NASDAQ$TASK

TaskUs Inc. · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

TaskUs announced its Q2 2023 financial results, which reflected the impact of challenging market dynamics and a slowdown in client volumes.

TaskUs reported Q2 2023 total revenues of $229.2 million and GAAP net income of $10.1 million. The company signed several clients in the HealthTech space, began implementing TaskGPT for clients, and expanded with several large, global brands in nearshore geographies. However, continued volatility in the macro environment has impacted client volumes, leading to an updated full year outlook.

  • Total revenues for the second quarter were $229.2 million.
  • GAAP net income was $10.1 million, with a net income margin of 4.4%.
  • Non-GAAP Adjusted EPS was $0.32.
  • The company repurchased 3.2 million shares during the quarter.

Headline financials

Total Revenue

$229M

Previous: $246M-7.0%
EPS (adj)

$0.32

Previous: $0.38-15.8%
Adj. EBITDA Margin

23.8%

Previous: 22.6%+5.3%
Capital Expenditures

-$15M

Previous: -$29.4M+48.8%
Free Cash Flow

-$4.91M

Previous: -$21.6M+77.3%
Net Income

$10.1M

Previous: $7.73M+31.1%
Operating Income

$22.2M

Previous: $19.4M+14.4%
Gross Profit

-$134M

Previous: -$144M+7.0%
Cash & Equivalents

$154M

Previous: $105M+46.7%
Total Assets

$918M

Previous: $883M+3.9%
Stock-Based Comp

$15M

Previous: $18.9M-20.6%

Revenue & EPS history

TaskUs · Revenue · Quarterly

$229M

Q2 2023-7%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

For the third quarter of 2023, TaskUs expects revenue between $220 million and $222 million and an Adjusted EBITDA Margin of approximately 22.4%. For the full year 2023, TaskUs expects revenue between $900 million and $910 million, an Adjusted EBITDA Margin of approximately 23.0%, and Free Cash Flow of over $100 million (excluding heloo earn-out payment).

Tailwinds

  • Revenue (in millions): $220 to $222 (Third Quarter)
  • Revenue change (YoY) at midpoint: (4.8)% (Third Quarter)
  • Adjusted EBITDA Margin: ~22.4% (Third Quarter)
  • Revenue (in millions): $900 to $910 (Full Year)
  • Adjusted EBITDA Margin: ~23.0% (Full Year)

Headwinds

  • Revenue change (YoY) at midpoint: (5.8)% (Full Year)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+3.2%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.9%

Avg return

30 days after

65%

15 / 23 earnings

Positive

+29.1%

Q3 2022

Best reaction

-22.7%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.5%-8.3%-10.3%
Q4 2025+0.0%+2.7%-39.2%
Q3 2025+4.6%-5.3%-1.0%
Q1 2025+0.3%-0.8%-1.0%
Q4 2024-7.6%-13.4%-12.4%
Q3 2024+28.8%-0.1%+3.5%
Q2 2024+2.3%-11.3%-19.5%
Q1 2024+5.4%+12.2%+13.2%
Q4 2023+5.7%+4.0%-7.6%
Q3 2023+19.7%+25.2%+20.3%
Q2 2023-17.1%-13.6%-21.9%
Q1 2023+0.6%-6.8%+0.1%
Q4 2022-17.0%-11.9%-29.5%
Q3 2022+29.1%+31.3%+12.7%
Q2 2022-22.7%-29.4%-27.7%
Q1 2021-18.4%-3.1%-10.5%
Q1 2022-22.5%-12.1%-10.1%
Q4 2019+5.6%-3.4%+9.8%
Q4 2021+19.7%+10.3%+39.9%
Q3 2020-0.1%-7.6%-33.8%
Q3 2021+4.5%+4.4%-30.8%
Q4 2020+20.7%+22.4%+111.2%
Q2 2021+27.1%+29.1%+112.4%

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