Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | May 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.01 per share | |
Trading Symbol | TASK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001829864 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 27,066,113 | |
Class B convertible common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 70,032,694 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 167,011 | $ 133,992 |
Accounts receivable, net of allowance for doubtful accounts of $3,422 and $3,422, respectively | 170,664 | 178,678 |
Income tax receivable | 526 | 2,879 |
Prepaid expenses and other current assets | 30,021 | 25,876 |
Total current assets | 368,222 | 341,425 |
Noncurrent assets: | ||
Property and equipment, net | 75,604 | 75,053 |
Operating lease right-of-use assets | 41,021 | 41,510 |
Deferred tax assets | 6,334 | 6,165 |
Intangibles | 208,053 | 212,993 |
Goodwill | 217,785 | 217,382 |
Other noncurrent assets | 8,425 | 7,487 |
Total noncurrent assets | 557,222 | 560,590 |
Total assets | 925,444 | 902,015 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 33,178 | 37,062 |
Accrued payroll and employee-related liabilities | 52,561 | 48,663 |
Current portion of debt | 4,347 | 3,334 |
Current portion of operating lease liabilities | 11,904 | 11,614 |
Current portion of income tax payable | 9,265 | 5,730 |
Deferred revenue | 3,066 | 3,481 |
Total current liabilities | 114,321 | 109,884 |
Noncurrent liabilities: | ||
Income tax payable | 2,304 | 2,293 |
Long-term debt | 262,632 | 264,225 |
Operating lease liabilities | 32,154 | 32,380 |
Accrued payroll and employee-related liabilities | 3,444 | 2,818 |
Deferred tax liabilities | 34,541 | 34,514 |
Other noncurrent liabilities | 293 | 288 |
Total noncurrent liabilities | 335,368 | 336,518 |
Total liabilities | 449,689 | 446,402 |
Commitments and Contingencies (See Note 10) | ||
Shareholders’ equity: | ||
Additional paid-in capital | 645,322 | 631,908 |
Accumulated deficit | (126,165) | (135,674) |
Accumulated other comprehensive loss | (7,056) | (10,647) |
Treasury stock, at cost with 2,039,732 and 1,649,931 shares, respectively | (37,341) | (30,967) |
Total shareholders’ equity | 475,755 | 455,613 |
Total liabilities and shareholders’ equity | 925,444 | 902,015 |
Class A common stock | ||
Shareholders’ equity: | ||
Common stock | 295 | 293 |
Class B convertible common stock | ||
Shareholders’ equity: | ||
Common stock | $ 700 | $ 700 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Allowance for doubtful accounts | $ 3,422 | $ 3,422 |
Treasury stock (in shares) | 2,039,732 | 1,649,931 |
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) | 29,489,895 | 29,257,651 |
Common stock, shares outstanding (in shares) | 27,450,163 | 27,607,720 |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | |
Service revenue | $ 235,306 | $ 239,680 |
Operating expenses: | ||
Cost of services | 137,762 | 141,282 |
Selling, general, and administrative expense | 64,294 | 64,247 |
Depreciation | 9,661 | 8,901 |
Amortization of intangible assets | 5,124 | 4,711 |
Loss (gain) on disposal of assets | 65 | (15) |
Total operating expenses | 216,906 | 219,126 |
Operating income | 18,400 | 20,554 |
Other expense (income) | (2,177) | 1,053 |
Financing expenses | 5,099 | 1,602 |
Income before income taxes | 15,478 | 17,899 |
Provision for income taxes | 5,969 | 6,313 |
Net income | $ 9,509 | $ 11,586 |
Net income per common share: | ||
Basic (in usd per share) | $ 0.10 | $ 0.12 |
Diluted (in usd per share) | $ 0.09 | $ 0.11 |
Weighted-average number of common shares outstanding: | ||
Basic (in shares) | 97,561,650 | 97,481,412 |
Diluted (in shares) | 100,952,573 | 104,122,026 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 9,509 | $ 11,586 |
Retirement benefit reserves | 8 | 9 |
Foreign currency translation adjustments | 3,583 | (1,765) |
Comprehensive income | $ 13,100 | $ 9,830 |
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, 2021 | 27,431,264 | 70,032,694 | |||||||
Beginning balance at Dec. 31, 2021 | $ 379,134 | $ 275 | $ 700 | $ 556,418 | $ (176,096) | $ (2,163) | $ 0 | ||
Beginning balance (in shares) at Dec. 31, 2021 | 0 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of equity awards (in shares) | 137,794 | ||||||||
Issuance of common stock for settlement of equity awards | 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 | 11,586 | 11,586 | |||||||
Other comprehensive income (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 | ||
Ending balance (in shares) at Mar. 31, 2022 | 0 | ||||||||
Beginning balance of common stock (in shares) at Dec. 31, 2022 | 27,607,720 | 70,032,694 | 29,257,651 | 70,032,694 | |||||
Beginning balance at Dec. 31, 2022 | $ 455,613 | $ 293 | $ 700 | 631,908 | (135,674) | (10,647) | $ (30,967) | ||
Beginning balance (in shares) at Dec. 31, 2022 | 1,649,931 | 1,649,931 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of equity awards (in shares) | 246,537 | ||||||||
Issuance of common stock for settlement of equity awards | $ 209 | $ 2 | 207 | ||||||
Shares withheld related to net share settlement (in shares) | (14,293) | ||||||||
Shares withheld related to net share settlement | (257) | (257) | |||||||
Repurchase of common stock (in shares) | 389,801 | ||||||||
Repurchase of common stock | (6,374) | $ (6,374) | |||||||
Stock-based compensation expense | 13,464 | 13,464 | |||||||
Net income | 9,509 | 9,509 | |||||||
Other comprehensive income (loss) | 3,591 | 3,591 | |||||||
Ending balance of common stock (in shares) at Mar. 31, 2023 | 27,450,163 | 70,032,694 | 29,489,895 | 70,032,694 | |||||
Ending balance at Mar. 31, 2023 | $ 475,755 | $ 295 | $ 700 | $ 645,322 | $ (126,165) | $ (7,056) | $ (37,341) | ||
Ending balance (in shares) at Mar. 31, 2023 | 2,039,732 | 2,039,732 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 9,509 | $ 11,586 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 9,661 | 8,901 |
Amortization of intangibles | 5,124 | 4,711 |
Amortization of debt financing fees | 149 | 139 |
Loss (gain) on disposal of assets | 65 | (15) |
Provision for losses on accounts receivable | 0 | 479 |
Unrealized foreign exchange losses (gains) on forward contracts | (6,336) | 759 |
Deferred taxes | (90) | (19) |
Stock-based compensation expense | 13,464 | 19,605 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8,070 | (9,979) |
Prepaid expenses and other current assets | (16) | (2,478) |
Operating lease right-of-use assets | 3,825 | 3,226 |
Other noncurrent assets | 34 | (223) |
Accounts payable and accrued liabilities | (5,356) | (1,071) |
Accrued payroll and employee-related liabilities | 3,520 | (1,392) |
Operating lease liabilities | (3,310) | (2,804) |
Income tax payable | 5,789 | 4,686 |
Deferred revenue | (417) | 779 |
Other noncurrent liabilities | (2) | 0 |
Net cash provided by operating activities | 43,683 | 36,890 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (5,244) | (17,770) |
Investment in loan receivable | (1,000) | 0 |
Net cash used in investing activities | (6,244) | (17,770) |
Cash flows from financing activities: | ||
Payments on long-term debt | (675) | (2,625) |
Proceeds from employee stock plans | 209 | 0 |
Payments for taxes related to net share settlement | (257) | (1,469) |
Payments for stock repurchases | (6,374) | 0 |
Net cash used in financing activities | (7,097) | (4,094) |
Increase in cash and cash equivalents | 30,342 | 15,026 |
Effect of exchange rate changes on cash | 2,677 | (1,536) |
Cash and cash equivalents at beginning of period | 133,992 | 63,584 |
Cash and cash equivalents at end of period | $ 167,011 | $ 77,074 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization TaskUs, Inc. (formerly known as TU TopCo, 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. (formerly known as TaskUs, 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 the world’s most innovative 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, Trust and Safety and Artificial Intelligence (“AI”) Services. 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, India 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. • Trust and Safety : Principally consists of review and disposition of user and advertiser generated visual, text and audio content for purposes which include removal or labeling of policy violating, offensive or misleading content. Also included in this area are our offerings for risk management, compliance, identity management and fraud. • AI Services : Principally consists of high-quality data labeling services, annotation, context relevance and transcription services performed for the purpose of training and tuning machine learning algorithms, enabling them to develop cutting-edge AI systems. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 (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. 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, 2022 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 March 31, 2023 and its results of operations, comprehensive income and shareholders’ equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Company has made certain reclassifications to prior period consolidated financial statements to conform to current period presentation. India, which was previously included in Rest of World, is now reported separately within revenue disaggregation by geographical location. Other receivables, Prepaid expenses and Other current assets have been combined into Prepaid expenses and other current assets. (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 forward contracts; valuation of stock-based compensation; valuation of acquired intangible assets and goodwill, as well as related impairment assessments; and reserves for income tax uncertainties and other contingencies. (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 variable interest entities in its corporate structure. (d) Concentration Risk Most of the Company’s customers are located in the United States. Customers outside of the United States are concentrated in Europe. For the three months ended March 31, 2023 and 2022, the following customers represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended March 31, 2023 2022 A 20 % 24 % B Less than 10 % 10 % As of March 31, 2023 and December 31, 2022, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client March 31, 2023 December 31, 2022 A 16 % 17 % B 12 % 13 % 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) 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 June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). 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. The company adopted this standard as of January 1, 2023. The adoption of ASU 2016-13 did not have a material impact on the Company’s consolidated financial statements. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business CombinationOn April 15, 2022 (the “Closing Date”), the Company completed the acquisition of 100% of the equity interests of Parsec d.o.o. and Q Experience d.o.o. (collectively, "heloo") for $35.4 million. The former shareholders of heloo are also eligible to receive contingent earn-out payments not to exceed €20 million, based on performance compared to prescribed EBITDA targets outlined in the purchase agreement during each of the one year periods ending April 30, 2023 and 2024, respectively. The total fair value of contingent earn-out payments was determined to be $18.5 million and $14.9 million as March 31, 2023 and December 31, 2022, respectively, based on a Monte Carlo simulation model, utilizing a discounted payout analysis based on probabilities and timing of achieving the prescribed targets. Since these payments are contingent on future service conditions, they are recognized as compensation expense ratably over the required service period. For the three months ended March 31, 2023, the Company recognized $6.6 million in compensation expense related to the contingent earn-out payments included in selling, general, and administrative expenses. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers 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 March 31, (in thousands) 2023 2022 Digital Customer Experience $ 157,136 $ 159,731 Trust and Safety 40,598 45,852 AI Services 37,572 34,097 Service revenue $ 235,306 $ 239,680 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 March 31, (in thousands) 2023 2022 Philippines $ 126,859 $ 120,080 United States 46,662 79,131 India 28,243 23,358 Rest of World 33,542 17,111 Service revenue $ 235,306 $ 239,680 Contract Balances Accounts receivable, net of allowance for doubtful accounts includes $84.2 million and $80.8 million of unbilled revenues as of March 31, 2023 and December 31, 2022, respectively. |
Forward Contracts and Fair Valu
Forward Contracts and Fair Value Measurement | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Forward Contracts and Fair Value Measurement | Forward Contracts and Fair Value Measurement 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 2023 and 2022, 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. In addition, the Company utilizes foreign currency exchange rate contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. 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 (income) in the consolidated statements of operations. The forward contract receivable (payable) resulting from changes in fair value was recorded under prepaid expenses and other current assets (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 March 31, (in thousands) 2023 2022 Total notional amount of settled forward contracts $ 59,425 $ 40,382 Realized losses from settlement of forward contracts $ 1,618 $ 1,420 Unrealized losses (gains) on forward contracts $ (6,336) $ 759 The following table presents the Company's outstanding forward contracts: (in thousands) March 31, 2023 December 31, 2022 Total notional amount of outstanding forward contracts $ 110,925 $ 175,050 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. For financial statement presentation purposes, we offset assets and liabilities for forward contracts with the same counterparty that we intend to net settle upon maturity; however, we do not offset assets and liabilities under master netting arrangements that we do not intend to net settle. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: March 31, 2023 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 Level 2 Level 3 Assets Money market funds $ 3,739 $ — $ — $ 3,739 $ — $ 3,739 $ — $ 3,739 Forward contracts receivable $ — $ 8,132 $ — $ 8,132 $ — $ 8,132 $ — $ 8,132 December 31, 2022 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Money market funds $ 6,069 $ — $ — $ 6,069 $ — $ 6,069 $ — $ 6,069 Forward contracts receivable $ — $ 4,845 $ — $ 4,845 $ (518) $ 4,327 $ (1,778) $ 2,549 Liabilities Forward contracts payable $ — $ 3,049 $ — $ 3,049 $ (518) $ 2,531 $ (1,778) $ 753 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 | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The components of property and equipment, net as of March 31, 2023 and December 31, 2022 were as follows: (in thousands) March 31, December 31, Leasehold improvements $ 53,288 $ 53,950 Technology and computers 96,191 95,189 Furniture and fixtures 4,348 6,173 Construction in process 10,674 4,640 Other property and equipment 11,453 10,828 Property and equipment, gross 175,954 170,780 Accumulated depreciation (100,350) (95,727) Property and equipment, net $ 75,604 $ 75,053 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 March 31, 2023 and December 31, 2022: (in thousands) March 31, December 31, Philippines $ 42,953 $ 42,153 United States 8,968 9,136 India 14,881 15,482 Rest of World 8,802 8,282 Property and equipment, net $ 75,604 $ 75,053 |
Goodwill and Intangibles
Goodwill and Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles The changes in the carrying amount of goodwill during the period were as follows: (in thousands) Balance as of December 31, 2022 $ 217,382 Foreign currency translation 403 Balance as of March 31, 2023 $ 217,785 The components of intangible assets as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 251,738 $ (73,288) $ 178,450 $ 251,539 $ (68,987) $ 182,552 Trade name 42,228 (12,727) 29,501 42,222 (11,986) 30,236 Other intangibles 407 (305) 102 410 (205) 205 Total $ 294,373 $ (86,320) $ 208,053 $ 294,171 $ (81,178) $ 212,993 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 4,725 $ 263,925 $ 268,650 $ 3,712 $ 265,613 $ 269,325 Revolver — — — — — — Less: Debt financing fees (378) (1,293) (1,671) (378) (1,388) (1,766) Total $ 4,347 $ 262,632 $ 266,979 $ 3,334 $ 264,225 $ 267,559 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 its previous 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 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 March 31, 2023, 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 March 31, 2023 was 6.993% 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 March 31, 2023. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases Operating lease costs recorded to cost of services was $4.4 million and $4.0 million for the three months ended March 31, 2023 and 2022, respectively. 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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted average remaining lease term 4.0 years 4.1 years Weighted average discount rate 5.6 % 5.3 % The following table presents supplemental cash flow information related to the Company's operating leases: Three months ended March 31, (in thousands) 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,259 $ 3,250 ROU assets obtained in exchange for operating lease liabilities 2,628 9 The future lease payments on the Company's operating lease liabilities as of March 31, 2023 were as follows: (in thousands) 2023-remainder of year $ 10,558 2024 13,001 2025 12,075 2026 7,368 2027 3,578 Thereafter 3,152 Total lease payments 49,732 Less: imputed interest (5,674) Total lease liabilities $ 44,058 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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. On October 20, 2022, the Court entered an order appointing Humberto Lozada as lead plaintiff in the lawsuit. On December 16, 2022, lead plaintiff filed an amended complaint, alleging additional misstatements in certain of the Company’s 2021 earnings releases filed on Form 8-K and at an investor conference, and asserting additional securities claims, including against members of TaskUs’s board of directors as well as BDP FC Aggregator L.P. 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 February 17, 2023, TaskUs filed a motion to dismiss, which is currently pending. 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. The Company has received three lawsuits that present in large degree the same legal or factual issues, with allegations that are similar in nature. We believe that these three lawsuits are without merit and intend to defend each vigorously. We cannot predict at this point the length of time that these actions will be ongoing or the liability, if any, which may arise therefrom. As these actions are still in preliminary phases, any potential loss or impact on financial position or results of operations cannot yet be estimated: On April 1, 2022, a purported class action lawsuit captioned Gregory Forsberg, Christopher Gunter, Samuel Kissinger, and Scott Sipprell vs. TaskUs, Inc. and Shopify, Inc., Shopify Holdings (USA), Inc., Shopify (USA) Inc., No. 1:22-cv-00436-UNA, was filed in the United States District Court for the District of Delaware. The complaint alleges the named defendants failed to exercise reasonable care in securing and safeguarding consumer information in connection with a 2020 data breach impacting Ledger SAS cryptocurrency hardware wallets, resulting in the unauthorized public release of approximately 272,000 pieces of detailed personally identifiable information, including Plaintiffs’ and class members’ full names, email addresses, postal addresses, and telephone numbers. The four named plaintiffs allege aggregate losses of approximately $140,000, and allege that the damages exceed $5 million for purposes of class action jurisdiction. On April 8, 2022, TaskUs filed a motion to dismiss, which is currently pending. This case is currently stayed. On September 16, 2022, a purported class action lawsuit captioned My Choice Software, LLC vs. Shopify, Inc. Shopify (USA) Inc., TaskUs, Inc., Does 1-100, No. CGC-22-601842, was filed in the Superior Court of the State of California, County of San Francisco. The complaint alleges the named defendants secretly installed tracking cookies on consumers' devices to track individual consumer activity and gather private information and that the defendant Shopify allowed two of its support staff to steal customer data from more than 100 merchants. The complaint seeks unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, as well as equitable relief. This complaint has not been served on TaskUs, Inc. On September 16, 2022, a lawsuit captioned My Choice Software, LLC vs. TaskUs, Inc., Tassilo Heinrich, Shopify, Inc., Shopify Holdings (USA) Inc., Shopify (USA) Inc., Does 1-50, No. 22-cv-1710 was filed in the US District Court, Central District of California. The complaint alleges the defendants profited off of the plaintiff's information. The complaint seeks unspecified damages and an award of costs and expenses, including reasonable attorneys’ fees, as well as equitable and injunctive relief. On February 13, 2023, TaskUs, Inc. filed a motion to dismiss the amended complaint, which is currently pending. Indemnification In addition, in the ordinary course of business, we enter into agreements of varying scope and terms pursuant to which we agree to indemnify clients, vendors and other business partners with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, cybersecurity breach, services to be provided by us or from intellectual property infringement claims made by third parties. Historically, we have not experienced significant losses on these types of indemnification obligations. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2023 7,723,711 $ 12.98 3,895,224 $ 28.00 Granted 770,937 $ 18.11 1,379,119 $ 18.14 Exercised or released (46,132) $ 4.54 (200,405) $ 26.00 Forfeited, cancelled or expired (334,159) $ 6.38 (128,503) $ 27.42 Outstanding at March 31, 2023 8,114,357 $ 13.78 4,945,435 $ 25.34 The weighted-average grant-date fair value of options granted during the three months ended March 31, 2023 was $8.85. There were 3,373,417 performance stock units ("PSUs") outstanding at January 1, 2023 and March 31, 2023. The following table summarizes the components of stock-based compensation expense recognized for the periods presented: Three months ended March 31, (in thousands) 2023 2022 Cost of services $ 877 $ 703 Selling, general, and administrative expense 12,587 18,902 Total $ 13,464 $ 19,605 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
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 $6.0 million and $6.3 million in the three months ended March 31, 2023 and 2022, respectively. The effective tax rate was 38.6% and 35.3% for the three months ended March 31, 2023 and 2022, respectively. The difference between the effective tax rate and the 21% federal statutory rate in the three months ended March 31, 2023 was primarily due to nondeductible earn-out consideration, as well as Global Intangible Low-Taxed Income (“GILTI”) inclusion, Base Erosion Anti-avoidance Tax ("BEAT") and nondeductible compensation of officers. The difference between the effective tax rate and the 21% federal statutory rate in the three months ended March 31, 2022 was primarily due to GILTI inclusion, BEAT, tax benefits of income tax holidays in foreign jurisdiction, and nondeductible compensation of officers. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company has Class A common stock and Class B 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 common stock. The following table summarizes the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022: Three months ended March 31, (in thousands, except share and per share data) 2023 2022 Numerator: Net income available to common shareholders $ 9,509 $ 11,586 Denominator: Weighted-average common shares outstanding – basic 97,561,650 97,481,412 Effect of dilutive securities 3,390,923 6,640,614 Weighted-average common shares outstanding – diluted 100,952,573 104,122,026 Net income per common share: Basic $ 0.10 $ 0.12 Diluted $ 0.09 $ 0.11 The Company excluded 3,778,307 and 1,152,816 potential common stock equivalents from the computation of diluted EPS for the three months ended March 31, 2023 and 2022, respectively, because the effect would have been anti-dilutive. There were 4,819,894 and 5,292,857 potential common stock equivalents outstanding as of March 31, 2023 and 2022, respectively, with market conditions which were not met at that date, that were excluded from the calculation of diluted EPS. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 8, 2023, the Company announced that the Board of Directors of the Company authorized a $100.0 million increase to the Company’s share repurchase program, increasing the total authorization to $200.0 million. After giving effect to repurchases completed under the original share repurchase program and the approved $100.0 million increase, approximately $155.1 million remained available for share repurchases as of May 5, 2023. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
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, 2022 (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. 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, 2022 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 March 31, 2023 and its results of operations, comprehensive income and shareholders’ equity for the three months ended March 31, 2023 and 2022, and cash flows for the three months ended March 31, 2023 and 2022. The condensed consolidated balance sheet as of December 31, 2022, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. The Company has made certain reclassifications to prior period consolidated financial statements to conform to current period presentation. India, which was previously included in Rest of World, is now reported separately within revenue disaggregation by geographical location. Other receivables, Prepaid expenses and Other current assets have been combined into Prepaid expenses and other current assets. |
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 forward contracts; valuation of stock-based compensation; valuation of acquired intangible assets and goodwill, as well as related impairment assessments; and reserves for income tax uncertainties and other contingencies. |
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 variable interest entities in its corporate structure. |
Concentration Risk | Concentration RiskMost of the Company’s customers are located in the United States. Customers 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. |
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 June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). 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. The company adopted this standard as of January 1, 2023. The adoption of ASU 2016-13 did not have a material impact 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 2023 and 2022, 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. In addition, the Company utilizes foreign currency exchange rate contracts to mitigate foreign currency exchange rate risk associated with foreign currency-denominated assets and liabilities, primarily intercompany balances. 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 (income) in the consolidated statements of operations. The forward contract receivable (payable) resulting from changes in fair value was recorded under prepaid expenses and other current assets (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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk | For the three months ended March 31, 2023 and 2022, the following customers represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended March 31, 2023 2022 A 20 % 24 % B Less than 10 % 10 % As of March 31, 2023 and December 31, 2022, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client March 31, 2023 December 31, 2022 A 16 % 17 % B 12 % 13 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, (in thousands) 2023 2022 Digital Customer Experience $ 157,136 $ 159,731 Trust and Safety 40,598 45,852 AI Services 37,572 34,097 Service revenue $ 235,306 $ 239,680 |
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 March 31, (in thousands) 2023 2022 Philippines $ 126,859 $ 120,080 United States 46,662 79,131 India 28,243 23,358 Rest of World 33,542 17,111 Service revenue $ 235,306 $ 239,680 |
Forward Contracts and Fair Va_2
Forward Contracts and Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, (in thousands) 2023 2022 Total notional amount of settled forward contracts $ 59,425 $ 40,382 Realized losses from settlement of forward contracts $ 1,618 $ 1,420 Unrealized losses (gains) on forward contracts $ (6,336) $ 759 The following table presents the Company's outstanding forward contracts: (in thousands) March 31, 2023 December 31, 2022 Total notional amount of outstanding forward contracts $ 110,925 $ 175,050 |
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 March 31, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: March 31, 2023 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 Level 2 Level 3 Assets Money market funds $ 3,739 $ — $ — $ 3,739 $ — $ 3,739 $ — $ 3,739 Forward contracts receivable $ — $ 8,132 $ — $ 8,132 $ — $ 8,132 $ — $ 8,132 December 31, 2022 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Money market funds $ 6,069 $ — $ — $ 6,069 $ — $ 6,069 $ — $ 6,069 Forward contracts receivable $ — $ 4,845 $ — $ 4,845 $ (518) $ 4,327 $ (1,778) $ 2,549 Liabilities Forward contracts payable $ — $ 3,049 $ — $ 3,049 $ (518) $ 2,531 $ (1,778) $ 753 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The components of property and equipment, net as of March 31, 2023 and December 31, 2022 were as follows: (in thousands) March 31, December 31, Leasehold improvements $ 53,288 $ 53,950 Technology and computers 96,191 95,189 Furniture and fixtures 4,348 6,173 Construction in process 10,674 4,640 Other property and equipment 11,453 10,828 Property and equipment, gross 175,954 170,780 Accumulated depreciation (100,350) (95,727) Property and equipment, net $ 75,604 $ 75,053 |
Schedule of Property and Equipment by Geographic Areas | The table below presents the Company’s total property and equipment by geographic location as of March 31, 2023 and December 31, 2022: (in thousands) March 31, December 31, Philippines $ 42,953 $ 42,153 United States 8,968 9,136 India 14,881 15,482 Rest of World 8,802 8,282 Property and equipment, net $ 75,604 $ 75,053 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill during the period were as follows: (in thousands) Balance as of December 31, 2022 $ 217,382 Foreign currency translation 403 Balance as of March 31, 2023 $ 217,785 |
Schedule of Intangible Assets | The components of intangible assets as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 251,738 $ (73,288) $ 178,450 $ 251,539 $ (68,987) $ 182,552 Trade name 42,228 (12,727) 29,501 42,222 (11,986) 30,236 Other intangibles 407 (305) 102 410 (205) 205 Total $ 294,373 $ (86,320) $ 208,053 $ 294,171 $ (81,178) $ 212,993 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Non-Current Debt | The balances of current and non-current portions of debt consist of the following as of March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 4,725 $ 263,925 $ 268,650 $ 3,712 $ 265,613 $ 269,325 Revolver — — — — — — Less: Debt financing fees (378) (1,293) (1,671) (378) (1,388) (1,766) Total $ 4,347 $ 262,632 $ 266,979 $ 3,334 $ 264,225 $ 267,559 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022: March 31, 2023 December 31, 2022 Weighted average remaining lease term 4.0 years 4.1 years Weighted average discount rate 5.6 % 5.3 % The following table presents supplemental cash flow information related to the Company's operating leases: Three months ended March 31, (in thousands) 2023 2022 Cash paid for amounts included in the measurement of operating lease liabilities $ 4,259 $ 3,250 ROU assets obtained in exchange for operating lease liabilities 2,628 9 |
Schedule of Future Lease Payments | The future lease payments on the Company's operating lease liabilities as of March 31, 2023 were as follows: (in thousands) 2023-remainder of year $ 10,558 2024 13,001 2025 12,075 2026 7,368 2027 3,578 Thereafter 3,152 Total lease payments 49,732 Less: imputed interest (5,674) Total lease liabilities $ 44,058 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 three months ended March 31, 2023 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2023 7,723,711 $ 12.98 3,895,224 $ 28.00 Granted 770,937 $ 18.11 1,379,119 $ 18.14 Exercised or released (46,132) $ 4.54 (200,405) $ 26.00 Forfeited, cancelled or expired (334,159) $ 6.38 (128,503) $ 27.42 Outstanding at March 31, 2023 8,114,357 $ 13.78 4,945,435 $ 25.34 |
Schedule of RSU Activity | The following table summarizes the stock option and restricted stock unit ("RSU") activity for the three months ended March 31, 2023 : Options RSUs Number of Weighted - Number of Weighted - Outstanding at January 1, 2023 7,723,711 $ 12.98 3,895,224 $ 28.00 Granted 770,937 $ 18.11 1,379,119 $ 18.14 Exercised or released (46,132) $ 4.54 (200,405) $ 26.00 Forfeited, cancelled or expired (334,159) $ 6.38 (128,503) $ 27.42 Outstanding at March 31, 2023 8,114,357 $ 13.78 4,945,435 $ 25.34 |
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 March 31, (in thousands) 2023 2022 Cost of services $ 877 $ 703 Selling, general, and administrative expense 12,587 18,902 Total $ 13,464 $ 19,605 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | The following table summarizes the computation of basic and diluted earnings per share for the three months ended March 31, 2023 and 2022: Three months ended March 31, (in thousands, except share and per share data) 2023 2022 Numerator: Net income available to common shareholders $ 9,509 $ 11,586 Denominator: Weighted-average common shares outstanding – basic 97,561,650 97,481,412 Effect of dilutive securities 3,390,923 6,640,614 Weighted-average common shares outstanding – diluted 100,952,573 104,122,026 Net income per common share: Basic $ 0.10 $ 0.12 Diluted $ 0.09 $ 0.11 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Service revenue percentage | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk | 20% | 24% | |
Service revenue percentage | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10% | ||
Accounts receivable percentage | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk | 16% | 17% | |
Accounts receivable percentage | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk | 12% | 13% |
Business Combination (Details)
Business Combination (Details) - Parsec d.o.o. and Q Experience d.o.o. € in Millions, $ in Millions | 3 Months Ended | |||
Apr. 15, 2022 USD ($) | Apr. 15, 2022 EUR (€) | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | ||||
Percentage of outstanding shares acquired | 100% | 100% | ||
Business combination, consideration transferred | $ 35.4 | |||
Maximum payouts | € | € 20 | |||
Based on a multiple of EBITDA | 1 year | 1 year | ||
Earn-out payments | $ 18.5 | $ 14.9 | ||
Earnout expense | $ 6.6 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 235,306 | $ 239,680 |
Philippines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 126,859 | 120,080 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 46,662 | 79,131 |
India | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 28,243 | 23,358 |
Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 33,542 | 17,111 |
Digital Customer Experience | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 157,136 | 159,731 |
Trust and Safety | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 40,598 | 45,852 |
AI Services | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 37,572 | $ 34,097 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled revenues | $ 84.2 | $ 80.8 |
Forward Contracts and Fair Va_3
Forward Contracts and Fair Value Measurement - Narrative (Details) - counterparty | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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 - Schedule of Settled and Outstanding Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Derivative [Line Items] | |||
Unrealized losses (gains) on forward contracts | $ (6,336) | $ 759 | |
Forward contracts payable | |||
Derivative [Line Items] | |||
Total notional amount of settled forward contracts | 59,425 | 40,382 | |
Realized losses from settlement of forward contracts | 1,618 | 1,420 | |
Unrealized losses (gains) on forward contracts | (6,336) | $ 759 | |
Total notional amount of outstanding forward contracts | $ 110,925 | $ 175,050 |
Forward Contracts and Fair Va_5
Forward Contracts and Fair Value Measurement - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Money Market Funds | ||
Assets | ||
Money market funds | $ 3,739 | $ 6,069 |
Level 1 inputs | Money Market Funds | ||
Assets | ||
Money market funds | 3,739 | 6,069 |
Level 2 inputs | Money Market Funds | ||
Assets | ||
Money market funds | 0 | 0 |
Level 3 inputs | Money Market Funds | ||
Assets | ||
Money market funds | 0 | 0 |
Forward contracts payable | ||
Assets | ||
Forward contracts receivable | 8,132 | 4,845 |
Effect of Counter-party Netting | 0 | (518) |
Net Amounts on Balance Sheet | 8,132 | 4,327 |
Effect of Master Netting Arrangements | 0 | (1,778) |
Net Amounts | 8,132 | 2,549 |
Liabilities | ||
Forward contracts payable | 3,049 | |
Effect of Counter-party Netting | (518) | |
Net Amounts on Balance Sheet | 2,531 | |
Effect of Master Netting Arrangements | (1,778) | |
Net Amounts | 753 | |
Forward contracts payable | Level 1 inputs | ||
Assets | ||
Forward contracts receivable | 0 | 0 |
Liabilities | ||
Forward contracts payable | 0 | |
Forward contracts payable | Level 2 inputs | ||
Assets | ||
Forward contracts receivable | 8,132 | 4,845 |
Liabilities | ||
Forward contracts payable | 3,049 | |
Forward contracts payable | Level 3 inputs | ||
Assets | ||
Forward contracts receivable | $ 0 | 0 |
Liabilities | ||
Forward contracts payable | $ 0 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 175,954 | $ 170,780 |
Accumulated depreciation | (100,350) | (95,727) |
Property and equipment, net | 75,604 | 75,053 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 53,288 | 53,950 |
Technology and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 96,191 | 95,189 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,348 | 6,173 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 10,674 | 4,640 |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 11,453 | $ 10,828 |
Property and Equipment, net -_2
Property and Equipment, net - Schedule of Property and Equipment by Geographic Location (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 75,604 | $ 75,053 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 42,953 | 42,153 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 8,968 | 9,136 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 14,881 | 15,482 |
Rest of World | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 8,802 | $ 8,282 |
Goodwill and Intangibles - Carr
Goodwill and Intangibles - Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 217,382 |
Foreign currency translation | 403 |
Goodwill, ending balance | $ 217,785 |
Goodwill and Intangibles - Comp
Goodwill and Intangibles - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | $ 294,373 | $ 294,171 |
Accumulated Amortization | (86,320) | (81,178) |
Intangibles, Net | 208,053 | 212,993 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 251,738 | 251,539 |
Accumulated Amortization | (73,288) | (68,987) |
Intangibles, Net | 178,450 | 182,552 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 42,228 | 42,222 |
Accumulated Amortization | (12,727) | (11,986) |
Intangibles, Net | 29,501 | 30,236 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 407 | 410 |
Accumulated Amortization | (305) | (205) |
Intangibles, Net | $ 102 | $ 205 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Less current debt financing fees | $ (378) | $ (378) |
Less noncurrent debt financing fees | (1,293) | (1,388) |
Debt issuance costs, net | (1,671) | (1,766) |
Current portion of debt | 4,347 | 3,334 |
Noncurrent portion of debt | 262,632 | 264,225 |
Total | 266,979 | 267,559 |
Secured Debt | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long term debt, current, gross | 4,725 | 3,712 |
Long term debt, noncurrent, gross | 263,925 | 265,613 |
Long term debt, gross | 268,650 | 269,325 |
Line of Credit | 2022 Credit Agreement | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Long term debt, current, gross | 0 | 0 |
Long term debt, noncurrent, gross | 0 | 0 |
Long term debt, gross | $ 0 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - 2022 Credit Agreement - USD ($) | Sep. 07, 2022 | Mar. 31, 2023 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 270,000,000 | |
Effective interest rate | 6.993% | |
Secured Debt | SOFR Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.25% | |
Secured Debt | SOFR Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 0% | |
Secured Debt | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
Secured Debt | Base Rate | Minimum | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1% | |
Secured Debt | Year One | ||
Debt Instrument [Line Items] | ||
Percentage of original principal amount | 0.25% | |
Secured Debt | Year Two | ||
Debt Instrument [Line Items] | ||
Percentage of original principal amount | 0.625% | |
Secured Debt | Year Three | ||
Debt Instrument [Line Items] | ||
Percentage of original principal amount | 1.25% | |
Secured Debt | Year Four | ||
Debt Instrument [Line Items] | ||
Percentage of original principal amount | 1.875% | |
Secured Debt | Year Five | ||
Debt Instrument [Line Items] | ||
Percentage of original principal amount | 2.50% | |
Line of Credit | Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 190,000,000 | |
Line of credit facility, remaining borrowing capacity | $ 190,000,000 | |
Line of credit facility, commitment fee percent | 0.40% | |
Line of Credit | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 15,000,000 | |
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 | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cost of services | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 4.4 | $ 4 |
Leases - Weighted Average (Deta
Leases - Weighted Average (Details) | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term | 4 years | 4 years 1 month 6 days |
Weighted average discount rate | 5.60% | 5.30% |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,259 | $ 3,250 |
ROU assets obtained in exchange for operating lease liabilities | $ 2,628 | $ 9 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023-remainder of year | $ 10,558 |
2024 | 13,001 |
2025 | 12,075 |
2026 | 7,368 |
2027 | 3,578 |
Thereafter | 3,152 |
Total lease payments | 49,732 |
Less: imputed interest | (5,674) |
Total lease liabilities | $ 44,058 |
Commitments and Contingencies (
Commitments and Contingencies (Details) information in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 01, 2022 USD ($) information plaintiff | Mar. 31, 2023 claim | Sep. 16, 2022 merchant | |
My Choice Software, LLC vs. Shopify, Inc. Shopify (USA) Including TaskUs, Inc. | |||
Business Acquisition [Line Items] | |||
Number of merchants | merchant | 100 | ||
Pending Litigation | |||
Business Acquisition [Line Items] | |||
Number of lawsuits filed | claim | 3 | ||
Pending Litigation | Gregory Forsberg, Christopher Gunter, Samuel Kissinger, And Scott Sipprell vs. TaskUs, Inc. And Shopify, Inc. | |||
Business Acquisition [Line Items] | |||
Number of personally identifiable information pieces released | information | 272 | ||
Number of plaintiffs | plaintiff | 4 | ||
Estimate of loss | $ 140 | ||
Damages sought | $ 5,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option and Restricted Stock Unit (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of options | |
Beginning balance outstanding (in shares) | shares | 7,723,711 |
Granted (in shares) | shares | 770,937 |
Exercised or released (in shares) | shares | (46,132) |
Forfeited, cancelled or expired (in shares) | shares | (334,159) |
Ending balance outstanding (in shares) | shares | 8,114,357 |
Weighted-average exercise price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 12.98 |
Granted (in usd per share) | $ / shares | 18.11 |
Exercised or released (in usd per share) | $ / shares | 4.54 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 6.38 |
Ending balance outstanding (in usd per share) | $ / shares | $ 13.78 |
RSUs | |
Number of RSUs | |
Beginning balance (in shares) | shares | 3,895,224 |
Granted (in shares) | shares | 1,379,119 |
Exercised or released (in shares) | shares | (200,405) |
Forfeited, cancelled or expired (in shares) | shares | (128,503) |
Ending balance (in shares) | shares | 4,945,435 |
Weighted-average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 28 |
Granted (in usd per share) | $ / shares | 18.14 |
Exercised or released (in usd per share) | $ / shares | 26 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 27.42 |
Ending balance (in usd per share) | $ / shares | $ 25.34 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock option weighted average grant date fair value (in usd per share) | $ 8.85 | |
Unrecognized compensation expense related to stock options | $ 15.7 | |
PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 3,373,417 | 3,373,417 |
Unrecognized compensation expense | $ 4.5 | |
Weighted average period for recognition | 1 year 6 months | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (in shares) | 4,945,435 | 3,895,224 |
Unrecognized compensation expense | $ 68.8 | |
Weighted average period for recognition | 1 year 6 months | |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average period for recognition | 1 year 2 months 12 days |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 13,464 | $ 19,605 |
Cost of services | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | 877 | 703 |
Selling, general, and administrative expense | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation expense | $ 12,587 | $ 18,902 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 5,969 | $ 6,313 |
Effective income tax rate | 38.60% | 35.30% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income available to common shareholders | $ 9,509 | $ 11,586 |
Denominator: | ||
Weighted-average common shares outstanding – basic (in shares) | 97,561,650 | 97,481,412 |
Effect of dilutive securities (in shares) | 3,390,923 | 6,640,614 |
Weighted-average common shares outstanding – diluted (in shares) | 100,952,573 | 104,122,026 |
Net income per common share: | ||
Basic (in usd per share) | $ 0.10 | $ 0.12 |
Diluted (in usd per share) | $ 0.09 | $ 0.11 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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) | 3,778,307 | 1,152,816 |
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) | 4,819,894 | 5,292,857 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | May 08, 2023 | May 05, 2023 |
Subsequent Event [Line Items] | ||
Additional amount authorized under share repurchase program | $ 100 | |
Authorized amount | $ 200 | |
Remaining authorized amount under share repurchase program | $ 155.1 |