Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 02, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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 $0.01 per share | |
Trading Symbol | TASK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Entity Central Index Key | 0001829864 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 18,682,805 | |
Class B convertible common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 70,032,694 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 171,133 | $ 125,776 |
Accounts receivable, net of allowance for credit losses of $1,658 and $1,978, respectively | 175,272 | 176,812 |
Income tax receivable | 4,218 | 2,021 |
Prepaid expenses and other current assets | 27,993 | 23,909 |
Total current assets | 378,616 | 328,518 |
Noncurrent assets: | ||
Property and equipment, net | 57,476 | 68,893 |
Operating lease right-of-use assets | 37,170 | 44,326 |
Deferred tax assets | 6,111 | 4,857 |
Intangibles | 182,728 | 192,958 |
Goodwill | 217,458 | 218,108 |
Other noncurrent assets | 6,587 | 6,542 |
Total noncurrent assets | 507,530 | 535,684 |
Total assets | 886,146 | 864,202 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 32,185 | 26,054 |
Accrued payroll and employee-related liabilities | 48,096 | 40,291 |
Current portion of debt | 11,434 | 8,059 |
Current portion of operating lease liabilities | 15,149 | 15,872 |
Current portion of income tax payable | 6,555 | 7,451 |
Deferred revenue | 3,738 | 4,077 |
Total current liabilities | 117,157 | 101,804 |
Noncurrent liabilities: | ||
Income tax payable | 4,636 | 4,621 |
Long-term debt | 249,605 | 256,166 |
Operating lease liabilities | 24,636 | 31,475 |
Accrued payroll and employee-related liabilities | 4,660 | 3,978 |
Deferred tax liabilities | 25,174 | 25,214 |
Other noncurrent liabilities | 85 | 233 |
Total noncurrent liabilities | 308,796 | 321,687 |
Total liabilities | 425,953 | 423,491 |
Commitments and Contingencies (See Note 10) | ||
Shareholders’ equity: | ||
Additional paid-in capital | 704,438 | 683,117 |
Accumulated deficit | (65,672) | (89,984) |
Accumulated other comprehensive loss | (20,576) | (9,551) |
Treasury stock, at cost. 13,106,790 and 11,796,623 shares, respectively | (159,014) | (143,876) |
Total shareholders’ equity | 460,193 | 440,711 |
Total liabilities and shareholders’ equity | 886,146 | 864,202 |
Class A common stock | ||
Shareholders’ equity: | ||
Common stock | 317 | 305 |
Class B convertible common stock | ||
Shareholders’ equity: | ||
Common stock | $ 700 | $ 700 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Allowance for doubtful accounts | $ 1,658 | $ 1,978 |
Treasury stock (in shares) | 13,106,790 | 11,796,623 |
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) | 31,703,199 | 30,522,570 |
Common stock, shares outstanding (in shares) | 18,596,409 | 18,725,947 |
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 Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Service [Member] | Service [Member] | Service [Member] | Service [Member] |
Service revenue | $ 237,928 | $ 229,169 | $ 465,398 | $ 464,475 |
Operating expenses: | ||||
Cost of services | 143,876 | 133,554 | 279,287 | 271,316 |
Selling, general, and administrative expense | 56,276 | 58,175 | 109,180 | 122,469 |
Depreciation | 9,978 | 10,079 | 20,767 | 19,740 |
Amortization of intangible assets | 4,982 | 5,125 | 9,967 | 10,249 |
Loss (gain) on disposal of assets | 94 | 67 | (83) | 132 |
Total operating expenses | 215,206 | 207,000 | 419,118 | 423,906 |
Operating income | 22,722 | 22,169 | 46,280 | 40,569 |
Other income, net | (2,703) | (684) | (2,905) | (2,861) |
Financing expenses | 5,490 | 5,330 | 11,028 | 10,429 |
Income before income taxes | 19,935 | 17,523 | 38,157 | 33,001 |
Provision for income taxes | 7,337 | 7,391 | 13,845 | 13,360 |
Net income | $ 12,598 | $ 10,132 | $ 24,312 | $ 19,641 |
Net income per common share: | ||||
Basic (in usd per share) | $ 0.14 | $ 0.10 | $ 0.27 | $ 0.20 |
Diluted (in usd per share) | $ 0.14 | $ 0.10 | $ 0.27 | $ 0.20 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 88,331,992 | 96,524,111 | 88,563,601 | 97,042,881 |
Diluted (in shares) | 91,629,930 | 98,200,005 | 91,739,908 | 99,576,289 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,598 | $ 10,132 | $ 24,312 | $ 19,641 |
Retirement benefit reserves | 17 | 19 | 22 | 27 |
Foreign currency translation adjustments | (7,734) | (3,706) | (11,047) | (123) |
Comprehensive income | $ 4,881 | $ 6,445 | $ 13,287 | $ 19,545 |
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, 2022 | 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 | ||||||||
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 | 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 | ||||||||
Beginning balance of common stock (in shares) at Dec. 31, 2022 | 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 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 19,641 | ||||||||
Ending balance of common stock (in shares) at Jun. 30, 2023 | 29,804,225 | 70,032,694 | |||||||
Ending balance at Jun. 30, 2023 | 458,799 | $ 298 | $ 700 | 660,256 | (116,033) | (10,743) | $ (75,679) | ||
Ending balance (in shares) at Jun. 30, 2023 | 5,263,015 | ||||||||
Beginning balance of common stock (in shares) at Mar. 31, 2023 | 29,489,895 | 70,032,694 | |||||||
Beginning balance at Mar. 31, 2023 | 475,755 | $ 295 | $ 700 | 645,322 | (126,165) | (7,056) | $ (37,341) | ||
Beginning balance (in shares) at Mar. 31, 2023 | 2,039,732 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of equity awards (in shares) | 338,035 | ||||||||
Issuance of common stock for settlement of equity awards | 190 | $ 3 | 187 | ||||||
Shares withheld related to net share settlement (in shares) | (23,705) | ||||||||
Shares withheld related to net share settlement | (293) | (293) | |||||||
Repurchase of common stock (in shares) | 3,223,283 | ||||||||
Repurchase of common stock | (38,338) | $ (38,338) | |||||||
Stock-based compensation expense | 15,040 | 15,040 | |||||||
Net income | 10,132 | 10,132 | |||||||
Other comprehensive income (loss) | (3,687) | (3,687) | |||||||
Ending balance of common stock (in shares) at Jun. 30, 2023 | 29,804,225 | 70,032,694 | |||||||
Ending balance at Jun. 30, 2023 | 458,799 | $ 298 | $ 700 | 660,256 | (116,033) | (10,743) | $ (75,679) | ||
Ending balance (in shares) at Jun. 30, 2023 | 5,263,015 | ||||||||
Beginning balance of common stock (in shares) at Dec. 31, 2023 | 18,725,947 | 70,032,694 | 30,522,570 | 70,032,694 | |||||
Beginning balance at Dec. 31, 2023 | $ 440,711 | $ 305 | $ 700 | 683,117 | (89,984) | (9,551) | $ (143,876) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 11,796,623 | 11,796,623 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of equity awards (in shares) | 620,835 | ||||||||
Issuance of common stock for settlement of equity awards | $ 195 | $ 6 | 189 | ||||||
Shares withheld related to net share settlement (in shares) | (122,480) | ||||||||
Shares withheld related to net share settlement | (1,574) | $ (1) | (1,573) | ||||||
Repurchase of common stock (in shares) | 285,611 | ||||||||
Repurchase of common stock | (3,379) | $ (3,379) | |||||||
Stock-based compensation expense | 10,235 | 10,235 | |||||||
Net income | 11,714 | 11,714 | |||||||
Other comprehensive income (loss) | (3,308) | (3,308) | |||||||
Ending balance of common stock (in shares) at Mar. 31, 2024 | 31,020,925 | 70,032,694 | |||||||
Ending balance at Mar. 31, 2024 | 454,594 | $ 310 | $ 700 | 691,968 | (78,270) | (12,859) | $ (147,255) | ||
Ending balance (in shares) at Mar. 31, 2024 | 12,082,234 | ||||||||
Beginning balance of common stock (in shares) at Dec. 31, 2023 | 18,725,947 | 70,032,694 | 30,522,570 | 70,032,694 | |||||
Beginning balance at Dec. 31, 2023 | $ 440,711 | $ 305 | $ 700 | 683,117 | (89,984) | (9,551) | $ (143,876) | ||
Beginning balance (in shares) at Dec. 31, 2023 | 11,796,623 | 11,796,623 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 24,312 | ||||||||
Ending balance of common stock (in shares) at Jun. 30, 2024 | 18,596,409 | 70,032,694 | 31,703,199 | 70,032,694 | |||||
Ending balance at Jun. 30, 2024 | $ 460,193 | $ 317 | $ 700 | 704,438 | (65,672) | (20,576) | $ (159,014) | ||
Ending balance (in shares) at Jun. 30, 2024 | 13,106,790 | 13,106,790 | |||||||
Beginning balance of common stock (in shares) at Mar. 31, 2024 | 31,020,925 | 70,032,694 | |||||||
Beginning balance at Mar. 31, 2024 | $ 454,594 | $ 310 | $ 700 | 691,968 | (78,270) | (12,859) | $ (147,255) | ||
Beginning balance (in shares) at Mar. 31, 2024 | 12,082,234 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Issuance of common stock for settlement of equity awards (in shares) | 722,711 | ||||||||
Issuance of common stock for settlement of equity awards | 1,856 | $ 7 | 1,849 | ||||||
Shares withheld related to net share settlement (in shares) | (40,437) | ||||||||
Shares withheld related to net share settlement | (500) | (500) | |||||||
Repurchase of common stock (in shares) | 1,024,556 | ||||||||
Repurchase of common stock | (11,759) | $ (11,759) | |||||||
Stock-based compensation expense | 11,121 | 11,121 | |||||||
Net income | 12,598 | 12,598 | |||||||
Other comprehensive income (loss) | (7,717) | (7,717) | |||||||
Ending balance of common stock (in shares) at Jun. 30, 2024 | 18,596,409 | 70,032,694 | 31,703,199 | 70,032,694 | |||||
Ending balance at Jun. 30, 2024 | $ 460,193 | $ 317 | $ 700 | $ 704,438 | $ (65,672) | $ (20,576) | $ (159,014) | ||
Ending balance (in shares) at Jun. 30, 2024 | 13,106,790 | 13,106,790 |
Unaudited Condensed Consolida_6
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 24,312 | $ 19,641 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 20,767 | 19,740 |
Amortization of intangibles | 9,967 | 10,249 |
Amortization of debt financing fees | 298 | 298 |
Loss (gain) on disposal of assets | (83) | 132 |
Benefit from credit losses | (259) | 0 |
Unrealized foreign exchange losses (gains) on forward contracts | 3,463 | (1,675) |
Deferred taxes | (1,364) | (90) |
Stock-based compensation expense | 21,356 | 28,504 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 1,352 | 3,081 |
Prepaid expenses and other current assets | (4,740) | (5,529) |
Operating lease right-of-use assets | 7,796 | 7,397 |
Other noncurrent assets | (338) | (368) |
Accounts payable and accrued liabilities | (34) | (1,142) |
Accrued payroll and employee-related liabilities | 10,275 | 9,052 |
Operating lease liabilities | (8,166) | (7,056) |
Income tax payable | (2,913) | 300 |
Deferred revenue | (333) | (217) |
Other noncurrent liabilities | (145) | (104) |
Net cash provided by operating activities | 81,211 | 82,213 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (8,088) | (15,045) |
Investment in loan receivable | 0 | (1,000) |
Net cash used in investing activities | (8,088) | (16,045) |
Cash flows from financing activities: | ||
Payments for deferred business acquisition consideration | (144) | 0 |
Payments on long-term debt | (3,375) | (1,350) |
Proceeds from employee stock plans | 2,051 | 399 |
Payments for taxes related to net share settlement | (2,074) | (550) |
Payments for stock repurchases | (15,072) | (44,334) |
Net cash used in financing activities | (18,614) | (45,835) |
Increase in cash and cash equivalents | 54,509 | 20,333 |
Effect of exchange rate changes on cash | (9,152) | (685) |
Cash and cash equivalents at beginning of period | 125,776 | 133,992 |
Cash and cash equivalents at end of period | $ 171,133 | $ 153,640 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization TaskUs, Inc. ("TaskUs," together with its subsidiaries, the "Company," "we," "us" or "our") was formed by investment funds affiliated with Blackstone Inc. (“Blackstone”) as a vehicle for the acquisition of TaskUs Holdings, Inc. ("TaskUs Holdings") on October 1, 2018 (the "Blackstone Acquisition"). Prior to the Blackstone Acquisition, TaskUs had no operations and TaskUs Holdings operated as a standalone entity. TaskUs, Inc. was incorporated in Delaware in July 2018, and is headquartered in New Braunfels, Texas. The Company is a provider of outsourced digital services and next-generation customer experience to 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, the 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 | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 (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, 2023 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 June 30, 2024 and its results of operations, comprehensive income and shareholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. (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 credit losses; 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. Clients outside of the United States are concentrated in Europe. For the three and six months ended June 30, 2024 and 2023, the following client represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 A 20 % 19 % 20 % 20 % As of June 30, 2024 and December 31, 2023, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client June 30, 2024 December 31, 2023 A 15 % 16 % B Less than 10% 12 % The Company’s principal operations, including the majority of its employees and the fixed assets owned by its wholly owned subsidiaries, are located in the Philippines. (e) 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 issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires enhanced disclosure of significant segment expenses, and other segment items, on an annual and interim basis. This Accounting Standards Update (“ASU”) will be effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This ASU will be applied retrospectively to all periods presented in the financial statements. The Company is currently reviewing this ASU, but does not expect its adoption to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard improves the transparency of rate reconciliation and income taxes paid disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The standard also improves the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) and (2) removing disclosures that no longer are considered cost beneficial or relevant. This ASU will be effective for the Company for fiscal years beginning after December 15, 2025. Early adoption is permitted. This ASU will be applied prospectively, with retrospective application permitted. The Company is currently reviewing this ASU, but does not expect its adoption to have a material impact on its consolidated financial statements. |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Business Combination | Business Combination On 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 were 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 second earnout period expired as of April 30, 2024, with no additional amount paid, and the total fair value of remaining contingent earn-out payments was determined to be $0.0 million as of December 31, 2023. Since these payments were contingent on future service conditions, they were recognized as compensation expense ratably over the required service period. For the three and six months ended June 30, 2024, the Company recognized $0.0 million and $0.0 million, respectively, and $1.3 million and $7.9 million for the three and six months ended June 30, 2023, respectively, in compensation expense related to the contingent earn-out payments included in selling, general, and administrative expenses. The Company paid $0.1 million related to holdback cash consideration during the six months ended June 30, 2024, which is included in payments for deferred business acquisition consideration. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Digital Customer Experience $ 148,352 $ 150,916 $ 291,843 $ 308,052 Trust and Safety 59,066 45,209 114,338 85,807 AI Services 30,510 33,044 59,217 70,616 Service revenue $ 237,928 $ 229,169 $ 465,398 $ 464,475 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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Philippines $ 138,308 $ 127,261 $ 269,521 $ 254,120 United States 25,267 37,235 50,857 83,897 India 29,468 28,995 58,377 57,238 Rest of World 44,885 35,678 86,643 69,220 Service revenue $ 237,928 $ 229,169 $ 465,398 $ 464,475 Contract Balances Accounts receivable, net of allowance for credit losses includes $78.0 million and $77.2 million of unbilled revenue as of June 30, 2024 and December 31, 2023, respectively. |
Forward Contracts
Forward Contracts | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Forward Contracts | 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 2024 and 2023, the Company entered into foreign currency exchange rate forward contracts, with three 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 and Indian rupees. 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 income, net in the statements of income. 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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Notional amount of settled forward contracts in Philippine pesos $ 41,690 $ 68,825 $ 87,654 $ 128,250 Notional amount of settled forward contracts in Indian rupees 10,488 7,098 22,893 7,098 Total notional amount of settled forward contracts $ 52,178 $ 75,923 $ 110,547 $ 135,348 Realized losses (gains) from settlement of forward contracts $ 2,076 $ (1,793) $ 2,769 $ (175) Unrealized losses (gains) on forward contracts $ 1,966 $ 4,661 $ 3,463 $ (1,675) The following table presents the Company's outstanding forward contracts: (in thousands) June 30, December 31, Notional amount of outstanding forward contracts in Philippine pesos $ 81,376 $ 169,029 Notional amount of outstanding forward contracts in Indian rupees 22,300 45,193 Total notional amount of outstanding forward contracts $ 103,676 $ 214,222 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, the Company offsets assets and liabilities for forward contracts with the same counterparty that it has the right and intent to net settle upon maturity; however, it does not offset assets and liabilities under master netting arrangements that it does 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, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value, at June 30, 2024 and December 31, 2023: June 30, 2024 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 Level 2 Level 3 Assets Money market funds $ 14,957 $ — $ — $ 14,957 $ — $ 14,957 $ — $ 14,957 Forward contracts receivable $ — $ 173 $ — $ 173 $ — $ 173 $ — $ 173 Liabilities Forward contracts payable $ — $ 4,325 $ — $ 4,325 $ — $ 4,325 $ — $ 4,325 December 31, 2023 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Forward contracts receivable $ — $ 95 $ — $ 95 $ — $ 95 $ (95) $ — Liabilities Forward contracts payable $ — $ 784 $ — $ 784 $ — $ 784 $ (95) $ 689 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 | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, net | Property and Equipment, net The components of property and equipment, net as of June 30, 2024 and December 31, 2023 were as follows: (in thousands) June 30, December 31, Leasehold improvements $ 67,383 $ 67,552 Technology and computers 106,334 105,375 Furniture and fixtures 7,151 7,392 Construction in process 1,673 1,140 Other property and equipment 14,132 14,238 Property and equipment, gross 196,673 195,697 Accumulated depreciation (139,197) (126,804) Property and equipment, net $ 57,476 $ 68,893 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 June 30, 2024 and December 31, 2023: (in thousands) June 30, December 31, Philippines $ 22,645 $ 29,765 United States 5,139 7,308 India 13,411 17,452 Rest of World 16,281 14,368 Property and equipment, net $ 57,476 $ 68,893 |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 $ 218,108 Foreign currency translation (650) Balance as of June 30, 2024 $ 217,458 Intangible assets consisted of the following as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 251,576 $ (94,686) $ 156,890 $ 251,899 $ (86,176) $ 165,723 Trade names 41,900 (16,062) 25,838 41,900 (14,665) 27,235 Other intangibles 180 (180) — 236 (236) — Total $ 293,656 $ (110,928) $ 182,728 $ 294,035 $ (101,077) $ 192,958 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt The balances of current and noncurrent portions of debt consisted of the following as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 11,813 $ 250,425 $ 262,238 $ 8,438 $ 257,175 $ 265,613 Less: Debt financing fees (379) (820) (1,199) (379) (1,009) (1,388) Total $ 11,434 $ 249,605 $ 261,039 $ 8,059 $ 256,166 $ 264,225 2022 Credit Agreement On September 7, 2022, the Company amended and restated its prior credit agreement (as amended and restated the "2022 Credit Agreement"), which 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. 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 June 30, 2024 was 7.694% per annum. Due to its variable interest rates, the carrying amount of debt approximates fair value based on the present value of future cash flows using Level 2 inputs. The 2022 Revolving Credit Facility terminates on September 7, 2027. As of June 30, 2024, the Company had no balance outstanding and $190.0 million of borrowing availability under the 2022 Revolving Credit Facility. We were in compliance with all debt covenants as of June 30, 2024. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The following table presents operating lease costs recorded to cost of services: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Operating lease costs - Cost of services $ 4,642 $ 4,137 $ 9,119 $ 8,535 Operating lease costs recorded to selling, general, and administrative expenses 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 June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Weighted average remaining lease term 3.1 years 3.5 years Weighted average discount rate 6.4 % 6.3 % The following table presents supplemental cash flow information related to the Company's operating leases: Six months ended June 30, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,636 $ 8,333 ROU assets obtained in exchange for operating lease liabilities 3,979 5,301 The future lease payments on the Company's operating lease liabilities as of June 30, 2024 were as follows: (in thousands) 2024-remainder of year $ 8,918 2025 15,672 2026 10,411 2027 5,584 2028 1,863 Thereafter 1,655 Total lease payments 44,103 Less: imputed interest (4,318) Total lease liabilities $ 39,785 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is 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, the Company believes that resolution of all such pending matters will not, either individually or in the aggregate, have a material adverse effect on its business, operating results, cash flows, or financial condition . However, given the inherent unpredictability of litigations, arbitrations, claims, inquiries, investigations and proceedings, it is possible that an adverse outcome in certain matters could have a material adverse effect on our business, operating results, cash flows, or financial condition in any future period. In addition, there can be no assurance that material losses will not be incurred from claims where potential losses have not yet been determined to be probable or possible and reasonably estimable. 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 initial public offering 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 BCP 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 and the other named defendants filed a motion to dismiss. On October 16, 2023, the plaintiffs voluntarily dismissed with prejudice certain claims based on certain theories of liability. On January 5, 2024, the Court granted in part and denied in part the defendants' motion to dismiss. Defendants filed an answer to the complaint on February 9, 2024, and an initial pretrial conference was held on February 16, 2024 after which a Case Management Plan and Scheduling Order was entered by the Court on February 20, 2024. The Company 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 is currently defending 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. The Company 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, the Company filed a motion to dismiss, which is currently pending. This case is currently stayed. 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 United States 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, we filed a motion to dismiss the amended complaint. In May 2023, the Court issued an Order dismissing certain parties, staying the case as to the Company and denying as moot the Company's previously filed motion to dismiss. This case is currently stayed. On November 22, 2023, TaskUs was added as an additional defendant in a lawsuit captioned Naeem Seirafi, Edward Baton, Anthony Comilla, Brett Deeney, and Abraham Vilinger, individually and on behalf of all others similarly situated v. Ledger SAS, Shopify (USA) Inc., Shopify Inc., and TaskUs, Inc., No. 21-cv-02470 pending in the United States District Court, Northern District of California. The complaint alleges defendants failed to exercise reasonable care in securing and safeguarding consumer information in connection with a 2020 data breach impacting Ledger 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 complaint asserts claims against TaskUs for negligence, negligence per se, declaratory and injunctive relief, and for violations of the New York Deceptive Trade Practices Act. The named plaintiffs’ alleged damages of approximately $557,000 and an award of costs and expenses, including reasonable attorneys’ fees, as well as declaratory and injunctive relief, and other damages. On February 5, 2024, TaskUs filed a motion to dismiss. On July 16, 2024, the Court granted in part and denied in part the motion to dismiss. Indemnification In addition, in the ordinary course of business, the Company enters into agreements of varying scope and terms pursuant to which it agrees 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 the Company or from intellectual property infringement claims made by third parties. Historically, the Company has not experienced significant losses on these types of indemnification obligations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following table summarizes the stock option, restricted stock unit ("RSU") and performance stock unit ("PSU") activity for the six months ended June 30, 2024 : Options RSUs PSUs Number of Weighted - Number of Weighted - Number of Weighted - Outstanding at January 1, 2024 7,523,971 $ 14.19 3,864,319 $ 23.60 3,373,417 $ 4.02 Granted — $ — 2,361,162 $ 12.47 320,000 $ 11.58 Exercised or released (429,681) $ 4.77 (913,865) $ 20.70 — $ — Forfeited, cancelled or expired (1,367,699) $ 6.82 (235,023) $ 21.10 — $ — Outstanding at June 30, 2024 5,726,591 $ 16.65 5,076,593 $ 19.06 3,693,417 $ 4.67 The following table summarizes the components of stock-based compensation expense recognized for the periods presented: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Cost of services $ 501 $ 1,038 $ 1,181 $ 1,915 Selling, general, and administrative expense 10,620 14,002 20,175 26,589 Total $ 11,121 $ 15,040 $ 21,356 $ 28,504 As of June 30, 2024, there was $4.3 million, $41.5 million and $4.9 million of unrecognized compensation expense related to the Company’s unvested stock options, RSUs and PSUs, respectively, that is expected to be recognized over a weighted-average period of 1.2 years, 1.5 years and 1.6 years, respectively. Certain PSUs contain performance conditions, which may result in a lesser amount of expense recognized over the term of the awards. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
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 $7.3 million and $7.4 million in the three months ended June 30, 2024 and 2023, respectively. The effective tax rate was 36.8% and 42.2% for the three months ended June 30, 2024 and 2023, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (in thousands, except share and per share data) 2024 2023 2024 2023 Numerator: Net income $ 12,598 $ 10,132 $ 24,312 $ 19,641 Denominator: Weighted-average common shares outstanding – basic 88,331,992 96,524,111 88,563,601 97,042,881 Effect of dilutive securities 3,297,938 1,675,894 3,176,307 2,533,408 Weighted-average common shares outstanding – diluted 91,629,930 98,200,005 91,739,908 99,576,289 Net income per common share: Basic $ 0.14 $ 0.10 $ 0.27 $ 0.20 Diluted $ 0.14 $ 0.10 $ 0.27 $ 0.20 The Company excluded 3,408,439 and 3,411,655 potential common stock equivalents from the computation of diluted EPS for the three and six months ended June 30, 2024, respectively, and 7,161,748 and 5,470,027 potential common stock equivalents from the computation of diluted EPS for the three and six months ended June 30, 2023, respectively, because the effect would have been anti-dilutive. There were 3,373,417 and 5,495,518 potential common stock equivalents outstanding as of June 30, 2024 and 2023, respectively, with market conditions which were not met at the relevant date, that were excluded from the calculation of diluted EPS. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||||
Net income | $ 12,598 | $ 11,714 | $ 10,132 | $ 9,509 | $ 24,312 | $ 19,641 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 shares | Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Stephan Daoust [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 17, 2024, Stephan Daoust, our Chief Operating Officer, adopted a Rule 10b5-1 trading arrangement (the “Daoust 10b5-1 Plan”), which provides for the potential sale of up to 251,161 shares of the Company’s Class A Common Stock, including shares obtained from the exercise of vested stock options and the vesting of restricted stock units (subject to reduction for any shares withheld to satisfy tax withholding obligations). The Daoust 10b5-1 Plan is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and unless otherwise terminated pursuant to its terms, provides for sales from August 16, 2024 to December 15, 2024 or an earlier date on which all shares thereunder are sold. | |
Name | Stephan Daoust | |
Title | Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 17, 2024 | |
Expiration Date | December 15, 2024 | |
Arrangement Duration | 121 days | |
Aggregate Available | 251,161 | 251,161 |
Jarrod Johnson [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On May 16, 2024, Jarrod Johnson, our Chief Customer Officer, adopted a Rule 10b5-1 trading arrangement (the “Johnson 10b5-1 Plan”), which provides for the potential sale of up to 146,865 shares of the Company’s Class A Common Stock, including shares obtained from the vesting of restricted stock units (subject to reduction for any shares withheld to satisfy tax withholding obligations). The Johnson 10b5-1 Plan is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and unless otherwise terminated pursuant to its terms, provides for sales from August 15, 2024 to March 31, 2025 or an earlier date on which all shares thereunder are sold. | |
Name | Jarrod Johnson | |
Title | Chief Customer Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | May 16, 2024 | |
Expiration Date | March 31, 2025 | |
Arrangement Duration | 228 days | |
Aggregate Available | 146,865 | 146,865 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 (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, 2023 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 June 30, 2024 and its results of operations, comprehensive income and shareholders’ equity for the three and six months ended June 30, 2024 and 2023, and cash flows for the six months ended June 30, 2024 and 2023. The condensed consolidated balance sheet as of December 31, 2023, was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements. |
Use of Estimates | 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 credit losses; 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 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. |
Concentration Risk | Concentration Risk Most of the Company’s customers are located in the United States. Clients outside of the United States are concentrated in Europe. The Company’s principal operations, including the majority of its employees and the fixed assets owned by its wholly owned subsidiaries, are located in the Philippines. |
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 issued accounting pronouncements In November 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. This standard requires enhanced disclosure of significant segment expenses, and other segment items, on an annual and interim basis. This Accounting Standards Update (“ASU”) will be effective for the Company for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. This ASU will be applied retrospectively to all periods presented in the financial statements. The Company is currently reviewing this ASU, but does not expect its adoption to have a material impact on its consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard improves the transparency of rate reconciliation and income taxes paid disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The standard also improves the effectiveness and comparability of disclosures by (1) adding disclosures of pretax income (loss) and income tax expense (benefit) and (2) removing disclosures that no longer are considered cost beneficial or relevant. This ASU will be effective for the Company for fiscal years beginning after December 15, 2025. Early adoption is permitted. This ASU will be applied prospectively, with retrospective application permitted. The Company is currently reviewing this ASU, but does not expect its adoption to have a material impact on its 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 2024 and 2023, the Company entered into foreign currency exchange rate forward contracts, with three 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 and Indian rupees. 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 income, net in the statements of income. 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) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Concentration Risk | For the three and six months ended June 30, 2024 and 2023, the following client represented greater than 10% of the Company’s service revenue: Client Service revenue percentage Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 A 20 % 19 % 20 % 20 % As of June 30, 2024 and December 31, 2023, the following clients represented greater than 10% of the Company’s accounts receivable: Accounts receivable percentage Client June 30, 2024 December 31, 2023 A 15 % 16 % B Less than 10% 12 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Digital Customer Experience $ 148,352 $ 150,916 $ 291,843 $ 308,052 Trust and Safety 59,066 45,209 114,338 85,807 AI Services 30,510 33,044 59,217 70,616 Service revenue $ 237,928 $ 229,169 $ 465,398 $ 464,475 |
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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Philippines $ 138,308 $ 127,261 $ 269,521 $ 254,120 United States 25,267 37,235 50,857 83,897 India 29,468 28,995 58,377 57,238 Rest of World 44,885 35,678 86,643 69,220 Service revenue $ 237,928 $ 229,169 $ 465,398 $ 464,475 |
Forward Contracts (Tables)
Forward Contracts (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Notional amount of settled forward contracts in Philippine pesos $ 41,690 $ 68,825 $ 87,654 $ 128,250 Notional amount of settled forward contracts in Indian rupees 10,488 7,098 22,893 7,098 Total notional amount of settled forward contracts $ 52,178 $ 75,923 $ 110,547 $ 135,348 Realized losses (gains) from settlement of forward contracts $ 2,076 $ (1,793) $ 2,769 $ (175) Unrealized losses (gains) on forward contracts $ 1,966 $ 4,661 $ 3,463 $ (1,675) The following table presents the Company's outstanding forward contracts: (in thousands) June 30, December 31, Notional amount of outstanding forward contracts in Philippine pesos $ 81,376 $ 169,029 Notional amount of outstanding forward contracts in Indian rupees 22,300 45,193 Total notional amount of outstanding forward contracts $ 103,676 $ 214,222 |
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, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value, at June 30, 2024 and December 31, 2023: June 30, 2024 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 Level 2 Level 3 Assets Money market funds $ 14,957 $ — $ — $ 14,957 $ — $ 14,957 $ — $ 14,957 Forward contracts receivable $ — $ 173 $ — $ 173 $ — $ 173 $ — $ 173 Liabilities Forward contracts payable $ — $ 4,325 $ — $ 4,325 $ — $ 4,325 $ — $ 4,325 December 31, 2023 Fair value measurements using Total Gross Fair Value Effect of Counter-party Netting Net Amounts on Balance Sheet Effect of Master Netting Arrangements Net Amounts (in thousands) Level 1 inputs Level 2 inputs Level 3 inputs Assets Forward contracts receivable $ — $ 95 $ — $ 95 $ — $ 95 $ (95) $ — Liabilities Forward contracts payable $ — $ 784 $ — $ 784 $ — $ 784 $ (95) $ 689 |
Property and Equipment, net (Ta
Property and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | The components of property and equipment, net as of June 30, 2024 and December 31, 2023 were as follows: (in thousands) June 30, December 31, Leasehold improvements $ 67,383 $ 67,552 Technology and computers 106,334 105,375 Furniture and fixtures 7,151 7,392 Construction in process 1,673 1,140 Other property and equipment 14,132 14,238 Property and equipment, gross 196,673 195,697 Accumulated depreciation (139,197) (126,804) Property and equipment, net $ 57,476 $ 68,893 |
Schedule of Property and Equipment by Geographic Areas | The table below presents the Company’s total property and equipment by geographic location as of June 30, 2024 and December 31, 2023: (in thousands) June 30, December 31, Philippines $ 22,645 $ 29,765 United States 5,139 7,308 India 13,411 17,452 Rest of World 16,281 14,368 Property and equipment, net $ 57,476 $ 68,893 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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, 2023 $ 218,108 Foreign currency translation (650) Balance as of June 30, 2024 $ 217,458 |
Schedule of Intangible Assets | Intangible assets consisted of the following as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Intangibles, Accumulated Intangibles, Intangibles, Accumulated Intangibles, Customer relationships $ 251,576 $ (94,686) $ 156,890 $ 251,899 $ (86,176) $ 165,723 Trade names 41,900 (16,062) 25,838 41,900 (14,665) 27,235 Other intangibles 180 (180) — 236 (236) — Total $ 293,656 $ (110,928) $ 182,728 $ 294,035 $ (101,077) $ 192,958 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Current and Non-Current Debt | The balances of current and noncurrent portions of debt consisted of the following as of June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 (in thousands) Current Noncurrent Total Current Noncurrent Total Term Loan $ 11,813 $ 250,425 $ 262,238 $ 8,438 $ 257,175 $ 265,613 Less: Debt financing fees (379) (820) (1,199) (379) (1,009) (1,388) Total $ 11,434 $ 249,605 $ 261,039 $ 8,059 $ 256,166 $ 264,225 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating Lease Costs | The following table presents operating lease costs recorded to cost of services: Three months ended June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Operating lease costs - Cost of services $ 4,642 $ 4,137 $ 9,119 $ 8,535 |
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 June 30, 2024 and December 31, 2023: June 30, 2024 December 31, 2023 Weighted average remaining lease term 3.1 years 3.5 years Weighted average discount rate 6.4 % 6.3 % The following table presents supplemental cash flow information related to the Company's operating leases: Six months ended June 30, (in thousands) 2024 2023 Cash paid for amounts included in the measurement of operating lease liabilities $ 9,636 $ 8,333 ROU assets obtained in exchange for operating lease liabilities 3,979 5,301 |
Schedule of Future Lease Payments | The future lease payments on the Company's operating lease liabilities as of June 30, 2024 were as follows: (in thousands) 2024-remainder of year $ 8,918 2025 15,672 2026 10,411 2027 5,584 2028 1,863 Thereafter 1,655 Total lease payments 44,103 Less: imputed interest (4,318) Total lease liabilities $ 39,785 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the stock option, restricted stock unit ("RSU") and performance stock unit ("PSU") activity for the six months ended June 30, 2024 : Options RSUs PSUs Number of Weighted - Number of Weighted - Number of Weighted - Outstanding at January 1, 2024 7,523,971 $ 14.19 3,864,319 $ 23.60 3,373,417 $ 4.02 Granted — $ — 2,361,162 $ 12.47 320,000 $ 11.58 Exercised or released (429,681) $ 4.77 (913,865) $ 20.70 — $ — Forfeited, cancelled or expired (1,367,699) $ 6.82 (235,023) $ 21.10 — $ — Outstanding at June 30, 2024 5,726,591 $ 16.65 5,076,593 $ 19.06 3,693,417 $ 4.67 |
Schedule of RSU Activity | The following table summarizes the stock option, restricted stock unit ("RSU") and performance stock unit ("PSU") activity for the six months ended June 30, 2024 : Options RSUs PSUs Number of Weighted - Number of Weighted - Number of Weighted - Outstanding at January 1, 2024 7,523,971 $ 14.19 3,864,319 $ 23.60 3,373,417 $ 4.02 Granted — $ — 2,361,162 $ 12.47 320,000 $ 11.58 Exercised or released (429,681) $ 4.77 (913,865) $ 20.70 — $ — Forfeited, cancelled or expired (1,367,699) $ 6.82 (235,023) $ 21.10 — $ — Outstanding at June 30, 2024 5,726,591 $ 16.65 5,076,593 $ 19.06 3,693,417 $ 4.67 |
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 June 30, Six months ended June 30, (in thousands) 2024 2023 2024 2023 Cost of services $ 501 $ 1,038 $ 1,181 $ 1,915 Selling, general, and administrative expense 10,620 14,002 20,175 26,589 Total $ 11,121 $ 15,040 $ 21,356 $ 28,504 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 and six months ended June 30, 2024 and 2023: Three months ended June 30, Six months ended June 30, (in thousands, except share and per share data) 2024 2023 2024 2023 Numerator: Net income $ 12,598 $ 10,132 $ 24,312 $ 19,641 Denominator: Weighted-average common shares outstanding – basic 88,331,992 96,524,111 88,563,601 97,042,881 Effect of dilutive securities 3,297,938 1,675,894 3,176,307 2,533,408 Weighted-average common shares outstanding – diluted 91,629,930 98,200,005 91,739,908 99,576,289 Net income per common share: Basic $ 0.14 $ 0.10 $ 0.27 $ 0.20 Diluted $ 0.14 $ 0.10 $ 0.27 $ 0.20 |
Description of Business and O_2
Description of Business and Organization (Details) | 6 Months Ended |
Jun. 30, 2024 service | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of key services | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Concentration Risk (Details) - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Service revenue percentage | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 20% | 19% | 20% | 20% | |
Accounts receivable percentage | Customer A | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 15% | 16% | |||
Accounts receivable percentage | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 12% |
Business Combination (Details)
Business Combination (Details) € in Millions | 3 Months Ended | 6 Months Ended | ||||||
Apr. 30, 2024 USD ($) | Apr. 15, 2022 USD ($) | Apr. 15, 2022 EUR (€) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Business Acquisition [Line Items] | ||||||||
Payments related to holdback cash consideration | $ 144,000 | $ 0 | ||||||
Parsec d.o.o. and Q Experience d.o.o. | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of outstanding shares acquired | 100% | 100% | ||||||
Payments for deferred business acquisition consideration | $ 35,400,000 | |||||||
Maximum payouts | € | € 20 | |||||||
Based on a multiple of EBITDA | 1 year | 1 year | ||||||
Earnout operating activities | $ 0 | |||||||
Earn-out payments | $ 0 | |||||||
Earnout expense | $ 0 | $ 1,300,000 | 0 | $ 7,900,000 | ||||
Payments related to holdback cash consideration | $ 100,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Schedule of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 237,928 | $ 229,169 | $ 465,398 | $ 464,475 |
Philippines | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 138,308 | 127,261 | 269,521 | 254,120 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 25,267 | 37,235 | 50,857 | 83,897 |
India | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,468 | 28,995 | 58,377 | 57,238 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 44,885 | 35,678 | 86,643 | 69,220 |
Digital Customer Experience | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 148,352 | 150,916 | 291,843 | 308,052 |
Trust and Safety | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 59,066 | 45,209 | 114,338 | 85,807 |
AI Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 30,510 | $ 33,044 | $ 59,217 | $ 70,616 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled revenues | $ 78 | $ 77.2 |
Forward Contracts - Narrative (
Forward Contracts - Narrative (Details) - counterparty | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative [Line Items] | ||
Number of counterparties | 3 | 3 |
Forward contracts payable | ||
Derivative [Line Items] | ||
Derivative term | 12 months | 12 months |
Forward Contracts - Schedule of
Forward Contracts - Schedule of Settled and Outstanding Forward Contracts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Unrealized losses (gains) on forward contracts | $ 3,463 | $ (1,675) | |||
Forward contracts payable | |||||
Derivative [Line Items] | |||||
Total notional amount of settled forward contracts | $ 52,178 | $ 75,923 | 110,547 | 135,348 | |
Realized losses (gains) from settlement of forward contracts | 2,076 | (1,793) | 2,769 | (175) | |
Unrealized losses (gains) on forward contracts | 1,966 | 4,661 | 3,463 | (1,675) | |
Total notional amount of outstanding forward contracts | 103,676 | 103,676 | $ 214,222 | ||
Settled in Philippine Pesos | |||||
Derivative [Line Items] | |||||
Total notional amount of settled forward contracts | 41,690 | 68,825 | 87,654 | 128,250 | |
Total notional amount of outstanding forward contracts | 81,376 | 81,376 | 169,029 | ||
Settled in Indian Rupees | |||||
Derivative [Line Items] | |||||
Total notional amount of settled forward contracts | 10,488 | $ 7,098 | 22,893 | $ 7,098 | |
Total notional amount of outstanding forward contracts | $ 22,300 | $ 22,300 | $ 45,193 |
Forward Contracts - Assets and
Forward Contracts - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Money market funds | ||
Assets | ||
Money market funds | $ 14,957 | |
Level 1 inputs | Money market funds | ||
Assets | ||
Money market funds | 14,957 | |
Level 2 inputs | Money market funds | ||
Assets | ||
Money market funds | 0 | |
Level 3 inputs | Money market funds | ||
Assets | ||
Money market funds | 0 | |
Forward contracts payable | ||
Assets | ||
Forward contracts receivable | 173 | $ 95 |
Effect of Counter-party Netting | 0 | 0 |
Net Amounts on Balance Sheet | 173 | 95 |
Effect of Master Netting Arrangements | 0 | (95) |
Net Amounts | 173 | 0 |
Liabilities | ||
Forward contracts payable | 4,325 | 784 |
Effect of Counter-party Netting | 0 | 0 |
Net Amounts on Balance Sheet | 4,325 | 784 |
Effect of Master Netting Arrangements | 0 | (95) |
Net Amounts | 4,325 | 689 |
Forward contracts payable | Level 1 inputs | ||
Assets | ||
Forward contracts receivable | 0 | 0 |
Liabilities | ||
Forward contracts payable | 0 | 0 |
Forward contracts payable | Level 2 inputs | ||
Assets | ||
Forward contracts receivable | 173 | 95 |
Liabilities | ||
Forward contracts payable | 4,325 | 784 |
Forward contracts payable | Level 3 inputs | ||
Assets | ||
Forward contracts receivable | 0 | 0 |
Liabilities | ||
Forward contracts payable | $ 0 | $ 0 |
Property and Equipment, net - S
Property and Equipment, net - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 196,673 | $ 195,697 |
Accumulated depreciation | (139,197) | (126,804) |
Property and equipment, net | 57,476 | 68,893 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 67,383 | 67,552 |
Technology and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 106,334 | 105,375 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 7,151 | 7,392 |
Construction in process | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,673 | 1,140 |
Other property and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,132 | $ 14,238 |
Property and Equipment, net -_2
Property and Equipment, net - Schedule of Property and Equipment by Geographic Location (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 57,476 | $ 68,893 |
Philippines | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 22,645 | 29,765 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 5,139 | 7,308 |
India | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 13,411 | 17,452 |
Rest of World | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | $ 16,281 | $ 14,368 |
Goodwill and Intangibles - Carr
Goodwill and Intangibles - Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 218,108 |
Foreign currency translation | (650) |
Goodwill, ending balance | $ 217,458 |
Goodwill and Intangibles - Comp
Goodwill and Intangibles - Components of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | $ 293,656 | $ 294,035 |
Accumulated Amortization | (110,928) | (101,077) |
Intangibles, Net | 182,728 | 192,958 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 251,576 | 251,899 |
Accumulated Amortization | (94,686) | (86,176) |
Intangibles, Net | 156,890 | 165,723 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 41,900 | 41,900 |
Accumulated Amortization | (16,062) | (14,665) |
Intangibles, Net | 25,838 | 27,235 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangibles, Gross | 180 | 236 |
Accumulated Amortization | (180) | (236) |
Intangibles, Net | $ 0 | $ 0 |
Long-Term Debt - Schedule of De
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Less current debt financing fees | $ (379) | $ (379) |
Less noncurrent debt financing fees | (820) | (1,009) |
Less: Debt financing fees | (1,199) | (1,388) |
Current portion of debt | 11,434 | 8,059 |
Noncurrent portion of debt | 249,605 | 256,166 |
Total | 261,039 | 264,225 |
Secured Debt | 2022 Credit Agreement | ||
Debt Instrument [Line Items] | ||
Long term debt, current, gross | 11,813 | 8,438 |
Long term debt, noncurrent, gross | 250,425 | 257,175 |
Total | $ 262,238 | $ 265,613 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - 2022 Credit Agreement - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 07, 2022 |
Secured Debt | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 270,000,000 | ||
Effective interest rate | 7.694% | ||
Long term debt, gross | $ 262,238,000 | $ 265,613,000 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, maximum borrowing capacity | $ 190,000,000 | ||
Long term debt, gross | 0 | ||
Line of credit facility, remaining borrowing capacity | $ 190,000,000 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Cost of services | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease cost | $ 4,642 | $ 4,137 | $ 9,119 | $ 8,535 |
Leases - Weighted Average (Deta
Leases - Weighted Average (Details) | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
Weighted average remaining lease term | 3 years 1 month 6 days | 3 years 6 months |
Weighted average discount rate | 6.40% | 6.30% |
Leases - Supplemental Informati
Leases - Supplemental Information Related to Operating Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 9,636 | $ 8,333 |
ROU assets obtained in exchange for operating lease liabilities | $ 3,979 | $ 5,301 |
Leases - Future Lease Payments
Leases - Future Lease Payments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2024-remainder of year | $ 8,918 |
2025 | 15,672 |
2026 | 10,411 |
2027 | 5,584 |
2028 | 1,863 |
Thereafter | 1,655 |
Total lease payments | 44,103 |
Less: imputed interest | (4,318) |
Total lease liabilities | $ 39,785 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
Operating leases not yet commenced, liability | $ 10 |
Lease terms | 5 years 1 month 6 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Pending Litigation information in Thousands, $ in Thousands | 6 Months Ended | ||
Nov. 22, 2023 USD ($) information | Apr. 01, 2022 USD ($) information plaintiff | Jun. 30, 2024 lawsuit | |
Business Acquisition [Line Items] | |||
Number of lawsuits filed | lawsuit | 3 | ||
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 | ||
Aggregate losses alleged by plaintiff | $ 140 | ||
Gregory Forsberg, Christopher Gunter, Samuel Kissinger, And Scott Sipprell vs. TaskUs, Inc. And Shopify, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Damages sought | $ 5,000 | ||
Naeem Seirafi, Edward Baton, Anthony Comilla, Brett Deeney, and Abraham Vilinge vs. TaskUs, Inc. And Shopify, Inc. | |||
Business Acquisition [Line Items] | |||
Number of personally identifiable information pieces released | information | 272 | ||
Damages sought | $ 557 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option and Restricted Stock Unit (Details) | 6 Months Ended |
Jun. 30, 2024 $ / shares shares | |
Number of options | |
Beginning balance outstanding (in shares) | shares | 7,523,971 |
Granted (in shares) | shares | 0 |
Exercised or released (in shares) | shares | (429,681) |
Forfeited, cancelled or expired (in shares) | shares | (1,367,699) |
Ending balance outstanding (in shares) | shares | 5,726,591 |
Weighted - average exercise price | |
Beginning balance outstanding (in usd per share) | $ / shares | $ 14.19 |
Granted (in usd per share) | $ / shares | 0 |
Exercised or released (in usd per share) | $ / shares | 4.77 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 6.82 |
Ending balance outstanding (in usd per share) | $ / shares | $ 16.65 |
RSUs | |
Number of RSUs/PSUs | |
Beginning balance (in shares) | shares | 3,864,319 |
Granted (in shares) | shares | 2,361,162 |
Exercised or released (in shares) | shares | (913,865) |
Forfeited, cancelled or expired (in shares) | shares | (235,023) |
Ending balance (in shares) | shares | 5,076,593 |
Weighted - average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 23.60 |
Granted (in usd per share) | $ / shares | 12.47 |
Exercised or released (in usd per share) | $ / shares | 20.70 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 21.10 |
Ending balance (in usd per share) | $ / shares | $ 19.06 |
PSUs | |
Number of RSUs/PSUs | |
Beginning balance (in shares) | shares | 3,373,417 |
Granted (in shares) | shares | 320,000 |
Exercised or released (in shares) | shares | 0 |
Forfeited, cancelled or expired (in shares) | shares | 0 |
Ending balance (in shares) | shares | 3,693,417 |
Weighted - average grant date fair value | |
Beginning balance (in usd per share) | $ / shares | $ 4.02 |
Granted (in usd per share) | $ / shares | 11.58 |
Exercised or released (in usd per share) | $ / shares | 0 |
Forfeited, cancelled or expired (in usd per share) | $ / shares | 0 |
Ending balance (in usd per share) | $ / shares | $ 4.67 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 11,121 | $ 15,040 | $ 21,356 | $ 28,504 |
Cost of services | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | 501 | 1,038 | 1,181 | 1,915 |
Selling, general, and administrative expense | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expense | $ 10,620 | $ 14,002 | $ 20,175 | $ 26,589 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense related to stock options | $ 4.3 |
RSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 41.5 |
Weighted average period for recognition | 1 year 6 months |
PSUs | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense | $ 4.9 |
Weighted average period for recognition | 1 year 7 months 6 days |
Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average period for recognition | 1 year 2 months 12 days |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 7,337 | $ 7,391 | $ 13,845 | $ 13,360 |
Effective income tax rate | 36.80% | 42.20% | 36.30% | 40.50% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Earnings (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||||||
Net income | $ 12,598 | $ 11,714 | $ 10,132 | $ 9,509 | $ 24,312 | $ 19,641 |
Denominator: | ||||||
Weighted-average common shares outstanding – basic (in shares) | 88,331,992 | 96,524,111 | 88,563,601 | 97,042,881 | ||
Effect of dilutive securities (in shares) | 3,297,938 | 1,675,894 | 3,176,307 | 2,533,408 | ||
Weighted-average common shares outstanding – diluted (in shares) | 91,629,930 | 98,200,005 | 91,739,908 | 99,576,289 | ||
Net income per common share: | ||||||
Basic (in usd per share) | $ 0.14 | $ 0.10 | $ 0.27 | $ 0.20 | ||
Diluted (in usd per share) | $ 0.14 | $ 0.10 | $ 0.27 | $ 0.20 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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) | 3,408,439 | 7,161,748 | 3,411,655 | 5,470,027 |
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) | 3,373,417 | 5,495,518 |