Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 02, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40482 | |
Entity Registrant Name | TaskUs, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 83-1586636 | |
Entity Address, Address Line One | 1650 Independence Drive | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | New Braunfels | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78132 | |
City Area Code | 888 | |
Local Phone Number | 400-8275 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | TASK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001829864 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 27,542,032 | |
Class B convertible common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 70,032,694 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 122,491 | $ 63,584 |
Accounts receivable, net of allowance for doubtful accounts of $3,148 and $1,819, as of September 30, 2022 and December 31, 2021, respectively | 170,616 | 162,895 |
Other receivables | 1,202 | 597 |
Prepaid expenses | 15,573 | 10,939 |
Income tax receivable | 19,441 | 3,863 |
Other current assets | 5,411 | 4,428 |
Total current assets | 334,734 | 246,306 |
Noncurrent assets: | ||
Property and equipment, net | 75,063 | 80,046 |
Operating lease right-of-use assets | 37,787 | 0 |
Deferred tax assets | 1,276 | 1,441 |
Intangibles | 217,185 | 221,448 |
Goodwill | 215,282 | 195,735 |
Other noncurrent assets | 6,086 | 5,022 |
Total noncurrent assets | 552,679 | 503,692 |
Total assets | 887,413 | 749,998 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 43,899 | 40,890 |
Accrued payroll and employee-related liabilities | 44,129 | 36,670 |
Current portion of debt | 2,322 | 51,135 |
Current portion of operating lease liabilities | 11,312 | 0 |
Current portion of income tax payable | 3,942 | 2,416 |
Deferred revenue | 3,350 | 4,095 |
Deferred rent | 0 | 735 |
Total current liabilities | 108,954 | 135,941 |
Noncurrent liabilities: | ||
Income tax payable | 2,555 | 2,886 |
Long-term debt | 265,818 | 187,240 |
Operating lease liabilities | 29,192 | 0 |
Deferred rent | 0 | 2,749 |
Accrued payroll and employee-related liabilities | 2,542 | 1,813 |
Deferred tax liabilities | 41,451 | 40,235 |
Other noncurrent liabilities | 1,974 | 0 |
Total noncurrent liabilities | 343,532 | 234,923 |
Total liabilities | 452,486 | 370,864 |
Commitments and Contingencies (See Note 10) | ||
Shareholders’ equity: | ||
Additional paid-in capital | 616,645 | 556,418 |
Accumulated deficit | (151,416) | (176,096) |
Accumulated other comprehensive loss | (17,588) | (2,163) |
Treasury Stock | (13,702) | 0 |
Total shareholders’ equity | 434,927 | 379,134 |
Total liabilities and shareholders’ equity | 887,413 | 749,998 |
Class A common stock | ||
Shareholders’ equity: | ||
Common stock | 288 | 275 |
Class B convertible common stock | ||
Shareholders’ equity: | ||
Common stock | $ 700 | $ 700 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Allowance for doubtful accounts | $ 3,148 | $ 1,819 |
Class A common stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 2,500,000,000 | 2,500,000,000 |
Common stock, shares issued (in shares) | 28,811,232 | 27,431,264 |
Common stock, shares outstanding (in shares) | 28,811,232 | 27,431,264 |
Class B convertible common stock | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 70,032,694 | 70,032,694 |
Common stock, shares outstanding (in shares) | 70,032,694 | 70,032,694 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | |||
Service revenue | $ 232,130 | $ 201,053 | $ 718,269 | $ 533,946 |
Operating expenses: | ||||
Cost of services | 134,544 | 112,423 | 419,364 | 304,251 |
Selling, general, and administrative expense | 62,348 | 60,342 | 195,514 | 269,650 |
Depreciation | 9,428 | 7,422 | 27,986 | 20,354 |
Amortization of intangible assets | 5,087 | 4,711 | 14,765 | 14,135 |
Loss (gain) on disposal of assets | (8) | 26 | (18) | 54 |
Total operating expenses | 211,399 | 184,924 | 657,611 | 608,444 |
Operating income (loss) | 20,731 | 16,129 | 60,658 | (74,498) |
Other expense | 7,612 | 1,204 | 16,042 | 299 |
Financing expenses | 3,859 | 1,633 | 7,665 | 4,808 |
Income (loss) before income taxes | 9,260 | 13,292 | 36,951 | (79,605) |
Provision for (benefit from) income taxes | 3,895 | 1,656 | 12,271 | (1,805) |
Net income (loss) | $ 5,365 | $ 11,636 | $ 24,680 | $ (77,800) |
Net income (loss) per common share: | ||||
Basic (in usd per share) | $ 0.05 | $ 0.12 | $ 0.25 | $ (0.83) |
Diluted (in usd per share) | $ 0.05 | $ 0.11 | $ 0.24 | $ (0.83) |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 98,299,612 | 97,290,174 | 97,854,944 | 93,994,896 |
Diluted (in shares) | 101,920,413 | 109,426,011 | 103,073,208 | 93,994,896 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 5,365 | $ 11,636 | $ 24,680 | $ (77,800) |
Retirement benefit reserves | 28 | 37 | 65 | 29 |
Foreign currency translation adjustments | (7,613) | (3,957) | (15,490) | (5,296) |
Comprehensive income (loss) | $ (2,220) | $ 7,716 | $ 9,255 | $ (83,067) |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Total | Class A common stock | Class B convertible common stock | Common Stock Class A common stock | Common Stock Class B convertible common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive loss | Treasury stock |
Beginning balance of common stock (in shares) at Dec. 31, 2020 | 0 | 91,737,020 | |||||||
Beginning balance at Dec. 31, 2020 | $ 335,137 | $ 0 | $ 917 | $ 398,202 | $ (67,398) | $ 3,416 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 16,507 | 16,507 | |||||||
Other comprehensive loss | (855) | (855) | |||||||
Ending balance of common stock (in shares) at Mar. 31, 2021 | 0 | 91,737,020 | |||||||
Ending balance at Mar. 31, 2021 | 350,789 | $ 0 | $ 917 | 398,202 | (50,891) | 2,561 | |||
Beginning balance of common stock (in shares) at Dec. 31, 2020 | 0 | 91,737,020 | |||||||
Beginning balance at Dec. 31, 2020 | 335,137 | $ 0 | $ 917 | 398,202 | (67,398) | 3,416 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (77,800) | ||||||||
Ending balance of common stock (in shares) at Sep. 30, 2021 | 15,180,000 | 82,110,174 | |||||||
Ending balance at Sep. 30, 2021 | 342,984 | $ 152 | $ 821 | 539,060 | (195,198) | (1,851) | |||
Beginning balance of common stock (in shares) at Mar. 31, 2021 | 0 | 91,737,020 | |||||||
Beginning balance at Mar. 31, 2021 | 350,789 | $ 0 | $ 917 | 398,202 | (50,891) | 2,561 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock (in shares) | 5,553,154 | ||||||||
Issuance of common stock for settlement of equity awards | 115,900 | $ 56 | 115,844 | ||||||
Conversion of Class B convertible common stock (in shares) | 9,626,846 | (9,626,846) | |||||||
Conversion of Class B convertible common stock | 0 | $ 96 | $ (96) | ||||||
Stock-based compensation expense | 5,771 | 5,771 | |||||||
Dividends | (50,000) | (50,000) | |||||||
Net income (loss) | (105,943) | (105,943) | |||||||
Other comprehensive loss | (492) | (492) | |||||||
Ending balance of common stock (in shares) at Jun. 30, 2021 | 15,180,000 | 82,110,174 | |||||||
Ending balance at Jun. 30, 2021 | 316,025 | $ 152 | $ 821 | 519,817 | (206,834) | 2,069 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation expense | 19,243 | 19,243 | |||||||
Net income (loss) | 11,636 | 11,636 | |||||||
Other comprehensive loss | (3,920) | (3,920) | |||||||
Ending balance of common stock (in shares) at Sep. 30, 2021 | 15,180,000 | 82,110,174 | |||||||
Ending balance at Sep. 30, 2021 | 342,984 | $ 152 | $ 821 | 539,060 | (195,198) | (1,851) | |||
Beginning balance of common stock (in shares) at Dec. 31, 2021 | 27,431,264 | 70,032,694 | 27,431,264 | 70,032,694 | |||||
Beginning balance at Dec. 31, 2021 | 379,134 | $ 275 | $ 700 | 556,418 | (176,096) | (2,163) | $ 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of RSUs (in shares) | 137,794 | ||||||||
Issuance of common stock for settlement of RSUs | 0 | $ 1 | (1) | ||||||
Shares withheld related to net share settlement (in shares) | (45,389) | ||||||||
Shares withheld related to net share settlement | (1,469) | $ (1) | (1,468) | ||||||
Stock-based compensation expense | 19,605 | 19,605 | |||||||
Net income (loss) | 11,586 | 11,586 | |||||||
Other comprehensive loss | (1,756) | (1,756) | |||||||
Ending balance of common stock (in shares) at Mar. 31, 2022 | 27,523,669 | 70,032,694 | |||||||
Ending balance at Mar. 31, 2022 | 407,100 | $ 275 | $ 700 | 574,554 | (164,510) | (3,919) | 0 | ||
Beginning balance of common stock (in shares) at Dec. 31, 2021 | 27,431,264 | 70,032,694 | 27,431,264 | 70,032,694 | |||||
Beginning balance at Dec. 31, 2021 | 379,134 | $ 275 | $ 700 | 556,418 | (176,096) | (2,163) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 24,680 | ||||||||
Ending balance of common stock (in shares) at Sep. 30, 2022 | 28,811,232 | 70,032,694 | 28,811,232 | 70,032,694 | |||||
Ending balance at Sep. 30, 2022 | 434,927 | $ 288 | $ 700 | 616,645 | (151,416) | (17,588) | (13,702) | ||
Beginning balance of common stock (in shares) at Mar. 31, 2022 | 27,523,669 | 70,032,694 | |||||||
Beginning balance at Mar. 31, 2022 | 407,100 | $ 275 | $ 700 | 574,554 | (164,510) | (3,919) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock (in shares) | 450,304 | ||||||||
Issuance of common stock for settlement of equity awards | 920 | $ 5 | 915 | ||||||
Shares withheld related to net share settlement (in shares) | (76,908) | ||||||||
Shares withheld related to net share settlement | (1,308) | $ (1) | (1,307) | ||||||
Shares issued in acquisition of heloo (in shares) | 200,103 | ||||||||
Shares issued in acquisition of heloo | 7,196 | $ 2 | 7,194 | ||||||
Stock-based compensation expense | 18,933 | 18,933 | |||||||
Net income (loss) | 7,729 | 7,729 | |||||||
Other comprehensive loss | (6,084) | (6,084) | |||||||
Ending balance of common stock (in shares) at Jun. 30, 2022 | 28,097,168 | 70,032,694 | |||||||
Ending balance at Jun. 30, 2022 | 434,486 | $ 281 | $ 700 | 600,289 | (156,781) | (10,003) | 0 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock (in shares) | 774,758 | ||||||||
Issuance of common stock for settlement of equity awards | 1,297 | $ 8 | 1,289 | ||||||
Shares withheld related to net share settlement (in shares) | (60,694) | ||||||||
Shares withheld related to net share settlement | (1,160) | $ (1) | (1,159) | ||||||
Repurchase of common stock | (13,702) | (13,702) | |||||||
Stock-based compensation expense | 16,226 | 16,226 | |||||||
Net income (loss) | 5,365 | 5,365 | |||||||
Other comprehensive loss | (7,585) | (7,585) | |||||||
Ending balance of common stock (in shares) at Sep. 30, 2022 | 28,811,232 | 70,032,694 | 28,811,232 | 70,032,694 | |||||
Ending balance at Sep. 30, 2022 | $ 434,927 | $ 288 | $ 700 | $ 616,645 | $ (151,416) | $ (17,588) | $ (13,702) |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Shareholders’ Equity (Parenthetical) | 3 Months Ended |
Jun. 30, 2021 $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Distribution of dividends (in usd per share) | $ 0.55 |
Unaudited Condensed Consolida_7
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 24,680 | $ (77,800) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation | 27,986 | 20,354 |
Amortization of intangibles | 14,765 | 14,135 |
Amortization of debt financing fees | 420 | 387 |
Loss (gain) on disposal of assets | (18) | 54 |
Provision for losses on accounts receivable | 1,329 | 705 |
Unrealized foreign exchange losses on forward contracts | 13,522 | 5,831 |
Deferred taxes | (39) | (9,692) |
Stock-based compensation expense | 54,764 | 25,014 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6,995) | (70,560) |
Other receivables, prepaid expenses, and other current assets | (8,022) | (4,753) |
Operating lease right-of-use assets | 9,762 | 0 |
Other noncurrent assets | (522) | (1,211) |
Accounts payable and accrued liabilities | (3,941) | 4,793 |
Accrued payroll and employee-related liabilities | 10,477 | 24,524 |
Operating lease liabilities and deferred rent | (9,146) | 834 |
Income tax payable | (13,918) | 1,820 |
Deferred revenue | (738) | 2,139 |
Other noncurrent liabilities | 98 | 0 |
Net cash provided by (used in) operating activities | 114,464 | (63,426) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (36,010) | (38,603) |
Acquisition, net of cash acquired | (23,235) | 0 |
Net cash used in investing activities | (59,245) | (38,603) |
Cash flows from financing activities: | ||
Proceeds from borrowings, Revolving credit facility | 32,500 | 0 |
Proceeds from long-term debt | 270,000 | 0 |
Payments on long-term debt | (272,403) | (3,938) |
Payments for debt financing fees | (1,821) | (340) |
Proceeds from issuance of common stock, net of underwriters’ fees | 0 | 120,698 |
Proceeds from employee stock plans | 2,217 | 0 |
Payments for offering costs | 0 | (4,327) |
Payments for taxes related to net share settlement | (3,937) | 0 |
Payments for stock repurchases | (13,702) | 0 |
Distribution of dividends | 0 | (50,000) |
Net cash provided by financing activities | 12,854 | 62,093 |
Increase (decrease) in cash and cash equivalents | 68,073 | (39,936) |
Effect of exchange rate changes on cash | (9,166) | (6,462) |
Cash and cash equivalents at beginning of period | 63,584 | 107,728 |
Cash and cash equivalents at end of period | $ 122,491 | $ 61,330 |
Description of Business and Org
Description of Business and Organization | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization TaskUs, Inc. (“TaskUs” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) was formed by investment funds affiliated with Blackstone Inc. (“Blackstone”) as a vehicle for the acquisition of TaskUs Holdings, Inc. (“TaskUs Holdings”) on October 1, 2018 (the “Blackstone Acquisition”). Prior to the Blackstone Acquisition, TaskUs had no operations and TaskUs Holdings operated as a standalone entity. TaskUs, Inc. was incorporated in Delaware in July 2018, and is headquartered in New Braunfels, Texas. The Company is a provider of outsourced digital services and next-generation customer experience to fast-growing technology companies, helping its clients represent, protect and grow their brands. The Company's global, omni-channel delivery model is focused on providing its clients three key services - Digital Customer Experience, Content Security and Artificial Intelligence (“AI”) Services (formerly known as AI Operations). The Company has designed its platform to enable it to rapidly scale and benefit from its clients’ growth. Through its agile and responsive operational model, the Company delivers services from multiple delivery sites that span globally from the United States, Philippines, and other parts of the world. The Company’s major service offerings are described in more detail below: • Digital Customer Experience : Principally consists of omni-channel customer care services primarily delivered through digital (non-voice) channels. • Content Security : Principally consists of review and disposition of user and advertiser generated content for purposes which include removal or labeling of policy violating, offensive or misleading content. • AI Services : Principally consists of data labeling, annotation and transcription services performed for the purpose of training and tuning AI algorithms through the process of machine learning. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), as filed with the Securities and Exchange Commission (the “SEC”), includes a discussion of the significant accounting policies used in the preparation of our consolidated financial statements. Other than the adoption of the new lease accounting standard, and the business combination and treasury stock accounting policies, there have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s condensed consolidated financial statements and related notes. These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with US GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Annual Report. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2022 and its results of operations, comprehensive income (loss) and shareholders’ equity for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The condensed consolidated balance sheet as of December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The acquisition of Parsec d.o.o. and Q Experience d.o.o. (collectively, “heloo”) was completed on April 15, 2022; therefore, the Company’s consolidated financial statements only include heloo’s results since April 15, 2022. (b) Use of Estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the determination of useful lives and impairment of fixed assets; allowances for doubtful accounts and other receivables; the valuation of deferred tax assets; the measurement of lease liabilities and right-of-use assets; valuation of foreign currency exchange rate forward contracts; valuation of stock-based compensation; valuation and impairment of intangibles and goodwill and reserves for income tax uncertainties and other contingencies. As of September 30, 2022, the impact of the novel coronavirus (“COVID-19”) pandemic, including as a result of new strains and variants of the virus and uncertainty regarding vaccines and treatments, continues to unfold. As a result, many of our estimates and assumptions required judgement and carry a higher degree of variability and volatility. We continue to closely monitor the outbreak and the impact on our operations and liquidity. As events continue to evolve and additional information becomes available, our estimates may change materially in the future. (c) Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has no involvement with variable interest entities. (d) Concentration Risk Most of the Company’s clients are located in the United States. Clients outside of the United States are concentrated in Europe. For the three and nine months ended September 30, 2022 and 2021, the following clients represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 A 22 % 27 % 23 % 27 % B Less than 10% 11 % Less than 10% 11 % As of September 30, 2022 and December 31, 2021, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client September 30, 2022 December 31, 2021 A 14 % 22 % B 17 % 12 % The Company’s principal operations, including the majority of its employees and the fixed assets owned by its wholly owned subsidiaries, are located in the Philippines. (e) Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. (f) Leases At inception of a contract, the Company determines whether an arrangement is, or contains, a lease based on the substance of the arrangement. In determining whether a contract contains a lease, we consider whether (1) we have the right to obtain substantially all of the economic benefits from the use of the asset throughout the term of the contract, (2) we have the right to direct how and for what purpose the asset is used throughout the term of the contract and (3) we have the right to operate the asset throughout the term of the contract without the lessor having the right to change the terms of the contract. If a lease is identified, the Company determines whether it should be classified as an operating or finance lease at commencement. The Company has various leases for office spaces under operating lease agreements which have a range of expiration dates from one Our right of use (“ROU”) lease assets represent our right to use an underlying asset for the lease term and may include any advance lease payments made. Our ROU lease liabilities represent our obligation to make lease payments arising from the contractual terms of the lease. ROU lease assets and lease liabilities are recognized at the commencement of the lease and are calculated using the present value of lease payments over the lease term. Typically, lease agreements do not provide sufficient detail to arrive at an implicit interest rate. Therefore, the Company uses its estimated incremental borrowing rates (“IBR”) based on information available at the commencement date of the lease to calculate the present value of the lease payments. In estimating its IBR, the Company considers the credit rating, the lease term, the currency of the lease payments and market rates of comparable collateralized borrowings for similar terms. (g) Share Repurchases The Company records its repurchases of common stock at cost, including direct and incremental costs, as a separate component of shareholders' equity. (h) Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies. Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU 2016-02, Leases (Topic 842), which supersedes ASC 840. The Company adopted this standard in the second quarter of 2022, effective as of January 1, 2022, using the modified retrospective method and the effective date as the date of initial application. The Company recorded right-of-use assets of $45.8 million and lease liabilities of $48.5 million, respectively to the consolidated balance sheet. The Company elected the "package of practical expedients," which permits the Company not to reassess under Topic 842 any prior conclusions about lease identification, lease classification and initial direct costs. The Company did not apply the short-term lease exception and will therefore recognize a right-of-use asset and lease liability for all leases. The adoption of the lease standard did not have a material impact on the Company's consolidated statement of operations nor on its consolidated cash flow statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires the company acquiring contract assets and contract liabilities obtained in a business combination to recognize and measure them in accordance with ASC 606, Revenue from Contracts with Customers. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company early adopted ASU 2021-08 as of April 1, 2022. See Note 3, "Business Combination" for additional information and disclosures related to the heloo acquisition. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised standard relates to measurement of credit losses on financial instruments, and requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The guidance replaces the incurred loss model with an expected loss model referred to as current expected credit loss (“CECL”). The CECL model requires us to measure lifetime expected credit losses for financial instruments held at the reporting date using historical experience, current conditions and reasonable supportable forecasts. The guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. This ASU will be effective for the Company beginning in fiscal year 2023 with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-13 on the Company’s consolidated financial statements. |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combination On April 15, 2022 (the “Closing Date”), the Company completed the acquisition of 100% of the equity interests of heloo, a Croatia-based Digital Customer Experience solutions provider to European technology companies supporting 20 languages across seven additional Eastern European countries, including Bosnia, Serbia, and Slovenia. The Company believes this acquisition will be complementary to the Company's growth strategy by expanding its global delivery footprint with a suite of multi-lingual, cost-competitive Digital Customer Experience services. The acquisition date fair value of the consideration transferred was $35.4 million, consisting of the following: (in thousands) Cash consideration (1) $ 26,006 Holdback cash consideration (2) 2,164 Equity consideration (3) 7,196 Total consideration $ 35,366 (1) Represents cash consideration paid to the sellers to complete the acquisition. (2) Represents consideration, which was retained by the Company as security to satisfy sellers' obligations for potential future contractual claims arising under the terms of the purchase agreement; provided that the amount of the holdback shall not serve as any limitation on the indemnification obligations of the sellers under the purchase agreement. The holdback is payable to the sellers, net of any such claims, 18 months after the Closing Date except for a portion of the holdback related to potential tax claims, which is payable three years after the Closing Date, net of any tax claims. (3) Comprised of 200,103 shares of the Company's Class A common stock issued in relation to this acquisition. The fair value was determined on the basis of the closing market price of the Company's Class A common stock on the acquisition date. The following table summarizes the preliminary fair values of assets acq uired and liabilities assumed as of the date of acquisition: (in thousands) Cash and cash equivalents $ 2,771 Intangibles 11,198 Goodwill 21,582 Other assets acquired 3,947 Total assets 39,498 Total liabilities assumed 4,132 Net assets acquired $ 35,366 The preliminary purchase price allocation was based upon a preliminary valuation, and the Company’s estimates and assumptions are subject to change within the measurement period (which may be up to twelve months following the acquisition date). The goodwill is derived from anticipated operational synergies and assembled workforce. None of the goodwill recorded is deductible for tax purposes. The primary areas of the preliminary purchase price allocation that are not yet finalized relate to the valuation of identifiable intangible assets acquired, the fair value of certain tangible assets acquired and liabilities assumed. The Company expects to continue to obtain information for the purpose of determining the fair value of the assets acquired and liabilities assumed on the acquisition date throughout the remainder of the measurement period. The purchase price allocation is subject to further adjustment until all pertinent information regarding the assets acquired is fully evaluated by the Company, including but not limited to, the fair value accounting. The preliminary purchase price allocation includes $11.2 million of acquired identifiable intangible assets, consisting of the following: (in thousands, except useful lives) Estimated Fair Value Estimated Useful Life in Years Customer relationships $ 10,872 10 Trade name 326 2 Total $ 11,198 The preliminary fair values of the identifiable intangible assets have been estimated using the Excess Earnings Method. The intangible assets are being amortized over their estimated useful lives on a straight-line basis that reflects the economic benefit of the assets. The determination of the useful lives is based upon various industry studies, historical acquisition experience, economic factors, and future forecasted cash flows of the Company following the acquisition of heloo. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The Company's revenues are derived from contracts with customers related to business outsourcing services that it provides. The following table presents the breakdown of the Company’s revenues by service offering: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Digital Customer Experience $ 151,474 $ 125,310 $ 478,625 $ 338,587 Content Security 43,910 45,376 136,093 124,498 AI Services 36,746 30,367 103,551 70,861 Service revenue $ 232,130 $ 201,053 $ 718,269 $ 533,946 The majority of the Company’s revenues are derived from contracts with customers who are located in the United States. However, the Company delivers its services from geographies outside of the United States. The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided from: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Philippines $ 127,507 $ 103,837 $ 371,909 $ 284,096 United States 49,040 65,866 202,444 175,553 Rest of World 55,583 31,350 143,916 74,297 Service revenue $ 232,130 $ 201,053 $ 718,269 $ 533,946 Contract Balances Accounts receivable, net of allowance for doubtful accounts includes $81.5 million and $75.5 million of unbilled revenues as of September 30, 2022 and December 31, 2021, respectively. |
Forward Contracts and Fair Valu
Forward Contracts and Fair Value Measurement | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Forward Contracts and Fair Value Measurement | Forward Contracts and Fair Value MeasurementThe Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. During 2022 and 2021, the Company entered into foreign currency exchange rate forward contracts, with two commercial banks as the counterparties, with maturities of generally 12 months or less, to reduce the volatility of cash flows primarily related to forecasted costs denominated in Philippine pesos. The Company does not use foreign currency exchange rate contracts for trading purposes. The exchange rate forward contracts entered into by the Company are not designated as hedging instruments. Any gains or losses resulting from changes in the fair value of these contracts are recognized in other expense in the consolidated statements of operations. The forward contract payable resulting from changes in fair value was recorded under accounts payable and accrued liabilities. The following table presents the Company's settled forward contracts and realized and unrealized losses (gains) associated with derivative contracts: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Total notional amount of settled forward contracts $ 51,247 $ 31,800 $ 139,646 $ 77,400 Realized losses (gains) from settlement of forward contracts $ 4,474 $ 734 $ 8,017 $ (622) Unrealized losses on forward contracts $ 6,070 $ 4,101 $ 13,522 $ 5,831 The following table presents the Company's outstanding forward contracts: (in thousands) September 30, 2022 December 31, 2021 Total notional amount of outstanding forward contracts $ 160,567 $ 127,200 By entering into derivative contracts, the Company is exposed to counterparty credit risk, or the failure of the counterparty to perform under the terms of the derivative contract. For the periods presented, the non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments. The Company has implemented the fair value accounting standard for those assets and liabilities that are re-measured and reported at fair value at each reporting period. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value based on inputs used, and requires additional disclosures about fair value measurements. This standard applies to fair value measurements already required or permitted by existing standards. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset and include situations where there is little, if any, market activity for the asset. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: Fair value measurements using September 30, 2022 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts payable $ — $ 16,315 $ — $ 16,315 $ — $ 2,793 $ — $ 2,793 The Company’s derivatives are carried at fair value using various pricing models that incorporate observable market inputs, such as interest rate yield curves and currency rates, which are Level 2 inputs. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or by the Company. |
Property and Equipment, net
Property and Equipment, net | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The components of property and equipment, net as of September 30, 2022 and December 31, 2021 were as follows: (in thousands) September 30, December 31, Leasehold improvements $ 49,696 $ 38,024 Technology and computers 88,456 81,679 Furniture and fixtures 5,833 4,814 Construction in process 3,818 10,892 Other property and equipment 9,977 8,405 Property and equipment, gross 157,780 143,814 Accumulated depreciation (82,717) (63,768) Property and equipment, net $ 75,063 $ 80,046 The Company’s principal operations are in the Philippines where the majority of property and equipment resides under its wholly owned subsidiaries. The table below presents the Company’s total property and equipment by geographic location as of September 30, 2022 and December 31, 2021: (in thousands) September 30, December 31, Philippines $ 40,264 $ 49,825 United States 9,806 10,273 Rest of World 24,993 19,948 Property and equipment, net $ 75,063 $ 80,046 |
Goodwill and Intangibles
Goodwill and Intangibles | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles On April 15, 2022, the Company completed the acquisition of heloo. As a result of the acquisition, the Company recorded approximately $21.6 million of goodwill and $11.2 million of other identifiable intangible assets. See Note 3, “Business Combination” for additional information. The changes in the carrying amount of goodwill during the period are as follows: (in thousands) Balance as of December 31, 2021 $ 195,735 Acquisition of heloo 21,582 Foreign currency translation (2,035) Balance as of September 30, 2022 $ 215,282 The components of intangible assets as of September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 December 31, 2021 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 250,647 $ (64,664) $ 185,983 $ 240,800 $ (52,175) $ 188,625 Trade name 42,195 (11,241) 30,954 41,900 (9,077) 32,823 Other intangibles 331 (83) 248 — — — Total $ 293,173 $ (75,988) $ 217,185 $ 282,700 $ (61,252) $ 221,448 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-Term Debt The balances of current and non-current portions of debt consist of the following as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 2,700 $ 267,300 $ 270,000 $ 11,813 $ 188,212 $ 200,025 Revolver — — — 39,878 — 39,878 Less: Debt financing fees (378) (1,482) (1,860) (556) (972) (1,528) Total $ 2,322 $ 265,818 $ 268,140 $ 51,135 $ 187,240 $ 238,375 2019 Credit Agreement On September 25, 2019, the Company entered into a credit agreement (the “2019 Credit Agreement”) that included a $210.0 million term loan (the “2019 Term Loan Facility”) and a $40.0 million revolving credit facility (the “2019 Revolving Credit Facility” and, together with the Term Loan Facility, the “2019 Credit Facilities”). On April 30, 2021, the Company entered into Amendment No. 1 to its 2019 Credit Agreement with the existing lenders providing for $50.0 million incremental revolving credit commitments on the same terms as our existing revolving credit facility. On September 7, 2022, the Company entered into the 2022 Credit Agreement (as defined below) and the total outstanding debt under the 2019 Credit Facilities of $267.2 million was fully repaid. 2022 Credit Agreement On September 7, 2022, the Company entered into a credit agreement (the “2022 Credit Agreement”) with both new and existing lenders which amended and restated the 2019 Credit Agreement. The 2022 Credit Agreement includes a $270.0 million term loan (the "2022 Term Loan Facility") and a $190.0 million revolving credit facility (the "2022 Revolving Credit Facility" and, together with the 2022 Term Loan Facility, the “2022 Credit Facilities”). The proceeds of the 2022 Term Loan Facility were used to repay all borrowings under the 2019 Credit Facilities, to pay related fees and expenses and for general corporate purposes (the "Refinancing"). The Refinancing was accounted for as a debt modification for existing lenders and new debt for new lenders, resulting in debt issuance costs, including amounts allocated from the 2019 Credit Facilities, of $1.9 million associated with the 2022 Term Loan Facility and $1.1 million associated with the undrawn 2022 Revolving Credit Facility. Third party fees of $0.3 million associated with the debt modification were recorded in financing expenses on the condensed consolidated statements of operations for the three and nine months ended September 30, 2022. The 2022 Term Loan Facility matures on September 7, 2027, and commencing with the fiscal quarter ending December 31, 2022, requires quarterly principal payments of 0.25% of the original principal amount through September 30, 2023, 0.625% of the original principal amount through September 30, 2024, 1.25% of the original principal amount through September 30, 2025, 1.875% of the original principal amount through September 30, 2026 and 2.50% of the original principal amount thereafter, with the remaining principal due in a lump sum at the maturity date. Voluntary principal prepayments are permitted. The 2022 Revolving Credit Facility provides the Company with access to a $15.0 million letter of credit facility and a $15.0 million swing line facility, each of which, to the extent used, reduces borrowing availability under the 2022 Revolving Credit Facility. The 2022 Revolving Credit Facility terminates on September 7, 2027. As of September 30, 2022, we had $190.0 million of borrowing availability under the 2022 Revolving Credit Facility. Borrowings under the 2022 Credit Agreement, with the exception of swing line borrowings, bear interest, at our option, either at (i) an adjusted Term Secured Overnight Financing Rate ("SOFR rate") plus a margin of 2.25% per annum, subject to a Term SOFR rate floor of 0.00% or (ii) an alternative base rate plus a margin of 1.25% per annum, subject to an alternative base rate floor of 1.00%. Any borrowings under the swing line will be subject to the base rate. The 2022 Revolving Credit Facility also requires a commitment fee of 0.40% per annum of undrawn commitments to be paid quarterly in arrears. We have elected to pay interest on borrowings under the 2022 Term Loan Facility based on the SOFR rate. The interest rate in effect for the 2022 Term Loan Facility as of September 30, 2022 was 5.098% per annum. The 2022 Credit Agreement contains a financial covenant requiring compliance with a maximum total net leverage ratio and certain other covenants, including, among other things, covenants restricting additional borrowings, investments (including acquisitions) and distributions. We were in compliance with all debt covenants as of September 30, 2022. Substantially all assets of our direct wholly owned subsidiary TU MidCo , Inc., its wholly owned subsidiary, TU BidCo, Inc. and its material wholly owned domestic subsidiaries are pledged as collateral under the 2022 Credit Agreement, subject to certain customary exceptions. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Leases Operating lease costs recorded to cost of services was $3.7 million and $11.4 million for the three and nine months ended September 30, 2022. Operating lease costs recorded to selling, general, and administrative expense were immaterial. The following table presents the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as of September 30, 2022: September 30, 2022 Weighted average remaining lease term 4.2 years Weighted average discount rate 4.7 % The following table presents supplemental cash flow information related to the Company's operating leases: (in thousands) Nine months ended September 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities 10,822 ROU assets obtained in exchange for operating lease liabilities 7,041 The future lease payments on the Company's operating lease liabilities as of September 30, 2022 were as follows: (in thousands) September 30, 2022 2022-remainder of year $ 3,675 2023 11,769 2024 10,275 2025 9,465 2026 5,034 Thereafter 5,172 Total lease payments 45,390 Less: imputed interest (4,886) Total lease liabilities $ 40,504 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We are subject to various legal proceedings, claims, and litigation arising in the ordinary course of business. Although the outcomes of such matters cannot be predicted with certainty, we believe that resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, operating results, cash flows, or financial condition. On February 23, 2022, a purported class action lawsuit captioned Lozada v. TaskUs, Inc. et al., No. 22-cv-1479-JPC, was filed in the United States District Court for the Southern District of New York against the Company, our Chief Executive Officer, our President, and our Chief Financial Officer. The complaint alleges that the registration statement filed in connection with the Company’s IPO and the Company’s second and third quarter 2021 earnings calls contained materially false and misleading information in violation of the federal securities laws. The complaint seeks unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, as well as equitable relief. We believe that the lawsuit is without merit and intend to defend the lawsuit vigorously. On October 20, 2022, the Court entered an order appointing Humberto Lozada as Lead Plaintiff in the lawsuit. We cannot predict at this point the length of time that this action will be ongoing or the liability, if any, which may arise therefrom. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the stock option and restricted stock unit ("RSU") activity for the nine months ended September 30, 2022 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2022 9,685,321 $ 10.53 4,179,475 $ 29.01 Granted 398,778 $ 30.62 1,052,617 $ 26.25 Exercised or released (529,622) $ 4.19 (833,234) $ 27.27 Forfeited, cancelled or expired (1,513,490) $ 6.61 (273,750) $ 32.41 Outstanding at September 30, 2022 8,040,987 $ 12.68 4,125,108 $ 28.43 The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2022 was $11.10. There were 3,373,417 performance stock units ("PSUs") outstanding at January 1, 2022 and September 30, 2022. The following table summarizes the components of stock-based compensation expense recognized for the periods presented: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Cost of services $ 1,149 $ 451 $ 2,689 $ 502 Selling, general, and administrative expense 15,077 18,792 52,075 152,008 Total $ 16,226 $ 19,243 $ 54,764 $ 152,510 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In determining its interim provision for income taxes, the Company used an estimated annual effective tax rate, which is based on expected income before taxes, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates. Certain significant or unusual items are separately recognized in the period in which they occur and can be a source of variability in the effective tax rate from quarter to quarter. The Company recorded provision for income taxes of $3.9 million and $1.7 million in the three months ended September 30, 2022 and 2021, respectively. The effective tax rate was 42.1% and 12.5% for the three months ended September 30, 2022 and 2021, respectively. Nondeductible earn-out consideration of $4.9 million increased the effective tax rate for the three months ended September 30, 2022 by $1.5 million, or 15.9%. The Company recorded provision for (benefit from) income taxes of $12.3 million and $(1.8) million in the nine months ended September 30, 2022 and 2021, respectively. The effective tax rate was 33.2% and 2.3% for the nine months ended September 30, 2022 and 2021, respectively. The difference between the effective tax rates and the 21% federal statutory rate in the nine months ended September 30, 2022 was primarily due to global intangible low-taxed income (“GILTI”) inclusion, tax benefits of income tax holidays in foreign jurisdiction, nondeductible earn-out consideration and nondeductible compensation of officers. The difference between the effective tax rate and the 21% federal statutory rate in the nine months ended September 30, 2021 was primarily due to GILTI inclusion, tax benefits of income tax holidays in foreign jurisdiction, nondeductible transaction costs and nondeductible compensation of officers. The Company is subject to income tax in the United States federal, state and various foreign jurisdictions. As of September 30, 2022 , the tax years 2018 to 2021 are subject to examination by tax authorities. The Company’s practice and intention are to indefinitely reinvest the earnings of its non-U.S. subsidiaries. Determination of the amount of any unrecognized deferred income tax liability on the temporary difference is not practicable because of the complexities of the hypothetical calculation. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company has Class A common stock and Class B convertible common stock outstanding. Because the only difference between the two classes of common stock are related to voting, transfer and conversion rights, the Company has not presented earnings per share under the two-class method, as earnings per share are the same for both Class A common stock and Class B convertible common stock. The computation of basic net income (loss) per share (“EPS”) is based on the weighted-average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common stock equivalents. Common stock equivalents consist of shares issuable upon the exercise of stock options and vesting of RSUs and PSUs. The following table summarizes the computation of basic and diluted EPS for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (in thousands, except share and per share data) 2022 2021 2022 2021 Numerator: Net income (loss) available to common shareholders $ 5,365 $ 11,636 $ 24,680 $ (77,800) Denominator: Weighted-average common shares outstanding – basic 98,299,612 97,290,174 97,854,944 93,994,896 Effect of dilutive securities 3,620,801 12,135,837 5,218,264 — Weighted-average common shares outstanding – diluted 101,920,413 109,426,011 103,073,208 93,994,896 Net income (loss) per common share: Basic $ 0.05 $ 0.12 $ 0.25 $ (0.83) Diluted $ 0.05 $ 0.11 $ 0.24 $ (0.83) Since the Company was in a net loss position for the nine months ended September 30, 2021, diluted EPS is equal to basic EPS for that period as the inclusion of potential common stock equivalents would have been anti-dilutive. The Company excluded 3,486,107 and 12,309 potential common stock equivalents from the computation of diluted EPS for the three months ended September 30, 2022 and 2021, respectively, and 2,696,701 and 23,607 potential common stock equivalents from the computation of diluted EPS for the nine months ended September 30, 2022 and 2021, respectively, because the effect would have been anti-dilutive. There were 4,657,008 potential common stock equivalents outstanding as of September 30, 2022 with market conditions which were not met at that date, that were excluded from the calculation of diluted EPS. In addition, the Company excluded 5,578,525 potential common stock equivalents from the computation of diluted EPS for the nine months ended September 30, 2021 since the Company was in a net loss position; however, these awards would have been dilutive if the Company was in a net income position. |
Related Party
Related Party | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party | Related Party Underwriting of Offering Blackstone Securities Partners L.P., an affiliate of Blackstone, served as underwriter of 1,380,000 of the 15,180,000 shares of Class A common stock sold in the IPO, with underwriting discounts and commissions of $1.265 per share paid by the Company and selling stockholders, with respect to the shares sold by them. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Our Annual Report on Form 10-K for the year ended December 31, 2021 (the “Annual Report”), as filed with the Securities and Exchange Commission (the “SEC”), includes a discussion of the significant accounting policies used in the preparation of our consolidated financial statements. Other than the adoption of the new lease accounting standard, and the business combination and treasury stock accounting policies, there have been no changes to the Company’s significant accounting policies described in the Annual Report that have had a material impact on the Company’s condensed consolidated financial statements and related notes. These unaudited condensed consolidated financial statements and accompanying notes have been prepared in accordance with US GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by US GAAP for complete financial statements and should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2021 included in the Annual Report. In the opinion of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of September 30, 2022 and its results of operations, comprehensive income (loss) and shareholders’ equity for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The condensed consolidated balance sheet as of December 31, 2021, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The acquisition of Parsec d.o.o. and Q Experience d.o.o. (collectively, “heloo”) was completed on April 15, 2022; therefore, the Company’s consolidated financial statements only include heloo’s results since April 15, 2022. |
Use of Estimates | Use of EstimatesThe preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include the determination of useful lives and impairment of fixed assets; allowances for doubtful accounts and other receivables; the valuation of deferred tax assets; the measurement of lease liabilities and right-of-use assets; valuation of foreign currency exchange rate forward contracts; valuation of stock-based compensation; valuation and impairment of intangibles and goodwill and reserves for income tax uncertainties and other contingencies. As of September 30, 2022, the impact of the novel coronavirus (“COVID-19”) pandemic, including as a result of new strains and variants of the virus and uncertainty regarding vaccines and treatments, continues to unfold. As a result, many of our estimates and assumptions required judgement and carry a higher degree of variability and volatility. We continue to closely monitor the outbreak and the impact on our operations and liquidity. As events continue to evolve and additional information becomes available, our estimates may change materially in the future. |
Principles of Consolidation | Principles of ConsolidationThe accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The Company has no involvement with variable interest entities. |
Concentration Risk | Concentration RiskMost of the Company’s clients are located in the United States. Clients outside of the United States are concentrated in Europe.The Company’s principal operations, including the majority of its employees and the fixed assets owned by its wholly owned subsidiaries, are located in the Philippines. |
Business Combinations | Business Combinations The Company accounts for business combinations in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations. The purchase price of the acquisition is allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values at the acquisition date. The excess of the purchase price over those fair values is recorded as goodwill. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash inflows and outflows, discount rates, asset lives and market multiples, among other items. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded in the consolidated statements of operations. |
Leases | Leases At inception of a contract, the Company determines whether an arrangement is, or contains, a lease based on the substance of the arrangement. In determining whether a contract contains a lease, we consider whether (1) we have the right to obtain substantially all of the economic benefits from the use of the asset throughout the term of the contract, (2) we have the right to direct how and for what purpose the asset is used throughout the term of the contract and (3) we have the right to operate the asset throughout the term of the contract without the lessor having the right to change the terms of the contract. If a lease is identified, the Company determines whether it should be classified as an operating or finance lease at commencement. The Company has various leases for office spaces under operating lease agreements which have a range of expiration dates from one Our right of use (“ROU”) lease assets represent our right to use an underlying asset for the lease term and may include any advance lease payments made. Our ROU lease liabilities represent our obligation to make lease payments arising from the contractual terms of the lease. ROU lease assets and lease liabilities are recognized at the commencement of the lease and are calculated using the present value of lease payments over the lease term. Typically, lease agreements do not provide sufficient detail to arrive at an implicit interest rate. Therefore, the Company uses its estimated incremental borrowing rates (“IBR”) based on information available at the commencement date of the lease to calculate the present value of the lease payments. In estimating its IBR, the Company considers the credit rating, the lease term, the currency of the lease payments and market rates of comparable collateralized borrowings for similar terms. |
Share Repurchases | Share RepurchasesThe Company records its repurchases of common stock at cost, including direct and incremental costs, as a separate component of shareholders' equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company currently qualifies as an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Accordingly, the Company is provided the option to adopt new or revised accounting guidance either (i) within the same periods as those otherwise applicable to non-emerging growth companies or (ii) within the same time periods as private companies. The Company has elected to adopt new or revised accounting guidance within the same time period as private companies. Recently adopted accounting pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") ASU 2016-02, Leases (Topic 842), which supersedes ASC 840. The Company adopted this standard in the second quarter of 2022, effective as of January 1, 2022, using the modified retrospective method and the effective date as the date of initial application. The Company recorded right-of-use assets of $45.8 million and lease liabilities of $48.5 million, respectively to the consolidated balance sheet. The Company elected the "package of practical expedients," which permits the Company not to reassess under Topic 842 any prior conclusions about lease identification, lease classification and initial direct costs. The Company did not apply the short-term lease exception and will therefore recognize a right-of-use asset and lease liability for all leases. The adoption of the lease standard did not have a material impact on the Company's consolidated statement of operations nor on its consolidated cash flow statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. ASU 2021-08 requires the company acquiring contract assets and contract liabilities obtained in a business combination to recognize and measure them in accordance with ASC 606, Revenue from Contracts with Customers. At the acquisition date, the company acquiring the business should record related revenue, as if it had originated the contract. Before the update such amounts were recognized by the acquiring company at fair value. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted, including in interim periods, for any financial statements that have not yet been issued. The Company early adopted ASU 2021-08 as of April 1, 2022. See Note 3, "Business Combination" for additional information and disclosures related to the heloo acquisition. Recently issued accounting pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The revised standard relates to measurement of credit losses on financial instruments, and requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The guidance replaces the incurred loss model with an expected loss model referred to as current expected credit loss (“CECL”). The CECL model requires us to measure lifetime expected credit losses for financial instruments held at the reporting date using historical experience, current conditions and reasonable supportable forecasts. The guidance expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating credit losses and requires new disclosures of the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. This ASU will be effective for the Company beginning in fiscal year 2023 with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-13 on the Company’s consolidated financial statements. |
Forward Contracts | The Company transacts business in various foreign currencies and has international sales and expenses denominated in foreign currencies, subjecting the Company to foreign currency exchange rate risk. During 2022 and 2021, the Company entered into foreign currency exchange rate forward contracts, with two commercial banks as the counterparties, with maturities of generally 12 months or less, to reduce the volatility of cash flows primarily related to forecasted costs denominated in Philippine pesos. The Company does not use foreign currency exchange rate contracts for trading purposes. The exchange rate forward contracts entered into by the Company are not designated as hedging instruments. Any gains or losses resulting from changes in the fair value of these contracts are recognized in other expense in the consolidated statements of operations. The forward contract payable resulting from changes in fair value was recorded under accounts payable and accrued liabilities. By entering into derivative contracts, the Company is exposed to counterparty credit risk, or the failure of the counterparty to perform under the terms of the derivative contract. For the periods presented, the non-performance risk of the Company and the counterparties did not have a material impact on the fair value of the derivative instruments. The Company has implemented the fair value accounting standard for those assets and liabilities that are re-measured and reported at fair value at each reporting period. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value based on inputs used, and requires additional disclosures about fair value measurements. This standard applies to fair value measurements already required or permitted by existing standards. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset and include situations where there is little, if any, market activity for the asset. |
Earnings (Loss) Per Share | The computation of basic net income (loss) per share (“EPS”) is based on the weighted-average number of shares that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted EPS is based on the number of basic weighted-average shares outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common stock equivalents. Common stock equivalents consist of shares issuable upon the exercise of stock options and vesting of RSUs and PSUs. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk | For the three and nine months ended September 30, 2022 and 2021, the following clients represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 A 22 % 27 % 23 % 27 % B Less than 10% 11 % Less than 10% 11 % As of September 30, 2022 and December 31, 2021, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client September 30, 2022 December 31, 2021 A 14 % 22 % B 17 % 12 % |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Consideration Transferred | The acquisition date fair value of the consideration transferred was $35.4 million, consisting of the following: (in thousands) Cash consideration (1) $ 26,006 Holdback cash consideration (2) 2,164 Equity consideration (3) 7,196 Total consideration $ 35,366 (1) Represents cash consideration paid to the sellers to complete the acquisition. (2) Represents consideration, which was retained by the Company as security to satisfy sellers' obligations for potential future contractual claims arising under the terms of the purchase agreement; provided that the amount of the holdback shall not serve as any limitation on the indemnification obligations of the sellers under the purchase agreement. The holdback is payable to the sellers, net of any such claims, 18 months after the Closing Date except for a portion of the holdback related to potential tax claims, which is payable three years after the Closing Date, net of any tax claims. (3) Comprised of 200,103 shares of the Company's Class A common stock issued in relation to this acquisition. The fair value was determined on the basis of the closing market price of the Company's Class A common stock on the acquisition date. |
Schedule of Fair Values Assets Acquired and Liabilities | The following table summarizes the preliminary fair values of assets acq uired and liabilities assumed as of the date of acquisition: (in thousands) Cash and cash equivalents $ 2,771 Intangibles 11,198 Goodwill 21,582 Other assets acquired 3,947 Total assets 39,498 Total liabilities assumed 4,132 Net assets acquired $ 35,366 The preliminary purchase price allocation includes $11.2 million of acquired identifiable intangible assets, consisting of the following: (in thousands, except useful lives) Estimated Fair Value Estimated Useful Life in Years Customer relationships $ 10,872 10 Trade name 326 2 Total $ 11,198 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Service | The following table presents the breakdown of the Company’s revenues by service offering: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Digital Customer Experience $ 151,474 $ 125,310 $ 478,625 $ 338,587 Content Security 43,910 45,376 136,093 124,498 AI Services 36,746 30,367 103,551 70,861 Service revenue $ 232,130 $ 201,053 $ 718,269 $ 533,946 |
Schedule of Revenue by Geographic Area | The following table presents the breakdown of the Company’s revenues by geographical location, based on where the services are provided from: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Philippines $ 127,507 $ 103,837 $ 371,909 $ 284,096 United States 49,040 65,866 202,444 175,553 Rest of World 55,583 31,350 143,916 74,297 Service revenue $ 232,130 $ 201,053 $ 718,269 $ 533,946 |
Forward Contracts and Fair Va_2
Forward Contracts and Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Settled and Outstanding Forward Contracts | The following table presents the Company's settled forward contracts and realized and unrealized losses (gains) associated with derivative contracts: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Total notional amount of settled forward contracts $ 51,247 $ 31,800 $ 139,646 $ 77,400 Realized losses (gains) from settlement of forward contracts $ 4,474 $ 734 $ 8,017 $ (622) Unrealized losses on forward contracts $ 6,070 $ 4,101 $ 13,522 $ 5,831 The following table presents the Company's outstanding forward contracts: (in thousands) September 30, 2022 December 31, 2021 Total notional amount of outstanding forward contracts $ 160,567 $ 127,200 |
Schedule of Fair Value of Assets Measured on a Recurring Basis | The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: Fair value measurements using September 30, 2022 December 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Forward contracts payable $ — $ 16,315 $ — $ 16,315 $ — $ 2,793 $ — $ 2,793 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The components of property and equipment, net as of September 30, 2022 and December 31, 2021 were as follows: (in thousands) September 30, December 31, Leasehold improvements $ 49,696 $ 38,024 Technology and computers 88,456 81,679 Furniture and fixtures 5,833 4,814 Construction in process 3,818 10,892 Other property and equipment 9,977 8,405 Property and equipment, gross 157,780 143,814 Accumulated depreciation (82,717) (63,768) Property and equipment, net $ 75,063 $ 80,046 |
Schedule of Property and Equipment by Geographic Areas | The table below presents the Company’s total property and equipment by geographic location as of September 30, 2022 and December 31, 2021: (in thousands) September 30, December 31, Philippines $ 40,264 $ 49,825 United States 9,806 10,273 Rest of World 24,993 19,948 Property and equipment, net $ 75,063 $ 80,046 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the period are as follows: (in thousands) Balance as of December 31, 2021 $ 195,735 Acquisition of heloo 21,582 Foreign currency translation (2,035) Balance as of September 30, 2022 $ 215,282 |
Schedule of Intangible Assets | The components of intangible assets as of September 30, 2022 and December 31, 2021 were as follows: September 30, 2022 December 31, 2021 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 250,647 $ (64,664) $ 185,983 $ 240,800 $ (52,175) $ 188,625 Trade name 42,195 (11,241) 30,954 41,900 (9,077) 32,823 Other intangibles 331 (83) 248 — — — Total $ 293,173 $ (75,988) $ 217,185 $ 282,700 $ (61,252) $ 221,448 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Current and Non-Current Debt | The balances of current and non-current portions of debt consist of the following as of September 30, 2022 and December 31, 2021: September 30, 2022 December 31, 2021 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 2,700 $ 267,300 $ 270,000 $ 11,813 $ 188,212 $ 200,025 Revolver — — — 39,878 — 39,878 Less: Debt financing fees (378) (1,482) (1,860) (556) (972) (1,528) Total $ 2,322 $ 265,818 $ 268,140 $ 51,135 $ 187,240 $ 238,375 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Schedule of Other Lease Information | The following table presents the weighted average remaining lease term and weighted average discount rate for the Company's operating leases as of September 30, 2022: September 30, 2022 Weighted average remaining lease term 4.2 years Weighted average discount rate 4.7 % The following table presents supplemental cash flow information related to the Company's operating leases: (in thousands) Nine months ended September 30, 2022 Cash paid for amounts included in the measurement of operating lease liabilities 10,822 ROU assets obtained in exchange for operating lease liabilities 7,041 |
Schedule of Future Lease Payments | The future lease payments on the Company's operating lease liabilities as of September 30, 2022 were as follows: (in thousands) September 30, 2022 2022-remainder of year $ 3,675 2023 11,769 2024 10,275 2025 9,465 2026 5,034 Thereafter 5,172 Total lease payments 45,390 Less: imputed interest (4,886) Total lease liabilities $ 40,504 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the stock option and restricted stock unit ("RSU") activity for the nine months ended September 30, 2022 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2022 9,685,321 $ 10.53 4,179,475 $ 29.01 Granted 398,778 $ 30.62 1,052,617 $ 26.25 Exercised or released (529,622) $ 4.19 (833,234) $ 27.27 Forfeited, cancelled or expired (1,513,490) $ 6.61 (273,750) $ 32.41 Outstanding at September 30, 2022 8,040,987 $ 12.68 4,125,108 $ 28.43 |
Schedule of RSU Activity | The following table summarizes the stock option and restricted stock unit ("RSU") activity for the nine months ended September 30, 2022 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2022 9,685,321 $ 10.53 4,179,475 $ 29.01 Granted 398,778 $ 30.62 1,052,617 $ 26.25 Exercised or released (529,622) $ 4.19 (833,234) $ 27.27 Forfeited, cancelled or expired (1,513,490) $ 6.61 (273,750) $ 32.41 Outstanding at September 30, 2022 8,040,987 $ 12.68 4,125,108 $ 28.43 |
Schedule of Stock Based Compensation Expense | The following table summarizes the components of stock-based compensation expense recognized for the periods presented: Three months ended September 30, Nine months ended September 30, (in thousands) 2022 2021 2022 2021 Cost of services $ 1,149 $ 451 $ 2,689 $ 502 Selling, general, and administrative expense 15,077 18,792 52,075 152,008 Total $ 16,226 $ 19,243 $ 54,764 $ 152,510 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The following table summarizes the computation of basic and diluted EPS for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (in thousands, except share and per share data) 2022 2021 2022 2021 Numerator: Net income (loss) available to common shareholders $ 5,365 $ 11,636 $ 24,680 $ (77,800) Denominator: Weighted-average common shares outstanding – basic 98,299,612 97,290,174 97,854,944 93,994,896 Effect of dilutive securities 3,620,801 12,135,837 5,218,264 — Weighted-average common shares outstanding – diluted 101,920,413 109,426,011 103,073,208 93,994,896 Net income (loss) per common share: Basic $ 0.05 $ 0.12 $ 0.25 $ (0.83) Diluted $ 0.05 $ 0.11 $ 0.24 $ (0.83) |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Service revenue percentage | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 22% | 27% | 23% | 27% | |
Service revenue percentage | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 11% | 11% | |||
Accounts receivable percentage | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 14% | 22% | |||
Accounts receivable percentage | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 17% | 12% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Leases (Details) | Sep. 30, 2022 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lease terms | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 37,787 | $ 0 | |
Total lease liabilities | $ 40,504 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 45,800 | ||
Total lease liabilities | $ 48,500 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - Parsec d.o.o. and Q Experience d.o.o. $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | ||
Apr. 15, 2022 USD ($) language | Apr. 15, 2022 EUR (€) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | |
Asset Acquisition [Line Items] | ||||
Percentage of outstanding shares acquired | 100% | |||
Number of languages | language | 20 | |||
Consideration transferred | $ 35,366 | |||
Estimated Fair Value | $ 11,198 | |||
Maximum payouts | € | € 20 | |||
Based on a multiple of EBITDA | 1 year | 1 year | ||
Earn-out payments | $ 7,700 | $ 10,900 | $ 10,900 | |
Earnout expense | $ 3,600 | 5,000 | ||
Company recorded costs | $ 600 |
Business Combination - Fair Val
Business Combination - Fair Value of Consideration Transferred (Details) - Parsec d.o.o. and Q Experience d.o.o. $ in Thousands | Apr. 15, 2022 USD ($) shares |
Asset Acquisition [Line Items] | |
Cash consideration | $ 26,006 |
Holdback cash consideration | 2,164 |
Equity consideration | 7,196 |
Total consideration | $ 35,366 |
Number of shares issued (in shares) | shares | 200,103,000 |
Minimum | |
Asset Acquisition [Line Items] | |
Holdback term | 18 months |
Maximum | |
Asset Acquisition [Line Items] | |
Holdback term | 3 years |
Business Combination - Fair V_2
Business Combination - Fair Values of Assets Acquired and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Apr. 15, 2022 | Dec. 31, 2021 |
Asset Acquisition [Line Items] | |||
Goodwill | $ 215,282 | $ 195,735 | |
Parsec d.o.o. and Q Experience d.o.o. | |||
Asset Acquisition [Line Items] | |||
Cash and cash equivalents | $ 2,771 | ||
Intangibles | 11,198 | ||
Goodwill | 21,582 | ||
Other assets acquired | 3,947 | ||
Total assets | 39,498 | ||
Total liabilities assumed | 4,132 | ||
Net assets acquired | $ 35,366 |
Business Combination - Purchase
Business Combination - Purchase Price Allocation (Details) - Parsec d.o.o. and Q Experience d.o.o. $ in Thousands | Apr. 15, 2022 USD ($) |
Asset Acquisition [Line Items] | |
Estimated Fair Value | $ 11,198 |
Customer relationships | |
Asset Acquisition [Line Items] | |
Estimated Fair Value | $ 10,872 |
Estimated Useful Life in Years | 10 years |
Trade name | |
Asset Acquisition [Line Items] | |
Estimated Fair Value | $ 326 |
Estimated Useful Life in Years | 2 years |
Revenue - Summary of Revenue (D
Revenue - Summary of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 232,130 | $ 201,053 | $ 718,269 | $ 533,946 |
Philippines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 127,507 | 103,837 | 371,909 | 284,096 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49,040 | 65,866 | 202,444 | 175,553 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 55,583 | 31,350 | 143,916 | 74,297 |
Digital Customer Experience | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 151,474 | 125,310 | 478,625 | 338,587 |
Content Security | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 43,910 | 45,376 | 136,093 | 124,498 |
AI Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 36,746 | $ 30,367 | $ 103,551 | $ 70,861 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled revenues | $ 81.5 | $ 75.5 |
Forward Contracts and Fair Va_3
Forward Contracts and Fair Value Measurement - Narrative (Details) - counterparty | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative [Line Items] | ||
Number of counterparties | 2 | 2 |
Forward contracts payable | ||
Derivative [Line Items] | ||
Derivative term | 12 months | 12 months |
Forward Contracts and Fair Va_4
Forward Contracts and Fair Value Measurement - Summary of Settled and Outstanding Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Derivative [Line Items] | |||||
Unrealized losses on forward contracts | $ 13,522 | $ 5,831 | |||
Forward contracts payable | |||||
Derivative [Line Items] | |||||
Total notional amount of settled forward contracts | $ 51,247 | $ 31,800 | 139,646 | 77,400 | |
Realized losses (gains) from settlement of forward contracts | 4,474 | 734 | 8,017 | (622) | |
Unrealized losses on forward contracts | 6,070 | $ 4,101 | 13,522 | $ 5,831 | |
Total notional amount of outstanding forward contracts | $ 160,567 | $ 160,567 | $ 127,200 |
Forward Contracts and Fair Va_5
Forward Contracts and Fair Value Measurement - Assets Measured at Fair Value on a Recurring Basis (Details) - Forward contracts payable - Fair Value, Recurring - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative liability | $ 16,315 | $ 2,793 |
Level 1 inputs | ||
Derivative [Line Items] | ||
Derivative liability | 0 | 0 |
Level 2 inputs | ||
Derivative [Line Items] | ||
Derivative liability | 16,315 | 2,793 |
Level 3 inputs | ||
Derivative [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Property and Equipment, net - S
Property and Equipment, net - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 157,780 | $ 143,814 |
Accumulated depreciation | (82,717) | (63,768) |
Property and equipment, net | 75,063 | 80,046 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 49,696 | 38,024 |
Technology and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 88,456 | 81,679 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,833 | 4,814 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,818 | 10,892 |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 9,977 | $ 8,405 |
Property and Equipment, net -_2
Property and Equipment, net - Summary of Property and Equipment by Geographic Location (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 75,063 | $ 80,046 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 40,264 | 49,825 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 9,806 | 10,273 |
Rest of World | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 24,993 | $ 19,948 |
Goodwill and Intangibles - Narr
Goodwill and Intangibles - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 15, 2022 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill acquired | $ 21,600 | $ 21,582 |
Intangible assets | $ 11,200 |
Goodwill and Intangibles - Carr
Goodwill and Intangibles - Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 15, 2022 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 195,735 | |
Acquisition of heloo | $ 21,600 | 21,582 |
Foreign currency translation | (2,035) | |
Goodwill, ending balance | $ 215,282 |
Goodwill and Intangibles - Comp
Goodwill and Intangibles - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | $ 293,173 | $ 282,700 |
Accumulated Amortization | (75,988) | (61,252) |
Intangibles, Net | 217,185 | 221,448 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 250,647 | 240,800 |
Accumulated Amortization | (64,664) | (52,175) |
Intangibles, Net | 185,983 | 188,625 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 42,195 | 41,900 |
Accumulated Amortization | (11,241) | (9,077) |
Intangibles, Net | 30,954 | 32,823 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 331 | 0 |
Accumulated Amortization | (83) | 0 |
Intangibles, Net | $ 248 | $ 0 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Less current debt financing fees | $ (378) | $ (556) |
Less noncurrent debt financing fees | (1,482) | (972) |
Debt issuance costs, net | (1,860) | (1,528) |
Current portion of debt | 2,322 | 51,135 |
Noncurrent portion of debt | 265,818 | 187,240 |
Total | 268,140 | 238,375 |
Secured Debt | 2019 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long term debt, current, gross | 2,700 | 11,813 |
Long term debt, noncurrent, gross | 267,300 | 188,212 |
Long term debt, gross | 270,000 | 200,025 |
Line of Credit | 2019 Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long term debt, current, gross | 0 | 39,878 |
Long term debt, noncurrent, gross | 0 | 0 |
Long term debt, gross | $ 0 | $ 39,878 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 07, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Apr. 30, 2021 | Sep. 25, 2019 | |
Debt Instrument [Line Items] | ||||||
Debt issuance costs, net | $ 1,860,000 | $ 1,860,000 | $ 1,528,000 | |||
2019 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Fully repaid debt amount | $ 267,200,000 | |||||
2019 Credit Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | $ 210,000,000 | |||||
2019 Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 40,000,000 | |||||
Line of credit facility, additional borrowing capacity | $ 50,000,000 | |||||
2022 Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt modification expense | $ 300,000 | $ 300,000 | ||||
2022 Credit Agreement | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 270,000,000 | |||||
Debt issuance costs, net | $ 1,900,000 | |||||
Effective interest rate | 5.098% | 5.098% | ||||
2022 Credit Agreement | Secured Debt | SOFR Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.25% | |||||
2022 Credit Agreement | Secured Debt | SOFR Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 0% | |||||
2022 Credit Agreement | Secured Debt | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
2022 Credit Agreement | Secured Debt | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 1% | |||||
2022 Credit Agreement | Secured Debt | Year One | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of original principal amount | 0.25% | |||||
2022 Credit Agreement | Secured Debt | Year Two | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of original principal amount | 0.625% | |||||
2022 Credit Agreement | Secured Debt | Year Three | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of original principal amount | 1.25% | |||||
2022 Credit Agreement | Secured Debt | Year Four | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of original principal amount | 1.875% | |||||
2022 Credit Agreement | Secured Debt | Year Five | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of original principal amount | 2.50% | |||||
2022 Credit Agreement | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 190,000,000 | $ 190,000,000 | $ 190,000,000 | |||
Debt issuance costs, net | $ 1,100,000 | |||||
Line of credit facility, commitment fee percent | 0.40% | |||||
2022 Credit Agreement | Line of Credit | Letter of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |||||
2022 Credit Agreement | Line of Credit | Bridge Loan | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Cost of services | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 3.7 | $ 11.4 |
Leases - Weighted Average (Deta
Leases - Weighted Average (Details) | Sep. 30, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term | 4 years 2 months 12 days |
Weighted average discount rate | 4.70% |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Operating Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 10,822 |
ROU assets obtained in exchange for operating lease liabilities | $ 7,041 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Leases [Abstract] | |
2022-remainder of year | $ 3,675 |
2023 | 11,769 |
2024 | 10,275 |
2025 | 9,465 |
2026 | 5,034 |
Thereafter | 5,172 |
Total lease payments | 45,390 |
Less: imputed interest | (4,886) |
Total lease liabilities | $ 40,504 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option and Restricted Stock Unit (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Number of options | |
Beginning balance outstanding (in shares) | shares | 9,685,321 |
Granted (in shares) | shares | 398,778 |
Exercised or released (in shares) | shares | (529,622) |
Forfeited, cancelled or expired (in shares) | shares | (1,513,490) |
Ending balance outstanding (in shares) | shares | 8,040,987 |
Weighted-average exercise price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 10.53 |
Granted (in usd per share) | $ / shares | 30.62 |
Exercised or released (in usd per share) | $ / shares | 4.19 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 6.61 |
Ending balance outstanding (in usd per share) | $ / shares | $ 12.68 |
RSUs | |
Number of RSUs | |
Beginning balance (in shares) | shares | 4,179,475 |
Granted (in shares) | shares | 1,052,617 |
Exercised or released (in shares) | shares | (833,234) |
Forfeited, cancelled or expired (in shares) | shares | (273,750) |
Ending balance (in shares) | shares | 4,125,108 |
Weighted-average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 29.01 |
Granted (in usd per share) | $ / shares | 26.25 |
Exercised or released (in usd per share) | $ / shares | 27.27 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 32.41 |
Ending balance (in usd per share) | $ / shares | $ 28.43 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock option weighted average grant date fair value (in usd per share) | $ 11.10 | ||||
Stock-based compensation expense | $ 16,226 | $ 19,243 | $ 54,764 | $ 152,510 | |
Unrecognized compensation expense related to stock options | $ 13,800 | $ 13,800 | |||
Phantom Stock Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 127,500 | ||||
RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding (in shares) | 4,125,108 | 4,125,108 | 4,179,475 | ||
Unrecognized compensation expense | $ 70,900 | $ 70,900 | |||
Weighted average period for recognition | 1 year 8 months 12 days | ||||
Stock Option | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average period for recognition | 1 year 6 months | ||||
PSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares outstanding (in shares) | 3,373,417 | 3,373,417 | 3,373,417 | ||
Unrecognized compensation expense | $ 6,200 | $ 6,200 | |||
Weighted average period for recognition | 2 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 16,226 | $ 19,243 | $ 54,764 | $ 152,510 |
Cost of services | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 1,149 | 451 | 2,689 | 502 |
Selling, general, and administrative expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 15,077 | $ 18,792 | $ 52,075 | $ 152,008 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 3,895 | $ 1,656 | $ 12,271 | $ (1,805) |
Effective income tax rate | 42.10% | 12.50% | 33.20% | 2.30% |
Nondeductible earn-out consideration | $ 4,900 | |||
Effective tax decrease related to nondeductible expense | $ 1,500 | |||
Nondeductible effective income tax rate | 15.90% |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||||||
Net income (loss) available to common shareholders | $ 5,365 | $ 7,729 | $ 11,586 | $ 11,636 | $ (105,943) | $ 16,507 | $ 24,680 | $ (77,800) |
Denominator: | ||||||||
Weighted-average common shares outstanding – basic (in shares) | 98,299,612 | 97,290,174 | 97,854,944 | 93,994,896 | ||||
Effect of dilutive securities (in shares) | 3,620,801 | 12,135,837 | 5,218,264 | 0 | ||||
Weighted-average common shares outstanding – diluted (in shares) | 101,920,413 | 109,426,011 | 103,073,208 | 93,994,896 | ||||
Net income (loss) per common share: | ||||||||
Basic (in usd per share) | $ 0.05 | $ 0.12 | $ 0.25 | $ (0.83) | ||||
Diluted (in usd per share) | $ 0.05 | $ 0.11 | $ 0.24 | $ (0.83) |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Common Stock Equivalents, Anti-Dilutive | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,486,107 | 12,309 | 2,696,701 | 23,607 |
Common Stock Equivalents, Market Conditions Not Met | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,657,008 | |||
Common Stock Equivalents, Antidilutive, Potentially Dilutive Securities | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 5,578,525 |
Related Party - Narrative (Deta
Related Party - Narrative (Details) - IPO And Private Placement | Jun. 15, 2021 $ / shares shares |
Related Party Transaction [Line Items] | |
Sale of stock, number of shares issued (in shares) | 15,180,000 |
Blackstone Securities Partners L.P. | Underwriting of IPO | Affiliated Entity | |
Related Party Transaction [Line Items] | |
Sale of stock, number of shares issued (in shares) | 1,380,000 |
Sale of stock, discount and commission (in usd per share) | $ / shares | $ 1.265 |