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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-based compensation expense by nature of function, as below, are included in the unaudited consolidated statements of income:
 Three months ended June 30,Six months ended June 30,
 2024202320242023
Cost of revenues$3,858 $3,341 $7,807 $6,907 
General and administrative expenses7,234 3,210 14,121 9,035 
Selling and marketing expenses7,003 4,960 14,019 9,976 
Total$18,095 $11,511 $35,947 $25,918 
Income tax benefit related to share-based compensation (1)
$(4,619)$2,789 $(9,977)$12,619 
(1) Includes $18 and $190 during the three months ended June 30, 2024 and 2023, respectively, and $7,541 and $12,710 during the six months ended June 30, 2024 and 2023, respectively, related to discrete benefits recognized in income tax expense in accordance with ASU No. 2016-09, Compensation - Stock Compensation.

As of June 30, 2024 and December 31, 2023, the Company had 1,684,495 and 4,096,102 shares, respectively, available for grant under the 2018 Omnibus Incentive Plan.

Stock Options

During the three and six months ended June 30, 2024, there was no stock option activity under the Company’s stock-based compensation plans. The number of stock options that were unvested as of June 30, 2024 and December 31, 2023 were 1,376,540 and 1,790,695 units, respectively. The number of stock options that were vested and exercisable as of June 30, 2024 and December 31, 2023 were 414,155 and nil units, respectively.
As of June 30, 2024, unrecognized compensation cost of $16,040 is expected to be expensed over a weighted average period of 3.0 years.
Share Matching Program
Under the Company’s 2018 Omnibus Incentive Plan (the “2018 Plan”), the Company established a share matching program (“SMP”) for executive officers and other specified employees. Under the SMP, the Company agreed to issue a number of restricted stock units equal to the number of newly acquired shares of the Company's common stock.
Restricted stock unit activity under the SMP is shown below:
 Restricted Stock Units (SMP)
 NumberWeighted Average
Fair Value
Outstanding as of December 31, 2023217,230 $24.95 
  Granted— — 
  Vested(72,385)24.95 
  Forfeited— — 
Outstanding as of June 30, 2024*144,845 $24.95 
* As of June 30, 2024 and December 31, 2023 restricted stock units vested for which the underlying common stock is yet to be issued are 72,385 and nil, respectively.
As of June 30, 2024, unrecognized compensation cost of $1,355 is expected to be expensed over a weighted average period of 0.8 years.
Restricted Stock Units
Restricted stock unit activity under the Company’s stock-based compensation plans is shown below:
 Restricted Stock Units
 NumberWeighted Average
Fair Value
Outstanding as of December 31, 2023*3,731,512 $24.96 
  Granted1,526,836 30.34 
  Vested(1,350,826)22.69 
  Forfeited(189,962)28.31 
Outstanding as of June 30, 2024*3,717,560 $27.82 

* As of June 30, 2024 and December 31, 2023 restricted stock units vested for which the underlying common stock is yet to be issued are 373,521 and 324,125, respectively.
As of June 30, 2024, unrecognized compensation cost of $80,859 is expected to be expensed over a weighted average period of 2.9 years.
Performance Based Stock Awards

Under the 2018 Plan, the Company grants performance-based restricted stock units (“PRSUs”) to executive officers and other specified employees. During the six months ended June 30, 2024, the Company granted 40% of each award recipient’s equity grants in the form of PRSUs that cliff vest at the end of a three-year period based on an aggregated revenue target for a three-year period. The remaining 60% of each award recipient’s equity grants are PRSUs that are based on market conditions, contingent on the Company’s meeting a total shareholder return relative to a group of peer companies specified under the 2018 Plan, and are measured over a three-year performance period.
PRSU activity under the Company’s stock plans is shown below:
 Revenue Based PRSUsMarket Condition Based PRSUs
 NumberWeighted Average
Fair Value		NumberWeighted Average
Fair Value
Outstanding as of December 31, 2023438,000 $29.16 656,450 $37.78 
Granted344,535 30.33 516,692 44.17 
Vested— — — — 
Forfeited(24,886)28.16 (37,261)37.64 
Outstanding as of June 30, 2024757,649 $29.73 1,135,881 $40.69 
As of June 30, 2024, unrecognized compensation cost of $47,030 is expected to be expensed over a weighted average period of 2.2 years.
Employee Stock Purchase Plan

On June 21, 2022, at the annual meeting of stockholders of the Company, the Company’s stockholders approved the ExlService Holdings, Inc. 2022 Employee Stock Purchase Plan (the “2022 ESPP”).

The 2022 ESPP allows eligible employees to purchase the Company’s shares of common stock through payroll deductions at a pre-specified discount to the lower of closing price of the Company’s common shares on the date of offering or the last business day of each purchase interval. The dollar amount of shares of common stock that can be purchased under the 2022 ESPP must not exceed 15% of the participating employee’s compensation during the offering period, subject to a cap of $25 per employee per calendar year. The Company has reserved 4,000,000 shares of common stock for issuance under the 2022 ESPP.

The fourth offering period under the 2022 ESPP commenced on January 1, 2024 with a term of six months.

Activity under the Company’s 2022 ESPP is shown below:

NumberTotal Proceeds Received
Shares available for issuance as of December 31, 20233,831,325
Issuance of common stock related to the:
Third offering period71,645$1,948 
Shares available for issuance as of June 30, 20243,759,680
Issuance of common stock related to the fourth offering
period made subsequent to June 30, 2024		86,936$2,414