NASDAQ$TASK

TaskUs Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced results for the third quarter ended September 30, 2023.

TaskUs reported strong third-quarter performance, exceeding guidance with revenue of $225.6 million. The company's results were driven by new client signings and stronger-than-expected volumes from existing clients. GAAP net income was $9.8 million, with a GAAP diluted EPS of $0.10. The company repurchased 4.5 million shares and ended the quarter with 47,000 teammates.

  • Total revenues for the third quarter were $225.6 million.
  • GAAP net income reached $9.8 million, resulting in a net income margin of 4.3%.
  • Non-GAAP Adjusted EPS was reported at $0.32.
  • The company repurchased 4.5 million shares during the quarter.

Headline financials

Total Revenue

$226M

Previous: $232M-2.8%
EPS (adj)

$0.32

Previous: $0.35-8.6%
Adj. EBITDA Margin

23.5%

Previous: 23.9%-1.7%
Capital Expenditures

-$22.9M

Previous: -$36M+36.4%
Free Cash Flow

-$13.1M

Previous: -$30.6M+57.1%
Net Income

$9.77M

Previous: $5.37M+82.1%
Operating Income

$22.9M

Previous: $20.7M+10.7%
Gross Profit

-$130M

Previous: -$135M+3.3%
Cash & Equivalents

$115M

Previous: $122M-6.4%
Total Assets

$871M

Previous: $887M-1.9%
Stock-Based Comp

$13.8M

Previous: $16.2M-14.7%

Revenue & EPS history

TaskUs · Revenue · Quarterly

$226M

Q3 2023-2.8%vs Q3 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Forward guidance

For the fourth quarter of 2023, TaskUs expects revenue between $225 million and $227 million, and an adjusted EBITDA margin of approximately 22.5%. For the full year 2023, revenue is expected to be between $915 million and $917 million, with an adjusted EBITDA margin of approximately 23.3%. Free cash flow (excluding payment for earn-out consideration) is expected to be $115 million or greater.

Tailwinds

  • Revenue (in millions): $225 to $227 (Fourth Quarter)
  • Revenue (in millions): $915 to $917 (Full Year)
  • Adjusted EBITDA Margin: ~22.5% (Fourth Quarter)
  • Adjusted EBITDA Margin: ~23.3% (Full Year)
  • Free Cash Flow (excluding payment for earn-out consideration) (in millions): $115+ (Full Year)

Headwinds

  • Revenue change (YoY) at midpoint: (6.7)% (Fourth Quarter)
  • Revenue change (YoY) at midpoint: (4.6)% (Full Year)
  • 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.
  • 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.

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 Q3 2023

Historical avgQ3 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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