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, 2024.
- Total revenues of $255.3 million, 13.2% year-over-year
growth. Exceeding the top-end of our guidance by $9.3 million.
- Net income of $12.7 million, net income margin of
5.0%.
- Adjusted Net Income of $34.3 million, Adjusted Net
Income margin of 13.4%.
- Diluted EPS of $0.14, Adjusted EPS of $0.37.
- Adjusted EBITDA of $54.2 million, Adjusted EBITDA margin
of 21.2%. Exceeding our midpoint guidance by $1.5 million.
- Net cash provided by operating activities of $17.0
million, Free Cash Flow of $6.3 million and 11.6% conversion of
Adjusted EBITDA to Free Cash Flow. Adjusted Free Cash Flow of $9.1
million and 16.8% conversion of Adjusted EBITDA to Adjusted Free
Cash Flow.
"Our team has continued to deliver results that exceed
expectations. In Q3 we delivered the highest quarterly revenue in
our company’s history and returned to double-digit year-over-year
revenue growth of 13.2%. We expect another record-setting quarter
in Q4, as we once again deliver accelerating, double-digit growth,”
said Co-Founder and CEO, Bryce Maddock. “While many competitors
have struggled this year, we’ve taken the opportunity to go on the
offensive—investing in our specialized services, deploying new
technologies, and ramping up sales and marketing. This strategy has
driven results, enabling us to increase the midpoint of our
full-year guidance by $64 million since our initial 2024
guide."
Third Quarter 2024 Financial and Frontline Highlights
($ in thousands, except per share
amounts)
Three months ended
September 30,
Nine months ended
September 30,
2024
2023
% Change
2024
2023
% Change
Service revenue
$
255,345
$
225,626
13.2
%
$
720,743
$
690,101
4.4
%
Net income
$
12,699
$
9,772
30.0
%
$
37,011
$
29,413
25.8
%
Net income margin
5.0
%
4.3
%
5.1
%
4.3
%
Adjusted Net Income
$
34,277
$
29,961
14.4
%
$
90,184
$
94,294
(4.4
)%
Adjusted Net Income margin
13.4
%
13.3
%
12.5
%
13.7
%
Diluted EPS
$
0.14
$
0.10
40.0
%
$
0.40
$
0.30
33.3
%
Adjusted EPS
$
0.37
$
0.32
15.6
%
$
0.98
$
0.96
2.1
%
Adjusted EBITDA
$
54,215
$
52,452
3.4
%
$
156,072
$
161,781
(3.5
)%
Adjusted EBITDA margin
21.2
%
23.2
%
21.7
%
23.4
%
Net cash provided by operating
activities
$
17,019
$
21,682
(21.5
)%
$
98,230
$
103,895
(5.5
)%
Free Cash Flow
$
6,286
$
13,823
(54.5
)%
$
79,409
$
80,991
(2.0
)%
Conversion of Adjusted EBITDA to Free Cash
Flow
11.6
%
26.4
%
50.9
%
50.1
%
Adjusted Free Cash Flow
$
9,097
$
32,164
(71.7
)%
$
82,220
$
99,332
(17.2
)%
Conversion of Adjusted EBITDA to Adjusted
Free Cash Flow
16.8
%
61.3
%
52.7
%
61.4
%
- All three service lines delivered year-over-year revenue growth
in Q3. The growth rates in each service line are expected to
accelerate in Q4 of 2024.
- Increased our midpoint, full-year revenue guidance by $24
million this quarter, and $64 million since our initial 2024
guidance.
- Added 3,100 teammates since the second quarter, ending the
third quarter of 2024 with 54,800 teammates.
- Net Debt to Adjusted EBITDA leverage ratio was 0.4 times.
"In Q3, we continued to experience strong global demand from
both new and existing clients, generating $255.3 million in revenue
- the highest quarterly revenue in our history,” said Balaji Sekar,
Chief Financial Officer. “We saw broad-based growth across our
client verticals and delivery geographies, particularly in Latin
America and Europe. I am proud of the disciplined performance our
team delivered in a competitive market environment, resulting in a
year-over-year increase of more than 3% in our Adjusted EBITDA,
including the significant investments we continue to make in sales,
marketing, technology, and operations to support our ongoing
revenue growth acceleration. Looking ahead, we expect full-year
2024 revenues to range from $988 million to $990 million and to
deliver approximately $213 million in Adjusted EBITDA and $110
million Adjusted Free Cash Flow at the midpoint of our
guidance.”
Fourth Quarter and Full Year 2024 Outlook
For the fourth quarter and full year
2024, TaskUs expects its financial results to include1, 2:
2024 Outlook
Fourth Quarter
Full Year
Revenue (in millions)
$267.3 to $269.3
$988 to $990
Revenue change (YoY) at midpoint
14.5%
7.0%
Adjusted EBITDA Margin1
~21.1%
~21.5%
Adjusted Free Cash Flow (in millions)2
N/A
~$110
(1)
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, and 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.
(2)
Adjusted 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,
excluding certain non-recurring adjustments. At the midpoint of our
guidance, net cash provided by operating activities for the full
year 2024, excluding certain litigation-related payments, is
expected to be approximately $146 million and purchase of property
and equipment is expected to be approximately $36 million. Our
Adjusted Free Cash Flow guidance and expected net cash provided by
operating activities excludes the impact of certain litigation
costs, which are non-recurring and outside the ordinary course of
business, due to the unpredictability of the costs and timing of
payments.
Conference Call Information
TaskUs senior management will host a conference call today to
discuss the Company’s third quarter 2024 financial results and
financial outlook. This call is scheduled to begin at 5:00 pm ET.
Analysts and investors who wish to participate in the call can
register by visiting
https://register.vevent.com/register/BI8fce858f29da495b8940187fddefb841.
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 on the same website for 12 months 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, 2024, TaskUs had a worldwide headcount of approximately 54,800
people across 28 locations in 12 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 2024 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; utilization
of artificial intelligence by our clients or our failure to
incorporate artificial intelligence into our operations; our
inability to anticipate clients’ needs by adapting to market and
technology trends; 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; 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; our dependence on senior management
and key employees; 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; our inability to
effectively expand our operations into countries or industries in
which we have no prior operating experience and in which we may be
subject to increased business, economic and regulatory risks;
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, 2023
filed with the Securities and Exchange Commission (the “SEC”) on
March 8, 2024, 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, Adjusted Free Cash Flow, Conversion
of Adjusted EBITDA to Free Cash Flow and Conversion of Adjusted
EBITDA to Adjusted Free Cash Flow. 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.
TaskUs, Inc.
Condensed Consolidated
Statements of Income (unaudited)
(in thousands, except per share
data)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Service revenue
$
255,345
$
225,626
$
720,743
$
690,101
Operating expenses:
Cost of services
153,765
130,139
433,052
401,455
Selling, general, and administrative
expense
62,650
57,114
171,830
179,583
Depreciation
9,758
9,762
30,525
29,502
Amortization of intangible assets
4,988
5,027
14,955
15,276
Loss (gain) on disposal of assets
(10
)
640
(93
)
772
Total operating expenses
231,151
202,682
650,269
626,588
Operating income
24,194
22,944
70,474
63,513
Other expense (income), net
898
2,895
(2,007
)
34
Financing expenses
5,504
5,712
16,532
16,141
Income before income taxes
17,792
14,337
55,949
47,338
Provision for income taxes
5,093
4,565
18,938
17,925
Net income
$
12,699
$
9,772
$
37,011
$
29,413
Net income per common share:
Basic
$
0.14
$
0.11
$
0.42
$
0.31
Diluted
$
0.14
$
0.10
$
0.40
$
0.30
Weighted-average number of common shares
outstanding:
Basic
88,978,159
92,480,316
88,701,787
95,522,026
Diluted
92,579,919
94,035,111
92,019,911
97,729,230
TaskUs, Inc.
Condensed Consolidated Balance
Sheets (unaudited)
(in thousands)
September 30,
2024
December 31,
2023
Assets
Current assets:
Cash and cash equivalents
$
180,381
$
125,776
Accounts receivable, net of allowance for
credit losses of $1,836 and $1,978, respectively
200,780
176,812
Income tax receivable
8,472
2,021
Prepaid expenses and other current
assets
29,777
23,909
Total current assets
419,410
328,518
Noncurrent assets:
Property and equipment, net
65,127
68,893
Operating lease right-of-use assets
47,352
44,326
Deferred tax assets
6,651
4,857
Intangibles
178,084
192,958
Goodwill
218,359
218,108
Other noncurrent assets
7,114
6,542
Total noncurrent assets
522,687
535,684
Total assets
$
942,097
$
864,202
Liabilities and Shareholders’
Equity
Liabilities:
Current liabilities:
Accounts payable and accrued
liabilities
$
38,464
$
26,054
Accrued payroll and employee-related
liabilities
59,514
40,291
Current portion of debt
13,122
8,059
Current portion of operating lease
liabilities
18,116
15,872
Current portion of income tax payable
6,239
7,451
Deferred revenue
3,646
4,077
Total current liabilities
139,101
101,804
Noncurrent liabilities:
Income tax payable
4,678
4,621
Long-term debt
246,325
256,166
Operating lease liabilities
31,677
31,475
Accrued payroll and employee-related
liabilities
5,212
3,978
Deferred tax liabilities
25,229
25,214
Other noncurrent liabilities
85
233
Total noncurrent liabilities
313,206
321,687
Total liabilities
452,307
423,491
Total shareholders’ equity
489,790
440,711
Total liabilities and shareholders’
equity
$
942,097
$
864,202
TaskUs, Inc.
Condensed Consolidated
Statement of Cash Flows (unaudited)
(in thousands)
Nine months ended September
30,
2024
2023
Cash flows from operating activities:
Net income
$
37,011
$
29,413
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
30,525
29,502
Amortization of intangibles
14,955
15,276
Amortization of debt financing fees
447
447
Loss (gain) on disposal of assets
(93
)
772
Benefit from credit losses
(25
)
—
Unrealized foreign exchange losses (gains)
on forward contracts
(166
)
6,020
Deferred taxes
(1,813
)
(255
)
Stock-based compensation expense
31,954
42,337
Changes in operating assets and
liabilities:
Accounts receivable
(23,452
)
(680
)
Prepaid expenses and other current
assets
(5,807
)
(4,403
)
Operating lease right-of-use assets
11,883
10,670
Other noncurrent assets
(809
)
(123
)
Accounts payable and accrued
liabilities
3,318
(9,063
)
Accrued payroll and employee-related
liabilities
20,904
(4,093
)
Operating lease liabilities
(12,423
)
(10,217
)
Income tax payable
(7,592
)
(1,278
)
Deferred revenue
(442
)
(278
)
Other noncurrent liabilities
(145
)
(152
)
Net cash provided by operating
activities
98,230
103,895
Cash flows from investing activities:
Purchase of property and equipment
(18,821
)
(22,904
)
Investment in loan receivable
—
(1,000
)
Net cash used in investing activities
(18,821
)
(23,904
)
Cash flows from financing activities:
Payments for deferred business acquisition
consideration
(144
)
(145
)
Payments on long-term debt
(5,063
)
(2,025
)
Proceeds from employee stock plans
3,301
554
Payments for taxes related to net share
settlement
(3,880
)
(2,035
)
Payments for stock repurchases
(15,468
)
(92,683
)
Net cash used in financing activities
(21,254
)
(96,334
)
Increase (decrease) in cash and cash
equivalents
58,155
(16,343
)
Effect of exchange rate changes on
cash
(3,550
)
(3,033
)
Cash and cash equivalents at beginning of
period
125,776
133,992
Cash and cash equivalents at end of
period
$
180,381
$
114,616
TaskUs, Inc.
Non-GAAP
Reconciliations
Adjusted EBITDA (unaudited)
(in thousands, except margin
amounts)
Three months ended September
30,
Nine months ended September
30,
2024
2023
2024
2023
Net income
$
12,699
$
9,772
$
37,011
$
29,413
Provision for income taxes
5,093
4,565
18,938
17,925
Financing expenses
5,504
5,712
16,532
16,141
Depreciation
9,758
9,762
30,525
29,502
Amortization of intangible assets
4,988
5,027
14,955
15,276
EBITDA
$
38,042
$
34,838
$
117,961
$
108,257
Transaction costs(1)
—
—
—
245
Earn-out consideration(2)
—
(53
)
—
7,863
Foreign currency losses(3)
2,490
3,494
2,192
1,316
Loss (gain) on disposal of assets
(10
)
640
(93
)
772
Severance costs(4)
—
60
487
1,628
Litigation costs(5)
4,412
—
7,030
—
Stock-based compensation expense(6)
10,742
13,946
32,434
42,725
Interest income(7)
(1,461
)
(473
)
(3,939
)
(1,025
)
Adjusted EBITDA
$
54,215
$
52,452
$
156,072
$
161,781
Net Income Margin(8)
5.0
%
4.3
%
5.1
%
4.3
%
Adjusted EBITDA Margin(8)
21.2
%
23.2
%
21.7
%
23.4
%
(1)
Represents professional service fees
related to 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 not designated as hedging instruments 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 only those litigation costs
that are considered non-recurring and outside of the ordinary
course of business.
(6)
Represents stock-based compensation
expense, as well as associated payroll tax.
(7)
Represents interest earned on short-term
savings, time-deposits and money market funds.
(8)
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,
2024
2023
2024
2023
Net income
$
12,699
$
9,772
$
37,011
$
29,413
Amortization of intangible assets
4,988
5,027
14,955
15,276
Transaction costs(1)
—
—
—
245
Earn-out consideration(2)
—
(53
)
—
7,863
Foreign currency losses(3)
2,490
3,494
2,192
1,316
Loss (gain) on disposal of assets
(10
)
640
(93
)
772
Severance costs(4)
—
60
487
1,628
Litigation costs(5)
4,412
—
7,030
—
Stock-based compensation expense(6)
10,742
13,946
32,434
42,725
Tax impacts of adjustments(7)
(1,044
)
(2,925
)
(3,832
)
(4,944
)
Adjusted Net Income
$
34,277
$
29,961
$
90,184
$
94,294
Net Income Margin(8)
5.0
%
4.3
%
5.1
%
4.3
%
Adjusted Net Income Margin(8)
13.4
%
13.3
%
12.5
%
13.7
%
(1)
Represents professional service fees
related to 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 not designated as hedging instruments 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 only those litigation costs
that are considered non-recurring and outside of the ordinary
course of business.
(6)
Represents stock-based compensation
expense, as well as associated payroll tax.
(7)
Represents tax impacts of adjustments to
net income which resulted in a tax benefit during the period,
including stock-based compensation expense, earn-out consideration,
litigation costs and severance. After these adjustments, we applied
a non-GAAP effective tax rate of 18.6% and 26.5% for the three
months ended September 30, 2024 and 2023, respectively, and 23.7%
and 23.0% for the nine months ended September 30, 2024 and 2023,
respectively, to non-GAAP income before income taxes.
(8)
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,
2024
2023
2024
2023
GAAP diluted EPS
$
0.14
$
0.10
$
0.40
$
0.30
Per share adjustments to net income(1)
0.23
0.22
0.58
0.66
Adjusted EPS
$
0.37
$
0.32
$
0.98
$
0.96
Weighted-average common shares outstanding
– diluted
92,579,919
94,035,111
92,019,911
97,729,230
(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,
2024
2023
2024
2023
Net cash provided by operating
activities
$
17,019
$
21,682
$
98,230
$
103,895
Purchase of property and equipment
(10,733
)
(7,859
)
(18,821
)
(22,904
)
Free Cash Flow
$
6,286
$
13,823
$
79,409
$
80,991
Payment for earn-out consideration
—
18,341
—
18,341
Payment for litigation costs
$
2,811
$
—
$
2,811
$
—
Adjusted Free Cash Flow
$
9,097
$
32,164
$
82,220
$
99,332
Conversion of Adjusted EBITDA to Free Cash
Flow(1)
11.6
%
26.4
%
50.9
%
50.1
%
Conversion of Adjusted EBITDA to Adjusted
Free Cash Flow(1)
16.8
%
61.3
%
52.7
%
61.4
%
(1)
Conversion of Adjusted EBITDA to Free Cash
Flow represents Free Cash Flow divided by Adjusted EBITDA
Conversion of Adjusted EBITDA to Adjusted Free Cash Flow represents
Adjusted Free Cash Flow 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, certain non-recurring litigation costs,
stock-based compensation expense and associated employer payroll
tax and interest income, 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, certain non-recurring litigation costs, stock-based
compensation expense and associated employer payroll tax 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. 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.
Adjusted Free Cash Flow is a non-GAAP liquidity measure that
represents Free Cash Flow before the payment of earn-out
consideration and certain litigation costs, that are considered
non-recurring and outside of the ordinary course of business, 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 these supplementary adjustments to
Free Cash Flow are appropriate to provide additional information to
investors about these unusual items that we do not expect to
continue at the same level in the future.
Conversion of Adjusted EBITDA to Free Cash Flow represents Free
Cash Flow divided by Adjusted EBITDA. Conversion of Adjusted EBITDA
to Adjusted Free Cash Flow represents Adjusted Free Cash Flow
divided by Adjusted EBITDA.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107389315/en/
Investor Contact Trent Thrash IR@taskus.com
Media Contact Heidi Lemmetyinen
heidi.lemmetyinen@taskus.com
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