TaskUs, Inc. (Nasdaq: TASK), a leading provider of outsourced
digital services and next-generation customer experience to the
world’s most innovative companies, today announced its results for
the third quarter ended September 30, 2023.
-
Third quarter total revenues of
$225.6 million.
- GAAP net
income of $9.8 million, GAAP net income
margin of 4.3%.
- Non-GAAP
Adjusted Net Income of $30.0
million, non-GAAP Adjusted Net Income margin of
13.3%.
- GAAP diluted
EPS of $0.10, non-GAAP Adjusted EPS of
$0.32.
- Adjusted
EBITDA of $52.9 million, Adjusted EBITDA
margin of 23.5%.
- Net cash
provided by operating activities of $21.7
million, Free Cash Flow of $13.8 million and 26.1%
conversion of Adjusted EBITDA; $32.2 million, or 60.8% conversion
of Adjusted EBITDA, excluding payment for earn-out
consideration.
“We achieved strong third quarter performance,
once again beating our guidance. Our results were driven by new
client signings, as well as stronger-than-expected volumes from
existing clients. While the current environment remains volatile,
we are increasing our revenue outlook for the remainder of the
year, driven in part by expected seasonal volumes associated with
some of our recent healthcare signings and e-Commerce clients,”
said Co-Founder and CEO, Bryce Maddock. “We are pleased with the
progress that we have made on our strategic growth plan. We plan to
continue investing in our go-to-market and technology initiatives,
including the development of our TaskGPT platform. Additionally, we
are focused on using our strong cash flow to drive long-term
shareholder value,” concluded Maddock.
Third Quarter 2023 Financial and Frontline
Highlights |
|
($ in thousands, except per share amounts) |
Three months endedSeptember
30, |
|
|
|
Nine months endedSeptember
30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
Service revenue |
$ |
225,626 |
|
|
$ |
232,130 |
|
|
(2.8 |
)% |
|
$ |
690,101 |
|
|
$ |
718,269 |
|
|
(3.9 |
)% |
GAAP net income |
$ |
9,772 |
|
|
$ |
5,365 |
|
|
82.1 |
% |
|
$ |
29,413 |
|
|
$ |
24,680 |
|
|
19.2 |
% |
GAAP net income margin |
|
4.3 |
% |
|
|
2.3 |
% |
|
|
|
|
4.3 |
% |
|
|
3.4 |
% |
|
|
Non-GAAP Adjusted Net Income |
$ |
29,961 |
|
|
$ |
35,805 |
|
|
(16.3 |
)% |
|
$ |
94,294 |
|
|
$ |
109,512 |
|
|
(13.9 |
)% |
Non-GAAP Adjusted Net Income margin |
|
13.3 |
% |
|
|
15.4 |
% |
|
|
|
|
13.7 |
% |
|
|
15.2 |
% |
|
|
GAAP diluted EPS |
$ |
0.10 |
|
|
$ |
0.05 |
|
|
100.0 |
% |
|
$ |
0.30 |
|
|
$ |
0.24 |
|
|
25.0 |
% |
Non-GAAP Adjusted EPS |
$ |
0.32 |
|
|
$ |
0.35 |
|
|
(8.6 |
)% |
|
$ |
0.96 |
|
|
$ |
1.06 |
|
|
(9.4 |
)% |
Adjusted EBITDA |
$ |
52,925 |
|
|
$ |
55,456 |
|
|
(4.6 |
)% |
|
$ |
162,806 |
|
|
$ |
165,261 |
|
|
(1.5 |
)% |
Adjusted EBITDA margin |
|
23.5 |
% |
|
|
23.9 |
% |
|
|
|
|
23.6 |
% |
|
|
23.0 |
% |
|
|
Net cash provided by operating activities |
$ |
21,682 |
|
|
$ |
41,498 |
|
|
(47.8 |
)% |
|
$ |
103,895 |
|
|
$ |
114,464 |
|
|
(9.2 |
)% |
Free Cash Flow |
$ |
13,823 |
|
|
$ |
34,845 |
|
|
(60.3 |
)% |
|
$ |
80,991 |
|
|
$ |
78,454 |
|
|
3.2 |
% |
Conversion of Adjusted EBITDA |
|
26.1 |
% |
|
|
62.8 |
% |
|
|
|
|
49.7 |
% |
|
|
47.5 |
% |
|
|
Free Cash Flow (excluding payment
for earn-out consideration) |
$ |
32,164 |
|
|
$ |
34,845 |
|
|
(7.7 |
)% |
|
$ |
99,332 |
|
|
$ |
78,454 |
|
|
26.6 |
% |
Conversion of Adjusted EBITDA (excluding payment for earn-out
consideration) |
|
60.8 |
% |
|
|
62.8 |
% |
|
|
|
|
61.0 |
% |
|
|
47.5 |
% |
|
|
- Repurchased 4.5
million shares in the third quarter ended September 30,
2023.
- Ended the quarter with
47,000 teammates.
- Net Debt to Adjusted
EBITDA leverage ratio was 0.7 times.
- Continued success on
strategic cost initiatives driving strong profit margins.
- Recognized in Everest
Group’s “Augmented Intelligence: The Future of Trust and Safety is
Humans + AI” report.
“Our disciplined approach to cost optimization
and our geographic mix shift has led to healthy Adjusted EBITDA
margin improvement year to date. This has ultimately led to a
stronger Free Cash Flow outlook as well,” said Balaji Sekar, Chief
Financial Officer. “This quarter, we completed $48.3 million worth
of share repurchases, bringing our total shares repurchased since
the start of the program to 9.8 million shares. Given our current
public market valuation, we continue to view share repurchases as
an attractive part of our capital allocation strategy.”
Fourth
Quarter and Full Year 2023 Outlook |
For the
fourth quarter and full year 2023, TaskUs expects its financial
results to include1, 2: |
|
2023 Outlook |
|
Fourth Quarter |
|
Full Year |
Revenue (in millions) |
$225 to $227 |
|
$915 to $917 |
Revenue change (YoY) at midpoint |
(6.7 |
)% |
|
(4.6 |
)% |
Adjusted EBITDA Margin |
~22.5% |
|
~23.3% |
Free Cash Flow (excluding payment for earn-out consideration) (in
millions) |
N/A |
|
$115+ |
- With respect to
the non-GAAP Adjusted EBITDA margin outlook provided
above, a reconciliation to the closest GAAP financial measure has
not been provided as the quantification of certain items included
in the calculation of GAAP net income (loss) cannot be calculated
or predicted at this time without unreasonable efforts. For
example, the non-GAAP adjustment for stock-based
compensation expense requires additional inputs such as number of
shares granted and market price that are not currently
ascertainable, the non-GAAP adjustment for foreign
currency gains or losses depends on the timing and magnitude of
changes in foreign currency exchange rates and cannot be accurately
forecasted. For the same reasons, the Company is unable to address
the probable significance of the unavailable information, which
could have a potentially unpredictable, and potentially
significant, impact on its future GAAP financial results.
- Free Cash Flow
(excluding payment of earn-out consideration) is calculated as net
cash provided by operating activities in the period minus cash used
for purchase of property and equipment and payment for earn-out
consideration in the period. Net cash provided by operating
activities for the full year 2023 (excluding payment for heloo
earn-out consideration of $18.3 million) is expected to be
approximately $150 million and purchase of property and equipment
is expected to be approximately $35 million.
Conference Call Information
TaskUs senior management will host a conference
call today to discuss the Company’s third quarter 2023 financial
results and financial outlook. This call is scheduled to begin at
5:00 pm ET and can be accessed by dialing 877-407-2988 from the
United States or Canada or +1 201-389-0923 from other
international locations. To listen to a live audio webcast, please
visit TaskUs’ Investor Relations website at IR.Taskus.com. A replay
of the audio webcast will be available for 90 days on the same
website following the call. At the time of the conference call and
webcast, the Company will post a slide presentation and other
materials on its website.
About TaskUs
TaskUs is a leading provider of outsourced
digital services and next-generation customer experience to the
world’s most innovative companies, helping its clients represent,
protect, and grow their brands. Leveraging a cloud-based
infrastructure, TaskUs serves clients in the fastest-growing
sectors, including social media, e-commerce, gaming,
streaming media, food delivery and ride-sharing, Technology,
FinTech, and HealthTech. As of September 30, 2023, TaskUs had
a worldwide headcount of approximately 47,000 people across 28
locations in 13 countries, including the United States, the
Philippines, and India.
Forward-Looking Statements
This press release contains “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all
statements that are not historical facts, and further include,
without limitation, statements reflecting our current views with
respect to, among other things, our operations, our financial
performance, our industry, the impact of the macroeconomic
environment on our business, and
other non-historical statements including the statements
in the “Fourth Quarter and Full Year 2023 Outlook” section of this
press release. In some cases, you can identify these
forward-looking statements by the use of words such as “outlook,”
“believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “could,” “seeks,” “predicts,” “intends,” “trends,”
“plans,” “estimates,” “anticipates,” “position us” or the negative
version of these words or other comparable words. Such
forward-looking statements are subject to various risks and
uncertainties. Accordingly, there are or will be important factors
that could cause actual outcomes or results to differ materially
from those indicated in these statements. These factors include but
are not limited to: the dependence of our business on key clients;
the risk of loss of business or non-payment from clients;
our failure to cost-effectively acquire and retain new clients; the
risk that we may provide inadequate service or cause disruptions in
our clients’ businesses or fail to comply with the quality
standards required by our clients under our agreements;
unauthorized or improper disclosure of personal or other sensitive
information, or security breaches and incidents; negative publicity
or liability or difficulty recruiting and retaining employees; our
failure to detect and deter criminal or fraudulent activities or
other misconduct by our employees or third parties; global economic
and political conditions, especially in the social media and meal
delivery and transport industries from which we generate
significant revenue; the dependence of our business on our
international operations, particularly in the Philippines and
India; our failure to comply with applicable data privacy and
security laws and regulations; our inability to anticipate clients’
needs by adapting to market and technology trends; fluctuations
against the U.S. dollar in the local currencies in the countries in
which we operate; our inability to maintain and enhance our brand;
competitive pricing pressure; unfavorable or uncertain economic and
political conditions; our dependence on senior management and key
employees; the COVID-19 pandemic, including the resulting
global economic uncertainty and measures taken in response to the
pandemic; increases in employee expenses and changes to labor laws;
failure to attract, hire, train and retain a sufficient number of
skilled employees to support operations, reliance on owned and
third-party technology and computer systems; failure to maintain
asset utilization levels, price appropriately and control costs;
the control of affiliates of Blackstone Inc. and
our Co-Founders over us; and the dual class structure of
our common stock. Additional risks and uncertainties include but
are not limited to those described under “Risk Factors” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2022 filed with the Securities and Exchange Commission (the
“SEC”) on March 6, 2023, as such factors may be updated from time
to time in our periodic filings with the SEC, which are accessible
on the SEC’s website at www.sec.gov. These factors should not
be construed as exhaustive and should be read in conjunction with
the other cautionary statements that are included in the Company’s
SEC filings. TaskUs undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future developments or otherwise, except as required
by law.
Non-GAAP Measures
TaskUs supplements results reported in
accordance with United States generally accepted accounting
principles (GAAP), with non-GAAP financial measures, such
as Adjusted Net Income, Adjusted Net Income Margin, Adjusted EPS,
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow,
Free Cash Flow (excluding payment for earn-out consideration),
Conversion of Adjusted EBITDA and Conversion of Adjusted EBITDA
(excluding payment for earn-out consideration). Management believes
these measures help illustrate underlying trends in TaskUs’
business and uses the measures to establish budgets and operational
goals, communicate internally and externally, and manage TaskUs’
business and evaluate its performance. Management also believes
these measures help investors compare TaskUs’ operating performance
with its results in prior periods. TaskUs anticipates that it will
continue to report both GAAP and
certain non-GAAP financial measures in its financial
results, including non-GAAP results that exclude the
impact of certain costs, losses and gains that are required to be
included in our profit and loss measures under GAAP. Because
TaskUs’ reported non-GAAP financial measures are not
calculated in accordance with GAAP, these measures are not
comparable to GAAP and may not be comparable to similarly
described non-GAAP measures reported by other companies
within TaskUs’ industry. Consequently,
TaskUs’ non-GAAP financial measures should not be
evaluated in isolation or supplant comparable GAAP measures, but
rather, should be considered together with the information in
TaskUs’ consolidated financial statements, which are prepared in
accordance with GAAP. Definitions of non-GAAP financial
measures and the reconciliations to the most directly comparable
measures in accordance with GAAP are provided in subsequent
sections of this press release narrative and supplemental
schedules.
Investor ContactTrent
ThrashIR@taskus.com
Media ContactLisa
Wolfordmediainquiries@taskus.com
TaskUs, Inc. |
Condensed Consolidated Statements of Operations
(unaudited) |
(in thousands, except per share data) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
Service revenue |
$ |
225,626 |
|
$ |
232,130 |
|
|
$ |
690,101 |
|
$ |
718,269 |
|
Operating expenses: |
|
|
|
|
|
|
|
Cost of services |
|
130,139 |
|
|
134,544 |
|
|
|
401,455 |
|
|
419,364 |
|
Selling, general, and administrative expense |
|
57,114 |
|
|
62,348 |
|
|
|
179,583 |
|
|
195,514 |
|
Depreciation |
|
9,762 |
|
|
9,428 |
|
|
|
29,502 |
|
|
27,986 |
|
Amortization of intangible assets |
|
5,027 |
|
|
5,087 |
|
|
|
15,276 |
|
|
14,765 |
|
Loss (gain) on disposal of assets |
|
640 |
|
|
(8 |
) |
|
|
772 |
|
|
(18 |
) |
Total operating expenses |
|
202,682 |
|
|
211,399 |
|
|
|
626,588 |
|
|
657,611 |
|
Operating income |
|
22,944 |
|
|
20,731 |
|
|
|
63,513 |
|
|
60,658 |
|
Other expense, net |
|
2,895 |
|
|
7,612 |
|
|
|
34 |
|
|
16,042 |
|
Financing expenses |
|
5,712 |
|
|
3,859 |
|
|
|
16,141 |
|
|
7,665 |
|
Income before income taxes |
|
14,337 |
|
|
9,260 |
|
|
|
47,338 |
|
|
36,951 |
|
Provision for income taxes |
|
4,565 |
|
|
3,895 |
|
|
|
17,925 |
|
|
12,271 |
|
Net income |
$ |
9,772 |
|
$ |
5,365 |
|
|
$ |
29,413 |
|
$ |
24,680 |
|
Net income per common share: |
|
|
|
|
|
|
|
Basic |
$ |
0.11 |
|
$ |
0.05 |
|
|
$ |
0.31 |
|
$ |
0.25 |
|
Diluted |
$ |
0.10 |
|
$ |
0.05 |
|
|
$ |
0.30 |
|
$ |
0.24 |
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
Basic |
|
92,480,316 |
|
|
98,299,612 |
|
|
|
95,522,026 |
|
|
97,854,944 |
|
Diluted |
|
94,035,111 |
|
|
101,920,413 |
|
|
|
97,729,230 |
|
|
103,073,208 |
|
TaskUs, Inc. |
Condensed Consolidated Balance Sheets
(unaudited) |
(in thousands) |
|
|
September 30,2023 |
|
December 31,2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
114,616 |
|
$ |
133,992 |
Accounts receivable, net of allowance for doubtful accounts of
$1,909 and $3,422, respectively |
|
179,120 |
|
|
178,678 |
Income tax receivable |
|
5,639 |
|
|
2,879 |
Prepaid expenses and other current assets |
|
25,897 |
|
|
25,876 |
Total current assets |
|
325,272 |
|
|
341,425 |
Noncurrent assets: |
|
|
|
Property and equipment, net |
|
74,495 |
|
|
75,053 |
Operating lease right-of-use assets |
|
43,297 |
|
|
41,510 |
Deferred tax assets |
|
6,406 |
|
|
6,165 |
Intangibles |
|
197,636 |
|
|
212,993 |
Goodwill |
|
217,170 |
|
|
217,382 |
Other noncurrent assets |
|
6,503 |
|
|
7,487 |
Total noncurrent assets |
|
545,507 |
|
|
560,590 |
Total assets |
$ |
870,779 |
|
$ |
902,015 |
Liabilities and Shareholders’ Equity |
|
|
|
Liabilities: |
|
|
|
Current liabilities: |
|
|
|
Accounts payable and accrued liabilities |
$ |
34,898 |
|
$ |
37,062 |
Accrued payroll and employee-related liabilities |
|
44,898 |
|
|
48,663 |
Current portion of debt |
|
6,372 |
|
|
3,334 |
Current portion of operating lease liabilities |
|
14,723 |
|
|
11,614 |
Current portion of income tax payable |
|
7,082 |
|
|
5,730 |
Deferred revenue |
|
3,199 |
|
|
3,481 |
Total current liabilities |
|
111,172 |
|
|
109,884 |
Noncurrent liabilities: |
|
|
|
Income tax payable |
|
2,286 |
|
|
2,293 |
Long-term debt |
|
259,446 |
|
|
264,225 |
Operating lease liabilities |
|
31,516 |
|
|
32,380 |
Accrued payroll and employee-related liabilities |
|
2,973 |
|
|
2,818 |
Deferred tax liabilities |
|
34,495 |
|
|
34,514 |
Other noncurrent liabilities |
|
143 |
|
|
288 |
Total noncurrent liabilities |
|
330,859 |
|
|
336,518 |
Total liabilities |
|
442,031 |
|
|
446,402 |
Total shareholders’ equity |
|
428,748 |
|
|
455,613 |
Total liabilities and shareholders’ equity |
$ |
870,779 |
|
$ |
902,015 |
TaskUs, Inc. |
Condensed Consolidated Statement of Cash Flows
(unaudited) |
(in thousands) |
|
|
Nine months ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
29,413 |
|
|
$ |
24,680 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
|
29,502 |
|
|
|
27,986 |
|
Amortization of intangibles |
|
15,276 |
|
|
|
14,765 |
|
Amortization of debt financing fees |
|
447 |
|
|
|
420 |
|
Loss (gain) on disposal of assets |
|
772 |
|
|
|
(18 |
) |
Provision for losses on accounts receivable |
|
— |
|
|
|
1,329 |
|
Unrealized foreign exchange losses on forward contracts |
|
6,020 |
|
|
|
13,522 |
|
Deferred taxes |
|
(255 |
) |
|
|
(39 |
) |
Stock-based compensation expense |
|
42,337 |
|
|
|
54,764 |
|
Changes in operating assets and liabilities: |
|
|
|
Accounts receivable |
|
(680 |
) |
|
|
(6,995 |
) |
Prepaid expenses and other current assets |
|
(4,403 |
) |
|
|
(8,022 |
) |
Operating lease right-of-use assets |
|
10,670 |
|
|
|
9,762 |
|
Other noncurrent assets |
|
(123 |
) |
|
|
(522 |
) |
Accounts payable and accrued liabilities |
|
(9,063 |
) |
|
|
(3,941 |
) |
Accrued payroll and employee-related liabilities |
|
(4,093 |
) |
|
|
10,477 |
|
Operating lease liabilities |
|
(10,217 |
) |
|
|
(9,146 |
) |
Income tax payable |
|
(1,278 |
) |
|
|
(13,918 |
) |
Deferred revenue |
|
(278 |
) |
|
|
(738 |
) |
Other noncurrent liabilities |
|
(152 |
) |
|
|
98 |
|
Net cash provided by operating activities |
|
103,895 |
|
|
|
114,464 |
|
Cash flows from investing activities: |
|
|
|
Purchase of property and equipment |
|
(22,904 |
) |
|
|
(36,010 |
) |
Acquisition, net of cash acquired |
|
— |
|
|
|
(23,235 |
) |
Investment in loan receivable |
|
(1,000 |
) |
|
|
— |
|
Net cash used in investing activities |
|
(23,904 |
) |
|
|
(59,245 |
) |
Cash flows from financing activities: |
|
|
|
Proceeds from borrowings, Revolving credit facility |
|
— |
|
|
|
32,500 |
|
Proceeds from long-term debt |
|
— |
|
|
|
270,000 |
|
Payments for deferred business acquisition consideration |
|
(145 |
) |
|
|
— |
|
Payments on long-term debt |
|
(2,025 |
) |
|
|
(272,403 |
) |
Payments for debt financing fees |
|
— |
|
|
|
(1,821 |
) |
Proceeds from employee stock plans |
|
554 |
|
|
|
2,217 |
|
Payments for taxes related to net share settlement |
|
(2,035 |
) |
|
|
(3,937 |
) |
Payments for stock repurchases |
|
(92,683 |
) |
|
|
(13,702 |
) |
Net cash provided by (used in) financing activities |
|
(96,334 |
) |
|
|
12,854 |
|
Increase (decrease) in cash and cash equivalents |
|
(16,343 |
) |
|
|
68,073 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(3,033 |
) |
|
|
(9,166 |
) |
Cash and cash equivalents at beginning of period |
|
133,992 |
|
|
|
63,584 |
|
Cash and cash equivalents at end of period |
$ |
114,616 |
|
|
$ |
122,491 |
|
TaskUs, Inc. |
Non-GAAP Reconciliations |
Adjusted EBITDA (unaudited) |
(in thousands, except margin amounts) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
9,772 |
|
|
$ |
5,365 |
|
|
$ |
29,413 |
|
|
$ |
24,680 |
|
Provision for income taxes |
|
4,565 |
|
|
|
3,895 |
|
|
|
17,925 |
|
|
|
12,271 |
|
Financing expenses |
|
5,712 |
|
|
|
3,859 |
|
|
|
16,141 |
|
|
|
7,665 |
|
Depreciation |
|
9,762 |
|
|
|
9,428 |
|
|
|
29,502 |
|
|
|
27,986 |
|
Amortization of intangible assets |
|
5,027 |
|
|
|
5,087 |
|
|
|
15,276 |
|
|
|
14,765 |
|
EBITDA |
$ |
34,838 |
|
|
$ |
27,634 |
|
|
$ |
108,257 |
|
|
$ |
87,367 |
|
Transaction costs(1) |
|
— |
|
|
|
39 |
|
|
|
245 |
|
|
|
588 |
|
Earn-out consideration(2) |
|
(53 |
) |
|
|
3,648 |
|
|
|
7,863 |
|
|
|
4,976 |
|
Foreign currency losses(3) |
|
3,494 |
|
|
|
7,713 |
|
|
|
1,316 |
|
|
|
16,367 |
|
Loss (gain) on disposal of assets |
|
640 |
|
|
|
(8 |
) |
|
|
772 |
|
|
|
(18 |
) |
Severance costs(4) |
|
60 |
|
|
|
— |
|
|
|
1,628 |
|
|
|
821 |
|
Stock-based compensation expense(5) |
|
13,946 |
|
|
|
16,430 |
|
|
|
42,725 |
|
|
|
55,160 |
|
Adjusted EBITDA |
$ |
52,925 |
|
|
$ |
55,456 |
|
|
$ |
162,806 |
|
|
$ |
165,261 |
|
Net Income Margin(6) |
|
4.3 |
% |
|
|
2.3 |
% |
|
|
4.3 |
% |
|
|
3.4 |
% |
Adjusted EBITDA Margin(6) |
|
23.5 |
% |
|
|
23.9 |
% |
|
|
23.6 |
% |
|
|
23.0 |
% |
|
(1) Represents professional service fees related to the
acquisition of heloo in 2022 and other non-recurring
transactions. |
(2) Represents earn-out consideration recognized as
compensation expense related to the acquisition of heloo. |
(3) Realized and unrealized foreign currency losses include
the effect of fair market value changes of forward contracts and
remeasurement of U.S. dollar-denominated accounts to foreign
currency. |
(4) Represents severance payments as a result of certain cost
optimization measures we undertook during the period to restructure
support roles. |
(5) Represents stock-based compensation expense associated
with equity-classified awards, as well as associated payroll
tax. |
(6) Net Income Margin represents net income divided by service
revenue and Adjusted EBITDA Margin represents Adjusted EBITDA
divided by service revenue. |
TaskUs, Inc. |
Non-GAAP Reconciliations |
Adjusted Net Income (unaudited) |
(in thousands, except margin amounts) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
$ |
9,772 |
|
|
$ |
5,365 |
|
|
$ |
29,413 |
|
|
$ |
24,680 |
|
Amortization of intangible assets |
|
5,027 |
|
|
|
5,087 |
|
|
|
15,276 |
|
|
|
14,765 |
|
Transaction costs(1) |
|
— |
|
|
|
39 |
|
|
|
245 |
|
|
|
588 |
|
Earn-out consideration(2) |
|
(53 |
) |
|
|
3,648 |
|
|
|
7,863 |
|
|
|
4,976 |
|
Foreign currency losses(3) |
|
3,494 |
|
|
|
7,713 |
|
|
|
1,316 |
|
|
|
16,367 |
|
Loss (gain) on disposal of assets |
|
640 |
|
|
|
(8 |
) |
|
|
772 |
|
|
|
(18 |
) |
Severance costs(4) |
|
60 |
|
|
|
— |
|
|
|
1,628 |
|
|
|
821 |
|
Stock-based compensation expense(5) |
|
13,946 |
|
|
|
16,430 |
|
|
|
42,725 |
|
|
|
55,160 |
|
Tax impacts of adjustments(6) |
|
(2,925 |
) |
|
|
(2,469 |
) |
|
|
(4,944 |
) |
|
|
(7,827 |
) |
Adjusted Net Income |
$ |
29,961 |
|
|
$ |
35,805 |
|
|
$ |
94,294 |
|
|
$ |
109,512 |
|
Net Income Margin(7) |
|
4.3 |
% |
|
|
2.3 |
% |
|
|
4.3 |
% |
|
|
3.4 |
% |
Adjusted Net Income Margin(7) |
|
13.3 |
% |
|
|
15.4 |
% |
|
|
13.7 |
% |
|
|
15.2 |
% |
|
(1) Represents professional service fees related to the acquisition
of heloo in 2022 and other non-recurring transactions |
(2) Represents earn-out consideration recognized as
compensation expense related to the acquisition of heloo. |
(3) Realized and unrealized foreign currency losses include
the effect of fair market value changes of forward contracts and
remeasurement of U.S. dollar-denominated accounts to foreign
currency. |
(4) Represents severance payments as a result of certain cost
optimization measures we undertook during the period to restructure
support roles. |
(5) Represents stock-based compensation expense associated
with equity-classified awards, as well as associated payroll
tax. |
(6) Represents tax impacts of adjustments to net income which
resulted in a tax benefit during the period, including stock-based
compensation expense and earn-out consideration. |
(7) Net Income Margin represents net income divided by service
revenue and Adjusted Net Income Margin represents Adjusted Net
Income divided by service revenue. |
TaskUs, Inc. |
Non-GAAP Reconciliations |
Adjusted EPS (unaudited) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
GAAP diluted EPS |
$ |
0.10 |
|
$ |
0.05 |
|
$ |
0.30 |
|
$ |
0.24 |
Per share adjustments to net income(1) |
|
0.22 |
|
|
0.30 |
|
|
0.66 |
|
|
0.82 |
Adjusted EPS |
$ |
0.32 |
|
$ |
0.35 |
|
$ |
0.96 |
|
$ |
1.06 |
|
|
|
|
|
|
|
|
Weighted-average common shares
outstanding – diluted |
|
94,035,111 |
|
|
101,920,413 |
|
|
97,729,230 |
|
|
103,073,208 |
|
(1) Reflects
the aggregate adjustments made to reconcile net income to Adjusted
Net Income, as noted in the above table, divided by the GAAP
diluted weighted-average number of shares outstanding for the
relevant period. |
TaskUs, Inc. |
Non-GAAP Reconciliations |
Free Cash Flow (unaudited) |
(in thousands, except percentages) |
|
|
Three months ended September 30, |
|
Nine months ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net cash provided by operating activities |
$ |
21,682 |
|
|
$ |
41,498 |
|
|
$ |
103,895 |
|
|
$ |
114,464 |
|
Purchase of property and equipment |
|
(7,859 |
) |
|
|
(6,653 |
) |
|
|
(22,904 |
) |
|
|
(36,010 |
) |
Free Cash Flow |
$ |
13,823 |
|
|
$ |
34,845 |
|
|
$ |
80,991 |
|
|
$ |
78,454 |
|
Payment for earn-out consideration |
|
18,341 |
|
|
|
— |
|
|
|
18,341 |
|
|
|
— |
|
Free Cash Flow (excluding payment for earn-out consideration) |
$ |
32,164 |
|
|
$ |
34,845 |
|
|
$ |
99,332 |
|
|
$ |
78,454 |
|
Conversion of Adjusted EBITDA(1) |
|
26.1 |
% |
|
|
62.8 |
% |
|
|
49.7 |
% |
|
|
47.5 |
% |
Conversion of Adjusted EBITDA (excluding payment for earn-out
consideration)(1) |
|
60.8 |
% |
|
|
62.8 |
% |
|
|
61.0 |
% |
|
|
47.5 |
% |
|
(1) Conversion of Adjusted EBITDA represents Free Cash Flow
divided by Adjusted EBITDA. Conversion of Adjusted EBITDA
(excluding payment for earn-out consideration) represents Free Cash
Flow (excluding payment for earn-out consideration) divided by
Adjusted EBITDA. |
|
Definitions
of Non-GAAP Metrics
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP profitability measure that
represents net income or loss for the period before the impact of
the benefit from or provision for income taxes, financing expenses,
depreciation, and amortization of intangible assets. EBITDA
eliminates potential differences in performance caused by
variations in capital structures (affecting financing expenses),
tax positions (such as the availability of net operating losses
against which to relieve taxable profits), the cost and age of
tangible assets (affecting relative depreciation expense) and the
extent to which intangible assets are identifiable (affecting
relative amortization expense).
Adjusted EBITDA is a non-GAAP profitability
measure that represents EBITDA before certain items that are
considered to hinder comparison of the performance of our
businesses on a period-over-period basis or with other businesses.
During the periods presented, we excluded from Adjusted EBITDA
transaction costs, earn-out consideration, the effect of foreign
currency gains and losses, gains and losses on disposals of assets,
non-recurring severance costs and stock-based compensation expense
and employer payroll tax associated with equity-classified awards,
which include costs that are required to be expensed in accordance
with GAAP. Our management believes that the inclusion of
supplementary adjustments to EBITDA applied in presenting Adjusted
EBITDA are appropriate to provide additional information to
investors about certain material non-cash items and about unusual
items that we do not expect to continue at the same level in the
future.
Adjusted EBITDA Margin represents Adjusted
EBITDA divided by service revenue.
Adjusted Net Income
Adjusted Net Income is a non-GAAP profitability
measure that represents net income or loss for the period before
the impact of amortization of intangible assets and certain items
that are considered to hinder comparison of the performance of our
businesses on a period-over-period basis or with other businesses.
During the periods presented, we excluded from Adjusted Net Income
amortization of intangible assets, transaction costs, earn-out
consideration, the effect of foreign currency gains and losses,
gains and losses on disposals of assets, non-recurring severance
costs, stock-based compensation expense and employer payroll tax
associated with equity-classified awards and the related effect on
income taxes of certain pre-tax adjustments, which include costs
that are required to be expensed in accordance with GAAP. Our
management believes that the inclusion of supplementary adjustments
to net income applied in presenting Adjusted Net Income are
appropriate to provide additional information to investors about
certain material non-cash items and about unusual items that we do
not expect to continue at the same level in the future.
Adjusted Net Income Margin represents Adjusted
Net Income divided by service revenue.
Adjusted EPS
Adjusted EPS is a non-GAAP profitability measure
that represents earnings available to shareholders excluding the
impact of certain items that are considered to hinder comparison of
the performance of our business on a period-over-period basis or
with other businesses. Adjusted EPS is calculated as Adjusted Net
Income divided by our diluted weighted-average number of shares
outstanding, including the impact of any potentially dilutive
common stock equivalents that are anti-dilutive to GAAP net income
per share – diluted ("GAAP diluted EPS") but dilutive to Adjusted
EPS. Our management believes that the inclusion of supplementary
adjustments to earnings per share applied in presenting Adjusted
EPS are appropriate to provide additional information to investors
about certain material non-cash items and about unusual items that
we do not expect to continue at the same level in the future.
Free Cash Flow
Free Cash Flow is a non-GAAP liquidity measure
that represents our ability to generate additional cash from our
business operations. Free Cash Flow is calculated as net cash
provided by operating activities in the period minus cash used for
purchase of property and equipment in the period. Our management
believes that the inclusion of this non-GAAP measure, when
considered with our GAAP results, provides management and investors
with an additional understanding of our ability to generate
additional cash for ongoing business operations and other capital
deployment
Free Cash Flow (excluding payment for earn-out
consideration) is a non-GAAP liquidity measure that represents Free
Cash Flow before the payment of earn-out consideration which would
hinder comparison of the performance of our business on a
period-over-period basis or with other businesses. Our management
believes that the inclusion of this supplementary adjustment to
Free Cash Flow is appropriate to provide additional information to
investors about this unusual item that we do not expect to continue
at the same level in the future.
Conversion of Adjusted EBITDA represents Free
Cash Flow divided by Adjusted EBITDA. Conversion of Adjusted EBITDA
(excluding payment for earn-out consideration) represents Free Cash
Flow (excluding payment for earn-out consideration) divided by
Adjusted EBITDA.
TaskUs (NASDAQ:TASK)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
TaskUs (NASDAQ:TASK)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024