Grid Dynamics (GDYN) 10-Q 2 May 24 2024 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Mar. 31, 2024	Apr. 29, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	001-38685
Entity Registrant Name	Grid Dynamics Holdings, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	83-0632724
Entity Address, Address Line One	5000 Executive Parkway
Entity Address, Address Line Two	Suite 520
Entity Address, City or Town	San Ramon
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94583
City Area Code	650
Local Phone Number	523-5000
Title of 12(b) Security	Common Stock, par value $0.0001 per share
Trading Symbol	GDYN
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,521,182
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Central Index Key	0001743725
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1

UNAUDITED CONDENSED CONSOLIDATE

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 249,437	$ 257,227
Accounts receivable, net of allowance of $1,389 and $1,363 as of March 31, 2024 and December 31, 2023, respectively	53,039	49,824
Unbilled receivables	5,649	3,735
Prepaid income taxes	5,609	3,998
Prepaid expenses and other current assets	8,768	9,196
Total current assets	322,502	323,980
Property and equipment, net	12,552	11,358
Operating lease right-of-use assets, net	10,214	10,446
Intangible assets, net	25,531	26,546
Goodwill	53,868	53,868
Deferred tax assets	7,220	6,418
Other noncurrent assets	3,374	2,549
Total assets	435,261	435,165
Current liabilities
Accounts payable	2,935	3,621
Accrued compensation and benefits	19,914	19,263
Accrued income taxes	9,895	8,828
Operating lease liabilities, current	4,491	4,235
Accrued expenses and other current liabilities	5,885	6,276
Total current liabilities	43,120	42,223
Deferred tax liabilities	3,164	3,274
Operating lease liabilities, noncurrent	6,166	6,761
Total liabilities	52,450	52,258
Commitments and contingencies (Note 14)
Stockholders’ equity
Common stock, $0.0001 par value; 110,000,000 shares authorized; 76,521,182 and 75,887,475 issued and outstanding as of March 31, 2024 and December 31, 2023, respectively	8	8
Additional paid-in capital	401,541	397,511
Accumulated deficit	(19,834)	(15,886)
Accumulated other comprehensive income/(loss)	1,096	1,274
Total stockholders’ equity	382,811	382,907
Total liabilities and stockholders’ equity	$ 435,261	$ 435,165

UNAUDITED CONDENSED CONSOLIDA_2

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,389	$ 1,363
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	110,000,000	110,000,000
Common stock, shares issued (in shares)	76,521,182	75,887,475
Common stock, shares outstanding (in shares)	76,521,182	75,887,475

UNAUDITED CONDENSED CONSOLIDA_3

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Revenues	$ 79,817	$ 80,080
Cost of revenue	52,152	51,505
Gross profit	27,665	28,575
Operating expenses
Engineering, research, and development	4,372	4,203
Sales and marketing	7,292	5,634
General and administrative	21,543	24,730
Total operating expenses	33,207	34,567
Loss from operations	(5,542)	(5,992)
Other income/(expense), net	2,525	1,682
Loss before income taxes	(3,017)	(4,310)
Provision for income taxes	931	3,660
Net loss	(3,948)	(7,970)
Foreign currency translation adjustments, net of tax	(178)	495
Comprehensive loss	$ (4,126)	$ (7,475)
Loss per share
Basic (in dollars per share)	$ (0.05)	$ (0.11)
Diluted (in dollars per share)	$ (0.05)	$ (0.11)
Weighted average shares outstanding
Basic (in shares)	76,151	74,459
Diluted (in shares)	76,151	74,459

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated other comprehensive income/(loss)
Beginning balance (in shares) at Dec. 31, 2022		74,156
Beginning balance at Dec. 31, 2022	$ 363,044	$ 7	$ 378,006	$ (14,121)	$ (848)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(7,970)			(7,970)
Stock-based compensation	13,257		13,257
Exercise of stock options (in shares)		1
Exercise of stock options	10		10
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares)		739
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards	(8,951)		(8,951)
Foreign currency translation adjustments, net of tax	495				495
Ending balance (in shares) at Mar. 31, 2023		74,896
Ending balance at Mar. 31, 2023	359,885	$ 7	382,322	(22,091)	(353)
Beginning balance (in shares) at Dec. 31, 2023		75,887
Beginning balance at Dec. 31, 2023	382,907	$ 8	397,511	(15,886)	1,274
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(3,948)			(3,948)
Stock-based compensation	11,339		11,339
Exercise of stock options (in shares)		69
Exercise of stock options	260		260
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards (in shares)		565
Issuance of shares and payments of tax obligations resulted from net share settlement of vested stock awards	(7,569)		(7,569)
Foreign currency translation adjustments, net of tax	(178)				(178)
Ending balance (in shares) at Mar. 31, 2024		76,521
Ending balance at Mar. 31, 2024	$ 382,811	$ 8	$ 401,541	$ (19,834)	$ 1,096

UNAUDITED CONDENSED CONSOLIDA_4

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities
Net loss	$ (3,948)	$ (7,970)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	2,914	1,645
Operating lease right-of-use assets amortization expense	998	650
Bad debt expense	86	20
Deferred income taxes	(912)	(923)
Stock-based compensation	11,339	13,257
Other (income)/expenses, net	(287)	23
Changes in assets and liabilities:
Accounts receivable	(3,301)	(2,613)
Unbilled receivables	(1,914)	(921)
Prepaid income taxes	(1,611)	(1,639)
Prepaid expenses and other current assets	382	(368)
Accounts payable	(728)	(691)
Accrued compensation and benefits	651	6,054
Operating lease liabilities	(1,105)	(462)
Accrued income taxes	1,067	3,306
Accrued expenses and other current liabilities	(391)	2,306
Net cash provided by operating activities	3,240	11,674
Cash flows from investing activities
Purchase of property and equipment	(3,197)	(1,589)
Other investing activities, net	(739)	0
Net cash used in investing activities	(3,936)	(1,589)
Cash flows from financing activities
Proceeds from exercises of stock options	571	10
Payments of tax obligations resulted from net share settlement of vested stock awards	(7,569)	(8,951)
Net cash used in financing activities	(6,998)	(8,941)
Effect of exchange rate changes on cash and cash equivalents	(96)	495
Net increase/(decrease) in cash and cash equivalents	(7,790)	1,639
Cash and cash equivalents, beginning of period	257,227	256,729
Cash and cash equivalents, end of period	249,437	258,368
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$ 2,495	$ 2,926

Nature of operations and summar

Nature of operations and summary of significant accounting policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of operations and summary of significant accounting policies	Nature of operations and summary of significant accounting policies Grid Dynamics Holdings, Inc. (the “Company”) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services. The Company’s core business includes cloud platform and product engineering, supply chain and advanced manufacturing, and data and machine learning platform engineering. Grid Dynamics also helps organizations become more agile and create innovative digital products and experiences through its deep expertise in emerging technology, such as artificial intelligence (“AI”), data science, cloud computing, big data and DevOps, lean software development practices and a high-performance product culture. The Company’s headquarters and principal place of business is in San Ramon, California. The following is a summary of critical accounting policies consistently applied in the preparation of the accompanying unaudited condensed consolidated financial statements. Full description of significant accounting policies is provided in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the SEC on February 29, 2024. Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023 included in the Company’s annual report on Form 10-K that the Company filed with the SEC on February 29, 2024. Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation. The Company provides services to its customers utilizing its own personnel as well as personnel from subcontractors. One of the subcontractors exclusively supports and performs services on behalf of the Company and its customers. The Company had no ownership in this subcontractor (“Affiliate”) as of March 31, 2024. The Company is required to apply accounting standards which address how a business enterprise should evaluate whether it has a controlling financial interest in a variable interest entity (“VIE”) through means other than voting rights and accordingly should determine whether or not to consolidate the entity. The Company has determined that it is required to consolidate the Affiliate because the Company has the power to direct the VIE’s most significant activities and is the primary beneficiary of the Affiliate. The assets and liabilities of the Affiliate primarily consist of inter-company balances and transactions all of which have been eliminated in consolidation. There was minimal activity in the Affiliate during the three months ended March 31, 2024. Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with the U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include determination of fair value, useful lives and recoverability of intangible assets and goodwill, valuation of stock-based compensation and contingent consideration payable, determination of provision for income taxes, deferred tax assets and liabilities and uncertain tax positions. Allowance for credit losses The Company maintains an allowance against accounts receivable for the estimated probable losses on uncollectible accounts. The allowance is based upon historical loss experience, as adjusted for the current market conditions and forecasts about future economic conditions. As of March 31, 2024 and December 31, 2023 the Company recorded $1.4 million of allowance for credit losses. Stock-based compensation The Company recognizes the cost of its stock-based awards based on the fair value of these awards at the date of grant. The fair value of service-based and performance based awards without market conditions at the date of grant is based on the closing price of the Company’s shares on NASDAQ. For performance awards with market conditions the grant date fair value is measured using the Monte-Carlo model. Grant-date fair value of stock options is estimated using the Black-Scholes-Merton option pricing model. The model requires management to make a number of key assumptions including expected volatility, expected term, risk-free interest rate, and expected dividends. The Company evaluates the assumptions used to value its share-based awards on each grant date. For an award with graded vesting that is subject only to a service condition (e.g., time-based vesting), the Company uses the straight-line attribution method under ASC Topic 718 under which it recognizes compensation cost on a straight-line basis over the total requisite service period for the entire award (i.e., over the requisite service period of the last separately-vesting tranche of the award). For awards with performance conditions the compensation cost recognized is based on the actual or expected achievement of the performance condition based on the graded attribution method. Additionally, the Company applies the “floor” concept so that the amount of compensation cost that is recognized as of any date is at least equal to the grant-date fair value of the vested portion of the award on that date. That is, if the straight-line expense recognized to date is less than the grant date fair value of the award that is legally vested at that date, the company will increase its recognized expense to at least equal the fair value of the vested amount. The requisite service period, which is the vesting period, of service-based and performance-based awards is typically 4 years and 3 years, respectively. The Company made an accounting policy election to account for forfeitures when they occur. Prior period reclassifications The Company presented and analyzed its revenues by customer locations attributing revenues based upon billed customer location. Effective December 31, 2023, the Company attributes revenues to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. The Company believes this change allows it to more effectively analyze its geographies and associated risks. This change did not result in any adjustments to our previously issued financial statements and were applied retrospectively beginning on January 1, 2021. Comparative information for the three months ended March 31, 2023 is presented in the following table: Three Months Ended As reported Reclassified Customer Location (in thousands) North America $ 63,949 $ 60,137 Europe 15,894 15,908 Other 237 4,035 Total Revenues $ 80,080 $ 80,080 Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company will adopt according these changes according to the various timetables the FASB specifies. There were no recently adopted accounting standards which had a material impact on the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows. Recently issued accounting pronouncements On November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures, that expands disclosures requirements around significant segment expenses and other segment items that are included in reported measure of segment profit or loss. The guidance also requires entities to provide in their interim financial reports all disclosures about a reportable segment’s profit or loss and assets that are currently required only on annual basis. Guidance also obliges entities with a single reportable segment to provide all the disclosures under amended ASC 280 in their interim and annual financial statement. The new guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods within fiscal years beginning after December 15, 2024 on a retrospective basis, The Company is currently evaluating the impact on this guidance on its consolidated financial statements. On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740) — Improvements to Income Tax Disclosures, which expands annual disclosure requirements around income taxes primarily related to the rate reconciliation and income taxes paid. The new guidance is effective for annual reporting periods beginning after December 15, 2024 with early adoption permitted. The guidance will be applied on a prospective basis with a retrospective application option. The Company is currently evaluating the impact on this guidance on its consolidated financial statements.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Acquisitions	Acquisitions NextSphere — On April 18, 2023, the Company completed the acquisition of 100% of NextSphere Technologies, Inc. (“NextSphere”). Founded in 2006, NextSphere is headquartered in Tampa, FL, has an engineering presence in Phoenix, AZ, and operates two large engineering centers in India’s tech hubs of Hyderabad and Chennai. NextSphere specializes in modern application development, systems monetization, product development, cloud and infrastructure services, and quality assurance. Over the years, NextSphere has worked with several brands across numerous industry verticals with expertise in Healthcare, Fintech, and CPG/Manufacturing industries. The Company believes this acquisition will support the Company’s objectives of enhancing its technical capabilities, expanding its global footprint, and increasing its client base. The total purchase consideration is $25.2 million and consists of cash consideration of $24.3 million paid at closing, and fair value of the contingent consideration at the date of the acquisition of $0.9 million. The maximum amount of potential contingent cash consideration is $2.0 million. The contingent consideration is payable based on revenue and gross profit metrics to be achieved by NextSphere within 12 months. The Company recorded a liability for the contingent consideration amount based on the Company’s best estimate of the fair value of the expected payout. During the third quarter of 2023 the Company concluded that NextSphere was not going to achieve required performance metrics and has written-off all related contingent consideration liability. Mutual Mobile — On December 23, 2022, the Company acquired 100% of the equity interest of the software company Mutual Mobile Inc. (“Mutual Mobile”). Founded in 2009, Mutual Mobile is based in the United States and India, offers end-to-end design and development of next-generation applications, combining mobile, augmented/virtual/mixed reality, and cloud edge/IoT practices. The acquisition of Mutual Mobile added approximately 180 employees to the Company’s headcount. The acquisition will accelerate Company’s strategic expansion into the India engineering market and further solidifies Grid Dynamics’ commitment to global growth. The total purchase consideration is $16.1 million and consists of cash consideration of $12.8 million paid at closing, and fair value of the contingent consideration at the date of the acquisition of $3.3 million. The maximum amount of potential contingent cash consideration is $5.0 million. The contingent consideration is payable based on revenue and gross profit metrics to be achieved by Mutual Mobile within 12 months. The Company recorded a liability for the contingent consideration amount based on the Company’s best estimate of the fair value of the expected payout. During the third quarter of 2023 the Company concluded that Mutual Mobile was not going to achieve required performance metrics and has written-off all related contingent consideration liability. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: NextSphere Mutual Mobile (in thousands) Current assets $ 9,708 $ 4,982 Property, plant and equipment 192 132 Intangible assets 9,906 3,749 Goodwill 9,031 8,879 Other noncurrent assets 511 102 Total assets acquired $ 29,348 $ 17,844 Accounts payable, accrued expenses and other liabilities (1,990) (1,576) Deferred taxes (2,427) (686) Total liabilities assumed $ (4,417) $ (2,262) Purchase price allocation $ 24,931 $ 15,582 Current assets acquired include cash and cash equivalents in the amount of $6.4 million for NextSphere and $3.5 million for Mutual Mobile. The purchase price for all acquisitions was assigned to assets acquired and liabilities assumed based on their estimated fair values as of the date of acquisition, and any excess was allocated to goodwill, as shown in the table above. The goodwill recognized as a result of the NextSphere acquisition represents the value the Company expects to achieve through the implementation of operational synergies and growth opportunities as the Company expands its global reach as well as the assembled workforce acquired. The goodwill is not deductible for income tax purposes. The goodwill recognized as a result of the Mutual Mobile acquisition is attributable to synergies expected to be achieved by combining the businesses of the Company and Mutual Mobile, expected future contracts, the assembled workforce acquired and other factors. The goodwill is not deductible for income tax purposes. During the fourth quarter of 2023, the Company finalized working capital adjustment for NextSphere that resulted in a decrease of original purchase price in the amount of $0.3 million and updated fair value of deferred taxes by $0.2 million. These adjustments resulted in a corresponding net change in goodwill by $0.1 million. The Company then finalized the fair value of the assets acquired and liabilities assumed in the acquisition of NextSphere. During the fourth quarter of 2023, the Company finalized working capital adjustment for Mutual Mobile which reduced the original purchase price by $0.5 million and decreased fair value of deferred taxes by $0.2 million. These adjustments resulted in a corresponding net change in goodwill by $0.7 million. The Company then finalized the fair value of the assets acquired and liabilities assumed in the acquisition of Mutual Mobile. The estimated fair value, useful lives and amortization methods of identifiable intangible assets as of the date of acquisition updated for any changes as of March 31, 2024 are as follows: NextSphere Mutual Mobile Fair Value Useful Life Fair Value Useful Life (in thousands, except years) Customer relationships $ 8,415 10 years $ 3,453 8 years Acquired software 995 2.5 years — — Trade name 496 2 years 152 4 years Non-compete agreements — — 144 2 years Total identified intangible assets $ 9,906 $ 3,749 The Company used the acquisition method of accounting for all acquisitions, and consequently, the results of operations for all acquisitions are reported in the consolidated financial statements from the dates of acquisition. Pro forma results of operations have not been presented because the effect of the acquisitions on the Company’s condensed consolidated financial statements was not material individually or in the aggregate.

Fair value

Fair value	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair value	Fair value Estimates of fair value of financial instruments not carried at fair value on a recurring basis are generally subjective in nature, and are determined as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Company’s financial assets and liabilities, are generally short-term in nature; therefore, the carrying value of these items approximates their fair value. The following table summarizes certain fair value information as of March 31, 2024 and December 31, 2023 for financial assets and liabilities measured at fair value on a recurring basis, as well as estimated fair values of certain other financial assets and liabilities not measured on a recurring basis: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) March 31, 2024 Financial Assets: Cash equivalents: Money market funds $ 206,363 $ 206,363 $ 206,363 $ — $ — Short-term investments: Time deposits $ 739 $ 739 $ — $ 739 $ — Long-term investments: Marketable equity securities $ 731 $ 731 $ 731 $ — $ — Non-marketable equity securities $ 1,250 December 31, 2023 Financial Assets: Cash equivalents: Money market funds $ 204,388 $ 204,388 $ 204,388 $ — $ — Long-term investments: Marketable equity securities $ 421 $ 421 $ 421 $ — $ — Non-marketable equity securities $ 1,250 Investments in equity securities The Company holds investments in public and privately-held entities. As the Company does not have either controlling interest or significant influence over these entities investments are accounted using two different methods depending on the type of equity investments: • Equity investments in public entities are measured and carried at fair value with any changes recognized in Other income/(expense), net in the condensed consolidated statements of loss and comprehensive loss. • Equity investments that do not have readily determinable fair value are accounted for under the fair value measurement alternative. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on non-marketable securities, whether realized or unrealized, are recognized in Other income/(expense), net in the condensed consolidated statements of loss and comprehensive loss. The Company classifies its investments in equity securities in Other noncurrent assets in the Company’s unaudited condensed consolidated balance sheets.

Property and equipment, net

Property and equipment, net	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment, net Property and equipment, net consisted of the following: Estimated As of March 31, December 31, (in years) (in thousands) Computers and equipment 2-6 $ 14,224 $ 13,837 Furniture and fixtures 3-10 1,558 1,732 Leasehold improvements 2-8 1,338 1,343 Software 3-5 1,236 1,236 Machinery and automobiles 4-6 581 570 $ 18,937 $ 18,718 Less: Accumulated depreciation and amortization (12,908) (12,441) $ 6,029 $ 6,277 Capitalized software development costs 2 $ 11,472 $ 9,050 Less: Accumulated amortization (4,949) (3,969) $ 6,523 $ 5,081 Property and equipment, net $ 12,552 $ 11,358

Intangible assets, net

Intangible assets, net	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, net	Intangible assets, net Intangible assets, net consisted of the following: Estimated As of March 31, December 31, (in years) (in thousands) Customer relationships 8-12 $ 27,839 $ 27,839 Tradenames 2-10 5,324 5,324 Acquired software 2.5 995 995 Non-compete agreements 2 584 584 $ 34,742 $ 34,742 Less: Accumulated amortization (9,211) (8,196) Intangible assets, net $ 25,531 $ 26,546 Based on the carrying value of the Company’s existing intangible assets as of March 31, 2024, the estimated amortization expense for the future years is as follows: Amount (in thousands) 2024 (excluding three months ended March 31, 2024) 3,035 2025 3,625 2026 3,168 2027 3,130 2028 3,107 Thereafter 9,466 Total $ 25,531

Accrued expenses and other curr

Accrued expenses and other current liabilities	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued expenses and other current liabilities	Accrued expenses and other current liabilities The components of accrued expenses and other current liabilities were as follows: As of March 31, December 31, 2023 (in thousands) Accrued expenses $ 3,564 $ 2,943 Customer deposits 718 756 Deferred revenue 610 577 Value added tax payable 444 993 Other liabilities 549 1,007 Total accrued expenses and other current liabilities $ 5,885 $ 6,276

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	Debt Revolving Credit Facility — On March 15, 2022, the Company entered into a Credit Agreement (the “2022 Credit Agreement”) by and among the Company, as borrower, the guarantors party thereto from time to time, the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent for the lenders (the “Agent”). The 2022 Credit Agreement provides for a secured multicurrency revolving loan facility with an initial aggregate principal amount of up to $30.0 million, with a $10.0 million letter of credit sublimit. The Company may increase the size of the revolving loan facility up to $50.0 million, subject to certain conditions and additional commitments from existing and/or new lenders. The 2022 Credit Agreement matures on March 15, 2025. At the Company’s option, borrowings under the 2022 Credit Agreement accrue interest at a per annum rate based on either (i) the base rate plus a margin ranging from 1.0% to 1.5%, (ii) an adjusted term Secured Overnight Financing Rate (“SOFR”) or adjusted the Euro Interbank Offer Rate (“EURIBOR”) (based on one, three or six-month interest periods) plus a margin ranging from 2.0% to 2.5%, or (iii) an adjusted daily simple SOFR rate (or SONIA rate in the case of loans denominated in pounds sterling, or SARON rate in the case of loans denominated in Swiss francs), plus a margin ranging from 2.0% to 2.5%, in each case, with the applicable margin determined based on the Company’s consolidated total leverage ratio. The Company is also obligated to pay other closing fees, administration fees, commitment fees and letter of credit fees customary for a credit facility of this size and type. The Company’s obligations under the 2022 Credit Agreement are required to be guaranteed by certain of its domestic subsidiaries meeting materiality thresholds set forth in the 2022 Credit Agreement. Such obligations, including the guaranties, are secured by substantially all of the personal property of the Company and the Company’s subsidiary guarantors. The 2022 Credit Agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its subsidiaries to, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments and acquisitions, make certain restricted payments, dispose of assets, enter into certain transactions with affiliates, and enter into burdensome agreements, in each case, subject to limitations and exceptions set forth in the 2022 Credit Agreement. The Company is also required to maintain compliance with a consolidated total leverage ratio, determined in accordance with the terms of the 2022 Credit Agreement. As of March 31, 2024, the Company was in compliance with all covenants contained in the 2022 Credit Agreement.

Revenues

Revenues	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenues	Revenues Disaggregation of revenues The tables below present disaggregated revenues from contracts with customer by customer location, industries and contract-types. The Company believes this disaggregation best depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by industry, market and other economic factors. The Company has a single reportable segment for the three months ended March 31, 2024 and 2023. The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended 2024 2023 Customer Location (in thousands) North America $ 63,740 $ 60,137 Europe 13,402 15,908 Other 2,675 4,035 Total Revenues $ 79,817 $ 80,080 The following table shows the disaggregation of the Company’s revenues by main vertical markets: Three Months Ended 2024 2023 Vertical (in thousands) Retail $ 24,629 $ 25,396 Technology, Media and Telecom 24,033 26,811 Finance 10,243 6,515 CPG/Manufacturing (1) 9,559 12,646 Healthcare and Pharma 3,009 3,152 Other 8,344 5,560 Total Revenues $ 79,817 $ 80,080 __________________________ (1) CPG stands for Consumer Packaged Goods The following table shows the disaggregation of the Company’s revenues by contract types: Three Months Ended 2024 2023 Contract Type (in thousands) Time-and-material $ 74,820 $ 70,526 Fixed-fee 4,412 9,554 Other revenues 585 — Total Revenues $ 79,817 $ 80,080 Contract balances A contract asset is a right to consideration that is conditional upon factors other than the passage of time. A contract liability, or deferred revenue, consists of advance payments and billings in excess of revenues recognized. As of March 31, 2024 and December 31, 2023 the Company did not have contract assets recorded in its unaudited condensed consolidated balance sheet. Contract liabilities were $0.6 million as of March 31, 2024 and December 31, 2023, respectively. These balances were classified as Accrued and other current liabilities in the unaudited condensed consolidated balance sheets. During the first quarter of 2024, the Company recognized $0.3 million of revenues that were included in Accrued and other current liabilities at December 31, 2023. During the first quarter of 2023, the Company recognized $0.4 million of revenues that were included in Accrued and other current liabilities at December 31, 2022. Remaining performance obligations As of March 31, 2024, the aggregate amount of transaction price allocated to remaining performance obligations was $4.7 million. Our remaining performance obligations represent commitments for future services for which work has not been performed and revenues are to be recorded in future periods. The Company expects to recognize approximately 50.3% of its remaining performance obligations as revenues during nine months of fiscal year 2024, and an additional 49.7% in 2025. Remaining performance obligations include currently recorded contract liability as well as amounts that will be invoiced in future periods and excludes the contracts that meet at least one of the following criteria under ASC Topic 606 “ Revenue from Contracts with Customers ”: 1) contracts with an original duration of one year or less, including contracts that can be terminated for convenience without a substantive penalty, 2) contracts for which the Company recognizes revenues based on the right to invoice for services performed, 3) variable consideration allocated entirely to a wholly unsatisfied performance obligation or to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation in accordance with ASC 606-10-25-14(b), for which the criteria in ASC 606-10-32-40 have been met, or 4) variable consideration in the form of a sales-based or usage-based royalty promised in exchange for a license of intellectual property. Many of the Company’s contracts met one or more of these exemptions as of March 31, 2024. Customers concentration The following table shows the amount of revenue derived from each customer exceeding 10% of the Company’s revenue: Three Months Ended 2024 2023 Customer 1 16.7 % 13.9 % The following table shows number of customers exceeding 10% of the Company’s billed and unbilled receivable balances: As of March 31, December 31, Accounts receivable 1 1 Unbilled receivable 3 2 Transactions with related parties

Leases

Leases	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Leases	Leases A major part of the Company’s lease obligations is for office real estate. The Company may also lease corporate apartments, cars and office equipment. Payments on some of our leases may depend on index or rate, including Consumer Price Index. Such payments are included in the calculation of lease liability and assets at the commencement dates, all future changes are accounted as variable payments similar to other variable payments, such as common area maintenance, property and other taxes, utilities and insurance that are based on the lessor’s cost. The Company’s leases have remaining lease terms ranging from 0.1 to 6.2 years . Certain lease agreements may include the option to extend or terminate before the end of the contractual term and are often non-cancelable or cancellable only by the payment of penalties. The Company includes these options in the lease term when it is reasonably certain that they will be exercised. As of March 31, 2024 and December 31, 2023, the Company had no finance leases. Operating lease expense is recorded on a straight-line basis over the lease term. During the three months ended March 31, 2024 and 2023 lease costs were as follows: Three Months Ended 2024 2023 (in thousands) Operating lease cost $ 1,193 $ 781 Variable lease cost 76 194 Short-term lease cost 54 98 Total lease cost $ 1,323 $ 1,073 Supplemental information related to operating lease transactions is as follows: Three Months Ended 2024 2023 (in thousands) Lease liability payments $ 1,168 $ 727 Lease assets obtained in exchange for liabilities $ 853 $ 1,022 Non-cash net change in lease assets due to lease modifications $ 40 $ — Non-cash net change in lease liability due to lease modifications $ (40) $ — Weighted average remaining lease term and discount rate as of March 31, 2024 and December 31, 2023 is as follows: As of March 31, December 31, Weighted average remaining lease term, in years 3.2 3.4 Weighted average discount rate 7.2 % 7.0 % As of March 31, 2024, operating lease liabilities will mature as follows: Lease Payments (in thousands) 2024 (excluding three months ended March 31, 2024) $ 3,461 2025 3,700 2026 2,331 2027 2,015 2028 285 Thereafter 268 Total lease payments 12,060 Less: imputed interest (1,403) Total $ 10,657 There were no material lease agreements signed with related parties as of March 31, 2024 and December 31, 2023. As of March 31, 2024, the Company had committed to payments of $0.4 million related to operating lease agreement that had not yet commenced as of March 31, 2024. This operating lease will commence in 2024 with the lease term of 6.2 years. The Company does not have finance lease agreements that had not yet commenced.

Income taxes

Income taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income taxes	Income taxes The Company recorded income tax expense of $0.9 million and $3.7 million for the three months ended March 31, 2024 and 2023, respectively. The Company’s effective tax rate was (30.9)% and (84.9)% for the first quarter of 2024 and 2023, respectively. The change in the effective tax rate for the three months ended March 31, 2024, as compared to the same period in 2023, was attributable mainly to Section 162(m) compensation deduction limitations, foreign rate differential, and foreign inclusion adjustments. For the three months ended March 31, 2024, the Company used a discrete effective tax rate method to calculate income taxes due to sensitivity of the forecast. Through March 31, 2024, the Company determined that small changes in the estimated “ordinary” income would result in significant changes in the estimated annual effective tax rate causing material distortion in the year-to-date tax provision. As of March 31, 2024, the Company is unable to produce a reliable estimate of ordinary income for the quarter and year ending 2024 due to the inability to reliably or accurately forecast 2024 operating expenses. Similarly, for the three months ended March 31, 2024, due to uncertainties created by geopolitical risks, the Company’s estimated annual effective tax rate method would not provide a reliable estimate and therefore was not used.

Stock-based compensation

Stock-based compensation	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based compensation	Stock-based compensation Employee stock-based compensation cost recognized in the condensed consolidated statements of loss and comprehensive loss was as follows: Three Months Ended 2024 2023 (in thousands) Cost of revenue $ 482 $ 460 Engineering, research, and development 1,288 1,653 Sales and marketing 1,677 1,055 General and administrative 7,892 10,089 Total stock-based compensation $ 11,339 $ 13,257 Stock Options 2018 Plan Stock option activity under the Company’s 2018 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2023 1,486,428 $ 3.54 $ 14,552 Options exercised (65,533) $ 3.54 Options outstanding as of March 31, 2024 1,420,895 $ 3.54 $ 12,433 4.8 Options vested and exercisable as of March 31, 2024 1,420,895 $ 3.54 $ 12,433 4.8 As of March 31, 2024, the Company fully recognized stock-based compensation costs related to 2018 Plan options. 2020 Plan As of March 31, 2024, 1.9 million shares were available for grant under 2020 Incentive Stock Plan (“2020 Plan”). Stock option activity under the Company’s 2020 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2023 3,165,715 $ 12.79 $ 7,197 Options granted 19,000 $ 13.54 Options exercised (3,587) $ 7.90 Options forfeited (43,175) $ 14.75 Options expired (27,541) $ 17.46 Options outstanding as of March 31, 2024 3,110,412 $ 12.73 $ 5,066 7.3 Options vested and exercisable as of March 31, 2024 1,834,453 $ 11.73 $ 4,470 6.5 The Company elected the policy to account for forfeitures upon occurrence. The total unrecognized compensation expenses related to 2020 Stock Plan options as of March 31, 2024 was $7.7 million to be expensed on a straight-line basis over the remaining 2.5 years. Restricted Stock Units RSUs granted do not participate in earnings, dividends, and do not have voting rights until vested. The following table summarizes activity of the Company’s RSUs for the three months ended March 31, 2024: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2023 729,213 $ 11.99 Awards granted 1,411,350 $ 13.34 Awards vested and released (306,063) $ 11.34 Awards forfeited (1,500) $ 13.54 Unvested awards as of March 31, 2024 1,833,000 $ 13.14 The total unrecognized compensation expenses related to 2020 Stock Plan RSUs as of March 31, 2024 was $20.3 million to be expensed on a straight-line basis over 2.4 years. Performance Stock Units The following table summarizes activity of the Company’s PSUs for the three months ended March 31, 2024: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2023 (1) 822,895 $ 11.97 Awards granted (2) 1,626,600 $ 14.51 Performance achievement adjustment (3) 200,614 $ 14.21 Awards vested and released (822,895) $ 11.97 Unvested awards as of March 31, 2024 1,827,214 $ 14.48 __________________________ (1) Reported at the certified performance achievement of 170% of the target shares granted. (2) Reported of 100% of the target shares granted. (3) Reported at the estimate performance achievement of 137% for the first tranche of the target shares granted in 2024. The total estimated unrecognized compensation expenses related to 2020 Stock Plan PSUs as of March 31, 2024 was $22.7 million to be expensed over 1.9 years.

Earnings per share

Earnings per share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings per share	Earnings per share Basic earnings per share (“EPS”) is computed by dividing the net income applicable to common stockholders for the period by the weighted average number of shares of common stock outstanding during the same period. Diluted EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options, restricted stock units, and performance stock units. The dilutive effect of potentially dilutive securities is reflected in diluted EPS in order of dilution and by application of the treasury stock method and the if-converted method for stock-based compensation and convertible preferred securities, respectively. The following table sets forth the computation of basic and diluted EPS of common stock as follows: Three Months Ended 2024 2023 (in thousands, except per share data) Numerator for basic and diluted loss per share Net loss (3,948) (7,970) Denominator for basic and diluted loss per share Weighted-average shares outstanding – basic and diluted 76,151 74,459 Net loss per share Basic $ (0.05) $ (0.11) Diluted $ (0.05) $ (0.11) The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three Months Ended 2024 2023 (in thousands) Stock options to purchase common stock 4,616 4,697 Restricted stock units 1,962 2,221 Performance stock units 2,279 1,102 Total 8,857 8,020

Segment and geographic informat

Segment and geographic information	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Segment and geographic information	Segment and geographic information The Company’s business activities have similar economic characteristics and are similar in all of the following areas: the nature of services, the type or class of customer for which they provide their services, and the methods used to provide their services. In accordance with ASC Topic 280, Segment Reporting , the Company has determined it has single operating and reportable segments. This determination is consistent with the financial information regularly reviewed by the chief operating decision maker who assesses the Company’s performance and allocates resources based on the Company’s consolidated financial information. Geographic Information The following table presents revenues by customer location for the three months ended March 31, 2024 and 2023. The Company attributes customers to respective countries based upon location of the customer served. It differs from the prior period definition that was based upon location of the customer billed. Refer to Note 1 for more details on reclassifications. Three Months Ended 2024 2023 (in thousands) United States $ 63,509 $ 59,761 United Kingdom 5,509 8,995 Netherlands 2,500 3,473 Other 8,299 7,851 Total Revenues $ 79,817 $ 80,080 Long-lived assets include property and equipment, net of accumulated depreciation and amortization. Physical locations and values of the Company’s long-lived assets are summarized below: As of March 31, December 31, ( in thousands) Serbia $ 2,575 $ 2,457 United States 2,498 2,174 Ukraine 2,496 2,437 Poland 1,875 1,522 Other 3,108 2,768 Total $ 12,552 $ 11,358

Commitments and contingencies

Commitments and contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and contingencies	Commitments and contingencies Legal Matters The Company is subject to legal proceedings and claims that arise in the ordinary course of its business. Management evaluates each claim and provides for potential loss when the claim is probable to be paid and reasonably estimable. While adverse decisions in certain of these litigation matters, claims and administrative proceedings could have a material effect on a particular period’s results of operations, subject to the uncertainties inherent in estimating future costs for contingent liabilities, management believes that any future accruals with respect to these currently known contingencies would not have a material effect on the financial condition, liquidity or cash flows of the Company. There were no material amounts required to be reflected in these unaudited condensed consolidated financial statements related to contingencies.

Subsequent events

Subsequent events	3 Months Ended
	Mar. 31, 2024
Subsequent Events [Abstract]
Subsequent events	Subsequent events The Company performed its subsequent event procedures through May 2, 2024, the date these unaudited condensed consolidated financial statements were issued.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net loss	$ (3,948)	$ (7,970)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Nature of operations and summ_2

Nature of operations and summary of significant accounting policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Nature of operations	Grid Dynamics Holdings, Inc. (the “Company”) is a leading provider of technology consulting, platform and product engineering, and advanced analytics services. The Company’s core business includes cloud platform and product engineering, supply chain and advanced manufacturing, and data and machine learning platform engineering. Grid Dynamics also helps organizations become more agile and create innovative digital products and experiences through its deep expertise in emerging technology, such as artificial intelligence (“AI”), data science, cloud computing, big data and DevOps, lean software development practices and a high-performance product culture. The Company’s headquarters and principal place of business is in San Ramon, California.
Basis of presentation	Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements reflect all normal and recurring adjustments that are, in the opinion of the Company’s management, necessary for the fair presentation of the results of operations for the interim periods. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024. These interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2023 included in the Company’s annual report on Form 10-K that the Company filed with the SEC on February 29, 2024.
Principles of consolidation	Principles of consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and all of its subsidiaries that are directly or indirectly owned or controlled. Intercompany transactions and balances have been eliminated upon consolidation.
Principles of consolidation, variable interest entities	The Company provides services to its customers utilizing its own personnel as well as personnel from subcontractors. One of the subcontractors exclusively supports and performs services on behalf of the Company and its customers. The Company had no ownership in this subcontractor (“Affiliate”) as of March 31, 2024. The Company is required to apply accounting standards which address how a business enterprise should evaluate whether it has a controlling financial interest in a variable interest entity (“VIE”) through means other than voting rights and accordingly should determine whether or not to consolidate the entity. The Company has determined that it is required to consolidate the Affiliate because the Company has the power to direct the VIE’s most significant activities and is the primary beneficiary of the Affiliate. The assets and liabilities of the Affiliate primarily consist of inter-company balances and transactions all of which have been eliminated in consolidation. There was minimal activity in the Affiliate during the three months ended March 31, 2024.
Use of estimates	Use of estimates The preparation of the unaudited condensed consolidated financial statements in accordance with the U.S. GAAP requires the Company to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ from these estimates and such differences could be material. Significant estimates include determination of fair value, useful lives and recoverability of intangible assets and goodwill, valuation of stock-based compensation and contingent consideration payable, determination of provision for income taxes, deferred tax assets and liabilities and uncertain tax positions.
Allowance for credit losses	Allowance for credit losses
Stock-based compensation expense	Stock-based compensation The Company recognizes the cost of its stock-based awards based on the fair value of these awards at the date of grant. The fair value of service-based and performance based awards without market conditions at the date of grant is based on the closing price of the Company’s shares on NASDAQ. For performance awards with market conditions the grant date fair value is measured using the Monte-Carlo model. Grant-date fair value of stock options is estimated using the Black-Scholes-Merton option pricing model. The model requires management to make a number of key assumptions including expected volatility, expected term, risk-free interest rate, and expected dividends. The Company evaluates the assumptions used to value its share-based awards on each grant date. For an award with graded vesting that is subject only to a service condition (e.g., time-based vesting), the Company uses the straight-line attribution method under ASC Topic 718 under which it recognizes compensation cost on a straight-line basis over the total requisite service period for the entire award (i.e., over the requisite service period of the last separately-vesting tranche of the award). For awards with performance conditions the compensation cost recognized is based on the actual or expected achievement of the performance condition based on the graded attribution method. Additionally, the Company applies the “floor” concept so that the amount of compensation cost that is recognized as of any date is at least equal to the grant-date fair value of the vested portion of the award on that date. That is, if the straight-line expense recognized to date is less than the grant date fair value of the award that is legally vested at that date, the company will increase its recognized expense to at least equal the fair value of the vested amount. The requisite service period, which is the vesting period, of service-based and performance-based awards is typically 4 years and 3 years, respectively. The Company made an accounting policy election to account for forfeitures when they occur.
Prior period reclassifications	Prior period reclassifications The Company presented and analyzed its revenues by customer locations attributing revenues based upon billed customer location. Effective December 31, 2023, the Company attributes revenues to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. The Company believes this change allows it to more effectively analyze its geographies and associated risks. This change did not result in any adjustments to our previously issued financial statements and were applied retrospectively beginning on January 1, 2021. Comparative information for the three months ended March 31, 2023 is presented in the following table: Three Months Ended As reported Reclassified Customer Location (in thousands) North America $ 63,949 $ 60,137 Europe 15,894 15,908 Other 237 4,035 Total Revenues $ 80,080 $ 80,080
Recently adopted accounting pronouncements and recently issued accounting pronouncements	Recently adopted accounting pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (the “FASB”), in the form of Accounting Standards Updates (“ASUs”), to the FASB’s ASC. The Company will adopt according these changes according to the various timetables the FASB specifies. There were no recently adopted accounting standards which had a material impact on the Company’s consolidated financial position, results of operations, changes in stockholders’ equity and cash flows. Recently issued accounting pronouncements On November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures, that expands disclosures requirements around significant segment expenses and other segment items that are included in reported measure of segment profit or loss. The guidance also requires entities to provide in their interim financial reports all disclosures about a reportable segment’s profit or loss and assets that are currently required only on annual basis. Guidance also obliges entities with a single reportable segment to provide all the disclosures under amended ASC 280 in their interim and annual financial statement. The new guidance is effective for annual reporting periods beginning after December 15, 2023, and interim reporting periods within fiscal years beginning after December 15, 2024 on a retrospective basis, The Company is currently evaluating the impact on this guidance on its consolidated financial statements. On December 14, 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures (Topic 740) — Improvements to Income Tax Disclosures, which expands annual disclosure requirements around income taxes primarily related to the rate reconciliation and income taxes paid. The new guidance is effective for annual reporting periods beginning after December 15, 2024 with early adoption permitted. The guidance will be applied on a prospective basis with a retrospective application option. The Company is currently evaluating the impact on this guidance on its consolidated financial statements.

Fair Value Measures and Disclos

Fair Value Measures and Disclosures (Policies)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Investments in equity securities	Investments in equity securities The Company holds investments in public and privately-held entities. As the Company does not have either controlling interest or significant influence over these entities investments are accounted using two different methods depending on the type of equity investments: • Equity investments in public entities are measured and carried at fair value with any changes recognized in Other income/(expense), net in the condensed consolidated statements of loss and comprehensive loss. • Equity investments that do not have readily determinable fair value are accounted for under the fair value measurement alternative. Under the measurement alternative, the carrying value is measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. All gains and losses on non-marketable securities, whether realized or unrealized, are recognized in Other income/(expense), net in the condensed consolidated statements of loss and comprehensive loss.

Nature of operations and summ_3

Nature of operations and summary of significant accounting policies (Tables)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Schedule of Reclassifications	Comparative information for the three months ended March 31, 2023 is presented in the following table: Three Months Ended As reported Reclassified Customer Location (in thousands) North America $ 63,949 $ 60,137 Europe 15,894 15,908 Other 237 4,035 Total Revenues $ 80,080 $ 80,080

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of business acquisition, assets acquired and liabilities assumed	The following table summarizes the estimated fair values of the assets acquired and liabilities assumed: NextSphere Mutual Mobile (in thousands) Current assets $ 9,708 $ 4,982 Property, plant and equipment 192 132 Intangible assets 9,906 3,749 Goodwill 9,031 8,879 Other noncurrent assets 511 102 Total assets acquired $ 29,348 $ 17,844 Accounts payable, accrued expenses and other liabilities (1,990) (1,576) Deferred taxes (2,427) (686) Total liabilities assumed $ (4,417) $ (2,262) Purchase price allocation $ 24,931 $ 15,582
Schedule of business acquisition, finite-lived intangibles	The estimated fair value, useful lives and amortization methods of identifiable intangible assets as of the date of acquisition updated for any changes as of March 31, 2024 are as follows: NextSphere Mutual Mobile Fair Value Useful Life Fair Value Useful Life (in thousands, except years) Customer relationships $ 8,415 10 years $ 3,453 8 years Acquired software 995 2.5 years — — Trade name 496 2 years 152 4 years Non-compete agreements — — 144 2 years Total identified intangible assets $ 9,906 $ 3,749

Fair value (Tables)

Fair value (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurements, Recurring and Nonrecurring	The following table summarizes certain fair value information as of March 31, 2024 and December 31, 2023 for financial assets and liabilities measured at fair value on a recurring basis, as well as estimated fair values of certain other financial assets and liabilities not measured on a recurring basis: Fair Value Hierarchy Balance Estimated Fair Value Level 1 Level 2 Level 3 (in thousands) March 31, 2024 Financial Assets: Cash equivalents: Money market funds $ 206,363 $ 206,363 $ 206,363 $ — $ — Short-term investments: Time deposits $ 739 $ 739 $ — $ 739 $ — Long-term investments: Marketable equity securities $ 731 $ 731 $ 731 $ — $ — Non-marketable equity securities $ 1,250 December 31, 2023 Financial Assets: Cash equivalents: Money market funds $ 204,388 $ 204,388 $ 204,388 $ — $ — Long-term investments: Marketable equity securities $ 421 $ 421 $ 421 $ — $ — Non-marketable equity securities $ 1,250

Property and equipment, net (Ta

Property and equipment, net (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment, net consisted of the following: Estimated As of March 31, December 31, (in years) (in thousands) Computers and equipment 2-6 $ 14,224 $ 13,837 Furniture and fixtures 3-10 1,558 1,732 Leasehold improvements 2-8 1,338 1,343 Software 3-5 1,236 1,236 Machinery and automobiles 4-6 581 570 $ 18,937 $ 18,718 Less: Accumulated depreciation and amortization (12,908) (12,441) $ 6,029 $ 6,277 Capitalized software development costs 2 $ 11,472 $ 9,050 Less: Accumulated amortization (4,949) (3,969) $ 6,523 $ 5,081 Property and equipment, net $ 12,552 $ 11,358

Intangible assets, net (Tables)

Intangible assets, net (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible assets	Intangible assets, net consisted of the following: Estimated As of March 31, December 31, (in years) (in thousands) Customer relationships 8-12 $ 27,839 $ 27,839 Tradenames 2-10 5,324 5,324 Acquired software 2.5 995 995 Non-compete agreements 2 584 584 $ 34,742 $ 34,742 Less: Accumulated amortization (9,211) (8,196) Intangible assets, net $ 25,531 $ 26,546
Schedule of Estimated amortization expense	Based on the carrying value of the Company’s existing intangible assets as of March 31, 2024, the estimated amortization expense for the future years is as follows: Amount (in thousands) 2024 (excluding three months ended March 31, 2024) 3,035 2025 3,625 2026 3,168 2027 3,130 2028 3,107 Thereafter 9,466 Total $ 25,531

Accrued expenses and other cu_2

Accrued expenses and other current liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of accrued expenses and other current liabilities	The components of accrued expenses and other current liabilities were as follows: As of March 31, December 31, 2023 (in thousands) Accrued expenses $ 3,564 $ 2,943 Customer deposits 718 756 Deferred revenue 610 577 Value added tax payable 444 993 Other liabilities 549 1,007 Total accrued expenses and other current liabilities $ 5,885 $ 6,276

Revenues (Tables)

Revenues (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table shows the disaggregation of the Company’s revenues by major customer location. Revenues are attributed to geographic regions based upon location of the customer served irrespective of the location billed, or the location of the delivery center performing the work. Substantially all of the revenue in our North America region relates to operations in the United States. Three Months Ended 2024 2023 Customer Location (in thousands) North America $ 63,740 $ 60,137 Europe 13,402 15,908 Other 2,675 4,035 Total Revenues $ 79,817 $ 80,080 The following table shows the disaggregation of the Company’s revenues by main vertical markets: Three Months Ended 2024 2023 Vertical (in thousands) Retail $ 24,629 $ 25,396 Technology, Media and Telecom 24,033 26,811 Finance 10,243 6,515 CPG/Manufacturing (1) 9,559 12,646 Healthcare and Pharma 3,009 3,152 Other 8,344 5,560 Total Revenues $ 79,817 $ 80,080 __________________________ (1) CPG stands for Consumer Packaged Goods The following table shows the disaggregation of the Company’s revenues by contract types: Three Months Ended 2024 2023 Contract Type (in thousands) Time-and-material $ 74,820 $ 70,526 Fixed-fee 4,412 9,554 Other revenues 585 — Total Revenues $ 79,817 $ 80,080
Schedules of Concentration of Risk, by Risk Factor	The following table shows the amount of revenue derived from each customer exceeding 10% of the Company’s revenue: Three Months Ended 2024 2023 Customer 1 16.7 % 13.9 % The following table shows number of customers exceeding 10% of the Company’s billed and unbilled receivable balances: As of March 31, December 31, Accounts receivable 1 1 Unbilled receivable 3 2

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2024
Leases [Abstract]
Schedule of Lease Cost and Supplemental Lease Information	Operating lease expense is recorded on a straight-line basis over the lease term. During the three months ended March 31, 2024 and 2023 lease costs were as follows: Three Months Ended 2024 2023 (in thousands) Operating lease cost $ 1,193 $ 781 Variable lease cost 76 194 Short-term lease cost 54 98 Total lease cost $ 1,323 $ 1,073 Supplemental information related to operating lease transactions is as follows: Three Months Ended 2024 2023 (in thousands) Lease liability payments $ 1,168 $ 727 Lease assets obtained in exchange for liabilities $ 853 $ 1,022 Non-cash net change in lease assets due to lease modifications $ 40 $ — Non-cash net change in lease liability due to lease modifications $ (40) $ — Weighted average remaining lease term and discount rate as of March 31, 2024 and December 31, 2023 is as follows: As of March 31, December 31, Weighted average remaining lease term, in years 3.2 3.4 Weighted average discount rate 7.2 % 7.0 %
Schedule of Operating Lease Maturities	As of March 31, 2024, operating lease liabilities will mature as follows: Lease Payments (in thousands) 2024 (excluding three months ended March 31, 2024) $ 3,461 2025 3,700 2026 2,331 2027 2,015 2028 285 Thereafter 268 Total lease payments 12,060 Less: imputed interest (1,403) Total $ 10,657

Stock-based compensation (Table

Stock-based compensation (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of stock-based compensation	Employee stock-based compensation cost recognized in the condensed consolidated statements of loss and comprehensive loss was as follows: Three Months Ended 2024 2023 (in thousands) Cost of revenue $ 482 $ 460 Engineering, research, and development 1,288 1,653 Sales and marketing 1,677 1,055 General and administrative 7,892 10,089 Total stock-based compensation $ 11,339 $ 13,257
Schedule of option activity	Stock option activity under the Company’s 2018 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2023 1,486,428 $ 3.54 $ 14,552 Options exercised (65,533) $ 3.54 Options outstanding as of March 31, 2024 1,420,895 $ 3.54 $ 12,433 4.8 Options vested and exercisable as of March 31, 2024 1,420,895 $ 3.54 $ 12,433 4.8 Stock option activity under the Company’s 2020 Plan is set forth below: Number of Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Contractual Term Options outstanding as of December 31, 2023 3,165,715 $ 12.79 $ 7,197 Options granted 19,000 $ 13.54 Options exercised (3,587) $ 7.90 Options forfeited (43,175) $ 14.75 Options expired (27,541) $ 17.46 Options outstanding as of March 31, 2024 3,110,412 $ 12.73 $ 5,066 7.3 Options vested and exercisable as of March 31, 2024 1,834,453 $ 11.73 $ 4,470 6.5
Schedule of restricted stock unit activity	The following table summarizes activity of the Company’s RSUs for the three months ended March 31, 2024: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2023 729,213 $ 11.99 Awards granted 1,411,350 $ 13.34 Awards vested and released (306,063) $ 11.34 Awards forfeited (1,500) $ 13.54 Unvested awards as of March 31, 2024 1,833,000 $ 13.14
Schedule of performance share activity	The following table summarizes activity of the Company’s PSUs for the three months ended March 31, 2024: Number of Shares Weighted Average Grant Date Fair Value Unvested awards as of December 31, 2023 (1) 822,895 $ 11.97 Awards granted (2) 1,626,600 $ 14.51 Performance achievement adjustment (3) 200,614 $ 14.21 Awards vested and released (822,895) $ 11.97 Unvested awards as of March 31, 2024 1,827,214 $ 14.48 __________________________ (1) Reported at the certified performance achievement of 170% of the target shares granted. (2) Reported of 100% of the target shares granted. (3) Reported at the estimate performance achievement of 137% for the first tranche of the target shares granted in 2024.

Earnings per share (Tables)

Earnings per share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted EPS of common stock as follows: Three Months Ended 2024 2023 (in thousands, except per share data) Numerator for basic and diluted loss per share Net loss (3,948) (7,970) Denominator for basic and diluted loss per share Weighted-average shares outstanding – basic and diluted 76,151 74,459 Net loss per share Basic $ (0.05) $ (0.11) Diluted $ (0.05) $ (0.11)
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following table represents the number of share equivalents outstanding during the period that were excluded from the calculation of diluted net loss per share attributable to common stockholders because including them would have had an anti-dilutive effect. Three Months Ended 2024 2023 (in thousands) Stock options to purchase common stock 4,616 4,697 Restricted stock units 1,962 2,221 Performance stock units 2,279 1,102 Total 8,857 8,020

Segment and geographic inform_2

Segment and geographic information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of revenues by customer location	The following table presents revenues by customer location for the three months ended March 31, 2024 and 2023. The Company attributes customers to respective countries based upon location of the customer served. It differs from the prior period definition that was based upon location of the customer billed. Refer to Note 1 for more details on reclassifications. Three Months Ended 2024 2023 (in thousands) United States $ 63,509 $ 59,761 United Kingdom 5,509 8,995 Netherlands 2,500 3,473 Other 8,299 7,851 Total Revenues $ 79,817 $ 80,080
Schedule of long-lived assets, net of accumulated depreciation and amortization	Long-lived assets include property and equipment, net of accumulated depreciation and amortization. Physical locations and values of the Company’s long-lived assets are summarized below: As of March 31, December 31, ( in thousands) Serbia $ 2,575 $ 2,457 United States 2,498 2,174 Ukraine 2,496 2,437 Poland 1,875 1,522 Other 3,108 2,768 Total $ 12,552 $ 11,358

Nature of operations and summ_4

Nature of operations and summary of significant accounting policies - Allowance (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Allowance for doubtful accounts	$ 1,389	$ 1,363

Nature of operations and summ_5

Nature of operations and summary of significant accounting policies - Stock-based compensation (Details)	3 Months Ended
	Mar. 31, 2024
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period	4 years
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period	3 years

Nature of operations and summ_6

Nature of operations and summary of significant accounting policies - Prior period reclassifications (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Reclassification [Line Items]
Revenues	$ 79,817	$ 80,080
As reported
Reclassification [Line Items]
Revenues		80,080
North America
Reclassification [Line Items]
Revenues	63,740	60,137
North America | As reported
Reclassification [Line Items]
Revenues		63,949
Europe
Reclassification [Line Items]
Revenues	13,402	15,908
Europe | As reported
Reclassification [Line Items]
Revenues		15,894
Other
Reclassification [Line Items]
Revenues	$ 2,675	4,035
Other | As reported
Reclassification [Line Items]
Revenues		$ 237

Acquisitions - Narrative (Detai

Acquisitions - Narrative (Details) $ in Millions			3 Months Ended
	Apr. 18, 2023 USD ($)	Dec. 23, 2022 USD ($) employee	Dec. 31, 2023 USD ($)
NextSphere
Business Acquisition [Line Items]
Percentage of voting interests acquired	100%
Consideration transferred	$ 25.2
Payments to acquire business	24.3
Contingent consideration	0.9
Maximum contingent consideration	$ 2
Estimated future operating results period	12 months
Original purchase price adjustment			$ (0.3)
Adjustment to deferred taxes			(0.2)
Adjustment to goodwill			(0.1)
Mutual Mobile
Business Acquisition [Line Items]
Percentage of voting interests acquired		100%
Number of employees acquired | employee		180
Consideration transferred		$ 16.1
Payments to acquire business		12.8
Contingent consideration		3.3
Maximum contingent consideration		$ 5
Estimated future operating results period		12 months
Original purchase price adjustment			(0.5)
Adjustment to deferred taxes			0.2
Adjustment to goodwill			$ (0.7)

Acquisitions - Assets acquired

Acquisitions - Assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Apr. 18, 2023	Dec. 23, 2022
Business Acquisition [Line Items]
Goodwill	$ 53,868	$ 53,868
NextSphere
Business Acquisition [Line Items]
Current assets			$ 9,708
Property, plant and equipment			192
Intangible assets	9,906		9,906
Goodwill			9,031
Other noncurrent assets			511
Total assets acquired			29,348
Accounts payable, accrued expenses and other liabilities			(1,990)
Deferred taxes			(2,427)
Total liabilities assumed			(4,417)
Purchase price allocation			24,931
Cash and cash equivalents			$ 6,400
Mutual Mobile
Business Acquisition [Line Items]
Current assets				$ 4,982
Property, plant and equipment				132
Intangible assets	$ 3,749			3,749
Goodwill				8,879
Other noncurrent assets				102
Total assets acquired				17,844
Accounts payable, accrued expenses and other liabilities				(1,576)
Deferred taxes				(686)
Total liabilities assumed				(2,262)
Purchase price allocation				15,582
Cash and cash equivalents				$ 3,500

Acquisitions - Intangible asset

Acquisitions - Intangible assets acquired (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Apr. 18, 2023	Dec. 23, 2022
Acquired software
Business Acquisition [Line Items]
Useful Life	2 years 6 months
Non-compete agreements
Business Acquisition [Line Items]
Useful Life	2 years
NextSphere
Business Acquisition [Line Items]
Fair Value	$ 9,906	$ 9,906
NextSphere | Customer relationships
Business Acquisition [Line Items]
Fair Value	$ 8,415
Useful Life	10 years
NextSphere | Acquired software
Business Acquisition [Line Items]
Fair Value	$ 995
Useful Life	2 years 6 months
NextSphere | Trade name
Business Acquisition [Line Items]
Fair Value	$ 496
Useful Life	2 years
NextSphere | Non-compete agreements
Business Acquisition [Line Items]
Fair Value	$ 0
Mutual Mobile
Business Acquisition [Line Items]
Fair Value	3,749		$ 3,749
Mutual Mobile | Customer relationships
Business Acquisition [Line Items]
Fair Value	$ 3,453
Useful Life	8 years
Mutual Mobile | Acquired software
Business Acquisition [Line Items]
Fair Value	$ 0
Mutual Mobile | Trade name
Business Acquisition [Line Items]
Fair Value	$ 152
Useful Life	4 years
Mutual Mobile | Non-compete agreements
Business Acquisition [Line Items]
Fair Value	$ 144
Useful Life	2 years

Fair value - Schedule of Fair V

Fair value - Schedule of Fair Value Information for Financial Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Money market funds | Reported Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 206,363	$ 204,388
Money market funds | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	206,363	204,388
Time deposits | Reported Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	739
Time deposits | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	739
Equity securities | Reported Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	731	421
Non-marketable equity securities	1,250	1,250
Equity securities | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	731	421
Level 1 | Money market funds | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	206,363	204,388
Level 1 | Time deposits | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Level 1 | Equity securities | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	731	421
Level 2 | Money market funds | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 2 | Time deposits | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	739
Level 2 | Equity securities | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	0	0
Level 3 | Money market funds | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level 3 | Time deposits | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0
Level 3 | Equity securities | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable equity securities	$ 0	$ 0

Property and Equipment, net (De

Property and Equipment, net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 12,552	$ 11,358
Property, Plant and Equipment, Excluding Capitalized Software Costs
Property, Plant and Equipment [Line Items]
Property and equipment, gross	18,937	18,718
Less: Accumulated depreciation and amortization	(12,908)	(12,441)
Property and equipment, net	6,029	6,277
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 14,224	13,837
Computers and equipment | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Computers and equipment | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	6 years
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,558	1,732
Furniture and fixtures | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Furniture and fixtures | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	10 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,338	1,343
Leasehold improvements | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Leasehold improvements | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	8 years
Software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,236	1,236
Software | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	3 years
Software | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	5 years
Machinery and automobiles
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 581	570
Machinery and automobiles | Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	4 years
Machinery and automobiles | Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life	6 years
Capitalized software development costs
Property, Plant and Equipment [Line Items]
Estimated Useful Life	2 years
Property and equipment, gross	$ 11,472	9,050
Less: Accumulated depreciation and amortization	(4,949)	(3,969)
Property and equipment, net	$ 6,523	$ 5,081

Intangible assets, net - Summar

Intangible assets, net - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 34,742	$ 34,742
Less: Accumulated amortization	(9,211)	(8,196)
Intangible assets, net	25,531	26,546
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 27,839	27,839
Customer relationships | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	8 years
Customer relationships | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	12 years
Tradenames
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 5,324	5,324
Tradenames | Minimum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	2 years
Tradenames | Maximum
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	10 years
Acquired software
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	2 years 6 months
Intangible assets, gross	$ 995	995
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life	2 years
Intangible assets, gross	$ 584	$ 584

Intangible assets, net - Future

Intangible assets, net - Future Amortization Expenses (Detail) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
2024 (excluding three months ended March 31, 2024)	$ 3,035
2025	3,625
2026	3,168
2027	3,130
2028	3,107
Thereafter	9,466
Intangible assets, net	$ 25,531	$ 26,546

Accrued expenses and other cu_3

Accrued expenses and other current liabilities - Components of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Accrued expenses	$ 3,564	$ 2,943
Customer deposits	718	756
Deferred revenue	610	577
Value added tax payable	444	993
Other liabilities	549	1,007
Total accrued expenses and other current liabilities	$ 5,885	$ 6,276

Accrued expenses and other cu_4

Accrued expenses and other current liabilities - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Related Party
Related Party Transaction [Line Items]
Payable	$ 0	$ 0.6

Debt - Narrative (Details)

Debt - Narrative (Details) - USD ($) $ in Millions	Mar. 15, 2022	Mar. 31, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Debt outstanding		$ 0	$ 0
Base Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1%
Base Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.50%
SOFR Or Adjusted EURIBOR Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2%
SOFR Or Adjusted EURIBOR Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Daily Simple SOFR, SONIA, Or SARON Rate | Minimum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2%
Daily Simple SOFR, SONIA, Or SARON Rate | Maximum
Line of Credit Facility [Line Items]
Basis spread on variable rate	2.50%
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 30
Contingent maximum borrowing capacity	50
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 10

Revenues - Narrative (Details)

Revenues - Narrative (Details) - segment	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Number of reportable segments	1	1

Revenues - Disaggregation of Re

Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Total Revenues	$ 79,817	$ 80,080
Time-and-material
Disaggregation of Revenue [Line Items]
Total Revenues	74,820	70,526
Fixed-fee
Disaggregation of Revenue [Line Items]
Total Revenues	4,412	9,554
Other revenues
Disaggregation of Revenue [Line Items]
Total Revenues	585	0
Retail
Disaggregation of Revenue [Line Items]
Total Revenues	24,629	25,396
Technology, Media and Telecom
Disaggregation of Revenue [Line Items]
Total Revenues	24,033	26,811
Finance
Disaggregation of Revenue [Line Items]
Total Revenues	10,243	6,515
CPG/Manufacturing(1)
Disaggregation of Revenue [Line Items]
Total Revenues	9,559	12,646
Healthcare and Pharma
Disaggregation of Revenue [Line Items]
Total Revenues	3,009	3,152
Other
Disaggregation of Revenue [Line Items]
Total Revenues	8,344	5,560
North America
Disaggregation of Revenue [Line Items]
Total Revenues	63,740	60,137
Europe
Disaggregation of Revenue [Line Items]
Total Revenues	13,402	15,908
Other
Disaggregation of Revenue [Line Items]
Total Revenues	$ 2,675	$ 4,035

Revenues - Contract Balances (D

Revenues - Contract Balances (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract assets	$ 0		$ 0
Contract liabilities	0.6		$ 0.6
Revenues recognized	$ 0.3	$ 0.4

Revenues - Remaining Performanc

Revenues - Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2024 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations	$ 4.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining performance obligation expected to be recognized	50.30%
Expected timing of satisfaction of remaining performance obligation	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Percentage of remaining performance obligation expected to be recognized	49.70%
Expected timing of satisfaction of remaining performance obligation	1 year

Revenues - Concentration Risk (

Revenues - Concentration Risk (Details) - Customer Concentration Risk - customer	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Sales | Customer 1
Disaggregation of Revenue [Line Items]
Concentration risk percentage	16.70%	13.90%
Accounts receivable
Disaggregation of Revenue [Line Items]
Number of major customers	1		1
Unbilled receivable
Disaggregation of Revenue [Line Items]
Number of major customers	3		2

Revenues - Related Parties (Det

Revenues - Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Related Party Transaction [Line Items]
Revenues	$ 79,817	$ 80,080
Accounts receivable	53,039		$ 49,824
Related Party
Related Party Transaction [Line Items]
Revenues	2,800	$ 1,800
Accounts receivable	$ 1,900		$ 900

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	Mar. 31, 2024 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease commitments	$ 0.4
Lease contracts not yet commenced, term	6 years 2 months 12 days
Minimum
Lessee, Lease, Description [Line Items]
Operating lease, remaining term	1 month 6 days
Maximum
Lessee, Lease, Description [Line Items]
Operating lease, remaining term	6 years 2 months 12 days

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Operating lease cost	$ 1,193	$ 781
Variable lease cost	76	194
Short-term lease cost	54	98
Total lease cost	$ 1,323	$ 1,073

Leases - Schedule of Supplement

Leases - Schedule of Supplemental Lease Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Leases [Abstract]
Lease liability payments	$ 1,168	$ 727
Lease assets obtained in exchange for liabilities	853	1,022
Non-cash net change in lease assets due to lease modifications	40	0
Non-cash net change in lease liability due to lease modifications	$ (40)	$ 0
Weighted average remaining lease term, in years	3 years 2 months 12 days	3 years 4 months 24 days
Weighted average discount rate	7.20%	7%

Leases - Operating Lease Maturi

Leases - Operating Lease Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Leases [Abstract]
2024 (excluding three months ended March 31, 2024)	$ 3,461
2025	3,700
2026	2,331
2027	2,015
2028	285
Thereafter	268
Total lease payments	12,060
Less: imputed interest	(1,403)
Total	$ 10,657

Income taxes (Details)

Income taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 931	$ 3,660
Effective tax rate, percentage	(30.90%)	(84.90%)

Stock-based compensation - Sche

Stock-based compensation - Schedule of employee stock-based compensation recognized (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 11,339	$ 13,257
Cost of revenue
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	482	460
Engineering, research, and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,288	1,653
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	1,677	1,055
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total stock-based compensation	$ 7,892	$ 10,089

Stock-based compensation - Narr

Stock-based compensation - Narrative (Details) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) shares
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, excluding options	$ 20.3
Period for recognition	2 years 4 months 24 days
Performance stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense, excluding options	$ 22.7
Period for recognition	1 year 10 months 24 days
2020 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining shares available for grant (in shares) | shares	1.9
Unrecognized compensation expense, options	$ 7.7
2020 Plan | Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Period for recognition	2 years 6 months

Stock-based compensation - Sc_2

Stock-based compensation - Schedule of option activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Weighted Average Exercise Price
Options expired (in dollars per share)	$ 17.46
Performance stock units
Number of Options
Options exercised (in shares)	(27,541)
2018 Plan
Number of Options
Options outstanding, beginning balance (in shares)	1,486,428
Options exercised (in shares)	(65,533)
Options outstanding, ending balance (in shares)	1,420,895
Options vested and exercisable (in shares)	1,420,895
Weighted Average Exercise Price
Options outstanding, beginning balance (in dollars per share)	$ 3.54
Options exercised (in dollars per share)	3.54
Option outstanding, ending balance (in dollars per share)	3.54
Options vested and exercisable (in dollars per share)	$ 3.54
Aggregate Intrinsic Value and Weighted Average Contractual Term (in years)
Options outstanding, aggregate intrinsic value	$ 12,433	$ 14,552
Options vested and exercisable, aggregate intrinsic value	$ 12,433
Options outstanding, weighted average contractual term (in years)	4 years 9 months 18 days
Options vested and exercisable, weighted average contractual term (in years)	4 years 9 months 18 days
2020 Plan
Number of Options
Options outstanding, beginning balance (in shares)	3,165,715
Options granted (in shares)	19,000
Options exercised (in shares)	(3,587)
Options forfeited (in shares)	(43,175)
Options outstanding, ending balance (in shares)	3,110,412
Options vested and exercisable (in shares)	1,834,453
Weighted Average Exercise Price
Options outstanding, beginning balance (in dollars per share)	$ 12.79
Options granted (in dollars per share)	13.54
Options exercised (in dollars per share)	7.90
Options forfeited (in dollars per share)	14.75
Option outstanding, ending balance (in dollars per share)	12.73
Options vested and exercisable (in dollars per share)	$ 11.73
Aggregate Intrinsic Value and Weighted Average Contractual Term (in years)
Options outstanding, aggregate intrinsic value	$ 5,066	$ 7,197
Options vested and exercisable, aggregate intrinsic value	$ 4,470
Options outstanding, weighted average contractual term (in years)	7 years 3 months 18 days
Options vested and exercisable, weighted average contractual term (in years)	6 years 6 months

Stock-based compensation - Sc_3

Stock-based compensation - Schedule of restricted stock unit and performance stock unit activity (Details) - $ / shares	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Weighted Average Grant Date Fair Value
Performance factor percentage		170%
Awards granted, period performance factor percentage	100%
Year 2024
Weighted Average Grant Date Fair Value
Performance achievement adjustment, period performance factor	137%
Restricted stock units
Number of Shares
Outstanding, beginning balance (in shares)	729,213
Granted (in shares)	1,411,350
Vested and released (in shares)	(306,063)
Forfeited (in shares)	(1,500)
Outstanding, ending balance (in shares)	1,833,000
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share)	$ 11.99
Granted (in dollars per share)	13.34
Vested and released (in dollars per share)	11.34
Forfeited (in dollars per share)	13.54
Outstanding, ending balance (in dollars per share)	$ 13.14
Performance stock units
Number of Shares
Outstanding, beginning balance (in shares)	822,895
Granted (in shares)	1,626,600
Performance achievement adjustment (in shares)	200,614
Vested and released (in shares)	(822,895)
Outstanding, ending balance (in shares)	1,827,214
Weighted Average Grant Date Fair Value
Outstanding, beginning balance (in dollars per share)	$ 11.97
Granted (in dollars per share)	14.51
Performance achievement adjustment (in dollars per share)	14.21
Vested and released (in dollars per share)	11.97
Outstanding, ending balance (in dollars per share)	$ 14.48

Earnings per share - Schedule o

Earnings per share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator for basic and diluted loss per share
Net loss	$ (3,948)	$ (7,970)
Weighted average number of shares outstanding - basic (in shares)	76,151	74,459
Weighted average number of shares outstanding - diluted (in shares)	76,151	74,459
Net loss per share
Basic (in dollars per share)	$ (0.05)	$ (0.11)
Diluted (in dollars per share)	$ (0.05)	$ (0.11)

Earnings per share - Schedule_2

Earnings per share - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	8,857	8,020
Stock options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	4,616	4,697
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	1,962	2,221
Performance stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,279	1,102

Segment and geographic inform_3

Segment and geographic information - Narrative (Details) - segment	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting [Abstract]
Number of Operating Segments	1	1
Number of Reportable Segments	1	1

Segment and geographic inform_4

Segment and geographic information - Schedule of revenues by customer location (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 79,817	$ 80,080
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	63,509	59,761
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	5,509	8,995
Netherlands
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,500	3,473
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 8,299	$ 7,851

Segment and geographic inform_5

Segment and geographic information - Schedule of long-lived assets by physical location (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 12,552	$ 11,358
Serbia
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,575	2,457
Ukraine
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,496	2,437
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	2,498	2,174
Poland
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	1,875	1,522
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 3,108	$ 2,768