TaskUs (TASK) 10-Q 9 May 23 2023 Q1 Quarterly report Financial data

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