Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-33089 | ||
Entity Registrant Name | EXLSERVICE HOLDINGS, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-0572194 | ||
Entity Address, Address Line One | 320 Park Avenue, | ||
Entity Address, Address Line Two | 29th Floor, | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10022 | ||
City Area Code | 212 | ||
Local Phone Number | 277-7100 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | EXLS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,754,716,854 | ||
Entity Common Stock, Shares Outstanding | 33,300,643 | ||
Documents Incorporated by Reference | Part III incorporates information from certain portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission within 120 days after the fiscal year end of December 31, 2022. | ||
Entity Central Index Key | 0001297989 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | New York, New York |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 118,669 | $ 135,337 |
Short-term investments | 179,027 | 179,430 |
Restricted cash | 4,897 | 6,174 |
Accounts receivable, net | 259,222 | 194,232 |
Other current assets | 50,979 | 62,971 |
Total current assets | 612,794 | 578,144 |
Property and equipment, net | 82,828 | 86,008 |
Operating lease right-of-use assets | 55,347 | 76,692 |
Restricted cash | 2,055 | 2,299 |
Deferred tax assets, net | 55,791 | 21,404 |
Intangible assets, net | 64,819 | 81,082 |
Goodwill | 405,637 | 403,902 |
Long-term investments | 34,779 | 3,190 |
Other assets | 32,069 | 30,183 |
Total assets | 1,346,119 | 1,282,904 |
Current liabilities: | ||
Accounts payable | 7,789 | 5,647 |
Current portion of long-term borrowings | 30,000 | 260,016 |
Deferred revenue | 18,782 | 20,000 |
Accrued employee costs | 108,100 | 114,285 |
Accrued expenses and other current liabilities | 95,352 | 76,350 |
Current portion of operating lease liabilities | 14,978 | 18,487 |
Income taxes payable, net | 2,945 | 901 |
Total current liabilities | 277,946 | 495,686 |
Long-term borrowings, less current portion | 220,000 | |
Operating lease liabilities, less current portion | 48,155 | 68,506 |
Deferred tax liabilities, net | 547 | 965 |
Other non-current liabilities | 41,292 | 24,591 |
Total liabilities | 587,940 | 589,748 |
Commitments and contingencies (Refer to Note 25) | ||
ExlService Holdings, Inc. Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 15,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $0.001 par value; 100,000,000 shares authorized, 39,987,976 shares issued and 33,234,444 shares outstanding as of December 31, 2022 and 39,508,340 shares issued and 33,291,482 shares outstanding as of December 31, 2021 | 40 | 40 |
Additional paid-in capital | 445,108 | 395,742 |
Retained earnings | 899,105 | 756,137 |
Accumulated other comprehensive loss | (144,143) | (89,474) |
Total including shares held in treasury | 1,200,110 | 1,062,445 |
Less: 6,753,532 shares as of December 31, 2022 and 6,216,858 shares as of December 31, 2021, held in treasury, at cost | (441,931) | (369,289) |
Stockholders' equity attributable to parent, total | 758,179 | 693,156 |
Total liabilities and stockholders’ equity | $ 1,346,119 | $ 1,282,904 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 39,987,976 | 39,508,340 |
Common stock, shares outstanding (in shares) | 33,234,444 | 33,291,482 |
Held in treasury at cost (in shares) | 6,753,532 | 6,216,858 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Statement [Abstract] | ||||
Revenues, net | $ 1,412,044 | $ 1,122,293 | $ 958,434 | |
Cost of revenues | [1] | 896,595 | 690,934 | 623,936 |
Gross profit | [1] | 515,449 | 431,359 | 334,498 |
Operating expenses: | ||||
General and administrative expenses | 169,016 | 142,040 | 113,891 | |
Selling and marketing expenses | 97,989 | 84,306 | 60,123 | |
Depreciation and amortization expense | 56,282 | 49,132 | 50,462 | |
Total operating expenses | 323,287 | 275,478 | 224,476 | |
Income from operations | 192,162 | 155,881 | 110,022 | |
Foreign exchange gain, net | 6,199 | 4,313 | 4,432 | |
Interest expense | (8,252) | (7,561) | (11,190) | |
Other income/(loss), net | (10) | 6,773 | 12,065 | |
Loss on settlement of convertible notes | 0 | (12,845) | 0 | |
Total before tax | 190,099 | 146,561 | 115,329 | |
Income tax expense | 47,565 | 31,850 | 25,626 | |
Income before earnings from equity affiliates | 142,534 | 114,711 | 89,703 | |
(Gain)/loss from equity-method investment | 434 | 47 | (227) | |
Net income attributable to ExlService Holdings, Inc. stockholders | $ 142,968 | $ 114,758 | $ 89,476 | |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||
Basic (in dollars per share) | $ 4.29 | $ 3.42 | $ 2.61 | |
Diluted (in dollars per share) | $ 4.23 | $ 3.35 | $ 2.59 | |
Weighted-average number of shares used in computing earnings per share attributable to ExlService Holdings, Inc. stockholders: | ||||
Basic (in shares) | 33,330,317 | 33,549,275 | 34,273,388 | |
Diluted (in shares) | 33,833,858 | 34,244,478 | 34,555,164 | |
[1]Exclusive of depreciation and amortization expense. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 142,968 | $ 114,758 | $ 89,476 | |
Other comprehensive income/(loss): | ||||
Unrealized gain/(loss) on cash flow hedges | (27,333) | 4,663 | 12,665 | |
Loss on net investment hedges | 0 | (1,134) | 0 | |
Foreign currency translation loss | (47,734) | (11,134) | (540) | |
Retirement benefits | 2,574 | (558) | (2,401) | |
Reclassification adjustments: | ||||
Gain on cash flow hedges | [1] | 1,295 | (9,264) | (801) |
Retirement benefits | [2] | 592 | 709 | 394 |
Income tax effects relating to above | [3] | 15,937 | 2,228 | 591 |
Total other comprehensive income/(loss) | (54,669) | (14,490) | 9,908 | |
Total comprehensive income | $ 88,299 | $ 100,268 | $ 99,384 | |
[1]These are reclassified to net income and are included in cost of revenues, operating expenses and interest expense, as applicable in the consolidated statements of income. Refer to Note 17 - Derivatives and Hedge Accounting to the consolidated financial statements.[2]These are reclassified to net income and are included in other income/(loss), net in the consolidated statements of income. Refer to Note 20 - Employee Benefit Plans to the consolidated financial statements.[3]These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation loss. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2019 | 38,480,654 | |||||
Beginning balance at Dec. 31, 2019 | $ 670,001 | $ 39 | $ 391,240 | $ 551,903 | $ (84,892) | $ (188,289) |
Treasury stock, beginning balance (in shares) at Dec. 31, 2019 | 4,295,413 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 487,398 | |||||
Stock issued against stock-based compensation plans | 1,501 | $ 0 | 1,501 | |||
Stock-based compensation | $ 28,235 | 28,235 | ||||
Acquisition of treasury stock (in shares) | (1,085,153) | (1,113,205) | ||||
Acquisition of treasury stock | $ (79,949) | $ (79,949) | ||||
Issuance of treasury stock | 0 | |||||
Other comprehensive loss | 9,908 | 9,908 | ||||
Net income | 89,476 | 89,476 | ||||
Treasury stock, ending balance (in shares) at Dec. 31, 2020 | 5,408,618 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 38,968,052 | |||||
Ending balance at Dec. 31, 2020 | 719,172 | $ 39 | 420,976 | 641,379 | (74,984) | $ (268,238) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 540,288 | |||||
Stock issued against stock-based compensation plans | 710 | $ 1 | 709 | |||
Stock-based compensation | $ 38,621 | 38,621 | ||||
Acquisition of treasury stock (in shares) | (1,087,325) | (1,118,634) | ||||
Acquisition of treasury stock | $ (118,357) | $ (118,357) | ||||
Issuance of treasury stock | 36,742 | 19,436 | $ 17,306 | |||
Issuance of treasury stock (in shares) | 310,394 | |||||
Settlement of convertible notes | (84,000) | (84,000) | ||||
Other comprehensive loss | (14,490) | (14,490) | ||||
Net income | $ 114,758 | 114,758 | ||||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | 6,216,858 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 33,291,482 | 39,508,340 | ||||
Ending balance at Dec. 31, 2021 | $ 693,156 | $ 40 | 395,742 | 756,137 | (89,474) | $ (369,289) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock issued against stock-based compensation plans (in shares) | 479,636 | |||||
Stock issued against stock-based compensation plans | 0 | |||||
Stock-based compensation | $ 49,366 | 49,366 | ||||
Acquisition of treasury stock (in shares) | (503,858) | (536,674) | ||||
Acquisition of treasury stock | $ (72,642) | $ (72,642) | ||||
Other comprehensive loss | (54,669) | (54,669) | ||||
Net income | $ 142,968 | 142,968 | ||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 6,753,532 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 33,234,444 | 39,987,976 | ||||
Ending balance at Dec. 31, 2022 | $ 758,179 | $ 40 | $ 445,108 | $ 899,105 | $ (144,143) | $ (441,931) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 142,968 | $ 114,758 | $ 89,476 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 56,102 | 49,656 | 50,513 |
Stock-based compensation expense | 49,366 | 38,621 | 28,235 |
Amortization of operating lease right-of-use assets | 21,783 | 26,326 | 27,146 |
Unrealized (gain)/loss on investments | (1,209) | 5,139 | (7,174) |
Unrealized foreign currency exchange (gain)/loss, net | (16,643) | (3,821) | 402 |
Deferred income tax (benefit)/expense | (19,552) | (20,326) | 2,697 |
Allowance/(reversal) for expected credit losses | 683 | (464) | 297 |
Loss on settlement of convertible notes | 0 | 12,845 | 0 |
Fair value changes in contingent consideration | 8,250 | 0 | 0 |
Amortization of non-cash interest expense related to convertible notes | 0 | 1,795 | 2,616 |
Others, net | 510 | 168 | (315) |
Change in operating assets and liabilities, net of effects of acquisitions: | |||
Accounts receivable | (68,121) | (37,684) | 24,696 |
Other current assets | (7,709) | (1,179) | (5,133) |
Income taxes payable, net | 8,779 | (12,062) | 696 |
Other assets | (10,723) | 227 | 6,505 |
Accounts payable | 2,385 | (614) | 243 |
Deferred revenue | 2,473 | (12,733) | 18,222 |
Accrued employee costs | 5,551 | 46,475 | 335 |
Accrued expenses and other liabilities | 14,475 | 2,934 | (9,895) |
Operating lease liabilities | (23,227) | (25,674) | (26,589) |
Net cash provided by operating activities | 166,141 | 184,387 | 202,973 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (44,836) | (37,248) | (42,224) |
Proceeds from sale of property and equipment | 266 | 1,300 | 916 |
Business acquisition (net of cash and cash equivalents acquired) | (3,872) | (76,831) | 0 |
Purchases of investments | (212,607) | (96,011) | (102,462) |
Proceeds from redemption of investments | 164,503 | 94,520 | 126,154 |
Investment in equity affiliate | 0 | 0 | (700) |
Net cash used for investing activities | (96,546) | (114,270) | (18,316) |
Cash flows from financing activities: | |||
Principal payments of finance lease liabilities | (142) | (201) | (249) |
Proceeds from borrowings | 35,000 | 300,000 | 110,000 |
Repayments of borrowings | (45,000) | (329,031) | (120,867) |
Acquisition of treasury stock | (72,642) | (118,357) | (79,949) |
Proceeds from exercise of stock options | 0 | 710 | 1,501 |
Proceeds from ESPP contribution | 1,060 | 0 | 0 |
Net cash used for financing activities | (81,724) | (146,879) | (89,564) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (6,060) | (4,947) | 3,382 |
Net (decrease)/increase in cash, cash equivalents and restricted cash | (18,189) | (81,709) | 98,475 |
Cash, cash equivalents and restricted cash at the beginning of the period | 143,810 | 225,519 | 127,044 |
Cash, cash equivalents and restricted cash at the end of the period | 125,621 | 143,810 | 225,519 |
Cash paid during the period for: | |||
Interest | 8,189 | 6,589 | 7,626 |
Income taxes, net of refunds | 55,592 | 49,825 | 20,571 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Settlement of portion of convertible notes through issuance of treasury stock | 0 | 36,742 | 0 |
Assets acquired under finance lease | $ 312 | $ 71 | $ 45 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization ExlService Holdings, Inc. (“ExlService Holdings”) is organized as a corporation under the laws of the state of Delaware. ExlService Holdings, together with its subsidiaries and affiliates (collectively, the “Company”), is a leading data analytics and digital operations and solutions company that partners with clients to improve business outcomes and unlock growth. By bringing together deep domain expertise with robust data, powerful analytics, cloud, artificial intelligence and machine learning, the Company creates agile, scalable solutions and executes complex operations for the world’s leading corporations in industries including insurance, healthcare, banking and financial services, media, and retail, among others. The Company’s data-led value creation framework enables better and faster decision making, leveraging its end-to-end data and analytics capabilities to drive improved business outcomes, and re-designing of operating models to integrate advanced technology into operational workflows. The Company embeds digital operations and solutions into clients’ businesses and introduces its data led approach to transform operations. The Company’s clients are located principally in the United States of America (“U.S.”) and the United Kingdom (“U.K.”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Preparation and Principles of Consolidation The consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”). The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings, Inc. and all of its subsidiaries and includes the Company's share in the results of its associates. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with U.S. GAAP. (b) Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, recoverability of dues from statutory authorities, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based awards, and debt instruments, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, depreciation and amortization periods, and recoverability of long-lived assets, goodwill and intangibles. (c) Foreign Currency Translation The functional currency of each entity in the Company is the currency of the primary economic environment in which it operates. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency at exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement are recorded in the Company's consolidated statements of income. The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. Resulting translation adjustments are included in “Accumulated other comprehensive income/(loss)” in the consolidated balance sheets. (d) Revenue Recognition Revenue is recognized when services are provided to the Company's customers, in an amount that reflects the consideration which the Company expect to be entitled to in exchange for the services provided. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes value added tax, business tax, any applicable discounts and amounts collected on behalf of third parties. Reimbursements of out-of-pocket expenses are included as a part of revenue. Nature of Services The Company derives its revenues from digital operations and solutions and analytics services. The Company provides digital operations and solutions and analytics services helping businesses enhance revenue growth and improve profitability. Type of Contracts and Basis of Recognition i. a) Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. b) Revenues from arrangements involving subcontracting, either in part or whole of the assigned work, are recognized after the Company’s assessment of “Principal versus agent considerations.” The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenues are recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. ii. Revenues for the Company’s fixed-price contracts, which include business support services provided on a fixed price basis or implementation of applications or solutions, are recognized considering costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations. Incurred cost represents work performed, which corresponds with, and thereby reasonably reflects transfer of control to the client. The use of this method requires significant judgment to estimate the stage of completion and/or cost required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed and resources engaged. The Company regularly monitors these estimates throughout the execution of the project and records changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. iii. Revenue from the Company’s software and related services contracts, which are not significant, are primarily related to annual maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. The Company recognizes revenue from distinct perpetual licenses upfront at a point in time when the software is made available to the client, whereas for a combined software license and services performance obligation, revenue is recognized over the period that the services are performed. Revenue from distinct subscription based licenses is recognized over the period of service performed. Revenue from any associated maintenance or ongoing support services is recognized over the term of the contract. iv. Revenues from reimbursement optimization services having contingent fee arrangements are recognized by the Company at the point in time when a performance obligation is satisfied, which is when it identifies an overpayment claim. In such contracts, the Company’s consideration is contingent upon the actual collections made by its customers and net of any subsequent retraction claims. Based on guidance on “variable consideration” in Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), the Company uses its historical experience and projections to determine the expected recoveries from its customers and recognizes revenue based upon such expected recoveries. Any adjustment required due to change in estimates are recorded in the period in which such change is identified. Modification to Contracts The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at a standalone selling price. Services added that are distinct and at standalone selling price are accounted on a prospective basis either as a separate contract, or as a termination of existing contract and creation of a new contract. Arrangements with Multiple Performance Obligations The Company’s contracts with customers do not generally bundle different services together except for software and related services contracts, which are not significant, involving implementation services and post contract maintenance services. In such software and related services contracts, revenue is recognized based upon the transaction price allocated to each performance obligation based on the relative standalone selling price. Allocation of Transaction Price to Performance Obligations The transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable Consideration Variability in the transaction price arises primarily due to service level agreements and volume discounts. The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period. The Company believes that the expected value method is most appropriate for determining the variable consideration since the Company has large number of contracts with similar nature of transactions/services. Unbilled Receivables Unbilled receivables represents revenues recognized for services rendered between the last billing date and the balance sheet date. Unbilled receivables also include revenues recognized from reimbursement optimization services where the Company identifies an overpayment claim. In such contracts, Company’s consideration is contingent upon and collectable only when the actual collections are made by its customers. Based on guidance on “variable consideration” in ASC Topic 606, Company use its historical experience and projections to determine the expected recoveries from its customers and recognize revenue and receivables based upon such expected recoveries. Accordingly, the amounts for which services have been performed and for which invoices have not been issued to customers on the balance sheet date, (i.e. unbilled receivables) are presented under accounts receivable, net. Deferred Revenue and Contract Fulfillment Costs The Company has contract liabilities (deferred revenue) consisting of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example where the Company does not have an enforceable contract. Further, the Company also defers revenues attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligations. Revenues related to such transition activities are classified under “Deferred revenue” and “Other non-current liabilities” in the Company’s consolidated balance sheets and are recognized ratably over the period during which the related services are performed. Costs related to such transition activities are contract fulfillment costs, and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets, and are recognized over the expected duration of the relationship with customers, under “Cost of revenues” in the consolidated statements of income. Contract Acquisition Costs Direct and incremental costs incurred for acquiring contracts, such as sales commissions are contract acquisition costs and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets. Such costs are amortized over the expected duration of the relationship with customers and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payments Made to Customers Upfront payments, in nature of deal signing discount or deal signing bonuses made to customers are contract assets and classified under “Other current assets and Other assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues. Out-of-Pocket Expenses Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Payment terms All contracts entered into by the Company specify the payment terms and are defined for each contract separately. Usual payment terms range between 30-60 days. The Company does not have any extended payment terms clauses in existing contracts. Remaining Performance Obligations The Company does not disclose the value of remaining performance obligations as a result of applying the practical expedient provided in ASC Topic 606, for contracts that meet any of the following criteria: i. Contracts with an original expected length of one year or less as determined under ASC Topic 606, ii. Contracts for which Company recognize revenue based on the right to invoice for service performed. (e) Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market funds and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash includes any cash and cash equivalents that are legally restricted as to withdrawal or usage. The Company invests for a term of up to three months in money market funds, which invest in instruments of various maturities in the United States. These investments are accounted for in accordance with the fair value option under ASC Topic 825, Financial Instruments . The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold and is included in other income/(loss), net. For purposes of the statements of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents. (f) Short-Term and Long-Term Investments The Company’s short-term investments consist of investments in mutual funds and those term deposits with more than three months of original maturity and less than twelve months of remaining maturity as of the reporting date, while long-term investments consist of term deposits with more than twelve months of remaining maturity as of the reporting date and investments in equity affiliate. The Company’s investments in term deposits with financial institutions are measured and recognized at amortized cost. Interest earned on such investments is included in other income/(loss), net. The Company’s mutual fund investments are in debt funds invested in India. These investments are accounted for in accordance with the fair value option under ASC Topic 825, Financial Instruments . The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold and is included in other income/(loss), net. Investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance for an investee is increased or decreased for cash contribution and distributions to or from, respectively . (g) Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are recorded net of allowances for expected credit losses. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future. Accounts receivable balances are written-off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. (h) Property and Equipment Property and equipment are stated at cost, which is generally comprised of the purchase price for such property or equipment, non-refundable duties and taxes, but excludes any discounts and/or rebates, less accumulated depreciation and impairment. Equipment held under finance leases are capitalized at the commencement of the lease at an amount equal to the lease liability, adjusted for any lease prepayments, initial direct costs and lease incentives, which usually approximate the fair value of the underlying asset. Expenditures for replacements and improvements are capitalized, if they enhance the production capacity and future benefits whereas the costs of maintenance and repairs are charged to earnings as incurred. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period, net of impairment, if any, are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Property and equipment which are abandoned and disposed other than by sale, are assessed for revision of their useful life, thereby revising the future depreciation to reflect the use of property and equipment over the remaining shortened life. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The estimated useful life have been disclosed in Note 9 - Property and Equipment, net to the consolidated financial statements. (i) Software Development Costs The Company capitalizes certain costs related to the development or enhancements to existing software products to be sold, leased or otherwise marketed and / or used for internal-use. The Company begins to capitalize costs to develop or enhance software when planning stage efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred and recorded within “General and administrative expenses” in the Company’s consolidated statements of income. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized. Implementation costs in cloud computing arrangements (“CCAs”), such as software as a service and other hosting arrangements are evaluated to ascertain if the arrangement includes a license to internal-use software. If a CCA does not provide a contractual right to the Company to take possession of the software at any time during the hosting period without significant penalty, and it is not feasible to either run the software on the Company’s own hardware, then implementation costs incurred are accounted for as a service contract. In case of the existence of such a contractual right to take possession of the software and the Company is able to run the software on its own hardware, then such implementation costs are capitalized as software development costs. Annual amortization of internally developed software products meant for sale, lease or otherwise marketing is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be up to 5 years from the date the product became available for use. Annual amortization of internally developed software products meant for internal-use is based on the straight-line method over the estimated useful lives of the internally developed software products. The Company amortizes capitalized implementation costs in a CCA over the life of the service contract. (j) Business Combinations, Goodwill and Other Intangible Assets ASC Topic 805, Business Combinations, requires that the acquisition method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved, whereby such changes in fair value are recognized in earnings. Under ASC Topic 350, Intangibles - Goodwill and Other , all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. In addition, assets acquired and liabilities assumed including uncertain tax positions and tax-related valuation allowances in connection with business combinations are initially estimated as of the acquisition date. The Company subsequently re-evaluates the assets acquired and liabilities assumed, including additional assets and liabilities identified subsequent to acquisition date, with any adjustments to its preliminary estimates being recorded to goodwill within the measurement period (up to one year from the acquisition date). Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased in a business combination. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. The Company undertakes studies to determine the fair values of assets and liabilities acquired and allocate purchase consideration to assets and liabilities, including property and equipment, goodwill and other identifiable intangibles. The Company examines the carrying value of the goodwill annually in the fourth quarter, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. The Company tests for goodwill impairment at the reporting unit level, as that term is defined in U.S. GAAP. Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for discussion of the Company's goodwill impairment testing. The Company adopted Accounting Standard Update (“ASU”) No. 2017-04, Simplifying the Test for Goodwill Impairment, effective January 1, 2018 in conjunction with our goodwill impairment assessment. The goodwill quantitative impairment test involves a comparison of the fair value of a reporting unit with its carrying amount. The Company estimates the fair value of a reporting unit using a combination of the income approach, using discounted cash flow analysis (“DCF model,”) and the market approach, using market multiples for reporting units whereby the fair value is not substantially in excess of carrying value. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. The discount rate is based on judgment of the specific risk inherent in the future cash flows of the respective reporting units. The variables within the discount rate, many of which are outside of the Company’s control, provide the Company’s best estimate of all assumptions applied within the DCF model. Under the market approach, the Company estimates fair value based on market multiples of revenues and earnings derived from comparable publicly-traded companies with characteristics similar to the reporting unit and comparable market transactions. The market approach is used to corroborate the results of the income approach. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Determining fair value requires the use of estimates and exercise of significant judgment, including assumptions about appropriate discount rates, perpetual growth rates, amount and timing of expected future cash flows, market multiples of revenues and earnings and comparable market transactions. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the estimates and judgments described above could change in future periods. There can be no assurance that operations will achieve the future cash flows reflected in the projections. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss shall be recognized, in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Useful Lives Customer relationships 7-15 Developed technology 3-10 Non-compete agreements 4 Trade names and trademarks 2-10 (k) Impairment of Long-lived Assets Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. (l) Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments to mitigate the exposure from risk of foreign currency and interest rate fluctuations. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted transactions denominated in certain foreign currencies, and interest rate swaps to hedge cash flow risks from its revolving credit facility having variable interest rate obligations. These contracts adhere to the Company’s treasury operations’ objectives and policies to qualify as cash flow hedges, and are with counterparties that are highly rated financial institutions. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss) (“AOCI”), net of tax. The resultant foreign exchange gain/(loss) upon settlement of cash flow hedges of forecasted transactions are recorded in the consolidated st |
Segment and Geographical Inform
Segment and Geographical Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | Segment and Geographical Information The Company is a provider of data analytics and digital operations and solutions. The Company manages and reports financial information through its four reportable segments: Insurance, Healthcare, Analytics and Emerging Business, which reflects how management reviews financial information and makes operating decisions. These business units develop client-specific solutions, build capabilities, maintain a unified go-to-market approach and are integrally responsible for service delivery, customer satisfaction, growth and profitability. The chief operating decision maker (“CODM”) generally reviews financial information such as revenues, cost of revenues and gross profit, disaggregated by the operating segments to allocate an overall budget among the operating segments. The Company does not allocate and therefore the CODM does not evaluate, certain operating expenses, interest expense or income taxes by segment. Many of the Company’s assets are shared by multiple operating segments. The Company manages these assets on a total Company basis, not by operating segment, and therefore asset information and capital expenditures by operating segment are not presented. The December 2021 and June 2022 acquisitions of Clairvoyant AI, Inc. (“Clairvoyant”) and Inbound Media Group, LLC (“Inbound”), respectively, are both included in the Analytics reportable segment. Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for further details. Revenues and cost of revenues for the years ended December 31, 2022, 2021 and 2020, respectively, for each of the reportable segments, are as follows: Year ended December 31, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 448,704 $ 97,351 $ 218,638 $ 647,351 $ 1,412,044 Cost of revenues (1) 287,734 70,951 128,017 409,893 896,595 Gross profit (1) $ 160,970 $ 26,400 $ 90,621 $ 237,458 $ 515,449 Operating expenses 323,287 Foreign exchange gain, net, interest expense and other loss, net (2,063) Income tax expense 47,565 Gain from equity-method investment 434 Net income $ 142,968 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 381,999 $ 112,386 $ 167,236 $ 460,672 $ 1,122,293 Cost of revenues (1) 239,529 69,760 91,737 289,908 690,934 Gross profit (1) $ 142,470 $ 42,626 $ 75,499 $ 170,764 $ 431,359 Operating expenses 275,478 Loss on settlement of convertible notes, foreign exchange gain, net, interest expense and other income, net (9,320) Income tax expense 31,850 Gain from equity-method investment 47 Net income $ 114,758 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 341,770 $ 101,315 $ 152,670 $ 362,679 $ 958,434 Cost of revenues (1) 231,884 73,143 89,459 229,450 623,936 Gross profit (1) $ 109,886 $ 28,172 $ 63,211 $ 133,229 $ 334,498 Operating expenses 224,476 Foreign exchange gain, net, interest expense and other income, net 5,307 Income tax expense 25,626 Loss from equity-method investment 227 Net income $ 89,476 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2022 2021 2020 Digital operations and solutions (1) $ 764,693 $ 661,621 $ 595,755 Analytics services 647,351 460,672 362,679 Revenues, net $ 1,412,044 $ 1,122,293 $ 958,434 (1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above. The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2022 2021 2020 Revenues, net United States $ 1,213,477 $ 964,059 $ 814,672 Non-United States United Kingdom 134,630 105,734 88,659 Rest of World 63,937 52,500 55,103 Total Non-United States 198,567 158,234 143,762 Revenues, net $ 1,412,044 $ 1,122,293 $ 958,434 Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows: As of December 31, 2022 December 31, 2021 Long-lived assets United States $ 60,709 $ 50,095 India 50,118 79,604 Philippines 18,406 22,011 Rest of World 8,942 10,990 Long-lived assets $ 138,175 $ 162,700 |
Revenues, net
Revenues, net | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues, net | Revenues, net Refer to Note 3 - Segment and Geographical Information to the consolidated financial statements for revenues disaggregated by reportable segments and geography. Contract balances The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of December 31, 2022 December 31, 2021 Accounts receivable, net $ 259,222 $ 194,232 Contract assets $ 2,768 $ 2,524 Contract liabilities: Deferred revenue (consideration received in advance) $ 17,079 $ 18,247 Consideration received for process transition activities $ 5,423 $ 2,203 Accounts receivable includes $126,027 and $93,336 as of December 31, 2022 and 2021, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables. Contract assets represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented. Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and are included within “Deferred revenues” and “Other non-current liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer. Revenue recognized during the years ended December 31, 2022 and 2021, which was included in the contract liabilities balance at the beginning of the respective periods: Year ended December 31, 2022 2021 Deferred revenue (consideration received in advance) $ 17,964 $ 30,089 Consideration received for process transition activities $ 1,635 $ 1,886 Contract acquisition and fulfillment costs The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Contract Fulfillment Costs Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Opening Balance $ 511 $ 1,027 $ 5,795 $ 5,631 Additions 1,014 277 15,509 3,742 Amortization (430) (793) (7,433) (3,578) Closing Balance $ 1,095 $ 511 $ 13,871 $ 5,795 There was no impairment for contract acquisition and contract fulfillment costs as of December 31, 2022 and 2021. The capitalized costs are amortized over the expected period of benefit of the contract. Allowance for expected credit losses The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future and estimates relating to the possible effects resulting from COVID-19. As of December 31, 2022 December 31, 2021 Accounts receivable, including unbilled receivables $ 260,554 $ 194,805 Less: Allowance for expected credit losses (1,332) (573) Accounts receivable, net $ 259,222 $ 194,232 The movement in “Allowance for expected credit losses” on customer balances was as follows: Year ended December 31, 2022 2021 Opening Balance $ 573 $ 1,189 Additions / (reductions) 815 (496) Reductions due to write-off of Accounts Receivables (60) (129) Translation adjustment 4 9 Closing Balance $ 1,332 $ 573 Concentration of credit risk To reduce the credit risk, the Company conducts ongoing credit evaluations of its customers. No client accounted for more than 10% of accounts receivable, net as of December 31, 2022 and 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income attributable to common stockholders by the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase during each period. Diluted earnings per share is computed using the weighted average number of common shares plus the potentially dilutive effect of common stock equivalents (outstanding stock options, restricted stock, restricted stock units and common stock to be issued under the ESPP) issued and outstanding at the reporting date, and an assumed conversion premium of outstanding convertible notes, using the treasury stock method (as discussed further in the subsequent paragraph). Common stock equivalents that are anti-dilutive are excluded from the computation of weighted average shares outstanding. In 2021, diluted weighted-average shares outstanding was affected by the treatment of the Company’s 3.5% per annum Convertible Senior Notes due October 1, 2024 (the “Notes”). The Company had a choice to settle the Notes in cash, shares or any combination of the two. The Company had the ability to settle the principal balance of the Notes in cash, and as such, the Company applied the treasury stock method. The dilution related to the conversion premium, if any, of the Notes is included in the calculation of diluted weighted-average shares outstanding for the portion of the period until actual settlement and to the extent the issuance is dilutive based on the average stock price during the reporting period being greater than the conversion price of $75. During the third quarter of 2021, the Company settled the Notes by electing a combination of cash and shares of the Company’s common stock and as such included the count of shares issued on settlement in the calculation of basic earnings per share for the portion of the period outstanding. The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2022 2021 2020 Numerators: Net income $ 142,968 $ 114,758 $ 89,476 Denominators: Basic weighted average common shares outstanding 33,330,317 33,549,275 34,273,388 Dilutive effect of share-based awards 503,541 408,693 254,717 Dilutive effect of conversion premium on the Notes — 286,510 27,059 Diluted weighted average common shares outstanding 33,833,858 34,244,478 34,555,164 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 4.29 $ 3.42 $ 2.61 Diluted $ 4.23 $ 3.35 $ 2.59 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 566 10,705 289,061 |
Other Income_(Loss), net
Other Income/(Loss), net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income/(Loss), net | Other Income/(Loss), net Other income/(loss), net consists of the following: Year ended December 31, 2022 2021 2020 Gain on sale and mark-to-market on investments $ 4,907 $ 4,891 $ 9,615 Interest and dividend income 5,229 2,726 2,501 Fair value changes of contingent consideration* (8,250) — — Others, net (1,896) (844) (51) Other income/(loss), net $ (10) $ 6,773 $ 12,065 * Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for further details. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted Cash For the purposes of statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of December 31, 2022 December 31, 2021 December 31, 2020 Cash and cash equivalents $ 118,669 $ 135,337 $ 218,530 Restricted cash (current) 4,897 6,174 4,690 Restricted cash (non-current) 2,055 2,299 2,299 Cash, cash equivalents and restricted cash $ 125,621 $ 143,810 $ 225,519 Restricted cash (current) primarily represents funds held on behalf of clients in dedicated bank accounts. The corresponding liability against the same is included under “Accrued Expenses and other current liabilities.” Restricted cash (non-current) represents amounts on deposit with banks against bank guarantees issued through banks in favor of relevant statutory authorities for equipment imports, deposits for obtaining indirect tax registrations and for demands against pending income tax assessments. These deposits with banks have maturity dates after December 31, 2022. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Investments | Investments Investments consist of the following: As of December 31, 2022 December 31, 2021 Short-term investments Mutual funds $ 110,964 $ 127,551 Term deposits 68,063 51,879 Total Short-term investments $ 179,027 $ 179,430 Long-term investments Term deposits $ 31,341 $ 186 Investment in equity affiliate 3,438 3,004 Total Long-term investments $ 34,779 $ 3,190 |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2022 December 31, 2021 Owned Assets: Network equipment and computers 3-5 $ 130,218 $ 116,023 Software 2-5 88,487 101,884 Leasehold improvements 3-8 42,890 46,401 Office furniture and equipment 3-8 20,211 22,302 Motor vehicles 2-5 605 693 Buildings 30 961 1,070 Land — 629 700 Capital work in progress — 14,459 10,288 298,460 299,361 Less: Accumulated depreciation and amortization (216,132) (213,699) $ 82,328 $ 85,662 Right-of-use assets under finance leases*: Network equipment and computers 82 91 Leasehold improvements 1,013 1,229 Office furniture and equipment 662 787 Motor vehicles 742 578 2,499 2,685 Less: Accumulated depreciation and amortization (1,999) (2,339) $ 500 $ 346 Property and equipment, net $ 82,828 $ 86,008 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. Capital work in progress represents advances paid towards acquisition of property and equipment and costs incurred on internally developed software not yet ready to be placed in service. During the years ended December 31, 2022 and 2021 there were no changes in estimated useful lives of property and equipment during the ordinary course of operations. The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Depreciation and amortization expense $ 39,173 $ 36,354 $ 36,050 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows: Year ended December 31, 2022 2021 2020 Effect of foreign exchange gain/(loss) $ (180) $ 524 $ 51 Internally developed software costs, included under Software, was as follows: As of December 31, 2022 December 31, 2021 Cost $ 31,544 $ 19,289 Less : Accumulated amortization (16,134) (10,226) Internally developed software, net $ 15,410 $ 9,063 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Amortization expense $ 5,958 $ 4,253 $ 4,894 As of December 31, 2022 and 2021, the Company believes no impairment exists because the long-lived asset's future undiscounted net cash flows expected to be generated exceeds its carrying value; however, there can be no assurance that long-lived assets will not be impaired in future periods. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, the asset’s residual value, if any, and estimates relating to the possible effects resulting from COVID-19. It is reasonably possible that the judgments and estimates described above could change in future periods. |
Business Combinations, Goodwill
Business Combinations, Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Business Combinations | Business Combinations, Goodwill and Other Intangible Assets Clairvoyant AI, Inc. On December 16, 2021, the Company, through its wholly owned subsidiary ExlService.com, LLC, completed the acquisition of Clairvoyant, a Delaware corporation, pursuant to an equity securities purchase agreement dated December 16, 2021 (the “Purchase Agreement”). The Company purchased 100% of the issued and outstanding equity securities in Clairvoyant. Clairvoyant is a global technology consulting and services company that helps organizations in their business transformation by maximizing the value of data through actionable insights. It provides data engineering, analytics, machine learning, product engineering, and cloud-based solutions. The acquisition strengthens the Company’s capabilities by adding additional expertise in data engineering and cloud enablement, further supporting its clients in insurance, healthcare, banking and financial services, and retail. The base purchase consideration payable at closing of the acquisition (the “Closing”) was $80,080, excluding cash and cash equivalents acquired, debt and estimated other post-closing adjustments. The Purchase Agreement also allows sellers the ability to earn up to $20,000 of contingent consideration, based on the achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years. The contingent consideration had an estimated fair value of $17,500 and $9,000, as of December 31, 2022 and 2021, respectively, and has been presented as contingent consideration under “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the consolidated statements of income and presented as a part of “Other income/(loss), net.” The Company accounted for the business combination using the acquisition method of accounting. Pursuant to the Company’s business combinations accounting policy, the aggregate purchase consideration for Clairvoyant was allocated to identifiable net tangible and intangible assets based upon their fair values. The excess of the estimated purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for Clairvoyant, the fair values of all identifiable assets and liabilities must be established. The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . During the years ended December 31, 2022 and 2021, the Company recognized measurement period adjustments, which led to increase in goodwill in an amount of $2,229 and $nil, respectively. These adjustments primarily relate to an increase in income tax liabilities of $988 included under “other non-current liabilities” and post-closing purchase adjustments. The fair values of customer relationships were determined by using an “income approach,” specifically the Multi-Period Excess Earnings Method (“MPEEM”). The MPEEM is a specific application of the discounted cash flow method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting Contributory Asset Charges (“CAC”). The principle behind a CAC is that an intangible asset ‘rents’ or ‘leases’ from a hypothetical third party all the assets it requires to produce the cash flows resulting from its development, that each project rents only those assets it needs (including elements of goodwill) and not the ones that it does not need, and that each project pays the owner of the assets a fair return on (and of, when appropriate) the value of the rented assets. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 7 years. The fair values of the developed technology intangible assets were determined by using the “cost approach,” specifically the replacement cost method. In the replacement cost approach, the fair value of an asset is based on the cost of a market participant to reconstruct a substitute asset of comparable utility, adjusted for any obsolescence. The fair value of the asset would include the seller’s expected profit margin in the market and any opportunity costs lost over the period to reconstruct the substitute asset. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years. The goodwill recognized represents the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with the Company’s existing operations. The amount of goodwill recognized from Clairvoyant’s acquisition is not deductible for tax purposes. The goodwill has been assigned to the Company’s Analytics reportable segment based upon the Company’s assessment of nature of services rendered by Clairvoyant. Acquisition-related costs are being expensed as incurred and are included in general and administrative expenses in the consolidated statements of income. The Company recognized acquisition-related costs of $134 and $761 during the years ended December 31, 2022 and 2021, respectively. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Inbound Media Group, LLC On June 10, 2022, the Company, through its wholly owned subsidiary ExlService.com, LLC, entered into an Asset Purchase Agreement to acquire certain assets of Inbound, a Wyoming limited liability company, which is a digital marketing business focused primarily on lead generation in the insurance space, for cash consideration of $1,469 and contingent consideration with an estimated fair value of $1,439 as of the date of acquisition based on the achievement of certain performance goals by Inbound during the 2022 to 2024 calendar years. The contingent consideration had an estimated fair value of $1,189 as of December 31, 2022, and has been presented as contingent consideration under “Other non-current liabilities,” in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the consolidated statements of income and presented as a part of “Other income/(loss), net.” The Company accounted for this business combination using the acquisition method of accounting. Goodwill and intangible assets of $1,992 and $916, respectively, were recognized by the Company as a result of this transaction. The goodwill recognized for this business is deductible for income tax purposes. The acquisition strengthens the Company’s capabilities in digital direct-to-consumer marketing by adding performance marketing, lead generation and customer engagement capabilities to its suite of end-to-end marketing solutions, proprietary data sets and robust consumer analytics. The results of operations of the acquired business and the fair value of the net assets acquired are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance as of January 1, 2021 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ 349,088 Acquisition — — — 55,225 55,225 Currency translation adjustments (71) (11) (328) (1) (411) Balance as of December 31, 2021 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (499) (67) (1,919) (1) (2,486) Balance as of December 31, 2022 $ 49,929 $ 21,875 $ 47,101 $ 286,732 $ 405,637 During the fourth quarter of 2022, the Company performed its annual goodwill quantitative impairment test for those reporting units that had goodwill recorded. Key assumptions used in determining the fair value of the Company’s reporting units were, a long-term revenue growth rate in the terminal year of 3.0%, which was based upon expected long-term inflation rate and real gross domestic product growth over a long-term, and discount rate of up to 10.0%, which vary based upon the risks and uncertainties inherent in each individual reporting unit. Based on the results, the fair value of each of the Company’s reporting units exceeded their carrying value and the Company’s goodwill was not impaired. During the fourth quarter of 2021, the Company performed its annual goodwill impairment test, as it has done this year, and also concluded goodwill was not impaired. The recoverability of goodwill is dependent upon the continued growth of cash flows from the Company’s business activities. This growth is based on business forecasts and improvement in profitability of its reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. The Company believes there are significant opportunities for additional growth within its existing clients, and can expand these relationships by: • Increasing the depth and breadth of the services the Company provides across its clients’ value chains and geographies; • Offering the full suite of the Company's services, which includes digital operations and solutions and data and analytics; and • Supporting the Company's clients’ geographic expansion leveraging its global footprint. The Company also considers selective strategic relationships with industry leaders that add new long-term client relationships, enhance the depth and breadth of its services and solutions, and complement its business strategy. Through its various Partnership programs, the Company expands its technology and innovation ecosystem with select partnerships, alliances or investments that the Company expects will enhance go-to-market opportunities and expand the scope and effectiveness of the Company’s services and solutions by adding digital assets and intellectual property, which will help the Company to win new clients or allowing it to enter new industry verticals and geographic markets. There can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates described above could change in future periods. The duration of market volatility is highly uncertain and, as such, the impact on cash flows, long-term debt-free net cash flow growth rate in the terminal year and discount rates are subject to significant judgments and may cause variability in the Company’s assessment of existence of any impairment. The Company continues to monitor significant changes in key assumptions that could result in future period impairment charges. Other Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (39,848) $ 59,298 Developed technology 24,878 (20,902) 3,976 Trade names and trademarks 1,700 (1,303) 397 Non-compete agreements 336 (88) 248 126,060 (62,141) 63,919 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 126,960 $ (62,141) $ 64,819 As of December 31, 2021 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 130,056 (49,874) 80,182 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 The amortization expense recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Amortization expense $ 17,109 $ 12,778 $ 14,412 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.5 Developed technology 1.4 Trade names and trademarks (finite lived) 1.5 Non-compete agreements 2.8 Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2022 was as follows: 2023 $ 14,646 2024 12,135 2025 10,698 2026 10,363 2027 9,364 2028 and thereafter 6,713 Total $ 63,919 |
Goodwill and Intangible Assets | Business Combinations, Goodwill and Other Intangible Assets Clairvoyant AI, Inc. On December 16, 2021, the Company, through its wholly owned subsidiary ExlService.com, LLC, completed the acquisition of Clairvoyant, a Delaware corporation, pursuant to an equity securities purchase agreement dated December 16, 2021 (the “Purchase Agreement”). The Company purchased 100% of the issued and outstanding equity securities in Clairvoyant. Clairvoyant is a global technology consulting and services company that helps organizations in their business transformation by maximizing the value of data through actionable insights. It provides data engineering, analytics, machine learning, product engineering, and cloud-based solutions. The acquisition strengthens the Company’s capabilities by adding additional expertise in data engineering and cloud enablement, further supporting its clients in insurance, healthcare, banking and financial services, and retail. The base purchase consideration payable at closing of the acquisition (the “Closing”) was $80,080, excluding cash and cash equivalents acquired, debt and estimated other post-closing adjustments. The Purchase Agreement also allows sellers the ability to earn up to $20,000 of contingent consideration, based on the achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years. The contingent consideration had an estimated fair value of $17,500 and $9,000, as of December 31, 2022 and 2021, respectively, and has been presented as contingent consideration under “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the consolidated statements of income and presented as a part of “Other income/(loss), net.” The Company accounted for the business combination using the acquisition method of accounting. Pursuant to the Company’s business combinations accounting policy, the aggregate purchase consideration for Clairvoyant was allocated to identifiable net tangible and intangible assets based upon their fair values. The excess of the estimated purchase consideration over fair value of identifiable net tangible and intangible assets was recorded as goodwill. In order to allocate the consideration transferred for Clairvoyant, the fair values of all identifiable assets and liabilities must be established. The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . During the years ended December 31, 2022 and 2021, the Company recognized measurement period adjustments, which led to increase in goodwill in an amount of $2,229 and $nil, respectively. These adjustments primarily relate to an increase in income tax liabilities of $988 included under “other non-current liabilities” and post-closing purchase adjustments. The fair values of customer relationships were determined by using an “income approach,” specifically the Multi-Period Excess Earnings Method (“MPEEM”). The MPEEM is a specific application of the discounted cash flow method. The principle behind the MPEEM is that the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable only to the subject intangible asset after deducting Contributory Asset Charges (“CAC”). The principle behind a CAC is that an intangible asset ‘rents’ or ‘leases’ from a hypothetical third party all the assets it requires to produce the cash flows resulting from its development, that each project rents only those assets it needs (including elements of goodwill) and not the ones that it does not need, and that each project pays the owner of the assets a fair return on (and of, when appropriate) the value of the rented assets. The customer relationship assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 7 years. The fair values of the developed technology intangible assets were determined by using the “cost approach,” specifically the replacement cost method. In the replacement cost approach, the fair value of an asset is based on the cost of a market participant to reconstruct a substitute asset of comparable utility, adjusted for any obsolescence. The fair value of the asset would include the seller’s expected profit margin in the market and any opportunity costs lost over the period to reconstruct the substitute asset. The technology assets are being amortized on a straight-line basis (which approximates the economic pattern of benefits) over the estimated economic life of 3 years. The goodwill recognized represents the acquired capabilities, operating synergies and other benefits expected to result from combining the acquired operations with the Company’s existing operations. The amount of goodwill recognized from Clairvoyant’s acquisition is not deductible for tax purposes. The goodwill has been assigned to the Company’s Analytics reportable segment based upon the Company’s assessment of nature of services rendered by Clairvoyant. Acquisition-related costs are being expensed as incurred and are included in general and administrative expenses in the consolidated statements of income. The Company recognized acquisition-related costs of $134 and $761 during the years ended December 31, 2022 and 2021, respectively. The results of operations of the acquired business and the fair value of the acquired assets and assumed liabilities are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Inbound Media Group, LLC On June 10, 2022, the Company, through its wholly owned subsidiary ExlService.com, LLC, entered into an Asset Purchase Agreement to acquire certain assets of Inbound, a Wyoming limited liability company, which is a digital marketing business focused primarily on lead generation in the insurance space, for cash consideration of $1,469 and contingent consideration with an estimated fair value of $1,439 as of the date of acquisition based on the achievement of certain performance goals by Inbound during the 2022 to 2024 calendar years. The contingent consideration had an estimated fair value of $1,189 as of December 31, 2022, and has been presented as contingent consideration under “Other non-current liabilities,” in the consolidated balance sheets. Changes in the fair value of contingent consideration were recognized in the consolidated statements of income and presented as a part of “Other income/(loss), net.” The Company accounted for this business combination using the acquisition method of accounting. Goodwill and intangible assets of $1,992 and $916, respectively, were recognized by the Company as a result of this transaction. The goodwill recognized for this business is deductible for income tax purposes. The acquisition strengthens the Company’s capabilities in digital direct-to-consumer marketing by adding performance marketing, lead generation and customer engagement capabilities to its suite of end-to-end marketing solutions, proprietary data sets and robust consumer analytics. The results of operations of the acquired business and the fair value of the net assets acquired are included in the Company’s consolidated financial statements with effect from the date of the acquisition. The acquisition did not materially impact the Company’s financial position, results of operations or cash flows, and therefore, the Company has not provided unaudited supplemental pro forma results. Goodwill The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance as of January 1, 2021 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ 349,088 Acquisition — — — 55,225 55,225 Currency translation adjustments (71) (11) (328) (1) (411) Balance as of December 31, 2021 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (499) (67) (1,919) (1) (2,486) Balance as of December 31, 2022 $ 49,929 $ 21,875 $ 47,101 $ 286,732 $ 405,637 During the fourth quarter of 2022, the Company performed its annual goodwill quantitative impairment test for those reporting units that had goodwill recorded. Key assumptions used in determining the fair value of the Company’s reporting units were, a long-term revenue growth rate in the terminal year of 3.0%, which was based upon expected long-term inflation rate and real gross domestic product growth over a long-term, and discount rate of up to 10.0%, which vary based upon the risks and uncertainties inherent in each individual reporting unit. Based on the results, the fair value of each of the Company’s reporting units exceeded their carrying value and the Company’s goodwill was not impaired. During the fourth quarter of 2021, the Company performed its annual goodwill impairment test, as it has done this year, and also concluded goodwill was not impaired. The recoverability of goodwill is dependent upon the continued growth of cash flows from the Company’s business activities. This growth is based on business forecasts and improvement in profitability of its reporting units. The Company continues to maintain its focus on cultivating long-term client relationships as well as attracting new clients. The Company believes there are significant opportunities for additional growth within its existing clients, and can expand these relationships by: • Increasing the depth and breadth of the services the Company provides across its clients’ value chains and geographies; • Offering the full suite of the Company's services, which includes digital operations and solutions and data and analytics; and • Supporting the Company's clients’ geographic expansion leveraging its global footprint. The Company also considers selective strategic relationships with industry leaders that add new long-term client relationships, enhance the depth and breadth of its services and solutions, and complement its business strategy. Through its various Partnership programs, the Company expands its technology and innovation ecosystem with select partnerships, alliances or investments that the Company expects will enhance go-to-market opportunities and expand the scope and effectiveness of the Company’s services and solutions by adding digital assets and intellectual property, which will help the Company to win new clients or allowing it to enter new industry verticals and geographic markets. There can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of reporting units requires the use of estimates and significant judgments that are based on a number of factors including actual operating results. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates described above could change in future periods. The duration of market volatility is highly uncertain and, as such, the impact on cash flows, long-term debt-free net cash flow growth rate in the terminal year and discount rates are subject to significant judgments and may cause variability in the Company’s assessment of existence of any impairment. The Company continues to monitor significant changes in key assumptions that could result in future period impairment charges. Other Intangible Assets Information regarding the Company’s intangible assets is set forth below: As of December 31, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (39,848) $ 59,298 Developed technology 24,878 (20,902) 3,976 Trade names and trademarks 1,700 (1,303) 397 Non-compete agreements 336 (88) 248 126,060 (62,141) 63,919 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 126,960 $ (62,141) $ 64,819 As of December 31, 2021 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 130,056 (49,874) 80,182 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 The amortization expense recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Amortization expense $ 17,109 $ 12,778 $ 14,412 The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.5 Developed technology 1.4 Trade names and trademarks (finite lived) 1.5 Non-compete agreements 2.8 Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2022 was as follows: 2023 $ 14,646 2024 12,135 2025 10,698 2026 10,363 2027 9,364 2028 and thereafter 6,713 Total $ 63,919 |
Other Current Assets
Other Current Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consist of the following: As of December 31, 2022 December 31, 2021 Prepaid expenses $ 18,132 $ 14,655 Receivables from statutory authorities 15,724 18,023 Advance income tax, net 5,716 15,199 Advances to suppliers 1,944 1,464 Derivative instruments 1,526 8,682 Deferred contract fulfillment costs 1,178 1,483 Contract assets 904 1,319 Others 5,855 2,146 Other current assets $ 50,979 $ 62,971 |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consist of the following: As of December 31, 2022 December 31, 2021 Deferred contract fulfillment costs $ 12,693 $ 4,312 Lease deposits 6,621 9,649 Deposits with statutory authorities 6,276 6,417 Contract assets 1,864 1,205 Derivative instruments 820 6,307 Receivable from Statutory authorities — 222 Others 3,795 2,071 Other assets $ 32,069 $ 30,183 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: As of December 31, 2022 December 31, 2021 Accrued expenses $ 47,854 $ 44,405 Payable to statutory authorities 20,430 13,902 Derivative instruments 10,059 1,852 Client liabilities 5,110 6,097 Contingent consideration 5,000 — Accrued capital expenditures 4,032 8,630 Interest payable 451 252 Finance lease liabilities 164 141 Other current liabilities 2,252 1,071 Accrued expenses and other current liabilities $ 95,352 $ 76,350 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consist of the following: As of December 31, 2022 December 31, 2021 Contingent consideration $ 13,689 $ 9,000 Retirement benefits 12,982 9,604 Derivative instruments 6,218 1,785 Deferred transition revenue 4,408 995 Unrecognized tax benefits 2,329 1,068 Income taxes payable — 1,790 Finance lease liabilities 355 229 Others 1,311 120 Other non-current liabilities $ 41,292 $ 24,591 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income/( Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income/( Loss) | Accumulated Other Comprehensive Income/(Loss) Accumulated other comprehensive income/(loss) (“AOCI”) consists of actuarial gain/(loss) on retirement benefits and foreign currency translation adjustments. In addition, the Company enters into foreign currency forward contracts and interest rate swaps, which are designated as cash flow hedges and net investment hedges, as applicable, in accordance with ASC Topic 815. Cumulative changes in the fair values of cash flow hedges are recognized in AOCI on the Company’s consolidated balance sheets. The fair value changes are reclassified from AOCI to consolidated statements of income upon settlement of foreign currency forward contracts designated as cash flow hedges of a forecast transaction, whereas such changes for interest rate swaps are reclassified over the term of the contract. Fair value changes related to net investment hedges are included in AOCI and are reclassified to consolidated statements of income when a foreign operation is disposed or partially disposed. The following table sets forth the changes in AOCI during the years ended December 31, 2022, 2021 and 2020: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation loss Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2020 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Gains / (losses) recognized during the year (540) 12,665 (2,401) 9,724 Reclassification to net income — (801) 394 (407) Income tax effects (2) 1,946 (2,163) 808 591 Accumulated other comprehensive income/(loss) as of December 31, 2020 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Gains / (losses) recognized during the year (11,134) 4,663 (558) (7,029) Losses on net investment hedges (1,134) — — (1,134) Reclassification to net income (1) — (9,264) 709 (8,555) Income tax effects (2) 3,016 (778) (10) 2,228 Accumulated other comprehensive income/(loss) as of December 31, 2021 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Gains / (losses) recognized during the year (47,734) (27,333) 2,574 (72,493) Reclassification to net income (1) — 1,295 592 1,887 Income tax effects (2) 10,032 6,315 (410) 15,937 Accumulated other comprehensive income/(loss) as of December 31, 2022 $ (133,139) $ (11,303) $ 299 $ (144,143) 1. Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the consolidated financial statements for reclassification to net income. 2. These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation loss. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and Liabilities Measured at Fair Value The following table sets forth the Company’s assets and liabilities that were recognized at fair value: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 1,137 $ — $ — $ 1,137 Mutual funds** 110,964 — — 110,964 Derivative financial instruments — 2,346 — 2,346 Total $ 112,101 $ 2,346 $ — $ 114,447 Liabilities Derivative financial instruments $ — $ 16,277 $ — $ 16,277 Contingent consideration*** — — 18,689 18,689 Total $ — $ 16,277 $ 18,689 $ 34,966 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 5,374 $ — $ — $ 5,374 Mutual funds** 127,551 — — 127,551 Derivative financial instruments — 14,989 — 14,989 Total $ 132,925 $ 14,989 $ — $ 147,914 Liabilities Derivative financial instruments $ — $ 3,637 $ — $ 3,637 Contingent consideration*** — — 9,000 9,000 Total $ — $ 3,637 $ 9,000 $ 12,637 * Represents money market funds which are carried at the fair value option under ASC Topic 825 “ Financial Instruments ” . ** Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “ Financial Instruments ” . *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. Derivative Financial Instruments : The Company’s derivative financial instruments consist of foreign currency forward contracts and interest rate swaps. Fair values for derivative financial instruments are based on independent sources including highly rated financial institutions and are classified as Level 2. Refer to Note 17 - Derivatives and Hedge Accounting to the consolidated financial statements for further details. Fair Value of Contingent Consideration : The fair value measurement of contingent consideration is determined using Level 3 inputs. The Company’s contingent consideration represents a component of the total purchase consideration for its acquisitions of Clairvoyant and Inbound. The measurement is calculated using unobservable inputs based on the Company’s own assessment of achievement of certain performance goals by Clairvoyant during the 2022 and 2023 calendar years and Inbound during the 2022 to 2024 calendar years. The Company estimated the fair value of the contingent consideration based on the Monte Carlo simulation model and scenario-based method. Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Asset s to the consolidated financial statements for further details. The following table summarizes the changes in the fair value of contingent consideration: Year ended December 31, 2022 2021 Opening balance $ 9,000 $ — Acquisitions 1,439 9,000 Fair value changes 8,250 — Closing balance $ 18,689 $ 9,000 During the years ended December 31, 2022, 2021 and 2020, there were no transfers among Level 1, Level 2 and Level 3. Financial Instruments Not Carried at Fair Value : The Company’s other financial instruments not carried at fair value consist primarily of cash and cash equivalents (except investments in money market funds, as disclosed above), short-term investments (except investments in mutual funds, as disclosed above), restricted cash, accounts receivable, net, long-term investments, accrued capital expenditures, accrued expenses, client liabilities and interest payable on borrowings for which fair values approximate their carrying amounts. The carrying value of the Company’s outstanding revolving credit facility approximates its fair value because the Company’s interest rate yield is near current market rates for comparable debt instruments. Nonrecurring Fair Value Measurements of Assets: Nonrecurring fair value measurements include impairment tests of goodwill conducted by the Company during the years ended December 31, 2022 and 2021. The fair value determination of the Company's reporting units was based on a combination of the income approach, using a DCF model, which are Level 3 inputs, and also the market approach, as applicable, using market multiples for reporting units, which are Level 2 inputs. During the years ended December 31, 2022 and 2021, the Company did not recognize any impairment charges on goodwill as the fair values of the reporting units exceeded their carrying value. Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for further details. |
Derivatives and Hedge Accountin
Derivatives and Hedge Accounting | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedge Accounting | Derivatives and Hedge AccountingThe Company uses derivative instruments to mitigate cash flow volatility from risk of fluctuations in foreign currency exchange rates and interest rates. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted transactions denominated in certain foreign currencies, and interest rate swaps to hedge cash flow risks from its revolving credit facility having variable interest rate obligations. These contracts qualify as cash flow hedges under ASC Topic 815 and are with counterparties that are highly rated financial institutions. For derivatives in cash flow hedging relationships as of December 31, 2022 and 2021, the Company had outstanding foreign currency forward contracts totaling $841,620 and $514,580, respectively and interest rate swaps totaling $75,000 and $nil, respectively. The Company estimates that approximately $8,773 of derivative losses, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of December 31, 2022, could be reclassified into earnings within the next twelve months. As of December 31, 2022, the maximum outstanding term of the cash flow hedges was approximately 45 months. The Company also enters into foreign currency forward contracts to hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of fluctuations in foreign currency exchange rates associated with remeasurement of such assets and liabilities to functional currency. These foreign currency forward contracts do not qualify as fair value hedges under ASC Topic 815. Changes in the fair value of these financial instruments are recognized in the consolidated statements of income and are included in the foreign exchange gain/(loss) line item. The Company’s primary exchange rate exposure is with the Indian rupee, the Philippine peso and the U.K. pound sterling (GBP). The Company also has exposure to Colombian pesos (COP), Czech koruna, the Euro (EUR), South African ZAR, the Australian dollar (AUD) and other local currencies in which it operates. The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments: As of Foreign currency forward contracts denominated in: December 31, 2022 December 31, 2021 U. S. dollar (USD) 163,990 134,612 U.K. pound sterling (GBP) 8,351 6,763 Euro (EUR) 1,956 1,343 Australian dollar (AUD) 1,951 — Colombian peso (COP) — 2,541,902 The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets: Derivatives in cash flow hedging relationships Derivatives not designated as hedging instruments As of As of December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Assets: Other current assets $ 1,271 $ 8,669 $ 255 $ 13 Other assets $ 820 $ 6,307 $ — $ — Liabilities: Accrued expenses and other current liabilities $ 10,044 $ 1,324 $ 15 $ 528 Other non-current liabilities $ 6,218 $ 1,785 $ — $ — The following tables set forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the consolidated statements of income: Year ended December 31, Derivative financial instruments: 2022 2021 2020 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ (27,333) $ 4,663 $ 12,665 Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ (9,571) $ 196 $ 3,686 Location and amount of gain/(loss) recognized in consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Year ended December 31, 2022 2021 2020 As per consolidated statements of income Gain/(loss) on derivative financial instruments As per consolidated statements of income Gain on derivative financial instruments As per consolidated statements of income Gain/(loss) Cash flow hedging relationships Location in consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 896,595 $ (1,304) $ 690,934 $ 7,785 $ 623,936 $ 1,008 General and administrative expenses $ 169,016 141 $ 142,040 948 $ 113,891 (161) Selling and marketing expenses $ 97,989 10 $ 84,306 53 $ 60,123 (5) Depreciation and amortization expense $ 56,282 (32) $ 49,132 478 $ 50,462 (41) Interest expense $ 8,252 (110) $ 7,561 — $ 11,190 — Total before tax (1,295) 9,264 801 Income tax effects on above (455) (1,530) 500 Net of tax $ (1,750) $ 7,734 $ 1,301 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain, net $ 6,199 $ (9,571) $ 4,313 $ 196 $ 4,432 $ 3,686 $ 6,199 $ (9,571) $ 4,313 $ 196 $ 4,432 $ 3,686 Effect of net investment hedges on AOCI: Year ended December 31, Amount of loss recognized in AOCI Net investment hedging relationships 2022 2021 2020 Foreign currency forward contracts $ — $ 1,134 $ — |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings The following tables summarizes the Company’s debt position: As of December 31, 2022 2021 Revolving credit facility Current portion of long-term borrowings $ 30,000 $ 260,016 Long-term borrowings 220,000 — Total borrowings $ 250,000 $ 260,016 Unamortized debt issuance costs for the Company’s revolving credit facility of $1,177 and $232 as of December 31, 2022 and 2021, respectively, are presented under “Other current assets” and “Other assets,” as applicable in the consolidated balance sheets. Credit Agreement The Company held a $300,000 revolving credit facility pursuant to its credit agreement (the “Credit Agreement”), dated as of November 21, 2017 with certain lenders and Citibank N.A. as Administrative Agent. The revolving credit facility originally had a maturity date of November 21, 2022 and was voluntarily pre-payable from time to time without premium or penalty. On April 18, 2022, the Company and each of the Company’s wholly owned material domestic subsidiaries entered into an Amendment and Restatement Agreement with Citibank, N.A. as Administrative Agent and certain lenders (the “2022 Credit Agreement”), pursuant to which the parties thereto amended and restated the Credit Agreement. Among other things, the 2022 Credit Agreement (a) provides for the issuance of new revolving credit commitments such that the aggregate amount of revolving credit commitments available to the Company is equal to $400,000; (b) extends the maturity date of the revolving credit facility from November 21, 2022 to April 18, 2027; and (c) replaces LIBOR with Secured Overnight Financing Rate (“SOFR”) as the reference rate for the U.S. dollar borrowings. The 2022 Credit Agreement provides an option to increase the commitments by up to $200,000, subject to certain approvals and conditions. The 2022 Credit Agreement includes a letter of credit sub facility and is voluntarily pre-payable from time to time without premium or penalty. Borrowings under the 2022 Credit Agreement can be used for working capital and general corporate purposes, including permitted acquisitions. Obligations under the 2022 Credit Agreement are guaranteed by the Company’s material domestic subsidiaries and are secured by all or substantially all of the Company’s and our material domestic subsidiaries’ assets. The 2022 Credit Agreement contains customary affirmative and negative covenants, including, but not limited to, restrictions on the ability to incur indebtedness, create liens, make certain investments, make certain dividends and related distributions, enter into, or undertake, certain liquidations, mergers, consolidations or acquisitions and dispose of certain assets or subsidiaries. In addition, the 2022 Credit Agreement contains a covenant to not permit the interest coverage ratio or the total net leverage ratio, both as defined for the four consecutive quarter period ending on the last day of each fiscal quarter, to be less than 3.0 to 1.0 or more than 3.5 to 1.0, respectively. The 2022 Credit Agreement bears interest at a rate equal to specified prime rate (alternate base rate) or adjusted SOFR, plus, in each case, an applicable margin. The applicable margin is tied to the Company’s total net leverage ratio and ranges from 0% to 0.75% per annum on loans pegged to the specified prime rate, and 0.88% to 1.75% per annum on loans pegged to the adjusted SOFR. The revolving credit commitments under the 2022 Credit Agreement are subject to a commitment fee which is also tied to the Company’s total net leverage ratio, and ranges from 0.13% to 0.28% per annum on the average daily amount by which the aggregate revolving commitments exceed the sum of outstanding revolving loans and letter of credit obligations. The revolving credit facility carried an effective interest rate as shown below: Year ended December 31, 2022 2021 2020 Effective Interest Rate 2.9 % 1.7 % 2.3 % As of December 31, 2022 and 2021, the Company was in compliance with all financial and non-financial covenants listed under the applicable revolving credit facility. Convertible Senior Notes On October 1, 2018, the Company entered into an investment agreement with Orogen Echo LLC (the “Purchaser”), an affiliate of The Orogen Group LLC, relating to the issuance to the Purchaser of $150,000, in an aggregate principal amount (the “Notes”). The Notes carried interest at a rate of 3.5% per annum, payable semi-annually in arrears in cash on April 1 and October 1 of each year. The Notes were convertible at an initial conversion rate of 13.3333 shares of the common stock per one thousand dollar principal amount of the Notes (which represented an initial conversion price of approximately $75 per share). The Company had the option to redeem the principal amount of the Notes, at its option, if the closing sale price of the common stock exceeded 150% of the then-current conversion price for 20 or more trading days in the 30 consecutive trading day period preceding the Company’s exercise of this redemption right (including the trading day immediately prior to the date of the notice of redemption). The Notes carried an effective interest rate as shown below: Year ended December 31, 2021 2020 Effective Interest Rate 3.6 % 3.6 % On August 27, 2021, the Company entered into a Payoff and Termination Agreement with the Purchaser, pursuant to which the Company prepaid and settled its outstanding obligations under the Notes, by electing a combination of cash and shares of the Company’s common stock. During the year ended December 31, 2021, the Company recognized a loss on settlement of the Notes of $12,845, representing the difference between the fair value of the consideration allocated to the debt component and the carrying value of the debt component immediately before settlement, and is presented as “Loss on settlement of convertible notes,” in the Company’s consolidated statements of income. During the years ended December 31, 2021 and 2020, the Company recognized interest expense and amortization of debt discount of $5,237 and $7,866, respectively, on the Notes. Expected payments for all of the Company’s borrowings as of December 31, 2022 were as follows: Revolving credit facility Principal Payments Interest Payments* 2023 $ 30,000 $ 12,374 2024 — 11,926 2025 — 11,926 2026 — 11,926 2027 220,000 4,472 Total $ 250,000 $ 52,624 * Interest payments are based on effective interest rate as of December 31, 2022. Letters of Credit In the ordinary course of business, the Company provides standby letters of credit to third parties primarily for facility leases. As of December 31, 2022 and 2021, the Company had outstanding letters of credit of $461, each, that were not recognized in the consolidated balance sheets. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Structure | Capital Structure Common Stock The Company has one class of common stock outstanding. The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Twelve months ended December 31, 2022 32,816 $ 4,121 $ 125.58 Twelve months ended December 31, 2021 31,309 $ 2,752 $ 87.90 Twelve months ended December 31, 2020 28,052 $ 2,131 $ 75.96 (1) The weighted average purchase price per share is based on the closing price of the Company’s common stock on the Nasdaq Global Select Market on the trading day prior to the applicable vesting date of the shares of restricted stock. On December 16, 2019, the Company’s board of directors authorized a $200,000 common stock repurchase program beginning January 1, 2020 through December 31, 2022 (the “2019 Repurchase Program”). On October 5, 2021, the Company’s board of directors authorized a $300,000 common stock repurchase program beginning January 1, 2022 (the “2022 Repurchase Program”), and terminated the 2019 Repurchase Program on December 31, 2021. Under the 2022 Repurchase Program and 2019 Repurchase Program, shares may be purchased by the Company from time to time from the open market and through private transactions, or otherwise, as determined by the Company’s management as market conditions warrant. Repurchases may be discontinued at any time by the management. The Company purchased shares of its common stock, for a total consideration including commissions, under repurchase programs, as below: Shares repurchased Total consideration Weighted average purchase price per share Twelve months ended December 31, 2022 503,858 $ 68,521 $ 135.99 Twelve months ended December 31, 2021 1,087,325 $ 115,605 $ 106.32 Twelve months ended December 31, 2020 1,085,153 $ 77,818 $ 71.71 Repurchased shares have been recorded as treasury shares and will be held until the Company’s board of directors designates that these shares be retired or used for other purposes. Dividends The Company has not paid or declared any cash dividends on its common stock during the years ended December 31, 2022, 2021 and 2020. The Company’s borrowings under the revolving credit facility could restrict its ability to declare or make any dividends or similar distributions. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company’s Gratuity Plan in India (the “India Plan”) provides for a lump sum payment to vested employees on retirement or upon termination of employment in an amount based on the respective employee’s salary and years of employment with the Company. In addition, the Company’s subsidiary operating in the Philippines conforms to the minimum regulatory benefit, which provide for lump sum payment to vested employees on retirement from employment in an amount based on the respective employee’s salary and years of employment with the Company (the “Philippines Plan”). Liabilities with regard to the India Plan and the Philippines Plan are determined by actuarial valuation using the projected unit credit method. Current service costs for these Plans are accrued in the year to which they relate. Actuarial gains or losses or prior service costs, if any, resulting from amendments to the plans are recognized and amortized over the remaining period of service of the employees. The India Plan is partially funded whereas the Philippines plan is unfunded. The Company makes annual contributions to the India Plan established with insurance companies. Fund managers manage these funds and calculate the annual contribution required to be made by the Company and manage the India Plan, including any required payouts. These funds are managed on a cash accumulation basis and interest is declared retrospectively on March 31 of each year. The Company earned a return of approximately 5.9% per annum on the India Plan for the year ended December 31, 2022. The benefit obligation has been measured as of December 31, 2022 and 2021. The following table sets forth the activity and the funded status of the gratuity plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: Change in projected benefit obligation 2022 2021 Projected benefit obligation as of January 1 $ 23,271 $ 20,466 Service cost 3,770 3,512 Interest cost 1,232 929 Benefits paid (1,757) (1,844) Acquisition adjustments — 209 Actuarial (gain)/loss* (2,639) 539 Effect of exchange rate changes (2,346) (540) Projected benefit obligation as of December 31 $ 21,531 $ 23,271 Change in Plan Assets Plan assets as of January 1 $ 13,605 $ 11,512 Actual return 798 777 Employer contribution 3,273 3,361 Benefits paid (1,737) (1,835) Effect of exchange rate changes (1,490) (210) Plan assets as of December 31 $ 14,449 $ 13,605 Unfunded status as of December 31 $ 7,082 $ 9,666 Unfunded amount recognized in the consolidated balance sheets Non-current liability (included under other non-current liabilities) $ 6,971 $ 9,604 Current liability (included under accrued employee costs) 111 62 Total accrued liability $ 7,082 $ 9,666 Accumulated benefit obligation as of December 31 $ 14,447 $ 14,794 Accumulated benefit obligation in excess of plan assets as of December 31 $ (2) $ 1,189 *During the year ended December 31, 2022, actuarial gain was driven by changes in actuarial assumptions, offset by experience adjustments on present value of benefit obligations. During the year ended December 31, 2021, actuarial loss was driven by experience adjustments on present value of benefit obligations offset by changes in actuarial assumptions. Components of net periodic benefit costs recognized in consolidated statements of income and actuarial loss reclassified from AOCI, were as follows: Year ended December 31, 2022 2021 2020 Service cost $ 3,770 $ 3,512 $ 2,706 Interest cost 1,232 929 964 Expected return on plan assets (872) (796) (636) Amortization of actuarial loss, gross of tax 592 709 394 Net gratuity cost $ 4,722 $ 4,354 $ 3,428 Amortization of actuarial loss, gross of tax $ 592 $ 709 $ 394 Income tax effects on above (179) (204) (127) Amortization of actuarial loss, net of tax $ 413 $ 505 $ 267 The components of actuarial loss on retirement benefits included in AOCI, excluding tax effects, were as follows: As of December 31, 2022 2021 2020 Net actuarial loss $ (462) $ (3,624) $ (3,772) Net prior service cost (8) (12) (15) Amount recognized in AOCI, excluding tax effects $ (470) $ (3,636) $ (3,787) The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were: December 31, 2022 2021 2020 Discount rate 7.3 % 5.6 % 4.6 % Rate of increase in compensation levels 7.8 % 7.6 % 7.1 % Expected long-term rate of return on plan assets per annum 7.3 % 6.8 % 7.0 % The Company evaluates these assumptions annually based on its long-term plans of growth and industry standards. The discount rates are either based on current market yields on government securities or yields on government securities adjusted for a suitable risk premium, if available. Expected benefit payments during the year ending December 31, 2023 $ 3,475 2024 $ 3,183 2025 $ 2,897 2026 $ 2,661 2027 $ 2,661 2028 to 2032 $ 8,388 The Company maintains several 401(k) plans (the “401(k) Plans”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), covering all eligible employees, as defined in the Code as a defined social security contribution plan. The Company may make discretionary contributions of up to a maximum of 3.0% of employee compensation within certain limits. The Company’s accrual for contributions to the 401(k) Plans were as follows: Year ended December 31, 2022 2021 2020 Contribution to the 401(k) Plans $ 5,205 $ 3,693 $ 3,577 The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company were as follows: Year ended December 31, 2022 2021 2020 Contributions to the defined social security contribution plans $ 18,215 $ 16,340 $ 11,332 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information As of December 31, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 55,347 $ 76,692 Operating lease liabilities - Current $ 14,978 $ 18,487 Operating lease liabilities - Non-current 48,155 68,506 Total operating lease liabilities $ 63,133 $ 86,993 Finance Lease Property and equipment, gross $ 2,499 $ 2,685 Accumulated depreciation (1,999) (2,339) Property and equipment, net $ 500 $ 346 Finance lease liabilities - Current $ 164 $ 141 Finance lease liabilities - Non-current 355 229 Total finance lease liabilities $ 519 $ 370 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. The components of lease cost, which are included in the Company’s consolidated statements of income, are as follows: Year ended December 31, Lease cost 2022 2021 Finance lease: Amortization of right-of-use assets $ 151 $ 188 Interest on lease liabilities 59 63 210 251 Operating lease (a) 21,783 26,326 Variable lease costs 5,033 7,621 Total lease cost $ 27,026 $ 34,198 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended December 31 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 23,227 $ 25,674 Operating cash outflows for finance leases $ 59 $ 63 Financing cash outflows for finance leases $ 142 $ 201 Right-of-use assets obtained in exchange for new operating lease liabilities $ 734 $ 4,547 Right-of-use assets obtained in exchange for new finance lease liabilities $ 312 $ 71 Weighted-average remaining lease term (in years) Finance lease 2.8 years 2.1 years Operating lease 5.9 years 5.8 years Weighted-average discount rate Finance lease 14.3% 14.5% Operating lease 6.8% 7.2% The Company modified certain of its operating leases, resulting in a decrease of its lease liabilities by $2,723, $2,917 and $3,143, during the years ended December 31, 2022, 2021 and 2020, respectively, with a corresponding adjustment to ROU assets. As of December 31, 2022 and 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $nil impairment on ROU assets. Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments 108,765 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Leases | Leases The Company conducts its operations using facilities leased under operating lease agreements that expire at various dates. The Company finances its use of certain motor vehicles and other equipment under various lease arrangements provided by financial institutions. The lease agreements do not contain any covenants to impose any restrictions except for market-standard practice for similar lease arrangements. The Company had performed an evaluation of its contracts with suppliers in accordance with ASC Topic 842, and had determined that, except for leases for office facilities, motor vehicles and other equipment as described above, none of the Company’s contracts contain a lease. As part of the Company’s efforts to optimize its existing network of operations centers, the Company continued to evaluate its office facilities to determine where it can exit or consolidate its use of office space. Supplemental balance sheet information As of December 31, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 55,347 $ 76,692 Operating lease liabilities - Current $ 14,978 $ 18,487 Operating lease liabilities - Non-current 48,155 68,506 Total operating lease liabilities $ 63,133 $ 86,993 Finance Lease Property and equipment, gross $ 2,499 $ 2,685 Accumulated depreciation (1,999) (2,339) Property and equipment, net $ 500 $ 346 Finance lease liabilities - Current $ 164 $ 141 Finance lease liabilities - Non-current 355 229 Total finance lease liabilities $ 519 $ 370 Finance lease liabilities are presented as a part of “Accrued expenses and other current liabilities” and “Other non-current liabilities,” as applicable, in the Company’s consolidated balance sheets. The components of lease cost, which are included in the Company’s consolidated statements of income, are as follows: Year ended December 31, Lease cost 2022 2021 Finance lease: Amortization of right-of-use assets $ 151 $ 188 Interest on lease liabilities 59 63 210 251 Operating lease (a) 21,783 26,326 Variable lease costs 5,033 7,621 Total lease cost $ 27,026 $ 34,198 (a) Includes short-term leases, which are immaterial. Supplemental cash flow and other information related to leases are as follows: Year ended December 31 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 23,227 $ 25,674 Operating cash outflows for finance leases $ 59 $ 63 Financing cash outflows for finance leases $ 142 $ 201 Right-of-use assets obtained in exchange for new operating lease liabilities $ 734 $ 4,547 Right-of-use assets obtained in exchange for new finance lease liabilities $ 312 $ 71 Weighted-average remaining lease term (in years) Finance lease 2.8 years 2.1 years Operating lease 5.9 years 5.8 years Weighted-average discount rate Finance lease 14.3% 14.5% Operating lease 6.8% 7.2% The Company modified certain of its operating leases, resulting in a decrease of its lease liabilities by $2,723, $2,917 and $3,143, during the years ended December 31, 2022, 2021 and 2020, respectively, with a corresponding adjustment to ROU assets. As of December 31, 2022 and 2021, the Company did not have any significant leases that have not yet commenced but that create significant rights and obligations for the Company. During the years ended December 31, 2022, 2021 and 2020, the Company recognized $nil impairment on ROU assets. Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments 108,765 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income/(loss) before income taxes consist of the following: Year ended December 31, 2022 2021 2020 Domestic $ 80,949 $ 43,759 $ 30,893 Foreign 109,150 102,802 84,436 $ 190,099 $ 146,561 $ 115,329 Income tax expense/(benefit) consists of the following: Year ended December 31, 2022 2021 2020 Current provision: Domestic $ 43,416 $ 18,532 $ 7,946 Foreign 23,701 33,644 14,983 $ 67,117 $ 52,176 $ 22,929 Deferred provision/(benefit): Domestic $ (17,624) $ (15,954) $ 1,343 Foreign (1,928) (4,372) 1,354 $ (19,552) $ (20,326) $ 2,697 Income tax expense $ 47,565 $ 31,850 $ 25,626 Income taxes (deferred) recognized in AOCI were as follows: Year ended December 31, 2022 2021 2020 Deferred taxes benefit / (expense) recognized on: Unrealized gain/(loss) on cash flow hedges $ 5,860 $ (2,308) $ (1,663) Reclassification adjustment for cash flow hedges 455 1,530 (500) Retirement benefits (incl. effects of tax rate changes) (231) 194 935 Reclassification adjustment for retirement benefits (179) (204) (127) Foreign currency translation loss 10,032 3,016 1,946 Total income tax benefit recognized in AOCI $ 15,937 $ 2,228 $ 591 The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: Year ended December 31, 2022 2021 2020 Expected tax expense $ 39,921 $ 30,777 $ 24,219 Foreign tax rate differential (1,136) 1,127 (2,748) Deferred tax provision 3,801 350 2,888 Unrecognized tax benefits 273 161 6 State taxes, net of Federal taxes 7,730 4,968 3,242 Non-deductible expenses 6,285 3,165 1,467 Excess tax benefit on stock-based compensation (5,881) (3,651) (2,378) Research and development credits (2,230) (1,727) (918) Prior period items (688) (931) (182) Benefit on settlement of convertible notes — (2,411) — Others (510) 22 30 Tax expense $ 47,565 $ 31,850 $ 25,626 The effective tax rate increased from 21.7% during the year ended December 31, 2021 to 25.0% during the year ended December 31, 2022. The Company recorded income tax expense of $47,565 and $31,850 for the years ended December 31, 2022 and 2021, respectively. The increase in income tax expense was primarily as a result of higher profit during the year ended December 31, 2022, compared to the year ended December 31, 2021, an increase in state taxes and an increase in non-deductible expense, partially offset by higher excess tax benefits related to stock-based compensation. Effective for taxable years beginning after December 31, 2021, Internal Revenue Code Section 174, Amortization of Research and Experimental Expenditures , provides that research and experimentation expenses can no longer be currently deducted, instead such expenses are required to be capitalized. Such capitalized expenses are to be amortized over a period of five and fifteen years for the U.S. and foreign research, respectively. However, this change has no net impact on the current year income statement due to offsetting a current tax expense of $24,743 with a corresponding deferred tax benefit. The Company is under Internal Revenue Service audit for the years 2017 and 2018. The audit process is substantially complete and is expected to conclude with no adjustments. The components of the deferred tax balances were as follows: As of December 31, 2022 December 31, 2021 Deferred tax assets: Tax credit carry forward $ 5,716 $ 16,236 Depreciation and amortization expense 14,734 10,722 Capitalized research and development expenses 24,743 — Stock-based compensation 11,425 10,760 Accrued employee costs and other expenses 15,504 13,264 Net operating loss carryforwards 412 2,057 Net unrealized foreign exchange loss 23,572 408 Deferred rent 3,120 4,454 Others 272 642 99,498 58,543 Valuation allowance (309) (188) Deferred tax assets $ 99,189 $ 58,355 Deferred tax liabilities: Intangible assets $ 27,807 $ 28,119 Net unrealized gain on investments 6,006 5,840 Others 10,132 3,957 Deferred tax liabilities $ 43,945 $ 37,916 Net deferred tax assets $ 55,244 $ 20,439 Deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of assets and liabilities and their respective tax bases and operating loss carry forwards. The Company performed an analysis of the realizability deferred tax assets as of December 31, 2022 and 2021, and recorded a valuation allowance of $309 and $188, respectively. The Company’s income tax expense also includes provisions established for uncertain income tax positions determined in accordance with Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes . The Company monitors and adjusts these reserves in light of changing facts and circumstances. To the extent that the final tax outcome of these matters differs from the amounts recorded, such differences will impact the income tax expense in the period in which such determination is made. The following table summarizes the activity related to the unrecognized tax benefits: Year ended December 31, 2022 2021 2020 Balance as of January 1 $ 1,068 $ 907 $ 1,047 Increases/(decreases) related to prior year tax positions 158 (12) (324) Increases related to current year tax positions 223 173 184 Balance as of December 31 $ 1,449 $ 1,068 $ 907 The unrecognized tax benefits as of December 31, 2022 of $1,449, if recognized, would impact the effective tax rate. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation On June 15, 2018, at the Company’s 2018 Annual Meeting of Stockholders, the Company's stockholders approved the 2018 Omnibus Incentive Plan, which among other things, reserves 3,175,000 shares of the Company’s common stock for grants of awards under the 2018 Omnibus Incentive Plan. As of December 31, 2022, the Company had 1,324,755 shares available for grant under the 2018 Omnibus Incentive Plan (includes 164,195 shares against vested performance-based restricted stock units for which the underlying common stock was issued subsequent to December 31, 2022). Under the 2018 Omnibus Incentive Plan, the Compensation and Talent Management Committee (the “Committee”) may grant awards of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, stock bonus awards, performance based compensation awards (including cash bonus awards and market condition based awards) or any combination of the foregoing. The Committee determines which employees are eligible to receive the equity awards, the number of equity awards to be granted, the exercise price, the vesting period and the exercise period. The vesting period for the equity award issued is determined on the date of the grant and is non-transferable during the life of the equity award. The majority of options expire within ten years from the date of grant. Restricted stock units generally vest proportionally over a period of four years from the date of grant, unless specified otherwise. Stock-based compensation expense by nature of function, as below, are included in the consolidated statements of income: Year ended December 31, 2022 2021 2020 Cost of revenues $ 11,535 $ 7,871 $ 6,300 General and administrative expenses 20,016 16,396 11,009 Selling and marketing expenses 17,815 14,354 10,926 Total $ 49,366 $ 38,621 $ 28,235 Income tax benefit related to share-based compensation, including excess tax benefits $ 9,785 $ 9,424 $ 8,330 Stock Options The fair value of each stock option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. All stock-based payment awards are amortized on a straight-line basis over the requisite service period of the awards, which is generally the vesting period. The Company accounts for the forfeitures as and when the actual forfeitures occur. Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (Years) Outstanding as of December 31, 2021 3,093 $ 27.62 $ 362 2.0 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2022 3,093 $ 27.62 $ 439 1.0 Vested and exercisable as of December 31, 2022 3,093 $ 27.62 $ 439 1.0 The unrecognized compensation cost for unvested options as of December 31, 2022 was $nil. The Company did not grant any options during the years ended December 31, 2022, 2021 and 2020. The aggregate intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $nil, $2,475 and $3,488, respectively. The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable as of December 31, 2022: Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted-Average $25.01 to $28.00 3,093 $ 27.62 Year ended December 31, 2022 2021 2020 Cash received from options exercised during the year $ — $ 710 $ 1,501 Share Matching Program Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock. For purposes of the match, “newly acquired shares” includes the employee’s first quarter 2022 open market purchase of the common stock, and crediting of equity awards vesting under any existing stock award plan of the Company as having been purchased by such employees, in an amount between $100 to $500 per such employee. The matching restricted stock units granted under the SMP will vest in two installments, with one-third to vest on the second anniversary of the grant date and the remaining two-thirds to vest on the third anniversary of the grant date; the newly acquired shares for which the matching restricted stock units were granted must also be held by the employee until such vesting dates. The Company’s underlying common stock issued pursuant to the vesting of the matching restricted stock units will not be marketable or transferable for a period of two years following the vesting date. Certain forfeiture and other conditions apply. Restricted stock unit activity under the SMP is shown below: Restricted Stock Units (SMP) Number Weighted-Average Outstanding as of December 31, 2021 — $ — Granted 52,636 124.76 Vested — — Forfeited (5,013) 124.76 Outstanding as of December 31, 2022 47,623 $ 124.76 The fair value of common stock to be issued under the SMP was determined by estimating the discount for illiquidity using the Cost of Carry model, the Chaffe model and the Finnerty model with the following assumptions: Year ended December 31, 2022 Dividend yield — Expected life (years) 2.0 Risk free interest rate for expected life 2.3 % Volatility for expected life 32.3 % Discount for illiquidity 12.9 % As of December 31, 2022, unrecognized compensation cost of $4,451 is expected to be expensed over a weighted average period of 2.3 years. Restricted Stock Units The Committee is authorized to award restricted stock units to participants. The Committee establishes the terms, conditions and restrictions applicable to each award of restricted stock units, including the time or times at which restricted stock units will be granted or vested and the number of units to be covered by each award. The terms and conditions of each restricted stock award will be reflected in a restricted stock unit agreement. Any cash or in-kind dividends paid with respect to unvested shares of restricted stock units are withheld by the Company and paid to the holder of such shares of restricted stock, without interest, only if and when such shares of restricted stock units vest. Any unvested shares of restricted stock units are immediately forfeited without consideration upon the termination of holder’s employment with the Company or its affiliates. Accordingly, the Company’s unvested restricted stock units do not include non-forfeitable rights to dividends or dividend equivalents and are therefore not considered as participating securities for purposes of earnings per share calculations pursuant to the two-class method. Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted- Outstanding as of December 31, 2021 ** 982,187 $ 81.61 Granted 358,764 121.38 Vested* (327,450) 73.30 Forfeited (90,375) 94.96 Outstanding as of December 31, 2022 ** 923,126 $ 98.71 * Includes 12,009 and 18,904 restricted stock units vested during the years ended December 31, 2022 and 2021, respectively, for which the underlying common stock is yet to be issued. ** As of December 31, 2022 and 2021, restricted stock units vested for which the underlying common stock is yet to be issued are 174,490 and 162,481, respectively. The fair value of restricted stock units is generally the market price of the Company’s shares on the date of grant. As of December 31, 2022, unrecognized compensation cost of $59,182 is expected to be expensed over a weighted average period of 2.3 years. The weighted-average fair value of restricted stock units granted was as follows: Year ended December 31, 2022 2021 2020 Weighted-average fair value $ 121.38 $ 91.23 $ 76.99 The total grant date fair value of restricted stock units vested was as follows: Year ended December 31, 2022 2021 2020 Total grant date fair value $ 24,002 $ 23,845 $ 20,072 Performance Based Stock Awards Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the year ended December 31, 2022, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three-year period (“PU”). The remaining 60% of each award recipient’s equity grants are PRSUs that are based on market conditions contingent on the Company's meeting the total shareholder return relative to a group of peer companies specified under the 2018 Plan, and are measured over a three-year performance period (“MU”). The fair value of each PU is determined based on the market price of one common share on a day prior to the date of grant, and the associated stock compensation expense is calculated on the basis that performance targets at 100% are probable of being achieved. The stock compensation expense for the PUs is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued are adjusted upward or downward based upon the probability of achievement of the performance targets. The final number of shares issued and the related compensation cost recognized as an expense is based on a comparison of the final performance metrics to the specified targets. The grant date fair value for each MU is determined using a Monte Carlo simulation model and the related stock compensation expense is expensed on a straight-line basis over the vesting period. The stock compensation expense related to the MUs is recognized once the requisite performance period is fulfilled regardless of the extent of the market condition achieved. The Monte Carlo simulation model simulates a range of possible future stock prices and estimates the probabilities of the potential payouts. This model also incorporates the following ranges of assumptions: • The historical volatilities are used over the most recent three-year period for the components of the peer group. • The risk-free interest rate is based on the U.S. Treasury rate assumption commensurate with the three-year performance period. • Since the plan stipulates that the awards are based upon the TSR of the Company and the components of the peer group, it is assumed that the dividends get reinvested in the issuing entity on a continuous basis. • The correlation coefficients are used to model the way in which each entity tends to move in relation to each other are based upon the price data used to calculate the historical volatilities. The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2022 2021 2020 Dividend yield — — — Expected life (years) 2.9 2.9 2.9 Risk free interest rate for expected life 1.7 % 0.5 % 3.9 % Volatility for expected life 38.3 % 65.2 % 34.3 % PRSU activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding as of December 31, 2021 58,864 $ 78.29 172,042 $ 113.74 Granted 53,122 119.98 79,631 155.67 Adjustment upon final determination of level of performance goal achievement* — — 54,727 102.10 Vested (54,741) 78.28 (109,454) 102.10 Forfeited (7,654) 97.55 (18,234) 126.21 Outstanding as of December 31, 2022 49,591 $ 119.99 178,712 $ 134.72 * Represents adjustment of shares vested in respect of MUs granted in February 2020 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2022. As of December 31, 2022, unrecognized compensation cost of $20,066 is expected to be expensed over a weighted average period of 1.8 years. Employee Stock Purchase Plan On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”). The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The first offering period under the 2022 ESPP commenced on October 1, 2022 with a term of three months. The Company has registered 800,000 shares of common stock to be reserved for issuance over the term of the 2022 ESPP. As of December 31, 2022, 800,000 shares remain available for future issuance under the 2022 ESPP, of which 7,636 shares of common stock were eligible for purchase by employees for total proceeds of $1,060 for which the underlying common stock was issued subsequent to December 31, 2022. The ESPP is compensatory and results in compensation expense. The fair value of common stock to be issued under the ESPP was determined using the Black-Scholes option pricing model with the following assumptions: Year ended December 31, 2022 Dividend yield — Expected life (years) 0.3 Risk free interest rate for expected life 3.3 % Volatility for expected life 43.6 % Discount for illiquidity 9.9 % The weighted-average fair value of employee stock purchase rights granted pursuant to the ESPP during the year ended December 31, 2022 was $20.53. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | Related Party Disclosures In April 2022, the Company entered into a service contract for providing analytics services to The Vanguard Group Inc., which beneficially owns more than 10% of the Company’s common stock as of December 31, 2022. During the year ended December 31, 2022, the Company recognized revenues, net of $2,258 related to this service contract. The Company had outstanding accounts receivable of $856 related to this service contract as of December 31, 2022. On October 1, 2018, the Company entered into the Investment Agreement with the Purchaser relating to the issuance to the Purchaser of $150,000 aggregate principal amount of the Notes. In connection with the investment, Vikram S. Pandit, Chairman and CEO of The Orogen Group LLC (an affiliate of the Purchaser), was appointed to Company’s board of directors. The Company settled the Notes on August 27, 2021. Refer to Note 18 - Borrowings to the consolidated financial statements for further details. The following transactions with the Purchaser were recognized by the Company in connection with the Notes: Year ended December 31 2021 2020 Repayment of the Notes in cash $ 200,000 $ — Repayment of the Notes in shares $ 36,742 $ — Interest expense on the Notes $ 3,442 $ 5,250 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Capital Commitments As of December 31, 2022 and 2021, the Company had committed to spend approximately $9,700 and $8,100, respectively, under agreements to purchase property and equipment. This amount is net of capital advances paid which are recognized in consolidated balance sheets as “Capital work in progress” under “Property and equipment, net.” Other Commitments Certain units of the Company’s Indian subsidiaries were established as 100% Export-Oriented units or under the Software Technology Parks of India or Special Economic Zone scheme promulgated by the Government of India. These units are exempt from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has undertaken to pay custom duties, service taxes, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company believes, however, that these units have in the past satisfied and will continue to satisfy the required conditions. The Company’s operations centers in the Philippines are registered as qualified Philippines Economic Zone Authority units, which provides the Company fiscal incentives on the import of capital goods and local purchase of services and materials. The Company is required to meet certain requirements to retain the incentives. The Company has, and will continue to, comply with the requirements to avail itself of the incentives. Contingencies The transfer pricing regulations in the countries the Company operates in require that controlled intercompany transactions be at arm’s-length. Accordingly, the Company determines and documents pricing for controlled intercompany transactions based on an economic analysis as prescribed in the respective regulations. The tax authorities have jurisdiction to review the Company’s transfer pricing. If the Company’s transfer pricing is challenged by the authorities, they could assess additional tax, interest and penalties, thereby impacting the Company’s profitability and cash flows. The Company is currently involved in transfer pricing and related income tax disputes with Indian tax authorities. The aggregate amount demanded by Indian tax authorities (net of advance payments) as of December 31, 2022 and 2021 is $37,088 and $34,276, respectively. The Company has made payments and/or provided bank guarantees against these demands in the amounts of $7,532 and $7,954, as of December 31, 2022 and 2021, respectively. The Company believes that its positions will more likely than not be sustained upon final examination by the tax authorities, and accordingly has not accrued any liabilities with respect to these matters in its consolidated financial statements. India’s Value Added Tax (“VAT”) regime ended in June 2017 and was replaced by the current Goods and Service Tax (“GST”) regime. Pursuant to reviewing the Company’s annual VAT filings, the Indian tax authorities raised aggregate VAT tax demands for tax years 2015 and 2017, in the amounts of $5,526 and $6,387, as of December 31, 2022 and 2021, respectively. The GST authorities rejected the Company’s refunds claims in the amounts of $3,866 and $3,322 as of December 31, 2022 and 2021, respectively. The Company has filed appeals against these matters and believes that it is more likely than not that upon final examination its position will be sustained based on its technical merits. Accordingly, no provision was recognized as of December 31, 2022 and 2021, respectively. One of the Company’s subsidiaries in India has undergone an assessment with the statutory authority with respect to defined social security contribution plan. Except for some components of the assessment for which the Company has recognized a provision in the financial statements, the Company believes that the amount demanded by such authority is not a meaningful indicator of the potential liabilities of the Company, and that the matter is without merit. The Company is defending against the assessment order and has accordingly instituted an appeal against the order before the relevant tribunal while also making a payment under protest of the amount demanded, being a prerequisite for the appeal to be admitted. As of the reporting date, the Company’s management does not believe that the ultimate assessment will have a material adverse effect on the Company’s consolidated financial condition, results of operations or cash flows. The Company will continue to monitor and evaluate its position based on future events and developments in this matter. In August 2019 and September 2020, the Indian Parliament passed various consolidating labor codes, including the Code on Social Security, 2020 (the “Indian Social Security Code”) which aims to rationalize labor laws. The Indian Social Security Code has implications on defined social security contribution plans, provision of certain benefits or facilities to employees at employer’s costs and post-retirement benefits. Most specifically, it broadens the definition of an employee and wages and liberalizes the definition of “continuous period” for the purpose of determining employee benefits, among others. However, the rules for the Indian Social Security Code are yet to be published and the effective date from which these changes are applicable is yet to be notified. The Company will complete its evaluation once the subject rules are notified and will give appropriate impact in the financial statements in the period in which, the Indian Social Security Code becomes effective and the related rules to determine the financial impact are published. From time to time, the Company, its subsidiaries, and/or their present officers or directors, may be or have been, named as a defendant in litigation matters, including employment-related claims. The plaintiffs in those cases seek damages, including, where applicable, compensatory damages, punitive damages and attorney’s fees. With respect to pending litigation matters as of the reporting date, the Company believes that the damages claimed are without merit, and the Company intends to vigorously defend them. The Company will continuously monitor developments on these matters to assess potential impacts to the financial statements. The outcomes of legal actions are unpredictable and subject to significant uncertainties, and thus it is inherently difficult to determine the likelihood of the Company incurring a material loss or quantification of any such loss. With respect to pending litigation matters as of the reporting date, based on information currently available, including the Company’s assessment of the facts underlying each matter and advice of counsel, the amount or range of reasonably possible losses, if any, cannot be |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Preparation | Basis of Preparation and Principles of ConsolidationThe consolidated financial statements have been prepared in conformity with United States generally accepted accounting principles (“U.S. GAAP”). |
Principles of Consolidation | The accompanying financial statements have been prepared on a consolidated basis and reflect the financial statements of ExlService Holdings, Inc. and all of its subsidiaries and includes the Company's share in the results of its associates. The standalone financial statements of subsidiaries are fully consolidated on a line-by-line basis. Intra-group balances and transactions, and gains and losses arising from intra-group transactions, are eliminated while preparing consolidated financial statements. The Company’s investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the consolidated statements of income. Accounting policies of the respective individual subsidiaries and equity affiliates are aligned wherever necessary, so as to ensure consistency with the accounting policies that are adopted by the Company under U.S. GAAP. For purposes of comparability, certain prior period amounts have been reclassified to conform to the current year presentation in accordance with U.S. GAAP. |
Use of Estimates | Use of EstimatesThe preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the consolidated statements of income during the reporting period. Although these estimates are based on management’s best assessment of the current business environment, actual results may be different from those estimates. The significant estimates and assumptions that affect the consolidated financial statements include, but are not limited to, estimates of the fair value of the identifiable intangible assets and contingent consideration, purchase price allocation, including revenue projections and the discount rate applied within the discounted cash flow model for business acquisitions, credit risk of customers, the nature and timing of the satisfaction of performance obligations, the standalone selling price of performance obligations, and variable consideration in a customer contract, expected recoverability from customers with contingent fee arrangements, estimated costs to complete fixed price contracts, recoverability of dues from statutory authorities, assets and obligations related to employee benefit plans, deferred tax valuation allowances, income-tax uncertainties and other contingencies, valuation of derivative financial instruments, stock-based awards, and debt instruments, assumptions used to calculate stock-based compensation expense, assumptions used to determine the incremental borrowing rate to calculate lease liabilities and right-of-use (“ROU”) assets, lease term to calculate amortization of ROU, depreciation and amortization periods, and recoverability of long-lived assets, goodwill and intangibles. |
Foreign Currency Translation | Foreign Currency TranslationThe functional currency of each entity in the Company is the currency of the primary economic environment in which it operates. Transactions in foreign currencies are initially recorded into functional currency at the rates of exchange prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are remeasured into functional currency at the rates of exchange prevailing at the balance sheet date. Non-monetary assets and liabilities are remeasured to the functional currency at exchange rates that prevailed on the date of inception of the transaction. All foreign exchange gains and losses arising on re-measurement are recorded in the Company's consolidated statements of income.The assets and liabilities of the subsidiaries for which the functional currency is other than the U.S. dollar are translated into U.S. dollars, the reporting currency, at the rate of exchange prevailing on the balance sheet date. Revenues and expenses are translated into U.S. dollars at the exchange rates prevailing on the last business day of each month, which approximates the average monthly exchange rate. Share capital and other equity items are translated at exchange rates that prevailed on the date of inception of the transaction. Resulting translation adjustments are included in “Accumulated other comprehensive income/(loss)” in the consolidated balance sheets. |
Revenue Recognition | Revenue Recognition Revenue is recognized when services are provided to the Company's customers, in an amount that reflects the consideration which the Company expect to be entitled to in exchange for the services provided. The Company recognizes revenue when it satisfies a performance obligation by providing services to a customer. Revenue is measured based on consideration specified in a contract with a customer and excludes value added tax, business tax, any applicable discounts and amounts collected on behalf of third parties. Reimbursements of out-of-pocket expenses are included as a part of revenue. Nature of Services The Company derives its revenues from digital operations and solutions and analytics services. The Company provides digital operations and solutions and analytics services helping businesses enhance revenue growth and improve profitability. Type of Contracts and Basis of Recognition i. a) Revenues under time-and-material, transaction and outcome-based contracts are recognized as the services are performed. When the terms of the client contract specify service level parameters that must be met (such as turnaround time or accuracy), the Company monitors such service level parameters to determine if any service credits or penalties have been incurred. Revenues are recognized net of any penalties or service credits that are due to a client. b) Revenues from arrangements involving subcontracting, either in part or whole of the assigned work, are recognized after the Company’s assessment of “Principal versus agent considerations.” The Company evaluates whether it is in control of the services before the same are transferred to the customer to assess whether it is principal or agent in the arrangement. Revenues are recognized on a gross basis if the Company is in the capacity of principal and on a net basis if it falls in the capacity of an agent. ii. Revenues for the Company’s fixed-price contracts, which include business support services provided on a fixed price basis or implementation of applications or solutions, are recognized considering costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the Company’s performance obligations. Incurred cost represents work performed, which corresponds with, and thereby reasonably reflects transfer of control to the client. The use of this method requires significant judgment to estimate the stage of completion and/or cost required to complete the contracted scope of work, including assumptions and estimates relative to the length of time to complete the project and the nature and complexity of the work to be performed and resources engaged. The Company regularly monitors these estimates throughout the execution of the project and records changes in the period in which a change in an estimate is determined. If a change in an estimate results in a projected loss on a project, such loss is recognized in the period in which it is first identified. iii. Revenue from the Company’s software and related services contracts, which are not significant, are primarily related to annual maintenance renewals or incremental license fees for additional users. Maintenance revenues are generally recognized on a straight-line basis over the annual contract term. Fees for incremental license without any associated services are recognized upon delivery of the related incremental license. To a lesser extent, certain contracts may include offerings such as sale of licenses, which may be perpetual or subscription-based. The Company recognizes revenue from distinct perpetual licenses upfront at a point in time when the software is made available to the client, whereas for a combined software license and services performance obligation, revenue is recognized over the period that the services are performed. Revenue from distinct subscription based licenses is recognized over the period of service performed. Revenue from any associated maintenance or ongoing support services is recognized over the term of the contract. iv. Revenues from reimbursement optimization services having contingent fee arrangements are recognized by the Company at the point in time when a performance obligation is satisfied, which is when it identifies an overpayment claim. In such contracts, the Company’s consideration is contingent upon the actual collections made by its customers and net of any subsequent retraction claims. Based on guidance on “variable consideration” in Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), the Company uses its historical experience and projections to determine the expected recoveries from its customers and recognizes revenue based upon such expected recoveries. Any adjustment required due to change in estimates are recorded in the period in which such change is identified. Modification to Contracts The Company’s contracts may be modified to add, remove or change existing performance obligations. The accounting for modifications to contracts involves assessing whether the services added to an existing contract are distinct and whether the pricing is at a standalone selling price. Services added that are distinct and at standalone selling price are accounted on a prospective basis either as a separate contract, or as a termination of existing contract and creation of a new contract. Arrangements with Multiple Performance Obligations The Company’s contracts with customers do not generally bundle different services together except for software and related services contracts, which are not significant, involving implementation services and post contract maintenance services. In such software and related services contracts, revenue is recognized based upon the transaction price allocated to each performance obligation based on the relative standalone selling price. Allocation of Transaction Price to Performance Obligations The transaction price is allocated to performance obligations on a relative standalone selling price basis. Standalone selling prices are estimated by reference to the total transaction price less the sum of the observable standalone selling prices of other goods or services promised in the contract. In assessing whether to allocate variable consideration to a specific part of the contract, the Company considers the nature of the variable payment and whether it relates specifically to its efforts to satisfy a specific part of the contract. Variable Consideration Variability in the transaction price arises primarily due to service level agreements and volume discounts. The Company considers its experience with similar transactions and expectations regarding the contract in estimating the amount of variable consideration that should be recognized during a period. The Company believes that the expected value method is most appropriate for determining the variable consideration since the Company has large number of contracts with similar nature of transactions/services. Unbilled Receivables Unbilled receivables represents revenues recognized for services rendered between the last billing date and the balance sheet date. Unbilled receivables also include revenues recognized from reimbursement optimization services where the Company identifies an overpayment claim. In such contracts, Company’s consideration is contingent upon and collectable only when the actual collections are made by its customers. Based on guidance on “variable consideration” in ASC Topic 606, Company use its historical experience and projections to determine the expected recoveries from its customers and recognize revenue and receivables based upon such expected recoveries. Accordingly, the amounts for which services have been performed and for which invoices have not been issued to customers on the balance sheet date, (i.e. unbilled receivables) are presented under accounts receivable, net. Deferred Revenue and Contract Fulfillment Costs The Company has contract liabilities (deferred revenue) consisting of advance billings and billing in excess of revenues recognized. Deferred revenue also includes the amount for which services have been rendered but other conditions of revenue recognition are not met, for example where the Company does not have an enforceable contract. Further, the Company also defers revenues attributable to certain process transition activities, with respect to its customers where such activities do not represent separate performance obligations. Revenues related to such transition activities are classified under “Deferred revenue” and “Other non-current liabilities” in the Company’s consolidated balance sheets and are recognized ratably over the period during which the related services are performed. Costs related to such transition activities are contract fulfillment costs, and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets, and are recognized over the expected duration of the relationship with customers, under “Cost of revenues” in the consolidated statements of income. Contract Acquisition Costs Direct and incremental costs incurred for acquiring contracts, such as sales commissions are contract acquisition costs and thereby classified under “Other current assets” and “Other assets” in the consolidated balance sheets. Such costs are amortized over the expected duration of the relationship with customers and recorded under Selling and marketing expenses in the consolidated statements of income. Upfront Payments Made to Customers Upfront payments, in nature of deal signing discount or deal signing bonuses made to customers are contract assets and classified under “Other current assets and Other assets” in the consolidated balance sheets. Such costs are amortized over the expected period of benefit and are recorded as an adjustment to transaction price and reduced from revenues. Out-of-Pocket Expenses Reimbursements of out-of-pocket expenses received from clients are included as part of revenues. Payment terms All contracts entered into by the Company specify the payment terms and are defined for each contract separately. Usual payment terms range between 30-60 days. The Company does not have any extended payment terms clauses in existing contracts. Remaining Performance Obligations The Company does not disclose the value of remaining performance obligations as a result of applying the practical expedient provided in ASC Topic 606, for contracts that meet any of the following criteria: i. Contracts with an original expected length of one year or less as determined under ASC Topic 606, ii. Contracts for which Company recognize revenue based on the right to invoice for service performed. |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash The Company considers all highly liquid investments purchased with an original maturity of ninety days or less to be cash equivalents. Pursuant to the Company’s investment policy, surplus funds are invested in highly-rated debt mutual funds, money market funds and time deposits to reduce its exposure to market risk with regard to these funds. Restricted cash includes any cash and cash equivalents that are legally restricted as to withdrawal or usage. The Company invests for a term of up to three months in money market funds, which invest in instruments of various maturities in the United States. These investments are accounted for in accordance with the fair value option under ASC Topic 825, Financial Instruments . The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold and is included in other income/(loss), net. For purposes of the statements of cash flows, the Company includes in its cash and cash-equivalent balances those amounts that have been classified as restricted cash and restricted cash equivalents. |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments The Company’s short-term investments consist of investments in mutual funds and those term deposits with more than three months of original maturity and less than twelve months of remaining maturity as of the reporting date, while long-term investments consist of term deposits with more than twelve months of remaining maturity as of the reporting date and investments in equity affiliate. The Company’s investments in term deposits with financial institutions are measured and recognized at amortized cost. Interest earned on such investments is included in other income/(loss), net. The Company’s mutual fund investments are in debt funds invested in India. These investments are accounted for in accordance with the fair value option under ASC Topic 825, Financial Instruments . The fair value is represented by original cost on the acquisition date and the net asset value (“NAV”) as quoted, at each reporting period and any changes in fair value are included in other income/(loss), net. Gain or loss on the disposal of these investments is calculated using the weighted average cost of the investments sold and is included in other income/(loss), net. Investments in equity affiliates are initially recorded at cost and any excess purchase consideration paid over proportionate share of the fair value of the net assets of the investee at the acquisition date is recognized as goodwill. The proportionate share of net income or loss of the investee after its acquisition is recognized in the consolidated statements of income. The Company periodically reviews the carrying value of its investment to determine if there has been any other than temporary decline in carrying value. The investment balance for an investee is increased or decreased for cash contribution and distributions to or from, respectively . |
Accounts Receivable and Allowance for Expected Credit Losses | Accounts Receivable and Allowance for Expected Credit Losses Accounts receivable are recorded net of allowances for expected credit losses. The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future. Accounts receivable balances are written-off against the allowance for expected credit losses after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable include unbilled accounts receivable which represent revenues on contracts to be billed, in subsequent periods, as per the terms of the related contracts. |
Property and equipment | Property and Equipment Property and equipment are stated at cost, which is generally comprised of the purchase price for such property or equipment, non-refundable duties and taxes, but excludes any discounts and/or rebates, less accumulated depreciation and impairment. Equipment held under finance leases are capitalized at the commencement of the lease at an amount equal to the lease liability, adjusted for any lease prepayments, initial direct costs and lease incentives, which usually approximate the fair value of the underlying asset. Expenditures for replacements and improvements are capitalized, if they enhance the production capacity and future benefits whereas the costs of maintenance and repairs are charged to earnings as incurred. Advances paid towards acquisition of property and equipment and the cost of property and equipment not yet placed in service before the end of the reporting period, net of impairment, if any, are classified as capital work in progress. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Property and equipment which are abandoned and disposed other than by sale, are assessed for revision of their useful life, thereby revising the future depreciation to reflect the use of property and equipment over the remaining shortened life. The Company reviews property and equipment for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. The estimated useful life have been disclosed in Note 9 - Property and Equipment, net to the consolidated financial statements. |
Software Development Costs | Software Development Costs The Company capitalizes certain costs related to the development or enhancements to existing software products to be sold, leased or otherwise marketed and / or used for internal-use. The Company begins to capitalize costs to develop or enhance software when planning stage efforts are successfully completed, management has authorized and committed project funding, and it is probable that the project will be completed and the software will be used as intended. Costs incurred prior to meeting these criteria, together with costs incurred for training and maintenance, are expensed as incurred and recorded within “General and administrative expenses” in the Company’s consolidated statements of income. The Company exercises judgment in determining the point at which various projects may be capitalized, in assessing the ongoing value of the capitalized costs, and in determining the estimated useful lives over which the costs are amortized. Implementation costs in cloud computing arrangements (“CCAs”), such as software as a service and other hosting arrangements are evaluated to ascertain if the arrangement includes a license to internal-use software. If a CCA does not provide a contractual right to the Company to take possession of the software at any time during the hosting period without significant penalty, and it is not feasible to either run the software on the Company’s own hardware, then implementation costs incurred are accounted for as a service contract. In case of the existence of such a contractual right to take possession of the software and the Company is able to run the software on its own hardware, then such implementation costs are capitalized as software development costs. Annual amortization of internally developed software products meant for sale, lease or otherwise marketing is the greater of the amount computed using the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product or the straight-line method over the remaining estimated economic life of the software product, generally estimated to be up to 5 years from the date the product became available for use. Annual amortization of internally developed software products meant for internal-use is based on the straight-line method over the estimated useful lives of the internally developed software products. The Company amortizes capitalized implementation costs in a CCA over the life of the service contract. |
Business Combinations, Goodwill and Other Intangible Assets | Business Combinations, Goodwill and Other Intangible Assets ASC Topic 805, Business Combinations, requires that the acquisition method of accounting be used for all business combinations. The guidance specifies criteria as to intangible assets acquired in a business combination that must be recognized and reported separately from goodwill. Contingent consideration is recognized at its fair value on the acquisition date. A liability resulting from contingent consideration is re-measured to fair value as of each reporting date until the contingency is resolved, whereby such changes in fair value are recognized in earnings. Under ASC Topic 350, Intangibles - Goodwill and Other , all assets and liabilities of the acquired businesses, including goodwill, are assigned to reporting units. Acquisition related costs are expensed as incurred under general and administrative expenses. In addition, assets acquired and liabilities assumed including uncertain tax positions and tax-related valuation allowances in connection with business combinations are initially estimated as of the acquisition date. The Company subsequently re-evaluates the assets acquired and liabilities assumed, including additional assets and liabilities identified subsequent to acquisition date, with any adjustments to its preliminary estimates being recorded to goodwill within the measurement period (up to one year from the acquisition date). Goodwill represents the cost of the acquired businesses in excess of the fair value of identifiable tangible and intangible net assets purchased in a business combination. Goodwill is not amortized but is tested for impairment at least on an annual basis, relying on a number of factors including operating results, business plans and estimated future cash flows of the reporting units to which it is assigned. The Company undertakes studies to determine the fair values of assets and liabilities acquired and allocate purchase consideration to assets and liabilities, including property and equipment, goodwill and other identifiable intangibles. The Company examines the carrying value of the goodwill annually in the fourth quarter, or more frequently, as circumstances warrant, to determine whether there are any impairment losses. The Company tests for goodwill impairment at the reporting unit level, as that term is defined in U.S. GAAP. Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for discussion of the Company's goodwill impairment testing. The Company adopted Accounting Standard Update (“ASU”) No. 2017-04, Simplifying the Test for Goodwill Impairment, effective January 1, 2018 in conjunction with our goodwill impairment assessment. The goodwill quantitative impairment test involves a comparison of the fair value of a reporting unit with its carrying amount. The Company estimates the fair value of a reporting unit using a combination of the income approach, using discounted cash flow analysis (“DCF model,”) and the market approach, using market multiples for reporting units whereby the fair value is not substantially in excess of carrying value. Under the income approach, fair value is determined based on the present value of estimated future cash flows, discounted at an appropriate risk-adjusted rate. The Company uses its internal forecasts to estimate future cash flows and include an estimate of long-term future growth rates based on its most recent views of the long-term outlook for each business. Actual results may differ from those assumed in our forecasts. The discount rate is based on judgment of the specific risk inherent in the future cash flows of the respective reporting units. The variables within the discount rate, many of which are outside of the Company’s control, provide the Company’s best estimate of all assumptions applied within the DCF model. Under the market approach, the Company estimates fair value based on market multiples of revenues and earnings derived from comparable publicly-traded companies with characteristics similar to the reporting unit and comparable market transactions. The market approach is used to corroborate the results of the income approach. The estimates used to calculate the fair value of a reporting unit change from year to year based on operating results, market conditions and other factors. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit. Determining fair value requires the use of estimates and exercise of significant judgment, including assumptions about appropriate discount rates, perpetual growth rates, amount and timing of expected future cash flows, market multiples of revenues and earnings and comparable market transactions. These estimates and judgements may not be within the control of the Company and accordingly it is reasonably possible that the estimates and judgments described above could change in future periods. There can be no assurance that operations will achieve the future cash flows reflected in the projections. If the carrying amount of the reporting unit exceeds its fair value, an impairment loss shall be recognized, in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. Intangible assets acquired in a business combination are initially valued and recognized at fair market value using generally accepted valuation methods appropriate for the type of intangible asset. Intangible assets with definite lives are amortized over the estimated useful lives and are reviewed for impairment, if indicators of impairment arise. The evaluation of impairment is based upon a comparison of the carrying amount of the intangible asset to its fair value, which is calculated using the estimated future undiscounted net cash flows expected to be generated by the asset. If the fair value of the intangible assets is less than the carrying amount of the asset, the asset is considered impaired and an impairment expense is recognized equal to any shortfall in the current period. The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Useful Lives Customer relationships 7-15 Developed technology 3-10 Non-compete agreements 4 Trade names and trademarks 2-10 |
Impairment of Long-lived Assets | Impairment of Long-lived AssetsLong-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Such assets are required to be tested for impairment if the carrying amount of the assets is higher than the future undiscounted net cash flows expected to be generated from the assets. Determining whether an impairment has occurred typically requires various estimates and assumptions, including determining which undiscounted cash flows are directly related to the potentially impaired asset, the useful life over which cash flows will occur, their amount, and the asset’s residual value, if any. In turn, measurement of an impairment loss requires a determination of fair value, which is based on the best information available. The Company derives the required undiscounted cash flow estimates from its historical experience and its internal business plans. To determine fair value, the Company follows the discounted cash flow approach and uses its internal cash flow estimates discounted at an appropriate discount rate and independent appraisals, as appropriate. The impairment amount to be recognized is measured as the amount by which the carrying value of the assets exceeds their fair value. |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, the Company uses derivative instruments to mitigate the exposure from risk of foreign currency and interest rate fluctuations. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted transactions denominated in certain foreign currencies, and interest rate swaps to hedge cash flow risks from its revolving credit facility having variable interest rate obligations. These contracts adhere to the Company’s treasury operations’ objectives and policies to qualify as cash flow hedges, and are with counterparties that are highly rated financial institutions. Changes in the fair value of these cash flow hedges are recorded as a component of accumulated other comprehensive income/(loss) (“AOCI”), net of tax. The resultant foreign exchange gain/(loss) upon settlement of cash flow hedges of forecasted transactions are recorded in the consolidated statements of income along with the underlying hedged item in the same line as part of “Cost of revenues,” “General and administrative expenses,” “Selling and marketing expenses,” and “Depreciation and amortization expense,” as applicable. The accumulated changes in the fair value of interest rate swaps recognized in AOCI are reclassified to the consolidated statements of income and are presented as a part of “Interest expense” over the term of the contract. The Company evaluates hedge effectiveness of cash flow hedges at the time a contract is entered into as well as on an ongoing basis. For hedge relationships that are discontinued because the forecasted transaction is not expected to occur by the end of the originally specified period, any related derivative amounts recorded in AOCI are reclassified to earnings. The Company also uses derivatives instruments consisting of foreign currency forward contracts to hedge intercompany balances and other monetary assets or liabilities denominated in currencies other than the functional currency, against the risk of foreign currency fluctuations associated with remeasurement of such assets and liabilities to functional currency. These derivatives do not qualify as fair value hedges under ASC Topic 815. Changes in the fair value of these derivatives are recognized in the consolidated statements of income and are included in foreign exchange gain, net. The Company also uses foreign currency forward contracts designated as net investment hedges to hedge the foreign currency risks related to the Company's investment in foreign subsidiaries. Fair value changes on these forward contracts and gains and losses on settlement of such forward contracts are recognized in AOCI as part of the foreign currency translation adjustments and are reclassified to consolidated statements of income when a foreign operation is disposed or partially disposed. All of the assets and liabilities related to the Company’s forward contracts are subject to master netting arrangements with each individual counterparty. These master netting arrangements generally provide for net settlement of all outstanding contracts with the counterparty in the case of an event of default or a termination event. The Company has presented all of the assets and liabilities related to these contracts on a gross basis, with no offsets, in its consolidated statements of financial position. There is no financial collateral (including cash collateral) provided or received by the Company related to these contracts. |
Employee Benefits | Employee Benefits Contributions to defined contribution plans are charged to the consolidated statements of income in the period in which services are rendered by the covered employees. Current service costs for defined benefit plans are recognized in the period to which they relate. The liability in respect of defined benefit plans is calculated annually by the Company using the projected unit credit method. The Company records annual amounts relating to its defined benefit plans based on calculations that incorporate various actuarial and other assumptions, including discount rates, mortality, assumed rates of return on plan assets, future compensation increases and attrition rates. The Company reviews its assumptions on an annual basis and makes modifications to the assumptions based on current rates and trends when it is appropriate to do so. The effect of modifications to those assumptions is recorded in other comprehensive income (loss) and amortized to net periodic benefit cost over the expected remaining period of service of the covered employees using the corridor method. The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable based on its experience and market conditions. These assumptions may not be within the control of the Company and accordingly it is reasonably possible that these assumptions could change in future periods. The Company includes the service cost component of the net periodic benefit cost in the same line item or items as other compensation costs arising from services rendered by the respective employees during the period. The interest cost, expected return on plan assets and amortization of actuarial gains/loss, are included in “ Other income/(loss), net. The Company recognizes its liabilities for compensated absences depending on whether the obligation is attributable to employee services already rendered, rights to compensated absences vest or accumulate and payment is probable and estimable. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense in the consolidated statements of income for awards of equity instruments to employees and non-employee directors based on the grant-date fair value of those awards. The Company recognizes these compensation costs on straight-line basis over the requisite service period of the award, or to the date on which retirement eligibility is achieved, if shorter. Forfeitures are accounted when the actual forfeitures occur. Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), which was adopted by the Company's stockholders on June 15, 2018, which replaces and supersedes the 2015 Amendment and Restatement of the Company’s 2006 Omnibus Award Plan (the “Prior Plan”) and is effective upon the date approved by the Company’s stockholders, the Company grants performance-based restricted stock units (“PRSU”) to executive officers and other specified employees. Generally, the Company grants PRSUs that cliff vest based on an aggregated revenue target (“PU”) for a three-year period, and PRSUs that are based on market conditions (“MU”) and cliff vest upon meeting or exceeding the Company's total shareholder return relative to a group of peer companies specified under the 2018 Plan, and are measured over a three-year performance period. The award recipient may earn up to 200% of the PRSUs granted based on the actual achievement of the respective targets. However, the features of the equity incentive compensation program are subject to change by the Compensation and Talent Management Committee of our board of directors. The fair value of each PU is determined based on the market price of one common share of the Company on the day prior to the date of grant, and the associated compensation expense is calculated on the basis that performance targets at 100% are probable of being achieved. The compensation expense for the PU is recognized on a straight-line basis over the service period, which is through the end of the third year. Over this period, the number of shares that will be issued is adjusted upward or downward based upon the probability of achievement of the performance targets. The final number of shares issued and the related compensation cost recognized as an expense will be based on a comparison of the final performance metrics to the specified targets. The expense related to the unvested PU as of December 31, 2022 was based on the Company's assessment of performance criteria for these grants that would most likely be met during the respective years of vesting against the targeted performance level. The grant date fair value for the MUs is determined using a Monte Carlo simulation model and the related compensation expense is expensed on a straight-line basis over the vesting period. All compensation expense related to the MU will be recognized if the requisite performance period is fulfilled, regardless of the extent of the market condition achieved. Stock-based compensation expense associated with the Company's 2022 Employee Stock Purchase Plan (“ESPP”) is measured at fair-value using a Black-Scholes option-pricing model at the commencement of each offering period and recognized over that offering period. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method of accounting for income taxes. The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. The deferred tax assets and liabilities are recognized for future tax consequences attributable to temporary differences between the financial statement carrying values of existing assets and liabilities and their respective tax bases and all operating losses carried forward, if any. Deferred tax assets and liabilities are measured using tax rates expected to apply to taxable income in the years in which the applicable temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates or tax status is recognized in the statements of income in the period in which the change is identified. The Company releases (reclassifies) the tax effects from AOCI to the consolidated statements of income at the time of settlement of cash flows hedges and amortization of deferred actuarial gain/(loss) on retirement benefits. Deferred tax assets are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company establishes provisions for uncertain tax provisions and related interest and penalties when the Company believes those tax positions are not more likely than not of being sustained, if challenged. The Company intends to indefinitely reinvest earnings from its foreign subsidiaries and has not recorded deferred tax liabilities for the indefinitely reinvested earnings. The Company accounts for the tax effects of Global Intangible Low-Taxed Income of certain foreign subsidiaries as a period cost. |
Concentration of Credit Risk in Financial Instruments | Concentration of Credit Risk in Financial Instruments Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, time deposits, mutual fund investments, accounts receivable and derivative financial instruments. By their nature, all such financial instruments involve risks including the credit risks of non-performance by counterparties. Pursuant to the Company’s investment policy, surplus funds are maintained as cash equivalents and short-term investments, and are invested in highly-rated mutual funds, money market funds and time deposits, placed with highly rated financial institutions to reduce its exposure to market risk with regard to these funds. The Company’s exposure to credit risk on account receivable is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customer s. To mitigate this risk the Company evaluates the creditworthiness of its clients in conjunction with its revenue recognition |
Fair value measurement | Fair value measurements ASC Topic 820, Fair Value Measurements and Disclosures defines fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability as against assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company’s own credit risk. The fair value hierarchy consists of the following three levels: • Level I — Quoted prices for identical instruments in active markets. • Level II — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level III — Instruments whose significant value drivers are unobservable. |
Leases | Leases The Company determines if an arrangement is a lease at inception of the contract. The Company’s assessment is based on whether: (1) the contract involves the use of a distinct identified asset, (2) the Company obtains the right to substantially all the economic benefit from the use of the asset throughout the term of the contract, and (3) the Company has the right to direct the use of the asset. A lease is classified as a finance lease if any one of the following criteria are met: (1) the lease transfers ownership of the asset by the end of the lease term, (2) the lease contains an option to purchase the asset that is reasonably certain to be exercised, (3) the lease term is for a major part of the remaining useful life of the asset or (4) the present value of the lease payments equals or exceeds substantially all of the fair value of the asset. Operating leases are recorded in “Operating lease right-of-use assets,” “Current portion of operating lease liabilities” and “Operating lease liabilities, less current portion” in the Company's consolidated balance sheets. Long-lived assets underlying finance leases are recorded in “Property and equipment” and the current and non-current portion of finance lease liabilities are presented within “Accrued expenses and other current liabilities” and “other non-current liabilities,” respectively, in the Company's consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset during the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease arrangement. Lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Operating lease ROU assets are recognized at commencement date in an amount equal to lease liability, adjusted for any lease prepayments, initial direct costs, and lease incentives. For leases in which the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at commencement date for determining the present value of lease payments. The Company determines the incremental borrowing rate by adjusting the benchmark reference rates with appropriate financing spreads applicable to the respective geographies where the leases are entered and lease specific adjustments for the effects of collateral. Lease terms includes the effects of options to extend or terminate the lease when it is reasonably certain at commencement of the lease that the Company will exercise that option. Lease expense for operating lease arrangements is recognized on a straight-line basis over the lease term. The Company evaluates lease agreements to determine lease and non-lease components, which are accounted for separately. Lease payments that depend on factors other than an index or rate are considered variable lease payments and are excluded from the operating lease assets and liabilities and are recognized as expense in the period in which the obligation is incurred. Lease payments include payments for common area maintenance, utilities such as electricity, heating and water, among others, and property taxes, and other similar payments paid to the landlord, which are treated as non-lease component. The Company accounts for lease-related concessions in accordance with guidance in Topic 842, Leases , to determine, on a lease-by-lease basis, whether the concession provided by lessor should be accounted for as a lease modification. The Company accounts for a modification as a separate contract when it grants an additional right of use not included in the original lease and the increase is commensurate with the standalone price for the additional right of use, adjusted for the |
Government Grants | Government GrantsGovernment grants are recognized at their fair value when there is a reasonable assurance that the conditions attached to them have been satisfied and the grants have been received. Government grants relating to income are recognized as a reduction of expenses in the consolidated statements of income. Government grants relating to a property and equipment are recognized as a reduction from the cost of acquisition of such property and equipment. The grant is subsequently measured in the consolidated statements of income over the life of the property and equipment in the form of reduced depreciation expense. |
Earnings per share | Earnings per share Basic earnings per share is computed using the weighted average number of common shares outstanding, adjusted for outstanding shares that are subject to repurchase during the period. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the period. For the purposes of calculating diluted earnings per share, the treasury stock method is used for stock-based awards and outstanding convertible notes except where the results would be anti-dilutive. The Company includes performance stock unit awards in dilutive potential common shares when they become contingently issuable and have a dilutive impact per authoritative guidance and excludes such awards when they are not contingently issuable. The Company calculates the dilutive effect of convertible notes using the treasury stock method through the maturity date of the convertible notes, if it has the intent and ability to settle the principal amount of the outstanding convertible notes in cash. Under the treasury stock method, the convertible notes shall have a dilutive impact related to the conversion premium, if any, on diluted earnings per share to the extent the issuance is dilutive based on the average market price of our common stock for a reporting period being greater the conversion price. |
Commitments and contingencies | Commitments and contingenciesLiabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties, and other sources are recognized when it is probable that a liability has been incurred and the amount of the assessment and/or remediation can be reasonably estimated. A disclosure for a contingent liability is made when there is a possible obligation that may require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Legal costs incurred in connection with such liabilities are expensed as incurred. Capital commitments are disclosed in the financial statements. |
Recent Accounting Pronouncements and Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements In October 2021, FASB (“Financial Accounting Standard Board”) issued ASU No. 2021-08, Business Combinations (“ASC Topic 805”) : Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . This ASU provides guidance in ASC Topic 805 to require the acquirer entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC Topic 606, as if it had originated the contracts. Generally, this should result in an acquirer recognizing and measuring the acquired contract assets and contract liabilities consistent with how they were recognized and measured in the acquiree’s financial statements, if the acquiree prepared financial statements in accordance with U.S. GAAP. The ASU is effective for fiscal years beginning after December 15, 2022. An entity may early adopt the ASU including adoption in an interim period, with retrospective application to all business combinations within the fiscal year that includes such interim period. The adoption of this ASU will not have a material impact on the Company’s consolidated financial statements. (w) Recently Adopted Accounting Pronouncements In March 2020, FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) : Facilitation of the Effects of Reference Rate Reform on Financial Reporting . This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as interbank offered rates and London Inter-Bank Offered Rate (“LIBOR”). The ASU provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are elective and are effective upon issuance for all entities through December 31, 2022. In December 2022, FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848) : Deferral of the Sunset Date of Topic 848 , to defer the sunset date of Topic 848 until December 31, 2024. The adoption of these ASUs did not have a material impact on the Company’s consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives | The Company’s definite lived intangible assets are amortized over their estimated useful lives as listed below using a straight-line method: Useful Lives Customer relationships 7-15 Developed technology 3-10 Non-compete agreements 4 Trade names and trademarks 2-10 |
Segment and Geographical Info_2
Segment and Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenues and Cost of Revenues for Company's Reportable Segments | Revenues and cost of revenues for the years ended December 31, 2022, 2021 and 2020, respectively, for each of the reportable segments, are as follows: Year ended December 31, 2022 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 448,704 $ 97,351 $ 218,638 $ 647,351 $ 1,412,044 Cost of revenues (1) 287,734 70,951 128,017 409,893 896,595 Gross profit (1) $ 160,970 $ 26,400 $ 90,621 $ 237,458 $ 515,449 Operating expenses 323,287 Foreign exchange gain, net, interest expense and other loss, net (2,063) Income tax expense 47,565 Gain from equity-method investment 434 Net income $ 142,968 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2021 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 381,999 $ 112,386 $ 167,236 $ 460,672 $ 1,122,293 Cost of revenues (1) 239,529 69,760 91,737 289,908 690,934 Gross profit (1) $ 142,470 $ 42,626 $ 75,499 $ 170,764 $ 431,359 Operating expenses 275,478 Loss on settlement of convertible notes, foreign exchange gain, net, interest expense and other income, net (9,320) Income tax expense 31,850 Gain from equity-method investment 47 Net income $ 114,758 (1) Exclusive of depreciation and amortization expense. Year ended December 31, 2020 Insurance Healthcare Emerging Business Analytics Total Revenues, net $ 341,770 $ 101,315 $ 152,670 $ 362,679 $ 958,434 Cost of revenues (1) 231,884 73,143 89,459 229,450 623,936 Gross profit (1) $ 109,886 $ 28,172 $ 63,211 $ 133,229 $ 334,498 Operating expenses 224,476 Foreign exchange gain, net, interest expense and other income, net 5,307 Income tax expense 25,626 Loss from equity-method investment 227 Net income $ 89,476 (1) Exclusive of depreciation and amortization expense. Revenues, net by service type, were as follows: Year ended December 31, 2022 2021 2020 Digital operations and solutions (1) $ 764,693 $ 661,621 $ 595,755 Analytics services 647,351 460,672 362,679 Revenues, net $ 1,412,044 $ 1,122,293 $ 958,434 (1) Digital operations and solutions include revenues of the Company’s Insurance, Healthcare and Emerging Business reportable segments. Refer to the reportable segment disclosure above. |
Revenues Based on Geographical Information | The Company attributes the revenues to regions based upon the location of its customers. Year ended December 31, 2022 2021 2020 Revenues, net United States $ 1,213,477 $ 964,059 $ 814,672 Non-United States United Kingdom 134,630 105,734 88,659 Rest of World 63,937 52,500 55,103 Total Non-United States 198,567 158,234 143,762 Revenues, net $ 1,412,044 $ 1,122,293 $ 958,434 |
Property and Equipment, Net Based on Geographical Information | Long-lived assets by geographic area, which consist of property and equipment, net and operating lease right-of-use assets were as follows: As of December 31, 2022 December 31, 2021 Long-lived assets United States $ 60,709 $ 50,095 India 50,118 79,604 Philippines 18,406 22,011 Rest of World 8,942 10,990 Long-lived assets $ 138,175 $ 162,700 |
Revenues, net (Tables)
Revenues, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Receivables, Assets and Liabilities Recognized | The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers: As of December 31, 2022 December 31, 2021 Accounts receivable, net $ 259,222 $ 194,232 Contract assets $ 2,768 $ 2,524 Contract liabilities: Deferred revenue (consideration received in advance) $ 17,079 $ 18,247 Consideration received for process transition activities $ 5,423 $ 2,203 Revenue recognized during the years ended December 31, 2022 and 2021, which was included in the contract liabilities balance at the beginning of the respective periods: Year ended December 31, 2022 2021 Deferred revenue (consideration received in advance) $ 17,964 $ 30,089 Consideration received for process transition activities $ 1,635 $ 1,886 |
Contract Acquisition and Fulfillment Costs | The following table provides details of the Company’s contract acquisition and fulfillment costs: Contract Acquisition Costs Contract Fulfillment Costs Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Opening Balance $ 511 $ 1,027 $ 5,795 $ 5,631 Additions 1,014 277 15,509 3,742 Amortization (430) (793) (7,433) (3,578) Closing Balance $ 1,095 $ 511 $ 13,871 $ 5,795 |
Movement in Allowance for Expected Credit Loss | As of December 31, 2022 December 31, 2021 Accounts receivable, including unbilled receivables $ 260,554 $ 194,805 Less: Allowance for expected credit losses (1,332) (573) Accounts receivable, net $ 259,222 $ 194,232 The movement in “Allowance for expected credit losses” on customer balances was as follows: Year ended December 31, 2022 2021 Opening Balance $ 573 $ 1,189 Additions / (reductions) 815 (496) Reductions due to write-off of Accounts Receivables (60) (129) Translation adjustment 4 9 Closing Balance $ 1,332 $ 573 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per share: Year ended December 31, 2022 2021 2020 Numerators: Net income $ 142,968 $ 114,758 $ 89,476 Denominators: Basic weighted average common shares outstanding 33,330,317 33,549,275 34,273,388 Dilutive effect of share-based awards 503,541 408,693 254,717 Dilutive effect of conversion premium on the Notes — 286,510 27,059 Diluted weighted average common shares outstanding 33,833,858 34,244,478 34,555,164 Earnings per share attributable to ExlService Holdings, Inc. stockholders: Basic $ 4.29 $ 3.42 $ 2.61 Diluted $ 4.23 $ 3.35 $ 2.59 Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share 566 10,705 289,061 |
Other Income_(Loss), net (Table
Other Income/(Loss), net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of Other Income, net | Other income/(loss), net consists of the following: Year ended December 31, 2022 2021 2020 Gain on sale and mark-to-market on investments $ 4,907 $ 4,891 $ 9,615 Interest and dividend income 5,229 2,726 2,501 Fair value changes of contingent consideration* (8,250) — — Others, net (1,896) (844) (51) Other income/(loss), net $ (10) $ 6,773 $ 12,065 * Refer to Note 10 - Business Combinations, Goodwill and Other Intangible Assets to the consolidated financial statements for further details. |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | For the purposes of statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of December 31, 2022 December 31, 2021 December 31, 2020 Cash and cash equivalents $ 118,669 $ 135,337 $ 218,530 Restricted cash (current) 4,897 6,174 4,690 Restricted cash (non-current) 2,055 2,299 2,299 Cash, cash equivalents and restricted cash $ 125,621 $ 143,810 $ 225,519 |
Restrictions on Cash and Cash Equivalents | For the purposes of statements of cash flows, cash, cash equivalents and restricted cash consist of the following: As of December 31, 2022 December 31, 2021 December 31, 2020 Cash and cash equivalents $ 118,669 $ 135,337 $ 218,530 Restricted cash (current) 4,897 6,174 4,690 Restricted cash (non-current) 2,055 2,299 2,299 Cash, cash equivalents and restricted cash $ 125,621 $ 143,810 $ 225,519 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Investment | Investments consist of the following: As of December 31, 2022 December 31, 2021 Short-term investments Mutual funds $ 110,964 $ 127,551 Term deposits 68,063 51,879 Total Short-term investments $ 179,027 $ 179,430 Long-term investments Term deposits $ 31,341 $ 186 Investment in equity affiliate 3,438 3,004 Total Long-term investments $ 34,779 $ 3,190 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment, net consists of the following: As of Estimated useful lives (Years) December 31, 2022 December 31, 2021 Owned Assets: Network equipment and computers 3-5 $ 130,218 $ 116,023 Software 2-5 88,487 101,884 Leasehold improvements 3-8 42,890 46,401 Office furniture and equipment 3-8 20,211 22,302 Motor vehicles 2-5 605 693 Buildings 30 961 1,070 Land — 629 700 Capital work in progress — 14,459 10,288 298,460 299,361 Less: Accumulated depreciation and amortization (216,132) (213,699) $ 82,328 $ 85,662 Right-of-use assets under finance leases*: Network equipment and computers 82 91 Leasehold improvements 1,013 1,229 Office furniture and equipment 662 787 Motor vehicles 742 578 2,499 2,685 Less: Accumulated depreciation and amortization (1,999) (2,339) $ 500 $ 346 Property and equipment, net $ 82,828 $ 86,008 *Depreciation on assets held under finance leases are computed using the straight-line method over the shorter of the assets estimated useful lives or the lease term. The depreciation and amortization expense, excluding amortization of acquisition-related intangibles, recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Depreciation and amortization expense $ 39,173 $ 36,354 $ 36,050 The effect of foreign exchange gain/(loss) upon settlement of cash flow hedges recorded under depreciation and amortization expense, was as follows: Year ended December 31, 2022 2021 2020 Effect of foreign exchange gain/(loss) $ (180) $ 524 $ 51 Internally developed software costs, included under Software, was as follows: As of December 31, 2022 December 31, 2021 Cost $ 31,544 $ 19,289 Less : Accumulated amortization (16,134) (10,226) Internally developed software, net $ 15,410 $ 9,063 The amortization expense on internally developed software recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Amortization expense $ 5,958 $ 4,253 $ 4,894 |
Business Combinations, Goodwi_2
Business Combinations, Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Assets and Liabilities Acquired | The tables below presents the fair value of the consideration exchanged and the allocation of purchase consideration to the major classes of assets and liabilities of Clairvoyant as of December 16, 2021: Assets: Cash and cash equivalents $ 5,598 Accounts receivable, net 8,709 Other current assets 360 Property and equipment, net 398 Intangible assets, net Customer relationships 31,600 Developed technology 2,070 Trade names and trademarks 300 Non-compete agreements 300 Other assets 217 Total assets $ 49,552 Liabilities: Accounts payable $ (1,199) Accrued expenses and other current liabilities (4,873) Deferred tax liabilities (9,383) Other non-current liabilities (1,226) Total liabilities (16,681) Net assets acquired 32,871 Goodwill 57,454 Total purchase consideration* $ 90,325 * Includes contingent consideration of $9,000 recognized at fair value as of the date of acquisition . |
Schedule of Goodwill | The following table sets forth details of changes in goodwill by reportable segment of the Company: Insurance Healthcare Emerging Business Analytics Total Balance as of January 1, 2021 $ 50,499 $ 21,953 $ 49,348 $ 227,288 $ 349,088 Acquisition — — — 55,225 55,225 Currency translation adjustments (71) (11) (328) (1) (411) Balance as of December 31, 2021 $ 50,428 $ 21,942 $ 49,020 $ 282,512 $ 403,902 Acquisition — — — 1,992 1,992 Measurement period adjustments — — — 2,229 2,229 Currency translation adjustments (499) (67) (1,919) (1) (2,486) Balance as of December 31, 2022 $ 49,929 $ 21,875 $ 47,101 $ 286,732 $ 405,637 |
Schedule of Indefinite Lived Intangible Assets | Information regarding the Company’s intangible assets is set forth below: As of December 31, 2022 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 99,146 $ (39,848) $ 59,298 Developed technology 24,878 (20,902) 3,976 Trade names and trademarks 1,700 (1,303) 397 Non-compete agreements 336 (88) 248 126,060 (62,141) 63,919 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 126,960 $ (62,141) $ 64,819 As of December 31, 2021 Gross Accumulated Net Carrying Finite-lived intangible assets: Customer relationships $ 103,016 $ (33,018) $ 69,998 Developed technology 25,040 (15,850) 9,190 Trade names and trademarks 1,700 (1,006) 694 Non-compete agreements 300 — 300 130,056 (49,874) 80,182 Indefinite-lived intangible assets: Trade names and trademarks 900 — 900 Total intangible assets $ 130,956 $ (49,874) $ 81,082 |
Schedule of Amortization of Intangible Assets | The amortization expense recognized in the consolidated statements of income was as follows: Year ended December 31, 2022 2021 2020 Amortization expense $ 17,109 $ 12,778 $ 14,412 |
Schedule of Finite Lived Intangible Assets Useful Lives | The remaining weighted average life of intangible assets is as follows: (in years) Customer relationships 5.5 Developed technology 1.4 Trade names and trademarks (finite lived) 1.5 Non-compete agreements 2.8 |
Schedule of Estimated Future Amortization of Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets as of December 31, 2022 was as follows: 2023 $ 14,646 2024 12,135 2025 10,698 2026 10,363 2027 9,364 2028 and thereafter 6,713 Total $ 63,919 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consist of the following: As of December 31, 2022 December 31, 2021 Prepaid expenses $ 18,132 $ 14,655 Receivables from statutory authorities 15,724 18,023 Advance income tax, net 5,716 15,199 Advances to suppliers 1,944 1,464 Derivative instruments 1,526 8,682 Deferred contract fulfillment costs 1,178 1,483 Contract assets 904 1,319 Others 5,855 2,146 Other current assets $ 50,979 $ 62,971 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consist of the following: As of December 31, 2022 December 31, 2021 Deferred contract fulfillment costs $ 12,693 $ 4,312 Lease deposits 6,621 9,649 Deposits with statutory authorities 6,276 6,417 Contract assets 1,864 1,205 Derivative instruments 820 6,307 Receivable from Statutory authorities — 222 Others 3,795 2,071 Other assets $ 32,069 $ 30,183 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: As of December 31, 2022 December 31, 2021 Accrued expenses $ 47,854 $ 44,405 Payable to statutory authorities 20,430 13,902 Derivative instruments 10,059 1,852 Client liabilities 5,110 6,097 Contingent consideration 5,000 — Accrued capital expenditures 4,032 8,630 Interest payable 451 252 Finance lease liabilities 164 141 Other current liabilities 2,252 1,071 Accrued expenses and other current liabilities $ 95,352 $ 76,350 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Liabilities, Noncurrent [Abstract] | |
Summary of Other Non-Current Liabilities | Other non-current liabilities consist of the following: As of December 31, 2022 December 31, 2021 Contingent consideration $ 13,689 $ 9,000 Retirement benefits 12,982 9,604 Derivative instruments 6,218 1,785 Deferred transition revenue 4,408 995 Unrecognized tax benefits 2,329 1,068 Income taxes payable — 1,790 Finance lease liabilities 355 229 Others 1,311 120 Other non-current liabilities $ 41,292 $ 24,591 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income/( Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income/( Loss) | The following table sets forth the changes in AOCI during the years ended December 31, 2022, 2021 and 2020: Accumulated Other Comprehensive Income/(Loss) Foreign currency translation loss Unrealized gain/(loss) on cash flow hedges Retirement benefits Total Balance as of January 1, 2020 $ (87,591) $ 4,098 $ (1,399) $ (84,892) Gains / (losses) recognized during the year (540) 12,665 (2,401) 9,724 Reclassification to net income — (801) 394 (407) Income tax effects (2) 1,946 (2,163) 808 591 Accumulated other comprehensive income/(loss) as of December 31, 2020 $ (86,185) $ 13,799 $ (2,598) $ (74,984) Gains / (losses) recognized during the year (11,134) 4,663 (558) (7,029) Losses on net investment hedges (1,134) — — (1,134) Reclassification to net income (1) — (9,264) 709 (8,555) Income tax effects (2) 3,016 (778) (10) 2,228 Accumulated other comprehensive income/(loss) as of December 31, 2021 $ (95,437) $ 8,420 $ (2,457) $ (89,474) Gains / (losses) recognized during the year (47,734) (27,333) 2,574 (72,493) Reclassification to net income (1) — 1,295 592 1,887 Income tax effects (2) 10,032 6,315 (410) 15,937 Accumulated other comprehensive income/(loss) as of December 31, 2022 $ (133,139) $ (11,303) $ 299 $ (144,143) 1. Refer to Note 17 - Derivatives and Hedge Accounting and Note 20 - Employee Benefit Plans to the consolidated financial statements for reclassification to net income. 2. These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation loss. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were recognized at fair value: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2022 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 1,137 $ — $ — $ 1,137 Mutual funds** 110,964 — — 110,964 Derivative financial instruments — 2,346 — 2,346 Total $ 112,101 $ 2,346 $ — $ 114,447 Liabilities Derivative financial instruments $ — $ 16,277 $ — $ 16,277 Contingent consideration*** — — 18,689 18,689 Total $ — $ 16,277 $ 18,689 $ 34,966 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Other Unobservable Inputs As of December 31, 2021 (Level 1) (Level 2) (Level 3) Total Assets Cash equivalents - Money market funds* $ 5,374 $ — $ — $ 5,374 Mutual funds** 127,551 — — 127,551 Derivative financial instruments — 14,989 — 14,989 Total $ 132,925 $ 14,989 $ — $ 147,914 Liabilities Derivative financial instruments $ — $ 3,637 $ — $ 3,637 Contingent consideration*** — — 9,000 9,000 Total $ — $ 3,637 $ 9,000 $ 12,637 * Represents money market funds which are carried at the fair value option under ASC Topic 825 “ Financial Instruments ” . ** Represents those short-term investments which are carried at the fair value option under ASC Topic 825 “ Financial Instruments ” . *** Contingent consideration is presented under “Accrued Expenses and Other Current Liabilities” and “Other Non-Current Liabilities,” as applicable, in the consolidated balance sheets. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the changes in the fair value of contingent consideration: Year ended December 31, 2022 2021 Opening balance $ 9,000 $ — Acquisitions 1,439 9,000 Fair value changes 8,250 — Closing balance $ 18,689 $ 9,000 During the years ended December 31, 2022, 2021 and 2020, there were no transfers among Level 1, Level 2 and Level 3. |
Derivatives and Hedge Account_2
Derivatives and Hedge Accounting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Foreign Currency Exchange Contracts | The following table sets forth the aggregate notional principal amounts of outstanding foreign currency forward contracts for derivatives not designated as hedging instruments: As of Foreign currency forward contracts denominated in: December 31, 2022 December 31, 2021 U. S. dollar (USD) 163,990 134,612 U.K. pound sterling (GBP) 8,351 6,763 Euro (EUR) 1,956 1,343 Australian dollar (AUD) 1,951 — Colombian peso (COP) — 2,541,902 The following table sets forth the fair value of the foreign currency forward contracts and interest rate swaps and their location on the consolidated balance sheets: Derivatives in cash flow hedging relationships Derivatives not designated as hedging instruments As of As of December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Assets: Other current assets $ 1,271 $ 8,669 $ 255 $ 13 Other assets $ 820 $ 6,307 $ — $ — Liabilities: Accrued expenses and other current liabilities $ 10,044 $ 1,324 $ 15 $ 528 Other non-current liabilities $ 6,218 $ 1,785 $ — $ — |
Summary of Effect of Foreign Currency Exchange Contracts on Consolidated Statements of Income/(Loss) | The following tables set forth the effect of foreign currency forward contracts and interest rate swaps on AOCI and the consolidated statements of income: Year ended December 31, Derivative financial instruments: 2022 2021 2020 Unrealized gain/(loss) recognized in AOCI Derivatives in cash flow hedging relationships $ (27,333) $ 4,663 $ 12,665 Gain/(loss) recognized in consolidated statements of income Derivatives not designated as hedging instruments $ (9,571) $ 196 $ 3,686 Location and amount of gain/(loss) recognized in consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments: Year ended December 31, 2022 2021 2020 As per consolidated statements of income Gain/(loss) on derivative financial instruments As per consolidated statements of income Gain on derivative financial instruments As per consolidated statements of income Gain/(loss) Cash flow hedging relationships Location in consolidated statements of income where gain/(loss) was reclassified from AOCI Cost of revenues $ 896,595 $ (1,304) $ 690,934 $ 7,785 $ 623,936 $ 1,008 General and administrative expenses $ 169,016 141 $ 142,040 948 $ 113,891 (161) Selling and marketing expenses $ 97,989 10 $ 84,306 53 $ 60,123 (5) Depreciation and amortization expense $ 56,282 (32) $ 49,132 478 $ 50,462 (41) Interest expense $ 8,252 (110) $ 7,561 — $ 11,190 — Total before tax (1,295) 9,264 801 Income tax effects on above (455) (1,530) 500 Net of tax $ (1,750) $ 7,734 $ 1,301 Derivatives not designated as hedging instruments Location in consolidated statements of income where gain/(loss) was recognized Foreign exchange gain, net $ 6,199 $ (9,571) $ 4,313 $ 196 $ 4,432 $ 3,686 $ 6,199 $ (9,571) $ 4,313 $ 196 $ 4,432 $ 3,686 |
Summary of Effect of Net Investment Hedges on Accumulated Other Comprehensive Income | Effect of net investment hedges on AOCI: Year ended December 31, Amount of loss recognized in AOCI Net investment hedging relationships 2022 2021 2020 Foreign currency forward contracts $ — $ 1,134 $ — |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Company's Debt Position | The following tables summarizes the Company’s debt position: As of December 31, 2022 2021 Revolving credit facility Current portion of long-term borrowings $ 30,000 $ 260,016 Long-term borrowings 220,000 — Total borrowings $ 250,000 $ 260,016 |
Schedule of Credit Facilities Carried an Effective Interest Rate | The revolving credit facility carried an effective interest rate as shown below: Year ended December 31, 2022 2021 2020 Effective Interest Rate 2.9 % 1.7 % 2.3 % The Notes carried an effective interest rate as shown below: Year ended December 31, 2021 2020 Effective Interest Rate 3.6 % 3.6 % |
Schedule of Principal Maturities of Borrowings | Expected payments for all of the Company’s borrowings as of December 31, 2022 were as follows: Revolving credit facility Principal Payments Interest Payments* 2023 $ 30,000 $ 12,374 2024 — 11,926 2025 — 11,926 2026 — 11,926 2027 220,000 4,472 Total $ 250,000 $ 52,624 * Interest payments are based on effective interest rate as of December 31, 2022. |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock | The Company purchased shares of its common stock from employees in connection with withholding tax payments related to the vesting of restricted stock units and performance-based restricted stock units, as below: Shares repurchased Total consideration Weighted average purchase price per share (1) Twelve months ended December 31, 2022 32,816 $ 4,121 $ 125.58 Twelve months ended December 31, 2021 31,309 $ 2,752 $ 87.90 Twelve months ended December 31, 2020 28,052 $ 2,131 $ 75.96 |
Summary of Company's Purchased Shares of its Common Stock, Including Commissions | The Company purchased shares of its common stock, for a total consideration including commissions, under repurchase programs, as below: Shares repurchased Total consideration Weighted average purchase price per share Twelve months ended December 31, 2022 503,858 $ 68,521 $ 135.99 Twelve months ended December 31, 2021 1,087,325 $ 115,605 $ 106.32 Twelve months ended December 31, 2020 1,085,153 $ 77,818 $ 71.71 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Summary of Change in Projected Benefit Obligation | The following table sets forth the activity and the funded status of the gratuity plans and the amounts recognized in the Company’s consolidated financial statements at the end of the relevant periods: Change in projected benefit obligation 2022 2021 Projected benefit obligation as of January 1 $ 23,271 $ 20,466 Service cost 3,770 3,512 Interest cost 1,232 929 Benefits paid (1,757) (1,844) Acquisition adjustments — 209 Actuarial (gain)/loss* (2,639) 539 Effect of exchange rate changes (2,346) (540) Projected benefit obligation as of December 31 $ 21,531 $ 23,271 Change in Plan Assets Plan assets as of January 1 $ 13,605 $ 11,512 Actual return 798 777 Employer contribution 3,273 3,361 Benefits paid (1,737) (1,835) Effect of exchange rate changes (1,490) (210) Plan assets as of December 31 $ 14,449 $ 13,605 Unfunded status as of December 31 $ 7,082 $ 9,666 Unfunded amount recognized in the consolidated balance sheets Non-current liability (included under other non-current liabilities) $ 6,971 $ 9,604 Current liability (included under accrued employee costs) 111 62 Total accrued liability $ 7,082 $ 9,666 Accumulated benefit obligation as of December 31 $ 14,447 $ 14,794 Accumulated benefit obligation in excess of plan assets as of December 31 $ (2) $ 1,189 |
Components of Net Periodic Benefit Costs | Components of net periodic benefit costs recognized in consolidated statements of income and actuarial loss reclassified from AOCI, were as follows: Year ended December 31, 2022 2021 2020 Service cost $ 3,770 $ 3,512 $ 2,706 Interest cost 1,232 929 964 Expected return on plan assets (872) (796) (636) Amortization of actuarial loss, gross of tax 592 709 394 Net gratuity cost $ 4,722 $ 4,354 $ 3,428 Amortization of actuarial loss, gross of tax $ 592 $ 709 $ 394 Income tax effects on above (179) (204) (127) Amortization of actuarial loss, net of tax $ 413 $ 505 $ 267 |
Summary of Components of Actuarial Gain/(Loss) | The components of actuarial loss on retirement benefits included in AOCI, excluding tax effects, were as follows: As of December 31, 2022 2021 2020 Net actuarial loss $ (462) $ (3,624) $ (3,772) Net prior service cost (8) (12) (15) Amount recognized in AOCI, excluding tax effects $ (470) $ (3,636) $ (3,787) |
Summary of Weighted Average Actuarial Assumptions | The weighted average actuarial assumptions used to determine benefit obligations and net gratuity cost were: December 31, 2022 2021 2020 Discount rate 7.3 % 5.6 % 4.6 % Rate of increase in compensation levels 7.8 % 7.6 % 7.1 % Expected long-term rate of return on plan assets per annum 7.3 % 6.8 % 7.0 % |
Summary of Expected Benefit Payments | Expected benefit payments during the year ending December 31, 2023 $ 3,475 2024 $ 3,183 2025 $ 2,897 2026 $ 2,661 2027 $ 2,661 2028 to 2032 $ 8,388 |
Schedule of Company's Contribution Plan | The Company’s accrual for contributions to the 401(k) Plans were as follows: Year ended December 31, 2022 2021 2020 Contribution to the 401(k) Plans $ 5,205 $ 3,693 $ 3,577 The Company’s contribution for various defined social security contribution plans on behalf of employees in foreign subsidiaries of the Company were as follows: Year ended December 31, 2022 2021 2020 Contributions to the defined social security contribution plans $ 18,215 $ 16,340 $ 11,332 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Balance Sheet Information | Supplemental balance sheet information As of December 31, 2022 December 31, 2021 Operating Lease Operating lease right-of-use assets $ 55,347 $ 76,692 Operating lease liabilities - Current $ 14,978 $ 18,487 Operating lease liabilities - Non-current 48,155 68,506 Total operating lease liabilities $ 63,133 $ 86,993 Finance Lease Property and equipment, gross $ 2,499 $ 2,685 Accumulated depreciation (1,999) (2,339) Property and equipment, net $ 500 $ 346 Finance lease liabilities - Current $ 164 $ 141 Finance lease liabilities - Non-current 355 229 Total finance lease liabilities $ 519 $ 370 |
Schedule of Components of Lease Cost | The components of lease cost, which are included in the Company’s consolidated statements of income, are as follows: Year ended December 31, Lease cost 2022 2021 Finance lease: Amortization of right-of-use assets $ 151 $ 188 Interest on lease liabilities 59 63 210 251 Operating lease (a) 21,783 26,326 Variable lease costs 5,033 7,621 Total lease cost $ 27,026 $ 34,198 (a) Includes short-term leases, which are immaterial. |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow and other information related to leases are as follows: Year ended December 31 2022 2021 Cash payments for amounts included in the measurement of lease liabilities : Operating cash outflows for operating leases $ 23,227 $ 25,674 Operating cash outflows for finance leases $ 59 $ 63 Financing cash outflows for finance leases $ 142 $ 201 Right-of-use assets obtained in exchange for new operating lease liabilities $ 734 $ 4,547 Right-of-use assets obtained in exchange for new finance lease liabilities $ 312 $ 71 Weighted-average remaining lease term (in years) Finance lease 2.8 years 2.1 years Operating lease 5.9 years 5.8 years Weighted-average discount rate Finance lease 14.3% 14.5% Operating lease 6.8% 7.2% |
Schedule of Maturities of Operating Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments 108,765 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of lease liabilities as of December 31, 2022 were as follows: Operating Leases Finance Leases 2023 $ 18,711 $ 228 2024 14,846 162 2025 10,037 114 2026 8,941 88 2027 6,474 79 2028 and thereafter 19,624 — Total lease payments 78,633 671 Less: Imputed interest 15,500 152 Present value of lease liabilities $ 63,133 $ 519 Maturities of lease liabilities as of December 31, 2021 were as follows: Operating Leases Finance Leases 2022 $ 24,020 $ 185 2023 22,666 147 2024 17,745 72 2025 10,741 34 2026 8,395 17 2027 and thereafter 25,198 — Total lease payments 108,765 455 Less: Imputed interest 21,772 85 Present value of lease liabilities $ 86,993 $ 370 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Components of Income /(Loss) Before Income Taxes | The components of income/(loss) before income taxes consist of the following: Year ended December 31, 2022 2021 2020 Domestic $ 80,949 $ 43,759 $ 30,893 Foreign 109,150 102,802 84,436 $ 190,099 $ 146,561 $ 115,329 |
Summary of Income Tax Expense/(Benefit) | Income tax expense/(benefit) consists of the following: Year ended December 31, 2022 2021 2020 Current provision: Domestic $ 43,416 $ 18,532 $ 7,946 Foreign 23,701 33,644 14,983 $ 67,117 $ 52,176 $ 22,929 Deferred provision/(benefit): Domestic $ (17,624) $ (15,954) $ 1,343 Foreign (1,928) (4,372) 1,354 $ (19,552) $ (20,326) $ 2,697 Income tax expense $ 47,565 $ 31,850 $ 25,626 |
Schedule of Income Tax Recognized in Other Comprehensive Income | Income taxes (deferred) recognized in AOCI were as follows: Year ended December 31, 2022 2021 2020 Deferred taxes benefit / (expense) recognized on: Unrealized gain/(loss) on cash flow hedges $ 5,860 $ (2,308) $ (1,663) Reclassification adjustment for cash flow hedges 455 1,530 (500) Retirement benefits (incl. effects of tax rate changes) (231) 194 935 Reclassification adjustment for retirement benefits (179) (204) (127) Foreign currency translation loss 10,032 3,016 1,946 Total income tax benefit recognized in AOCI $ 15,937 $ 2,228 $ 591 |
Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes | The effective income tax rate differs from the amount computed by applying the U.S. federal statutory income tax rate to income before income taxes approximately as follows: Year ended December 31, 2022 2021 2020 Expected tax expense $ 39,921 $ 30,777 $ 24,219 Foreign tax rate differential (1,136) 1,127 (2,748) Deferred tax provision 3,801 350 2,888 Unrecognized tax benefits 273 161 6 State taxes, net of Federal taxes 7,730 4,968 3,242 Non-deductible expenses 6,285 3,165 1,467 Excess tax benefit on stock-based compensation (5,881) (3,651) (2,378) Research and development credits (2,230) (1,727) (918) Prior period items (688) (931) (182) Benefit on settlement of convertible notes — (2,411) — Others (510) 22 30 Tax expense $ 47,565 $ 31,850 $ 25,626 |
Summary of Components of Deferred Tax Balances | The components of the deferred tax balances were as follows: As of December 31, 2022 December 31, 2021 Deferred tax assets: Tax credit carry forward $ 5,716 $ 16,236 Depreciation and amortization expense 14,734 10,722 Capitalized research and development expenses 24,743 — Stock-based compensation 11,425 10,760 Accrued employee costs and other expenses 15,504 13,264 Net operating loss carryforwards 412 2,057 Net unrealized foreign exchange loss 23,572 408 Deferred rent 3,120 4,454 Others 272 642 99,498 58,543 Valuation allowance (309) (188) Deferred tax assets $ 99,189 $ 58,355 Deferred tax liabilities: Intangible assets $ 27,807 $ 28,119 Net unrealized gain on investments 6,006 5,840 Others 10,132 3,957 Deferred tax liabilities $ 43,945 $ 37,916 Net deferred tax assets $ 55,244 $ 20,439 |
Summary of Activity Related to Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the unrecognized tax benefits: Year ended December 31, 2022 2021 2020 Balance as of January 1 $ 1,068 $ 907 $ 1,047 Increases/(decreases) related to prior year tax positions 158 (12) (324) Increases related to current year tax positions 223 173 184 Balance as of December 31 $ 1,449 $ 1,068 $ 907 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Costs Related to Company's Stock-Based Compensation Plan | Stock-based compensation expense by nature of function, as below, are included in the consolidated statements of income: Year ended December 31, 2022 2021 2020 Cost of revenues $ 11,535 $ 7,871 $ 6,300 General and administrative expenses 20,016 16,396 11,009 Selling and marketing expenses 17,815 14,354 10,926 Total $ 49,366 $ 38,621 $ 28,235 Income tax benefit related to share-based compensation, including excess tax benefits $ 9,785 $ 9,424 $ 8,330 |
Stock Based Compensation Stock Option Activity | Stock option activity under the Company’s stock-based compensation plans is shown below: Number of Options Weighted- Average Exercise Price Aggregate Intrinsic Value Weighted- Average Remaining Contractual Life (Years) Outstanding as of December 31, 2021 3,093 $ 27.62 $ 362 2.0 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding as of December 31, 2022 3,093 $ 27.62 $ 439 1.0 Vested and exercisable as of December 31, 2022 3,093 $ 27.62 $ 439 1.0 Year ended December 31, 2022 2021 2020 Cash received from options exercised during the year $ — $ 710 $ 1,501 |
Company's Stock Options Outstanding and Stock Options Vested and Exercisable | The following table summarizes the status of the Company’s stock options outstanding, vested and exercisable as of December 31, 2022: Options Outstanding, Vested and Exercisable Range of Exercise Prices Shares Weighted-Average $25.01 to $28.00 3,093 $ 27.62 |
Restricted Stock Activity Under Company's Stock Plans | Restricted stock unit activity under the SMP is shown below: Restricted Stock Units (SMP) Number Weighted-Average Outstanding as of December 31, 2021 — $ — Granted 52,636 124.76 Vested — — Forfeited (5,013) 124.76 Outstanding as of December 31, 2022 47,623 $ 124.76 Restricted stock unit activity under the Company’s stock-based compensation plans is shown below: Restricted Stock Units Number Weighted- Outstanding as of December 31, 2021 ** 982,187 $ 81.61 Granted 358,764 121.38 Vested* (327,450) 73.30 Forfeited (90,375) 94.96 Outstanding as of December 31, 2022 ** 923,126 $ 98.71 * Includes 12,009 and 18,904 restricted stock units vested during the years ended December 31, 2022 and 2021, respectively, for which the underlying common stock is yet to be issued. The weighted-average fair value of restricted stock units granted was as follows: Year ended December 31, 2022 2021 2020 Weighted-average fair value $ 121.38 $ 91.23 $ 76.99 The total grant date fair value of restricted stock units vested was as follows: Year ended December 31, 2022 2021 2020 Total grant date fair value $ 24,002 $ 23,845 $ 20,072 PRSU activity under the Company’s stock plans is shown below: Revenue Based PRSUs Market Condition Based PRSUs Number Weighted Average Number Weighted Average Outstanding as of December 31, 2021 58,864 $ 78.29 172,042 $ 113.74 Granted 53,122 119.98 79,631 155.67 Adjustment upon final determination of level of performance goal achievement* — — 54,727 102.10 Vested (54,741) 78.28 (109,454) 102.10 Forfeited (7,654) 97.55 (18,234) 126.21 Outstanding as of December 31, 2022 49,591 $ 119.99 178,712 $ 134.72 * Represents adjustment of shares vested in respect of MUs granted in February 2020 upon achievement of the performance targets for such awards for which the underlying common stock was issued subsequent to December 31, 2022. |
Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units | The fair value of each MU granted to employees is estimated on the date of grant using the following weighted average assumptions: Year ended December 31, 2022 2021 2020 Dividend yield — — — Expected life (years) 2.9 2.9 2.9 Risk free interest rate for expected life 1.7 % 0.5 % 3.9 % Volatility for expected life 38.3 % 65.2 % 34.3 % |
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair value of common stock to be issued under the SMP was determined by estimating the discount for illiquidity using the Cost of Carry model, the Chaffe model and the Finnerty model with the following assumptions: Year ended December 31, 2022 Dividend yield — Expected life (years) 2.0 Risk free interest rate for expected life 2.3 % Volatility for expected life 32.3 % Discount for illiquidity 12.9 % Year ended December 31, 2022 Dividend yield — Expected life (years) 0.3 Risk free interest rate for expected life 3.3 % Volatility for expected life 43.6 % Discount for illiquidity 9.9 % |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following transactions with the Purchaser were recognized by the Company in connection with the Notes: Year ended December 31 2021 2020 Repayment of the Notes in cash $ 200,000 $ — Repayment of the Notes in shares $ 36,742 $ — Interest expense on the Notes $ 3,442 $ 5,250 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Summary of Revenues and Reimbursements (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 30 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Payment terms | 60 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Property and Equipment, Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Maximum | Software | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Lived Intangible Assets Amortized over their Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Customer relationships | Minimum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 7 years |
Customer relationships | Maximum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 15 years |
Developed technology | Minimum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 3 years |
Developed technology | Maximum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 10 years |
Non-compete agreements | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 4 years |
Trade names and trademarks | Minimum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 2 years |
Trade names and trademarks | Maximum | |
Finite-lived intangible assets: | |
Estimated useful lives of intangible assets | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Share-Based Compensation (Details) | 12 Months Ended | |
Jun. 15, 2018 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage | 100% | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Revenue Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance based percentage | 40% | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Performance based percentage | 60% | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | Market Condition Based PRSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target shares an employee can earn | 200% |
Segment and Geographical Info_3
Segment and Geographical Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 4 |
Segment and Geographical Info_4
Segment and Geographical Information - Revenues and Cost of Revenues for Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | $ 1,412,044 | $ 1,122,293 | $ 958,434 | |
Cost of revenues | [1] | 896,595 | 690,934 | 623,936 |
Gross profit | [1] | 515,449 | 431,359 | 334,498 |
Operating expenses | 323,287 | 275,478 | 224,476 | |
Foreign exchange gain, net, interest expense and other loss, net | (2,063) | (9,320) | 5,307 | |
Income tax expense | 47,565 | 31,850 | 25,626 | |
(Gain)/loss from equity-method investment | 434 | 47 | (227) | |
Net income attributable to ExlService Holdings, Inc. stockholders | 142,968 | 114,758 | 89,476 | |
Digital operations and solutions | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 764,693 | 661,621 | 595,755 | |
Analytics services | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 647,351 | 460,672 | 362,679 | |
Insurance | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 448,704 | 381,999 | 341,770 | |
Cost of revenues | 287,734 | 239,529 | 231,884 | |
Gross profit | 160,970 | 142,470 | 109,886 | |
Healthcare | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 97,351 | 112,386 | 101,315 | |
Cost of revenues | 70,951 | 69,760 | 73,143 | |
Gross profit | 26,400 | 42,626 | 28,172 | |
Emerging Business | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 218,638 | 167,236 | 152,670 | |
Cost of revenues | 128,017 | 91,737 | 89,459 | |
Gross profit | 90,621 | 75,499 | 63,211 | |
Analytics | ||||
Revenues and cost of revenues for Company's reportable segments [Line Items] | ||||
Revenues, net | 647,351 | 460,672 | 362,679 | |
Cost of revenues | 409,893 | 289,908 | 229,450 | |
Gross profit | $ 237,458 | $ 170,764 | $ 133,229 | |
[1]Exclusive of depreciation and amortization expense. |
Segment and Geographical Info_5
Segment and Geographical Information - Revenues Based on Geographical Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Property, Plant and Equipment [Line Items] | |||
Revenues, net | $ 1,412,044 | $ 1,122,293 | $ 958,434 |
United States | |||
Revenues from External Customers and Property, Plant and Equipment [Line Items] | |||
Revenues, net | 1,213,477 | 964,059 | 814,672 |
Total Non-United States | |||
Revenues from External Customers and Property, Plant and Equipment [Line Items] | |||
Revenues, net | 198,567 | 158,234 | 143,762 |
United Kingdom | |||
Revenues from External Customers and Property, Plant and Equipment [Line Items] | |||
Revenues, net | 134,630 | 105,734 | 88,659 |
Rest of World | |||
Revenues from External Customers and Property, Plant and Equipment [Line Items] | |||
Revenues, net | $ 63,937 | $ 52,500 | $ 55,103 |
Segment and Geographical Info_6
Segment and Geographical Information - Property, Plant and Equipment, Net Based on Geographical Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 138,175 | $ 162,700 |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 50,118 | 79,604 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 60,709 | 50,095 |
Philippines | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 18,406 | 22,011 |
Rest of World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,942 | $ 10,990 |
Revenues, net - Contracts with
Revenues, net - Contracts with Customer, Receivables, Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Accounts receivable, net | $ 259,222 | $ 194,232 |
Contract assets | 2,768 | 2,524 |
Contract liabilities: | ||
Deferred revenue (consideration received in advance) | 17,079 | 18,247 |
Consideration received for process transition activities | $ 5,423 | $ 2,203 |
Revenues, net - Additional Info
Revenues, net - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Line Items] | ||
Accounts receivable not billed | $ 126,027,000 | $ 93,336,000 |
Contract Fulfillment Costs | ||
Capitalized Contract Cost [Line Items] | ||
Impairment loss in relation to costs capitalized | 0 | 0 |
Contract Acquisition Costs | ||
Capitalized Contract Cost [Line Items] | ||
Impairment loss in relation to costs capitalized | $ 0 | $ 0 |
Revenues, net - Contract with C
Revenues, net - Contract with Customer Revenue Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred revenue (consideration received in advance) | $ 17,964 | $ 30,089 |
Consideration received for process transition activities | $ 1,635 | $ 1,886 |
Revenues, net - Contract Acquis
Revenues, net - Contract Acquisition and Fulfillment Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Contract Acquisition Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Opening Balance | $ 511 | $ 1,027 |
Additions | 1,014 | 277 |
Amortization | (430) | (793) |
Closing Balance | 1,095 | 511 |
Contract Fulfillment Costs | ||
Increase (Decrease) In Capitalized Contract Costs [Roll Forward] | ||
Opening Balance | 5,795 | 5,631 |
Additions | 15,509 | 3,742 |
Amortization | (7,433) | (3,578) |
Closing Balance | $ 13,871 | $ 5,795 |
Revenues, net - Accounts Receiv
Revenues, net - Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Accounts receivable, including unbilled receivables | $ 260,554 | $ 194,805 | |
Less: Allowance for expected credit losses | (1,332) | (573) | $ (1,189) |
Accounts receivable, net | $ 259,222 | $ 194,232 |
Revenues, net - Allowance for C
Revenues, net - Allowance for Credit Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Opening Balance | $ 573 | $ 1,189 |
Additions / (reductions) | 815 | (496) |
Reductions due to write-off of Accounts Receivables | (60) | (129) |
Translation adjustment | 4 | 9 |
Closing Balance | $ 1,332 | $ 573 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - 3.50% Convertible Senior Notes due October 1, 2024 - Convertible notes payable - $ / shares | Dec. 31, 2022 | Oct. 01, 2018 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Interest rate | 3.50% | 3.50% |
Conversion price (in dollars per share) | $ 75 | $ 75 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerators: | |||
Net income | $ 142,968 | $ 114,758 | $ 89,476 |
Denominators: | |||
Basic (in shares) | 33,330,317 | 33,549,275 | 34,273,388 |
Dilutive effect of share based awards (in shares) | 503,541 | 408,693 | 254,717 |
Dilutive effect of conversion premium on the Notes (in shares) | 0 | 286,510 | 27,059 |
Diluted (in shares) | 33,833,858 | 34,244,478 | 34,555,164 |
Earnings per share attributable to ExlService Holdings, Inc. stockholders: | |||
Basic (in dollars per share) | $ 4.29 | $ 3.42 | $ 2.61 |
Diluted (in dollars per share) | $ 4.23 | $ 3.35 | $ 2.59 |
Weighted average potentially dilutive shares considered anti-dilutive and not included in computing diluted earnings per share (in shares) | 566 | 10,705 | 289,061 |
Other Income_(Loss), net - Summ
Other Income/(Loss), net - Summary of Other Income, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Gain on sale and mark-to-market on investments | $ 4,907 | $ 4,891 | $ 9,615 |
Interest and dividend income | 5,229 | 2,726 | 2,501 |
Fair value changes | (8,250) | 0 | 0 |
Others, net | (1,896) | (844) | (51) |
Other income/(loss), net | $ (10) | $ 6,773 | $ 12,065 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 118,669 | $ 135,337 | $ 218,530 | |
Restricted cash (current) | 4,897 | 6,174 | 4,690 | |
Restricted cash (non-current) | 2,055 | 2,299 | 2,299 | |
Cash, cash equivalents and restricted cash | $ 125,621 | $ 143,810 | $ 225,519 | $ 127,044 |
Investments - Summary of Invest
Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Short-term investments | ||
Mutual funds | $ 110,964 | $ 127,551 |
Term deposits | 68,063 | 51,879 |
Total Short-term investments | 179,027 | 179,430 |
Long-term investments | ||
Term deposits | 31,341 | 186 |
Investment in equity affiliate | 3,438 | 3,004 |
Total Long-term investments | $ 34,779 | $ 3,190 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Owned Assets: | ||
Owned assets, gross | $ 298,460 | $ 299,361 |
Less: Accumulated depreciation and amortization | (216,132) | (213,699) |
Property and equipment, net | 82,328 | 85,662 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | 2,499 | 2,685 |
Less: Accumulated depreciation and amortization | (1,999) | (2,339) |
Property and equipment, net | 500 | 346 |
Property and equipment, net | $ 82,828 | $ 86,008 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net | Property and equipment, net |
Network equipment and computers | ||
Owned Assets: | ||
Owned assets, gross | $ 130,218 | $ 116,023 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 82 | 91 |
Network equipment and computers | Minimum | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Network equipment and computers | Maximum | ||
Owned Assets: | ||
Estimated useful lives | 5 years | |
Software | ||
Owned Assets: | ||
Owned assets, gross | $ 88,487 | 101,884 |
Software | Minimum | ||
Owned Assets: | ||
Estimated useful lives | 2 years | |
Software | Maximum | ||
Owned Assets: | ||
Estimated useful lives | 5 years | |
Leasehold improvements | ||
Owned Assets: | ||
Owned assets, gross | $ 42,890 | 46,401 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 1,013 | 1,229 |
Leasehold improvements | Minimum | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Leasehold improvements | Maximum | ||
Owned Assets: | ||
Estimated useful lives | 8 years | |
Office furniture and equipment | ||
Owned Assets: | ||
Owned assets, gross | $ 20,211 | 22,302 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 662 | 787 |
Office furniture and equipment | Minimum | ||
Owned Assets: | ||
Estimated useful lives | 3 years | |
Office furniture and equipment | Maximum | ||
Owned Assets: | ||
Estimated useful lives | 8 years | |
Motor vehicles | ||
Owned Assets: | ||
Owned assets, gross | $ 605 | 693 |
Right-of-use assets under finance leases: | ||
Right of use assets under finance leases, gross | $ 742 | 578 |
Motor vehicles | Minimum | ||
Owned Assets: | ||
Estimated useful lives | 2 years | |
Motor vehicles | Maximum | ||
Owned Assets: | ||
Estimated useful lives | 5 years | |
Buildings | ||
Owned Assets: | ||
Estimated useful lives | 30 years | |
Owned assets, gross | $ 961 | 1,070 |
Land | ||
Owned Assets: | ||
Owned assets, gross | 629 | 700 |
Capital work in progress | ||
Owned Assets: | ||
Owned assets, gross | $ 14,459 | $ 10,288 |
Property and Equipment, net - D
Property and Equipment, net - Depreciation and Amortization Expense and Effect of Foreign Exchange Gain (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 39,173 | $ 36,354 | $ 36,050 |
Depreciation and amortization | |||
Property, Plant and Equipment [Line Items] | |||
Effect of foreign exchange gain/(loss) | $ (180) | $ 524 | $ 51 |
Property and Equipment, net - I
Property and Equipment, net - Internally Developed Software Costs, Included under Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Cost | $ 31,544 | $ 19,289 | |
Less : Accumulated amortization | (16,134) | (10,226) | |
Internally developed software, net | 15,410 | 9,063 | |
Amortization expense | $ 5,958 | $ 4,253 | $ 4,894 |
Property and Equipment, net - A
Property and Equipment, net - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Long-lived assets impairment charges | $ 0 | $ 0 |
Business Combinations, Goodwi_3
Business Combinations, Goodwill and Intangible Assets - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Jun. 10, 2022 USD ($) | Dec. 16, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | ||||||
Contingent consideration | $ 18,689 | $ 18,689 | $ 9,000 | |||
Measurement period adjustments | 2,229 | |||||
Goodwill | 405,637 | 405,637 | 403,902 | $ 349,088 | ||
Clairvoyant | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of business acquired | 100% | |||||
Initial purchase consideration | $ 80,080 | |||||
Earn-out payments | 20,000 | |||||
Contingent consideration | 9,000 | 17,500 | 17,500 | 9,000 | ||
Measurement period adjustments | 2,229 | 0 | ||||
Business combination, provisional information, initial accounting incomplete, adjustment, financial liabilities | 988 | |||||
Acquisition-related costs | 134 | $ 761 | ||||
Goodwill | $ 57,454 | |||||
Clairvoyant | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 7 years | |||||
Intangible assets, net | $ 31,600 | |||||
Clairvoyant | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Acquired finite-lived intangible asset, weighted average useful life | 3 years | |||||
Intangible assets, net | $ 2,070 | |||||
Inbound Media Group, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Initial purchase consideration | $ 1,469 | |||||
Contingent consideration | 1,439 | $ 1,189 | $ 1,189 | |||
Goodwill | 1,992 | |||||
Intangible assets, net | $ 916 | |||||
Long-term revenue growth rate | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, measurement input | 0.030 | |||||
Discount rate | ||||||
Business Acquisition [Line Items] | ||||||
Reporting unit, measurement input | 0.100 |
Business Combinations, Goodwi_4
Business Combinations, Goodwill and Intangible Assets - Summary of Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 16, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 405,637 | $ 403,902 | $ 349,088 | |
Contingent consideration | 18,689 | 9,000 | ||
Clairvoyant | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 5,598 | |||
Accounts receivable, net | 8,709 | |||
Other current assets | 360 | |||
Property and equipment, net | 398 | |||
Other assets | 217 | |||
Total assets | 49,552 | |||
Accounts payable | (1,199) | |||
Accrued expenses and other current liabilities | (4,873) | |||
Deferred tax liabilities | (9,383) | |||
Other non-current liabilities | (1,226) | |||
Total liabilities | (16,681) | |||
Net assets acquired | 32,871 | |||
Goodwill | 57,454 | |||
Total purchase consideration | 90,325 | |||
Contingent consideration | $ 17,500 | $ 9,000 | 9,000 | |
Clairvoyant | Customer relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, net | 31,600 | |||
Clairvoyant | Developed technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, net | 2,070 | |||
Clairvoyant | Trade names and trademarks | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, net | 300 | |||
Clairvoyant | Non-compete agreements | ||||
Business Acquisition [Line Items] | ||||
Intangible assets, net | $ 300 |
Business Combinations, Goodwi_5
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 403,902 | $ 349,088 |
Acquisition | 1,992 | 55,225 |
Currency translation adjustments | (2,486) | (411) |
Measurement period adjustments | 2,229 | |
Ending balance | 405,637 | 403,902 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning balance | 50,428 | 50,499 |
Acquisition | 0 | 0 |
Currency translation adjustments | (499) | (71) |
Measurement period adjustments | 0 | |
Ending balance | 49,929 | 50,428 |
Healthcare | ||
Goodwill [Roll Forward] | ||
Beginning balance | 21,942 | 21,953 |
Acquisition | 0 | 0 |
Currency translation adjustments | (67) | (11) |
Measurement period adjustments | 0 | |
Ending balance | 21,875 | 21,942 |
Emerging Business | ||
Goodwill [Roll Forward] | ||
Beginning balance | 49,020 | 49,348 |
Acquisition | 0 | 0 |
Currency translation adjustments | (1,919) | (328) |
Measurement period adjustments | 0 | |
Ending balance | 47,101 | 49,020 |
Analytics | ||
Goodwill [Roll Forward] | ||
Beginning balance | 282,512 | 227,288 |
Acquisition | 1,992 | 55,225 |
Currency translation adjustments | (1) | (1) |
Measurement period adjustments | 2,229 | |
Ending balance | $ 286,732 | $ 282,512 |
Business Combinations, Goodwi_6
Business Combinations, Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-lived intangible assets: | ||
Gross Carrying Amount | $ 126,060 | $ 130,056 |
Accumulated Amortization | (62,141) | (49,874) |
Total | 63,919 | 80,182 |
Indefinite-lived intangible assets: | ||
Total intangible assets, gross carrying amount | 126,960 | 130,956 |
Total intangible assets, net carrying amount | 64,819 | 81,082 |
Trade names and trademarks | ||
Indefinite-lived intangible assets: | ||
Trade names and trademarks | 900 | 900 |
Customer relationships | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 99,146 | 103,016 |
Accumulated Amortization | (39,848) | (33,018) |
Total | 59,298 | 69,998 |
Developed technology | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 24,878 | 25,040 |
Accumulated Amortization | (20,902) | (15,850) |
Total | 3,976 | 9,190 |
Trade names and trademarks | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 1,700 | 1,700 |
Accumulated Amortization | (1,303) | (1,006) |
Total | 397 | 694 |
Non-compete agreements | ||
Finite-lived intangible assets: | ||
Gross Carrying Amount | 336 | 300 |
Accumulated Amortization | (88) | 0 |
Total | $ 248 | $ 300 |
Business Combinations, Goodwi_7
Business Combinations, Goodwill and Intangible Assets - Amortization of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 17,109 | $ 12,778 | $ 14,412 |
Business Combinations, Goodwi_8
Business Combinations, Goodwill and Intangible Assets - Weighted Average Life of Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 5 years 6 months |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 1 year 4 months 24 days |
Trade names and trademarks | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 1 year 6 months |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average life of intangible assets | 2 years 9 months 18 days |
Business Combinations, Goodwi_9
Business Combinations, Goodwill and Intangible Assets - Estimated Future Amortization of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2023 | $ 14,646 | |
2024 | 12,135 | |
2025 | 10,698 | |
2026 | 10,363 | |
2027 | 9,364 | |
2028 and thereafter | 6,713 | |
Total | $ 63,919 | $ 80,182 |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 18,132 | $ 14,655 |
Receivables from statutory authorities | 15,724 | 18,023 |
Advance income tax, net | 5,716 | 15,199 |
Advances to suppliers | 1,944 | 1,464 |
Derivative instruments | 1,526 | 8,682 |
Deferred contract fulfillment costs | 1,178 | 1,483 |
Contract assets | 904 | 1,319 |
Others | 5,855 | 2,146 |
Other current assets | $ 50,979 | $ 62,971 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred contract fulfillment costs | $ 12,693 | $ 4,312 |
Lease deposits | 6,621 | 9,649 |
Deposits with statutory authorities | 6,276 | 6,417 |
Contract assets | 1,864 | 1,205 |
Derivative instruments | 820 | 6,307 |
Receivable from Statutory authorities | 0 | 222 |
Others | 3,795 | 2,071 |
Other assets | $ 32,069 | $ 30,183 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued expenses | $ 47,854 | $ 44,405 |
Payable to statutory authorities | 20,430 | 13,902 |
Derivative instruments | 10,059 | 1,852 |
Client liabilities | 5,110 | 6,097 |
Contingent consideration | 5,000 | 0 |
Accrued capital expenditures | 4,032 | 8,630 |
Interest payable | 451 | 252 |
Finance lease liabilities | 164 | 141 |
Other current liabilities | 2,252 | 1,071 |
Accrued expenses and other current liabilities | $ 95,352 | $ 76,350 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other Non-Current liabilities -
Other Non-Current liabilities - Summary of Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Liabilities, Noncurrent [Abstract] | ||
Contingent consideration | $ 13,689 | $ 9,000 |
Retirement benefits | 12,982 | 9,604 |
Derivative instruments | 6,218 | 1,785 |
Deferred transition revenue | 4,408 | 995 |
Unrecognized tax benefits | 2,329 | 1,068 |
Income taxes payable | 0 | 1,790 |
Finance lease liabilities | 355 | 229 |
Others | 1,311 | 120 |
Other non-current liabilities | $ 41,292 | $ 24,591 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other non-current liabilities | Other non-current liabilities |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income/( Loss) - Summary of Accumulated Other Comprehensive Income/( Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 693,156 | $ 719,172 | $ 670,001 |
Gains / (losses) recognized during the year | (72,493) | (7,029) | 9,724 |
Loss on net investment hedges | 0 | (1,134) | 0 |
Reclassification to net income | 1,887 | (8,555) | (407) |
Income tax effects | 15,937 | 2,228 | 591 |
Ending balance | 758,179 | 693,156 | 719,172 |
Foreign currency translation loss | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (95,437) | (86,185) | (87,591) |
Gains / (losses) recognized during the year | (47,734) | (11,134) | (540) |
Loss on net investment hedges | (1,134) | ||
Reclassification to net income | 0 | 0 | 0 |
Income tax effects | 10,032 | 3,016 | 1,946 |
Ending balance | (133,139) | (95,437) | (86,185) |
Unrealized gain/(loss) on cash flow hedges | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 8,420 | 13,799 | 4,098 |
Gains / (losses) recognized during the year | (27,333) | 4,663 | 12,665 |
Loss on net investment hedges | 0 | ||
Reclassification to net income | 1,295 | (9,264) | (801) |
Income tax effects | 6,315 | (778) | (2,163) |
Ending balance | (11,303) | 8,420 | 13,799 |
Retirement benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (2,457) | (2,598) | (1,399) |
Gains / (losses) recognized during the year | 2,574 | (558) | (2,401) |
Loss on net investment hedges | 0 | ||
Reclassification to net income | 592 | 709 | 394 |
Income tax effects | (410) | (10) | 808 |
Ending balance | 299 | (2,457) | (2,598) |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (89,474) | (74,984) | (84,892) |
Ending balance | $ (144,143) | $ (89,474) | $ (74,984) |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents (money market funds) | $ 1,137 | $ 5,374 |
Mutual funds | 110,964 | 127,551 |
Derivative financial instruments | 2,346 | 14,989 |
Total | 114,447 | 147,914 |
Liabilities | ||
Derivative financial instruments | 16,277 | 3,637 |
Contingent consideration | 18,689 | 9,000 |
Total | 34,966 | 12,637 |
(Level 1) | ||
Assets | ||
Cash and cash equivalents (money market funds) | 1,137 | 5,374 |
Mutual funds | 110,964 | 127,551 |
Derivative financial instruments | 0 | 0 |
Total | 112,101 | 132,925 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
(Level 2) | ||
Assets | ||
Cash and cash equivalents (money market funds) | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 2,346 | 14,989 |
Total | 2,346 | 14,989 |
Liabilities | ||
Derivative financial instruments | 16,277 | 3,637 |
Contingent consideration | 0 | 0 |
Total | 16,277 | 3,637 |
(Level 3) | ||
Assets | ||
Cash and cash equivalents (money market funds) | 0 | 0 |
Mutual funds | 0 | 0 |
Derivative financial instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative financial instruments | 0 | 0 |
Contingent consideration | 18,689 | 9,000 |
Total | $ 18,689 | $ 9,000 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in the fair value of contingent consideration (Details) - Contingent Consideration - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Beginning balance, contingent consideration | $ 9,000 | |
Acquisitions | 1,439 | $ 9,000 |
Fair value changes | 8,250 | |
Ending balance, contingent consideration | $ 18,689 | $ 9,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Impairment charges | $ 0 | $ 0 |
Derivatives and Hedge Account_3
Derivatives and Hedge Accounting - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Cash flow hedge gain to be reclassified within twelve months | $ (8,773,000) | |
Maximum outstanding term of cash flow hedges | 45 months | |
Derivative designated as hedging instruments | Derivatives in cash flow hedging relationships | Foreign exchange contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange contracts outstanding | $ 841,620,000 | $ 514,580,000 |
Derivative designated as hedging instruments | Derivatives in cash flow hedging relationships | Interest Rate Swap | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Asset, Notional Amount | $ 75,000,000 | $ 0 |
Derivatives and Hedge Account_4
Derivatives and Hedge Accounting - Foreign Currency Forward Contracts (Detail) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands, $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 AUD ($) | Dec. 31, 2022 COP ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2021 GBP (£) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 AUD ($) | Dec. 31, 2021 COP ($) |
Foreign exchange contract | Derivative not designated as hedging instruments | ||||||||||
Derivatives, Fair Value [Line Items] | ||||||||||
Foreign exchange contracts outstanding | $ 163,990 | £ 8,351 | € 1,956 | $ 1,951 | $ 0 | $ 134,612 | £ 6,763 | € 1,343 | $ 0 | $ 2,541,902 |
Derivatives and Hedge Account_5
Derivatives and Hedge Accounting - Summary of Fair Value of Foreign Currency Exchange Contracts (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 1,271 | $ 8,669 |
Derivative designated as hedging instruments | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 820 | 6,307 |
Derivative designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 10,044 | 1,324 |
Derivative designated as hedging instruments | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 6,218 | 1,785 |
Derivative not designated as hedging instruments | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 255 | 13 |
Derivative not designated as hedging instruments | Accrued expenses and other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 15 | $ 528 |
Derivatives and Hedge Account_6
Derivatives and Hedge Accounting - Summary of Effect of Foreign Currency Exchange Contracts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in consolidated statements of income | $ 6,199 | $ 4,313 | $ 4,432 |
Derivatives in cash flow hedging relationships | Derivative designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized gain/(loss) recognized in AOCI | (27,333) | 4,663 | 12,665 |
Fair value hedge | Gain/ (loss) on foreign currency exchange contracts | Derivative not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain/(loss) recognized in consolidated statements of income | $ (9,571) | $ 196 | $ 3,686 |
Derivatives and Hedge Account_7
Derivatives and Hedge Accounting - Location of Gain or Loss Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of revenues | [1] | $ 896,595 | $ 690,934 | $ 623,936 |
General and administrative expenses | 169,016 | 142,040 | 113,891 | |
Selling and marketing expenses | 97,989 | 84,306 | 60,123 | |
Depreciation and amortization expense | 56,282 | 49,132 | 50,462 | |
Interest expense | 8,252 | 7,561 | 11,190 | |
Total before tax | 190,099 | 146,561 | 115,329 | |
Income tax effects on above | (47,565) | (31,850) | (25,626) | |
Net income | 142,968 | 114,758 | 89,476 | |
Foreign exchange gain, net | 6,199 | 4,313 | 4,432 | |
Gain/ (loss) on foreign currency exchange contracts | Derivatives Designated as Hedging Instruments | Derivatives in cash flow hedging relationships | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Cost of revenues | (1,304) | 7,785 | 1,008 | |
General and administrative expenses | 141 | 948 | (161) | |
Selling and marketing expenses | 10 | 53 | (5) | |
Depreciation and amortization expense | (32) | 478 | (41) | |
Interest expense | (110) | 0 | 0 | |
Total before tax | (1,295) | 9,264 | 801 | |
Income tax effects on above | (455) | (1,530) | 500 | |
Net income | (1,750) | 7,734 | 1,301 | |
Gain/ (loss) on foreign currency exchange contracts | Derivative not designated as hedging instruments | Fair value hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange gain, net | $ (9,571) | $ 196 | $ 3,686 | |
[1]Exclusive of depreciation and amortization expense. |
Derivatives and Hedge Account_8
Derivatives and Hedge Accounting - Effect of Net Investment Hedges on AOCI/(L) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign exchange contract | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency forward contracts | $ 0 | $ 1,134 | $ 0 |
Borrowings - Company's Debt Pos
Borrowings - Company's Debt Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | $ 30,000 | $ 260,016 |
Long-term borrowings | 220,000 | |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Current portion of long-term borrowings | 30,000 | 260,016 |
Long-term borrowings | 220,000 | 0 |
Total borrowings | $ 250,000 | $ 260,016 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||
Oct. 01, 2021 numberOfDays | Oct. 01, 2018 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Apr. 18, 2022 USD ($) | Nov. 21, 2017 USD ($) | |
Credit Facilities [Line Items] | |||||||
Loss on settlement of convertible notes | $ 0 | $ 12,845 | $ 0 | ||||
Outstanding letters of credit | $ 461 | 461 | |||||
Convertible notes payable | 3.50% Convertible Senior Notes due October 1, 2024 | |||||||
Credit Facilities [Line Items] | |||||||
Debt instrument face amount | $ 150,000 | ||||||
Interest rate | 3.50% | 3.50% | |||||
Conversion price (in dollars per share) | $ / shares | $ 75 | $ 75 | |||||
Threshold percentage of stock price trigger | 150% | ||||||
Convertible debt, threshold trading days | numberOfDays | 20 | ||||||
Convertible debt, threshold consecutive trading days | numberOfDays | 30 | ||||||
Loss on settlement of convertible notes | 12,845 | ||||||
Interest expense and amortization, debt | 5,237 | $ 7,866 | |||||
Conversion rate | 0.0133333 | ||||||
Revolving credit facility | |||||||
Credit Facilities [Line Items] | |||||||
Unamortized debt issuance costs | $ 1,177 | $ 232 | |||||
Revolving credit facility | New Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Line of credit , maximum borrowing capacity | $ 300 | ||||||
Revolving credit facility | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Line of credit , maximum borrowing capacity | $ 400 | ||||||
Option to increase additional credit facility | $ 200 | ||||||
Interest coverage ratio, maximum | 3 | ||||||
Interest coverage ratio, minimum | 3.5 | ||||||
Revolving credit facility | Minimum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Commitment fee percentage range on unused credit facility | 0.13% | ||||||
Revolving credit facility | Maximum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Commitment fee percentage range on unused credit facility | 0.28% | ||||||
Revolving credit facility | Prime Rate | Minimum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Basis spread on variable rate | 0% | ||||||
Revolving credit facility | Prime Rate | Maximum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Basis spread on variable rate | 0.75% | ||||||
Revolving credit facility | Secured Overnight Financing Rate (SOFR) | Minimum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Basis spread on variable rate | 0.88% | ||||||
Revolving credit facility | Secured Overnight Financing Rate (SOFR) | Maximum | Credit Agreement | |||||||
Credit Facilities [Line Items] | |||||||
Basis spread on variable rate | 1.75% |
Borrowings - Credit Facilities
Borrowings - Credit Facilities Carried an Effective Interest Rate (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Credit Agreement | Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Effective Interest Rate | 2.90% | 1.70% | 2.30% |
Borrowings - Notes Carried an E
Borrowings - Notes Carried an Effective Interest Rate (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
3.50% Convertible Senior Notes due October 1, 2024 | Convertible notes payable | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 3.60% | 3.60% |
Borrowings - Maturities of Borr
Borrowings - Maturities of Borrowings (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Principal Payments | |
Credit Facilities [Line Items] | |
2023 | $ 30,000 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 220,000 |
Total | 250,000 |
Interest Payments* | |
Credit Facilities [Line Items] | |
2023 | 12,374 |
2024 | 11,926 |
2025 | 11,926 |
2026 | 11,926 |
2027 | 4,472 |
Total | $ 52,624 |
Capital Structure - Additional
Capital Structure - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) class_of_common_stock | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Oct. 05, 2021 USD ($) | Dec. 16, 2019 USD ($) | |
Equity, Class of Treasury Stock [Line Items] | |||||
Number of classes of common stock outstanding | class_of_common_stock | 1 | ||||
Common stock, dividends | $ 0 | $ 0 | $ 0 | ||
2019 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors | $ 200,000,000 | ||||
2022 Repurchase Program | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Repurchase of common stock authorized by board of directors | $ 300,000,000 |
Capital Structure - Purchase of
Capital Structure - Purchase of Common Stock from Employees Withholding Tax Payments Related to Vesting of Restricted Stock (Details - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Shares repurchased (in shares) | 32,816 | 31,309 | 28,052 |
Total consideration | $ 4,121 | $ 2,752 | $ 2,131 |
Weighted average purchase price per share (in dollars per share) | $ 125.58 | $ 87.90 | $ 75.96 |
Capital Structure - Purchased S
Capital Structure - Purchased Shares of its Common Stock, Including Commissions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Shares repurchased (in shares) | 503,858 | 1,087,325 | 1,085,153 |
Total consideration | $ 68,521 | $ 115,605 | $ 77,818 |
Weighted average purchase price per share (in dollars per share) | $ 135.99 | $ 106.32 | $ 71.71 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Percentage of expected return on plan assets | 5.90% |
Percentage of discretionary contributions towards 401(k) Plan, maximum | 3% |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change in projected benefit obligation | |||
Projected benefit obligation as of January 1 | $ 23,271 | $ 20,466 | |
Service cost | 3,770 | 3,512 | $ 2,706 |
Interest cost | 1,232 | 929 | 964 |
Benefits paid | (1,757) | (1,844) | |
Acquisition adjustments | 0 | 209 | |
Actuarial gain (loss) | (2,639) | 539 | |
Effect of exchange rate changes | (2,346) | (540) | |
Projected benefit obligation as of December 31 | 21,531 | 23,271 | 20,466 |
Change in Plan Assets | |||
Plan assets at the beginning of the year | 13,605 | 11,512 | |
Actual return | 798 | 777 | |
Employer contribution | 3,273 | 3,361 | |
Benefits paid | (1,737) | (1,835) | |
Effect of exchange rate changes | (1,490) | (210) | |
Plan assets at the end of the year | 14,449 | 13,605 | $ 11,512 |
Unfunded status as of December 31 | 7,082 | 9,666 | |
Non-current liability (included under other non-current liabilities) | 12,982 | 9,604 | |
Accumulated benefit obligation as of December 31 | 14,447 | 14,794 | |
Accumulated benefit obligation in excess of plan assets as of December 31 | 1,189 | ||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | (2) | ||
Gratuity Payable | |||
Change in Plan Assets | |||
Non-current liability (included under other non-current liabilities) | 6,971 | 9,604 | |
Current liability (included under accrued employee costs) | 111 | 62 | |
Total accrued liability | $ 7,082 | $ 9,666 |
Employee Benefit Plans - Net Pe
Employee Benefit Plans - Net Period Benefit Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 3,770 | $ 3,512 | $ 2,706 |
Interest cost | 1,232 | 929 | 964 |
Expected return on plan assets | (872) | (796) | (636) |
Amortization of actuarial loss, gross of tax | 592 | 709 | 394 |
Net gratuity cost | 4,722 | 4,354 | 3,428 |
Income tax effects on above | (179) | (204) | (127) |
Amortization of actuarial loss, net of tax | $ 413 | $ 505 | $ 267 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Components of Actuarial Gain/(Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract] | |||
Net actuarial loss | $ (462) | $ (3,624) | $ (3,772) |
Net prior service cost | (8) | (12) | (15) |
Amount recognized in AOCI, excluding tax effects | $ (470) | $ (3,636) | $ (3,787) |
Employee Benefit Plans - Summ_3
Employee Benefit Plans - Summary of Weighted Average Actuarial Assumptions (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 7.30% | 5.60% | 4.60% |
Rate of increase in compensation levels | 7.80% | 7.60% | 7.10% |
Expected long-term rate of return on plan assets per annum | 7.30% | 6.80% | 7% |
Employee Benefit Plans - Summ_4
Employee Benefit Plans - Summary of Expected Benefit Payments (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | |
2023 | $ 3,475 |
2024 | 3,183 |
2025 | 2,897 |
2026 | 2,661 |
2027 | 2,661 |
2028 to 2032 | $ 8,388 |
Employee Benefit Plans - Contri
Employee Benefit Plans - Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Contribution to the 401(k) Plans | $ 5,205 | $ 3,693 | $ 3,577 |
Contributions to the defined social security contribution plans | $ 18,215 | $ 16,340 | $ 11,332 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Lease | ||
Operating lease right-of-use assets | $ 55,347 | $ 76,692 |
Operating lease liabilities - Current | 14,978 | 18,487 |
Operating lease liabilities - Non-current | 48,155 | 68,506 |
Total operating lease liabilities | 63,133 | 86,993 |
Finance Lease | ||
Property and equipment, gross | 2,499 | 2,685 |
Accumulated depreciation | (1,999) | (2,339) |
Property and equipment, net | 500 | 346 |
Finance lease liabilities - Current | 164 | 141 |
Finance lease liabilities - Non-current | 355 | 229 |
Total finance lease liabilities | $ 519 | $ 370 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finance lease: | ||
Amortization of right-of-use assets | $ 151 | $ 188 |
Interest on lease liabilities | 59 | 63 |
Total finance lease cost | 210 | 251 |
Operating lease | 21,783 | 26,326 |
Variable lease costs | 5,033 | 7,621 |
Total lease cost | $ 27,026 | $ 34,198 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash payments for amounts included in the measurement of lease liabilities : | |||
Operating cash outflows for operating leases | $ 23,227 | $ 25,674 | |
Operating cash outflows for finance leases | 59 | 63 | |
Financing cash outflows for finance leases | 142 | 201 | $ 249 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 734 | 4,547 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 312 | $ 71 | |
Weighted-average remaining lease term (in years) | |||
Finance lease | 2 years 9 months 18 days | 2 years 1 month 6 days | |
Operating lease | 5 years 10 months 24 days | 5 years 9 months 18 days | |
Weighted-average discount rate | |||
Finance lease | 14.30% | 14.50% | |
Operating lease | 6.80% | 7.20% |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Reduction in lease liabilities | $ (2,723) | $ (2,917) | $ (3,143) |
Operating lease, impairment charge | $ 0 | $ 0 | $ 0 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 18,711 | $ 24,020 |
2024 | 14,846 | 22,666 |
2025 | 10,037 | 17,745 |
2026 | 8,941 | 10,741 |
2027 | 6,474 | 8,395 |
2028 and thereafter | 19,624 | 25,198 |
Total lease payments | 78,633 | 108,765 |
Less: Imputed interest | 15,500 | 21,772 |
Present value of lease liabilities | 63,133 | 86,993 |
Finance Leases | ||
2023 | 228 | 185 |
2024 | 162 | 147 |
2025 | 114 | 72 |
2026 | 88 | 34 |
2027 | 79 | 17 |
2028 and thereafter | 0 | 0 |
Total lease payments | 671 | 455 |
Less: Imputed interest | 152 | 85 |
Present value of lease liabilities | $ 519 | $ 370 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Income / (Loss) Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 80,949 | $ 43,759 | $ 30,893 |
Foreign | 109,150 | 102,802 | 84,436 |
Income before income tax expense and earnings from equity affiliates | $ 190,099 | $ 146,561 | $ 115,329 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense / (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current provision: | |||
Domestic | $ 43,416 | $ 18,532 | $ 7,946 |
Foreign | 23,701 | 33,644 | 14,983 |
Total | 67,117 | 52,176 | 22,929 |
Deferred provision/(benefit): | |||
Domestic | (17,624) | (15,954) | 1,343 |
Foreign | (1,928) | (4,372) | 1,354 |
Total | (19,552) | (20,326) | 2,697 |
Income tax expense | $ 47,565 | $ 31,850 | $ 25,626 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Taxes Recognized in Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Deferred taxes benefit / (expense) recognized on: | ||||
Unrealized gain/(loss) on cash flow hedges | $ 5,860 | $ (2,308) | $ (1,663) | |
Reclassification adjustment for cash flow hedges | 455 | 1,530 | (500) | |
Retirement benefits (incl. effects of tax rate changes) | (231) | 194 | 935 | |
Reclassification adjustment for retirement benefits | (179) | (204) | (127) | |
Foreign currency translation loss | 10,032 | 3,016 | 1,946 | |
Total income tax benefit recognized in AOCI | [1] | $ 15,937 | $ 2,228 | $ 591 |
[1]These are income tax effects recognized on cash flow hedges, retirement benefits and foreign currency translation loss. Refer to Note 22 - Income Taxes to the consolidated financial statements. |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Income Tax Rate Differs from Amount Computed by Applying U.S. Federal Statutory Income Tax Rate to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Expected tax expense | $ 39,921 | $ 30,777 | $ 24,219 |
Foreign tax rate differential | (1,136) | 1,127 | (2,748) |
Deferred tax provision | 3,801 | 350 | 2,888 |
Unrecognized tax benefits | 273 | 161 | 6 |
State taxes, net of Federal taxes | 7,730 | 4,968 | 3,242 |
Non-deductible expenses | 6,285 | 3,165 | 1,467 |
Excess tax benefit on stock-based compensation | (5,881) | (3,651) | (2,378) |
Research and development credits | (2,230) | (1,727) | (918) |
Prior period items | (688) | (931) | (182) |
Benefit on settlement of convertible notes | 0 | (2,411) | 0 |
Others | (510) | 22 | 30 |
Income tax expense | $ 47,565 | $ 31,850 | $ 25,626 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate increased | 25% | 21.70% | |
Income tax expense | $ 47,565,000 | $ 31,850,000 | $ 25,626,000 |
Capitalized research and development expenses | 24,743,000 | 0 | |
Operating loss carryforward valuation allowance | 309,000 | 188,000 | |
Unrecognized tax benefits that would impact tax rate if recognized | 1,449,000 | ||
Unrecognized tax benefits, interest and penalties on income taxes expense | $ 0 | $ 0 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred Tax Balances (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Tax credit carry forward | $ 5,716 | $ 16,236 |
Depreciation and amortization expense | 14,734 | 10,722 |
Capitalized research and development expenses | 24,743 | 0 |
Stock-based compensation | 11,425 | 10,760 |
Accrued employee costs and other expenses | 15,504 | 13,264 |
Net operating loss carryforwards | 412 | 2,057 |
Net unrealized foreign exchange loss | 23,572 | 408 |
Deferred rent | 3,120 | 4,454 |
Others | 272 | 642 |
Deferred tax assets | 99,498 | 58,543 |
Valuation allowance | (309) | (188) |
Deferred tax assets | 99,189 | 58,355 |
Deferred tax liabilities: | ||
Intangible assets | 27,807 | 28,119 |
Net unrealized gain on investments | 6,006 | 5,840 |
Others | 10,132 | 3,957 |
Deferred tax liabilities | 43,945 | 37,916 |
Net deferred tax assets | $ 55,244 | $ 20,439 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits, beginning balance | $ 1,068 | $ 907 | $ 1,047 |
Increases/(decreases) related to prior year tax positions | 158 | ||
Increases/(decreases) related to prior year tax positions | (12) | (324) | |
Increases related to current year tax positions | 223 | 173 | 184 |
Unrecognized tax benefits, ending balance | $ 1,449 | $ 1,068 | $ 907 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - shares | 12 Months Ended | |
Jun. 15, 2018 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiring period of equity options to employees | 10 years | |
Vesting period | 4 years | |
2018 Stock options plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Increase in number of shares available for grant (in shares) | 3,175,000 | |
Number of shares available for grant (in shares) | 1,324,755 | |
Stock issued, stock-based compensation plans (in shares) | 164,195 |
Stock Based Compensation - Cost
Stock Based Compensation - Costs Related to Company's Stock Based Compensation Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | $ 49,366 | $ 38,621 | $ 28,235 |
Income tax benefit related to share-based compensation, including excess tax benefits | 9,785 | 9,424 | 8,330 |
Cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | 11,535 | 7,871 | 6,300 |
General and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | 20,016 | 16,396 | 11,009 |
Selling and marketing expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation expenses | $ 17,815 | $ 14,354 | $ 10,926 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | ||
Unrecognized compensation cost for unvested stock options | $ 0 | ||
Number of options, granted (in shares) | 0 | 0 | 0 |
Intrinsic value of options exercised | $ 0 | $ 2,475,000 | $ 3,488,000 |
Share Match Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | ||
Unrecognized compensation cost for unvested stock options | $ 4,451,000 |
Stock Based Compensation - St_2
Stock Based Compensation - Stock Based Compensation Stock Option Activity (Detail) - Employee Stock Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, outstanding, beginning balance (in shares) | 3,093 | ||
Number of options, granted (in shares) | 0 | 0 | 0 |
Number of options, exercised (in shares) | 0 | ||
Number of options, forfeited (in shares) | 0 | ||
Number of options, outstanding, ending balance (in shares) | 3,093 | 3,093 | |
Number of options, vested and exercisable at December 31, 2022 (in shares) | 3,093 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted-average exercise price, outstanding, beginning balance (in dollars per share) | $ 27.62 | ||
Weighted-average exercise price, granted (in dollars per share) | 0 | ||
Weighted-average exercise price, exercised (in dollars per share) | 0 | ||
Weighted-average exercise price, forfeited (in dollars per share) | 0 | ||
Weighted-average exercise price, outstanding, ending balance (in dollars per share) | 27.62 | $ 27.62 | |
Weighted average exercise price, vested and exercisable at December 31, 2022 (in dollars per share) | $ 27.62 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value, outstanding | $ 439 | $ 362 | |
Aggregate intrinsic value, exercised | 0 | $ 2,475 | $ 3,488 |
Aggregate intrinsic value, vested and exercisable at December 31, 2021 | $ 439 | ||
Weighted-average remaining contractual life | 1 year | 2 years | |
Weighted-average remaining contractual life, vested and exercisable at December 31, 2022 | 1 year |
Stock Based Compensation - Comp
Stock Based Compensation - Company's Stock Options Outstanding and Stock Options Vested and Exercisable (Detail) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Range of exercise prices, lower range limit (in dollars per share) | $ 25.01 |
Range of exercise prices, upper range limit (in dollars per share) | $ 28 |
Options outstanding, vested and exercisable (in shares) | shares | 3,093 |
Options outstanding, vested and exercisable, weighted-average exercise price (in dollars per share) | $ 27.62 |
Stock Based Compensation - St_3
Stock Based Compensation - Stock Options Exercised (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Cash received from options exercised during the year | $ 0 | $ 710 | $ 1,501 |
Stock Based Compensation - Shar
Stock Based Compensation - Share Matching Program Narrative (Detail) | 12 Months Ended |
Dec. 31, 2022 USD ($) installment | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Installments | installment | 2 |
Share Match Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost for unvested stock options | $ 4,451,000 |
Cost not yet recognized, period for recognition | 2 years 3 months 18 days |
Maximum | Share Match Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employers Matching Contribution, Share Match Program, Cap per Employee | $ 500 |
Minimum | Share Match Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employers Matching Contribution, Share Match Program, Cap per Employee | $ 100 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Unit Activity Under Company's Stock Plans (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number, outstanding, beginning balance (in shares) | 982,187 | ||
Number, granted (in shares) | 358,764 | ||
Number, vested (in shares) | (327,450) | ||
Number, forfeited (in shares) | (90,375) | ||
Number, outstanding, ending balance (in shares) | 923,126 | 982,187 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ 81.61 | ||
Weighted-average fair value, granted (in dollars per share) | 121.38 | $ 91.23 | $ 76.99 |
Weighted-average fair value, vested (in dollars per share) | 73.30 | ||
Weighted-average fair value, forfeited (in dollars per share) | 94.96 | ||
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 98.71 | $ 81.61 | |
Restricted stock units vested for which underlying common stock is yet to be issued (in shares) | 12,009 | 18,904 | |
Restricted stock units vested (in shares) | 174,490 | 162,481 | |
Share Match Units | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Number, outstanding, beginning balance (in shares) | 0 | ||
Number, granted (in shares) | 52,636 | ||
Number, vested (in shares) | 0 | ||
Number, forfeited (in shares) | (5,013) | ||
Number, outstanding, ending balance (in shares) | 47,623 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ 0 | ||
Weighted-average fair value, granted (in dollars per share) | 124.76 | ||
Weighted-average fair value, vested (in dollars per share) | 0 | ||
Weighted-average fair value, forfeited (in dollars per share) | 124.76 | ||
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ 124.76 | $ 0 |
Stock Based Compensation - Re_2
Stock Based Compensation - Restricted Stock Units Fair Value (Details) - Restricted Stock Units (RSUs) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 59,182 | ||
Cost not yet recognized, period for recognition | 2 years 3 months 18 days | ||
Weighted-average fair value of restricted stock units granted (in dollars per share) | $ 121.38 | $ 91.23 | $ 76.99 |
Total grant date fair value | $ 24,002 | $ 23,845 | $ 20,072 |
Stock Based Compensation - Perf
Stock Based Compensation - Performance Based Stock Awards Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 15, 2018 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 4 years | |
Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage | 100% | |
Revenue Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage | 40% | |
Vesting period | 3 years | |
Market Condition Based PRSUs | Amendment And Restatement Of The 2006 Omnibus Award Plan (2015 Plan) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based percentage | 60% | |
Vesting period | 3 years | |
Performance Based Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 20,066 | |
Cost not yet recognized, period for recognition | 1 year 9 months 18 days |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Weighted Average Valuation Assumptions for Market Condition Performance Restricted Stock Units (Details) - Market Condition Based PRSUs | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0% | 0% | 0% |
Expected life (years) | 2 years 10 months 24 days | 2 years 10 months 24 days | 2 years 10 months 24 days |
Risk free interest rate for expected life | 1.70% | 0.50% | 3.90% |
Volatility for expected life | 38.30% | 65.20% | 34.30% |
Stock Based Compensation - Pe_2
Stock Based Compensation - Performance Restricted Stock Activity (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Revenue Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 58,864 |
Number, granted (in shares) | shares | 53,122 |
Adjustment upon final determination of level of performance goal achievement (in shares) | shares | 0 |
Number, vested (in shares) | shares | (54,741) |
Number, forfeited (in shares) | shares | (7,654) |
Number, outstanding, ending balance (in shares) | shares | 49,591 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 78.29 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 119.98 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 0 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 78.28 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 97.55 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 119.99 |
Market Condition Based PRSUs | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Number, outstanding, beginning balance (in shares) | shares | 172,042 |
Number, granted (in shares) | shares | 79,631 |
Adjustment upon final determination of level of performance goal achievement (in shares) | shares | 54,727 |
Number, vested (in shares) | shares | (109,454) |
Number, forfeited (in shares) | shares | (18,234) |
Number, outstanding, ending balance (in shares) | shares | 178,712 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Weighted-average fair value, outstanding, beginning balance (in dollars per share) | $ / shares | $ 113.74 |
Weighted-average fair value, granted (in dollars per share) | $ / shares | 155.67 |
Weighted-average fair value, adjustment upon final determination of level of performance goal achievement (in dollars per share) | $ / shares | 102.10 |
Weighted-average fair value, vested (in dollars per share) | $ / shares | 102.10 |
Weighted-average fair value, forfeited (in dollars per share) | $ / shares | 126.21 |
Weighted-average fair value, outstanding, ending balance (in dollars per share) | $ / shares | $ 134.72 |
Stock Based Compensation - Empl
Stock Based Compensation - Employee Stock Purchase Plan Narrative (Details) - USD ($) | 2 Months Ended | 12 Months Ended | ||||
Feb. 23, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 01, 2022 | Jun. 21, 2022 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Proceeds from ESPP contribution | $ 1,060,000 | $ 0 | $ 0 | |||
Employee Stock | 2022 Employee stock purchase plan | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Share-based compensation arrangement by share-based payment award, maximum employee subscription rate | 15% | |||||
Share-based compensation arrangement by share-based payment award, maximum employee subscription | $ 25,000 | |||||
Common stock, capital shares reserved for future issuance (in shares) | 800,000 | 800,000 | ||||
Share-based compensation arrangement by share-based payment award, fair value assumptions, weighted average ESPP rights | $ 20.53 | |||||
Employee Stock | 2022 Employee stock purchase plan | Subsequent Event | ||||||
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Shares Issued in Period | 7,636 | |||||
Proceeds from ESPP contribution | $ 1,060,000 |
Stock Based Compensation - Em_2
Stock Based Compensation - Employee Stock Purchase Plan (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Stock | 2022 Employee stock purchase plan | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |
Dividend yield | 0% |
Expected life (years) | 3 months 18 days |
Risk free interest rate for expected life | 3.30% |
Volatility for expected life | 43.60% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 9.90% |
Share Match Units | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |
Dividend yield | 0% |
Expected life (years) | 2 years |
Risk free interest rate for expected life | 2.30% |
Volatility for expected life | 32.30% |
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Discount for Postvesting Restrictions | 12.90% |
Related Party Disclosures - Nar
Related Party Disclosures - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Oct. 01, 2018 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 2,258 | |
Accounts receivable from related party | $ 856 | |
3.50% Convertible Senior Notes due October 1, 2024 | Convertible notes payable | ||
Related Party Transaction [Line Items] | ||
Debt instrument face amount | $ 150,000 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Repayment of the Notes in shares | $ 36,742 | $ 0 |
Convertible notes payable | 3.50% Convertible Senior Notes due October 1, 2024 | ||
Debt Instrument [Line Items] | ||
Repayment of the Notes in cash | 200 | 0 |
Interest expense on the Notes | $ 3,442 | $ 5,250 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Purchase commitment | $ 9,700 | $ 8,100 |
Percentage of export-oriented units established | 100% | |
Aggregate disputed amount related to transfer pricing and permanent establishment | $ 37,088 | 34,276 |
Total bank guarantees and deposits in respect of contingencies | 7,532 | 7,954 |
Value added tax payable | 5,526 | 6,387 |
GST refund rejected | $ 3,866 | $ 3,322 |