On August 8, 2024, TaskUs Inc (TASK, Financial) released its 8-K filing for the second quarter ended June 30, 2024. TaskUs Inc is a provider of outsourced digital services and next-generation customer experience to inventive and disruptive technology companies. It serves clients in the fastest-growing sectors, including social media, e-commerce, gaming, streaming media, food delivery and ridesharing, HiTech, FinTech, and HealthTech.
Q2 2024 Financial Performance
TaskUs Inc (TASK, Financial) reported total revenues of $237.9 million for Q2 2024, surpassing the analyst estimate of $231.45 million. The company achieved a GAAP net income of $12.6 million, translating to a GAAP net income margin of 5.3%. Non-GAAP Adjusted Net Income stood at $28.6 million, with a non-GAAP Adjusted Net Income margin of 12.0%. The GAAP diluted EPS was $0.14, while the non-GAAP Adjusted EPS was $0.31, exceeding the estimated earnings per share of $0.29.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Service Revenue | $237.9 million | $229.2 million | 3.8% |
| GAAP Net Income | $12.6 million | $10.1 million | 24.3% |
| GAAP Diluted EPS | $0.14 | $0.10 | 40.0% |
| Adjusted EBITDA | $51.3 million | $54.3 million | -5.6% |
| Free Cash Flow | $25.5 million | $28.7 million | -11.2% |
Operational Highlights
TaskUs Inc (TASK, Financial) delivered 3.8% year-over-year revenue growth, outpacing the top-end of its guidance by nearly $6 million. The company revised its revenue guidance upward, now anticipating full-year revenue growth of 3.3% to 5.5%. TaskUs maintained strong sales momentum with its highest quarterly bookings since 2022 and added 2,100 teammates since the first quarter, ending Q2 2024 with 51,700 teammates.
Thanks to our team's tireless efforts over the past 18 months, we have returned to year-over-year revenue growth, delivering nearly 4% growth in the second quarter," said Co-Founder and CEO, Bryce Maddock. "Our investments in sales and marketing are yielding results, with Q2 marking our best bookings quarter since 2022. We are confident that our growth rate will continue to accelerate in Q3 and Q4. Consequently, we are raising both the bottom and top ends of our annual revenue guidance and now expect revenue of $955 to $975 million for the year."
Financial Statements Overview
From the income statement, TaskUs Inc (TASK, Financial) reported operating income of $22.7 million, up from $22.2 million in Q2 2023. The balance sheet showed total assets of $886.1 million, with cash and cash equivalents of $171.1 million. The company’s net cash provided by operating activities was $30.0 million, and free cash flow was $25.5 million, reflecting a 49.8% conversion of Adjusted EBITDA to Free Cash Flow.
Outlook and Future Guidance
For Q3 2024, TaskUs Inc (TASK, Financial) expects revenue between $244 million and $246 million, with an Adjusted EBITDA margin of approximately 21.5%. For the full year 2024, the company anticipates revenue between $955 million and $975 million, reflecting a year-over-year growth rate of 4.4% at the midpoint. The full-year Adjusted EBITDA margin is expected to be around 22%, with free cash flow projected to be approximately $120 million.
In Q2, we saw growth from both existing clients and strong new client revenue, and continued expanding our footprint within the FinTech, HealthTech, and Generative AI sectors. We generated $237.9 million in revenue, beating the top end of our guidance by approximately $6 million," said Balaji Sekar, Chief Financial Officer. "Our Adjusted EBITDA margin was slightly below guidance partially due to ramp expenses from higher than expected revenue growth. We now anticipate approximately 22% full-year 2024 Adjusted EBITDA margin and $120 million in free cash flow."
TaskUs Inc (TASK, Financial) continues to demonstrate resilience and growth in a competitive market, driven by its strategic investments and expanding client base. The upward revision of its annual revenue guidance reflects the company's confidence in sustaining its growth trajectory.
Explore the complete 8-K earnings release (here) from TaskUs Inc for further details.
