08/08/2022 | Press release | Distributed by Public on 08/09/2022 01:42
Index |
Disclaimer |
Statements of Operations |
Balance Sheets |
Statements of Cash Flows QTD |
Statements of Cash Flows YTD |
Non-GAAP Financial Measures |
Operational & Revenue Data |
This Investor Metrics File 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 current macroeconomic environment and the COVID-19 global pandemic on our business, and other non-historical statements. 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 significant clients; our failure to cost-effectively acquire new, high-growth 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; global economic and political conditions, especially in the social media and meal delivery and transport industries from which we generate significant revenue; unauthorized or improper disclosure of personal or other sensitive information, or security breaches and incidents; negative publicity or liability or difficulty retaining and recruiting employees; our failure to detect and deter criminal or fraudulent activities or other misconduct by our employees; the dependence of our business on our international operations, particularly in the Philippines and India; our failure to comply with applicable privacy and data security laws and regulations; substantial increases in the costs of technology and telecommunications services or our inability to attract and retain the necessary technologists; our inability to adapt our services and solutions to changes in technology and client expectations; 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; the ongoing COVID-19 pandemic, including the resulting global economic uncertainty and measures taken in response to the pandemic; 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, 2021 (the "Annual Report") filed with the Securities and Exchange Commission (the "SEC") on March 9, 2022, 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 review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law. This Investor Metrics File includes certain financial measures not presented in accordance with generally accepted accounting principles in the United States ("GAAP"), including Adjusted Net Income, Adjusted Net Income Margin, Adjusted Earnings Per Share, EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow and Conversion of Adjusted EBITDA, which are used by management in making operating decisions, allocating financial resources, and internal planning and forecasting, and for business strategy purposes, have certain limitations, and should not be construed as alternatives to financial measures determined in accordance with GAAP. The non-GAAP measures as defined by us may not be comparable to similar non-GAAP measures presented by other companies. Our presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that our future results will be unaffected by other unusual or non-recurring items. A reconciliation is provided elsewhere in this Investor Metrics File for each historical non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. For further details, including definitions for the non-GAAP measures used in this Investor Metrics File, please see the Company's Current Report on Form 8-K filed with the SEC on August 8, 2022. |
TASKUS, INC. | |||||||||||||
Consolidated Statements of Operations | |||||||||||||
(in thousands, except share and per share data) | |||||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | ||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | ||||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | |
Service revenue | $ 359,681 | $ 102,429 | $ 114,400 | $ 122,425 | $ 138,792 | $ 478,046 | $ 152,871 | $ 180,022 | $ 201,053 | $ 226,757 | $ 760,703 | $ 239,680 | $ 246,459 |
Operating expenses: | |||||||||||||
Cost of services | 194,786 | 61,783 | 64,135 | 65,378 | 79,214 | 270,510 | 88,030 | 103,798 | 112,423 | 127,485 | 431,736 | 141,282 | 143,538 |
Selling, general, and administrative expense | 90,630 | 25,731 | 25,709 | 32,190 | 29,889 | 113,519 | 31,498 | 177,810 | 60,342 | 65,662 | 335,312 | 64,247 | 68,919 |
Depreciation | 16,329 | 4,714 | 5,815 | 3,696 | 5,930 | 20,155 | 6,203 | 6,729 | 7,422 | 8,684 | 29,038 | 8,901 | 9,657 |
Amortization of intangible assets | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,711 | 4,967 |
Loss (gain) on disposal of assets | 2,227 | (5) | - | 155 | 966 | 1,116 | 27 | 1 | 26 | (2) | 52 | (15) | 5 |
Contingent consideration | - | - | 3,570 | - | - | 3,570 | - | - | - | - | - | - | - |
Total operating expenses | 322,819 | 96,935 | 103,941 | 106,130 | 120,711 | 427,717 | 130,470 | 293,050 | 184,924 | 206,541 | 814,985 | 219,126 | 227,086 |
Operating income (loss) | 36,862 | 5,494 | 10,459 | 16,295 | 18,081 | 50,329 | 22,401 | (113,028) | 16,129 | 20,216 | (54,282) | 20,554 | 19,373 |
Other expense (income) | (2,013) | 1,397 | (1,137) | 628 | (2,460) | (1,572) | 754 | (1,659) | 1,204 | (122) | 177 | 1,053 | 7,377 |
Financing expenses | 9,346 | 2,243 | 1,959 | 1,647 | 1,633 | 7,482 | 1,581 | 1,594 | 1,633 | 1,696 | 6,504 | 1,602 | 2,204 |
Income (loss) before income taxes | 29,529 | 1,854 | 9,637 | 14,020 | 18,908 | 44,419 | 20,066 | (112,963) | 13,292 | 18,642 | (60,963) | 17,899 | 9,792 |
Provision for (benefit from) income taxes | (4,411) | 339 | 1,629 | 2,564 | 5,354 | 9,886 | 3,559 | (7,020) | 1,656 | (460) | (2,265) | 6,313 | 2,063 |
Net income (loss) | $ 33,940 | $ 1,515 | $ 8,008 | $ 11,456 | $ 13,554 | $ 34,533 | $ 16,507 | $ (105,943) | $ 11,636 | $ 19,102 | $ (58,698) | $ 11,586 | $ 7,729 |
Net income (loss) per common share: | |||||||||||||
Basic and diluted | $ 0.37 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.15 | $ 0.38 | $ 0.18 | $ (1.14) | $ 0.12 | $ 0.20 | $ (0.62) | $ 0.12 | $ 0.08 |
Diluted | $ 0.37 | $ 0.02 | $ 0.09 | $ 0.12 | $ 0.15 | $ 0.38 | $ 0.18 | $ (1.14) | $ 0.11 | $ 0.17 | $ (0.62) | $ 0.11 | $ 0.07 |
Weighted-average number of common shares outstanding: | |||||||||||||
Basic and diluted | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 92,957,493 | 97,290,174 | 97,343,859 | 94,832,137 | 97,481,412 | 97,783,809 |
Diluted | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 92,957,493 | 109,426,011 | 110,513,820 | 94,832,137 | 104,122,026 | 103,177,186 |
TASKUS, INC. | |||||||
Consolidated Balance Sheets | |||||||
(in thousands) | |||||||
December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | |
2020 | 2021 | 2021 | 2021 | 2021 | 2022 (1) | 2022 | |
Assets | |||||||
Current assets: | |||||||
Cash | $ 107,728 | $ 135,493 | $ 195,927 | $ 61,330 | $ 63,584 | $ 77,074 | $ 104,734 |
Accounts receivable, net of allowance for doubtful accounts | 87,782 | 91,827 | 127,867 | 157,605 | 162,895 | 172,391 | 180,445 |
Other receivables | 105 | 390 | 439 | 691 | 597 | 669 | 957 |
Prepaid expenses | 13,032 | 11,553 | 9,667 | 8,654 | 10,939 | 12,040 | 15,347 |
Income tax receivable | 1,606 | - | - | 2,232 | 3,863 | 160 | 10,758 |
Other current assets | 1,051 | 623 | 2,471 | 2,729 | 4,428 | 5,218 | 4,813 |
Total current assets | 211,304 | 239,886 | 336,371 | 233,241 | 246,306 | 267,552 | 317,054 |
Noncurrent assets: | |||||||
Property and equipment, net | 56,957 | 56,974 | 63,060 | 72,143 | 80,046 | 87,639 | 82,889 |
Operating lease right-of-use assets | - | - | - | - | - | 41,485 | 37,841 |
Deferred tax assets | 585 | 568 | 575 | 539 | 1,441 | 1,442 | 1,377 |
Intangibles | 240,295 | 235,583 | 230,871 | 226,160 | 221,448 | 216,737 | 222,934 |
Goodwill | 195,735 | 195,735 | 195,735 | 195,735 | 195,735 | 195,735 | 216,567 |
Other noncurrent assets | 2,630 | 2,899 | 3,006 | 3,714 | 5,022 | 4,764 | 4,818 |
Total noncurrent assets | 496,202 | 491,759 | 493,247 | 498,291 | 503,692 | 547,802 | 566,426 |
Total assets | $ 707,506 | $ 731,645 | $ 829,618 | $ 731,532 | $ 749,998 | $ 815,354 | $ 883,480 |
Liabilities and Shareholders' Equity | |||||||
Liabilities: | |||||||
Current liabilities: | |||||||
Accounts payable and accrued liabilities | $ 41,935 | $ 38,758 | $ 43,494 | $ 44,767 | $ 40,890 | $ 39,774 | $ 44,738 |
Accrued payroll and employee-related liabilities | 21,994 | 30,578 | 171,690 | 43,920 | 36,670 | 34,716 | 42,651 |
Current portion of debt | 45,984 | 47,296 | 48,510 | 49,822 | 51,135 | 52,447 | 86,260 |
Current portion of operating lease liabilities | - | - | - | - | - | 12,752 | 11,584 |
Current portion of income tax payable | - | 3,413 | 1,586 | 2,152 | 2,416 | 3,348 | 3,140 |
Deferred revenue | 4,711 | 5,586 | 5,810 | 6,847 | 4,095 | 4,873 | 3,674 |
Deferred rent | 218 | 89 | 303 | 394 | 735 | - | - |
Total current liabilities | 114,842 | 125,720 | 271,393 | 147,902 | 135,941 | 147,910 | 192,047 |
Noncurrent liabilities: | |||||||
Income tax payable | 2,988 | 2,988 | 2,988 | 2,988 | 2,886 | 2,886 | 2,545 |
Long-term debt | 198,768 | 196,257 | 193,525 | 191,039 | 187,240 | 183,441 | 179,643 |
Operating lease liabilities | - | - | - | - | - | 31,704 | 28,881 |
Deferred rent | 2,194 | 2,315 | 2,573 | 2,735 | 2,749 | - | - |
Accrued payroll and employee-related liabilities | 2,641 | 2,640 | 2,640 | 2,640 | 1,813 | 2,078 | 2,244 |
Deferred tax liabilities | 50,936 | 50,936 | 40,474 | 41,244 | 40,235 | 40,235 | 41,531 |
Other Noncurrent liabilities | - | - | - | - | - | - | 2,103 |
Total noncurrent liabilities | 257,527 | 255,136 | 242,200 | 240,646 | 234,923 | 260,344 | 256,947 |
Total liabilities | 372,369 | 380,856 | 513,593 | 388,548 | 370,864 | 408,254 | 448,994 |
Total shareholders' equity | 335,137 | 350,789 | 316,025 | 342,984 | 379,134 | 407,100 | 434,486 |
Total liabilities and shareholders' equity | $ 707,506 | $ 731,645 | $ 829,618 | $ 731,532 | $ 749,998 | $ 815,354 | $ 883,480 |
(1) Restated for the adoption of ASU 2016-02, Leases (Topic 842) |
TASKUS, INC. | ||||||||||||||
Consolidated Statements of Cash Flows | ||||||||||||||
(in thousands) | ||||||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | |||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 (1) | 2022 | 2022 | 2022 |
Cash flows from operating activities: | ||||||||||||||
Net income (loss) | $ 33,940 | $ 1,515 | $ 8,008 | $ 11,456 | $ 13,554 | $ 34,533 | $ 16,507 | $ (105,943) | $ 11,636 | $ 19,102 | $ (58,698) | $ 11,586 | $ 7,729 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||||||||||||
Depreciation | 16,319 | 4,696 | 5,814 | 3,710 | 5,929 | 20,149 | 6,203 | 6,729 | 7,422 | 8,684 | 29,038 | 8,901 | 9,657 | |
Amortization of intangibles | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,711 | 4,967 | |
Amortization of debt financing fees | 2,526 | 44 | 184 | 115 | 114 | 457 | 114 | 133 | 140 | 139 | 526 | 139 | 139 | |
Loss (gain) on disposal of assets | 2,227 | (5) | - | 155 | 966 | 1,116 | 27 | 1 | 26 | (2) | 52 | (15) | 5 | |
Provision for losses on accounts receivable | 65 | 1,071 | 226 | 932 | (2) | 2,227 | 231 | 234 | 240 | 353 | 1,058 | 479 | 450 | |
Unrealized losses (gains) on forward contracts | (1,069) | 1,452 | (1,274) | 1,161 | (1,255) | 84 | 1,820 | (90) | 4,101 | (1,258) | 4,573 | 759 | 6,693 | |
Deferred taxes | (8,838) | - | (2,157) | (719) | (3,620) | (6,496) | - | (10,462) | 770 | (1,785) | (11,477) | (19) | (28) | |
Stock-based compensation expense | - | - | - | - | - | - | - | 5,771 | 19,243 | 21,175 | 46,189 | 19,605 | 18,933 | |
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | (13,046) | (9,849) | (12,158) | (3,438) | (6,561) | (32,006) | (6,106) | (35,089) | (29,365) | (5,643) | (76,203) | (9,979) | (6,239) | |
Other receivables, prepaid expenses, and other current assets | (3,702) | (330) | (100) | 420 | (3,758) | (3,768) | 1,558 | (5,956) | (355) | (3,858) | (8,611) | (2,478) | (3,868) | |
Operating lease right-of-use assets | - | - | - | - | - | - | - | - | - | - | - | 3,226 | 3,308 | |
Other noncurrent assets | (457) | (224) | (119) | (54) | 330 | (67) | (297) | (118) | (796) | (1,169) | (2,380) | (223) | 95 | |
Accounts payable and accrued liabilities | (2,060) | (444) | 8,420 | 1,350 | 4,209 | 13,535 | 471 | 5,066 | (744) | (300) | 4,493 | (1,071) | 1,608 | |
Accrued payroll and employee-related liabilities | 2,593 | (546) | 4,549 | 8,785 | (6,119) | 6,669 | 8,755 | 141,788 | (126,019) | (8,074) | 16,450 | (1,392) | 8,054 | |
Operating lease liabilities and deferred rent | 280 | 68 | 472 | (71) | (860) | (391) | 224 | 278 | 332 | 361 | 1,195 | (2,804) | (3,305) | |
Income tax payable | (3,652) | 108 | 2,788 | (6,239) | 4,724 | 1,381 | 5,037 | (1,733) | (1,484) | (807) | 1,013 | 4,686 | (10,927) | |
Deferred revenue | (184) | (214) | 1,184 | 752 | 881 | 2,603 | 666 | 434 | 1,039 | (878) | 1,261 | 779 | (1,195) | |
Net cash provided by (used in) operating activities | 43,789 | 2,054 | 20,549 | 23,026 | 13,244 | 58,873 | 39,922 | 5,755 | (109,103) | 30,752 | (32,674) | 36,890 | 36,076 | |
Cash flows from investing activities: | ||||||||||||||
Purchase of property and equipment | (20,045) | (8,612) | (10,203) | (3,071) | (6,997) | (28,883) | (10,127) | (13,326) | (15,150) | (20,760) | (59,363) | (17,770) | (11,587) | |
Acquisition, net of cash acquired | - | - | - | - | - | - | - | - | - | - | - | - | (23,235) | |
Net cash used in investing activities | (20,045) | (8,612) | (10,203) | (3,071) | (6,997) | (28,883) | (10,127) | (13,326) | (15,150) | (20,760) | (59,363) | (17,770) | (34,822) | |
Cash flows from financing activities: | ||||||||||||||
Proceeds from borrowings, Revolving credit facility | - | 39,878 | - | - | - | 39,878 | - | - | - | - | - | - | 32,500 | |
Proceeds from long-term debt | 210,000 | - | - | - | - | - | - | - | - | - | - | - | - | |
Settlement of 2018 Credit Agreement | (84,575) | - | - | - | - | - | - | - | - | - | - | - | - | |
Payments on long-term debt | (950) | (525) | - | (1,050) | (1,313) | (2,888) | (1,313) | (1,312) | (1,313) | (2,625) | (6,563) | (2,625) | (2,625) | |
Payments for debt financing fees | (2,285) | - | - | - | - | - | - | (340) | - | - | (340) | - | - | |
Proceeds from issuance of common stock, net of underwriters' fees | - | - | - | - | - | - | - | 120,698 | - | - | 120,698 | - | - | |
Payments for offering costs | - | - | - | - | - | - | - | - | (4,327) | (471) | (4,798) | - | - | |
Proceeds from employee stock plans | - | - | - | - | - | - | - | - | - | - | - | - | 920 | |
Payments for taxes related to net share settlement | - | - | - | - | - | - | - | - | - | (4,607) | (4,607) | (1,469) | (1,308) | |
Distribution of dividends | (135,000) | - | - | - | - | - | - | (50,000) | - | - | (50,000) | - | - | |
Net cash provided by (used in) financing activities | (12,810) | 39,353 | - | (1,050) | (1,313) | 36,990 | (1,313) | 69,046 | (5,640) | (7,703) | 54,390 | (4,094) | 29,487 | |
Increase (decrease) in cash and cash equivalents | 10,934 | 32,795 | 10,346 | 18,905 | 4,934 | 66,980 | 28,482 | 61,475 | (129,893) | 2,289 | (37,647) | 15,026 | 30,741 | |
Effect of exchange rate changes on cash | 1,326 | 402 | 1,027 | 1,291 | 487 | 3,207 | (717) | (1,041) | (4,704) | (35) | (6,497) | (1,536) | (3,081) | |
Cash and cash equivalents at beginning of period | 25,281 | 37,541 | 70,738 | 82,111 | 102,307 | 37,541 | 107,728 | 135,493 | 195,927 | 61,330 | 107,728 | 63,584 | 77,074 | |
Cash and cash equivalents at end of period | $ 37,541 | $ 70,738 | $ 82,111 | $ 102,307 | $ 107,728 | $ 107,728 | $ 135,493 | $ 195,927 | $ 61,330 | $ 63,584 | $ 63,584 | $ 77,074 | $ 104,734 | |
(1) Restated for the adoption of ASU 2016-02, Leases (Topic 842) |
TASKUS, INC. | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
(in thousands) | |||||||||||
Year ended December 31, | Three Months Ended | Six Months Ended | Nine Months Ended | Year ended December 31, | Three Months Ended | Six Months Ended | Nine Months Ended | Year ended December 31, | Three months ended | Six Months Ended | |
March 31, | June 30, | September 30, | March 31, | June 30, | September 30, | March 31, | June 30, | ||||
2019 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2022 (1) | 2022 | |
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ 33,940 | $ 1,515 | $ 9,523 | $ 20,979 | $ 34,533 | $ 16,507 | $ (89,436) | $ (77,800) | $ (58,698) | $ 11,586 | $ 19,315 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 16,319 | 4,696 | 10,510 | 14,220 | 20,149 | 6,203 | 12,932 | 20,354 | 29,038 | 8,901 | 18,558 |
Amortization of intangibles | 18,847 | 4,712 | 9,424 | 14,135 | 18,847 | 4,712 | 9,424 | 14,135 | 18,847 | 4,711 | 9,678 |
Amortization of debt financing fees | 2,526 | 44 | 228 | 343 | 457 | 114 | 247 | 387 | 526 | 139 | 278 |
Loss (gain)on disposal of assets | 2,227 | (5) | (5) | 150 | 1,116 | 27 | 28 | 54 | 52 | (15) | (10) |
Provision for losses on accounts receivable | 65 | 1,071 | 1,297 | 2,229 | 2,227 | 231 | 465 | 705 | 1,058 | 479 | 929 |
Unrealized losses (gains) on forward contracts | (1,069) | 1,452 | 178 | 1,339 | 84 | 1,820 | 1,730 | 5,831 | 4,573 | 759 | 7,452 |
Deferred taxes | (8,838) | - | (2,157) | (2,876) | (6,496) | - | (10,462) | (9,692) | (11,477) | (19) | (47) |
Stock-based compensation expense | - | - | - | - | - | - | 5,771 | 25,014 | 46,189 | 19,605 | 38,538 |
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (13,046) | (9,849) | (22,007) | (25,445) | (32,006) | (6,106) | (41,195) | (70,560) | (76,203) | (9,979) | (16,218) |
Other receivables, prepaid expenses, and other current assets | (3,702) | (330) | (430) | (10) | (3,768) | 1,558 | (4,398) | (4,753) | (8,611) | (2,478) | (6,346) |
Operating lease right-of-use assets | - | - | - | - | - | - | - | - | - | 3,226 | 6,534 |
Other noncurrent assets | (457) | (224) | (343) | (397) | (67) | (297) | (415) | (1,211) | (2,380) | (223) | (128) |
Accounts payable and accrued liabilities | (2,060) | (444) | 7,976 | 9,326 | 13,535 | 471 | 5,537 | 4,793 | 4,493 | (1,071) | 537 |
Accrued payroll and employee-related liabilities | 2,593 | (546) | 4,003 | 12,788 | 6,669 | 8,755 | 150,543 | 24,524 | 16,450 | (1,392) | 6,662 |
Operating lease liabilities and deferred rent | 280 | 68 | 540 | 469 | (391) | 224 | 502 | 834 | 1,195 | (2,804) | (6,109) |
Income tax payable | (3,652) | 108 | 2,896 | (3,343) | 1,381 | 5,037 | 3,304 | 1,820 | 1,013 | 4,686 | (6,241) |
Deferred revenue | (184) | (214) | 970 | 1,722 | 2,603 | 666 | 1,100 | 2,139 | 1,261 | 779 | (416) |
Net cash provided by (used in) operating activities | 43,789 | 2,054 | 22,603 | 45,629 | 58,873 | 39,922 | 45,677 | (63,426) | (32,674) | 36,890 | 72,966 |
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (20,045) | (8,612) | (18,815) | (21,886) | (28,883) | (10,127) | (23,453) | (38,603) | (59,363) | (17,770) | (29,357) |
Acquisition, net of cash acquired | - | - | - | - | - | - | - | - | - | - | (23,235) |
Net cash used in investing activities | (20,045) | (8,612) | (18,815) | (21,886) | (28,883) | (10,127) | (23,453) | (38,603) | (59,363) | (17,770) | (52,592) |
Cash flows from financing activities: | |||||||||||
Proceeds from borrowings, Revolving credit facility | - | 39,878 | 39,878 | 39,878 | 39,878 | - | - | - | - | - | 32,500 |
Proceeds from long-term debt | 210,000 | - | - | - | - | - | - | - | - | - | - |
Settlement of 2018 Credit Agreement | (84,575) | - | - | - | - | - | - | - | - | - | - |
Payments on long-term debt | (950) | (525) | (525) | (1,575) | (2,888) | (1,313) | (2,625) | (3,938) | (6,563) | (2,625) | (5,250) |
Payments for debt financing fees | (2,285) | - | - | - | - | - | (340) | (340) | (340) | - | - |
Proceeds from issuance of common stock, net of underwriters' fees | - | - | - | - | - | - | 120,698 | 120,698 | 120,698 | - | - |
Payments for offering costs | - | - | - | - | - | - | - | (4,327) | (4,798) | - | - |
Proceeds from employee stock plans | - | - | - | - | - | - | - | - | - | - | 920 |
Payments for taxes related to net share settlement | - | - | - | - | - | - | - | - | (4,607) | (1,469) | (2,777) |
Distribution of dividends | (135,000) | - | - | - | - | - | (50,000) | (50,000) | (50,000) | - | - |
Net cash provided by (used in) financing activities | (12,810) | 39,353 | 39,353 | 38,303 | 36,990 | (1,313) | 67,733 | 62,093 | 54,390 | (4,094) | 25,393 |
Increase (decrease) in cash and cash equivalents | 10,934 | 32,795 | 43,141 | 62,046 | 66,980 | 28,482 | 89,957 | (39,936) | (37,647) | 15,026 | 45,767 |
Effect of exchange rate changes on cash | 1,326 | 402 | 1,429 | 2,720 | 3,207 | (717) | (1,758) | (6,462) | (6,497) | (1,536) | (4,617) |
Cash and cash equivalents at beginning of period | 25,281 | 37,541 | 37,541 | 37,541 | 37,541 | 107,728 | 107,728 | 107,728 | 107,728 | 63,584 | 63,584 |
Cash and cash equivalents at end of period | $ 37,541 | $ 70,738 | $ 82,111 | $ 102,307 | $ 107,728 | $ 135,493 | $ 195,927 | $ 61,330 | $ 63,584 | $ 77,074 | $ 104,734 |
(1) Restated for the adoption of ASU 2016-02, Leases (Topic 842) |
TASKUS, INC. | |||||||||||||||||||||||
Non-GAAP Financial Measures | |||||||||||||||||||||||
(in thousands, except % and share and per share data) | |||||||||||||||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | |||||||||
Net income (loss) | $ 33,940 | $ 1,515 | $ 8,008 | $ 11,456 | $ 13,554 | $ 34,533 | $ 16,507 | $ (105,943) | $ 11,636 | $ 19,102 | $ (58,698) | $ 11,586 | $ 7,729 | ||||||||||
Amortization of intangible assets | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,711 | 4,967 | ||||||||||
Transaction costs | - | - | - | 385 | 511 | 896 | 3,329 | 2,432 | 488 | 720 | 6,969 | 192 | 357 | ||||||||||
Earn-out consideration | - | - | - | - | - | - | - | - | - | - | - | - | 1,328 | ||||||||||
Foreign currency losses (gains) | (2,039) | 1,404 | (1,114) | 637 | (2,438) | (1,511) | 787 | (1,595) | 1,285 | 332 | 809 | 1,153 | 7,501 | ||||||||||
Loss (gain) on disposal of assets | 2,227 | (5) | - | 155 | 966 | 1,116 | 27 | 1 | 26 | (2) | 52 | (15) | 5 | ||||||||||
COVID-19 related expenses | - | 2,439 | 1,320 | 1,309 | 2,473 | 7,541 | 2,394 | 3,711 | - | - | 6,105 | - | - | ||||||||||
Severance costs | - | 98 | 472 | 2,057 | (70) | 2,557 | - | - | - | - | - | - | 821 | ||||||||||
Lease termination costs | - | - | - | 1,500 | 315 | 1,815 | - | - | - | - | - | - | - | ||||||||||
Natural disaster costs | - | - | - | - | - | - | 442 | - | - | - | 442 | - | - | ||||||||||
Contingent consideration | - | - | 3,570 | - | - | 3,570 | - | - | - | - | - | - | - | ||||||||||
Phantom shares bonus | - | - | - | - | - | - | - | 129,362 | - | - | 129,362 | - | - | ||||||||||
Teammate IPO bonus | - | - | - | - | - | - | - | 4,361 | - | - | 4,361 | - | - | ||||||||||
Stock-based compensation expense | - | - | - | - | - | - | - | 5,771 | 19,243 | 21,370 | 46,384 | 19,688 | 19,042 | ||||||||||
Tax impacts of adjustments | - | - | - | - | - | - | - | (11,440) | (4,632) | (9,172) | (25,244) | (2,350) | (3,008) | ||||||||||
Adjusted Net Income | $ 52,975 | $ 10,163 | $ 16,968 | $ 22,210 | $ 20,023 | $ 69,364 | $ 28,198 | $ 31,372 | $ 32,757 | $ 37,062 | $ 129,389 | $ 34,965 | $ 38,742 | ||||||||||
Net Income Margin | 9.4 % | 1.5 % | 7.0 % | 9.4 % | 9.8 % | 7.2 % | 10.8 % | (58.9)% | 5.8 % | 8.4 % | (7.7)% | 4.8 % | 3.1 % | ||||||||||
Adjusted Net Income Margin | 14.7 % | 9.9 % | 14.8 % | 18.1 % | 14.4 % | 14.5 % | 18.4 % | 17.4 % | 16.3 % | 16.3 % | 17.0 % | 14.6 % | 15.7 % | ||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | |||||||||
GAAP diluted EPS | $ 0.09 | $ 0.12 | $ 0.15 | $ 0.38 | $ 0.18 | $ (1.14) | $ 0.11 | $ 0.17 | $ (0.62) | $ 0.11 | $ 0.07 | ||||||||||||
Per share adjustments to net income (loss) | 0.09 | 0.12 | 0.07 | 0.38 | 0.13 | 1.48 | 0.19 | 0.17 | 1.98 | 0.23 | 0.31 | ||||||||||||
Per share adjustments for GAAP anti-dilutive shares | - | - | - | - | - | (0.02) | - | - | (0.10) | - | - | ||||||||||||
Adjusted EPS | $ 0.18 | $ 0.24 | $ 0.22 | $ 0.76 | $ 0.31 | $ 0.32 | $ 0.30 | $ 0.34 | $ 1.26 | $ 0.34 | $ 0.38 | ||||||||||||
Weighted-average common stock outstanding - diluted | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 92,957,493 | 109,426,011 | 110,513,820 | 94,832,137 | 104,122,026 | 103,177,186 | ||||||||||||
GAAP anti-dilutive shares | - | - | - | - | - | 4,599,736 | - | - | 7,476,384 | - | - | ||||||||||||
Adjusted weighted-average shares outstanding | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 91,737,020 | 97,557,229 | 109,426,011 | 110,513,820 | 102,308,521 | 104,122,026 | 103,177,186 | ||||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | |||||||||
Net income (loss) | $ 33,940 | $ 1,515 | $ 8,008 | $ 11,456 | $ 13,554 | $ 34,533 | $ 16,507 | $ (105,943) | $ 11,636 | $ 19,102 | $ (58,698) | $ 11,586 | $ 7,729 | ||||||||||
Provision for (benefit from) income taxes | (4,411) | 339 | 1,629 | 2,564 | 5,354 | 9,886 | 3,559 | (7,020) | 1,656 | (460) | (2,265) | 6,313 | 2,063 | ||||||||||
Financing expenses | 7,351 | 2,243 | 1,959 | 1,647 | 1,633 | 7,482 | 1,581 | 1,594 | 1,633 | 1,696 | 6,504 | 1,602 | 2,204 | ||||||||||
Depreciation | 16,329 | 4,714 | 5,815 | 3,696 | 5,930 | 20,155 | 6,203 | 6,729 | 7,422 | 8,684 | 29,038 | 8,901 | 9,657 | ||||||||||
Amortization of intangible assets | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,712 | 4,712 | 4,711 | 4,712 | 18,847 | 4,711 | 4,967 | ||||||||||
EBITDA | $ 72,056 | $ 13,523 | $ 22,123 | $ 24,074 | $ 31,183 | $ 90,903 | $ 32,562 | $ (99,928) | $ 27,058 | $ 33,734 | $ (6,574) | $ 33,113 | $ 26,620 | ||||||||||
Transaction costs | - | - | - | 385 | 511 | 896 | 3,329 | 2,432 | 488 | 720 | 6,969 | 192 | 357 | ||||||||||
Earn-out consideration | - | - | - | - | - | - | - | - | - | - | - | - | 1,328 | ||||||||||
Foreign currency losses (gains) | (2,039) | 1,404 | (1,114) | 637 | (2,438) | (1,511) | 787 | (1,595) | 1,285 | 332 | 809 | 1,153 | 7,501 | ||||||||||
Loss (gain) on disposal of assets | 2,227 | (5) | - | 155 | 966 | 1,116 | 27 | 1 | 26 | (2) | 52 | (15) | 5 | ||||||||||
Settlement of 2018 Credit Facility | 1,995 | - | - | - | - | - | - | - | - | - | - | - | - | ||||||||||
COVID-19 related expenses | - | 2,439 | 1,320 | 1,309 | 2,473 | 7,541 | 2,394 | 3,711 | - | - | 6,105 | - | - | ||||||||||
Severance costs | - | 98 | 472 | 2,057 | (70) | 2,557 | - | - | - | - | - | - | 821 | ||||||||||
Lease termination costs | - | - | - | 1,500 | 315 | 1,815 | - | - | - | - | - | - | - | ||||||||||
Natural disaster costs | - | - | - | - | - | - | 442 | - | - | - | 442 | - | - | ||||||||||
Contingent consideration | - | - | 3,570 | - | - | 3,570 | - | - | - | - | - | - | - | ||||||||||
Phantom shares bonus | - | - | - | - | - | - | - | 129,362 | - | - | 129,362 | - | - | ||||||||||
Teammate IPO bonus | - | - | - | - | - | - | - | 4,361 | - | - | 4,361 | - | - | ||||||||||
Stock-based compensation expense | - | - | - | - | - | - | - | 5,771 | 19,243 | 21,370 | 46,384 | 19,688 | 19,042 | ||||||||||
Adjusted EBITDA | $ 74,239 | $ 17,459 | $ 26,371 | $ 30,117 | $ 32,940 | $ 106,887 | $ 39,541 | $ 44,115 | $ 48,100 | $ 56,154 | $ 187,910 | $ 54,131 | $ 55,674 | ||||||||||
Net (Loss) Income Margin | 9.4 % | 1.5 % | 7.0 % | 9.4 % | 9.8 % | 7.2 % | 10.8 % | (58.9)% | 5.8 % | 8.4 % | (7.7)% | 4.8 % | 3.1 % | ||||||||||
Adjusted EBITDA Margin | 20.6 % | 17.0 % | 23.1 % | 24.6 % | 23.7 % | 22.4 % | 25.9 % | 24.5 % | 23.9 % | 24.8 % | 24.7 % | 22.6 % | 22.6 % | ||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | ||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||
2019 | 2020 | 2020 | 2020 | 2020 | 1905 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 | ||||||||
Net cash provided by (used in) operating activities | $ 43,789 | $ 2,054 | $ 20,549 | $ 23,026 | $ 13,244 | $ 58,873 | $ 39,922 | $ 5,755 | $ (109,103) | $ 30,752 | $ (32,674) | $ 36,890 | $ 36,076 | ||||||||||
Purchase of property and equipment | (20,045) | (8,612) | (10,203) | (3,071) | (6,997) | (28,883) | (10,127) | (13,326) | (15,150) | (20,760) | (59,363) | (17,770) | (11,587) | ||||||||||
Free Cash Flow | $ 23,744 | $ (6,558) | 0 | $ 10,346 | 0 | $ 19,955 | 0 | $ 6,247 | 0 | $ 29,990 | 0 | $ 29,795 | 0 | $ (7,571) | 0 | $ (124,253) | 0 | $ 9,992 | 0 | $ (92,037) | $ - | $ 19,120 | $ 24,489 |
Conversion of Adjusted EBITDA | 32.0 % | (37.6)% | 39.2 % | 66.3 % | 19.0 % | 28.1 % | 75.4 % | (17.2)% | (258.3)% | 17.8 % | (49.0)% | 35.3 % | 44.0 % |
TASKUS, INC. | ||||||||||||||
Operational & Revenue Data | ||||||||||||||
($ in thousands) | ||||||||||||||
Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | Year ended December 31, | Three months ended | |||||||||
March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | |||
2019 | 2020 | 2020 | 2020 | 2020 | 2020 | 2021 | 2021 | 2021 | 2021 | 2021 | 2022 | 2022 | 2022 | 2022 |
Employees (Approx. at Quarter-end) | ||||||||||||||
Philippines | 19,190 | 21,500 | 27,100 | 27,100 | ||||||||||
India | 3,160 | 4,200 | 6,000 | 6,000 | ||||||||||
United States | 4,020 | 4,200 | 4,800 | 4,800 | ||||||||||
Other | 1,130 | 1,600 | 2,200 | 2,200 | ||||||||||
Total | 18,400 | 23,600 | 27,500 | 31,500 | 35,600 | 40,100 | 40,100 | 45,800 | 45,300 | |||||
Client Concentration (% of total) | ||||||||||||||
Client #1 | 35 % | 31 % | 33 % | 33 % | 32 % | 32 % | 29 % | 27 % | 27 % | 25 % | 27 % | 24 % | 22 % | |
Client #2 | 11 % | 11 % | 16 % | 11 % | 11 % | 12 % | 11 % | 12 % | 11 % | Less than 10% | 11 % | 10 % | Less than 10% | |
Top 10 Clients | 74 % | 75 % | 73 % | 67 % | 66 % | 68 % | 64 % | 63 % | 61 % | 60 % | 62 % | 61 % | 58 % | |
Top 20 Clients | 84 % | 86 % | 85 % | 81 % | 80 % | 81 % | 78 % | 77 % | 76 % | 75 % | 76 % | 75 % | 73 % | |
Client Count | ||||||||||||||
Clients > $0.5 million | 57 | 72 | 93 | |||||||||||
Clients > $1 million | 46 | 72 | ||||||||||||
Clients > $10 million | 8 | 16 | ||||||||||||
Client wins | ||||||||||||||
New clients | 27 | 36 | 41 | |||||||||||
Clients who signed new statements of work | 38 | 69 | ||||||||||||
Client win rates | ||||||||||||||
New client win rate | 40 % | 56 % | 49 % | |||||||||||
Existing client win rate | 50 % | 58 % | 67 % | |||||||||||
Total client win rate | 45 % | 57 % | 60 % | |||||||||||
Net revenue retention rate | 139 % | 117 % | 141 % | |||||||||||
Revenue by Service Offering | ||||||||||||||
Digital Customer Experience | $ 206,471 | $ 65,217 | $ 71,345 | $ 76,255 | $ 87,607 | $ 300,424 | $ 99,711 | $ 113,566 | $ 125,310 | $ 148,092 | $ 486,679 | $ 159,731 | $ 167,420 | |
Content Security | 104,259 | 26,538 | 31,076 | 33,787 | 36,256 | 127,657 | 36,127 | 42,995 | 45,376 | 44,582 | 169,080 | 45,852 | 46,331 | |
AI Services | 48,951 | 10,674 | 11,979 | 12,383 | 14,929 | 49,965 | 17,033 | 23,461 | 30,367 | 34,083 | 104,944 | 34,097 | 32,708 | |
Service revenue | $ 359,681 | $ 102,429 | $ 114,400 | $ 122,425 | $ 138,792 | $ 478,046 | $ 152,871 | $ 180,022 | $ 201,053 | $ 226,757 | $ 760,703 | $ 239,680 | $ 246,459 | |
Revenue by Geographical Location | ||||||||||||||
Philippines | $ 208,983 | $ 55,874 | $ 62,842 | $ 69,369 | $ 79,602 | $ 267,687 | $ 84,578 | $ 95,681 | $ 103,837 | $ 118,244 | $ 402,340 | $ 120,080 | $ 124,322 | |
United States | 132,962 | 40,645 | 43,429 | 42,761 | 44,641 | 171,476 | 50,757 | 58,930 | 65,866 | 71,089 | 246,642 | 79,131 | 74,273 | |
Rest of World | 17,736 | 5,910 | 8,129 | 10,295 | 14,549 | 38,883 | 17,536 | 25,411 | 31,350 | 37,424 | 111,721 | 40,469 | 47,864 | |
Service revenue | $ 359,681 | $ 102,429 | $ 114,400 | $ 122,425 | $ 138,792 | $ 478,046 | $ 152,871 | $ 180,022 | $ 201,053 | $ 226,757 | $ 760,703 | $ 239,680 | $ 246,459 |