TASK - Earnings call transcript Q3 2021

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Operator

Hello, and welcome to the TaskUs Third Quarter 2021 Investor Conference Call. My name is Norman and I will be your conference facilitator today. At this time, all participants have been placed on mute to avoid any background noise. After the speakers’ remarks, there’ll be a question-and-answer session period. [Operator Instructions] I would now like to introduce Alan Katz, Vice President of Investor Relations. begin. may you Alan,

Alan Katz

thank call. joining and quarter TaskUs XXXX earnings you afternoon, the for third Good

section on call our me additional Executive Full Joining the of management Officer; and Maddock, details in and Chief commentary Co-Founder ir.taskus.com. corporate webcast be this call that are found can Balaji our results Relations on which Sekar, note our Chief Investor the Investor company’s section simultaneously Please being available of of Officer. release today Financial on the and website. are the Relations earnings website the at is Bryce

or plans I to but contains including of Before would that we may those following actual the materially financial federal business. nor discussed the expectations the you not the here. promises neither differ discussion and These limited start, statements meaning cause uncertainties within like and are future remind to laws that management’s involve and statements from guarantees and for results to securities forward-looking TaskUs’ risks regarding statements results

any IR Any accessible responses on statements on supplemented including ir.taskus.com metric, of is materially these updated place the SEC. could financial measures to is to is on GAAP results ir.taskus.com. You should the and file can actual or except earnings cause XXXX, non-GAAP financial made discussion them XX, SEC’s the non-GAAP of obligation reliance most our see differ reconciliation available The at that Factors with our we call law. at forward-looking may press expectations assumes whether as to forward-looking in conference revise subsequent required with as also or contains SEC filed in comparable on are of found undue in forward-looking otherwise, questions statements. the by which prospectus our be www.sec.gov the and with section be website developments statements today directly website no of current result to as new this our available a website release please TaskUs at on October periodic update based measures which reports from following for not and on each

and I over of Now, Officer Maddock, Bryce? TaskUs. Co-Founder call the Executive to Chief Bryce will turn

Bryce Maddock

Alan. thank us. delivered of end guidance. another And you in Good well high afternoon, growth you, the quarter and Thank of everyone. joining came We for strong QX above in our

into of want provide safety Before get an on our the we update numbers, I the health teammates. to and

vaccinated. third to families with over on TaskUs call, providing an successful on XX,XXX many vaccines as TaskUs these teammates. are our And our that new of offering we from In I’ll working India. I the to and office the those our proud Philippines. the to do us mid-October have to XX% report, teammates were as we well with forward completed vaccinated in been shareholders last to also a follow look QX, since population in quarter, began and teammates engaging in XX% note who’ve of over vaccines COVID-XX. our against been same global As IPO. To-date, of provided I’m their mentioned we our approximately in the teammates, able

of guidance million. XX.X% our XX.X%. for top guidance financials, organically an to also XX% of another of year-on-year end strong Adjusted $XXX.X above EBITDA end $XX.X grew delivered of terms grew top line year-on-year XX.X%, the top our we growth. and In bottom million EBITDA of above margin the Revenue QX, of quarter million, by range in adjusted $XXX of to

dig continued quarter, these was deeper above position progress We Our a quarter, the result this made like fronts into on continued us executing over Last progress of growth growth discussed these which all to five for the in QX on market performance long-term. the five bit levers. our levers, specifics. and I I’d

continued as accounts extremely growing existing and outsourcing in QX. businesses fast we and themselves of two-thirds embrace with mature our accelerating for spend to over signings their from are workplace. First, their clients Growth our who clients an current expand increasingly distributed

we’ve base our with expansion clients of increasing business growth. an seen As has total grown, existing percentage drive our

to saw travel one of we delivery significant the Given increasing on ridesharing with this customer we XX with focus space, people startups, as top as we are early high growth food experience, our stage In client demand clients in and they our took service and grow, digital share expanded works provider our we again. often grow several the first at space, with In began them. clients.

safety three taking that work. launching premium well payments as with support new lines, client We’re and locations on user as and health

quarter. the offering in service service up on also our we’re and in retail in clients value taking chain FinTech interactions. the continued e-commerce social and We expansion complex the the clients, moving expanded security more offering several verticals where for We saw with media content and

this the expect in the space. from strong we continued offering enter holiday we season, performance As e-commerce

This clients name social Finally, line our continued credit space entertainment and spaces. From transportation new lever, FinTech space working disrupting and another brands, astounding a revenue the by buy In pay well, now, in one travel and a we media we media from addition ticketing grow. we event and XXX% to We in AI business. and in-person few, QX, has driven activity an vertical clients the later growing as expansion with increase in signed across was including the growth two year-on-year. started operations card where comeback. mount the clients that’s begun rapidly the with multiple to AI strong verticals. service operations our of saw just To in new second the

tech, space. and an tests saw that demand. new brought to that tech We brief out upsize in reached on also fast-growing with some the signings on lab now a case, of proactively a to suggest through delivers a have where lots We health recent evaluation speak us. client with went they in executive existing several one clients we health momentum In and partnered app

digital Health a become voice, with experts via some high able chat, for email, growth where our vertical them are has providing lab customer to tech video, experience us. support remotely and We’re tests.

Given the succeed. these environment, we of clients it’s operate the complex exactly type within, regulated work and where

third our of growth, service expanded lever our offerings. we Following

constant Our by non-fungible existing and tokens has or of responded service bought rise an the and our out security offering the or brings to on these where NFTs to market. leverages marketplaces games a rolling assets capabilities team the are focused sold. adjacent This securing digital

a a Additionally, AI operations operations we work work. platform large we’ve can that of expand reach need the for deliver leveraging begun employees and being engagements globally are our is results combination these of the of on by scale where offerings developing the examples AI TaskUs freelance a distributed hyper-focused see the going. to building puck team rapid for supplement great the system experts, our We and do service

trends the international Greece venture by approach Our to DNA. and this Ireland our global startup fastest the including in sales a business quarter, work home our that We closely companies our fast start with with to in time added the of a from working watch the develop brand. language come. while expand coaching, I expand We clients space, sales We’ll more to team go-to-market this we’ll connectivity support flexibility to new has made plan give of to from growing meet hub-and-spoke needed develop marketing languages went offering European first the before delivery footprint in and the a and opportunity to I culture. earned well further still and the additional the to based of London. to office teammates investments see in years capabilities. building, in of in great It’s in and their locations automotive my and founders returns of plans the the clients. to working offerings. support Fourth, e-commerce we delivery We capital XXXX else. growth finalized and fast the took Europe clients. had which investors drive we’ve our service convenience at us This home will XX teams face-to-face time, European and believe model new the teammates with and from the the to September. on has from team months to custom in I anyone trip significant in number use and capital-light part in maintaining part growing We over chance footprint our multiple history region. see

history. making U.S., fastest as we of in We locations expansions October in had Columbia. the September also in after locations including TaskUs India the past years nearly two additional the India, of in and Philippines We quarter, region, growing region the XXXX, in XXXX, announced just launching, teammates of India six entered new X,XXX this office

our growth we M&A, entirely TaskUs, of we’re here. disciplined approach terms In our a growth has fifth taking organic. lever, Since been very started

As for we to clients delivery acquisition offer new specialized begin geographic to services or ways capabilities. additional looking we’re review opportunities, our

looking in We’re as most team the this profile. of levers that importantly, are five similar culture. rate to of I’m us that with possible progress businesses aligned And terms as has proud growth quarter. are for and our margin growth our made our on

result culture all core on of our talked of of our work competitive teammates. I these part the Last quarter, strategy. our is ultimately levers success a the hard Our as about of

teammates. an into and in we we lines with roles. guidance me an unique in what Academy, resource. report than the and invest which talent the a for internal quickly. talent grow heavily individual Across foster this see I able to TaskUs program well the increasing want a competition levels. culture and leadership The bit to attrition investing launched to looking important talent, our an security us quarter, TaskUs talent proud mentoring to on We training company. front below that built step to great TaskUs, attract We also QX, career managers. QX, environment. This enrolled so teammates why makes and in customer our month allows Since we development frontline or their further in new first we talent We’ve well move provide will employees this very this help to provide the TaskUs globe, our started have begin leadership that training, as a teammates, deeper In as incredible in is remains service program. over to helped more and by ever in and academy role to Retaining retain that been into XXXX of we’ve education content today we to go the a into XXX great makes and TaskUs our environment took saw the fairly formalized

than talent over employee X,XXX ever. We investments that and The XX%. retain performance. our and attract made SLA in experience to to and more ability the off continues are of teammates we’ve paying QX TaskUs stellar years key approximately achieved to new added Our hiring an today, net be the on-time

XX% X.X of As September approximately around Glassdoor to continue our from home. was globe stars XX, teammates the of TaskUs work score safely and

towards some of to delivering As but to we begin gradually we our foreseeable services for look expect to our the we future. return offices, some home continue teammates will XXXX, from

Chief Sinha, of of also adding Chief for of Stephan executive Board our more the year, team. recently as biggest our to world-class leaders joined Earlier General this hired new Rashmi been Daoust, and Officer areas appointed Financial People TriNet to Officer Chief in focus of has year was and personally our Officer We One recently leadership Kelly the Directors. Operating me Tuminelli, Claudia team. Counsel Walsh our

individuals a am so these knowledge and experienced excited with TaskUs. I to bring of them. be leaders of working All to are passionate wealth who

wrap operationally strong attract outlook a to in our another team operating sales amazing from I up, and continue environment. the financials With tough had talent the detail delivered to remainder for it Before for performance I go to hand that, through acknowledge to in want I’ll our and a tremendous clients the quarter again of our the Balaji, to year. bit company. more the over provide We

Balaji Sekar

and year. and are expedience digital quarter $XXX.X results a we our of of items generated issued Thanks, in We attached the note year-over-year XXXX. the In specialized XX.X% relevant we measures third over on-demand press are Bryce third million, each third customer the that for I’m here everyone. and some transportation growth quarter growth release Please afternoon, total an e-commerce these reconciliations going of growth the from financial for earned of revenues to of the our offerings. the prior discuss good to increase today. non-GAAP fuelled retail of service saw $XXX.X offering by our and In million rate three FinTech, XX.X% clients. quarter,

revenue and versus top our of continued also QX, million we QX of in XX.X% from year-over-year security our business operations grew client. revenue million. revenues XXX.X% AI saw XXXX for business $XX.X Our content growth resulting $XX.X In grew

by the growth of that entire our was expansion However, base. exceeded client ongoing

was with our result, with XX% XXXX below revenue the just a QX, revenues. approximately As of largest less but client XX%, concentration our than flat compared

client Our second was in of XX% our XX% QX. revenue largest down from

top XX XX in and both XX% and quarter-over-quarter. and and of Our clients XX top clients for top to year-over-year accounted Revenue concentration the revenues XX% our quarter. in XX improve continues top respectively

and percentage by mainly and Our of cost XX% a service of of the revenues XX% in than location our Philippines, the XX% operations is In Mexico. specific rest in rather the margin the driven primarily result, the India as line. world, service by revenues generated our provider, quarter, from the and of our from profile the United a we of revenues revenues driven our States our in of as which services geographic third

of cost incurred the as the to model, of increase as primarily we to to year. revenue third The XXXX, as quarter in a by QX to we costs continue well percentage expansion virtual a operating in the was driven we charges was we service as XX.X% that incurred next in leverage prepare the Our XX.X% as year. prior office compared additional return

move our ultimately to overseas delivery This and we U.S. operations we of given teammates pressure ability for to attract a were we’re in in dynamic should increased office Net-net, and the is most model, third expenses our of be that talent This move SG&A percentage margin significant clients or overseas back a us quickly is XX% our seeing the of is As revenues. we to see $XX.X XXXX, our will quickly ability the to In an us of is is cost I also note, percentage benefit slightly. meet service higher needs. our our differentiator the this for more ramp here. to globally. a pushing a wage pressure environment think million revenues of as quarter client’s profile greater

XXXX. $XX.X $X.X initiatives. was we quarter of and public year third in compared date As I adjusted to grants earnings net million or included full SG&A we any By related earned $XX.X EBITDA we quarter accruing expenses driven were incurred severance the the stock public discussed XXXX, income grants, the $X.X we QX XX. for the termination third The of was of new million, also which expenses to compensation XX.X% third secondary quarter and In and adjusted only share previous million on adjusted of We company which awarded by June earned company. revenues, the the the EBITDA of of quarter, including earned competition QX income lease $XX.X as when on the in compared investments period, is equity million $XX.X as million XXXX in of quarter margin a In of and of reduction of million in last digital third related million in quarter not ago XX.X% EPS for margin adjusted as incurred public $XX.X to a expenses full call, IPO we QX and million $X.XX. company relating XX.X% were Adjusted stock of costs. primarily was $X.XX. margin costs quarter from adjusted in offering. in XXXX well not and a comparison costs the was net $XX.X in per a quarter expenses transaction some this

million. June with that cash Recall of QX IPO sheet. million Cash to of compared phantom September $XX XX, of million XXXX. proceeds received these quarter in to equivalents Cash as and Now moving in the million third the cash at on million the of QX the of the $XXX.X were balance balance were was of included bonuses use million. $XXX.X June proceeds use IPO settle for $XX.X earned $XXX.X quarter a compared that generation balance of cash operations of of $XXX.X and XX end third in from We XXXX. to XXXX, the teammate share as the QX in IPO non-recurring

operations accounts just quarter’s phantom bonus from the discussed I expense cash this increased $XXX.X from million XXXX. flow million reminder, increase receivable QX, by a as saw receivables related and as stock QX briefly the of growth. result ARR of impact of a IPO QX our strong the discussed. revenue on We included I in strong revenue in again effect As that $XX.X of In growth

do XXXX. new order and a new cash to reduce onboard process clients as in to our We are expect implementing DSO we

Our for I quarter total head $XXX by At as increase point, range was the QX purchases driven plans. compared of million increased of in $XX.X of facility to due to outline computer to XXXX. the equipment at the the office anticipate capital to third XXXX of $X.X this expansion, midpoint. in revenues year be and our million financial to expenditure million count increased $XXX our in the growth to of primarily The of the the part We will full year. year-over-year remainder outlook XX.X% representing million return

to up adjusted QX, portion above service earn development EBITDA market a our basis associated to to in will and will year expenses expect we year-over-year of XX.X%. our new public on as XX% margins investments company drive in ramp expenses note We the sales growth returning our well margin office. in that innovation, our Also, a teammates with of long-term. to digital the continue which offerings, be EBITDA to adjusted I as impacted of will full continue by a XXXX

to holidays has the QX in typically number quarter. costs of slightly operating Finally, higher due the seasonal

GAAP we smart This non-recurring XXXX XXXX. incurred an the expenses this of first tremendous half net the In from teammate closing, overall shares of year bonus loss rate nearly a and this in due in year. expect we one-time driven to was tax growth benefit have to the the We by doubling related phantom our year. to QX IPO had

world-class growth head expect XXXX, into deliver revenue we and margins. we sustainable As to

XX While going we your or we it aren’t that ability grow to the next back giving medium-term. we year And a our will for formal you. in to in I’m I reaffirm about hand remain at confident outlook to take the Thank yet, before questions. Bryce percentage

Bryce Maddock

Balaji. you, Thank

I Q&A, teammates Before want we another TaskUs to share to get story.

Our that teammates in beyond of bed. our we Philippines rushed walls their the our well very of in health was family team deeply September the at based leaders do father and goes the about country. spike are key for serious was We four him the medical the to to with his of In the Chris’ here a And commitment discovered and TaskUs. everything offices. our care members. out father provide And unfortunately attention. the Chris, of of one our ill a COVID This the hospital was to immediate unable middle hospital co-workers

Over next COVID, to was knew rapidly breathe. to that Chris he father’s struggling and had response few fellow the supplies texted TaskUs deteriorated in for help, team. teammates for of oxygen his hours situation our Chris’ stockpiled

family insurmountable the of us facing Chris program, TaskUs ensured health remind bought I’m Stories our father away. by quickly open our With the him I’ll acting of afford quality the to Chris’ team. able desperately and I’m support say I without responded these to Thanks time to investing his family Chris strategy, is session. not team do. like ask to needed. question-and-answer business operator brought further his right in This home his back father the of debt. and supplemental father his recovering but best to the incredibly for transport the also immediately proud insurance Chris line TaskUs team that part the and the hospital people that were so a Our in that, only to father happy to is care thing am his for proud and to oxygen the father. which and Operator? today. Chris needed required

Operator

Thank first from VanVliet with BTIG. Instructions] Our you. [Operator comes Matt question

open. is Your line

Matt VanVliet

and congratulations in. two just for quarters on my Really continuing thanks guys, run on taking job question. that nice the Hey quarter

So I existing your question, guess, two-thirds question came logos, mentioned that the couple from part here. you of maybe first signings a

smaller, been? net been you several in then on in or but has terms over with investing earlier line trend So overall greater. quarters potentially new opportunity there the long-term are your one, TaskUs last much is Is Thanks. where of your And the sort finding what higher of that customers, are where customers mix? cycles in you landing secondarily, to and the that sort capabilities their in we’ve that is life the of

Bryce Maddock

for Yes. Matt, question. thanks the so much

set sales XX% towards as and from first that’s We see XX% about logos. seen half few sales we’re trend clients. from to basically in saw and as customers existing sales So our we’ve into our of year continue A I with we’ve existing coming over And And definitely of XX% came our ago, from of this QX of of coming clients two-third expect obviously coming convert a clients. existing far new existing customers. coming new the of existing sales trend that came from with know sales that from our more what XX% years sales, of expand. to versus we new from working as continues seen our that exactly the logos

embrace outsourcing. a As goes, far seeing a are as the trend definitely broad-based second we question towards of

to this think which new rapid are all and being of is remote. forced digital driven and ways by rise of – embrace disruptors, has the pandemic, us COVID rise working the I the increasingly also

is in of identifying and So very, generation it need I focused they more early on to companies become The going that disruptors of scale. to services at deal with stages. difficult to the one are in will delivering TaskUs, that specialized getting say does challenge the digital order we’re larger, very the next

built us and of a for by five product a A that lot in as as with few Series Launch of called perfectly who work companies need the TaskUs, success We we’ve companies to stage product. enables which with full-time resources. had have sort It’s

Matt VanVliet

a success embracing developed variety ops group And proven really business. of yourself some Are the models so larger already you’ve it your there? engagements then, Or AI in of finding just that potential specialties tremendous and ability you train is of to effectively? Great. in the

Bryce Maddock

demand finding autonomous are a lot in to gone artificial expanding focus of from looking the with is to in who growing. various work across train intelligence space, of the verticals, the applications We’re the where vehicle we media We’ve other in own doing models continue their really themselves – space social because clients beginning to and are working situations.

So certainly as the to expand services continue applications of will for well. expand, training artificial the intelligence as continue demand to for those data

Matt VanVliet

taking All Thanks right. for Great. questions. the

Operator

Thank you. Thank you.

comes Our Puneet of next Jain from question JPMorgan.

Your open. line is

Puneet Jain

for Moderation question. much great Content the so given last in on see What for you given specifically news outlook client the Thanks quarter. a the over taking for months. the my content does largest you of – for flow near-term all few that new comment you? has moderation It Can outlook business was been mean

Bryce Maddock

question. thanks Yes. the for Puneet,

security space most general. but on customer, comment regulatory essential in any AI of social talk about services regulatory seen social European to regime exists facing increased the scrutiny today There probably And States. and media in providers. service like let increasing from regulations increased demand United for the we’ve operations individual can’t pressure lead and advanced here in Europe. media me content we obviously Clearly the specifics So is

to their is in these expand as the to social investments in So likely our services. media belief this space our scrutiny, continue clients that face they’re

services, more growth. benefit our content more that, clients I’ll Given this stand best-in-class and provider from services. us us of also security to as turning for we turning are we’re content – to a finding security reputation say

So marketplaces. But the apps, to and these today, in three travel companies the services provide far of secure purchasers themselves the by generated largest and are essentially we listing are shared social services in these sites, and dating job networks anywhere media world. needed, content particular, services is largest content social e-commerce the today being

Puneet Jain

rate this that’s then Thanks strong No, we Got expectations there should very to terms rates? how plus to think or growth we good for with in know. higher is year? year of than any different that. and if the at growth growth around exit year next should four seasonality of usual year, that XX% you. second And of next about rate seasonality quarters like phasing expect like across XX% next Or

Bryce Maddock

on And about question QX company’s QX take had we sales seasonality. and I’ll were Balaji the sales me in quarter par when and which growth strongest the well Clearly we’ve that basically year in an above set QX incredibly the with another, strong quarter but XXXX. we is then had look the ourselves. our quarters history. the Let have talk also we one for amazing on targets at

at class And so I a in think world see of XXXX, growth next medium year. say that or well will a revenue in stage And margins. to In we’re seen our the kind term, touch into above beyond we’re Balaji, growth maybe that XXXX. clearly, sets then we’re grow we’ve the for and sustainable you the to And expecting not XX% in stage outlook. to I ability seasonality. to on confident But formal give very want so

Balaji Sekar

Bryce. Thanks, Yes.

midpoint we X at quarterly year-over-year and percentage. the currently for QX, forecasting So of XX sequential percentage growth of growth are

tends QX. like days is and working our in and to does will provide mentioned, challenge when of full seasonal will having tailwinds. additional additional demand While important our see FYXXXX huge QX In two generally QX, swings we e-commerce this detail compared It against not on has call. QX to And QX then delivery we at QX major Bryce we to the its fewer QX lowest. in e-commerce outlook see in business, that is clients. lesser seasonal and some food us growth note have degree work delivery to from from also a

Puneet Jain

Got you. Thank you.

Operator

Thank you.

Nolan Our next question Blair. William Maggie comes with from

Your line is open.

Maggie Nolan

Bryce, couple of becoming grow you be can either given years global are little Europe how a Congrats. internationally clients then can commented with how here. are I’m large increasingly in wondering Europe, hope your the hope next can or you. you what’s on Europe so the bit global. you And you fast or Thank already that that grow you confidence

Bryce Maddock

this over huge to incredible explosion our that client going of that growth seen few really we’ve Thanks, Maggie. And in expansion confident Europe reason, next we’re we’re base. for see Yes, years. amongst international the

said, meet travel with with and happening to across lot amount folks tremendous down able As London a so the that’s few I London of of I innovation was got that signed with, QX. There’s in sit and and just of just deals these continent. chance the Amsterdam I a clients. to in A we to our

in launch we’re really so in site Europe excited And XXXX. to third our

able that as be be could today. to United not think geography a to Europe the as We’re delivery I is going big States specific guidance, provide but for numbers and us as

Maggie Nolan

for And put the on growing the release of consider you TaskUs a where little in are kind good. Can in versus any Philippines? about that Very press from offices want our And delivery grown any growth the you mixed headcount to fastest prospects Indian bit mixed in have you in medium-term. And shifts substantially should the margin Balaji, there point, that models? history. implications India that talk land we if longer-term then country

Bryce Maddock

Yes.

me start. Let

a has built. culture Sapna the in incredible incredible a I that the us think country over leader, created India created what there It India potential has for lot over an got be medium-term. in Philippines our me of decade We’ve as reminds ago. Philippines Bhambani the to and we what large that team is the as we the

on on TaskUs. the Balaji answer region the So margin for I’m I’ll impact. let question incredibly bullish

Balaji Sekar

from margin to for of growth a India Hence going is be drivers are to us. accretive And very the mixed perspective. key Philippines. are geographies Maggie India in margins And comparable Yes. margin

Maggie Nolan

All Thank you right. both.

Operator

of next from you. Bank question comes And Jason Kupferberg America. Thank her with

Your line is open.

Unidentified Analyst

expectations are be Cassie the Is the hiring of What that following-up in that? year? there Jason. trends is of? with on terms previously. well guys. Thanks. we as This what seasonality And kind your question hiring for I the guess, of of just expectations conjunction for attrition remainder in your Hey on aware should are

Bryce Maddock

Obviously, had we lower quarters really the we rates same three attrition We’ve lower for were But challenging to is depressed attrition XXXX market the roughly we’re this at have in the Yes, more rate to of XXXX attrition that what I’m on Kathy. year. facing is team labor given than a Thanks remarkable a in rates we be continue their lower globally rate in expect that that significantly we of proud COVID focus of XXXX. or our environment. that at the an attrition accomplishment. than artificially rates the hire that first seen to result year. the in considerably saw the as

hiring employee So proposition we SLA we’re to new our In with now some since fact we ever our they very of aggressive teammates, pay more net one have than XX%, have. that an begin QX, despite added clients we’ve in value off timeline. seeing made the that on-time the did that X,XXX investments day hiring

we I historically. So more say I’m proud and challenging bit has very of we wage have market the been a in accomplish team able environment. our higher here in will expect a see U.S. this to to at what the level is pressure than

pressure. However, take back, a we’re that company wage if not step only we the facing

hires. pressure that same Our clients internal are facing lot for themselves a

look very customers best to and we’re they in positioned our as offshore well deliver where where that spot they’ll are believe that models higher embrace nearshore we be world onshore. the actually to our the will than so hire the And increasingly and in gross that margins talent

Unidentified Analyst

verticals your engage kind additional I or outside you’re growth I you’re of mentioned your that. really disciplined ask or guess follow whether that’s I you know on use to in in if That’s Thanks. willingness of M&A, wanted opportunities your helpful. core some appetite just of it so? up, to right. sort of update prepared remarks a get international an And an the All Thanks. very you could to eight that Would seeing accelerate or on

Bryce Maddock

Yes. Great question.

place SVP additional trying customers. So geographic our very we’ve TaskUs on where here to and is really additional absolutely possible our focus compromise we and as they about efforts one And will absolutely or And to lead growth can [indiscernible], named we’re that companies terms TaskUs. are delivery really add of not where to accretive who’s fantastic. sell culturally margin on find hired getting specialized that we customers be are an to serious we to we additional need our M&A, locations, similar as profile, to that focusing services in can

can with which with limits we that in can do – do So we transactions. universe which the

market when finding quality very high price focused to a very We’re we assets and pay ready we’ll on be do.

Unidentified Analyst

Thanks. helpful Very Perfect. guys.

Operator

Thank you.

Our next question comes Baird. from David Koning with

line is Your open.

David Koning

gross that mix those but of piggybacking sounds little I look in to and really benefits, how offsets the balance kind it last expected what good all, And like of it? like inflations best negative, and guess, a go margins, the a wage QX, growth Is margins. of are you it And maybe is up bit. about seems a job. India to first are despite guess, of future, ton think that? managing of and on as way I Good question, a margins Gross guys. net little kind the of the we Philippines, the are in Thanks environment in an wage of inflation,

Balaji Sekar

Dave. Yes, I’ll take that Hey, question. thanks,

future. gross in shifting that’s in a from that mix the client helping annual have from into So allows the that terms cap. of inflation margin co-op a of wage point like for to on way terms the a protecting price is important And us one thing provisions our margin majority an is up perspective of is perspective, increases yes, gross more contracts based

an price enforced headline can given we these volume, are rates for additional are and the increases we than but I that wage trade other this cannot any annually time so increases, cases increases around having remember. some year easier increasing in And time

from last ForEx third, I appreciated one the the and peso third Philippine So had relatively flat. lever. while lever get a that year is probably is the perspective And stayed

depreciate starting and to that going see see in we’re we of So that trend QX forward. kind

from also gross a to is margin So be going perspective. helpful that

David Koning

you really create And helpful. just ability just how like to mean, to it operationally, you platforms retain explain of move you’ve to guys volumes volumes right. done kind kind everything And have different, split you. split about from seems or things of and like is bit other are anything. not how I for guess it that’s working. a hard seems I away about like all and your move seems to some Got doing hard Maybe that, it? Like, That’s or like little really you either that with other vendors clients

Bryce Maddock

is to It degree the specialized our deliver. Thanks generally that’s customers. question. And most brings that really sophistication need a area for service identifying of for about a of the difficult that is Yes.

market with a provider, to as whatever who can be clients. fairly work, needs. And our on to so wants sophisticated they’re often functions, get more TaskUs with start want moves initially we comparable but up they to be comfortable We clients’ more outsourcing our the journey go want outsourcing. very with the that basic And

also mentioning browser suite that lightweight of tools, top a tools based our suggest automation teammates actually our large our CRM automate there this cases can that enterprise improve successful of been building combination experience so on huge our chat team client security. next we’re We’ve Instead, that of that our front to on systems best many, actions investments focus isn’t technical extensions content and are built point made. we’ve approach, sit many on Using think of lines technologists the And where I doing workflow. of that manual of incredible got I we’ve a or that teammates and of workflow we’ve and systems. the the it’s worth so building to in systems portions an it’s and or bots, teammates’

it’s that sophistication the So of level when I think a enablement really combination comes of technical makes that it difference service, of to TaskUs.

David Koning

job. Great Thanks. you. Got

Operator

you. Thank

James with Morgan Our Faucette from next Stanley. question comes

open. is line Your

James Faucette

that obviously you hiring. one lot an into much. of customers, of seems you’re being the but and and our very in your of is definitely departments IT especially you having work of leading your surveyed – trust things And and wondering like prospects, a guess, if take you Officers, in we hiring additional on a success rewarded, doing that that said you XX% I with it from if can when of Information right generally. Thank have And to I’m shortages surveys, advantage fits had that lot planning most perspective that I you’re now they is recent them, one to think approaching both how Chief that the

want wondering just into to factoring catalog of be thinking that to I’m you how about capabilities adding your areas is So offering? and TaskUs

Bryce Maddock

opportunities Yes, of a done us engagements James, approach to number clients their a We’ve with now it’s our employees in these some seen great States fact, very successfully. rebatch we’ve very the United locations. and question. in of And

our talent. value think develop the And been speaks to in and attracting so I retaining success that proposition both it able to we’ve employee and

to be a growth in that’ll the I big for lever think us years come.

James Faucette

guess, trajectory insight but is wondering great, understand if And across then trying can of I’m us you really into And business what the a give you different – to bit drivers is sustainable what I trying assess accelerate things are obviously I’m segments. growth little you’re watch to accelerate. the how key perhaps what to And to that whether demand are and now. continue, is that continuing can the growth can you’re or trajectory that seeing it’s can right

Bryce Maddock

that deliver sourcing as is lot our more that become sophisticated. Yes, be that high should today a internet We ultimately, about, three it’s specialized if growing think something means I too. play chain growing, the value space. And we’re customers the and we we by do up services a way delivering space to the growth moving

that that the be are to our customers do going services next-generation identifying demanding. We also by of

of space where content space lots incredibly talked with introduce us we’re clients our existing our service gets So FinTech the the saying, are NFT your the customer in adding in that we’ve non-fungible or space. like – then some new I’ve laundering, of crypto area lots financial of service lines at work. And looking and some new of ahead is doing a vertical currency existing money crimes, an been of about token we also and offering of of can lines, past. for that We’ve moved exciting It’s customers. any know customers into security what

our staying are So then going demanding that step success, services an Customers specialized for our answer I the ahead, them. be to and to a offering to continuing be And going deliver services. specialized to identifying our growth think of the effectively. need based is question, the largely developing customers next-generation on

James Faucette

it. Thanks, Bryce. Appreciate

Operator

Chief currently for closing I’m further showing to TaskUs remarks. Co-Founder And questions over conference to Officer I’d Bryce the you. Thank like this no Maddock, hand and back at Executive of time. Mr.

Bryce Maddock

have moment on all to look our joining in our year. second our books. and forward another to call take annual thank our is our earnings want Thank us we much. very teammates, now humbling for clients, journey. the shareholders I next seeing It And this call you earnings you on to to so early

Operator

This participation. your you concludes call. today’s for Thank conference

wonderful Everyone, now may disconnect. a have day. You

TaskUs (TASK) 11 Nov 212021 Q3 Earnings call transcript