Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenues

Disaggregation of revenues

The tables below present disaggregated revenues from contracts with customer by customer location, industries and contract-types. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. The Company has a single reportable segment for the six months ended June 30, 2023 and 2022.

The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon billed client location. Substantially all of the revenue in our North America region relates to operations in the United States.

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Customer Location	(in thousands)
North America	$	61,944	$	63,658	$	125,893	$	121,267
Europe	15,251		13,596		31,145		27,331
Other	147		81		384		147
Total Revenues	$	77,342	$	77,335	$	157,422	$	148,745

The following table shows the disaggregation of the Company’s revenues by main vertical markets:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Vertical	(in thousands)
Retail	$	26,032	$	25,452	$	51,428	$	48,759
Technology, Media and Telecom	24,096		23,391		50,907		44,835
CPG/Manufacturing(1)	10,872		16,090		23,518		31,069
Finance	6,748		5,049		13,263		9,576
Other	9,594		7,353		18,306		14,506
Total Revenues	$	77,342	$	77,335	$	157,422	$	148,745

__________________________

(1)CPG stands for Consumer Packaged Goods

The following table shows the disaggregation of the Company’s revenues by contract types:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Contract Type	(in thousands)
Time-and-material	$	69,143	$	71,002	$	139,669	$	136,208
Fixed-fee	7,731		6,333		17,285		12,537
Other revenues	468		—		468		—
Total Revenues	$	77,342	$	77,335	$	157,422	$	148,745

Contract balances

A contract asset is a right to consideration that is conditional upon factors other than the passage of time. A contract liability, or deferred revenue, consists of advance payments and billings in excess of revenues recognized. As of June 30, 2023 and December 31, 2022 the Company did not have material contract assets. Contract liabilities were $0.4 million and $1.1 million as of June 30, 2023 and December 31, 2022, respectively.

Remaining performance obligation

ASC 606 “Revenue from Contracts with Customers” requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of June 30, 2023 and December 31, 2022. This disclosure is not required for:

1)contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty,

2)contracts for which the Company recognizes revenues based on the right to invoice for services performed,

3)variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or

4)variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property.

All of the Company’s contracts met one or more of these exemptions as of June 30, 2023 and December 31, 2022.

Customers concentration

The following table shows the amount of revenue derived from each customer exceeding 10% of the Company’s revenue:

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Customer 1	14.0	%	11.9	%	13.9	%	11.6	%
Customer 2	n/a		11.1	%	n/a		10.7	%

During the three and six months ended June 30, 2023 the Company recorded revenues from its related parties of $2.3 million and $4.0 million, respectively. During the same periods of 2022 the Company recorded revenue from related parties of $1.4 million and $2.6 million, respectively.

The following table shows number of customers exceeding 10% of the Company’s billed and unbilled receivable balances:

	As of
	June 30, 2023	December 31, 2022
Accounts receivable	1	2
Unbilled receivable	2	2

As of June 30, 2023 and December 31, 2022 accounts receivable from related parties were $1.2 million and $0.9 million, respectively.