The Company uses derivative instruments to mitigate cash flow volatility from risk of fluctuations in foreign currency exchange rates and interest rates. The Company enters into foreign currency forward contracts to hedge cash flow risks from forecasted revenues and other transactions denominated in certain foreign currencies. These contracts qualify as cash flow hedges under ASC Topic 815, Derivatives and Hedging, and are with counterparties that are highly rated financial institutions.

The Company estimates that approximately $983 of derivative gains, net, excluding tax effects, included in AOCI, representing changes in the value of cash flow hedges based on exchange rates prevailing as of March 31, 2025, could be reclassified into earnings within the next twelve months. As of March 31, 2025, the maximum outstanding term of the cash flow hedges was approximately 42 months.

The Company also enters into foreign currency forward contracts to hedge its intercompany balances and other monetary assets and liabilities denominated in currencies other than functional currencies, against the risk of fluctuations in foreign currency exchange rates associated with remeasurement of such assets and liabilities to functional currency. These foreign currency forward contracts do not qualify as fair value hedges under ASC Topic 815, Derivatives and Hedging. Changes in the fair value of these financial instruments are recognized in the unaudited consolidated statements of income and are included in the foreign exchange gain/(loss) line item.


	As of
Foreign currency forward contracts denominated in:	March 31, 2025	December 31, 2024
Sell USD	215,904	179,491
Sell GBP	28,253	20,956
Sell EUR	9,549	9,008
Sell AUD	4,818	4,770
Sell ZAR	8,945	10,006
Buy USD	953	588


	Derivatives in cash flow hedging relationships				Derivatives not designated as hedging instruments
	As of				As of
	March 31, 2025		December 31, 2024		March 31, 2025		December 31, 2024
Assets:
Other current assets	$	4,316	$	1,711	$	430	$	262
Other assets	$	1,603	$	852	$	—	$	—
Liabilities:
Accrued expenses and other current liabilities	$	3,333	$	7,404	$	52	$	50
Other non-current liabilities	$	723	$	4,363	$	—	$	—


	Three months ended March 31,
Derivative financial instruments:	2025		2024
Unrealized gain/(loss) recognized in other comprehensive income (“OCI”)
Derivatives in cash flow hedging relationships	$	9,469	$	(62)

Gain/(loss) recognized in unaudited consolidated statements of income
Derivatives not designated as hedging instruments	$	480	$	40

The following table sets forth the location and amount of gain/(loss) recognized in unaudited consolidated statements of income for derivatives in cash flow hedging relationships and derivatives not designated as hedging instruments:


	Three months ended March 31,
	2025				2024
	As per unaudited consolidated statements of income		Gain/(loss) on derivative financial instruments		As per unaudited consolidated statements of income		Gain/(loss) on derivative financial instruments
Derivatives in cash flow hedging relationships
Location in unaudited consolidated statements of income where gain/(loss) was reclassified from AOCI

Cost of revenues	$	307,705	(1,413)		$	273,424	150
General and administrative expenses	$	59,417	(154)		$	53,243	39
Selling and marketing expenses	$	41,925	(16)		$	35,970	4
Depreciation and amortization expense	$	13,557	(15)		$	12,346	8
Interest expense	$	4,144	—		$	3,291	242
Total before tax			(1,598)				443
Income tax effects on above			382				(102)
Net of tax			$	(1,216)			$	341

Derivatives not designated as hedging instruments
Location in unaudited consolidated statements of income where gain/(loss) was recognized

Foreign exchange gain/(loss), net	$	1,192	$	480	$	359	$	40