Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-40812 | ||
Entity Registrant Name | THOUGHTWORKS HOLDING, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 82-2668392 | ||
Entity Address, Address Line One | 200 East Randolph Street, 25th Floor | ||
Entity Address, City or Town | Chicago | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60601 | ||
City Area Code | 312 | ||
Local Phone Number | 373-1000 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | TWKS | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 878.6 | ||
Entity Common Stock, Shares Outstanding | 322,732,693 | ||
Documents Incorporated by Reference | The information required by Items 10, 11, 12, 13 and 14 will be filed (and is hereby incorporated) by an amendment hereto or pursuant to a definitive proxy statement pursuant to Regulation 14A that will contain such information. | ||
Entity Central Index Key | 0001866550 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 100,305 | $ 194,294 |
Trade receivables, net of allowance of $9,550 and $9,531, respectively | 167,942 | 201,695 |
Unbilled receivables | 115,150 | 122,499 |
Prepaid expenses | 19,692 | 19,353 |
Other current assets | 25,269 | 18,849 |
Total current assets | 428,358 | 556,690 |
Property and equipment, net | 26,046 | 38,798 |
Right-of-use assets | 41,771 | 43,123 |
Intangibles and other assets: | ||
Goodwill | 424,565 | 405,017 |
Trademark | 273,000 | 273,000 |
Customer relationships, net | 114,186 | 124,047 |
Other non-current assets | 19,310 | 21,175 |
Total assets | 1,327,236 | 1,461,850 |
Current liabilities: | ||
Accounts payable | 2,767 | 5,248 |
Long-term debt, current | 7,150 | 7,150 |
Income taxes payable | 5,106 | 22,781 |
Accrued compensation | 88,712 | 85,477 |
Deferred revenue | 18,090 | 5,167 |
Accrued expenses and other current liabilities | 22,154 | 37,753 |
Lease liabilities, current | 15,301 | 15,994 |
Total current liabilities | 159,280 | 179,570 |
Lease liabilities, non-current | 29,791 | 29,885 |
Long-term debt, less current portion | 286,035 | 391,856 |
Deferred tax liabilities | 54,907 | 62,555 |
Other long-term liabilities | 24,093 | 19,762 |
Total liabilities | 554,106 | 683,628 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Convertible preferred stock, $0.001 par value; 100,000,000 shares authorized, zero issued and outstanding at December 31, 2023 and December 31, 2022, respectively | 0 | 0 |
Common stock, $0.001 par value; 1,000,000,000 shares authorized, 372,876,082 and 366,306,970 issued, 322,407,385 and 315,681,987 outstanding at December 31, 2023 and December 31, 2022, respectively | 373 | 366 |
Treasury stock, 50,468,697 and 50,624,983 shares at December 31, 2023 and December 31, 2022, respectively | (622,988) | (624,934) |
Additional paid-in capital | 1,627,491 | 1,565,514 |
Accumulated other comprehensive loss | (38,166) | (39,210) |
Retained deficit | (193,580) | (123,514) |
Total stockholders' equity | 773,130 | 778,222 |
Total liabilities and stockholders' equity | $ 1,327,236 | $ 1,461,850 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts | $ 9,550 | $ 9,531 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 372,876,082 | 366,306,970 |
Common stock, shares outstanding (in shares) | 322,407,385 | 315,681,987 |
Treasury stock (in shares) | 50,468,697 | 50,624,983 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Revenues | $ 1,126,816 | $ 1,296,238 | $ 1,069,945 |
Operating expenses: | |||
Cost of revenues | 772,800 | 950,305 | 669,681 |
Selling, general and administrative expenses | 331,830 | 372,761 | 333,904 |
Depreciation and amortization | 23,554 | 20,484 | 17,599 |
Restructuring | 18,944 | 0 | 0 |
Total operating expenses | 1,147,128 | 1,343,550 | 1,021,184 |
(Loss) income from operations | (20,312) | (47,312) | 48,761 |
Other (expense) income: | |||
Interest expense | (26,238) | (22,461) | (25,456) |
Net realized and unrealized foreign currency gain (loss) | 3,875 | (5,405) | (5,469) |
Other (expense) income, net | (455) | 610 | (1,671) |
Total other expense | (22,818) | (27,256) | (32,596) |
(Loss) income before income taxes | (43,130) | (74,568) | 16,165 |
Income tax expense | 25,531 | 30,825 | 16,740 |
Net loss | (68,661) | (105,393) | (575) |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustments | 1,044 | (28,366) | (9,270) |
Comprehensive loss | $ (67,617) | $ (133,759) | $ (9,845) |
Net loss per common share: | |||
Basic loss per common share (in dollars per share) | $ (0.22) | $ (0.34) | $ (0.24) |
Diluted loss per common share (in dollars per share) | $ (0.22) | $ (0.34) | $ (0.24) |
Weighted average shares outstanding: | |||
Basic (in shares) | 317,718,424 | 310,911,526 | 254,271,997 |
Diluted (in shares) | 317,718,424 | 310,911,526 | 254,271,997 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Cumulative effect related to adoption of ASU 2016-13 | IPO | Common Stock | Common Stock IPO | Treasury | Additional Paid-In Capital | Additional Paid-In Capital IPO | Accumulated Other Comprehensive Loss | Retained Earnings (Deficit) | Retained Earnings (Deficit) Cumulative effect related to adoption of ASU 2016-13 |
Beginning balance (in shares) at Dec. 31, 2020 | 23,493,546 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 322,800 | ||||||||||
Redeemable, Convertible Preferred Stock | |||||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs (in shares) | 35,996,412 | ||||||||||
Issuance of redeemable convertible preferred stock, net of issuance costs | $ 503,222 | ||||||||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | (59,489,958) | ||||||||||
Conversion of redeemable convertible preferred stock to common stock | $ (826,022) | ||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 0 | ||||||||||
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2016-13 [Member] | ||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 278,322,716 | ||||||||||
Beginning balance at Dec. 31, 2020 | $ 484,770 | $ 279 | $ (1,608) | $ 379,335 | $ (1,574) | $ 108,338 | |||||
Treasury stock, beginning balance (in shares) at Dec. 31, 2020 | 572,711 | ||||||||||
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (575) | (575) | |||||||||
Other comprehensive (loss) income, net of tax | (9,270) | (9,270) | |||||||||
Issuance of common stock (in shares) | 133,313 | 16,429,964 | |||||||||
Issuance of common stock | 1,873 | $ 314,716 | $ 16 | 1,873 | $ 314,700 | ||||||
Conversion of redeemable convertible preferred stock to common stock (in shares) | 59,489,958 | ||||||||||
Conversion of redeemable convertible preferred stock to common stock | 826,022 | $ 60 | 825,962 | ||||||||
Issuance of common stock on exercise of options , net of withholding taxes (in shares) | 1,169,090 | ||||||||||
Issuance of common stock on exercise of options, net of withholding taxes | (851) | $ 1 | (852) | ||||||||
Dividends | (325,012) | (279,191) | (45,821) | ||||||||
Tender Offer (in shares) | (50,412,860) | 50,412,860 | |||||||||
Tender Offer | (717,429) | $ (627,816) | (10,391) | (79,222) | |||||||
Stock-based compensation expense | 127,713 | 127,713 | |||||||||
Ending balance (in shares) at Dec. 31, 2021 | 305,132,181 | ||||||||||
Ending balance at Dec. 31, 2021 | $ 701,957 | $ (841) | $ 356 | $ (629,424) | 1,359,149 | (10,844) | (17,280) | $ (841) | |||
Treasury stock, ending balance (in shares) at Dec. 31, 2021 | 50,985,571 | ||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||||||||
Ending balance at Dec. 31, 2022 | $ 0 | ||||||||||
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (105,393) | (105,393) | |||||||||
Other comprehensive (loss) income, net of tax | (28,366) | (28,366) | |||||||||
Issuance of common stock for equity incentive awards, net of withholding taxes (in shares) | 10,189,218 | ||||||||||
Issuance of common stock for equity incentive awards, net of withholding taxes | (40,076) | $ 10 | (40,086) | ||||||||
Reissuance of treasury shares for equity incentive awards (in shares) | 360,588 | (360,588) | |||||||||
Reissuance of treasury shares for equity incentive awards | 436 | $ 4,490 | (4,054) | ||||||||
Stock-based compensation expense | 250,505 | 250,505 | |||||||||
Ending balance (in shares) at Dec. 31, 2022 | 315,681,987 | ||||||||||
Ending balance at Dec. 31, 2022 | $ 778,222 | $ 366 | $ (624,934) | 1,565,514 | (39,210) | (123,514) | |||||
Treasury stock, ending balance (in shares) at Dec. 31, 2022 | 50,624,983 | 50,624,983 | |||||||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | ||||||||||
Ending balance at Dec. 31, 2023 | $ 0 | ||||||||||
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||||||||||
Net income (loss) | (68,661) | (68,661) | |||||||||
Other comprehensive (loss) income, net of tax | $ 1,044 | 1,044 | |||||||||
Issuance of common stock on exercise of options , net of withholding taxes (in shares) | 2,432,182 | ||||||||||
Issuance of common stock for equity incentive awards, net of withholding taxes (in shares) | 6,569,112 | ||||||||||
Issuance of common stock for equity incentive awards, net of withholding taxes | $ (1,096) | $ 7 | (1,103) | ||||||||
Reissuance of treasury shares for equity incentive awards (in shares) | 156,286 | (156,286) | |||||||||
Reissuance of treasury shares for equity incentive awards | (1,405) | $ 1,946 | (1,946) | (1,405) | |||||||
Stock-based compensation expense | 65,026 | 65,026 | |||||||||
Ending balance (in shares) at Dec. 31, 2023 | 322,407,385 | ||||||||||
Ending balance at Dec. 31, 2023 | $ 773,130 | $ 373 | $ (622,988) | $ 1,627,491 | $ (38,166) | $ (193,580) | |||||
Treasury stock, ending balance (in shares) at Dec. 31, 2023 | 50,468,697 | 50,468,697 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Redeemable, convertible preferred stock, issuance costs | $ 11.8 |
IPO | |
Stock issuance costs | $ 30.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (68,661) | $ (105,393) | $ (575) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization expense | 36,450 | 34,446 | 29,528 |
Bad debt expense (recovery) | 4,606 | 2,002 | (601) |
Deferred income tax benefit | (8,351) | (19,425) | (22,369) |
Stock-based compensation expense | 65,026 | 250,505 | 127,713 |
Unrealized foreign currency exchange (gain)/loss | (2,271) | 10,106 | 5,028 |
Non-cash lease expense on right-of-use assets | 18,407 | 18,597 | 0 |
Other operating activities, net | 3,715 | 3,300 | 3,642 |
Changes in operating assets and liabilities: | |||
Trade receivables | 32,661 | (61,877) | (32,139) |
Unbilled receivables | 7,582 | (20,711) | (16,733) |
Prepaid expenses | (265) | (3,567) | (6,542) |
Other assets | (11,841) | 2,657 | (31,111) |
Lease liabilities | (18,269) | (16,721) | 0 |
Accounts payable | (2,597) | 144 | 309 |
Accrued expenses and other liabilities | (7,128) | (4,674) | 62,154 |
Net cash provided by operating activities | 49,064 | 89,389 | 118,304 |
Cash flows from investing activities: | |||
Purchase of property and equipment | (8,953) | (24,505) | (26,068) |
Proceeds from disposal of fixed assets | 351 | 571 | 518 |
Acquisitions, net of cash acquired | (15,989) | (70,011) | (44,759) |
Net cash used in investing activities | (24,591) | (93,945) | (70,309) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of issuance costs and underwriting discounts | 0 | 0 | 314,716 |
Payments of obligations of long-term debt | (107,150) | (107,150) | (336,709) |
Payments of debt issuance costs | (99) | (3,635) | (7,098) |
Proceeds from borrowings on long-term debt | 0 | 0 | 401,285 |
Proceeds from issuance of common stock on exercise of options, net of employee tax withholding | 6,564 | 6,766 | (851) |
Shares and options purchased under tender offer | 0 | 0 | (701,960) |
Proceeds from issuance of common stock | 0 | 0 | 1,873 |
Dividends paid | 0 | 0 | (315,003) |
Withholding taxes paid on tender offer | 0 | (15,469) | 0 |
Withholding taxes paid on dividends previously declared | 0 | (10,009) | 0 |
Withholding taxes paid related to net share settlement of equity awards | (5,621) | (45,643) | 0 |
Payment of contingent consideration | (13,996) | 0 | 0 |
Other financing activities, net | 85 | 15 | (105) |
Net cash used in financing activities | (120,217) | (175,125) | (140,630) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,840 | (19,697) | (4,622) |
Net decrease in cash, cash equivalents and restricted cash | (93,904) | (199,378) | (97,257) |
Cash, cash equivalents and restricted cash at beginning of the period | 195,564 | 394,942 | 492,199 |
Cash, cash equivalents and restricted cash at end of the period | 101,660 | 195,564 | 394,942 |
Supplemental disclosure of cash flow information: | |||
Interest paid | 24,824 | 20,984 | 23,611 |
Income taxes paid | 50,250 | 30,283 | 33,344 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Withholding taxes payable included within accrued expenses | 0 | 0 | 25,956 |
Withholding taxes payable included within accrued compensation | 3,444 | 1,020 | 0 |
Option costs receivable included within other current assets | 0 | 257 | 0 |
Conversion of convertible preferred stock to common stock | 0 | 0 | 826,022 |
Net settlement on exercise of shares | 0 | 0 | 3,611 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 100,305 | 194,294 | 368,209 |
Restricted cash included in other current assets | 0 | 0 | 25,478 |
Restricted cash included in other non-current assets | 1,355 | 1,270 | 1,255 |
Total cash, cash equivalents and restricted cash | 101,660 | 195,564 | 394,942 |
Series A, Redeemable Convertible Preferred Stock | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Redeemable Convertible Preferred Stock, net of issuance costs | 0 | 0 | 380,994 |
Series B, Redeemable Convertible Preferred Stock | |||
Cash flows from financing activities: | |||
Proceeds from issuance of Redeemable Convertible Preferred Stock, net of issuance costs | $ 0 | $ 0 | $ 122,228 |
Business and Summary of Signifi
Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business and Summary of Significant Accounting Policies | Business and Summary of Significant Accounting Policies Thoughtworks Holding, Inc. (together with its subsidiaries, the “Company”) develops, implements, and services complex enterprise application software and provides business technology consulting. The Company conducts business in Australia, Brazil, Canada, Chile, China, Ecuador, Finland, Germany, Hong Kong, India, Italy, the Netherlands, Romania, Singapore, Spain, Switzerland, Thailand, the United Kingdom, the United States and Vietnam. Thoughtworks Holding, Inc. is the ultimate parent holding company of Thoughtworks, Inc. among other subsidiaries. Basis of Presentation and Consolidation The accompanying consolidated financial statements include the accounts of Thoughtworks Holding, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the prior period consolidated financial statements and notes have been reclassified to conform to the 2023 presentation. These reclassifications had no effect on results of operations previously reported. Preparation of Financial Statements and Use of Estimates The preparation of these consolidated financial statements is in conformity with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the SEC. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to allowance for credit losses, valuation and impairment of goodwill and long-lived assets, income taxes, accrued bonus, contingencies, stock-based compensation and litigation costs. The Company bases its estimates on current expectations and historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results can differ from those estimates, and such differences may be material to the consolidated financial statements in the future. In management’s opinion, all adjustments considered necessary for a fair presentation of the accompanying consolidated financial statements have been included, and all adjustments are of a normal and recurring nature. Segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and assess performance. While the Company has offerings in multiple modern digital businesses and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings are delivered and supported on a global basis and are deployed in a nearly identical way. The Company’s CODM evaluates the Company’s financial information, allocates resources and assesses the performance of these resources on a consolidated basis. Long-Lived Assets The North America geographic region encompasses the Company’s country of domicile (United States) and Canada, of which long-lived assets include property and equipment, net of depreciation, and lease right-of-use ("ROU") assets which are principally held within the United States. Canadian long-lived assets were determined to be immaterial given the amount was less than 10% of the Company's long-lived assets as of December 31, 2023 and 2022. Th e Company holds material long-lived assets in the foreign geographic locations noted in the table below. The following table presents long-lived assets by location (in thousands): As of December 31, 2023 2022 United States $ 14,582 21.5 % $ 18,205 22.2 % Germany 13,052 19.2 % 13,606 16.6 % India 10,793 15.9 % 14,457 17.6 % China 10,616 15.7 % 12,160 14.9 % All other (1) 18,774 27.7 % 23,493 28.7 % Total long-lived assets $ 67,817 100.0 % $ 81,921 100.0 % (1) All other foreign geographic locations hold long-lived assets of less than 10% of the Company's consolidated total. Revenue Recognition The Company recognizes revenues when control of services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Such control may be transferred over time or at a point in time, depending on satisfaction of obligations stipulated by the contract. The Company records sales and other taxes collected from customers and remitted to governmental authorities on a net basis. The Company generates revenue from a variety of professional service arrangements. Fees for these contracts may be in the form of time-and-materials and fixed price. The Company also reports gross reimbursable expenses incurred as both revenue and cost of revenues in the consolidated statements of loss and comprehensive loss. Revenue is measured based on consideration specified in a contract with a customer, which may consist of both fixed and variable components, and the consideration expected to be received is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. The standalone selling prices are generally determined based on the prices at which the Company separately sells the services. Contracts may include variable consideration, which usually takes the form of volume-based discounts, service level credits, price concessions, or incentives. To the extent that variable consideration is not constrained, the Company includes the expected amount within the total transaction price and updates its assumptions over the duration of the contract. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The amount of variable consideration is estimated utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. Time-and-Materials Revenues The Company generates the majority of its revenues under time-and-materials contracts, which are billed using hourly, daily, or monthly rates to determine the amounts to be charged directly to the customer. Revenue from time-and-materials contracts is based on the number of hours worked and at contractually agreed-upon hourly rates and is recognized as those services are rendered as control of the services passes to the customer over time. Fixed-Price Revenues Fixed-price contracts include application development arrangements, and with certain contracts, progress towards satisfaction of the performance obligation is measured using input methods as there is a direct correlation between hours incurred and the end deliverable to the customer. With other contracts, progress towards the satisfaction of the performance obligation is measured using input methods with a direct correlation to resources consumed and the services provided to the customer. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables, and deferred revenues at each reporting period. Revenues under these contracts are recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying performance obligations or based on resources utilized at contractually agreed-upon fixed rates. Principal vs Agent Consideration From time to time, the Company may enter into arrangements with third-party suppliers to sell services. In such cases, the Company evaluates whether it is the principal (i.e., reports revenues on a gross basis) or the agent (i.e., reports revenues on a net basis). In doing so, the Company first evaluates whether it has control of the service before it is transferred to the customer. If the Company controls the service before it is transferred to the customer, the Company is the principal; if not, the Company is the agent. Determining whether the Company controls the service before it is transferred to the customer may require judgment. Contract Balances A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts, where the right to consideration is conditional on the satisfaction of performance obligations that are measured based on hours incurred and the end deliverable to the customer. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. Professional services performed on or prior to the balance sheet date, but invoiced thereafter, are reflected in unbilled receivables. Contract liabilities, or deferred revenue, consist of advance payments from clients and billings in excess of revenues recognized. The Company classifies deferred revenue as current on the consolidated balance sheet and is recognized as revenue as the Company performs under the contract. These balances are generally short-term in nature and are recognized as revenue within one year. Costs to Obtain a Customer Contract The Company incurs certain incremental costs to obtain a contract that the Company expects to recover. The Company applies a practical expedient and recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company capitalizes incremental costs of obtaining contracts where the contract term is greater than one year. These costs primarily relate to commissions paid to the account executives and are included in SG&A expenses in the consolidated statements of (loss) income and comprehensive (loss) income for contracts one year or less and other current assets and other non-current assets on the consolidated balance sheets for contracts greater than one year. Costs capitalized are amortized on a straight-line basis over the period of benefit. Amortization of capitalized costs to obtain contracts is included in SG&A expenses in the consolidated statements of (loss) income and comprehensive (loss) income. The Company determined the period of benefit by taking into consideration standard contract terms, renewals and amendments, if applicable. The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. The following table is a summary of the Company’s costs to obtain contracts and related amortization where the amortization period of the assets is greater than one year (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 1,588 $ 2,039 $ — Costs to obtain contracts capitalized 905 811 2,318 Amortization of capitalized costs (1,685) (1,265) (277) Changes due to exchange rates 68 3 (2) Balance at end of period $ 876 $ 1,588 $ 2,039 Cost of Revenues Consists primarily of personnel and related costs directly associated with professional services, including salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs, and costs of contracted third-party vendors. Also included in cost of revenues is depreciation attributable to the portion of our property and equipment utilized in the delivery of services to our clients. Selling, General and Administrative Expenses Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, commissions, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities. Advertising costs consist of marketing, advertising through print and other media, professional event sponsorship, and public relations. These costs are expensed as incurred. Advertising costs totaled $5.0 million, $4.1 million and $2.3 million for the years ended December 31, 2023, 2022 and 2021, respectively, and are included in SG&A expenses in the consolidated statements of loss and comprehensive loss. Other (Expense) Income Other (expense) income consists of interest expense, impacts from foreign exchange transactions, gains (losses) on the sale of assets, gains related to the sale and settlement of trade receivables, change in fair value of contingent consideration and the write-off of deferred financing fees. Cash and Cash Equivalents Cash equivalents are short-term, highly liquid investments and deposits that are readily converted into cash, with maturities of three months or less . Restricted Cash Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Restricted cash is restricted as to withdrawal or use. The Company has restricted cash held on deposit at various financial institutions to secure bank guarantees of amounts related to government requirements and for collateral for a corporate credit card. Accounts Receivable and Allowance for Credit Losses Accounts receivable are uncollateralized customer obligations due under normal trade terms. Payment terms with customers are generally 30 to 90 days from the invoice date. Accounts receivable are recorded at the invoiced amount net of an allowance for credit loss. The Company analyzes its historical credit loss experience and considers current conditions and reasonable and supportable forecasts in developing the expected credit loss rates. Interest is not generally accrued on outstanding balances as the balances are considered short-term in nature. Activity related to the Company’s allowance for credit losses is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Allowance for credit losses, beginning balance $ (9,531) $ (8,916) $ (10,385) Impact of accounting standard adoption (1) — (841) — Current period provision (4,606) (2,002) (281) Write-offs charged against allowance 4,848 2,351 882 Recoveries of amounts previously written off (96) — — Changes due to exchange rates (165) (123) 868 Allowance for credit losses, ending balance $ (9,550) $ (9,531) $ (8,916) (1) The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in the first quarter of 2022. Business Combinations The Company accounts for business combinations using the acquisition method of accounting which requires it to allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based on the estimated fair values at the acquisition date. The fair value of the net assets acquired for the business is determined utilizing expectations and assumptions believed reasonable by management. The excess of the purchase consideration transferred over the fair values of assets acquired and liabilities assumed is recorded as goodwill. As additional information is obtained about the assets and liabilities of the acquisition during the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed with an offset to goodwill. After the measurement period, any adjustments are recorded in the consolidated statements of loss and comprehensive loss. Acquisition costs are expensed as incurred. Some business combinations may include a contingent consideration agreement. The Company determines the fair value of the contingent consideration liability using a Monte Carlo Simulation. The liability is remeasured to fair value at each reporting date with adjustments recorded within other income (expense), net in the consolidated statements of loss and comprehensive loss. Government Assistance The Company has historically received government subsidies in the form of cash in China and Singapore related to expenses such as rent, wages, training benefits and taxes. The subsidies are recorded against the related expense within SG&A expense or cost of revenues in the consolidated statements of loss and comprehensive loss. The Company recorded $1.3 million and $1.3 million to cost of revenues SG&A expense Property and Equipment, net Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Office furniture and equipment 7 years Computer equipment 3 years Software, including internal-use software 3 to 5 years Automobiles 7 years Leasehold improvements are amortized using the straight-line method over the shorter of their estimated useful lives or the terms of the related leases. The Company reviews long-lived assets, including property and equipment and finite-lived intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. The Company also reviews for impairment when conditions exist that indicate the carrying amount of the asset group may not be fully recoverable. In those circumstances, the Company performs an undiscounted operating cash flow analysis to determine if an impairment exists. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. Internal-Use Software In accordance with ASC 350-40, Internal-Use Software, certain costs incurred in the planning and evaluation stage of internal-use computer software are expensed as incurred. Certain costs incurred during the application development stage are capitalized and included in property and equipment. Capitalized costs are depreciated over the expected economic useful life of three Capitalized internal-use software asset depreciation expense for the years ended December 31, 2023, 2022 and 2021 was $5.8 million, $4.7 million and $2.2 million, respectively, and is included in depreciation and amortization in the consolidated statements of loss and comprehensive loss. As of December 31, 2023 and 2022, the net book value of internal-use software was $5.9 million and $6.5 million, respectively. Goodwill Goodwill represents the excess of cost over the fair value of the net assets acquired in a business combination. When the Company acquires a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statement of operations. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the reporting unit level. Based on the results of the annual impairment analysis, the Company determined no impairment existed for the year ended December 31, 2023 and 2022 as the fair value exceeded the carrying amount. Other Intangible Assets In accordance with ASC 350, Intangibles – Goodwill and Other, the Company amortizes its finite-lived intangible assets over their respective estimated useful lives. The Company reviews both indefinite-lived intangibles and finite-lived intangibles for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that they may be impaired. Impairment indicators could include significant under-performance relative to the historical or projected future operating results, significant changes in the manner of use of assets, significant negative industry or economic trends or significant changes in the Company’s market capitalization relative to net book value. Any changes in key assumptions used by the Company, including those set forth above, could result in an impairment charge and such a charge could have a material adverse effect on the Company’s consolidated statements of loss and comprehensive loss. The Company’s other intangible assets consist of an indefinite-lived trademark and finite-lived customer relationships. Customer relationships have an estimated useful life of four Based on the results of the annual impairment analysis, the Company determined no impairment existed for the years ended December 31, 2023 and 2022 as the fair value exceeded the carrying amount. Income Taxes The Company is subject to both the United States of America (U.S.) and foreign income taxes. A current tax asset or liability is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred income taxes are recorded to reflect the tax consequences on future years of the difference between the tax bases of assets and liabilities for income taxes and for financial reporting purposes using enacted tax rates in effect for the year in which differences are expected to reverse. The Company nets the deferred tax assets and deferred tax liabilities from temporary differences arising within the same tax jurisdiction and presents the net asset or liability as long term. The Company assesses the need to account for deferred taxes on unremitted earnings of its foreign subsidiaries on an individual country basis according to management’s assertions regarding repatriation or permanent investment of each country’s accumulated earnings. A valuation allowance is established when necessary to reduce deferred income tax assets to the amounts expected to be realized. The Company classifies interest and penalties associated with tax liabilities as income tax expense in the consolidated statements of loss and comprehensive loss. The Company provides for tax expense related to Global Intangible Low-Tax Income ("GILTI") in the year the tax is incurred. The Company’s provision for income taxes includes the impact of provisions established for uncertain income tax positions, as well as any related interest and penalties. These reserves are adjusted given changing facts and circumstances, such as the closing of a tax audit, statute of limitation lapse or the refinement of an estimate. To the extent the final outcome of an uncertain income tax position differs from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists solely of foreign currency translation adjustments. Foreign Currency Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at average exchange rates for the applicable period. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive loss. For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. Commitments and Contingencies Certain conditions may exist as of the date of the consolidated financial statements which may result in a loss to the Company but will only be resolved when one or more future events occur or fail to occur. Such liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources, are recorded when the Company assesses that it is probable that a future liability has been incurred and the amount can be reasonably estimated. Recoveries of costs from third parties, which the Company assesses as being probable of realization, are recorded to the extent of related contingent liabilities accrued. Legal costs incurred in connection with matters relating to contingencies are expensed in the period incurred. The Company records gain contingencies when realized. Deferred Financing Fees Deferred financing fees represent third-party debt issuance costs associated with the related debt facility. Deferred financing fees associated with the Company’s debt agreements are treated as a discount on the outstanding debt balance and amortized over the term of the respective debt facility, using the effective interest rate method and reported as a component of interest expense. Debt discounts on the Company’s debt are reflected as a direct deduction from the carrying amount of the long-term portion of the related debt liability. The Company recorded interest expense as it relates to deferred financing fees of $2.5 million, $1.6 million and $1.6 million for the years ended December 31, 2023, 2022 and 2021, respectively. Fair Value Measurements The Company determines the fair values of its financial instruments based on the fair value hierarchy. ASC 820, Fair Value Measurement, includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The fair value of certain assets, such as nonfinancial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets, are recognized or disclosed in connection with impairment evaluations. All non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximated fair value as of December 31, 2023 and 2022, because of the relatively short maturity of these instruments. Additionally, the Company estimates the fair value of the Term Loan, discussed in Note 12, Credit Agreements , using current market yields. These current market yields are considered Level 2 inputs. The fair value of the Term Loan was $294.0 million a nd $392.0 million at December 31, 2023 and 2022, respectively. Stock-Based Compensation The Company accounts for employee and Director equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. Accordingly, compensation expense is based on the grant date fair value of those awards and is recognized over the requisite service period for the respective award. The Company’s equity-based awards granted to employees include service-based stock option awards, RSUs and PSUs, both market and non-market based. The Company grants EBITDA PSUs and rTSR PSUs to certain executives and employees under the Omnibus Plan. The EBITDA PSUs are earned based on the Company’s achievement of specified adjusted EBITDA targets. The rTSR PSUs are earned based on the Company's achievement of specified rTSR targets. Both types of PSUs vest over a three-year service period, subject to the participant’s continued employment with us or our affiliate, as applicable. The fair value of the options, RSUs, and EBITDA PSUs is determined using the grant date stock price of the Company’s common stock. The fair value for the rTSR PSUs is determined using a Monte-Carlo simulation. Compensation expense for awards solely subject to time-based vesting conditions (i.e., options and RSUs), will be recognized over their requisite service period (typically one At the time of grant, the Company takes into consideration the timing of the equity award and evaluates for conditions that could result in the award being considered spring loaded awards. The Company did not grant equity awards that would be considered spring loaded awards in 2023. Refer to Note 10, Stock-Based Compensation , for more information on equity-based awards. Recently Adopted Accounting Standards In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-08, which amends ASC 805 to require acquiring entities to apply ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to recognize and measure contract assets and contract liabilities in a business combination. The guidance is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities should apply the ASU’s provisions prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted the standard in the first quarter of 2023. The adoption did not have a material impact on the Company's consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions to ease the financial reporting burdens related to the expected market transition from London Interbank Offer Rate ("LIBOR") and other interbank offered rates to alternative reference rates. The optional amendments are effective as of March 12, 2020 through December 31, 2024, and upon adoption may be applied prospectively through December 31, 2024. The Company elected to utilize the temporary optional expedients in connection with the amendment of our credit agreement, which transitioned the Term Loan from LIBOR to the Secured Overnight Financing Rate (“SOFR”) on May 18, 2023. Refer to Note 12, Credit Agreements. The adoption did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced di |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company disaggregates revenues from contracts with customers by geographic customer location, industry vertical and revenue contract types. Geographic customer location is pertinent to understanding the Company's revenues, as the Company generates its revenues from providing professional services to customers in various regions across the world. The Company groups customers into one of five industry verticals. Revenue contract types are differentiated by the type of pricing structure for customer contracts, which is predominantly time-and-materials, but also includes fixed price contracts. Disaggregation of Revenues The following table presents the disaggregation of the Company’s revenues by customer location (in thousands): Year Ended December 31, 2023 2022 2021 North America (1) $ 417,571 $ 503,948 $ 396,491 APAC (2) 387,061 419,982 358,596 Europe (3) 280,390 315,875 267,121 LATAM 41,794 56,433 47,737 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 (1) For the years ended December 31, 2023, 2022 and 2021, the United States represented 35.7%, or $402.6 million; 36.6%, or $474.3 million; and 34.8%, or $372.8 million, respectively, of the Company’s total revenues. Canadian operations were determined to be immaterial given the revenues as a percentage of total North America revenues was less than 10% for each of the years. (2) For the years ended December 31, 2023, 2022 and 2021 , Australia represented 10.3% , or $116.4 million , 11.4%, or $148.3 million , and 10.9%, or $116.5 million , respectively, of the Company's total revenues. (3) For the year ended December 31, 2023, revenues in the United Kingdom as a percentage of the Company's total revenues was less than 10%. For the years ended December 31, 2022 and 2021, the United Kingdom represented 10.2%, or $132.6 million; and 10.8%, or $115.2 million, respectively, of the Company’s total revenues. For the years ended December 31, 2023 and 2021, revenues in Germany represented 11.1%, or $125.3 million, and 10.6%, or $113.8 million, respectively, of the Company’s total revenues. For the year ended December 31, 2022, revenues in Germany as a percentage of the Company's total revenues was less than 10%. Other foreign countries were determined to be immaterial given the revenues as a percentage of the Company’s total revenues was less than 10% for the years ended December 31, 2023, 2022 and 2021. The following table presents the disaggregation of the Company’s revenues by industry vertical (in thousands): Year Ended December 31, 2023 2022 2021 Energy, public and health services $ 294,029 $ 316,478 $ 275,279 Technology and business services 279,264 360,117 288,709 Financial services and insurance 197,407 221,748 170,492 Automotive, travel and transportation 179,268 161,164 132,272 Retail and consumer 176,848 236,731 203,193 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 The following table presents the disaggregation of the Company’s revenues by contract type (in thousands): Year Ended December 31, 2023 2022 2021 Time-and-materials $ 895,939 $ 1,085,533 $ 872,271 Fixed-price 230,877 210,705 197,674 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 Contract Balances The following table is a summary of the Company’s contract assets and contract liabilities (in thousands): As of December 31, 2023 2022 Contract assets included in unbilled receivables $ 29,981 $ 39,941 Contract liabilities included in deferred revenue $ 18,090 $ 5,167 Contract assets primarily relate to unbilled amounts on fixed-price contracts, where the right to consideration is conditional on the satisfaction of performance obligations that are measured based on hours incurred and the end deliverable to the customer. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. Professional services performed on or prior to the balance sheet date, but invoiced thereafter, are reflected in unbilled receivables. Contract liabilities represent amounts collected from the Company’s customers for revenues not yet earned. Such amounts are anticipated to be recorded as revenues when services are performed in subsequent periods. For the years ended December 31, 2023 and 2022, the Company recognized $5.0 million and $13.7 million, respectively, of revenues that were included in contract liabilities at the prior year end. Transaction Price Allocated to Remaining Performance Obligations The Company does not have material future performance obligations that extend beyond one year. Accordingly, the Company has applied the optional exemption for contracts that have an original expected duration of one year or less. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions On February 1, 2023, the Company completed the acquisition of Itoc, a leading Amazon Web Services Advanced Consulting Partner and Cloud Managed Services Provider in Australia, in an all-cash transaction for a gross purchase price of $17.8 million, or $16.0 million net of cash acquired of $1.8 million. Itoc is now wholly owned by the Company. The acquisition expands Thoughtworks’ capabilities to help modernize and place digital at the center of client operations as they transition to the cloud. The Company accounted for the acquisition under ASC 805, Business Combinations . The goodwill recognized in connection with the acquisition reflects the benefits expected to be derived from certain operational synergies. The fair value of the net assets acquired for the business was determined using Level 3 inputs, for which little or no market data exists, requiring the Company to develop assumptions regarding future cash flow projections. The results of operations of the acquired business have been included in the consolidated statements of loss and comprehensive loss from the acquisition date. Pro forma results of operations for the acquisition are not presented because the pro forma effects were not material to the Company's consolidated statements of loss and comprehensive loss. Aggregate acquisition-related costs related to Itoc of $4.6 million for the year ended December 31, 2023 were included within SG&A expenses in the consolidated statements of loss and comprehensive loss. The Company's final allocation of the fair value of underlying assets acquired and liabilities assumed as of the acquisition date is as follows (in thousands): Total Cash and cash equivalents $ 1,788 Trade receivables, net of allowance 1,251 Customer relationships, net (1) 3,500 Goodwill 13,766 Accounts payable (110) Accrued compensation (363) Accrued expenses and other current liabilities (1,162) Income taxes payable (178) Lease liabilities, current (173) Deferred tax liabilities (1,050) Other assets/liabilities, net 508 Total gross purchase price $ 17,777 (1) The weighted average amortization period is four years. Goodwill represents the excess of the purchase price over the fair values of assets acquired and liabilities assumed. The changes in fair value allocated to goodwill, tangible and intangible assets are not deductible for tax purposes. In connection with the acquisition of Connected Lab Inc. ("Connected") in the second quarter of 2022, the Company recorded a liability of $14.0 million of contingent consideration, which is included within the total purchase price and classified within accrued expenses and other current liabilities on the consolidated balance sheet as of December 31, 2022. The present value of the contingent consideration liability was determined using a Monte Carlo Simulation that calculated the average present value of the earnout payment. The fair value measurement of the earnout includes a performance metric which is an unobservable Level 3 input. The contingent consideration is payable in cash dependent upon achievement of the performance metric. The liability was remeasured to fair value at each reporting date with adjustments recorded within other (expense) income, net in the consolidated statements of loss and comprehensive loss, and the final payout amount of $14.3 million was paid on May 4, 2023. The following table presents the change in the contingent consideration liability (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 14,255 $ — Additions in the period — 13,996 Payments in the period (14,344) — Change in fair value 129 1,027 Change due to exchange rates (40) (768) Balance at end of period $ — $ 14,255 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following is a summary of the changes in the carrying value of goodwill (in thousands): Total Balance as of December 31, 2021 $ 346,719 Additions due to acquisitions 71,700 Changes due to exchange rates (13,402) Balance as of December 31, 2022 405,017 Additions due to acquisitions 13,766 Changes due to exchange rates 5,782 Balance as of December 31, 2023 $ 424,565 The following is a summary of other intangible assets (in thousands): As of December 31, 2023 2022 Customer relationships $ 196,947 $ 193,447 Less accumulated amortization (73,893) (59,369) Customer relationships, net 123,054 134,078 Trademark 273,000 273,000 Total other intangible assets, after amortization 396,054 407,078 Changes due to exchange rates (8,868) (10,031) Other intangible assets, net $ 387,186 $ 397,047 Other than an indefinite-lived trademark, the Company’s intangible assets have finite lives and, as such, are subject to amortization. The weighted average remaining useful life of the Company’s finite-lived intangible assets was 8.1 years and 9.2 years as of December 31, 2023 and 2022, respectively. Amortization expense related to these intangible assets was $14.5 million , $13.1 million and $12.0 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, estimated amortization expense for the next five years and thereafter is as follows (in thousands): Total 2024 $ 15,510 2025 15,510 2026 15,510 2027 14,708 2028 14,635 Thereafter 47,181 $ 123,054 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Loss)/Income Before Provision for Income Taxes (Loss)/income before provision for income taxes based on geographic location is as follows (in thousands): Year Ended December 31, 2023 2022 2021 (Loss)/income before provision for income taxes: United States $ 49 $ (48,578) $ (27,630) Foreign (43,179) (25,990) 43,795 Total $ (43,130) $ (74,568) $ 16,165 Provision for Income Taxes The provision/(benefit) for income taxes is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 6,517 $ 32,746 $ 9,839 State 3,229 9,259 5,071 Foreign 24,136 8,245 24,199 Total current 33,882 50,250 39,109 Deferred: Federal (4,207) (15,379) (9,088) State (947) (3,228) (2,457) Foreign (3,197) (818) (10,824) Total deferred (8,351) (19,425) (22,369) Total income tax expense $ 25,531 $ 30,825 $ 16,740 Effective Tax Rate Reconciliation A reconciliation of the Company’s provision for income taxes to income taxes computed at the U.S. federal statutory income tax rate of 21% is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Provision for income taxes at federal statutory rate $ (9,058) $ (15,659) $ 3,395 Increase/(decrease) in taxes resulting from: Non deductible expenses 810 4,713 3,008 Research and development and foreign tax credits (9,289) (9,419) (16,311) Effect of foreign taxes and foreign exchange rates 1,102 81 5,695 GILTI and related international adjustments 1,667 12,528 8,972 §162(m) limitation on executive compensation 1,146 2,759 7,396 Stock compensation excess tax deficiencies/(benefits) 16,747 2,739 (8,206) China non-deductible stock compensation expense 2,916 15,329 — US state income taxes, net of federal tax benefit 673 3,811 1,072 Change in deferred tax valuation allowance 18,005 11,919 10,060 U.K. rate change 513 (313) 855 Adjustments of prior year estimates and other (3,152) (1,044) (2,330) Adjustments associated with income tax uncertainties 3,451 3,381 3,134 Total income tax expense $ 25,531 $ 30,825 $ 16,740 Deferred Income Taxes The components of the Company’s deferred tax assets and liabilities include the following (in thousands): As of December 31, 2023 2022 Deferred tax assets: Accrued expenses $ 36,129 $ 23,572 Goodwill 379 850 Net operating loss carryforwards 40,632 20,409 Research and development and foreign tax credit carryforwards 1,423 1,350 Allowance for doubtful accounts 2,606 2,772 Fixed assets 2,519 2,526 Stock-based compensation 10,222 22,533 Business interest 11,898 9,685 Other assets 2,128 4,790 Total deferred tax assets 107,936 88,487 Total valuation allowance (47,625) (28,510) Total deferred tax assets $ 60,311 $ 59,977 As of December 31, 2023 2022 Deferred tax liabilities: Unremitted earnings of subsidiaries and unrealized translation gains $ (2,634) $ (2,793) Prepaid expenses (3,652) (3,545) Fixed assets (362) (649) Deferred revenue (445) (460) Customer relationships (30,693) (32,844) Trademark (73,028) (73,028) Internally developed software (1,415) (1,565) Other liabilities (378) (192) Total deferred tax liabilities (112,607) (115,076) Total deferred tax liabilities, net $ (52,296) $ (55,099) Management believes that it is more likely than not that certain deferred tax assets will not be realized. At December 31, 2023 and 2022, the Company established a full valuation allowance for deferred tax assets in select non-US jurisdictions of approximately $30.3 million and $14.5 million, respectively. The Company established a valuation allowance of approximately $16.4 million and $13.1 million at December 31, 2023 and 2022, respectively, for a separate company U.S. federal net operating loss carryforward and separate company U.S. federal limitation of business interest. The Company established a valuation allowance of approximately $1.0 million and $1.0 million for certain foreign tax credits at December 31, 2023 and 2022, respectively. At December 31, 2023 and 2022, the Company had separate company U.S. federal net operating loss carryforwards of $21.6 million and $14.1 million, respectively. The U.S. federal net operating loss carryforward period is indefinite. At December 31, 2023 and 2022, the Company had U.S. state net operating loss carryforward benefits of $0.1 million and $0.1 million, respectively. The majority of U.S. state net operating loss carryforwards have expiration periods that range from 10 to 20 years. At December 31, 2023 and 2022, the Company had foreign net operating loss carryforwards of approximately $146.0 million and $68.2 million, respectively. For material APAC jurisdictions, the net operating loss carryforward period is 5 years, and for all other material jurisdictions, the net operating loss carryforward period is indefinite. As of December 31, 2023 and 2022, the Company does not assert permanent reinvestment on previously taxed foreign earnings with the exception of India, where the Company is permanently reinvested. Deferred tax liabilities of $1.8 million and $2.1 million, respectively, have been accrued on the foreign withholding taxes due upon repatriation. At December 31, 2023 and 2022 a deferred tax asset of $1.5 million and $3.3 million, respectively, has been accrued and recorded to other comprehensive income for cumulative foreign currency translation on previously-taxed earnings and profits of the Company’s controlled foreign corporations. Additional tax implications of future repatriations were considered and deemed immaterial. Unrecognized Tax Benefits As of December 31, 2023, 2022 and 2021, the Company recorded $17.8 million, $14.5 million and $11.3 million, respectively, of unrecognized tax benefits, which if recognized, would favorably affect the Company’s effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Balance, beginning of year $ 14,990 $ 11,609 $ 8,123 Additions for tax positions related to the current year 1,025 — 2,068 Additions for tax positions related to prior years 7,388 3,424 1,923 Reductions for tax positions related to prior years (23) (43) (505) Statute of limitations expirations (1,520) — — Settlements with tax authorities (3,419) — — Balance, end of year $ 18,441 $ 14,990 $ 11,609 The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. For the years ended December 31, 2023, 2022 and 2021, the income tax expense/(benefit) recognized for interest and penalties related to unrecognized tax (expense)/benefits was $0.7 million, $0.4 million and $0.3 million, respectively. At December 31, 2023, 2022 and 2021, the Company had cumulative liabilities for penalties and interest related to unrecognized tax benefits of approximately $2.7 million, $2.0 million and $1.6 million, respectively. There were no tax positions for which it was reasonably possible that unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. The Company files tax returns in the U.S. federal, various U.S. states, and various foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2020. The Company’s India subsidiary is no longer subject to income tax examinations by tax authorities in India for years before 2005. For the remaining foreign tax jurisdictions, with few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2017. |
Property and Equipment, net
Property and Equipment, net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net Property and equipment consisted of the following (in thousands): As of December 31, 2023 2022 Automobiles $ 59 $ 5 Computer equipment 45,749 46,300 Software, including internal-use 22,277 19,170 Leasehold improvements 24,200 22,245 Office furniture and equipment 6,407 6,561 98,692 94,281 Less: accumulated depreciation and amortization (72,646) (55,483) Property and equipment, net $ 26,046 $ 38,798 Depreciation and amortization expense for property and equipment was $21.9 million , $21.3 million and $17.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Loss Per Common Share
Loss Per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Common Share | Loss Per Common Share Basic loss per common share is computed by dividing the net loss allocated to common shareholders by the weighted average common shares outstanding for the period. Diluted loss per common share is computed by giving effect to all potential shares of common stock, including outstanding stock options, unvested RSUs and unvested PSUs, to the extent the shares are dilutive. PSU shares are not included in dilution during the performance period. Once the performance period is complete, the PSU shares are included in dilution during the remaining service period, to the extent they are dilutive. Basic and diluted loss per common share are the same for all periods presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method. The components of basic and diluted loss per common share are as follows (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ (68,661) $ (105,393) $ (575) Preferred stock dividends — — (59,642) Net loss allocated to common stockholders $ (68,661) $ (105,393) $ (60,217) Denominator: Weighted average shares outstanding – Basic and diluted 317,718,424 310,911,526 254,271,997 Basic and diluted loss per common share $ (0.22) $ (0.34) $ (0.24) The following potentially dilutive securities were excluded from the computation of diluted loss per common share because the impact of including them would have been anti-dilutive: Year Ended December 31, 2023 2022 2021 Employee stock options, RSUs and performance stock units ("PSUs") 22,182,607 26,802,540 23,435,860 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases facilities (office space and corporate apartments) and equipment (IT equipment) under various non-cancelable operating leases that expire through September 2032, some of which include one or more options to extend the leases, generally at rates to be determined in accordance with the agreements. The Company's facility leases generally provide for periodic rent increases and may contain escalation clauses and renewal options. The Company's lease terms include options to extend the lease if they are reasonably certain of being exercised. The Company recognizes operating lease expense on a straight-line basis over the lease term and variable lease payments are expensed as incurred. Lease costs are primarily recorded within SG&A expenses in the Company's consolidated statements of loss and comprehensive loss. As of December 31, 2023 and 2022, the Company's finance leases were immaterial. The Company determines if a contract contains a lease at lease inception. If the borrowing rate implicit in the lease is not determinable, the Company uses its incremental borrowing rate ("IBR") based on information available at lease commencement including prevailing financial market conditions to determine the present value of future lease payments. The Company has elected the option to combine lease and non-lease components as a single component for the Company's entire population of lease assets. Operating lease assets and lease liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent the right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, and lease incentives. The Company has elected not to apply the recognition requirements to short-term leases of 12 months or less and instead recognizes lease payments as expense on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leased assets are presented net of accumulated amortization. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates or usage, are not included in the ROU assets or liabilities; instead, these are expensed as incurred and recorded as variable lease expense. As of December 31, 2023, the Company had additional operating leases that have not yet commenced of $2.7 million. These leases will commence in 2024 and have lease terms ranging from 5 to 6 years. The following table presents total lease cost (in thousands): Year Ended December 31, 2023 2022 Operating lease cost $ 21,275 $ 19,818 Variable lease cost 4,026 2,908 Short-term lease cost 621 614 Total lease cost $ 25,922 $ 23,340 The following table presents supplemental cash flow information (in thousands): Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 21,466 $ 19,779 ROU assets obtained in exchange for new operating lease liabilities $ 16,344 $ 21,819 Non-cash net decrease due to lease modifications: Operating lease ROU assets $ (2,326) $ — Operating lease liabilities $ (1,850) $ — The following table presents average lease terms and discount rates: As of December 31, 2023 2022 Weighted-average remaining operating lease term (years) 4.2 4.7 Weighted average operating lease discount rate 5.9 % 5.3 % As of December 31, 2023, the aggregate future lease payments under all operating leases are as follows (in thousands): Operating 2024 $ 17,411 2025 12,123 2026 8,094 2027 4,377 2028 2,736 Thereafter 5,908 Total lease payments 50,649 Less: imputed interest 5,567 Present value of lease liabilities $ 45,082 ASC 840 Disclosures Prior to the adoption of Topic 842, total rent expense for all operating leases for the year ended December 31, 2021 was $19.4 million. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Redeemable Convertible Preferred Stock In September 2021, upon the closing of the Company's IPO, all outstanding shares of redeemable convertible preferred stock were converted into an aggregate of 1,365,058 shares (pre-43.6-for-1 stock split) of common stock. Further, in connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 100,000,000 shares of undesignated preferred stock with a par value of $0.001 per share with rights and preferences, including voting rights, designated from time to time by the Board of Directors. Common Stock In connection with the IPO, all classes of shares of the Company's common stock then outstanding were converted into 5,259,163 shares (pre-43.6-for-1 stock split) of common stock on a one-to-one basis. As a result, the securities of the Company are represented by shares of common stock with a par value of $0.001 per share. Each share of common stock is entitled to one vote. With respect to payment of dividends and distribution of assets upon liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, all shares of common stock will participate pro rata in such payment whenever funds are legally available and when declared by the Board, subject to the prior rights of holders of all classes of stock outstanding. As of December 31, 2023, there were 1,000,000,000 shares of common stock authorized and 322,407,385 shares of common stock outstanding. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Equity Incentive Plans On October 12, 2017, the Company approved the 2017 Plan for the purpose of providing an incentive compensation structure to participants. Under the 2017 Plan, the Company may make awards to such present and future officers, directors, employees, consultants and advisors of the Company as may be selected at the sole discretion of the Board. The option awards gave the participant the right to purchase the Company's former Class C common stock for a prespecified exercise price. As a result of the IPO, the Company no longer grants awards under the 2017 Plan, and all previously awarded options can now be exercised for only the Company's current common stock when vested and exercisable. In September 2021, the Board approved the Omnibus Plan to assist the Company in attracting, retaining, motivating, and rewarding certain employees, officers, directors, and consultants of the Company and its Affiliates and promoting the creation of long-term value for stockholders, which became effective in connection with the IPO. A total of 77,304,732 shares of the Company’s common stock have been reserved for issuance under the Omnibus Plan. The following is a summary of the components of stock-based compensation expense for the periods indicated (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 38,981 $ 176,046 $ 60,678 Selling, general and administrative expenses 25,848 73,869 67,624 Restructuring 197 — — Total stock-based compensation expense $ 65,026 $ 249,915 $ 128,302 The income tax expense/(benefit) recognized related to stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 was $20.9 million, $20.6 million and $(0.8) million, respectively. Stock Options Under the 2017 Plan, eligible employees received non-qualified stock options as a portion of their total compensation. The options vest on a graded time vesting schedule (“Time Vesting Options”) over a vesting term of four years and a contractual term of 10 years, with 37.5% vesting on the 18-month anniversary and 6.25% vesting every three months for the remainder of the 48-month period. Upon a change of control, 100% of the time-vesting options will vest immediately. Any unvested options will be forfeited upon termination of employment. The following is a summary of performance and time vesting stock option activity for the year ended December 31, 2023 (in thousands, except share and per share data): Number of Stock Options Weighted Average Exercise Price Aggregate Weighted- Balance at December 31, 2022 21,607,562 $ 3.83 Granted — — Forfeited (579,649) 10.88 Exercised (2,432,182) 2.70 Cancelled — — Expired — — Balance at December 31, 2023 18,595,731 $ 3.76 $ 36,016 4.5 Exercisable at December 31, 2023 18,213,108 $ 3.60 $ 36,016 4.5 As of December 31, 2023, total compensation cost related to Time Vesting Options not yet recognized was $3.0 million, which will be recognized over a weighted-average period of 1.2 years. Unless otherwise prohibited by law in local jurisdictions, Time Vesting Options will continue to vest according to the 2017 Plan and the applicable award agreements. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021 was $9.2 million, $29.6 million and $24.9 million, respectively. The weighted-average grant date fair value of options granted during the year ended December 31, 2021 was $10.32. No options were granted during the years ended December 31, 2023 and 2022. The following table summarizes the weighted-average assumptions used in estimating the fair value of stock options granted to employees: Year Ended December 31, 2021 (1) Risk-free interest rate 0.1 % Dividend yield — % Expected volatility 55.0 % Expected term (years) 1 (1) The risk-free interest rate is based on the rates of U.S. Treasury securities with a maturity similar to the term to liquidity, continuously compounded. The expected equity volatility is estimated based on an analysis of guideline public companies’ historical volatility. As these stock options were awarded prior to the IPO, the expected term was estimated based on management’s assumptions of time to a liquidity event. Restricted Stock Units In September 2021, the Board approved the Omnibus Plan . Under the Omnibus Plan, RSUs are awarded to eligible employees and entitle the grantee to receive shares of common stock at the end of a vesting period. Unvested RSUs as of December 31, 2023 have varying vesting schedules, with the majority of shares vesting evenly over four years. Throughout the vesting period shareholders are subject to the market risk on the value of their shares. The following is a summary of RSU activity for the year ended December 31, 2023: Number of RSUs Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 13,013,946 $ 17.37 Granted 8,323,470 4.04 Forfeited (1,995,186) 16.68 Vested (1) (6,005,401) 20.03 Unvested balance at December 31, 2023 13,336,829 $ 7.96 (1) Includes 1.7 million shares that were net settled when released and returned to the share pool for future grants. The total fair value of RSUs vested during the years ended December 31, 2023 and 2022 was $32.4 million and $189.6 million, respectively. No RSUs vested during the year ended December 31, 2021. As of December 31, 2023, total compensation cost related to all RSUs not yet recognized was $99.7 million, which will be recognized over a weighted-average period of 2.7 years . Performance Stock Units The Company grants PSUs to certain executives and employees under the Omnibus Plan, which include awards with a performance and time-based vesting as well as awards with market-based performance vesting components. The performance and time-based PSUs, or non-market-based PSUs, are subject to the Company’s achievement of specified profit targets. The market-based awards are tied to the Company's performance against relative total shareholder return ("rTSR") targets. Both types of PSUs vest at the end of a three-year service period. The following is a summary of PSU activity for the year ended December 31, 2023: Number of PSUs Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 76,697 $ 20.11 Granted (1) 737,483 8.44 Adjustment for PSUs expected to vest as of current period end (718,483) 8.21 Forfeited (7,565) 12.33 Vested — — Unvested balance at December 31, 2023 88,132 $ 20.11 (1) Reflects shares granted at 100%. For compensation expense purposes, the fair value of the non-market-based PSUs was determined using the closing stock price on the grant date, and the fair value for the market-based PSUs was determined using a Monte-Carlo simulation. As of December 31, 2023, total compensation co st related to PSUs not yet recognized was $4.6 million. The unamortized expense is anticipated to be recognized over a weighted-average period of 1.7 years. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefits Plan | Benefit Plans The Company sponsors a 401(k) plan for substantially all U.S. employees. Employees are allowed to make contributions to the plan through withholdings of their salary. The plan provides for the Company to make a discretionary matching contribution. Contributions to the plan for the years ended December 31, 2023, 2022 and 2021, totaled $3.8 million, $4.1 million and $3.1 million, respectively. The Company also maintains similar defined contribution plans in the United Kingdom, Canada, Spain, Italy, Singapore, and Thailand. Total employer contributions under these plans for the years ended December 31, 2023, 2022 and 2021 were $7.2 million, $6.6 million and $5.4 million, respectively. |
Credit Agreements
Credit Agreements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreements | Credit Agreements The Company entered into a Senior Secured Credit Facilities (the “Term Loan”), dated October 12, 2017, most recently amended as of May 18, 2023, among the Company, the syndicate lenders thereto and Credit Suisse, AG, Cayman Islands Branch, as administrative agent, to finance, in part, the acquisition of all of the outstanding common stock of the Company. The Term Loan and the Revolver, together with any subsequent amendments, are collectively referred to as the Credit Agreement. On March 26, 2021, the Company amended and restated its credit agreement (the “Amendment and Restatement”) to increase the term loan facility to a total of $715.0 million. Also, as part of the facility, the aggregate revolving credit facility was increased from $85.0 million to $165.0 million. On December 9, 2022, the Company amended and restated its credit agreement (the “Second Amendment and Restatement”) to (i) increase the amount of revolving credit commitments from $165.0 million to $300.0 million and (ii) transition the reference rate for the revolving borrowings under the Credit Agreement from LIBOR to SOFR and amend the applicable margins as specified therein. On May 18, 2023, the Company amended and restated its credit agreement (the “Third Amendment and Restatement”) to transition the reference rate for the Term Loan borrowings under the Credit Agreement from LIBOR to SOFR. Borrowings under the Term Loan bear interest at a rate per annum equal to an applicable margin based on the Company’s leverage ratio, plus either (a) a base rate or (b) the SOFR rate, at the Company's option, subject to interest rate floors. Borrowings under the Revolver bear interest at a rate per annum equal to an applicable margin based on the Company’s leverage ratio, plus either (a) a base rate or (b) the SOFR rate at the Company's option. In addition to paying interest on outstanding borrowings under the Revolver, the Company is required to pay a commitment fee to the lenders under the Revolver in respect of unutilized commitments thereunder and customary letter of credit fees. All obligations of the Company under the Senior Secured Credit Facilities provided by any lender party to the Senior Secured Credit Facilities or any of its affiliates and certain other persons are unconditionally guaranteed by a wholly owned subsidiary of Thoughtworks Holding, Inc., and each existing and subsequently acquired or organized direct or indirect wholly owned domestic restricted subsidiary of the Company, with customary exceptions including, among other things, where providing such guarantees is not permitted by law, regulation or contract or would result in material adverse tax consequences. All obligations under the Senior Secured Credit Facilities provided by any lender party to the Senior Secured Credit Facilities or any of its affiliates and certain other persons, and the guarantees of such obligations, are secured, subject to permitted liens and other exceptions, as outlined in the Senior Secured Credit Facilities. The Term Loans and borrowings under our Revolver contain a number of financial and non-financial covenants that, among other things, restrict, subject to certain exceptions, the Company’s ability and the ability of the Company’s restricted subsidiaries to engage in certain activities, such as incur indebtedness or permit to exist any lien on any property or asset now owned or hereafter acquired, as specified in the debt facility. The Credit Agreement requires compliance with certain covenants customary for agreements of this type. As of December 31, 2023, the Company was in compliance with its debt covenants. The Company incurred and capitalized deferred financing fees, or third-party debt issuance costs, of $0.1 million and $3.6 million related to the restated credit agreement for the years ended December 31, 2023 and 2022, respectively. The debt issuance costs are recorded as reductions of the outstanding long-term indebtedness. The Term Loan is paid in equal quarterly installments in aggregate annual amounts equal to 1% of the original principal amount of the Term Loan. On February 24, 2023, the Company made a voluntary prepayment of $100.0 million on outstanding amounts owed on the Term Loan. As a result of the prepayment, the Company wrote off $0.9 million of deferred financing fees, which is reflected in other (expense) income, net in the consolidated statements of loss and comprehensive loss for the year ended December 31, 2023. The following table presents the Company's outstanding debt and borrowing capacity (in thousands): As of December 31, 2023 2022 Availability under revolving credit facility (due March 26, 2026) $ 300,000 $ 300,000 Borrowings under revolving credit facility — — Long-term debt (due March 24, 2028), including current portion (1) 293,185 399,006 Interest rate 8.0 % 6.9 % (1) The balance includes deferred financing fees. A reconciliation of gross to net amounts is presented below. The carrying value of the Company’s credit facilities (including current maturities) is as follows (in thousands): As of December 31, 2023 2022 Long-term debt, less current portion $ 288,188 $ 395,338 Capitalized deferred financing fees (2,153) (3,482) Long-term debt 286,035 391,856 Current portion of long-term debt 7,150 7,150 Total debt carrying value $ 293,185 $ 399,006 As of December 31, 2023, the Company’s future principal cash payments for the Term Loan are as follows (in thousands): Total 2024 $ 7,150 2025 7,150 2026 7,150 2027 7,150 2028 266,738 Total future principal cash payments $ 295,338 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities The following is a summary of the Company’s accrued expenses and other current liabilities (in thousands): As of December 31, 2023 2022 Contingent consideration $ — $ 14,255 Value-added tax and sales tax payable 4,821 7,526 Restructuring 3,503 — Other accrued expenses 13,830 15,972 Accrued expenses and other current liabilities $ 22,154 $ 37,753 |
Restructuring Actions
Restructuring Actions | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | Restructuring Actions On August 8, 2023, the Company announced that its Board of Directors approved and committed to a structural reorganization (the "Reorganization") on August 7, 2023 that will (i) move its operational functions from a geographic to a centralized model, (ii) create a new organizational home for the majority of its client facing workforce, our Digital Engineering Center, and (iii) evolve its regional market structure. The majority of the actions were taken in the third quarter of 2023, and the Company expects actions to be completed by the end of the third quarter of 2024. Thoughtworks expects to incur total pre-tax cash charges of approximately $20 million to $25 million (the “Total Charges”), of which $18.9 million was recognized in 2023. The expected Total Charges include $18 million to $22 million in wage-related expenses, such as employee severance and related benefits, and $2 million to $3 million in non-wage related expenses, including costs related to reducing leased office space, vendor contract cancellations, professional fees and other reorganization costs. The total costs related to the Reorganization are reported in restructuring in the consolidated statements of loss and comprehensive loss. The liability as of December 31, 2023 is reflected in accrued expenses and other current liabilities on the consolidated balance sheet. The table below summarizes the activities related to the restructuring for the year ended December 31, 2023 (in thousands): Wage-related expenses Non-wage related expenses Total Liability as of December 31, 2022 $ — $ — $ — Charges 17,244 1,700 18,944 Payments (13,913) (684) (14,597) Non-cash items (1) (197) (647) (844) Liability as of December 31, 2023 $ 3,134 $ 369 $ 3,503 (1) Wage-related expenses includes stock-based compensation expense. Non-wage related expenses includes charges related to reducing leased office space. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated balance for each component of accumulated other comprehensive loss (in thousands): Year Ended December 31, 2023 2022 2021 Foreign currency translation: Beginning balance $ (39,210) $ (10,844) $ (1,574) Foreign currency translation gain/(loss) 2,859 (31,569) (8,221) Income tax (expense) benefit (1,815) 3,203 (1,049) Foreign currency translation, net of tax 1,044 (28,366) (9,270) Ending balance (38,166) (39,210) (10,844) Accumulated other comprehensive loss $ (38,166) $ (39,210) $ (10,844) |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ (68,661) | $ (105,393) | $ (575) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
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 |
Business and Summary of Signi_2
Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | The accompanying consolidated financial statements include the accounts of Thoughtworks Holding, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain amounts in the prior period consolidated financial statements and notes have been reclassified to conform to the 2023 presentation. These reclassifications had no effect on results of operations previously reported. |
Preparation of Financial Statements | The preparation of these consolidated financial statements is in conformity with generally accepted accounting principles in the United States (“GAAP”) and applicable rules and regulations of the SEC. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. On an ongoing basis, the Company evaluates its estimates, including those related to allowance for credit losses, valuation and impairment of goodwill and long-lived assets, income taxes, accrued bonus, contingencies, stock-based compensation and litigation costs. |
Use of Estimates | The Company bases its estimates on current expectations and historical experience and on other assumptions that its management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying value of assets and liabilities when those values are not readily apparent from other sources. Actual results can differ from those estimates, and such differences may be material to the consolidated financial statements in the future. In management’s opinion, all adjustments considered necessary for a fair presentation of the accompanying consolidated financial statements have been included, and all adjustments are of a normal and recurring nature. |
Segments | The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker (“CODM”), in deciding how to allocate resources and assess performance. While the Company has offerings in multiple modern digital businesses and operates in multiple countries, the Company’s business operates in one operating segment because most of the Company's service offerings are delivered and supported on a global basis and are deployed in a nearly identical way. The Company’s CODM evaluates the Company’s financial information, allocates resources and assesses the performance of these resources on a consolidated basis. |
Long-Lived Assets | The North America geographic region encompasses the Company’s country of domicile (United States) and Canada, of which long-lived assets include property and equipment, net of depreciation, and lease right-of-use ("ROU") assets which are principally held within the United States. Canadian long-lived assets were determined to be immaterial given the amount was less than 10% of the Company's long-lived assets as of December 31, 2023 and 2022. Th e Company holds material long-lived assets in the foreign geographic locations noted in the table below. |
Revenue Recognition and Cost of Revenues | The Company recognizes revenues when control of services is passed to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those services. Such control may be transferred over time or at a point in time, depending on satisfaction of obligations stipulated by the contract. The Company records sales and other taxes collected from customers and remitted to governmental authorities on a net basis. The Company generates revenue from a variety of professional service arrangements. Fees for these contracts may be in the form of time-and-materials and fixed price. The Company also reports gross reimbursable expenses incurred as both revenue and cost of revenues in the consolidated statements of loss and comprehensive loss. Revenue is measured based on consideration specified in a contract with a customer, which may consist of both fixed and variable components, and the consideration expected to be received is allocated to each separately identifiable performance obligation based on the performance obligation’s relative standalone selling price. The standalone selling prices are generally determined based on the prices at which the Company separately sells the services. Contracts may include variable consideration, which usually takes the form of volume-based discounts, service level credits, price concessions, or incentives. To the extent that variable consideration is not constrained, the Company includes the expected amount within the total transaction price and updates its assumptions over the duration of the contract. Determining the estimated amount of such variable consideration involves assumptions and judgment that can have an impact on the amount of revenues reported. The amount of variable consideration is estimated utilizing the expected value or most likely amount method, depending on the facts and circumstances relative to the contract. Time-and-Materials Revenues The Company generates the majority of its revenues under time-and-materials contracts, which are billed using hourly, daily, or monthly rates to determine the amounts to be charged directly to the customer. Revenue from time-and-materials contracts is based on the number of hours worked and at contractually agreed-upon hourly rates and is recognized as those services are rendered as control of the services passes to the customer over time. Fixed-Price Revenues Fixed-price contracts include application development arrangements, and with certain contracts, progress towards satisfaction of the performance obligation is measured using input methods as there is a direct correlation between hours incurred and the end deliverable to the customer. With other contracts, progress towards the satisfaction of the performance obligation is measured using input methods with a direct correlation to resources consumed and the services provided to the customer. Assumptions, risks, and uncertainties inherent in the estimates used to measure progress could affect the amount of revenues, receivables, and deferred revenues at each reporting period. Revenues under these contracts are recognized using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying performance obligations or based on resources utilized at contractually agreed-upon fixed rates. Principal vs Agent Consideration From time to time, the Company may enter into arrangements with third-party suppliers to sell services. In such cases, the Company evaluates whether it is the principal (i.e., reports revenues on a gross basis) or the agent (i.e., reports revenues on a net basis). In doing so, the Company first evaluates whether it has control of the service before it is transferred to the customer. If the Company controls the service before it is transferred to the customer, the Company is the principal; if not, the Company is the agent. Determining whether the Company controls the service before it is transferred to the customer may require judgment. Contract Balances A contract asset is a right to consideration that is conditional upon factors other than the passage of time. Contract assets primarily relate to unbilled amounts on fixed-price contracts, where the right to consideration is conditional on the satisfaction of performance obligations that are measured based on hours incurred and the end deliverable to the customer. Contract assets are recorded when services have been provided but the Company does not have an unconditional right to receive consideration. Professional services performed on or prior to the balance sheet date, but invoiced thereafter, are reflected in unbilled receivables. Contract liabilities, or deferred revenue, consist of advance payments from clients and billings in excess of revenues recognized. The Company classifies deferred revenue as current on the consolidated balance sheet and is recognized as revenue as the Company performs under the contract. These balances are generally short-term in nature and are recognized as revenue within one year. Costs to Obtain a Customer Contract The Company incurs certain incremental costs to obtain a contract that the Company expects to recover. The Company applies a practical expedient and recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. The Company capitalizes incremental costs of obtaining contracts where the contract term is greater than one year. These costs primarily relate to commissions paid to the account executives and are included in SG&A expenses in the consolidated statements of (loss) income and comprehensive (loss) income for contracts one year or less and other current assets and other non-current assets on the consolidated balance sheets for contracts greater than one year. Costs capitalized are amortized on a straight-line basis over the period of benefit. Amortization of capitalized costs to obtain contracts is included in SG&A expenses in the consolidated statements of (loss) income and comprehensive (loss) income. The Company determined the period of benefit by taking into consideration standard contract terms, renewals and amendments, if applicable. The capitalized amounts are recoverable through future revenue streams under all non-cancelable customer contracts. The Company periodically evaluates whether there have been any changes in its business, the market conditions in which it operates or other events which would indicate that its amortization period should be changed or if there are potential indicators of impairment. Consists primarily of personnel and related costs directly associated with professional services, including salaries, bonuses, fringe benefits, stock-based compensation, project related travel costs, and costs of contracted third-party vendors. Also included in cost of revenues is depreciation attributable to the portion of our property and equipment utilized in the delivery of services to our clients. |
Selling, General and Administrative Expenses | Consists of expenses associated with promoting and selling the Company’s services and general and administrative functions of the business. These expenses include the costs of salaries, bonuses, fringe benefits, commissions, stock-based compensation, severance, bad debt, travel, legal and accounting services, insurance, facilities including operating leases, advertising and other promotional activities. Advertising costs consist of marketing, advertising through print and other media, professional event sponsorship, and public relations. These costs are expensed as incurred. Advertising costs totaled $5.0 million, $4.1 million and $2.3 million for the years ended December 31, 2023, 2022 and 2021, respectively, and are included in SG&A expenses in the consolidated statements of loss and comprehensive loss. |
Other (Expense) Income | Other (expense) income consists of interest expense, impacts from foreign exchange transactions, gains (losses) on the sale of assets, gains related to the sale and settlement of trade receivables, change in fair value of contingent consideration and the write-off of deferred financing fees. |
Cash and Cash Equivalents | Cash equivalents are short-term, highly liquid investments and deposits that are readily converted into cash, with maturities of three months or less . |
Restricted Cash | Restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. Restricted cash is restricted as to withdrawal or use. The Company has restricted cash held on deposit at various financial institutions to secure bank guarantees of amounts related to government requirements and for collateral for a corporate credit card. |
Accounts Receivable | Accounts receivable are uncollateralized customer obligations due under normal trade terms. Payment terms with customers are generally 30 to 90 days from the invoice date. Accounts receivable are recorded at the invoiced amount net of an allowance for credit loss. |
Allowance for Credit Losses | The Company analyzes its historical credit loss experience and considers current conditions and reasonable and supportable forecasts in developing the expected credit loss rates. Interest is not generally accrued on outstanding balances as the balances are considered short-term in nature. |
Business Combinations | The Company accounts for business combinations using the acquisition method of accounting which requires it to allocate the fair value of purchase consideration to the assets acquired and liabilities assumed based on the estimated fair values at the acquisition date. The fair value of the net assets acquired for the business is determined utilizing expectations and assumptions believed reasonable by management. The excess of the purchase consideration transferred over the fair values of assets acquired and liabilities assumed is recorded as goodwill. As additional information is obtained about the assets and liabilities of the acquisition during the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed with an offset to goodwill. After the measurement period, any adjustments are recorded in the consolidated statements of loss and comprehensive loss. Acquisition costs are expensed as incurred. Some business combinations may include a contingent consideration agreement. The Company determines the fair value of the contingent consideration liability using a Monte Carlo Simulation. The liability is remeasured to fair value at each reporting date with adjustments recorded within other income (expense), net in the consolidated statements of loss and comprehensive loss. |
Government Assistance | The Company has historically received government subsidies in the form of cash in China and Singapore related to expenses such as rent, wages, training benefits and taxes. The subsidies are recorded against the related expense within SG&A expense or cost of revenues in the consolidated statements of loss and comprehensive loss. |
Property and Equipment, net | Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. The estimated useful lives, by asset class, are as follows: Office furniture and equipment 7 years Computer equipment 3 years Software, including internal-use software 3 to 5 years Automobiles 7 years Leasehold improvements are amortized using the straight-line method over the shorter of their estimated useful lives or the terms of the related leases. The Company reviews long-lived assets, including property and equipment and finite-lived intangible assets, for realizability on an ongoing basis. Changes in depreciation, generally accelerated depreciation, are determined and recorded when estimates of the remaining useful lives or residual values of long-term assets change. The Company also reviews for impairment when conditions exist that indicate the carrying amount of the asset group may not be fully recoverable. In those circumstances, the Company performs an undiscounted operating cash flow analysis to determine if an impairment exists. Any impairment loss is calculated as the excess of the asset’s carrying value over its estimated fair value. Fair value is estimated based on the discounted cash flows for the asset group over the remaining useful life or based on the expected cash proceeds for the asset less costs of disposal. |
Internal-Use Software | In accordance with ASC 350-40, Internal-Use Software, certain costs incurred in the planning and evaluation stage of internal-use computer software are expensed as incurred. Certain costs incurred during the application development stage are capitalized and included in property and equipment. Capitalized costs are depreciated over the expected economic useful life of three |
Goodwill | Goodwill represents the excess of cost over the fair value of the net assets acquired in a business combination. When the Company acquires a business, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired and liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statement of operations. The Company performs an annual impairment review of goodwill in its fiscal fourth quarter and additional impairment reviews when events and circumstances indicate it is more likely than not that an impairment may have occurred. The Company assesses goodwill for impairment at the reporting unit level. |
Intangible Assets, net | In accordance with ASC 350, Intangibles – Goodwill and Other, the Company amortizes its finite-lived intangible assets over their respective estimated useful lives. The Company reviews both indefinite-lived intangibles and finite-lived intangibles for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that they may be impaired. Impairment indicators could include significant under-performance relative to the historical or projected future operating results, significant changes in the manner of use of assets, significant negative industry or economic trends or significant changes in the Company’s market capitalization relative to net book value. Any changes in key assumptions used by the Company, including those set forth above, could result in an impairment charge and such a charge could have a material adverse effect on the Company’s consolidated statements of loss and comprehensive loss. The Company’s other intangible assets consist of an indefinite-lived trademark and finite-lived customer relationships. Customer relationships have an estimated useful life of four |
Income Taxes | The Company is subject to both the United States of America (U.S.) and foreign income taxes. A current tax asset or liability is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred income taxes are recorded to reflect the tax consequences on future years of the difference between the tax bases of assets and liabilities for income taxes and for financial reporting purposes using enacted tax rates in effect for the year in which differences are expected to reverse. The Company nets the deferred tax assets and deferred tax liabilities from temporary differences arising within the same tax jurisdiction and presents the net asset or liability as long term. The Company assesses the need to account for deferred taxes on unremitted earnings of its foreign subsidiaries on an individual country basis according to management’s assertions regarding repatriation or permanent investment of each country’s accumulated earnings. A valuation allowance is established when necessary to reduce deferred income tax assets to the amounts expected to be realized. The Company classifies interest and penalties associated with tax liabilities as income tax expense in the consolidated statements of loss and comprehensive loss. The Company provides for tax expense related to Global Intangible Low-Tax Income ("GILTI") in the year the tax is incurred. The Company’s provision for income taxes includes the impact of provisions established for uncertain income tax positions, as well as any related interest and penalties. These reserves are adjusted given changing facts and circumstances, such as the closing of a tax audit, statute of limitation lapse or the refinement of an estimate. To the extent the final outcome of an uncertain income tax position differs from the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists solely of foreign currency translation adjustments. |
Foreign Currency | Assets and liabilities of consolidated foreign subsidiaries whose functional currency is not the U.S. dollar are translated into U.S. dollars at period-end exchange rates and revenues and expenses are translated into U.S. dollars at average exchange rates for the applicable period. The adjustment resulting from translating the financial statements of such foreign subsidiaries into U.S. dollars is reflected as a cumulative translation adjustment and reported as a component of accumulated other comprehensive loss. For consolidated foreign subsidiaries whose functional currency is the U.S. dollar, transactions and balances denominated in the local currency are foreign currency transactions. Foreign currency transactions and balances related to non-monetary assets and liabilities are remeasured to the functional currency of the subsidiary at historical exchange rates while monetary assets and liabilities are remeasured to the functional currency of the subsidiary at period-end exchange rates. Foreign currency exchange gains or losses from remeasurement are included in income in the period in which they occur. |
Commitments and Contingencies | Certain conditions may exist as of the date of the consolidated financial statements which may result in a loss to the Company but will only be resolved when one or more future events occur or fail to occur. Such liabilities for loss contingencies arising from claims, assessments, litigation, fines, penalties, and other sources, are recorded when the Company assesses that it is probable that a future liability has been incurred and the amount can be reasonably estimated. Recoveries of costs from third parties, which the Company assesses as being probable of realization, are recorded to the extent of related contingent liabilities accrued. Legal costs incurred in connection with matters relating to contingencies are expensed in the period incurred. The Company records gain contingencies when realized. |
Deferred Financing Fees | Deferred financing fees represent third-party debt issuance costs associated with the related debt facility. Deferred financing fees associated with the Company’s debt agreements are treated as a discount on the outstanding debt balance and amortized over the term of the respective debt facility, using the effective interest rate method and reported as a component of interest expense. Debt discounts on the Company’s debt are reflected as a direct deduction from the carrying amount of the long-term portion of the related debt liability. |
Fair Value Measurements | The Company determines the fair values of its financial instruments based on the fair value hierarchy. ASC 820, Fair Value Measurement, includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on observable or unobservable inputs to valuation techniques that are used to measure fair value. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1: Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3: Inputs that are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The fair value of certain assets, such as nonfinancial assets, primarily long-lived assets, goodwill, intangible assets and certain other assets, are recognized or disclosed in connection with impairment evaluations. All non-recurring valuations use significant unobservable inputs and therefore fall under Level 3 of the fair value hierarchy. The carrying amounts of financial instruments including cash and cash equivalents, accounts receivable, and accounts payable approximated fair value as of December 31, 2023 and 2022, because of the relatively short maturity of these instruments. Additionally, the Company estimates the fair value of the Term Loan, discussed in Note 12, Credit Agreements |
Stock-Based Compensation | The Company accounts for employee and Director equity-based compensation in accordance with ASC 718, Compensation – Stock Compensation. Accordingly, compensation expense is based on the grant date fair value of those awards and is recognized over the requisite service period for the respective award. The Company’s equity-based awards granted to employees include service-based stock option awards, RSUs and PSUs, both market and non-market based. The Company grants EBITDA PSUs and rTSR PSUs to certain executives and employees under the Omnibus Plan. The EBITDA PSUs are earned based on the Company’s achievement of specified adjusted EBITDA targets. The rTSR PSUs are earned based on the Company's achievement of specified rTSR targets. Both types of PSUs vest over a three-year service period, subject to the participant’s continued employment with us or our affiliate, as applicable. The fair value of the options, RSUs, and EBITDA PSUs is determined using the grant date stock price of the Company’s common stock. The fair value for the rTSR PSUs is determined using a Monte-Carlo simulation. Compensation expense for awards solely subject to time-based vesting conditions (i.e., options and RSUs), will be recognized over their requisite service period (typically one At the time of grant, the Company takes into consideration the timing of the equity award and evaluates for conditions that could result in the award being considered spring loaded awards. The Company did not grant equity awards that would be considered spring loaded awards in 2023. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements Not Yet Adopted | In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 2021-08, which amends ASC 805 to require acquiring entities to apply ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to recognize and measure contract assets and contract liabilities in a business combination. The guidance is effective for public entities for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Entities should apply the ASU’s provisions prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted the standard in the first quarter of 2023. The adoption did not have a material impact on the Company's consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The guidance is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The guidance should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company is currently assessing the impact of this ASU on the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which requires public business entities to provide annual disclosure of specific categories in the rate reconciliation and income taxes paid disaggregated by jurisdiction. The guidance is effective for public entities for fiscal years beginning after December 15, 2024. Early adoption is permitted. The ASU applies on a prospective basis, however, retrospective application is permitted. The Company is currently assessing the impact of this ASU on the consolidated financial statements. |
Business and Summary of Signi_3
Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Long-Lived Assets by Geographic Areas | The following table presents long-lived assets by location (in thousands): As of December 31, 2023 2022 United States $ 14,582 21.5 % $ 18,205 22.2 % Germany 13,052 19.2 % 13,606 16.6 % India 10,793 15.9 % 14,457 17.6 % China 10,616 15.7 % 12,160 14.9 % All other (1) 18,774 27.7 % 23,493 28.7 % Total long-lived assets $ 67,817 100.0 % $ 81,921 100.0 % (1) All other foreign geographic locations hold long-lived assets of less than 10% of the Company's consolidated total. |
Schedule of Capitalized Contract Cost | The following table is a summary of the Company’s costs to obtain contracts and related amortization where the amortization period of the assets is greater than one year (in thousands): Year Ended December 31, 2023 2022 2021 Balance at beginning of period $ 1,588 $ 2,039 $ — Costs to obtain contracts capitalized 905 811 2,318 Amortization of capitalized costs (1,685) (1,265) (277) Changes due to exchange rates 68 3 (2) Balance at end of period $ 876 $ 1,588 $ 2,039 |
Accounts Receivable, Allowance for Credit Loss | Activity related to the Company’s allowance for credit losses is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Allowance for credit losses, beginning balance $ (9,531) $ (8,916) $ (10,385) Impact of accounting standard adoption (1) — (841) — Current period provision (4,606) (2,002) (281) Write-offs charged against allowance 4,848 2,351 882 Recoveries of amounts previously written off (96) — — Changes due to exchange rates (165) (123) 868 Allowance for credit losses, ending balance $ (9,550) $ (9,531) $ (8,916) (1) The Company adopted ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, in the first quarter of 2022. |
Property and Equipment Useful Lives | The estimated useful lives, by asset class, are as follows: Office furniture and equipment 7 years Computer equipment 3 years Software, including internal-use software 3 to 5 years Automobiles 7 years Property and equipment consisted of the following (in thousands): As of December 31, 2023 2022 Automobiles $ 59 $ 5 Computer equipment 45,749 46,300 Software, including internal-use 22,277 19,170 Leasehold improvements 24,200 22,245 Office furniture and equipment 6,407 6,561 98,692 94,281 Less: accumulated depreciation and amortization (72,646) (55,483) Property and equipment, net $ 26,046 $ 38,798 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue from External Customers by Geographic Areas | The following table presents the disaggregation of the Company’s revenues by customer location (in thousands): Year Ended December 31, 2023 2022 2021 North America (1) $ 417,571 $ 503,948 $ 396,491 APAC (2) 387,061 419,982 358,596 Europe (3) 280,390 315,875 267,121 LATAM 41,794 56,433 47,737 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 (1) For the years ended December 31, 2023, 2022 and 2021, the United States represented 35.7%, or $402.6 million; 36.6%, or $474.3 million; and 34.8%, or $372.8 million, respectively, of the Company’s total revenues. Canadian operations were determined to be immaterial given the revenues as a percentage of total North America revenues was less than 10% for each of the years. (2) For the years ended December 31, 2023, 2022 and 2021 , Australia represented 10.3% , or $116.4 million , 11.4%, or $148.3 million , and 10.9%, or $116.5 million , respectively, of the Company's total revenues. (3) For the year ended December 31, 2023, revenues in the United Kingdom as a percentage of the Company's total revenues was less than 10%. For the years ended December 31, 2022 and 2021, the United Kingdom represented 10.2%, or $132.6 million; and 10.8%, or $115.2 million, respectively, of the Company’s total revenues. For the years ended December 31, 2023 and 2021, revenues in Germany represented 11.1%, or $125.3 million, and 10.6%, or $113.8 million, respectively, of the Company’s total revenues. For the year ended December 31, 2022, revenues in Germany as a percentage of the Company's total revenues was less than 10%. |
Schedule of Disaggregation of Revenue | The following table presents the disaggregation of the Company’s revenues by industry vertical (in thousands): Year Ended December 31, 2023 2022 2021 Energy, public and health services $ 294,029 $ 316,478 $ 275,279 Technology and business services 279,264 360,117 288,709 Financial services and insurance 197,407 221,748 170,492 Automotive, travel and transportation 179,268 161,164 132,272 Retail and consumer 176,848 236,731 203,193 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 The following table presents the disaggregation of the Company’s revenues by contract type (in thousands): Year Ended December 31, 2023 2022 2021 Time-and-materials $ 895,939 $ 1,085,533 $ 872,271 Fixed-price 230,877 210,705 197,674 Total revenues $ 1,126,816 $ 1,296,238 $ 1,069,945 |
Schedule of Contract Assets and Liabilities | The following table is a summary of the Company’s contract assets and contract liabilities (in thousands): As of December 31, 2023 2022 Contract assets included in unbilled receivables $ 29,981 $ 39,941 Contract liabilities included in deferred revenue $ 18,090 $ 5,167 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The Company's final allocation of the fair value of underlying assets acquired and liabilities assumed as of the acquisition date is as follows (in thousands): Total Cash and cash equivalents $ 1,788 Trade receivables, net of allowance 1,251 Customer relationships, net (1) 3,500 Goodwill 13,766 Accounts payable (110) Accrued compensation (363) Accrued expenses and other current liabilities (1,162) Income taxes payable (178) Lease liabilities, current (173) Deferred tax liabilities (1,050) Other assets/liabilities, net 508 Total gross purchase price $ 17,777 (1) The weighted average amortization period is four years. |
Schedule of Business Acquisitions by Acquisition, Contingent Consideration | The following table presents the change in the contingent consideration liability (in thousands): Year Ended December 31, 2023 2022 Balance at beginning of period $ 14,255 $ — Additions in the period — 13,996 Payments in the period (14,344) — Change in fair value 129 1,027 Change due to exchange rates (40) (768) Balance at end of period $ — $ 14,255 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is a summary of the changes in the carrying value of goodwill (in thousands): Total Balance as of December 31, 2021 $ 346,719 Additions due to acquisitions 71,700 Changes due to exchange rates (13,402) Balance as of December 31, 2022 405,017 Additions due to acquisitions 13,766 Changes due to exchange rates 5,782 Balance as of December 31, 2023 $ 424,565 |
Schedule of Finite-Lived Intangible Assets | The following is a summary of other intangible assets (in thousands): As of December 31, 2023 2022 Customer relationships $ 196,947 $ 193,447 Less accumulated amortization (73,893) (59,369) Customer relationships, net 123,054 134,078 Trademark 273,000 273,000 Total other intangible assets, after amortization 396,054 407,078 Changes due to exchange rates (8,868) (10,031) Other intangible assets, net $ 387,186 $ 397,047 |
Schedule of Indefinite-Lived Intangible Assets | The following is a summary of other intangible assets (in thousands): As of December 31, 2023 2022 Customer relationships $ 196,947 $ 193,447 Less accumulated amortization (73,893) (59,369) Customer relationships, net 123,054 134,078 Trademark 273,000 273,000 Total other intangible assets, after amortization 396,054 407,078 Changes due to exchange rates (8,868) (10,031) Other intangible assets, net $ 387,186 $ 397,047 |
Schedule of Estimated Amortization Expense | As of December 31, 2023, estimated amortization expense for the next five years and thereafter is as follows (in thousands): Total 2024 $ 15,510 2025 15,510 2026 15,510 2027 14,708 2028 14,635 Thereafter 47,181 $ 123,054 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | (Loss)/income before provision for income taxes based on geographic location is as follows (in thousands): Year Ended December 31, 2023 2022 2021 (Loss)/income before provision for income taxes: United States $ 49 $ (48,578) $ (27,630) Foreign (43,179) (25,990) 43,795 Total $ (43,130) $ (74,568) $ 16,165 |
Schedule of Provision (Benefit) for Income Taxes | The provision/(benefit) for income taxes is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Current: Federal $ 6,517 $ 32,746 $ 9,839 State 3,229 9,259 5,071 Foreign 24,136 8,245 24,199 Total current 33,882 50,250 39,109 Deferred: Federal (4,207) (15,379) (9,088) State (947) (3,228) (2,457) Foreign (3,197) (818) (10,824) Total deferred (8,351) (19,425) (22,369) Total income tax expense $ 25,531 $ 30,825 $ 16,740 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the Company’s provision for income taxes to income taxes computed at the U.S. federal statutory income tax rate of 21% is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Provision for income taxes at federal statutory rate $ (9,058) $ (15,659) $ 3,395 Increase/(decrease) in taxes resulting from: Non deductible expenses 810 4,713 3,008 Research and development and foreign tax credits (9,289) (9,419) (16,311) Effect of foreign taxes and foreign exchange rates 1,102 81 5,695 GILTI and related international adjustments 1,667 12,528 8,972 §162(m) limitation on executive compensation 1,146 2,759 7,396 Stock compensation excess tax deficiencies/(benefits) 16,747 2,739 (8,206) China non-deductible stock compensation expense 2,916 15,329 — US state income taxes, net of federal tax benefit 673 3,811 1,072 Change in deferred tax valuation allowance 18,005 11,919 10,060 U.K. rate change 513 (313) 855 Adjustments of prior year estimates and other (3,152) (1,044) (2,330) Adjustments associated with income tax uncertainties 3,451 3,381 3,134 Total income tax expense $ 25,531 $ 30,825 $ 16,740 |
Schedule of Deferred Tax Assets and Liabilities | Deferred Income Taxes The components of the Company’s deferred tax assets and liabilities include the following (in thousands): As of December 31, 2023 2022 Deferred tax assets: Accrued expenses $ 36,129 $ 23,572 Goodwill 379 850 Net operating loss carryforwards 40,632 20,409 Research and development and foreign tax credit carryforwards 1,423 1,350 Allowance for doubtful accounts 2,606 2,772 Fixed assets 2,519 2,526 Stock-based compensation 10,222 22,533 Business interest 11,898 9,685 Other assets 2,128 4,790 Total deferred tax assets 107,936 88,487 Total valuation allowance (47,625) (28,510) Total deferred tax assets $ 60,311 $ 59,977 As of December 31, 2023 2022 Deferred tax liabilities: Unremitted earnings of subsidiaries and unrealized translation gains $ (2,634) $ (2,793) Prepaid expenses (3,652) (3,545) Fixed assets (362) (649) Deferred revenue (445) (460) Customer relationships (30,693) (32,844) Trademark (73,028) (73,028) Internally developed software (1,415) (1,565) Other liabilities (378) (192) Total deferred tax liabilities (112,607) (115,076) Total deferred tax liabilities, net $ (52,296) $ (55,099) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in thousands): Year Ended December 31, 2023 2022 2021 Balance, beginning of year $ 14,990 $ 11,609 $ 8,123 Additions for tax positions related to the current year 1,025 — 2,068 Additions for tax positions related to prior years 7,388 3,424 1,923 Reductions for tax positions related to prior years (23) (43) (505) Statute of limitations expirations (1,520) — — Settlements with tax authorities (3,419) — — Balance, end of year $ 18,441 $ 14,990 $ 11,609 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The estimated useful lives, by asset class, are as follows: Office furniture and equipment 7 years Computer equipment 3 years Software, including internal-use software 3 to 5 years Automobiles 7 years Property and equipment consisted of the following (in thousands): As of December 31, 2023 2022 Automobiles $ 59 $ 5 Computer equipment 45,749 46,300 Software, including internal-use 22,277 19,170 Leasehold improvements 24,200 22,245 Office furniture and equipment 6,407 6,561 98,692 94,281 Less: accumulated depreciation and amortization (72,646) (55,483) Property and equipment, net $ 26,046 $ 38,798 |
Loss Per Common Share (Tables)
Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net (Loss) Income Per Common Share | The components of basic and diluted loss per common share are as follows (in thousands, except share and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net loss $ (68,661) $ (105,393) $ (575) Preferred stock dividends — — (59,642) Net loss allocated to common stockholders $ (68,661) $ (105,393) $ (60,217) Denominator: Weighted average shares outstanding – Basic and diluted 317,718,424 310,911,526 254,271,997 Basic and diluted loss per common share $ (0.22) $ (0.34) $ (0.24) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potentially dilutive securities were excluded from the computation of diluted loss per common share because the impact of including them would have been anti-dilutive: Year Ended December 31, 2023 2022 2021 Employee stock options, RSUs and performance stock units ("PSUs") 22,182,607 26,802,540 23,435,860 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease, Cost | The following table presents total lease cost (in thousands): Year Ended December 31, 2023 2022 Operating lease cost $ 21,275 $ 19,818 Variable lease cost 4,026 2,908 Short-term lease cost 621 614 Total lease cost $ 25,922 $ 23,340 The following table presents supplemental cash flow information (in thousands): Year Ended December 31, 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 21,466 $ 19,779 ROU assets obtained in exchange for new operating lease liabilities $ 16,344 $ 21,819 Non-cash net decrease due to lease modifications: Operating lease ROU assets $ (2,326) $ — Operating lease liabilities $ (1,850) $ — The following table presents average lease terms and discount rates: As of December 31, 2023 2022 Weighted-average remaining operating lease term (years) 4.2 4.7 Weighted average operating lease discount rate 5.9 % 5.3 % |
Schedule of Future Lease Payments | As of December 31, 2023, the aggregate future lease payments under all operating leases are as follows (in thousands): Operating 2024 $ 17,411 2025 12,123 2026 8,094 2027 4,377 2028 2,736 Thereafter 5,908 Total lease payments 50,649 Less: imputed interest 5,567 Present value of lease liabilities $ 45,082 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Components of Stock-based Compensation Expense | The following is a summary of the components of stock-based compensation expense for the periods indicated (in thousands): Year Ended December 31, 2023 2022 2021 Cost of revenues $ 38,981 $ 176,046 $ 60,678 Selling, general and administrative expenses 25,848 73,869 67,624 Restructuring 197 — — Total stock-based compensation expense $ 65,026 $ 249,915 $ 128,302 |
Schedule of Option Activity | The following is a summary of performance and time vesting stock option activity for the year ended December 31, 2023 (in thousands, except share and per share data): Number of Stock Options Weighted Average Exercise Price Aggregate Weighted- Balance at December 31, 2022 21,607,562 $ 3.83 Granted — — Forfeited (579,649) 10.88 Exercised (2,432,182) 2.70 Cancelled — — Expired — — Balance at December 31, 2023 18,595,731 $ 3.76 $ 36,016 4.5 Exercisable at December 31, 2023 18,213,108 $ 3.60 $ 36,016 4.5 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the weighted-average assumptions used in estimating the fair value of stock options granted to employees: Year Ended December 31, 2021 (1) Risk-free interest rate 0.1 % Dividend yield — % Expected volatility 55.0 % Expected term (years) 1 (1) The risk-free interest rate is based on the rates of U.S. Treasury securities with a maturity similar to the term to liquidity, continuously compounded. The expected equity volatility is estimated based on an analysis of guideline public companies’ historical volatility. As these stock options were awarded prior to the IPO, the expected term was estimated based on management’s assumptions of time to a liquidity event. |
Schedule of Restricted Stock Units Activity | The following is a summary of RSU activity for the year ended December 31, 2023: Number of RSUs Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 13,013,946 $ 17.37 Granted 8,323,470 4.04 Forfeited (1,995,186) 16.68 Vested (1) (6,005,401) 20.03 Unvested balance at December 31, 2023 13,336,829 $ 7.96 (1) Includes 1.7 million shares that were net settled when released and returned to the share pool for future grants. |
Share-based Payment Arrangement, Performance Shares, Activity | The following is a summary of PSU activity for the year ended December 31, 2023: Number of PSUs Weighted Average Grant Date Fair Value Unvested balance at December 31, 2022 76,697 $ 20.11 Granted (1) 737,483 8.44 Adjustment for PSUs expected to vest as of current period end (718,483) 8.21 Forfeited (7,565) 12.33 Vested — — Unvested balance at December 31, 2023 88,132 $ 20.11 (1) Reflects shares granted at 100%. |
Credit Agreements (Tables)
Credit Agreements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Credit Facilities | The following table presents the Company's outstanding debt and borrowing capacity (in thousands): As of December 31, 2023 2022 Availability under revolving credit facility (due March 26, 2026) $ 300,000 $ 300,000 Borrowings under revolving credit facility — — Long-term debt (due March 24, 2028), including current portion (1) 293,185 399,006 Interest rate 8.0 % 6.9 % (1) The balance includes deferred financing fees. A reconciliation of gross to net amounts is presented below. The carrying value of the Company’s credit facilities (including current maturities) is as follows (in thousands): As of December 31, 2023 2022 Long-term debt, less current portion $ 288,188 $ 395,338 Capitalized deferred financing fees (2,153) (3,482) Long-term debt 286,035 391,856 Current portion of long-term debt 7,150 7,150 Total debt carrying value $ 293,185 $ 399,006 |
Schedule of Future Cash Payments For Term Loan | As of December 31, 2023, the Company’s future principal cash payments for the Term Loan are as follows (in thousands): Total 2024 $ 7,150 2025 7,150 2026 7,150 2027 7,150 2028 266,738 Total future principal cash payments $ 295,338 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | The following is a summary of the Company’s accrued expenses and other current liabilities (in thousands): As of December 31, 2023 2022 Contingent consideration $ — $ 14,255 Value-added tax and sales tax payable 4,821 7,526 Restructuring 3,503 — Other accrued expenses 13,830 15,972 Accrued expenses and other current liabilities $ 22,154 $ 37,753 |
Restructuring Actions (Tables)
Restructuring Actions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring | The table below summarizes the activities related to the restructuring for the year ended December 31, 2023 (in thousands): Wage-related expenses Non-wage related expenses Total Liability as of December 31, 2022 $ — $ — $ — Charges 17,244 1,700 18,944 Payments (13,913) (684) (14,597) Non-cash items (1) (197) (647) (844) Liability as of December 31, 2023 $ 3,134 $ 369 $ 3,503 (1) Wage-related expenses includes stock-based compensation expense. Non-wage related expenses includes charges related to reducing leased office space. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated balance for each component of accumulated other comprehensive loss (in thousands): Year Ended December 31, 2023 2022 2021 Foreign currency translation: Beginning balance $ (39,210) $ (10,844) $ (1,574) Foreign currency translation gain/(loss) 2,859 (31,569) (8,221) Income tax (expense) benefit (1,815) 3,203 (1,049) Foreign currency translation, net of tax 1,044 (28,366) (9,270) Ending balance (38,166) (39,210) (10,844) Accumulated other comprehensive loss $ (38,166) $ (39,210) $ (10,844) |
Business and Summary of Signi_4
Business and Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | |||
Number of operating segments | segment | 1 | ||
Advertising costs | $ 5,000,000 | $ 4,100,000 | $ 2,300,000 |
Depreciation | 21,900,000 | 21,300,000 | 17,500,000 |
Fixed assets | 26,046,000 | 38,798,000 | |
Goodwill impairment | 0 | 0 | |
Intangible asset impairment | 0 | 0 | |
Deferred financing fees | $ 2,500,000 | 1,600,000 | $ 1,600,000 |
Performance Shares | |||
Concentration Risk [Line Items] | |||
Service period | 3 years | ||
Cost of revenues | |||
Concentration Risk [Line Items] | |||
Government subsidies | $ 1,300,000 | $ 1,300,000 | |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of revenues | Cost of revenues | |
Selling, general and administrative expenses | |||
Concentration Risk [Line Items] | |||
Government subsidies | $ 1,300,000 | $ 700,000 | |
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling, general and administrative expenses | Selling, general and administrative expenses | |
Non-US | |||
Concentration Risk [Line Items] | |||
Fixed assets | $ 18,700,000 | $ 30,000,000 | |
Non-US | Revenue | Geographic concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk | 66% | 63% | 65% |
Non-US | Accounts receivable | Geographic concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk | 75% | 69% | |
Internally developed software | |||
Concentration Risk [Line Items] | |||
Depreciation | $ 5,800,000 | $ 4,700,000 | $ 2,200,000 |
Fixed assets | 5,900,000 | 6,500,000 | |
Secured debt | Term Loan | |||
Concentration Risk [Line Items] | |||
Fair value of Term Loan | $ 294,000,000 | $ 392,000,000 | |
Minimum | |||
Concentration Risk [Line Items] | |||
Accounts receivable, payment terms | 30 days | ||
Service period | 1 year | ||
Minimum | Internally developed software | |||
Concentration Risk [Line Items] | |||
Estimated useful lives | 3 years | ||
Minimum | Customer relationships | |||
Concentration Risk [Line Items] | |||
Estimated useful lives | 4 years | ||
Maximum | |||
Concentration Risk [Line Items] | |||
Accounts receivable, payment terms | 90 days | ||
Service period | 4 years | ||
Maximum | Internally developed software | |||
Concentration Risk [Line Items] | |||
Estimated useful lives | 5 years | ||
Maximum | Customer relationships | |||
Concentration Risk [Line Items] | |||
Estimated useful lives | 15 years |
Business and Summary of Signi_5
Business and Summary of Significant Accounting Policies - Schedule of Long-lived Assets by Geographic Location (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 67,817 | $ 81,921 |
Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 100% | 100% |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 14,582 | $ 18,205 |
United States | Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 21.50% | 22.20% |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 13,052 | $ 13,606 |
Germany | Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 19.20% | 16.60% |
India | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,793 | $ 14,457 |
India | Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 15.90% | 17.60% |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 10,616 | $ 12,160 |
China | Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 15.70% | 14.90% |
All other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 18,774 | $ 23,493 |
All other | Noncurrent asset | Geographic concentration risk | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Concentration risk | 27.70% | 28.70% |
Business and Summary of Signi_6
Business and Summary of Significant Accounting Policies - Schedule of Capitalized Contract Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capitalized Contract Cost [Roll Forward] | |||
Capitalized contract cost, beginning balance | $ 1,588 | $ 2,039 | $ 0 |
Costs to obtain contracts capitalized | 905 | 811 | 2,318 |
Amortization of capitalized costs | (1,685) | (1,265) | (277) |
Changes due to exchange rates | 68 | 3 | (2) |
Capitalized contract cost, ending balance | $ 876 | $ 1,588 | $ 2,039 |
Business and Summary of Signi_7
Business and Summary of Significant Accounting Policies - Schedule Of Allowance For Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ (9,531) | $ (8,916) | $ (10,385) |
Current period provision | (4,606) | (2,002) | (281) |
Write-offs charged against allowance | 4,848 | 2,351 | 882 |
Recoveries of amounts previously written off | (96) | 0 | 0 |
Changes due to exchange rates | (165) | (123) | 868 |
Ending balance | (9,550) | (9,531) | (8,916) |
Cumulative effect related to adoption of ASU 2016-13 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 0 | (841) | 0 |
Ending balance | $ 0 | $ (841) |
Business and Summary of Signi_8
Business and Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment, Useful Lives (Details) | Dec. 31, 2023 |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Computer equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software, including internal-use | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Software, including internal-use | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Automobiles | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) industryVertical | Dec. 31, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of industry verticals | industryVertical | 5 | |
Revenue recognized | $ | $ 5 | $ 13.7 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Revenue by Geographical Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,126,816 | $ 1,296,238 | $ 1,069,945 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 417,571 | 503,948 | 396,491 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 402,600 | $ 474,300 | $ 372,800 |
United States | Revenue | Geographic concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 35.70% | 36.60% | 34.80% |
APAC | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 387,061 | $ 419,982 | $ 358,596 |
Australia | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 116,400 | $ 148,300 | $ 116,500 |
Australia | Revenue | Geographic concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 10.30% | 11.40% | 10.90% |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 280,390 | $ 315,875 | $ 267,121 |
United Kingdom | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 132,600 | $ 115,200 | |
United Kingdom | Revenue | Geographic concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 10.20% | 10.80% | |
Germany | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 125,300 | $ 113,800 | |
Germany | Revenue | Geographic concentration risk | |||
Disaggregation of Revenue [Line Items] | |||
Concentration risk | 11.10% | 10.60% | |
LATAM | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 41,794 | $ 56,433 | $ 47,737 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Revenue by Industry Vertical (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,126,816 | $ 1,296,238 | $ 1,069,945 |
Energy, public and health services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 294,029 | 316,478 | 275,279 |
Technology and business services | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 279,264 | 360,117 | 288,709 |
Financial services and insurance | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 197,407 | 221,748 | 170,492 |
Automotive, travel and transportation | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 179,268 | 161,164 | 132,272 |
Retail and consumer | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 176,848 | $ 236,731 | $ 203,193 |
Revenue Recognition - Schedul_3
Revenue Recognition - Schedule of Revenue by Contract Type (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 1,126,816 | $ 1,296,238 | $ 1,069,945 |
Time-and-materials | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 895,939 | 1,085,533 | 872,271 |
Fixed-price | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 230,877 | $ 210,705 | $ 197,674 |
Revenue Recognition - Schedul_4
Revenue Recognition - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets included in unbilled receivables | $ 29,981 | $ 39,941 |
Contract liabilities included in deferred revenue | $ 18,090 | $ 5,167 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
May 04, 2023 | Feb. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 26, 2022 | |
Business Acquisition [Line Items] | ||||||
Acquisitions, net of cash acquired | $ 15,989 | $ 70,011 | $ 44,759 | |||
ITOC Pty Ltd | ||||||
Business Acquisition [Line Items] | ||||||
Gross purchase price | $ 17,800 | |||||
Acquisitions, net of cash acquired | 16,000 | |||||
Cash acquired from acquisition | $ 1,800 | |||||
Acquisition related costs | 4,600 | |||||
Connected | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration liability | 0 | 14,255 | $ 0 | $ 14,000 | ||
Payments in the period | $ 14,300 | $ 14,344 | $ 0 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition (Details) - USD ($) $ in Thousands | Feb. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 424,565 | $ 405,017 | $ 346,719 | |
ITOC Pty Ltd | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 1,788 | |||
Trade receivables, net of allowance | 1,251 | |||
Customer relationships, net | 3,500 | |||
Goodwill | 13,766 | |||
Accounts payable | (110) | |||
Accrued compensation | (363) | |||
Accrued expenses and other current liabilities | (1,162) | |||
Income taxes payable | (178) | |||
Lease liabilities, current | (173) | |||
Deferred tax liabilities | (1,050) | |||
Other assets/liabilities, net | 508 | |||
Total gross purchase price | $ 17,777 | |||
Weighted average useful life | 4 years |
Acquisitions - Schedule of Busi
Acquisitions - Schedule of Business Acquisitions by Acquisition, Contingent Consideration (Details) - Connected - USD ($) $ in Thousands | 12 Months Ended | ||
May 04, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Business Acquisition, Contingent Consideration [Roll Forward] | |||
Balance at beginning of period | $ 14,255 | $ 0 | |
Additions in the period | 0 | 13,996 | |
Payments in the period | $ (14,300) | (14,344) | 0 |
Change in fair value | 129 | 1,027 | |
Change due to exchange rates | (40) | (768) | |
Balance at end of period | $ 0 | $ 14,255 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 405,017 | $ 346,719 |
Additions due to acquisitions | 13,766 | 71,700 |
Changes due to exchange rates | 5,782 | (13,402) |
Ending balance | $ 424,565 | $ 405,017 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, net | $ 123,054 | |
Trademark | 273,000 | $ 273,000 |
Total other intangible assets, after amortization | 396,054 | 407,078 |
Changes due to exchange rates | (8,868) | (10,031) |
Customer relationships, net | 387,186 | 397,047 |
Trademark | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademark | 273,000 | 273,000 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer relationships | 196,947 | 193,447 |
Less accumulated amortization | (73,893) | (59,369) |
Finite-lived intangible assets, net | $ 123,054 | $ 134,078 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Weighted average remaining useful life | 8 years 1 month 6 days | 9 years 2 months 12 days | |
Amortization of intangible assets | $ 14.5 | $ 13.1 | $ 12 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 15,510 |
2025 | 15,510 |
2026 | 15,510 |
2027 | 14,708 |
2028 | 14,635 |
Thereafter | 47,181 |
Finite-lived intangible assets, net | $ 123,054 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income (Loss) Before Income Tax Provision by Geographical Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 49 | $ (48,578) | $ (27,630) |
Foreign | (43,179) | (25,990) | 43,795 |
(Loss) income before income taxes | $ (43,130) | $ (74,568) | $ 16,165 |
Income Taxes - Schedule of In_2
Income Taxes - Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 6,517 | $ 32,746 | $ 9,839 |
State | 3,229 | 9,259 | 5,071 |
Foreign | 24,136 | 8,245 | 24,199 |
Total current | 33,882 | 50,250 | 39,109 |
Deferred: | |||
Federal | (4,207) | (15,379) | (9,088) |
State | (947) | (3,228) | (2,457) |
Foreign | (3,197) | (818) | (10,824) |
Total deferred | (8,351) | (19,425) | (22,369) |
Income tax expense | $ 25,531 | $ 30,825 | $ 16,740 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Provision for Income Taxes to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes at federal statutory rate | $ (9,058) | $ (15,659) | $ 3,395 |
Non deductible expenses | 810 | 4,713 | 3,008 |
Research and development and foreign tax credits | (9,289) | (9,419) | (16,311) |
Effect of foreign taxes and foreign exchange rates | 1,102 | 81 | 5,695 |
GILTI and related international adjustments | 1,667 | 12,528 | 8,972 |
§162(m) limitation on executive compensation | 1,146 | 2,759 | 7,396 |
Stock compensation excess tax deficiencies/(benefits) | 16,747 | 2,739 | (8,206) |
China non-deductible stock compensation expense | 2,916 | 15,329 | 0 |
US state income taxes, net of federal tax benefit | 673 | 3,811 | 1,072 |
Change in deferred tax valuation allowance | 18,005 | 11,919 | 10,060 |
U.K. rate change | 513 | (313) | 855 |
Adjustments of prior year estimates and other | (3,152) | (1,044) | (2,330) |
Adjustments associated with income tax uncertainties | 3,451 | 3,381 | 3,134 |
Income tax expense | $ 25,531 | $ 30,825 | $ 16,740 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Accrued expenses | $ 36,129 | $ 23,572 |
Goodwill | 379 | 850 |
Net operating loss carryforwards | 40,632 | 20,409 |
Research and development and foreign tax credit carryforwards | 1,423 | 1,350 |
Allowance for doubtful accounts | 2,606 | 2,772 |
Fixed assets | 2,519 | 2,526 |
Stock-based compensation | 10,222 | 22,533 |
Business interest | 11,898 | 9,685 |
Other assets | 2,128 | 4,790 |
Total deferred tax assets | 107,936 | 88,487 |
Total valuation allowance | (47,625) | (28,510) |
Total deferred tax assets | 60,311 | 59,977 |
Deferred tax liabilities: | ||
Unremitted earnings of subsidiaries and unrealized translation gains | (2,634) | (2,793) |
Prepaid expenses | (3,652) | (3,545) |
Fixed assets | (362) | (649) |
Deferred revenue | (445) | (460) |
Internally developed software | (1,415) | (1,565) |
Other liabilities | (378) | (192) |
Total deferred tax liabilities | (112,607) | (115,076) |
Total deferred tax liabilities, net | (52,296) | (55,099) |
Trademark | ||
Deferred tax liabilities: | ||
Intangible assets | (73,028) | (73,028) |
Customer relationships | ||
Deferred tax liabilities: | ||
Intangible assets | $ (30,693) | $ (32,844) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Valuation allowance | $ 47,625 | $ 28,510 | |
Deferred tax liability, foreign withholding taxes | 1,800 | 2,100 | |
Foreign currency translation on previously-taxed earnings | 1,500 | 3,300 | |
Unrecognized tax benefits that would impact effective tax rate | 17,800 | 14,500 | $ 11,300 |
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | 700 | 400 | 300 |
Unrecognized tax benefits, income tax penalties and interest accrued | 2,700 | 2,000 | $ 1,600 |
Separate U.S. federal net operating loss carryforwards and federal limitation of business interest | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Valuation allowance | 16,400 | 13,100 | |
Certain foreign tax credits | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Valuation allowance | 1,000 | 1,000 | |
Foreign tax authority | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Valuation allowance | 30,300 | 14,500 | |
Net operating loss carryforward benefits | 146,000 | 68,200 | |
Domestic tax authority | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Net operating loss carryforward benefits | 21,600 | 14,100 | |
State and local jurisdiction | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Net operating loss carryforward benefits | $ 100 | $ 100 | |
State and local jurisdiction | Minimum | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Operating loss carryforward, expiration period | 10 years | ||
State and local jurisdiction | Maximum | |||
Investments, Owned, Federal Income Tax Note [Line Items] | |||
Operating loss carryforward, expiration period | 20 years |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, beginning of year | $ 14,990 | $ 11,609 | $ 8,123 |
Additions for tax positions related to the current year | 1,025 | 0 | 2,068 |
Additions for tax positions related to prior years | 7,388 | 3,424 | 1,923 |
Reductions for tax positions related to prior years | (23) | (43) | (505) |
Statute of limitations expirations | (1,520) | 0 | 0 |
Settlements with tax authorities | (3,419) | 0 | 0 |
Balance, end of year | $ 18,441 | $ 14,990 | $ 11,609 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 98,692 | $ 94,281 |
Less: accumulated depreciation and amortization | (72,646) | (55,483) |
Property and equipment, net | 26,046 | 38,798 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 59 | 5 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 45,749 | 46,300 |
Software, including internal-use | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 22,277 | 19,170 |
Property and equipment, net | 5,900 | 6,500 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 24,200 | 22,245 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,407 | $ 6,561 |
Property and Equipment, net - N
Property and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization | $ 21.9 | $ 21.3 | $ 17.5 |
Loss Per Common Share - Schedul
Loss Per Common Share - Schedule of (Loss) Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss | $ (68,661) | $ (105,393) | $ (575) |
Preferred stock dividends | 0 | 0 | (59,642) |
Net loss allocated to common stockholders | $ (68,661) | $ (105,393) | $ (60,217) |
Denominator: | |||
Weighted average shares outstanding – Basic (in shares) | 317,718,424 | 310,911,526 | 254,271,997 |
Weighted average shares outstanding – Diluted (in shares) | 317,718,424 | 310,911,526 | 254,271,997 |
Basic loss per common share (in dollars per share) | $ (0.22) | $ (0.34) | $ (0.24) |
Diluted loss per common share (in dollars per share) | $ (0.22) | $ (0.34) | $ (0.24) |
Loss Per Common Share - Sched_2
Loss Per Common Share - Schedule of Antidilutive Securities Excluded From Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee stock options, RSUs and performance stock units ("PSUs") | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of Earnings Per Share (in shares) | 22,182,607 | 26,802,540 | 23,435,860 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease not yet commenced | $ 2.7 | |
Operating leases, rent expense | $ 19.4 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease not yet commenced, term of contract | 6 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease not yet commenced, term of contract | 5 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 21,275 | $ 19,818 |
Variable lease cost | 4,026 | 2,908 |
Short-term lease cost | 621 | 614 |
Total lease cost | $ 25,922 | $ 23,340 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 21,466 | $ 19,779 |
ROU assets obtained in exchange for new operating lease liabilities | 16,344 | 21,819 |
Non-cash net decrease due to lease modifications: | ||
Operating lease ROU assets | (2,326) | 0 |
Operating lease liabilities | $ (1,850) | $ 0 |
Weighted-average remaining operating lease term (years) | 4 years 2 months 12 days | 4 years 8 months 12 days |
Weighted average operating lease discount rate | 5.90% | 5.30% |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating Lease Liability Maturity (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 17,411 |
2025 | 12,123 |
2026 | 8,094 |
2027 | 4,377 |
2028 | 2,736 |
Thereafter | 5,908 |
Total lease payments | 50,649 |
Less: imputed interest | 5,567 |
Present value of lease liabilities | $ 45,082 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | Sep. 17, 2021 $ / shares shares | Sep. 16, 2021 | Dec. 31, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares |
Equity [Abstract] | ||||
Conversion of convertible securities, before stock split (in shares) | 1,365,058 | |||
Stock split, conversion ratio | 43.6 | |||
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock redesignated (in shares) | 5,259,163 | |||
Stock redesignation, conversion ratio | 1 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 | ||
Common stock, shares outstanding (in shares) | 322,407,385 | 315,681,987 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, shares reserved for future issuance (in shares) | 77,304,732 | ||
Stock-based compensation income tax expense (benefit) | $ 20,900 | $ 20,600 | $ (800) |
Options, intrinsic value | $ 9,200 | 29,600 | $ 24,900 |
Options, weighted average grand date fair value (in USD per share) | $ 10.32 | ||
Time Vesting Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Contractual term | 10 years | ||
Company repurchase, exercisable period | 48 months | ||
Compensation costs not yet recognized | $ 3,000 | ||
Compensation costs, weighted average period of recognition | 1 year 2 months 12 days | ||
Time Vesting Shares | Tranche One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 37.50% | ||
Service period | 18 months | ||
Time Vesting Shares | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Four | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Five | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Six | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Seven | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Eight | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Nine | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Ten | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Tranche Eleven | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 6.25% | ||
Service period | 3 months | ||
Time Vesting Shares | Vesting Upon Change Of Control | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance vesting option | 100% | ||
RSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Compensation costs not yet recognized | $ 99,700 | ||
Compensation costs, weighted average period of recognition | 2 years 8 months 12 days | ||
Compensation costs, (other than options) not yet recognized | $ 32,400 | $ 189,600 | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Service period | 3 years | ||
Compensation costs, weighted average period of recognition | 1 year 8 months 12 days | ||
Compensation costs, (other than options) not yet recognized | $ 4,600 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 65,026 | $ 249,915 | $ 128,302 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 38,981 | 176,046 | 60,678 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 25,848 | 73,869 | 67,624 |
Restructuring | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 197 | $ 0 | $ 0 |
Stock-Based Compensation- Sched
Stock-Based Compensation- Schedule of Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) $ / shares shares | |
Number of Stock Options | |
Beginning balance (in shares) | shares | 21,607,562 |
Granted (in shares) | shares | 0 |
Forfeited (in shares) | shares | (579,649) |
Exercised (in shares) | shares | (2,432,182) |
Cancelled (in shares) | shares | 0 |
Expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 18,595,731 |
Exercisable (in shares) | shares | 18,213,108 |
Weighted Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 3.83 |
Granted (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 10.88 |
Exercised (in dollars per share) | $ / shares | 2.70 |
Cancelled (in dollars per share) | $ / shares | 0 |
Expired (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | 3.76 |
Weighted average exercise price, Exercisable (in dollars per share) | $ / shares | $ 3.60 |
Aggregate Intrinsic Value and Weighted-Average Remaining Contractual Term (years) | |
Aggregate Intrinsic Value | $ | $ 36,016 |
Aggregate Intrinsic Value, Exercisable | $ | $ 36,016 |
Weighted average Period of recognition | 4 years 6 months |
Weighted average remaining contractual term, exercisable | 4 years 6 months |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Valuation Assumptions (Details) - Employee stock options, RSUs and performance stock units ("PSUs") | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate | 0.10% |
Dividend yield | 0% |
Expected volatility | 55% |
Expected term (years) | 1 year |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Restricted Stock Units Activity (Details) - RSU's | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of RSUs | |
Beginning balance (in shares) | 13,013,946 |
Granted (in shares) | 8,323,470 |
Forfeited (in shares) | (1,995,186) |
Vested (in shares) | (6,005,401) |
Ending balance (in shares) | 13,336,829 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 17.37 |
Granted (in dollars per share) | $ / shares | 4.04 |
Forfeited (in dollars per share) | $ / shares | 16.68 |
Vested (in dollars per share) | $ / shares | 20.03 |
Ending balance (in dollars per share) | $ / shares | $ 7.96 |
Net settled shares (in shares) | 1,700,000 |
Stock-Based Compensation - Sc_4
Stock-Based Compensation - Schedule of Performance Based Stock Activity (Details) - Performance Shares | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of PSUs | |
Beginning balance (in shares) | shares | 76,697 |
Granted (in shares) | shares | 737,483 |
Adjustment for PSUs expected to vest as of current period end (in shares) | shares | (718,483) |
Forfeited (in shares) | shares | (7,565) |
Vested (in shares) | shares | 0 |
Ending balance (in shares) | shares | 88,132 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 20.11 |
Granted (in dollars per share) | $ / shares | 8.44 |
Adjustment for PSUs expected to vest as of current period end (in dollars per share) | $ / shares | 8.21 |
Forfeited (in dollars per share) | $ / shares | 12.33 |
Vested (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 20.11 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
United States | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer discretionary contribution | $ 3.8 | $ 4.1 | $ 3.1 |
Foreign Plan | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer discretionary contribution | $ 7.2 | $ 6.6 | $ 5.4 |
Credit Agreements - Narrative (
Credit Agreements - Narrative (Details) - USD ($) | 12 Months Ended | |||||
Feb. 24, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 09, 2022 | Mar. 26, 2021 | Mar. 25, 2021 | |
Debt Instrument [Line Items] | ||||||
Write off of deferred financing fees | $ 900,000 | |||||
Credit Agreements | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs, gross | $ 100,000 | $ 3,600,000 | ||||
Credit Agreements | Secured debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 715,000,000 | |||||
Installment payments, percent of original principal amount | 1% | |||||
Revolving Credit Facility | Credit Agreements | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 165,000,000 | $ 85,000,000 | |
Secured debt | Credit Agreements | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 100,000,000 |
Credit Agreements - Schedule of
Credit Agreements - Schedule of Borrowings (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 09, 2022 | Mar. 26, 2021 | Mar. 25, 2021 | |
Debt Instrument [Line Items] | |||||
Long-term debt (due March 24, 2028), including current portion | $ 293,185,000 | $ 399,006,000 | |||
Interest rate | 8% | 6.90% | |||
Line of Credit | Credit Agreements | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Availability under revolving credit facility (due March 26, 2026) | $ 300,000,000 | $ 300,000,000 | $ 300,000,000 | $ 165,000,000 | $ 85,000,000 |
Borrowings under revolving credit facility | $ 0 | $ 0 |
Credit Agreements - Schedule _2
Credit Agreements - Schedule of Credit Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Long-term debt, less current portion | $ 288,188 | $ 395,338 |
Capitalized deferred financing fees | (2,153) | (3,482) |
Long-term debt | 286,035 | 391,856 |
Current portion of long-term debt | 7,150 | 7,150 |
Total debt carrying value | $ 293,185 | $ 399,006 |
Credit Agreements - Schedule _3
Credit Agreements - Schedule of Future Cash Payments for Term Loan (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2024 | $ 7,150 |
2025 | 7,150 |
2026 | 7,150 |
2027 | 7,150 |
2028 | 266,738 |
Total future principal cash payments | $ 295,338 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Contingent consideration | $ 0 | $ 14,255 |
Value-added tax and sales tax payable | 4,821 | 7,526 |
Restructuring | 3,503 | 0 |
Other accrued expenses | 13,830 | 15,972 |
Accrued expenses and other current liabilities | $ 22,154 | $ 37,753 |
Restructuring Actions - Narrati
Restructuring Actions - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 08, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 18,944 | $ 0 | $ 0 | |
Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 18,944 | |||
Reorganization | Wage-related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 17,244 | |||
Reorganization | Non-wage related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 1,700 | |||
Minimum | Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | $ 20,000 | |||
Minimum | Reorganization | Wage-related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | 18,000 | |||
Minimum | Reorganization | Non-wage related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | 2,000 | |||
Maximum | Reorganization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | 25,000 | |||
Maximum | Reorganization | Wage-related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | 22,000 | |||
Maximum | Reorganization | Non-wage related expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected restructuring costs | $ 3,000 |
Restructuring Actions - Schedul
Restructuring Actions - Schedule of Restructuring (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring Reserve [Roll Forward] | |||
Charges | $ 18,944 | $ 0 | $ 0 |
Reorganization | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 0 | ||
Charges | 18,944 | ||
Payments | (14,597) | ||
Non-cash items | (844) | ||
Liability, ending balance | 3,503 | 0 | |
Wage-related expenses | Reorganization | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 0 | ||
Charges | 17,244 | ||
Payments | (13,913) | ||
Non-cash items | (197) | ||
Liability, ending balance | 3,134 | 0 | |
Non-wage related expenses | Reorganization | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning balance | 0 | ||
Charges | 1,700 | ||
Payments | (684) | ||
Non-cash items | (647) | ||
Liability, ending balance | $ 369 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 778,222 | $ 701,957 | $ 484,770 |
Foreign currency translation adjustments | 1,044 | (28,366) | (9,270) |
Ending balance | 773,130 | 778,222 | 701,957 |
Accumulated other comprehensive loss | (38,166) | (39,210) | (10,844) |
Foreign Currency Translation | |||
Increase (Decrease in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (39,210) | (10,844) | (1,574) |
Foreign currency translation gain/(loss) | 2,859 | (31,569) | (8,221) |
Income tax (expense) benefit | (1,815) | 3,203 | (1,049) |
Foreign currency translation adjustments | 1,044 | (28,366) | (9,270) |
Ending balance | $ (38,166) | $ (39,210) | $ (10,844) |