x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-1586636 | |||||
State or other jurisdiction of incorporation or organization | I.R.S. Employer Identification No. | |||||
1650 Independence Drive, Suite 100 New Braunfels, Texas | 78132 | |||||
Address of principal executive offices | Zip Code |
Title of each class | Trading | Name of each exchange on which registered | ||||||||||||
Class A Common Stock, par value $0.01 per share | TASK | The Nasdaq Stock Market LLC |
Large accelerated filer | o | Accelerated filer | ||||||||||||||
Non-accelerated filer | x | Smaller reporting company | ||||||||||||||
Emerging growth company |
Page No. | ||||||||||
Financial Statements (Unaudited) | ||||||||||
Assets | September 30, 2021 | December 31, 2020 | |||||||||
Current assets: | |||||||||||
Cash | $ | 61,330 | $ | 107,728 | |||||||
Accounts receivable, net of allowance for doubtful accounts of $2,931 and $2,294, respectively | 157,605 | 87,782 | |||||||||
Other receivables | 691 | 105 | |||||||||
Prepaid expenses | 8,654 | 13,032 | |||||||||
Income tax receivable | 2,232 | 1,606 | |||||||||
Other current assets | 2,729 | 1,051 | |||||||||
Total current assets | 233,241 | 211,304 | |||||||||
Noncurrent assets: | |||||||||||
Property and equipment, net | 72,143 | 56,957 | |||||||||
Deferred tax assets | 539 | 585 | |||||||||
Intangibles | 226,160 | 240,295 | |||||||||
Goodwill | 195,735 | 195,735 | |||||||||
Other noncurrent assets | 3,714 | 2,630 | |||||||||
Total noncurrent assets | 498,291 | 496,202 | |||||||||
Total assets | $ | 731,532 | $ | 707,506 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 44,767 | $ | 41,935 | |||||||
Accrued payroll and employee-related liabilities | 43,920 | 21,994 | |||||||||
Current portion of debt | 49,822 | 45,984 | |||||||||
Current portion of income tax payable | 2,152 | — | |||||||||
Deferred revenue | 6,847 | 4,711 | |||||||||
Deferred rent | 394 | 218 | |||||||||
Total current liabilities | 147,902 | 114,842 | |||||||||
Noncurrent liabilities: | |||||||||||
Income tax payable | 2,988 | 2,988 | |||||||||
Long-term debt | 191,039 | 198,768 | |||||||||
Deferred rent | 2,735 | 2,194 | |||||||||
Accrued payroll and employee-related liabilities | 2,640 | 2,641 | |||||||||
Deferred tax liabilities | 41,244 | 50,936 | |||||||||
Total noncurrent liabilities | 240,646 | 257,527 | |||||||||
Total liabilities | 388,548 | 372,369 | |||||||||
Commitments and Contingencies (See Note 8) | 0 | 0 | |||||||||
Shareholders’ equity: | |||||||||||
Class A Common stock, $0.01 par value. Authorized 2,500,000,000; 15,180,000 and no shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 152 | — | |||||||||
Class B Convertible Common stock, $0.01 par value. Authorized 250,000,000; 82,110,174 and 91,737,020 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 821 | 917 | |||||||||
Additional paid-in capital | 539,060 | 398,202 | |||||||||
Accumulated deficit | (195,198) | (67,398) | |||||||||
Accumulated other comprehensive income (loss) | (1,851) | 3,416 | |||||||||
Total shareholders’ equity | 342,984 | 335,137 | |||||||||
Total liabilities and shareholders’ equity | $ | 731,532 | $ | 707,506 |
Assets | June 30, 2021 | December 31, 2020 | ||||||
Current assets: | ||||||||
Cash | $ | 195,927 | $ | 107,728 | ||||
Accounts receivable, net of allowance for doubtful accounts of $2,691 and $2,294, respectively | 127,867 | 87,782 | ||||||
Other receivables | 439 | 105 | ||||||
Prepaid expenses | 9,667 | 13,032 | ||||||
Income tax receivable | — | 1,606 | ||||||
Other current assets | 2,471 | 1,051 | ||||||
Total current assets | 336,371 | 211,304 | ||||||
Noncurrent assets: | ||||||||
Property and equipment, net | 63,060 | 56,957 | ||||||
Deferred tax assets | 575 | 585 | ||||||
Intangibles | 230,871 | 240,295 | ||||||
Goodwill | 195,735 | 195,735 | ||||||
Other noncurrent assets | 3,006 | 2,630 | ||||||
Total noncurrent assets | 493,247 | 496,202 | ||||||
Total assets | $ | 829,618 | $ | 707,506 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Liabilities: | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 43,494 | $ | 41,935 | ||||
Accrued payroll and employee-related liabilities | 171,690 | 21,994 | ||||||
Current portion of debt | 48,510 | 45,984 | ||||||
Current portion of income tax payabl e | 1,586 | — | ||||||
Deferred revenue | 5,810 | 4,711 | ||||||
Deferred rent | 303 | 218 | ||||||
Total current liabilities | 271,393 | 114,842 | ||||||
Noncurrent liabilities: | ||||||||
Income tax payable | 2,988 | 2,988 | ||||||
Long-term debt | 193,525 | 198,768 | ||||||
Deferred rent | 2,573 | 2,194 | ||||||
Accrued payroll and employee-related liabilities | 2,640 | 2,641 | ||||||
Deferred tax liabilities | 40,474 | 50,936 | ||||||
Total noncurrent liabilities | 242,200 | 257,527 | ||||||
Total liabilities | 513,593 | 372,369 | ||||||
Commitments and Contingencies (See Note 8) | 0 | 0 | ||||||
Shareholders’ equity: | ||||||||
Class A Common stock, $0.01 par value. Authorized 2,500,000,000; 15,180,000 and 0 shares issued andoutstanding as of June 30, 2021 and December 31, 2020, respectively | 152 | — | ||||||
Class B Convertible Common stock, $0.01 par value. Authorized 250,000,000; 82,110,174 and 91,737,020 shares issued and and December 31, 2020, respectively | 821 | 917 | ||||||
Additional paid-in capital | 519,817 | 398,202 | ||||||
Accumulated deficit | (206,834 | ) | (67,398 | ) | ||||
Accumulated other comprehensive income | 2,069 | 3,416 | ||||||
Total shareholders’ equity | 316,025 | 335,137 | ||||||
Total liabilities and shareholders’ equity | $ | 829,618 | $ | 707,506 | ||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Service revenue | $ | 201,053 | $ | 122,425 | $ | 533,946 | $ | 339,254 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services | 112,423 | 65,378 | 304,251 | 191,296 | |||||||||||||||||||
Selling, general, and administrative expense | 60,342 | 32,190 | 269,650 | 83,630 | |||||||||||||||||||
Depreciation | 7,422 | 3,696 | 20,354 | 14,225 | |||||||||||||||||||
Amortization of intangible assets | 4,711 | 4,711 | 14,135 | 14,135 | |||||||||||||||||||
Loss on disposal of assets | 26 | 155 | 54 | 150 | |||||||||||||||||||
Contingent consideration | — | — | — | 3,570 | |||||||||||||||||||
Total operating expenses | 184,924 | 106,130 | 608,444 | 307,006 | |||||||||||||||||||
Operating income (loss) | 16,129 | 16,295 | (74,498) | 32,248 | |||||||||||||||||||
Other expense | 1,204 | 628 | 299 | 888 | |||||||||||||||||||
Financing expenses | 1,633 | 1,647 | 4,808 | 5,849 | |||||||||||||||||||
Income (loss) before income taxes | 13,292 | 14,020 | (79,605) | 25,511 | |||||||||||||||||||
Provision for (benefit from) income taxes | 1,656 | 2,564 | (1,805) | 4,532 | |||||||||||||||||||
Net income (loss) | $ | 11,636 | $ | 11,456 | $ | (77,800) | $ | 20,979 | |||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.12 | $ | (0.83) | $ | 0.23 | |||||||||||||||
Diluted | $ | 0.11 | $ | 0.12 | $ | (0.83) | $ | 0.23 | |||||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 97,290,174 | 91,737,020 | 93,994,896 | 91,737,020 | |||||||||||||||||||
Diluted | 109,426,011 | 91,737,020 | 93,994,896 | 91,737,020 |
Three months ended | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 332,893 | $ | 216,829 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of services | 103,798 | 64,135 | 191,828 | 125,918 | ||||||||||||
Selling, general, and administrative expense | 177,810 | 25,709 | 209,308 | 51,440 | ||||||||||||
Depreciation | 6,729 | 5,815 | 12,932 | 10,529 | ||||||||||||
Amortization of intangible assets | 4,712 | 4,712 | 9,424 | 9,424 | ||||||||||||
Loss (gain) on disposal of assets | 1 | — | 28 | (5 | ) | |||||||||||
Contingent consideration | — | 3,570 | — | 3,570 | ||||||||||||
Total operating expenses | 293,050 | 103,941 | 423,520 | 200,876 | ||||||||||||
Operating (loss) income | (113,028 | ) | 10,459 | (90,627 | ) | 15,953 | ||||||||||
Other (income) expense | (1,659 | ) | (1,137 | ) | (905 | ) | 260 | |||||||||
Financing expenses | 1,594 | 1,959 | 3,175 | 4,202 | ||||||||||||
(Loss) income before taxes | (112,963 | ) | 9,637 | (92,897 | ) | 11,491 | ||||||||||
(Benefit from) provision for income taxes | (7,020 | ) | 1,629 | (3,461 | ) | 1,968 | ||||||||||
Net (loss) income | $ | (105,943 | ) | $ | 8,008 | $ | (89,436 | ) | $ | 9,523 | ||||||
Net (loss) income per common share, basic and diluted | $ | (1.14 | ) | $ | 0.09 | $ | (0.97 | ) | $ | 0.10 | ||||||
Weighted-average number of common shares outstanding, basic and diluted | 92,957,493 | 91,737,020 | 92,347,257 | 91,737,020 | ||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 11,636 | $ | 11,456 | $ | (77,800) | $ | 20,979 | |||||||||||||||
Retirement benefit reserves | 37 | 4 | 29 | 6 | |||||||||||||||||||
Foreign currency translation adjustments | (3,957) | 1,695 | (5,296) | 2,702 | |||||||||||||||||||
Comprehensive income (loss) | $ | 7,716 | $ | 13,155 | $ | (83,067) | $ | 23,687 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Net (loss) income | $ | (105,943 | ) | $ | 8,008 | $ | (89,436 | ) | $ | 9,523 | ||||||
Retirement benefit reserves | (3 | ) | 3 | (8 | ) | 2 | ||||||||||
Foreign currency translation adjustments | (489 | ) | 1,230 | (1,339 | ) | 1,007 | ||||||||||
Comprehensive (loss) income | $ | (106,435 | ) | $ | 9,241 | $ | (90,783 | ) | $ | 10,532 | ||||||
Capital stock and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||
Class A Common stock | Class B Common stock | Additional paid-in capital | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (101,931) | $ | 312 | $ | 297,500 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,515 | — | 1,515 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (224) | (224) | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (100,416) | $ | 88 | $ | 298,791 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 8,008 | — | 8,008 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,233 | 1,233 | |||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (92,408) | $ | 1,321 | $ | 308,032 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 11,456 | — | 11,456 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,699 | 1,699 | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (80,952) | $ | 3,020 | $ | 321,187 | |||||||||||||||||||||||||||||||||
Capital stock and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||
Class A Common stock | Class B Common stock | Additional paid-in capital | |||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (67,398) | $ | 3,416 | $ | 335,137 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 16,507 | — | 16,507 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (855) | (855) | |||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (50,891) | $ | 2,561 | $ | 350,789 | |||||||||||||||||||||||||||||||||
Issuance on Class A Common stock in the initial public offering primary offering, net of underwriters’ fees and offering costs | 5,553,154 | 56 | — | — | 115,844 | — | — | 115,900 | |||||||||||||||||||||||||||||||||||||||
Conversion of Class B Common stock | 9,626,846 | 96 | (9,626,846) | (96) | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 5,771 | — | — | 5,771 | |||||||||||||||||||||||||||||||||||||||
Distribution of dividends ($0.55 per share) | — | — | — | — | — | (50,000) | — | (50,000) | |||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (105,943) | — | (105,943) | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (492) | (492) | |||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | 15,180,000 | $ | 152 | 82,110,174 | $ | 821 | $ | 519,817 | $ | (206,834) | $ | 2,069 | $ | 316,025 | |||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 19,243 | — | — | 19,243 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 11,636 | — | 11,636 | |||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (3,920) | (3,920) | |||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | 15,180,000 | $ | 152 | 82,110,174 | $ | 821 | $ | 539,060 | $ | (195,198) | $ | (1,851) | $ | 342,984 | |||||||||||||||||||||||||||||||||
Capital stock and additional paid-in capital | ||||||||||||||||||||||||||||||||
Class A Common stock | Class B Common stock | Additional paid-in capital | Accumulated Deficit | Accumulated other comprehensive income | Total shareholders’ equity | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||
Balance as of December 31, 2019 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (101,931 | ) | $ | 312 | $ | 297,500 | |||||||||||||||||
Net income | — | — | — | — | — | 1,515 | — | 1,515 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (224 | ) | (224 | ) | ||||||||||||||||||||||
Balance as of March 31, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (100,416 | ) | $ | 88 | $ | 298,791 | |||||||||||||||||
Net income | — | — | — | — | — | 8,008 | — | 8,008 | ||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 1,233 | 1,233 | ||||||||||||||||||||||||
Balance as of June 30, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (92,408 | ) | $ | 1,321 | $ | 308,032 | |||||||||||||||||
Capital stock and additional paid-in capital | ||||||||||||||||||||||||||||||||
Class A Common stock | Class B Common stock | Additional paid-in capital | Accumulated Deficit | Accumulated other comprehensive income | Total shareholders’ equity | |||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (67,398 | ) | $ | 3,416 | $ | 335,137 | |||||||||||||||||
Net income | — | — | — | — | — | 16,507 | — | 16,507 | ||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (855 | ) | (855 | ) | ||||||||||||||||||||||
Balance as of March 31, 2021 | — | $ | — | 91,737,020 | $ | 917 | $ | 398,202 | $ | (50,891 | ) | $ | 2,561 | $ | 350,789 | |||||||||||||||||
Issuance on Class A Common stock in the initial public offering primary offering, net of underwriters’ fees and offering costs | 5,553,154 | 56 | — | — | 115,844 | — | — | 115,900 | ||||||||||||||||||||||||
Conversion s tock | 9,626,846 | 96 | (9,626,846 | ) | (96 | ) | — | — | — | — | ||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 5,771 | — | — | 5,771 | ||||||||||||||||||||||||
Distribution of dividends ($0.55 per share) | — | — | — | — | — | (50,000 | ) | — | (50,000 | ) | ||||||||||||||||||||||
Net loss | — | — | — | — | — | (105,943 | ) | — | (105,943 | ) | ||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (492 | ) | (492 | ) | ||||||||||||||||||||||
Balance as of June 30, 2021 | 15,180,000 | $ | 152 | 82,110,174 | $ | 821 | $ | 519,817 | $ | (206,834 | ) | $ | 2,069 | $ | 316,025 | |||||||||||||||||
Nine months ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income (loss) | $ | (77,800) | $ | 20,979 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 20,354 | 14,220 | |||||||||
Amortization of intangibles | 14,135 | 14,135 | |||||||||
Amortization of debt financing fees | 387 | 343 | |||||||||
Loss on disposal of assets | 54 | 150 | |||||||||
Provision for losses on accounts receivable | 705 | 2,229 | |||||||||
Unrealized foreign exchange losses on forward contracts | 5,831 | 1,339 | |||||||||
Deferred taxes | (9,692) | (2,876) | |||||||||
Stock-based compensation expense | 25,014 | — | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | (70,560) | (25,445) | |||||||||
Other receivables, prepaid expenses, and other current assets | (4,753) | (10) | |||||||||
Other noncurrent assets | (1,211) | (397) | |||||||||
Accounts payable and accrued liabilities | 4,793 | 9,326 | |||||||||
Accrued payroll and employee-related liabilities | 24,524 | 12,788 | |||||||||
Income tax payable | 1,820 | (3,343) | |||||||||
Deferred revenue | 2,139 | 1,722 | |||||||||
Deferred rent | 834 | 469 | |||||||||
Net cash provided by (used in) operating activities | (63,426) | 45,629 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (38,603) | (21,886) | |||||||||
Net cash used in investing activities | (38,603) | (21,886) | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from borrowing, Revolving credit facility | — | 39,878 | |||||||||
Payments on long-term debt | (3,938) | (1,575) | |||||||||
Payments for debt financing fees | (340) | — | |||||||||
Proceeds from issuance of common stock, net of underwriters’ fees | 120,698 | — | |||||||||
Payments for offering costs | (4,327) | — | |||||||||
Distribution of dividends | (50,000) | — | |||||||||
Net cash provided by financing activities | 62,093 | 38,303 | |||||||||
Increase (decrease) in cash and cash equivalents | (39,936) | 62,046 | |||||||||
Effect of exchange rate changes on cash | (6,462) | 2,720 | |||||||||
Cash and cash equivalents at beginning of period | 107,728 | 37,541 | |||||||||
Cash and cash equivalents at end of period | $ | 61,330 | $ | 102,307 |
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities: | ||||||||
Net (loss) incom e | $ | (89,436 | ) | $ | 9,523 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||
Depreciation | 12,932 | 10,510 | ||||||
Amortization of intangibles | 9,424 | 9,424 | ||||||
Amortization of debt financing fees | 247 | 228 | ||||||
Loss (gain) o n disposal of assets | 28 | (5 | ) | |||||
Provision for losses on accounts receivable | 465 | 1,297 | ||||||
Unrealized foreign exchange losses for forward contracts | 1,730 | 178 | ||||||
Deferred taxes | (10,462 | ) | (2,157 | ) | ||||
Stock-based compensation expense | 5,771 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable s | (41,195 | ) | (22,007 | ) | ||||
Other receivables, prepaid expenses, and other current assets | (4,398 | ) | (430 | ) | ||||
Other noncurrent assets | (415 | ) | (343 | ) | ||||
Accounts payable and accrued liabilities | 5,537 | 7,976 | ||||||
Accrued payroll and employee-related liabilities | 150,543 | 4,003 | ||||||
Income tax payable | 3,304 | 2,896 | ||||||
Deferred revenue | 1,100 | 970 | ||||||
Deferred rent | 502 | 540 | ||||||
Net cash provided by operating activities | 45,677 | 22,603 | ||||||
Cash flows from investing activities: | ||||||||
Purchase of property and equipmen t | (23,453 | ) | (18,815 | ) | ||||
Net cash used in investing activities | (23,453 | ) | (18,815 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from borrowing, Revolving credit facility | — | 39,878 | ||||||
Payments on long-term debt | (2,625 | ) | (525 | ) | ||||
Payments for debt financing fees | (340 | ) | — | |||||
Issuance of common stock, net of underwriters’ fees | 120,698 | — | ||||||
Distribution of dividends | (50,000 | ) | — | |||||
Net cash provided by financing activities | 67,733 | 39,353 | ||||||
Increase in cash and cash equivalents | 89,957 | 43,141 | ||||||
Effect of exchange rate changes on cash | (1,758 | ) | 1,429 | |||||
Cash and cash equivalents at beginning of period | 107,728 | 37,541 | ||||||
Cash and cash equivalents at end of period | $ | 195,927 | $ | 82,111 | ||||
(a) Basis of Presentation |
(b) Use of Estimates |
(d) Concentration Risk |
Customer | Service revenue percentage | |||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
A | 27 | % | 33 | % | 27 | % | 33 | % | ||||||||||||||||||
B | 11 | % | 11 | % | 11 | % | 13 | % |
Service revenue percentage | ||||||||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
Customer | 2021 | 2020 | 2021 | 2020 | ||||||||||||
A | 27 | % | 33 | % | 28 | % | 32 | % | ||||||||
B | 12 | % | 16 | % | 12 | % | 14 | % |
Accounts receivable percentage | ||||||||||||||
Customer | September 30, 2021 | December 31, 2020 | ||||||||||||
A | 26 | % | 22 | % | ||||||||||
B | 13 | % | 16 | % |
Accounts receivable percentage | ||||||||
Customer | June 30, 2021 | December 31, 2020 | ||||||
A | 14 | % | 22 | % | ||||
B | 16 | % | 16 | % |
(e) Recent Accounting Pronouncements |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Digital Customer Experience | $ | 125,310 | $ | 76,255 | $ | 338,587 | $ | 212,817 | |||||||||||||||
Content Security | 45,376 | 33,787 | 124,498 | 91,401 | |||||||||||||||||||
AI Operations | 30,367 | 12,383 | 70,861 | 35,036 | |||||||||||||||||||
Service revenue | $ | 201,053 | $ | 122,425 | $ | 533,946 | $ | 339,254 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Digital Customer Experience | $ | 113,566 | $ | 71,345 | $ | 213,277 | $ | 136,562 | ||||||||
Content Security | 42,995 | 31,076 | 79,122 | 57,614 | ||||||||||||
AI Operations | 23,461 | 11,979 | 40,494 | 22,653 | ||||||||||||
Service Revenue | $ | 180,022 | $ | 114,400 | $ | 332,893 | $ | 216,829 | ||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Philippines | $ | 103,837 | $ | 69,369 | $ | 284,096 | $ | 188,085 | |||||||||||||||
United States | 65,866 | 42,761 | 175,553 | 126,835 | |||||||||||||||||||
Rest of World | 31,350 | 10,295 | 74,297 | 24,334 | |||||||||||||||||||
Service revenue | $ | 201,053 | $ | 122,425 | $ | 533,946 | $ | 339,254 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Philippines | $ | 95,681 | $ | 62,842 | $ | 180,259 | $ | 118,716 | ||||||||
United States | 58,930 | 43,429 | 109,687 | 84,074 | ||||||||||||
Rest of World | 25,411 | 8,129 | 42,947 | 14,039 | ||||||||||||
Service Revenue | $ | 180,022 | $ | 114,400 | $ | 332,893 | $ | 216,829 | ||||||||
Fair value measurements using | |||||||||||||||||||||||
(in thousands) | September 30, 2021 | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||||||
Forward contracts payable | $ | 4,051 | $ | — | $ | 4,051 | $ | — |
Fair value measurements using | |||||||||||||||||||||||
(in thousands) | December 31, 2020 | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||||||||
Forward contracts receivable | $ | 1,780 | $ | — | $ | 1,780 | $ | — | |||||||||||||||
Fair value measurements using | ||||||||||||||||
June 30, 2021 | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
(in thousands) | ||||||||||||||||
Forward contract receivable | $ | 50 | $ | — | $ | 50 | $ | — | ||||||||
Fair value measurements using | ||||||||||||||||
December 31, 2020 | Level 1 inputs | Level 2 inputs | Level 3 inputs | |||||||||||||
(in thousands) | ||||||||||||||||
Forward contract receivable | $ | 1,780 | $ | — | $ | 1,780 | $ | — |
(in thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Leasehold improvements | $ | 32,902 | $ | 31,654 | |||||||
Technology and computers | 68,589 | 47,572 | |||||||||
Furniture and fixtures | 4,000 | 4,203 | |||||||||
Construction in process | 14,480 | 5,194 | |||||||||
Other property and equipment | 7,059 | 5,995 | |||||||||
Property and equipment, gross | 127,030 | 94,618 | |||||||||
Accumulated depreciation | (54,887) | (37,661) | |||||||||
Property and equipment, net | $ | 72,143 | $ | 56,957 |
June 30, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Leasehold improvements | $ | 30,972 | $ | 31,654 | ||||
Technology and computers | 62,678 | 47,572 | ||||||
Furniture and fixtures | 4,023 | 4,203 | ||||||
Construction in process | 8,724 | 5,194 | ||||||
Other property and equipment | 6,309 | 5,995 | ||||||
Property and equipment, gross | 112,706 | 94,618 | ||||||
Accumulated depreciation | (49,646 | ) | (37,661 | ) | ||||
Property and equipment, net | $ | 63,060 | $ | 56,957 | ||||
June 30, 2021 | December 31, 2020 | |||||||
(in thousands) | ||||||||
Philippines | $ | 39,825 | $ | 37,823 | ||||
United States | 10,019 | 8,983 | ||||||
Rest of World | 13,216 | 10,151 | ||||||
Total Property and equipment, net | $ | 63,060 | $ | 56,957 | ||||
(in thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Philippines | $ | 44,432 | $ | 37,823 | |||||||
United States | 11,077 | 8,983 | |||||||||
Rest of World | 16,634 | 10,151 | |||||||||
Property and equipment, net | $ | 72,143 | $ | 56,957 |
September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Life (Years) | Intangibles, Gross | Accumulated Amortization | Intangibles, Net | Intangibles, Gross | Accumulated Amortization | Intangibles, Net | ||||||||||||||||||||||||||||||||||
Customer relationships | 15 | $ | 240,800 | $ | (48,161) | $ | 192,639 | $ | 240,800 | $ | (36,121) | $ | 204,679 | ||||||||||||||||||||||||||||
Trade name | 15 | 41,900 | (8,379) | 33,521 | 41,900 | (6,284) | 35,616 | ||||||||||||||||||||||||||||||||||
Total | $ | 282,700 | $ | (56,540) | $ | 226,160 | $ | 282,700 | $ | (42,405) | $ | 240,295 |
Intangibles, Gross | Life (Years) | Accumulated Amortization | Intangibles, Net | |||||||||||||
(in thousands) | ||||||||||||||||
Customer relationships | $ | 240,800 | 15 | $ | (44,148 | ) | $ | 196,652 | ||||||||
Trade name | 41,900 | 15 | (7,681 | ) | 34,219 | |||||||||||
Balance as of June 30, 2021 | $ | 282,700 | $ | (51,829 | ) | $ | 230,871 |
Intangibles, Gross | Life (Years) | Accumulated Amortization | Intangibles, Net | |||||||||||||
(in thousands) | ||||||||||||||||
Customer relationships | $ | 240,800 | 15 | $ | (36,121 | ) | $ | 204,679 | ||||||||
Trade name | 41,900 | 15 | (6,284 | ) | 35,616 | |||||||||||
Balance as of December 31, 2020 | $ | 282,700 | $ | (42,405 | ) | $ | 240,295 | |||||||||
(in thousands) | Current | Noncurrent | Total | ||||||||||||||
Term Loan | $ | 10,500 | $ | 192,150 | $ | 202,650 | |||||||||||
Revolver | 39,878 | — | 39,878 | ||||||||||||||
Less: Debt financing fees | (556) | (1,111) | (1,667) | ||||||||||||||
Total | $ | 49,822 | $ | 191,039 | $ | 240,861 |
(in thousands) | Current | Noncurrent | Total | |||||||||
Term Loan | $ | 9,188 | $ | 194,775 | $ | 203,963 | ||||||
Revolver | 39,878 | — | 39,878 | |||||||||
Less: Debt financing fees | (556 | ) | (1,250 | ) | (1,806 | ) | ||||||
Total | $ | 48,510 | $ | 193,525 | $ | 242,035 | ||||||
Dividend yield (%) | 0 | % | ||||||
Expected volatility (%) | ||||||||
Risk-free interest rate (%) | ||||||||
Expected term (years) | 5.1-7.0 |
Dividend yield (%) | 0 | % | ||||||
Expected volatility (%) | 40 | % | ||||||
Risk-free interest rate (%) | 0.1-0.6 % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Cost of services | $ | 451 | $ | — | $ | 502 | $ | — | |||||||||||||||
Selling, general, and administrative expense | 18,792 | — | 152,008 | — | |||||||||||||||||||
Total | $ | 19,243 | $ | — | $ | 152,510 | $ | — |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Cost of services | $ | 51 | $ | — | $ | 51 | $ | — | ||||||||
Selling, general , and administrative expense | 133,216 | — | 133,216 | — | ||||||||||||
Total | $ | 133,267 | $ | 0 | $ | 133,267 | $ | 0 | ||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(in thousands,except share and per share data) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) available to common shareholders | $ | 11,636 | $ | 11,456 | $ | (77,800) | $ | 20,979 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares outstanding – basic | 97,290,174 | 91,737,020 | 93,994,896 | 91,737,020 | |||||||||||||||||||
Effect of dilutive securities | 12,135,837 | — | — | — | |||||||||||||||||||
Weighted-average common shares outstanding – diluted | 109,426,011 | 91,737,020 | 93,994,896 | 91,737,020 | |||||||||||||||||||
Net income (loss) per common share: | |||||||||||||||||||||||
Basic | $ | 0.12 | $ | 0.12 | $ | (0.83) | $ | 0.23 | |||||||||||||||
Diluted | $ | 0.11 | $ | 0.12 | $ | (0.83) | $ | 0.23 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in thousands, except share and per share data ) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Numerator: | ||||||||||||||||
Net (loss) income Available to Common Shareholders | $ | (105,943 | ) | $ | 8,008 | $ | (89,436 | ) | $ | 9,523 | ||||||
Denominator: | ||||||||||||||||
Weighted-average common stock outstanding – basic and diluted | 92,957,493 | 91,737,020 | 92,347,257 | 91,737,020 | ||||||||||||
Net (loss) income per share: | ||||||||||||||||
Basic and diluted | $ | (1.14 | ) | $ | 0.09 | $ | (0.97 | ) | $ | 0.10 | ||||||
Three months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Service revenue | $ | 201,053 | $ | 122,425 | $ | 78,628 | 64.2 | % | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services | 112,423 | 65,378 | 47,045 | 72.0 | % | ||||||||||||||||||
Selling, general, and administrative expense | 60,342 | 32,190 | 28,152 | 87.5 | % | ||||||||||||||||||
Depreciation | 7,422 | 3,696 | 3,726 | 100.8 | % | ||||||||||||||||||
Amortization of intangible assets | 4,711 | 4,711 | — | — | |||||||||||||||||||
Loss on disposal of assets | 26 | 155 | (129) | (83.2) | % | ||||||||||||||||||
Total operating expenses | 184,924 | 106,130 | 78,794 | 74.2 | % | ||||||||||||||||||
Operating income | 16,129 | 16,295 | (166) | (1.0) | % | ||||||||||||||||||
Other expense | 1,204 | 628 | 576 | 91.7 | % | ||||||||||||||||||
Financing expenses | 1,633 | 1,647 | (14) | (0.9) | % | ||||||||||||||||||
Income before income taxes | 13,292 | 14,020 | (728) | (5.2) | % | ||||||||||||||||||
Provision for income taxes | 1,656 | 2,564 | (908) | (35.4) | % | ||||||||||||||||||
Net income | $ | 11,636 | $ | 11,456 | $ | 180 | 1.6 | % |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Period over Period Change ($) | Period Over Period Change (%) | |||||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 65,622 | 57.4 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of services | 103,798 | 64,135 | 39,663 | 61.8 | % | |||||||||||
Selling, general, and administrative expense | 177,810 | 25,709 | 152,101 | 591.6 | % | |||||||||||
Depreciation | 6,729 | 5,815 | 914 | 15.7 | % | |||||||||||
Amortization of intangible assets | 4,712 | 4,712 | — | — | ||||||||||||
Loss on disposal of assets | 1 | — | 1 | 100.0 | % | |||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Total operating expenses | 293,050 | 103,941 | 189,109 | 181.9 | % | |||||||||||
Operating (loss) income | (113,028 | ) | 10,459 | (123,487 | ) | (1,180.7 | )% | |||||||||
Other income | (1,659 | ) | (1,137 | ) | (522 | ) | 45.9 | % | ||||||||
Financing expenses | 1,594 | 1,959 | (365 | ) | (18.6 | )% | ||||||||||
(Loss) income before taxes | (112,963 | ) | 9,637 | (122,600 | ) | (1,272.2 | )% | |||||||||
(Benefit from) provision for income taxes | (7,020 | ) | 1,629 | (8,649 | ) | (530.9 | )% | |||||||||
Net (loss) income | $ | (105,943 | ) | $ | 8,008 | $ | (113,951 | ) | (1,423.0 | )% | ||||||
Three months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Digital Customer Experience | $ | 125,310 | $ | 76,255 | $ | 49,055 | 64.3 | % | |||||||||||||||
Content Security | 45,376 | 33,787 | 11,589 | 34.3 | % | ||||||||||||||||||
AI Operations | 30,367 | 12,383 | 17,984 | 145.2 | % | ||||||||||||||||||
Service revenue | $ | 201,053 | $ | 122,425 | $ | 78,628 | 64.2 | % |
(in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | ||||||||||||
Digital Customer Experience | $ | 113,566 | $ | 71,345 | $ | 42,221 | 59.2 | % | ||||||||
Content Security | 42,995 | 31,076 | 11,919 | 38.4 | % | |||||||||||
AI Operations | 23,461 | 11,979 | 11,482 | 95.9 | % | |||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 65,622 | 57.4 | % | ||||||||
(in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||||||||||||||||||||||||
Three months ended September 30, | Period over Period Change | ||||||||||||||||||||||||||||||||||||||
(in thousands, except %) | (in thousands, except %) | 2021 | 2020 | ($) | (%) | ||||||||||||||||||||||||||||||||||
Philippines | $ | 95,681 | $ | 62,842 | $ | 32,839 | 52.3 | % | Philippines | $ | 103,837 | $ | 69,369 | $ | 34,468 | 49.7 | % | ||||||||||||||||||||||
United States | 58,930 | 43,429 | 15,501 | 35.7 | % | United States | 65,866 | 42,761 | 23,105 | 54.0 | % | ||||||||||||||||||||||||||||
Rest of World | 25,411 | 8,129 | 17,282 | 212.6 | % | Rest of World | 31,350 | 10,295 | 21,055 | 204.5 | % | ||||||||||||||||||||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 65,622 | 57.4 | % | Service revenue | $ | 201,053 | $ | 122,425 | $ | 78,628 | 64.2 | % | ||||||||||||||||||||||
Nine months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Service revenue | $ | 533,946 | $ | 339,254 | $ | 194,692 | 57.4 | % | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services | 304,251 | 191,296 | 112,955 | 59.0 | % | ||||||||||||||||||
Selling, general, and administrative expense | 269,650 | 83,630 | 186,020 | 222.4 | % | ||||||||||||||||||
Depreciation | 20,354 | 14,225 | 6,129 | 43.1 | % | ||||||||||||||||||
Amortization of intangible assets | 14,135 | 14,135 | — | — | |||||||||||||||||||
Loss on disposal of assets | 54 | 150 | (96) | (64.0) | % | ||||||||||||||||||
Contingent consideration | — | 3,570 | (3,570) | (100.0) | % | ||||||||||||||||||
Total operating expenses | 608,444 | 307,006 | 301,438 | 98.2 | % | ||||||||||||||||||
Operating income (loss) | (74,498) | 32,248 | (106,746) | (331.0) | % | ||||||||||||||||||
Other expense | 299 | 888 | (589) | (66.3) | % | ||||||||||||||||||
Financing expenses | 4,808 | 5,849 | (1,041) | (17.8) | % | ||||||||||||||||||
Income (loss) before income taxes | (79,605) | 25,511 | (105,116) | (412.0) | % | ||||||||||||||||||
Provision for (benefit from) income taxes | (1,805) | 4,532 | (6,337) | (139.8) | % | ||||||||||||||||||
Net income (loss) | $ | (77,800) | $ | 20,979 | $ | (98,779) | (470.8) | % |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | Period over Period Change ($) | Period Over Period Change (%) | |||||||||||||
Service revenue | $ | 332,893 | $ | 216,829 | $ | 116,064 | 53.5 | % | ||||||||
Operating expenses: | ||||||||||||||||
Cost of services | 191,828 | 125,918 | 65,910 | 52.3 | % | |||||||||||
Selling, general, and administrative expense | 209,308 | 51,440 | 157,868 | 306.9 | % | |||||||||||
Depreciation | 12,932 | 10,529 | 2,403 | 22.8 | % | |||||||||||
Amortization of intangible assets | 9,424 | 9,424 | — | — | ||||||||||||
Loss (gain) on disposal of assets | 28 | (5 | ) | 33 | (660.0 | )% | ||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Total operating expenses | 423,520 | 200,876 | 222,644 | 110.8 | % | |||||||||||
Operating (loss) income | (90,627 | ) | 15,953 | (106,580 | ) | (668.1 | )% | |||||||||
Other (income) expense | (905 | ) | 260 | (1,165 | ) | (448.1 | )% | |||||||||
Financing expenses | 3,175 | 4,202 | (1,027 | ) | (24.4 | )% | ||||||||||
(Loss) income before taxes | (92,897 | ) | 11,491 | (104,388 | ) | (908.4 | )% | |||||||||
(Benefit from) provision for income taxes | (3,461 | ) | 1,968 | (5,429 | ) | (275.9 | )% | |||||||||
Net (loss) income | $ | (89,436 | ) | $ | 9,523 | $ | (98,959 | ) | (1,039.2 | )% | ||||||
Nine months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Digital Customer Experience | $ | 338,587 | $ | 212,817 | $ | 125,770 | 59.1 | % | |||||||||||||||
Content Security | 124,498 | 91,401 | 33,097 | 36.2 | % | ||||||||||||||||||
AI Operations | 70,861 | 35,036 | 35,825 | 102.3 | % | ||||||||||||||||||
Service revenue | $ | 533,946 | $ | 339,254 | $ | 194,692 | 57.4 | % |
(in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | ||||||||||||
Digital Customer Experience | $ | 213,277 | $ | 136,562 | $ | 76,715 | 56.2 | % | ||||||||
Content Security | 79,122 | 57,614 | 21,508 | 37.3 | % | |||||||||||
AI Operations | 40,494 | 22,653 | 17,841 | 78.8 | % | |||||||||||
Service revenue | $ | 332,893 | $ | 216,829 | $ | 116,064 | 53.5 | % | ||||||||
(in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Period over Period Change | ||||||||||||||||||||||||||||||||||||||
(in thousands, except %) | (in thousands, except %) | 2021 | 2020 | ($) | (%) | ||||||||||||||||||||||||||||||||||
Philippines | $ | 180,259 | $ | 118,716 | $ | 61,543 | 51.8 | % | Philippines | $ | 284,096 | $ | 188,085 | $ | 96,011 | 51.0 | % | ||||||||||||||||||||||
United States | 109,687 | 84,074 | 25,613 | 30.5 | % | United States | 175,553 | 126,835 | 48,718 | 38.4 | % | ||||||||||||||||||||||||||||
Rest of World | 42,947 | 14,039 | 28,908 | 205.9 | % | Rest of World | 74,297 | 24,334 | 49,963 | 205.3 | % | ||||||||||||||||||||||||||||
Service revenue | $ | 332,893 | $ | 216,829 | $ | 116,064 | 53.5 | % | Service revenue | $ | 533,946 | $ | 339,254 | $ | 194,692 | 57.4 | % | ||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Top ten clients | 61 | % | 67 | % | 63 | % | 70 | % | |||||||||||||||
Top twenty clients | 76 | % | 81 | % | 76 | % | 82 | % |
Percentage of Total Service Revenue | ||||||||||||||||
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | |||||||||||||
Top ten clients | 63 | % | 73 | % | 64 | % | 74 | % | ||||||||
Top twenty clients | 77 | % | 85 | % | 78 | % | 84 | % |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||
(in thousands, except margin amounts) | ||||||||||||||||
Net (loss) income | $ | (105,943 | ) | $ | 8,008 | $ | (113,951 | ) | (1,423.0 | )% | ||||||
Amortization of intangible assets | 4,712 | 4,712 | — | — | ||||||||||||
Offering costs (1) | 2,432 | — | 2,432 | 100.0 | % | |||||||||||
Foreign currency gains (2) | (1,595 | ) | (1,114 | ) | (481 | ) | 43.2 | % | ||||||||
Loss on disposal of assets | 1 | — | 1 | 100.0 | % | |||||||||||
COVID-19 related expenses(3) | 3,711 | 1,320 | 2,391 | 181.1 | % | |||||||||||
Severance costs (4) | — | 472 | (472 | ) | (100.0 | )% | ||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Phantom shares bonus (5) | 129,362 | — | 129,362 | 100.0 | % | |||||||||||
Teammate IPO bonus (6) | 4,361 | — | 4,361 | 100.0 | % | |||||||||||
Stock-based compensation expense (7) | 5,771 | — | 5,771 | 100.0 | % | |||||||||||
Tax impacts of adjustments (8) | (11,440 | ) | — | (11,440 | ) | (100.0 | )% | |||||||||
Adjusted Net Income | $ | 31,372 | $ | 16,968 | $ | 14,404 | 84.9 | % | ||||||||
Net (Loss) Income Margin (9) | (58.9 | )% | 7.0 | % | ||||||||||||
Adjusted Net Income Margin (9) | 17.4 | % | 14.8 | % | ||||||||||||
Three months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Net income | $ | 11,636 | $ | 11,456 | $ | 180 | 1.6 | % | |||||||||||||||
Amortization of intangible assets | 4,711 | 4,711 | — | — | % | ||||||||||||||||||
Offering costs(1) | 488 | 385 | 103 | 26.8 | % | ||||||||||||||||||
Foreign currency losses(2) | 1,285 | 637 | 648 | 101.7 | % | ||||||||||||||||||
Loss on disposal of assets | 26 | 155 | (129) | (83.2) | % | ||||||||||||||||||
COVID-19 related expenses(3) | — | 1,309 | (1,309) | (100.0) | % | ||||||||||||||||||
Severance costs(4) | — | 2,057 | (2,057) | (100.0) | % | ||||||||||||||||||
Lease termination costs(5) | — | 1,500 | (1,500) | (100.0) | % | ||||||||||||||||||
Stock-based compensation expense(6) | 19,243 | — | 19,243 | 100.0 | % | ||||||||||||||||||
Tax impacts of adjustments(7) | (4,632) | — | (4,632) | (100.0) | % | ||||||||||||||||||
Adjusted Net Income | $ | 32,757 | $ | 22,210 | $ | 10,547 | 47.5 | % | |||||||||||||||
Net Income Margin(8) | 5.8 | % | 9.4 | % | |||||||||||||||||||
Adjusted Net Income Margin(8) | 16.3 | % | 18.1 | % |
(1) | Represents |
(2) | Realized and unrealized foreign currency |
(3) | Represents incremental expenses incurred COVID-19 pandemic. |
(4) | Represents severance payments as a result of certain cost optimization measures we undertook during the period. |
(5) | Represents COVID-19 pandemic.one-time |
(6) | Represents stock-based compensation expense associated with equity-classified awards. |
Represents tax impacts of adjustments to net income (loss) |
Net |
Nine months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Net income (loss) | $ | (77,800) | $ | 20,979 | $ | (98,779) | (470.8) | % | |||||||||||||||
Amortization of intangible assets | 14,135 | 14,135 | — | — | % | ||||||||||||||||||
Offering costs(1) | 6,249 | 385 | 5,864 | 1,523.1 | % | ||||||||||||||||||
Foreign currency losses(2) | 477 | 927 | (450) | (48.5) | % | ||||||||||||||||||
Loss on disposal of assets | 54 | 150 | (96) | (64.0) | % | ||||||||||||||||||
COVID-19 related expenses(3) | 6,105 | 5,068 | 1,037 | 20.5 | % | ||||||||||||||||||
Severance costs(4) | — | 2,627 | (2,627) | (100.0) | % | ||||||||||||||||||
Lease termination costs(5) | — | 1,500 | (1,500) | (100.0) | % | ||||||||||||||||||
Natural disaster costs(6) | 442 | — | 442 | 100.0 | % | ||||||||||||||||||
Contingent consideration | — | 3,570 | (3,570) | (100.0) | % | ||||||||||||||||||
Phantom shares bonus(7) | 129,362 | — | 129,362 | 100.0 | % | ||||||||||||||||||
Teammate IPO bonus(8) | 4,361 | — | 4,361 | 100.0 | % | ||||||||||||||||||
Stock-based compensation expense(9) | 25,014 | — | 25,014 | 100.0 | % | ||||||||||||||||||
Tax impacts of adjustments(10) | (16,072) | — | (16,072) | (100.0) | % | ||||||||||||||||||
Adjusted Net Income | $ | 92,327 | $ | 49,341 | $ | 42,986 | 87.1 | % | |||||||||||||||
Net Income (Loss) Margin(11) | (14.6) | % | 6.2 | % | |||||||||||||||||||
Adjusted Net Income Margin(11) | 17.3 | % | 14.5 | % |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||
(in thousands, except margin amounts) | ||||||||||||||||
Net (loss) income | $ | (89,436 | ) | $ | 9,523 | $ | (98,959 | ) | (1,039.2 | )% | ||||||
Amortization of intangible assets | 9,424 | 9,424 | — | — | ||||||||||||
Offering costs (1) | 5,761 | — | 5,761 | 100.0 | % | |||||||||||
Foreign currency (gains) losses (2) | (808 | ) | 290 | (1,098 | ) | (378.6 | )% | |||||||||
Loss (gain) on disposal of assets | 28 | (5 | ) | 33 | (660.0 | )% | ||||||||||
COVID-19 related expenses(3) | 6,105 | 3,759 | 2,346 | 62.4 | % | |||||||||||
Severance costs (4) | — | 570 | (570 | ) | (100.0 | )% | ||||||||||
Natural disaster costs (5) | 442 | — | 442 | 100.0 | % | |||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Phantom shares bonus (6) | 129,362 | — | 129,362 | 100.0 | % | |||||||||||
Teammate IPO bonus (7) | 4,361 | — | 4,361 | 100.0 | % | |||||||||||
Stock-based compensation expense (8) | 5,771 | — | 5,771 | 100.0 | % | |||||||||||
Tax impacts of adjustments (9) | (11,440 | ) | — | (11,440 | ) | (100.0 | )% | |||||||||
Adjusted Net Income | $ | 59,570 | $ | 27,131 | $ | 32,439 | 119.6 | % | ||||||||
Net (Loss) Income Margin (10) | (26.9 | )% | 4.4 | % | ||||||||||||
Adjusted Net Income Margin (10) | 17.9 | % | 12.5 | % | ||||||||||||
(1) | Represents |
(2) | Realized and unrealized foreign currency |
(3) | Represents incremental expenses incurred COVID-19 pandemic. |
(4) | Represents severance payments as a result of certain cost optimization measures we undertook during the |
(5) | Represents one-time costs associated with the termination of lease agreements for certain U.S. facilities attributable to the COVID-19 pandemic. | ||||
(6) | Represents one-time costs associated with emergency housing, transportation costs and bonuses for our employees in connection with the natural disaster related to the severe winter storm in Texas in February 2021. |
Represents expense for one-time, non-recurring payments of $127.5 million to vested phantom shareholders in connection with the completion of the IPO, as well as associated payroll tax and 401(k) contributions. |
Represents expense for non-recurring bonus payments to certain employees in connection with the completion of the IPO. |
Represents stock-based compensation expense associated with equity-classified awards. |
Represents tax impacts of adjustments to net income (loss) |
Net Income (Loss) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
GAAP diluted EPS | $ | 0.11 | $ | 0.12 | $ | (0.83) | $ | 0.23 | |||||||||||||||
Per share adjustments to net income (loss)(1) | 0.19 | 0.12 | 1.81 | 0.31 | |||||||||||||||||||
Per share adjustments for GAAP anti-dilutive shares(2) | — | — | (0.05) | — | |||||||||||||||||||
Adjusted EPS | $ | 0.30 | $ | 0.24 | $ | 0.93 | $ | 0.54 | |||||||||||||||
Weighted-average common shares outstanding – diluted | 109,426,011 | 91,737,020 | 93,994,896 | 91,737,020 | |||||||||||||||||||
GAAP anti-dilutive shares(2) | — | — | 5,578,525 | — | |||||||||||||||||||
Adjusted weighted-average shares outstanding | 109,426,011 | 91,737,020 | 99,573,421 | 91,737,020 |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Six months ended June 30, 2021 | Six months ended June 30, 2020 | |||||||||||||
GAAP diluted EPS | $ | (1.14 | ) | $ | 0.09 | $ | (0.97 | ) | $ | 0.10 | ||||||
Per share adjustments to net (loss) income (1) | 1.48 | 0.09 | 1.61 | 0.20 | ||||||||||||
Per share adjustments for GAAP anti-dilutive shares (2) | (0.02 | ) | — | (0.01 | ) | — | ||||||||||
Adjusted EPS | $ | 0.32 | $ | 0.18 | $ | 0.63 | $ | 0.30 | ||||||||
Weighted-average common stock outstanding – Diluted | 92,957,493 | 91,737,020 | 92,347,257 | 91,737,020 | ||||||||||||
GAAP anti-dilutive shares (2) | 4,599,736 | — | 2,299,868 | — | ||||||||||||
Adjusted weighted-average shares outstanding | 97,557,229 | 91,737,020 | 94,647,125 | 91,737,020 | ||||||||||||
(1) | Reflects the aggregate adjustments made to reconcile |
(2) | Reflects the impact of awards that were anti-dilutive to GAAP diluted EPS since we were in a net loss position, and therefore not included in the calculation, but would be dilutive to Adjusted EPS and are therefore included in the calculation. |
Three months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Net income | $ | 11,636 | $ | 11,456 | $ | 180 | 1.6 | % | |||||||||||||||
Provision for income taxes | 1,656 | 2,564 | (908) | (35.4) | % | ||||||||||||||||||
Financing expenses | 1,633 | 1,647 | (14) | (0.9) | % | ||||||||||||||||||
Depreciation | 7,422 | 3,696 | 3,726 | 100.8 | % | ||||||||||||||||||
Amortization of intangible assets | 4,711 | 4,711 | — | — | % | ||||||||||||||||||
EBITDA | $ | 27,058 | $ | 24,074 | $ | 2,984 | 12.4 | % | |||||||||||||||
Offering costs(1) | 488 | 385 | 103 | 26.8 | % | ||||||||||||||||||
Foreign currency losses(2) | 1,285 | 637 | 648 | 101.7 | % | ||||||||||||||||||
Loss on disposal of assets | 26 | 155 | (129) | (83.2) | % | ||||||||||||||||||
COVID-19 related expenses(3) | — | 1,309 | (1,309) | (100.0) | % | ||||||||||||||||||
Severance costs(4) | — | 2,057 | (2,057) | (100.0) | % | ||||||||||||||||||
Lease termination costs(5) | — | 1,500 | (1,500) | (100.0) | % | ||||||||||||||||||
Stock-based compensation expense(6) | 19,243 | — | 19,243 | 100.0 | % | ||||||||||||||||||
Adjusted EBITDA | $ | 48,100 | $ | 30,117 | $ | 17,983 | 59.7 | % | |||||||||||||||
Net Income Margin(7) | 5.8 | % | 9.4 | % | |||||||||||||||||||
Adjusted EBITDA Margin(7) | 23.9 | % | 24.6 | % |
Three months ended June 30, 2021 | Three months ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||
(in thousands, except margin amounts) | ||||||||||||||||
Net (loss) income | $ | (105,943 | ) | $ | 8,008 | $ | (113,951 | ) | (1,423.0 | )% | ||||||
(Benefit from) provision for income taxes | (7,020 | ) | 1,629 | (8,649 | ) | (530.9 | )% | |||||||||
Financing expenses | 1,594 | 1,959 | (365 | ) | (18.6 | )% | ||||||||||
Depreciation | 6,729 | 5,815 | 914 | 15.7 | % | |||||||||||
Amortization of intangible assets | 4,712 | 4,712 | — | — | ||||||||||||
EBITDA | $ | (99,928 | ) | $ | 22,123 | $ | (122,051 | ) | (551.7 | )% | ||||||
Offering costs (1) | 2,432 | — | 2,432 | 100.0 | % | |||||||||||
Foreign currency gains (2) | (1,595 | ) | (1,114 | ) | (481 | ) | 43.2 | % | ||||||||
Loss on disposal of assets | 1 | — | 1 | 100.0 | % | |||||||||||
COVID-19 related expenses(3) | 3,711 | 1,320 | 2,391 | 181.1 | % | |||||||||||
Severance costs (4) | — | 472 | (472 | ) | (100.0 | )% | ||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Phantom shares bonus (5) | 129,362 | — | 129,362 | 100.0 | % | |||||||||||
Teammate IPO bonus (6) | 4,361 | — | 4,361 | 100.0 | % | |||||||||||
Stock-based compensation expense (7) | 5,771 | — | 5,771 | 100.0 | % | |||||||||||
Adjusted EBITDA | $ | 44,115 | $ | 26,371 | $ | 17,744 | 67.3 | % | ||||||||
Net (Loss) Income Margin (8) | (58.9 | )% | 7.0 | % | ||||||||||||
Adjusted EBITDA Margin (8) | 24.5 | % | 23.1 | % | ||||||||||||
(1) | Represents |
(2) | Realized and unrealized foreign currency |
(3) | Represents incremental expenses incurred |
Six months ended June 30, 2021 | Six months ended June 30, 2020 | Period over Period Change ($) | Period over Period Change (%) | |||||||||||||
(in thousands, except margin amounts) | ||||||||||||||||
Net income | $ | (89,436 | ) | $ | 9,523 | $ | (98,959 | ) | (1,039.2 | )% | ||||||
Provision for income taxes | (3,461 | ) | 1,968 | (5,429 | ) | (275.9 | )% | |||||||||
Financing expenses | 3,175 | 4,202 | (1,027 | ) | (24.4 | )% | ||||||||||
Depreciation | 12,932 | 10,529 | 2,403 | 22.8 | % | |||||||||||
Amortization of intangible assets | 9,424 | 9,424 | — | — | ||||||||||||
EBITDA | $ | (67,366 | ) | $ | 35,646 | $ | (103,012 | ) | (289.0 | )% | ||||||
Offering costs (1) | 5,761 | — | 5,761 | 100.0 | % | |||||||||||
Foreign currency (gains) losses (2) | (808 | ) | 290 | (1,098 | ) | (378.6 | )% | |||||||||
Loss (gain) on disposal of assets | 28 | (5 | ) | 33 | (660.0 | )% | ||||||||||
COVID-19 related expenses(3) | 6,105 | 3,759 | 2,346 | 62.4 | % | |||||||||||
Severance costs (4) | — | 570 | (570 | ) | (100.0 | )% | ||||||||||
Natural disaster costs (5) | 442 | — | 442 | 100.0 | % | |||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | ||||||||||
Phantom shares bonus (6) | 129,362 | — | 129,362 | 100.0 | % | |||||||||||
Teammate IPO bonus (7) | 4,361 | — | 4,361 | 100.0 | % | |||||||||||
Stock-based compensation expense (8) | 5,771 | — | 5,771 | 100.0 | % | |||||||||||
Adjusted EBITDA | $ | 83,656 | $ | 43,830 | $ | 39,826 | 90.9 | % | ||||||||
Net (Loss) Income Margin (9) | (26.9 | )% | 4.4 | % | ||||||||||||
Adjusted EBITDA Margin (9) | 25.1 | % | 20.2 | % | ||||||||||||
COVID-19 pandemic. |
(4) | Represents severance payments as a result of certain cost optimization measures we undertook during the | ||||
(5) | Represents one-time costs associated with the termination of lease agreements for certain U.S. facilities attributable to the COVID-19 pandemic. | ||||
(6) | Represents stock-based compensation expense associated with equity-classified awards. | ||||
(7) | Net Income Margin represents net income divided by service revenue and Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue. |
Nine months ended September 30, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2021 | 2020 | ($) | (%) | |||||||||||||||||||
Net income (loss) | $ | (77,800) | $ | 20,979 | $ | (98,779) | (470.8) | % | |||||||||||||||
Provision for (benefit from) income taxes | (1,805) | 4,532 | (6,337) | (139.8) | % | ||||||||||||||||||
Financing expenses | 4,808 | 5,849 | (1,041) | (17.8) | % | ||||||||||||||||||
Depreciation | 20,354 | 14,225 | 6,129 | 43.1 | % | ||||||||||||||||||
Amortization of intangible assets | 14,135 | 14,135 | — | — | % | ||||||||||||||||||
EBITDA | $ | (40,308) | $ | 59,720 | $ | (100,028) | (167.5) | % | |||||||||||||||
Offering costs(1) | 6,249 | 385 | 5,864 | 1,523.1 | % | ||||||||||||||||||
Foreign currency losses(2) | 477 | 927 | (450) | (48.5) | % | ||||||||||||||||||
Loss on disposal of assets | 54 | 150 | (96) | (64.0) | % | ||||||||||||||||||
COVID-19 related expenses(3) | 6,105 | 5,068 | 1,037 | 20.5 | % | ||||||||||||||||||
Severance costs(4) | — | 2,627 | (2,627) | (100.0) | % | ||||||||||||||||||
Lease termination costs(5) | — | 1,500 | (1,500) | (100.0) | % | ||||||||||||||||||
Natural disaster costs(6) | 442 | — | 442 | 100.0 | % | ||||||||||||||||||
Contingent consideration | — | 3,570 | (3,570) | (100.0) | % | ||||||||||||||||||
Phantom shares bonus(7) | 129,362 | — | 129,362 | 100.0 | % | ||||||||||||||||||
Teammate IPO bonus(8) | 4,361 | — | 4,361 | 100.0 | % | ||||||||||||||||||
Stock-based compensation expense(9) | 25,014 | — | 25,014 | 100.0 | % | ||||||||||||||||||
Adjusted EBITDA | $ | 131,756 | $ | 73,947 | $ | 57,809 | 78.2 | % | |||||||||||||||
Net Income (Loss) Margin(10) | (14.6) | % | 6.2 | % | |||||||||||||||||||
Adjusted EBITDA Margin(10) | 24.7 | % | 21.8 | % |
(1) | Represents non-recurring professional service fees related to the preparation for public offerings that have been expensed during the period. | ||||
(2) | Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency. | ||||
(3) | Represents incremental expenses incurred related to the transition to a virtual operating model and incentive and leave pay granted to employees that are directly attributable to the COVID-19 pandemic. | ||||
(4) | Represents severance payments as a result of certain cost optimization measures we undertook during the period. | ||||
(5) | Represents one-time costs associated with the termination of lease agreements for certain U.S. facilities attributable to the COVID-19 pandemic. | ||||
(6) | Represents one-time costs associated with emergency housing, transportation costs and bonuses for our employees in connection with the natural disaster related to the severe winter storm in Texas in February 2021. |
Represents expense for one-time, non-recurring payments of $127.5 million to vested phantom shareholders in connection with the completion of the IPO, as well as associated payroll tax and 401(k) contributions. |
Represents expense for non-recurring bonus payments to certain employees in connection with the completion of the IPO. |
Represents stock-based compensation expense associated with equity-classified awards. |
Net Income (Loss) |
Nine months ended September 30, | |||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Net cash provided by (used in) operating activities | $ | (63,426) | $ | 45,629 | |||||||
Net cash used in investing activities | (38,603) | (21,886) | |||||||||
Net cash provided by financing activities | 62,093 | 38,303 |
Six Months ended June 30, 2021 | Six Months ended June 30, 2020 | |||||||
(in thousands) | ||||||||
Net cash provided by operating activities | $ | 45,677 | $ | 22,603 | ||||
Net cash used in investing activities | (23,453 | ) | (18,815 | ) | ||||
Net cash provided by financing activities | 67,733 | 39,353 |
TASKUS, INC. | |||||||||||||||||
(Registrant) | |||||||||||||||||
Date: | November 12, 2021 | By: | /s/ Balaji Sekar | ||||||||||||||
Balaji Sekar | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||
(Authorized Signatory) | |||||||||||||||||
Date: | November 12, 2021 | /s/ Steven Amaya | |||||||||||||||
Steven Amaya | |||||||||||||||||
Vice President—Finance | |||||||||||||||||
(Principal Accounting Officer) |