v3.23.2
Revenues, net
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenues, net Revenues, net
Refer to Note 3 - Segment and Geographical Information to the unaudited consolidated financial statements for revenues disaggregated by reportable segments and geography.

Contract balances
The following table provides information about accounts receivable, contract assets and contract liabilities from contracts with customers:
As of
June 30, 2023December 31, 2022
Accounts receivable, net$288,305 $259,222 
Contract assets$7,632 $2,768 
Contract liabilities:
Deferred revenue (consideration received in advance)$18,909 $17,079 
Consideration received for process transition activities$9,122 $5,423 

Accounts receivable includes $148,370 and $126,027 as of June 30, 2023 and December 31, 2022, respectively, representing unbilled receivables. The Company has accrued the unbilled receivables for work performed in accordance with the terms of contracts with customers and considers no significant performance risk associated with its unbilled receivables.

Contract assets represent upfront payments such as deal signing discounts or deal signing bonuses made to customers. These costs are amortized over the expected period of the benefit and are recorded as an adjustment to transaction price and reduced from revenues. The Company’s assessment did not indicate any impairment losses on its contract assets for the periods presented.

Contract liabilities represent that portion of deferred revenue for which payments have been received in advance from customers. The Company also defers revenues attributable to certain process transition activities for which costs have been capitalized by the Company as contract fulfillment costs. Consideration received from customers, if any, relating to such transition activities are classified under contract liabilities and are included within “Deferred revenues” and “Other non-current liabilities” in the consolidated balance sheets. The revenues are recognized as (or when) the performance obligation is fulfilled under the contract with customer.

Revenue recognized during the three and six months ended June 30, 2023 and 2022, which was included in the contract liabilities balance at the beginning of the respective periods:

Three months ended June 30,Six months ended June 30,
2023202220232022
Deferred revenue (consideration received in advance)$2,990 $4,306 $15,992 $13,870 
Consideration received for process transition activities$305 $298 $1,008 $664 
Contract acquisition and fulfillment costs

The following table provides details of the Company’s contract acquisition and fulfillment costs:
Contract Acquisition Costs
Three months endedSix months endedYear ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022December 31, 2022
Opening Balance$1,994 $927 $1,095 $511 $511 
Additions397 180 1,476 727 1,014 
Amortization(208)(124)(388)(255)(430)
Closing Balance$2,183 $983 $2,183 $983 $1,095 

Contract Fulfillment Costs
Three months endedSix months endedYear ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022December 31, 2022
Opening Balance$17,873 $7,435 $13,871 $5,795 $5,795 
Additions4,225 3,308 8,843 5,485 15,509 
Amortization(653)(576)(1,269)(1,113)(7,433)
Closing Balance$21,445 $10,167 $21,445 $10,167 $13,871 

There was no impairment for contract acquisition and contract fulfillment costs as of June 30, 2023 and December 31, 2022. The capitalized costs are amortized over the expected period of benefit of the contract.

Allowance for expected credit losses

The Company evaluates the credit risk of its customers based on a combination of various financial and qualitative factors that may affect the ability of each customer to pay. The Company considered current and anticipated future economic conditions relating to the industries of the Company’s customers and the countries where it operates. In calculating expected credit loss, the Company also considered past payment trends, credit rating and other related credit information for its significant customers to estimate the probability of default in the future.

As of
June 30, 2023December 31, 2022
Accounts receivable, including unbilled receivables$290,105 $260,554 
Less: Allowance for expected credit losses(1,800)(1,332)
Accounts receivable, net$288,305 $259,222 
The movement in “Allowance for expected credit losses” on customer balances was as follows:

Three months endedSix months endedYear ended
June 30, 2023June 30, 2022June 30, 2023June 30, 2022December 31, 2022
Opening Balance$1,671 $588 $1,332 $573 $573 
Additions134 571 477 743 815 
Reductions due to write-off of Accounts Receivables(5)(314)(8)(472)(60)
Currency translation adjustments— (1)(1)— 4 
Closing Balance$1,800 $844 $1,800 $844 $1,332 

Concentration of credit risk
To reduce credit risk, the Company conducts ongoing credit evaluations of its customers. No customer accounted for more than 10% of accounts receivable, net, as of June 30, 2023 and December 31, 2022.