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Stock-Based Compensation
 3 Months Ended
Mar. 31, 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 March 31,
 20242023
Cost of revenues$3,949 $3,566 
General and administrative expenses6,887 5,825 
Selling and marketing expenses7,016 5,016 
Total$17,852 $14,407 
Income tax benefit related to stock-based compensation (1)
$5,358 $9,830 

(1) Includes $7,523 and $12,520 during the three months ended March 31, 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 March 31, 2024 and December 31, 2023, the Company had 537,304 and 3,249,875 shares, respectively, available for grant under the 2018 Omnibus Incentive Plan.

Stock Options
During the three months ended March 31, 2024 and 2023, there was no stock option activity under the Company’s stock-based compensation plans. The number of stock options that were unvested as of each of March 31, 2024 and December 31, 2023 were 1,790,695 units. The number of stock options that were vested and exercisable as of each of March 31, 2024 and December 31, 2023 were nil units.
As of March 31, 2024, unrecognized compensation cost of $17,378 is expected to be expensed over a weighted average period of 3.3 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 March 31, 2024*144,845 $24.95 
* As of March 31, 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 March 31, 2024, unrecognized compensation cost of $1,805 is expected to be expensed over a weighted average period of 1.0 year.
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 
  Granted1,410,824 30.50 
  Vested(1,255,770)22.20 
  Forfeited(30,585)28.10 
Outstanding as of March 31, 2024*3,855,981 $27.86 
* As of March 31, 2024 and December 31, 2023 restricted stock units vested for which the underlying common stock is yet to be issued are 326,590 and 324,125, respectively.
As of March 31, 2024, unrecognized compensation cost of $91,761 is expected to be expensed over a weighted average period of 3.0 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 three months ended March 31, 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 (“PU”). 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 (“MU”).
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 30.44 516,692 44.03 
Vested— — — — 
Forfeited(1,985)33.42 (2,965)43.26 
Outstanding as of March 31, 2024780,550 $29.71 1,170,177 $40.53 
As of March 31, 2024, unrecognized compensation cost of $55,900 is expected to be expensed over a weighted average period of 2.4 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 March 31, 20243,759,680
Contributions received for the fourth offering period up to March 31, 2024$1,550