||||||||
Income tax expense | 1,273 | 2,019 | 2,661 | 3,066 | |||||||||||||||||||
Depreciation and amortization | 4,946 | 4,582 | 9,988 | 9,259 | |||||||||||||||||||
EBITDA | $ | 12,405 | $ | 16,171 | $ | 26,364 | $ | 28,566 | |||||||||||||||
Non-recurring expenses | — | 792 | — | 792 | |||||||||||||||||||
Interest income | (512) | (138) | (1,098) | (186) | |||||||||||||||||||
Warrant contra revenue | 307 | 310 | 594 | 596 | |||||||||||||||||||
Foreign currency losses / (gains) | 697 | 752 | (100) | (97) | |||||||||||||||||||
Share-based compensation expense | 1,427 | 1,533 | 2,275 | 2,655 | |||||||||||||||||||
Adjusted EBITDA | $ | 14,324 | $ | 19,420 | $ | 28,035 | $ | 32,326 | |||||||||||||||
Adjusted EBITDA margin | 10.8 | % | 13.9 | % | 10.9 | % | 12.1 | % |
Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
($000s) | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Net cash / (used in) provided by operating activities | $ | (1,637) | $ | 5,293 | $ | 7,047 | $ | 10,855 | |||||||||||||||
Less: capital expenditures | 2,892 | 7,948 | 4,944 | 11,506 | |||||||||||||||||||
Free cash flow | $ | (4,529) | $ | (2,655) | $ | 2,103 | $ | (651) |
December 31, | June 30, | ||||||||||
($000s) | 2023 | 2023 | |||||||||
Cash and cash equivalents | $ | 49,016 | $ | 57,429 | |||||||
Debt | |||||||||||
Current | $ | 441 | $ | 413 | |||||||
Non-current | 560 | 600 | |||||||||
Total debt | $ | 1,001 | $ | 1,013 | |||||||
Net cash | $ | 48,015 | $ | 56,416 |
Six months ended December 31, | |||||||||||
($000s) | 2023 | 2022 | |||||||||
Net cash inflow / (outflow) from | |||||||||||
Operating activities | $ | 7,047 | $ | 10,855 | |||||||
Investing activities | (4,944) | (11,506) | |||||||||
Financing activities | (10,519) | (9,843) | |||||||||
Effects of exchange rate difference on cash and cash equivalents | 3 | (255) | |||||||||
Net increase / (decrease) in cash and cash equivalents | $ | (8,413) | $ | (10,749) | |||||||
Cash and cash equivalents at beginning of the period | 57,429 | 48,831 | |||||||||
Cash and cash equivalents at the end of the period | $ | 49,016 | $ | 38,082 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program ($000s) | ||||||||||||||||||||||
October 1 - October 31, 2023 | 230,577 | $ | 16.15 | 230,577 | $ | 24,237 | ||||||||||||||||||||
November 1 - November 30, 2023 | 126,062 | $ | 17.42 | 126,062 | $ | 22,042 | ||||||||||||||||||||
December 1 - December 31, 2023 | 132,164 | $ | 18.56 | 132,164 | $ | 19,589 | ||||||||||||||||||||
Total | 488,803 | $ | 17.13 | 488,803 | $ | 19,589 |
Incorporated by Reference | ||||||||||||||||||||||||||||||||||||||
Exhibit Number | Description of Document | Form | File Number | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
3.1 | F-1 | 333-239821 | 3.1 | 07/29/2020 | ||||||||||||||||||||||||||||||||||
3.2 | 20-F | 001-38442 | 1.2 | 10/23/2020 | ||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance Document | X | ||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101) | X |
IBEX LIMITED | ||||||||||||||
(Registrant) | ||||||||||||||
Date: | February 8, 2024 | By: | /s/ Robert Dechant | |||||||||||
Robert Dechant | ||||||||||||||
Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: | February 8, 2024 | By: | /s/ Taylor Greenwald | |||||||||||
Taylor Greenwald | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial and Accounting Officer) | ||||||||||||||
Date: | February 8, 2024 | |||||||
By: | /s/ Robert Dechant | |||||||
Name: | Robert Dechant | |||||||
Title: | Chief Executive Officer | |||||||
(Principal Executive Officer) |
Date: | February 8, 2024 | |||||||
By: | /s/ Taylor Greenwald | |||||||
Name: | Taylor Greenwald | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Financial Officer) |
By: | /s/ Robert Dechant | |||||||
Name: | Robert Dechant | |||||||
Title: | Chief Executive Officer | |||||||
(Principal Executive Officer) | ||||||||
By: | /s/ Taylor Greenwald | |||||||
Name: | Taylor Greenwald | |||||||
Title: | Chief Financial Officer | |||||||
(Principal Financial Officer) |
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock: par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock: shares authorized (in shares) | 108,057,967 | 108,057,967 |
Common stock: shares outstanding (in shares) | 17,681,035 | 18,280,419 |
Treasury stock at cost (in shares) | 868,774 | 245,447 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||||
Revenue | $ 132,634 | $ 139,325 | $ 257,243 | $ 267,130 |
Cost of services (exclusive of depreciation and amortization presented separately below) | 95,884 | 99,790 | 184,080 | 195,943 |
Selling, general and administrative | 24,857 | 23,502 | 47,897 | 42,807 |
Depreciation and amortization | 4,946 | 4,582 | 9,988 | 9,259 |
Total operating expenses | 125,687 | 127,874 | 241,965 | 248,009 |
Income from operations | 6,947 | 11,451 | 15,278 | 19,121 |
Interest income | 512 | 138 | 1,098 | 186 |
Interest expense | (111) | (300) | (215) | (448) |
Income before income taxes | 7,348 | 11,289 | 16,161 | 18,859 |
Provision for income tax expense | (1,273) | (2,019) | (2,661) | (3,066) |
Net income | 6,075 | 9,270 | 13,500 | 15,793 |
Other comprehensive income / (loss) | ||||
Foreign currency translation adjustments | 679 | 554 | (22) | (1,123) |
Unrealized gain on cash flow hedging instruments, net of tax | 395 | 814 | 201 | 553 |
Total other comprehensive gain / (loss) | 1,074 | 1,368 | 179 | (570) |
Total comprehensive income | $ 7,149 | $ 10,638 | $ 13,679 | $ 15,223 |
Net income per share | ||||
Basic (in dollars per share) | $ 0.34 | $ 0.51 | $ 0.75 | $ 0.87 |
Diluted (in dollars per share) | $ 0.33 | $ 0.49 | $ 0.72 | $ 0.84 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 17,885 | 18,149 | 18,084 | 18,154 |
Diluted (in shares) | 18,440 | 18,860 | 18,667 | 18,759 |
Overview and Summary of Significant Accounting Policies |
6 Months Ended |
---|---|
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Summary of Significant Accounting Policies | OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OVERVIEW IBEX Limited (“IBEX” and together with its subsidiaries, the “Company,” “ibex,” “we,” “us,” or “our”) was incorporated on February 28, 2017 in Hamilton, Bermuda. Our registered office in Bermuda is Crawford House, 50 Cedar Avenue, Hamilton HM 11, Bermuda. We are a “controlled company” within the meaning of the rules of Nasdaq, with The Resource Group International Limited (“TRGI”) being our controlling shareholder. TRG Pakistan Limited holds a controlling interest in TRGI. On August 7, 2020, the Company was admitted to trade on the Nasdaq Global Market under the ticker symbol “IBEX.” The Company is an end-to-end provider of technology-enabled customer lifecycle experience (“CLX”) solutions. Through the Company’s integrated CLX platform, a comprehensive portfolio of solutions is offered to optimize customer acquisition, engagement, expansion and experience for clients. The Company leverages sophisticated technology and proprietary analytics, in combination with its global footprint and business process outsourcing expertise, to protect and enhance clients’ brands. Our services cover three main areas: •ibex Connect: Our Connect business lies at the core of our offerings and generates the majority of the Company’s revenue. This business unit delivers differentiated customer service (assisting our clients’ customers with information about our clients and their products or services), technical support (providing specialized teams to provide information, assistance and technical guidance to our clients’ customers on a specific product or service), revenue generation (upselling and cross selling) and other value-added outsourced back office services (finance and accounting, marketing support, sales operations, and human resources administration) to our clients. We deploy these capabilities through a true omni-channel CX model, which integrates voice, email, chat, SMS, social media and other communication applications. •ibex Digital: Our ibex Digital suite of solutions works with consumer-facing businesses to help them build, grow and scale technology-driven customer acquisition solutions, while helping drive digital transformation. We offer digital marketing, e-commerce technology, and platform solutions for our clients, helping them build new customer acquisition channels, increase acquired customers, and often do both at a reduced cost. •ibex CX: Our CX business measures, monitors and manages our clients’ holistic customer experiences. By offering a 360-degree CX approach, our clients can harness the power of data and customer feedback to differentiate themselves within today’s “customer expectation economy.” We enable our clients to improve retention of their customers, identify and manage service issues in real time, predict future behavior and outcomes, derive impact analysis scenarios and assign “action plans” throughout the enterprise. Operating segments An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment. The Company’s CODM is the chief executive officer (“CEO”). The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance. Therefore, the Company has determined that it operates in a single operating and reportable segment. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2023, its results of operations, comprehensive income, and shareholders’ equity for the three and six months ended December 31, 2023 and 2022, and cash flows for the six months ended December 31, 2023 and 2022. The consolidated balance sheet as of June 30, 2023, was derived from the audited annual financial statements included in the Annual Report. Use of estimates The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include useful lives for property and equipment; impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets; allowance for credit losses; valuation allowances for deferred tax assets and other receivables; fair value of share-based compensation, warrants, and derivatives, and legal provisions. The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained. Actual results could differ materially from these estimates. Concentration of credit risk The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate losses. The Company evaluates the creditworthiness of its clients prior to and throughout the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative instruments as all of its counterparties are investment-grade financial institutions. Leases The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of Accounting Standards Codification (“ASC”) 842, Leases. Operating leases are included in operating lease assets and current and non-current operating lease liabilities, and assets leased under finance leases are included in property and equipment and current and long-term debt in the consolidated balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease expense is recognized on a straight-line basis over the lease term in cost of services or selling, general and administrative expense, as applicable. Interest on finance leases is included in interest expense in the consolidated statements of comprehensive income. Share-based compensation plans The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation. The Company calculates the fair value of option awards using the Black-Scholes model. For equity-classified awards, total compensation cost is based on the grant date fair value. For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement. The Company recognizes share-based compensation expense over the requisite vesting period using a graded vesting model. Awards to employees and directors may contain service, performance and/or market vesting conditions. For unvested awards with performance conditions, the Company assesses the probability of attaining the performance conditions at each reporting period. Awards that are deemed probable of attainment are recognized in expense over the requisite service period. The Company accounts for forfeitures as they occur. Share repurchase programs The board of directors may authorize share repurchases of the Company’s common shares. Purchases made pursuant to these authorizations may be carried out through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, at times and in such amounts as the Company deems appropriate. Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit. Cloud Computing Software Implementation Costs The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. In accordance with Accounting Standards Codification ("ASC") 350-40, Goodwill and Other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage as a component of prepaid expenses or other non-current assets. Capitalized costs are primarily comprised of third-party consulting fees, direct labor, and related expenses. Capitalization of these costs concludes once the project is substantially complete and the software is ready for the Company's intended use. Once available for its intended use, the capitalized costs will be amortized on a straight-line basis over the term of the associated hosting arrangement including periods covered by an option to extend, and are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. Costs related to data conversion, overhead, general and administrative activities, and training are expensed as incurred. Post-configuration training and maintenance costs are expensed as incurred. The Company capitalized $0.8 million and $1.2 million during the three and six months ended December 31, 2023, respectively. There were no costs capitalized during the three and six months ended December 31, 2022. Emerging Growth Company The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company has the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies pursuant to Section 13(a) of the Exchange Act. The Company has elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably. Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) the income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.
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Revenue from Contracts with Customers |
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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, Revenue from Contracts with Customers. Disaggregation of Revenue The majority of the Company’s revenues are derived from contracts with customers who are located in the United States of America (the "United States" or "U.S."). However, the Company delivers most of its services from regional customer experience delivery centers that are located in 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 that we currently operate. The Company generated approximately 97% of its revenue from clients based in the United States for both the three and six months ended December 31, 2023, as follows:
The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided:
The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition:
The movement in the Company's deferred revenue is as follows:
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Accounts Receivable and Significant Clients |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable and Significant Clients | ACCOUNTS RECEIVABLE AND SIGNIFICANT CLIENTS Accounts receivable, net in the accompanying consolidated balance sheets consists of the following:
The Company estimates its expected credit losses using the lifetime expected credit loss model. The allowance for credit losses is calculated quarterly based on the Company’s historical loss percentages, net of recoveries. In addition to the evaluation of historical losses, the Company considers current and future economic conditions and events such as changes in customer credit quality and liquidity. The Company will write-off accounts receivable against the allowance when it determines a balance is uncollectible. Activity in the Company’s allowance for credit losses consists of the following:
Significant Client During the six months ended December 31, 2023 and 2022, the Company had one client that contributed approximately 12.9% and 13.5% of total revenue, respectively. To limit the Company’s credit risk with its clients, management regularly monitors the aging of customer receivables, maintains allowances for credit losses and may require prepayment for services from certain clients. Based on currently available information, management does not believe significant credit risk exists as of December 31, 2023.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment. Leases typically have initial terms of to fifteen years, and may include renewal options if the Company is reasonably certain to exercise such options. The components of lease cost are as follows:
The following table presents supplemental balance sheet information related to leases:
The following table presents supplemental cash flow information related to leases:
The following table presents supplemental noncash information related to leases:
The following table presents the maturities of our lease liabilities as of December 31, 2023:
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Leases | LEASES The Company has operating lease obligations primarily for our delivery centers and finance lease obligations primarily for vehicles and other equipment. Leases typically have initial terms of to fifteen years, and may include renewal options if the Company is reasonably certain to exercise such options. The components of lease cost are as follows:
The following table presents supplemental balance sheet information related to leases:
The following table presents supplemental cash flow information related to leases:
The following table presents supplemental noncash information related to leases:
The following table presents the maturities of our lease liabilities as of December 31, 2023:
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | DERIVATIVES Cash flow hedges Interest rate swap In March 2020, the Company entered into a three-year $15 million notional floating to fixed interest rate swap to hedge the interest rate risk on the first $15 million of the balance outstanding under our $80 million revolving credit facility (as amended, the "PNC Credit Facility") with PNC Bank, N.A. ("PNC"). At the time the hedge was executed, all critical terms matched between the hedge and the hedged item. Hedge effectiveness was assessed prospectively at inception, and on an ongoing basis by confirming that the critical terms continue to match. Any hedge ineffectiveness is recorded in interest expense in the consolidated statements of comprehensive income. For the three and six months ended December 31, 2022, there was no hedge ineffectiveness. The hedge expired in March 2023 and was not replaced. Foreign exchange contracts From time to time, the Company enters into foreign currency exchange contracts, consisting of offsetting foreign exchange option contracts (“collars”), to mitigate foreign exchange fluctuations on the Philippine Peso (“PHP”) within a certain range and on a certain percentage of its PHP operating costs. The collars are designated as cash flow hedges upon inception, in accordance with ASC 815, in order to match the financial results of the hedges with the forecasted transactions. These contracts cover periods commensurate with the expected exposure, generally to twelve months. We execute our contracts with our primary banking partner, PNC. The Company has not experienced and does not anticipate experiencing any material issues related to derivative counterparty defaults. The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of December 31, 2023 and June 30, 2023:
The fair value of the collars is included in and in the consolidated balance sheets. Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in accumulated other comprehensive income ("AOCI"). Amounts previously recognized in AOCI are reclassified to cost of services in the periods in which the hedged expenses occur. Refer to Note 12. "Stockholders' Equity" for further details on the change in fair value of our cash flow hedges and the net gain or loss reclassified to earnings from effective hedges during the three and six months ended December 31, 2023 and 2022.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Debt consists of the following:
As of December 31, 2023, the Company had $80.0 million of borrowing available under the PNC Credit Facility based on eligible collateral. The PNC Credit Facility contains certain financial, operating, and other covenants, including, among other things, covenants restricting additional borrowings, paying any dividends and making certain investments. The Company was in compliance with all debt covenants as of December 31, 2023.
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Commitments and Contingencies |
6 Months Ended |
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Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company is subject to claims and lawsuits filed in the ordinary course of business. Although management does not believe that any such proceedings will have material adverse effect on its consolidated financial position, results of operations, or cash flows, no assurances to that effect can be given based on the uncertainty of litigation and demands of third parties. The Company records a liability for pending litigation and claims where losses are both probable and can be reasonably estimated. Indemnification In addition, in the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify clients, vendors and other business partners with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, cybersecurity breach, services to be provided by us or from intellectual property infringement claims made by third parties. Historically, we have not experienced significant losses on these types of indemnification obligations.
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Warrant |
6 Months Ended |
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Dec. 31, 2023 | |
Equity [Abstract] | |
Warrant | WARRANT On November 13, 2017, and as subsequently amended, the Company issued to Amazon.com NV Investment Holdings LLC, a subsidiary of Amazon.com, Inc. (“Amazon”), a 10-year warrant to acquire approximately 1,674,017 common shares (the "warrant shares"), representing 10.0% of our equity on a fully diluted basis at the time of the warrant's issuance. The warrant is exercisable at a price per share of $9.42. The warrant provides for net share settlement, that if elected by the holder, will reduce the number of shares issued upon exercise to reflect the net settlement of the exercise price. The warrant is classified as an equity instrument in accordance with ASU No. 2019-08, which was adopted retroactively on July 1, 2020. The Company determined the grant date fair value of the warrant using the Black-Scholes option pricing model. The warrant shares vest on the satisfaction of specified milestones tied to Amazon’s purchase of services from the Company during a seven-and-a-half-year period ending on June 30, 2024. The vesting is partially accelerated in the event of a reorganization transaction (as defined in the warrant). Amazon is entitled to customary shelf and piggy-back registration rights with respect to the shares issued upon exercise of the warrant. Amazon may not transfer the warrant except to a wholly-owned subsidiary of Amazon. As of December 31, 2023 and June 30, 2023, 1,004,410 and 1,004,410 warrant shares were vested, respectively. To date, the warrant has not been exercised, expired or cancelled. The Company recorded contra revenue of approximately $0.3 million and $0.6 million, respectively, during the three and six months ended for both December 31, 2023 and 2022.
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Share Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share Based Compensation | SHARE BASED COMPENSATION Share-based compensation expense The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan:
As of December 31, 2023, there was $6.9 million of total unrecognized compensation expense related to non-vested share-based awards, which is expected to be recognized over a weighted-average period of .
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Fair Value |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | FAIR VALUE The fair value hierarchy prioritized the input to valuation techniques used to measure fair value. The hierarchy requires that the Company maximize the use of observable inputs and minimize the use of unobservable inputs. The levels of the fair value hierarchy are as follows: Level 1: Quoted prices for identical instruments traded in active markets. Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Unobservable inputs that cannot be supported by market activity and that are significant to the fair value of the asset, liability, or equity such as the use of certain pricing models, discounted cash flow models and similar techniques that use significant unobservable inputs. The carrying value of our cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, accrued payroll and employee-related liabilities, approximate fair value because of their short-term nature. The Company measures its debt at carrying value including accrued interest, which approximates fair value because of its short-term nature. Derivatives designated as cash flow hedges The values of our derivative instruments are derived from pricing models using inputs based upon market information, including contractual terms, market prices and yield curves. The inputs to the valuation pricing models are observable in the market, and as such the derivatives are classified as Level 2 in the fair value hierarchy. Phantom stock awards The Company uses the Black-Scholes option pricing model to value our phantom stock awards. All inputs to the model are derived from active market information for identical or similar instruments, including stock price, volatility, and interest rates. The inputs to the valuation pricing models are observable in the market, and as such the phantom stock awards are classified as Level 2 in the fair value hierarchy. The following is a summary of the Company’s fair value measurements on a recurring basis as of December 31, 2023 and June 30, 2023:
These balances are included in other current assets and accounts payable and accrued liabilities and other non-current liabilities in the consolidated balance sheets. There were no transfers between the different hierarchy levels in the three and six months ended December 31, 2023 and 2022.
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Income Taxes |
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Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES In determining its interim provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected income before taxes, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the period in which they occur and can be a source of variability in the effective tax rate from quarter to quarter. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company records valuation allowances against its deferred tax assets based on whether it is more likely than not that the deferred tax assets will be realized. The Company’s income tax provision includes the results of the Company’s U.S. operations and its various foreign operations including subsidiaries based in the United Kingdom, European Union, Canada, Jamaica, Nicaragua, Pakistan, Senegal, Honduras, and the Philippines. Historically, the Company’s Bermuda-based companies are not subject to income tax as there was no corporate income tax in Bermuda. On December 27, 2023 the Bermuda Corporate Income Tax Act 2023 was passed and provides for a 15% corporate tax rate beginning on or after January 1, 2025 for Companies with revenue in excess of 750 million Euros. The Company is evaluating the impact of this legislation, but it does not anticipate that it will have a material impact on the Company’s operations. The Company recorded a provision for income taxes of $1.3 million and $2.7 million in the three and six months ended December 31, 2023, respectively. The effective tax rate was 17.3% and 16.5% for the three and six months ended December 31, 2023, respectively. The Company recorded a provision for income taxes of $2.0 million and $3.1 million in the three and six months ended December 31, 2022, respectively. The effective tax rate was 17.9% and 16.3% for the three and six months ended December 31, 2022, respectively. The changes in effective tax rates between these periods was primarily attributable to changes in revenue mix across our taxable jurisdictions. The difference between the effective tax rate and the 21% federal statutory rate in the three and six months ended December 31, 2023 was primarily due to "Tax Holidays" in certain countries in which we operate and the distribution of taxable income in countries with differing tax rates. We have been granted Tax Holidays as an incentive to attract foreign investment by the governments of Nicaragua, Pakistan, Honduras, Jamaica, and certain qualifying locations in the Philippines. Generally, a Tax Holiday is an agreement between us and a foreign government under which we receive certain tax benefits in that country. The aggregate reduction in income tax expense due to the above Tax Holidays were $1.2 million and $2.6 million for the three and six months ended December 31, 2023, respectively. The aggregate reduction in income tax expense per diluted share was $0.07 and $0.14 for the three and six months ended December 31, 2023, respectively. The aggregate reduction in income tax expense due to the above Tax Holidays were $0.9 million and $1.8 million for the three and six months ended December 31, 2022, respectively. The aggregate reduction in income tax expense per diluted share was $0.05 and $0.10 for the three and six months ended December 31, 2022, respectively. As of December 31, 2023, we had no unrecognized tax positions and do not expect changes to our uncertain tax positions within the next 12 months.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | STOCKHOLDERS’ EQUITY AOCI The following table presents changes by component for the three months ended December 31, 2022 and 2023:
The following table presents changes by component for the six months ended December 31, 2022 and 2023:
Share buyback On September 18, 2023, the Company announced that the board of directors (the "Board") had authorized a share repurchase program under which the Company may repurchase up to $30 million of its shares over the next six months beginning September 18, 2023 (the “Share Repurchase Program”). During the three and six months ended December 31, 2023, we repurchased 488,803 and 623,327 shares of our common shares under the Share Repurchase Program for $8.4 million and $10.4 million, respectively, which the Company funded with available cash. As of December 31, 2023, approximately $19.6 million remained available for share repurchases under our Share Repurchase Program. During the six months ended December 31, 2022, we repurchased 17,558 shares of our common shares under our previous share repurchase program for $0.3 million. The previous share repurchase program was announced in December 2021 and expired a year later.
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Weighted Average Share Counts |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Share Counts | WEIGHTED AVERAGE SHARE COUNTS The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the three and six months ended December 31, 2023 and 2022:
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Related Party Transactions |
6 Months Ended |
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Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONSThe Company has agreements with multiple companies under the control of our controlling shareholder, TRGI, and with companies which have common directors with us, in the normal course of business. These transactions were executed on mutually agreed terms and include contact center services, back office support services and an office lease. During the three and six months ended December 31, 2023, the Company recognized revenue of $0.02 million and $0.03 million, respectively, with these related parties. During the three and six months ended December 31, 2022, the Company recognized revenue of $0.01 million and $0.03 million, respectively, with these related parties. As of December 31, 2023 and June 30, 2023, the Company had accounts receivable of $0.1 million and $0.04 million, respectively, and accounts payable of $0.05 million and $2.3 million, respectively, with these related parties. |
Investment in Joint Venture |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Joint Venture | INVESTMENT IN JOINT VENTURE The Company has an investment in Lake Ball, LLC to procure and sell commercial leads for its customers. The Company’s ownership interest is 47.5% and is accounted for under the equity method. The Company’s investment of $0.4 million at December 31, 2023 and June 30, 2023, respectively, is included in other non-current assets in the consolidated balance sheets, while net earnings from the joint venture is included in selling, general and administrative expense in the consolidated statements of comprehensive income. The table below presents our investment in the joint venture:
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
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Pay vs Performance Disclosure | ||||
Net income | $ 6,075 | $ 9,270 | $ 13,500 | $ 15,793 |
Insider Trading Arrangements |
3 Months Ended | 6 Months Ended |
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Dec. 31, 2023
shares
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Dec. 31, 2023
shares
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Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Mr. Jeff Cox [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On November 14, 2023, Mr. Jeff Cox, the Company's President of ibex Digital, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell up to 150,000 shares of the Company's common stock between February 13, 2024 and June 1, 2024, subject to such shares reaching certain price points. | |
Name | Mr. Jeff Cox | |
Title | President of ibex Digital | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 14, 2023 | |
Arrangement Duration | 109 days | |
Aggregate Available | 150,000 | 150,000 |
Overview and Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating segments | An operating segment is defined as a component of a company for which separate financial information is available and which is regularly evaluated by the chief operating decision maker (“CODM”) for the purpose of making decisions regarding resource allocation and performance assessment. The Company’s CODM is the chief executive officer (“CEO”). The Company’s CODM reviews consolidated financial results to make decisions, allocate resources and assess performance. Therefore, the Company has determined that it operates in a single operating and reportable segment.
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Basis of presentation and principles of consolidation | The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2023, its results of operations, comprehensive income, and shareholders’ equity for the three and six months ended December 31, 2023 and 2022, and cash flows for the six months ended December 31, 2023 and 2022. The consolidated balance sheet as of June 30, 2023, was derived from the audited annual financial statements included in the Annual Report.
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Basis of presentation and principles of consolidation | The Company’s interim consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”), and include the financial results of all wholly-owned subsidiaries. When the Company does not have majority ownership in an entity but exerts significant influence over that entity, the Company accounts for the entity under the equity method of accounting. All intercompany balances and transactions have been eliminated in consolidation. These unaudited consolidated financial statements and accompanying notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 30, 2023 (the “Annual Report”) as filed with the SEC. There have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s consolidated financial statements and related notes. In the opinion of the Company, these unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2023, its results of operations, comprehensive income, and shareholders’ equity for the three and six months ended December 31, 2023 and 2022, and cash flows for the six months ended December 31, 2023 and 2022. The consolidated balance sheet as of June 30, 2023, was derived from the audited annual financial statements included in the Annual Report.
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Use of estimates | The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Significant items subject to such estimates and assumptions include useful lives for property and equipment; impairment of long-lived assets, operating lease assets and liabilities, goodwill, and other intangible assets; allowance for credit losses; valuation allowances for deferred tax assets and other receivables; fair value of share-based compensation, warrants, and derivatives, and legal provisions. The Company bases its estimates on historical experience and other assumptions it believes are reasonable, including the use of outside experts as necessary, and updates these estimates on an ongoing basis and as new events occur, more experience is acquired and/or more information is obtained. Actual results could differ materially from these estimates. |
Concentration of credit risk | The Company is exposed to credit risk in the normal course of business, primarily related to accounts receivable and derivative instruments. Historically, the losses related to credit risk have been immaterial. The Company regularly monitors its credit risk to mitigate losses. The Company evaluates the creditworthiness of its clients prior to and throughout the life of the client relationship. The Company does not believe it is exposed to more than a nominal amount of credit risk in its derivative instruments as all of its counterparties are investment-grade financial institutions.
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Leases | The Company determines whether an arrangement contains a lease at inception in accordance with the provisions of Accounting Standards Codification (“ASC”) 842, Leases. Operating leases are included in operating lease assets and current and non-current operating lease liabilities, and assets leased under finance leases are included in property and equipment and current and long-term debt in the consolidated balance sheets. Operating lease assets represent the Company’s right to use an underlying asset for the lease term, and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease expense is recognized on a straight-line basis over the lease term in cost of services or selling, general and administrative expense, as applicable. Interest on finance leases is included in interest expense in the consolidated statements of comprehensive income.
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Share-based compensation plans | The Company accounts for its share-based awards in accordance with provisions of ASC 718, Compensation - Stock Compensation. The Company calculates the fair value of option awards using the Black-Scholes model. For equity-classified awards, total compensation cost is based on the grant date fair value. For liability-classified awards, total compensation cost is based on the fair value of the award on the date the award is granted and is subsequently re-measured at each reporting date until settlement. The Company recognizes share-based compensation expense over the requisite vesting period using a graded vesting model. Awards to employees and directors may contain service, performance and/or market vesting conditions. For unvested awards with performance conditions, the Company assesses the probability of attaining the performance conditions at each reporting period. Awards that are deemed probable of attainment are recognized in expense over the requisite service period. The Company accounts for forfeitures as they occur.
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Share repurchase programs | The board of directors may authorize share repurchases of the Company’s common shares. Purchases made pursuant to these authorizations may be carried out through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on the market conditions and in accordance with applicable rules and regulations, at times and in such amounts as the Company deems appropriate. Shares repurchased under such authorizations are held in treasury for general corporate purposes, including issuances under various employee share-based award plans. When Company shares are repurchased, the amount of the consideration paid (including directly attributable costs, net of any tax effects) is recognized as a deduction of additional paid in capital. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. When treasury shares are subsequently sold or reissued, the amount received is recognized as an increase in additional paid in capital, and any resulting surplus or deficit on the transaction is reclassified to accumulated deficit. |
Cloud Computing Software Implementation Costs | The Company incurs costs to implement cloud computing arrangements that are hosted by a third-party vendor. In accordance with Accounting Standards Codification ("ASC") 350-40, Goodwill and Other, Internal-Use Software, for cloud computing arrangements that meet the definition of a service contract, the Company capitalizes qualifying implementation costs incurred during the application development stage as a component of prepaid expenses or other non-current assets. Capitalized costs are primarily comprised of third-party consulting fees, direct labor, and related expenses. Capitalization of these costs concludes once the project is substantially complete and the software is ready for the Company's intended use. Once available for its intended use, the capitalized costs will be amortized on a straight-line basis over the term of the associated hosting arrangement including periods covered by an option to extend, and are included in selling, general and administrative expenses in the consolidated statements of comprehensive income. Costs related to data conversion, overhead, general and administrative activities, and training are expensed as incurred. Post-configuration training and maintenance costs are expensed as incurred. |
Emerging Growth Company | The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company has the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies pursuant to Section 13(a) of the Exchange Act. The Company has elected to use the extended transition period until we are no longer an emerging growth company or until we choose to opt out of the extended transition period affirmatively and irrevocably.
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Recently Issued Accounting Pronouncements | In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements. The amendments in ASU No. 2023-07 are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign), and (3) the income tax expense or benefit from continuing operations (separated by federal, state and foreign). This update also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The amendments in ASU No. 2023-09 are effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. We are currently evaluating the impact of the new guidance on the disclosures to our consolidated financial statements.
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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, Revenue from Contracts with Customers.
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Breakdown of Revenues by Geographical Location | The Company generated approximately 97% of its revenue from clients based in the United States for both the three and six months ended December 31, 2023, as follows:
The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided:
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Schedule of Revenue Disaggregated by Pattern of Revenue Recognition | The following table presents the breakdown of the Company’s revenue by pattern of revenue recognition:
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Schedule of Movement in Deferred Revenue | The movement in the Company's deferred revenue is as follows:
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Accounts Receivable and Significant Clients (Tables) |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net in the accompanying consolidated balance sheets consists of the following:
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Schedule of Activity in Allowance for Credit Losses | Activity in the Company’s allowance for credit losses consists of the following:
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Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Cost and Supplemental Cash Flow Information | The components of lease cost are as follows:
The following table presents supplemental cash flow information related to leases:
The following table presents supplemental noncash information related to leases:
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Schedule of Assets and Liabilities, Leases | The following table presents supplemental balance sheet information related to leases:
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Schedule of Operating Lease Maturity | The following table presents the maturities of our lease liabilities as of December 31, 2023:
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Schedule of Finance Lease Maturity | The following table presents the maturities of our lease liabilities as of December 31, 2023:
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Derivatives (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The following tables show the notional amount and fair value of our foreign exchange cash flow hedging instruments as of December 31, 2023 and June 30, 2023:
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Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consists of the following:
|
Share Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Share-Based Compensation Expense | The following tables summarize the components of share-based compensation expense recognized in the Company’s consolidated statements of comprehensive income, both by line item and by plan:
|
Fair Value (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements on a Recurring Basis | The following is a summary of the Company’s fair value measurements on a recurring basis as of December 31, 2023 and June 30, 2023:
|
Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) by Component | The following table presents changes by component for the three months ended December 31, 2022 and 2023:
The following table presents changes by component for the six months ended December 31, 2022 and 2023:
|
Weighted Average Share Counts (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Computation from Basic to Diluted Earnings Per Share | The following table sets forth the components of the computation from basic to diluted earnings per share for net income for the three and six months ended December 31, 2023 and 2022:
|
Investment in Joint Venture (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Financial Information for Joint Venture | The table below presents our investment in the joint venture:
|
Overview and Summary of Significant Accounting Policies - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2023
USD ($)
segment
|
Dec. 31, 2022
USD ($)
|
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of operating segments | 1 | |||
Number of reportable segments | 1 | |||
Capitalized cost | $ | $ 0.8 | $ 0.0 | $ 1.2 | $ 0.0 |
Revenue from Contracts with Customers - Narrative (Details) |
Dec. 31, 2023 |
---|---|
Minimum | |
Disaggregation of Revenue [Line Items] | |
Notice period for contract termination | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Notice period for contract termination | 120 days |
Revenue from Contracts with Customers - Breakdown of Revenues by Geographical Location (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 132,634 | $ 139,325 | $ 257,243 | $ 267,130 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 128,606 | 135,597 | $ 249,790 | 259,510 |
United States | Revenue from Contract with Customer Benchmark | Geographic Concentration Risk | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of revenues | 97.00% | 97.00% | ||
Other countries | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 4,028 | 3,728 | $ 7,453 | 7,620 |
Onshore (United States) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,911 | 37,423 | 61,447 | 75,600 |
Offshore (Philippines, Pakistan) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 64,910 | 59,292 | 122,269 | 110,448 |
Nearshore (Jamaica, Nicaragua, Honduras) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 37,813 | $ 42,610 | $ 73,527 | $ 81,082 |
Revenue from Contracts with Customers - Revenue Disaggregated by Pattern of Revenue Recognition (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 132,634 | $ 139,325 | $ 257,243 | $ 267,130 |
Services transferred over time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 124,801 | 131,514 | 240,139 | 249,868 |
Services transferred at a point in time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 7,833 | $ 7,811 | $ 17,104 | $ 17,262 |
Revenue from Contracts with Customers - Movement in Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Contract With Customer, Liability [Roll Forward] | ||||
Beginning balance | $ 7,424 | $ 11,329 | $ 7,796 | $ 12,593 |
Revenue recognized | (2,261) | (4,001) | (4,933) | (7,949) |
Revenue deferred | 2,934 | 2,360 | 5,234 | 5,044 |
Ending balance | $ 8,097 | $ 9,688 | $ 8,097 | $ 9,688 |
Accounts Receivable and Significant Clients - Accounts Receivable, Net (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
---|---|---|---|---|---|---|
Receivables [Abstract] | ||||||
Accounts receivable | $ 104,864 | $ 86,484 | ||||
Less: Allowance for credit losses | (117) | $ (131) | (120) | $ (424) | $ (1,191) | $ (1,290) |
Accounts receivable, net | $ 104,747 | $ 86,364 |
Accounts Receivable and Significant Clients - Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 131 | $ 1,191 | $ 120 | $ 1,290 |
Provision for credit losses | 13 | 136 | 24 | 138 |
Reversal of provision for credit losses | (18) | (21) | (18) | (21) |
Uncollectible receivables written off | (11) | (951) | (11) | (951) |
Effect of foreign exchange | 2 | 69 | 2 | (32) |
Ending balance | $ 117 | $ 424 | $ 117 | $ 424 |
Accounts Receivable and Significant Clients - Narrative (Details) |
6 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Client 1 | Revenue from Contract with Customer Benchmark | Customer Concentration Risk | ||
Concentration Risk [Line Items] | ||
Percentage of revenues | 12.90% | 13.50% |
Leases - Narrative (Details) |
Dec. 31, 2023 |
---|---|
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease term of contract | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease term of contract | 15 years |
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Leases [Abstract] | ||||
Operating lease cost | $ 4,992 | $ 5,589 | $ 9,878 | $ 10,873 |
Variable lease cost | 785 | 1,146 | 1,566 | 2,201 |
Total operating lease cost | 5,777 | 6,735 | 11,444 | 13,074 |
Amortization of right of use assets | 114 | 89 | 214 | 169 |
Interest on lease liabilities | 47 | 24 | 90 | 43 |
Total finance lease cost | $ 161 | $ 113 | $ 304 | $ 212 |
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating lease assets | $ 69,190 | $ 70,919 |
Operating lease liabilities, current | 13,608 | 13,036 |
Operating lease liabilities, non-current | 62,406 | 64,854 |
Total operating lease liabilities | 76,014 | 77,890 |
Finance lease assets, net | 944 | 929 |
Finance lease liabilities, current | 441 | 361 |
Finance lease liabilities, non-current | 560 | 600 |
Total lease liabilities | $ 1,001 | $ 961 |
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
6 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
|
Leases [Abstract] | |||
Cash paid for amounts included in the measurement of lease liabilities | $ 6,451 | $ 7,108 | |
Operating cash flows paid for interest portion of finance leases | 90 | 43 | |
Financing cash flows paid for principal portion of finance leases | 204 | 266 | |
Right-of-use assets obtained in exchange for lease obligations | |||
Operating leases | 4,622 | 10,023 | |
Finance leases | $ 218 | $ 294 | |
Weighted average remaining lease term (in years) | |||
Operating leases | 5 years 4 months 24 days | 5 years 8 months 12 days | |
Finance leases | 2 years 2 months 12 days | 2 years 7 months 6 days | |
Weighted average discount rate | |||
Operating leases | 10.10% | 9.20% | |
Finance leases | 19.80% | 13.40% |
Leases - Maturities of Operating and Finance Lease Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|
Operating Leases | ||
2024-remainder of year | $ 9,935 | |
2025 | 18,479 | |
2026 | 17,141 | |
2027 | 16,953 | |
2028 | 14,098 | |
Thereafter | 23,906 | |
Total undiscounted lease payments | 100,512 | |
Less: liability accretion | (24,498) | |
Total lease liabilities | 76,014 | $ 77,890 |
Finance Leases | ||
2024-remainder of year | 302 | |
2025 | 539 | |
2026 | 324 | |
2027 | 58 | |
2028 | 0 | |
Thereafter | 0 | |
Total undiscounted lease payments | 1,223 | |
Less: liability accretion | (222) | |
Total lease liabilities | $ 1,001 | $ 961 |
Derivatives - Fair Value Cash Flow Hedging (Details) - Foreign Exchange Contract $ in Thousands |
Dec. 31, 2023
USD ($)
|
Jun. 30, 2023
USD ($)
|
---|---|---|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 32,694 | |
Fair value, asset (liability) | $ 63 | $ (100) |
Minimum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency rate | 52.50 | |
Maximum | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Foreign currency rate | 57.60 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Jun. 30, 2023 |
---|---|---|
Schedule of Debt [Line Items] | ||
Finance leases | $ 1,001 | $ 961 |
Total debt | 1,001 | 1,013 |
Less: Current maturities of long-term debt and finance leases | (441) | (413) |
Total long-term debt | 560 | 600 |
PNC Credit Facility | Revolving Credit Facility | ||
Schedule of Debt [Line Items] | ||
Long-Term Debt | $ 0 | $ 52 |
Debt - Narrative (Details) $ in Millions |
Dec. 31, 2023
USD ($)
|
---|---|
Revolving Credit Facility | PNC Credit Facility | |
Schedule of Debt [Line Items] | |
Borrowing available | $ 80.0 |
Warrant - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
Nov. 13, 2017 |
|
Equity [Abstract] | ||||||
Term of warrants outstanding | 10 years | |||||
Number of shares called by warrants (in shares) | 1,674,017 | |||||
Percent of fully diluted equity represented | 10.00% | |||||
Exercise price per share (in dollars per share) | $ 9.42 | |||||
Vesting period | 7 years 6 months | |||||
Number of warrants vested (in shares) | 1,004,410 | 1,004,410 | 1,004,410 | |||
Warrant contra revenue | $ 300 | $ 300 | $ 594 | $ 596 |
Share Based Compensation - Narrative (Details) $ in Millions |
6 Months Ended |
---|---|
Dec. 31, 2023
USD ($)
| |
Share-Based Payment Arrangement [Abstract] | |
Unrecognized compensation expense | $ 6.9 |
Weighted average period | 3 years 3 months 18 days |
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||||
Provision for income tax expense | $ (1,273) | $ (2,019) | $ (2,661) | $ (3,066) |
Effective income tax rate reconciliation, percent | 17.30% | 17.90% | 16.50% | 16.30% |
Income tax holiday, aggregate dollar amount | $ 1,200 | $ 900 | $ 2,600 | $ 1,800 |
Reduction in income tax expense (in dollars per share) | $ 0.07 | $ 0.05 | $ 0.14 | $ 0.10 |
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 18, 2023 |
|
Equity [Abstract] | ||||
Share repurchase program, authorized amount | $ 30,000 | |||
Shares repurchased (in shares) | 488,803 | 623,327 | 17,558 | |
Shares repurchased | $ 8,390 | $ 10,434 | $ 276 | |
Share repurchase program, remaining authorized amount | $ 19,600 | $ 19,600 |
Weighted Average Share Counts (Details) - shares shares in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Earnings Per Share [Abstract] | ||||
Shares used in basic earnings per share calculation (in shares) | 17,885 | 18,149 | 18,084 | 18,154 |
Effect of dilutive securities: | ||||
Employee share-based compensation (in shares) | 95 | 223 | 104 | 168 |
Warrant (in shares) | 460 | 488 | 479 | 437 |
Total effects of dilutive securities (in shares) | 555 | 711 | 583 | 605 |
Shares used in dilutive earnings per share calculation (in shares) | 18,440 | 18,860 | 18,667 | 18,759 |
Shares considered anti-dilutive using the treasury method (in shares) | (527) | (349) | (512) | (408) |
Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Jun. 30, 2023 |
|
Related Party Transaction [Line Items] | |||||
Revenue | $ 132,634 | $ 139,325 | $ 257,243 | $ 267,130 | |
Accounts receivable | 129 | 129 | $ 43 | ||
Accounts payable | 54 | 54 | 2,314 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 20 | $ 10 | 30 | $ 30 | |
Accounts receivable | 100 | 100 | 40 | ||
Accounts payable | $ 50 | $ 50 | $ 2,300 |
Investment in Joint Venture - Narrative (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
Jun. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
Jun. 30, 2022 |
---|---|---|---|---|---|---|
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment | $ 370 | $ 385 | $ 372 | $ 380 | $ 384 | $ 382 |
Lake Ball, LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Ownership interest in joint venture | 47.50% |
Investment in Joint Venture - Summarized Financial Information (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Increase (Decrease) In Equity Method Investment [Roll Forward] | ||||
Beginning balance | $ 385 | $ 384 | $ 372 | $ 382 |
Dividends received | (270) | (177) | (527) | (327) |
Share of profit | 255 | 173 | 525 | 325 |
Ending balance | $ 370 | $ 380 | $ 370 | $ 380 |
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