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 | (I.R.S. Employer Identification No. | |||||
1650 Independence Drive, Suite 100 New Braunfels, Texas | 78132 | |||||
(Address of principal executive | (Zip |
Title of each class | Trading Symbol(s) | 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 | o | Smaller reporting company | ||||||||||||||
Emerging growth company |
Page No. | |||||||||||
Financial Statements | |||||||||||
March 31, 2024 | December 31, 2023 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 165,350 | $ | 125,776 | |||||||
Accounts receivable, net of allowance for credit losses of $1,658 and $1,978, respectively | 165,494 | 176,812 | |||||||||
Income tax receivable | 1,042 | 2,021 | |||||||||
Prepaid expenses and other current assets | 24,170 | 23,909 | |||||||||
Total current assets | 356,056 | 328,518 | |||||||||
Noncurrent assets: | |||||||||||
Property and equipment, net | 61,777 | 68,893 | |||||||||
Operating lease right-of-use assets | 39,144 | 44,326 | |||||||||
Deferred tax assets | 5,915 | 4,857 | |||||||||
Intangibles | 187,771 | 192,958 | |||||||||
Goodwill | 217,613 | 218,108 | |||||||||
Other noncurrent assets | 6,235 | 6,542 | |||||||||
Total noncurrent assets | 518,455 | 535,684 | |||||||||
Total assets | $ | 874,511 | $ | 864,202 | |||||||
Liabilities and Shareholders’ Equity | |||||||||||
Liabilities: | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued liabilities | $ | 24,684 | $ | 26,054 | |||||||
Accrued payroll and employee-related liabilities | 40,346 | 40,291 | |||||||||
Current portion of debt | 9,747 | 8,059 | |||||||||
Current portion of operating lease liabilities | 15,107 | 15,872 | |||||||||
Current portion of income tax payable | 12,035 | 7,451 | |||||||||
Deferred revenue | 4,120 | 4,077 | |||||||||
Total current liabilities | 106,039 | 101,804 | |||||||||
Noncurrent liabilities: | |||||||||||
Income tax payable | 4,620 | 4,621 | |||||||||
Long-term debt | 252,885 | 256,166 | |||||||||
Operating lease liabilities | 26,605 | 31,475 | |||||||||
Accrued payroll and employee-related liabilities | 4,354 | 3,978 | |||||||||
Deferred tax liabilities | 25,184 | 25,214 | |||||||||
Other noncurrent liabilities | 230 | 233 | |||||||||
Total noncurrent liabilities | 313,878 | 321,687 | |||||||||
Total liabilities | 419,917 | 423,491 | |||||||||
Commitments and Contingencies (See Note 10) | |||||||||||
Shareholders’ equity: | |||||||||||
Class A common stock, $0.01 par value. Authorized 2,500,000,000; 31,020,925 issued and 18,938,691 outstanding and 30,522,570 issued and 18,725,947 outstanding, respectively | 310 | 305 | |||||||||
Class B convertible common stock, $0.01 par value. Authorized 250,000,000; 70,032,694 and 70,032,694 shares issued and outstanding, respectively | 700 | 700 | |||||||||
Additional paid-in capital | 691,968 | 683,117 | |||||||||
Accumulated deficit | (78,270) | (89,984) | |||||||||
Accumulated other comprehensive loss | (12,859) | (9,551) | |||||||||
Treasury stock, at cost. 12,082,234 and 11,796,623 shares, respectively | (147,255) | (143,876) | |||||||||
Total shareholders’ equity | 454,594 | 440,711 | |||||||||
Total liabilities and shareholders’ equity | $ | 874,511 | $ | 864,202 |
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 March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Service revenue | $ | 227,470 | $ | 235,306 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Cost of services | 135,411 | 137,762 | |||||||||||||||||||||
Selling, general, and administrative expense | 52,904 | 64,294 | |||||||||||||||||||||
Depreciation | 10,789 | 9,661 | |||||||||||||||||||||
Amortization of intangible assets | 4,985 | 5,124 | |||||||||||||||||||||
Loss (gain) on disposal of assets | (177) | 65 | |||||||||||||||||||||
Total operating expenses | 203,912 | 216,906 | |||||||||||||||||||||
Operating income | 23,558 | 18,400 | |||||||||||||||||||||
Other income, net | (202) | (2,177) | |||||||||||||||||||||
Financing expenses | 5,538 | 5,099 | |||||||||||||||||||||
Income before income taxes | 18,222 | 15,478 | |||||||||||||||||||||
Provision for income taxes | 6,508 | 5,969 | |||||||||||||||||||||
Net income | $ | 11,714 | $ | 9,509 | |||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.10 | |||||||||||||||||||
Diluted | $ | 0.13 | $ | 0.09 | |||||||||||||||||||
Weighted-average number of common shares outstanding: | |||||||||||||||||||||||
Basic | 88,795,211 | 97,561,650 | |||||||||||||||||||||
Diluted | 91,849,886 | 100,952,573 |
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 March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Net income | $ | 11,714 | $ | 9,509 | |||||||||||||||||||
Retirement benefit reserves | 5 | 8 | |||||||||||||||||||||
Foreign currency translation adjustments | (3,313) | 3,583 | |||||||||||||||||||||
Comprehensive income | $ | 8,406 | $ | 13,100 |
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 loss | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock | Class B convertible common stock | Additional paid-in capital | Treasury stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | 29,257,651 | $ | 293 | 70,032,694 | $ | 700 | $ | 631,908 | $ | (135,674) | $ | (10,647) | 1,649,931 | $ | (30,967) | $ | 455,613 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for settlement of equity awards | 246,537 | 2 | — | — | 207 | — | — | — | — | 209 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | (14,293) | — | — | — | (257) | — | — | — | — | (257) | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | 389,801 | (6,374) | (6,374) | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 13,464 | — | — | — | — | 13,464 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 9,509 | — | — | — | 9,509 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | 3,591 | — | — | 3,591 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 29,489,895 | $ | 295 | 70,032,694 | $ | 700 | $ | 645,322 | $ | (126,165) | $ | (7,056) | 2,039,732 | $ | (37,341) | $ | 475,755 | ||||||||||||||||||||||||||||||||||||||||||
Capital stock and additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A common stock | Class B convertible common stock | Additional paid-in capital | Treasury stock | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2023 | 30,522,570 | $ | 305 | 70,032,694 | $ | 700 | $ | 683,117 | $ | (89,984) | $ | (9,551) | 11,796,623 | $ | (143,876) | $ | 440,711 | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for settlement of equity awards | 620,835 | 6 | — | — | 189 | — | — | — | — | 195 | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement | (122,480) | (1) | — | — | (1,573) | — | — | — | — | (1,574) | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | 285,611 | (3,379) | (3,379) | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation expense | — | — | — | — | 10,235 | — | — | — | — | 10,235 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 11,714 | — | — | — | 11,714 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | (3,308) | — | — | (3,308) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2024 | 31,020,925 | $ | 310 | 70,032,694 | $ | 700 | $ | 691,968 | $ | (78,270) | $ | (12,859) | 12,082,234 | $ | (147,255) | $ | 454,594 | ||||||||||||||||||||||||||||||||||||||||||
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 | |||||||||||||||||
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 11,714 | $ | 9,509 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | 10,789 | 9,661 | |||||||||
Amortization of intangibles | 4,985 | 5,124 | |||||||||
Amortization of debt financing fees | 149 | 149 | |||||||||
Loss (gain) on disposal of assets | (177) | 65 | |||||||||
Benefit from credit losses | (258) | — | |||||||||
Unrealized foreign exchange losses (gains) on forward contracts | 1,497 | (6,336) | |||||||||
Deferred taxes | (1,094) | (90) | |||||||||
Stock-based compensation expense | 10,235 | 13,464 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | 11,296 | 8,070 | |||||||||
Prepaid expenses and other current assets | (331) | (16) | |||||||||
Operating lease right-of-use assets | 3,941 | 3,825 | |||||||||
Other noncurrent assets | 207 | 34 | |||||||||
Accounts payable and accrued liabilities | (3,866) | (5,356) | |||||||||
Accrued payroll and employee-related liabilities | 805 | 3,520 | |||||||||
Operating lease liabilities | (4,374) | (3,310) | |||||||||
Income tax payable | 5,614 | 5,789 | |||||||||
Deferred revenue | 47 | (417) | |||||||||
Other noncurrent liabilities | (2) | (2) | |||||||||
Net cash provided by operating activities | 51,177 | 43,683 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchase of property and equipment | (3,572) | (5,244) | |||||||||
Investment in loan receivable | — | (1,000) | |||||||||
Net cash used in investing activities | (3,572) | (6,244) | |||||||||
Cash flows from financing activities: | |||||||||||
Payments on long-term debt | (1,688) | (675) | |||||||||
Proceeds from employee stock plans | 195 | 209 | |||||||||
Payments for taxes related to net share settlement | (1,574) | (257) | |||||||||
Payments for stock repurchases | (2,597) | (6,374) | |||||||||
Net cash used in financing activities | (5,664) | (7,097) | |||||||||
Increase in cash and cash equivalents | 41,941 | 30,342 | |||||||||
Effect of exchange rate changes on cash | (2,367) | 2,677 | |||||||||
Cash and cash equivalents at beginning of period | 125,776 | 133,992 | |||||||||
Cash and cash equivalents at end of period | $ | 165,350 | $ | 167,011 |
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 |
(d) Concentration Risk |
Client | Service revenue percentage | |||||||||||||||||||||||||
Three months ended March 31, | ||||||||||||||||||||||||||
2024 | 2023 | |||||||||||||||||||||||||
A | 19 | % | 20 | % | ||||||||||||||||||||||
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 | ||||||||||||||
Client | March 31, 2024 | December 31, 2023 | ||||||||||||
A | 15 | % | 16 | % | ||||||||||
B | 11 | % | 12 | % | ||||||||||
Accounts receivable percentage | ||||||||
Customer | June 30, 2021 | December 31, 2020 | ||||||
A | 14 | % | 22 | % | ||||
B | 16 | % | 16 | % |
(e) Recent Accounting Pronouncements |
Three months ended March 31, | |||||||||||||||||||||||
(in thousands) | 2024 | 2023 | |||||||||||||||||||||
Digital Customer Experience | $ | 143,491 | $ | 157,136 | |||||||||||||||||||
Trust and Safety | 55,272 | 40,598 | |||||||||||||||||||||
AI Services | 28,707 | 37,572 | |||||||||||||||||||||
Service revenue | $ | 227,470 | $ | 235,306 |
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 March 31, | |||||||||||||||||||||||
(in thousands) | 2024 | 2023 | |||||||||||||||||||||
Philippines | $ | 131,213 | $ | 126,859 | |||||||||||||||||||
United States | 25,590 | 46,662 | |||||||||||||||||||||
India | 28,909 | 28,243 | |||||||||||||||||||||
Rest of World | 41,758 | 33,542 | |||||||||||||||||||||
Service revenue | $ | 227,470 | $ | 235,306 |
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 | ||||||||
Three months ended March 31, | ||||||||||||||||||||||||||
(in thousands) | 2024 | 2023 | ||||||||||||||||||||||||
Notional amount of settled forward contracts in Philippine pesos | $ | 45,964 | $ | 59,425 | ||||||||||||||||||||||
Notional amount of settled forward contracts in Indian rupees | 12,405 | — | ||||||||||||||||||||||||
Total notional amount of settled forward contracts | $ | 58,369 | $ | 59,425 | ||||||||||||||||||||||
Realized losses from settlement of forward contracts | $ | 693 | $ | 1,618 | ||||||||||||||||||||||
Unrealized losses (gains) on forward contracts | $ | 1,497 | $ | (6,336) |
(in thousands) | March 31, 2024 | December 31, 2023 | |||||||||
Notional amount of outstanding forward contracts in Philippine pesos | $ | 123,065 | $ | 169,029 | |||||||
Notional amount of outstanding forward contracts in Indian rupees | 32,788 | 45,193 | |||||||||
Total notional amount of outstanding forward contracts | $ | 155,853 | $ | 214,222 |
March 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements using | Total Gross Fair Value | Effect of Counter-party Netting | Net Amounts on Balance Sheet | Effect of Master Netting Arrangements | Net Amounts | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 inputs | Level 2 inputs | Level 3 inputs | ||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Forward contracts receivable | $ | — | $ | 103 | $ | — | $ | 103 | $ | — | $ | 103 | $ | (31) | $ | 72 | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Forward contracts payable | $ | — | $ | 2,289 | $ | — | $ | 2,289 | $ | — | $ | 2,289 | $ | (31) | $ | 2,258 | |||||||||||||||||||||||||||||||
December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Fair value measurements using | Total Gross Fair Value | Effect of Counter-party Netting | Net Amounts on Balance Sheet | Effect of Master Netting Arrangements | Net Amounts | ||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 inputs | Level 2 inputs | Level 3 inputs | ||||||||||||||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Forward contracts receivable | $ | — | $ | 95 | $ | — | $ | 95 | $ | — | $ | 95 | $ | (95) | $ | — | |||||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Forward contracts payable | $ | — | $ | 784 | $ | — | $ | 784 | $ | — | $ | 784 | $ | (95) | $ | 689 |
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) | March 31, 2024 | December 31, 2023 | |||||||||
Leasehold improvements | $ | 67,932 | $ | 67,552 | |||||||
Technology and computers | 106,123 | 105,375 | |||||||||
Furniture and fixtures | 7,499 | 7,392 | |||||||||
Construction in process | 1,677 | 1,140 | |||||||||
Other property and equipment | 14,231 | 14,238 | |||||||||
Property and equipment, gross | 197,462 | 195,697 | |||||||||
Accumulated depreciation | (135,685) | (126,804) | |||||||||
Property and equipment, net | $ | 61,777 | $ | 68,893 |
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) | March 31, 2024 | December 31, 2023 | |||||||||
Philippines | $ | 25,738 | $ | 29,765 | |||||||
United States | 6,171 | 7,308 | |||||||||
India | 15,032 | 17,452 | |||||||||
Rest of World | 14,836 | 14,368 | |||||||||
Property and equipment, net | $ | 61,777 | $ | 68,893 |
(in thousands) | |||||
Balance as of December 31, 2023 | $ | 218,108 | |||
Foreign currency translation | (495) | ||||
Balance as of March 31, 2024 | $ | 217,613 |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Intangibles, Gross | Accumulated Amortization | Intangibles, Net | Intangibles, Gross | Accumulated Amortization | Intangibles, Net | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 251,653 | $ | (90,419) | $ | 161,234 | $ | 251,899 | $ | (86,176) | $ | 165,723 | |||||||||||||||||||||||||||||
Trade names | 41,900 | (15,363) | 26,537 | 41,900 | (14,665) | 27,235 | |||||||||||||||||||||||||||||||||||
Other intangibles | 206 | (206) | — | 236 | (236) | — | |||||||||||||||||||||||||||||||||||
Total | $ | 293,759 | $ | (105,988) | $ | 187,771 | $ | 294,035 | $ | (101,077) | $ | 192,958 |
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 | |||||||||
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
(in thousands) | Current | Noncurrent | Total | Current | Noncurrent | Total | |||||||||||||||||||||||||||||
Term Loan | $ | 10,125 | $ | 253,800 | $ | 263,925 | $ | 8,438 | $ | 257,175 | $ | 265,613 | |||||||||||||||||||||||
Less: Debt financing fees | (378) | (915) | (1,293) | (379) | (1,009) | (1,388) | |||||||||||||||||||||||||||||
Total | $ | 9,747 | $ | 252,885 | $ | 262,632 | $ | 8,059 | $ | 256,166 | $ | 264,225 |
(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 | ||||||
Three months ended March 31, | ||||||||||||||||||||||||||
(in thousands) | 2024 | 2023 | ||||||||||||||||||||||||
Operating lease costs - Cost of services | $ | 4,477 | $ | 4,397 |
March 31, 2024 | December 31, 2023 | |||||||||||||
Weighted average remaining lease term | 3.3 years | 3.5 years | ||||||||||||
Weighted average discount rate | 6.4 | % | 6.3 | % |
Three months ended March 31, | ||||||||||||||
(in thousands) | 2024 | 2023 | ||||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 4,831 | $ | 4,259 | ||||||||||
ROU assets obtained in exchange for operating lease liabilities | 812 | 2,628 |
(in thousands) | ||||||||
2024-remainder of year | $ | 13,205 | ||||||
2025 | 15,003 | |||||||
2026 | 9,681 | |||||||
2027 | 5,184 | |||||||
2028 | 1,705 | |||||||
Thereafter | 1,657 | |||||||
Total lease payments | 46,435 | |||||||
Less: imputed interest | (4,723) | |||||||
Total lease liabilities | $ | 41,712 |
Options | RSUs | ||||||||||||||||||||||
Number of options | Weighted - average exercise price | Number of RSUs | Weighted - average grant date fair value | ||||||||||||||||||||
Outstanding at January 1, 2024 | 7,523,971 | $ | 14.19 | 3,864,319 | $ | 23.60 | |||||||||||||||||
Granted | — | $ | — | 2,125,048 | $ | 12.35 | |||||||||||||||||
Exercised or released | (52,452) | $ | 3.72 | (568,383) | $ | 20.42 | |||||||||||||||||
Forfeited, cancelled or expired | (35,712) | $ | 19.74 | (87,232) | $ | 26.08 | |||||||||||||||||
Outstanding at March 31, 2024 | 7,435,807 | $ | 14.23 | 5,333,752 | $ | 19.42 |
Three months ended March 31, | |||||||||||||||||||||||
(in thousands) | 2024 | 2023 | |||||||||||||||||||||
Cost of services | $ | 680 | $ | 877 | |||||||||||||||||||
Selling, general, and administrative expense | 9,555 | 12,587 | |||||||||||||||||||||
Total | $ | 10,235 | $ | 13,464 |
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 March 31, | |||||||||||||||||||||||
(in thousands, except share and per share data) | 2024 | 2023 | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income | $ | 11,714 | $ | 9,509 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average common shares outstanding – basic | 88,795,211 | 97,561,650 | |||||||||||||||||||||
Effect of dilutive securities | 3,054,675 | 3,390,923 | |||||||||||||||||||||
Weighted-average common shares outstanding – diluted | 91,849,886 | 100,952,573 | |||||||||||||||||||||
Net income per common share: | |||||||||||||||||||||||
Basic | $ | 0.13 | $ | 0.10 | |||||||||||||||||||
Diluted | $ | 0.13 | $ | 0.09 |
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 June 30, 2021 | Three months ended June 30, 2020 | Period over Period Change ($) | Period Over Period Change (%) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended March 31, | Period over Period Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except %) | (in thousands, except %) | 2024 | 2023 | ($) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 65,622 | 57.4 | % | Service revenue | $ | 227,470 | $ | $ | 235,306 | $ | $ | (7,836) | (3.3) | (3.3) | % | |||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | 103,798 | 64,135 | 39,663 | 61.8 | % | 135,411 | 137,762 | 137,762 | (2,351) | (2,351) | (1.7) | (1.7) | % | ||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expense | 177,810 | 25,709 | 152,101 | 591.6 | % | Selling, general, and administrative expense | 52,904 | 64,294 | 64,294 | (11,390) | (11,390) | (17.7) | (17.7) | % | |||||||||||||||||||||||||||||||||||||||
Depreciation | 6,729 | 5,815 | 914 | 15.7 | % | Depreciation | 10,789 | 9,661 | 9,661 | 1,128 | 1,128 | 11.7 | 11.7 | % | |||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 4,712 | 4,712 | — | — | Amortization of intangible assets | 4,985 | 5,124 | 5,124 | (139) | (139) | (2.7) | (2.7) | % | ||||||||||||||||||||||||||||||||||||||||
Loss on disposal of assets | 1 | — | 1 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Contingent consideration | — | 3,570 | (3,570 | ) | (100.0 | )% | |||||||||||||||||||||||||||||||||||||||||||||||
Loss (gain) on disposal of assets | Loss (gain) on disposal of assets | (177) | 65 | (242) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||
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 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 203,912 | 216,906 | (12,994) | (6.0) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Operating income | Operating income | 23,558 | 18,400 | 5,158 | 28.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | (202) | (2,177) | 1,975 | (90.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Financing expenses | 1,594 | 1,959 | (365 | ) | (18.6 | )% | Financing expenses | 5,538 | 5,099 | 5,099 | 439 | 439 | 8.6 | 8.6 | % | ||||||||||||||||||||||||||||||||||||||
(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 | )% | |||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 18,222 | 15,478 | 2,744 | 17.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | Provision for income taxes | 6,508 | 5,969 | 539 | 9.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 11,714 | $ | 9,509 | $ | 2,205 | 23.2 | % |
Three months ended March 31, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2024 | 2023 | ($) | (%) | |||||||||||||||||||
Digital Customer Experience | $ | 143,491 | $ | 157,136 | $ | (13,645) | (8.7) | % | |||||||||||||||
Trust and Safety | 55,272 | 40,598 | 14,674 | 36.1 | % | ||||||||||||||||||
AI Services | 28,707 | 37,572 | (8,865) | (23.6) | % | ||||||||||||||||||
Service revenue | $ | 227,470 | $ | 235,306 | $ | (7,836) | (3.3) | % |
(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 ($) | Period over Period Change (%) | |||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended March 31, | Period over Period Change | |||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except %) | (in thousands, except %) | 2024 | 2023 | ($) | (%) | ||||||||||||||||||||||||||||||||||||||||||||||||
Philippines | $ | 95,681 | $ | 62,842 | $ | 32,839 | 52.3 | % | Philippines | $ | 131,213 | $ | $ | 126,859 | $ | $ | 4,354 | 3.4 | 3.4 | % | |||||||||||||||||||||||||||||||||
United States | 58,930 | 43,429 | 15,501 | 35.7 | % | United States | 25,590 | 46,662 | 46,662 | (21,072) | (21,072) | (45.2) | (45.2) | % | |||||||||||||||||||||||||||||||||||||||
India | India | 28,909 | 28,243 | 666 | 2.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Rest of World | 25,411 | 8,129 | 17,282 | 212.6 | % | Rest of World | 41,758 | 33,542 | 33,542 | 8,216 | 8,216 | 24.5 | 24.5 | % | |||||||||||||||||||||||||||||||||||||||
Service revenue | $ | 180,022 | $ | 114,400 | $ | 65,622 | 57.4 | % | Service revenue | $ | 227,470 | $ | $ | 235,306 | $ | $ | (7,836) | (3.3) | (3.3) | % | |||||||||||||||||||||||||||||||||
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 | )% | ||||||
(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 (%) | ||||||||||||
Philippines | $ | 180,259 | $ | 118,716 | $ | 61,543 | 51.8 | % | ||||||||
United States | 109,687 | 84,074 | 25,613 | 30.5 | % | |||||||||||
Rest of World | 42,947 | 14,039 | 28,908 | 205.9 | % | |||||||||||
Service revenue | $ | 332,893 | $ | 216,829 | $ | 116,064 | 53.5 | % | ||||||||
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
Top ten clients | 56 | % | 58 | % | |||||||||||||||||||
Top twenty clients | 67 | % | 71 | % |
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 March 31, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2024 | 2023 | ($) | (%) | |||||||||||||||||||
Net income | $ | 11,714 | $ | 9,509 | $ | 2,205 | 23.2 | % | |||||||||||||||
Amortization of intangible assets | 4,985 | 5,124 | (139) | (2.7) | % | ||||||||||||||||||
Transaction costs(1) | — | 245 | (245) | (100.0) | % | ||||||||||||||||||
Earn-out consideration(2) | — | 6,648 | (6,648) | (100.0) | % | ||||||||||||||||||
Foreign currency losses (gains)(3) | 1,014 | (1,982) | 2,996 | NM | |||||||||||||||||||
Loss (gain) on disposal of assets | (177) | 65 | (242) | NM | |||||||||||||||||||
Severance costs(4) | 487 | 1,218 | (731) | (60.0) | % | ||||||||||||||||||
Litigation costs(5) | 300 | — | 300 | 100.0 | % | ||||||||||||||||||
Stock-based compensation expense(6) | 10,564 | 13,672 | (3,108) | (22.7) | % | ||||||||||||||||||
Tax impacts of adjustments(7) | (1,615) | (1,988) | 373 | (18.8) | % | ||||||||||||||||||
Adjusted Net Income | $ | 27,272 | $ | 32,511 | $ | (5,239) | (16.1) | % | |||||||||||||||
Net Income Margin(8) | 5.1 | % | 4.0 | % | |||||||||||||||||||
Adjusted Net Income Margin(8) | 12.0 | % | 13.8 | % |
(8) Net |
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 | % | ||||||||||||
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 | ||||||||||||
Three months ended March 31, | |||||||||||||||||||||||
2024 | 2023 | ||||||||||||||||||||||
GAAP diluted EPS | $ | 0.13 | $ | 0.09 | |||||||||||||||||||
Per share adjustments to net income(1) | 0.17 | 0.23 | |||||||||||||||||||||
Adjusted EPS | $ | 0.30 | $ | 0.32 | |||||||||||||||||||
Weighted-average common shares outstanding – diluted | 91,849,886 | 100,952,573 | |||||||||||||||||||||
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 | % | ||||||||||||
Three months ended March 31, | Period over Period Change | ||||||||||||||||||||||
(in thousands, except %) | 2024 | 2023 | ($) | (%) | |||||||||||||||||||
Net income | $ | 11,714 | $ | 9,509 | $ | 2,205 | 23.2 | % | |||||||||||||||
Provision for income taxes | 6,508 | 5,969 | 539 | 9.0 | % | ||||||||||||||||||
Financing expenses | 5,538 | 5,099 | 439 | 8.6 | % | ||||||||||||||||||
Depreciation | 10,789 | 9,661 | 1,128 | 11.7 | % | ||||||||||||||||||
Amortization of intangible assets | 4,985 | 5,124 | (139) | (2.7) | % | ||||||||||||||||||
EBITDA | $ | 39,534 | $ | 35,362 | $ | 4,172 | 11.8 | % | |||||||||||||||
Transaction costs(1) | — | 245 | (245) | (100.0) | % | ||||||||||||||||||
Earn-out consideration(2) | — | 6,648 | (6,648) | (100.0) | % | ||||||||||||||||||
Foreign currency losses (gains)(3) | 1,014 | (1,982) | 2,996 | NM | |||||||||||||||||||
Loss (gain) on disposal of assets | (177) | 65 | (242) | NM | |||||||||||||||||||
Severance costs(4) | 487 | 1,218 | (731) | (60.0) | % | ||||||||||||||||||
Litigation costs(5) | 300 | — | 300 | 100.0 | % | ||||||||||||||||||
Stock-based compensation expense(6) | 10,564 | 13,672 | (3,108) | (22.7) | % | ||||||||||||||||||
Interest income(7) | (1,117) | (195) | (922) | 472.8 | % | ||||||||||||||||||
Adjusted EBITDA | $ | 50,605 | $ | 55,033 | $ | (4,428) | (8.0) | % | |||||||||||||||
Net Income Margin(8) | 5.1 | % | 4.0 | % | |||||||||||||||||||
Adjusted EBITDA Margin(8) | 22.2 | % | 23.4 | % |
Three months ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Net cash provided by operating activities | $ | 51,177 | $ | 43,683 | |||||||
Purchase of property and equipment | (3,572) | (5,244) | |||||||||
Free Cash Flow | $ | 47,605 | $ | 38,439 | |||||||
Conversion of Adjusted EBITDA(1) | 94.1 | % | 69.8 | % | |||||||
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 | % | ||||||||||||
Three months ended March 31, | |||||||||||
(in thousands) | 2024 | 2023 | |||||||||
Net cash provided by operating activities | $ | 51,177 | $ | 43,683 | |||||||
Net cash used in investing activities | (3,572) | (6,244) | |||||||||
Net cash used in financing activities | (5,664) | (7,097) |
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 |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (in thousands) | |||||||||||||||||||
January 1, 2024 through January 31, 2024 | 49,531 | $ | 11.99 | 49,531 | $ | 56,666 | |||||||||||||||||
February 1, 2024 through February 29, 2024 | 68,414 | 11.99 | 68,414 | 55,846 | |||||||||||||||||||
March 1, 2024 through March 31, 2024 | 167,666 | 11.86 | 167,666 | 53,856 | |||||||||||||||||||
Total | 285,611 | $ | 11.91 | 285,611 |
(1) | On May 8, 2023, the Company announced that the Board of Directors of the Company authorized a $100.0 million increase to the Company's share repurchase program, increasing the total authorization to $200.0 million, with the total amount remaining available after the increase being exclusive of any commissions, fees or excise taxes. Pursuant to our share repurchase program, we may repurchase shares of our Class A common stock from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act. Open market repurchases are expected to be structured to occur within the pricing volume requirements of Rule 10b-18. The timing and total amount of stock repurchases will depend upon, business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, restrictions under the terms of our loan agreements and other relevant considerations. The repurchase program terminates on December 31, 2024, and may be modified, suspended or discontinued at any time at our discretion. The program does not obligate the Company to acquire any amount of Class A common stock. | ||||
(2) | Average price paid per share excludes commissions and other costs associated with the repurchases. |
** Furnished herewith. |
TASKUS, INC. | |||||||||||||||||
Date: | May 10, 2024 | /s/ Balaji Sekar | |||||||||||||||
Balaji Sekar | |||||||||||||||||
Chief Financial Officer | |||||||||||||||||
(Principal Financial Officer) | |||||||||||||||||
(Authorized Signatory) | |||||||||||||||||
Date: | May 10, 2024 | /s/ Steven Amaya | |||||||||||||||
Steven Amaya | |||||||||||||||||
Senior Vice President—Finance | |||||||||||||||||
(Principal Accounting Officer) |