TASK - Earnings call transcript Q4 2021

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Operator

Good afternoon. And welcome to the TaskUs Investor Call. My name is Olivia and I will be your conference facilitator today. At this time, all lines have been placed on mute to avoid background noise. After the speakers remarks, there will be a question-and-answer session. Instructions]. [Operators like Katz, now Investor President introduce Relations. to will Vice Alan of I begin. you Alan, may

Alan Katz

And afternoon. Quarter call. XXXX Fourth for and earnings Good you Year-End thank joining the TaskUs

website and call Sekar, release, Balaji Financial which ir.taskus.com. our on management Officer. at our found Bryce Joining commentary TaskUs, of Chief today the details can section and on Officer of be the Maddock, me of Investor earnings Co-Founder results Chief Full are Executive and in the are Relations additional available

We and this on call investor note also company's on supplemental website, our the website. information this of webcast corporate plan to other post the including an section Investor is that call. presentation being simultaneously following Relations materials Please

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

very the on differ place subsequent SEC's be filed cause any may that be on undue actual Relations And SEC a the well except with not them, or based as otherwise, on of including of financial statements Investor the in found supplemented with section which periodic to The forward-looking forward-looking Factors accessible results obligation Any contains website, XXXX, conference statements. on should You in is reliance our following TaskUs prospectus our to from law. website, responses can non-GAAP could are updated XXnd, by as or and October as new assumes forward-looking questions, result revise filed discussion statements XXXXXX. FTC. no measures. for developments made call, reports as as we current today, required expectations whether of this with to the update in

of our each website, these financial of section available measures please directly @ir.taskus.com. non-GAAP press see the which earnings IR reconciliation is most metric, our the For release, of comparable GAAP in

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

Bryce Maddock

you Good very was XXXX afternoon strong everyone year TaskUs. you, us. and thank Alan. for for joining Thank a

delivered the team once another in again set ourselves in range in that we of Our the came our growth high-end year quarter fourth growth of and for XXXX. up solid above guidance

results, group healthy. our to the events our of I teammates Before up to year. have health TaskUs teammates the ways. one-to-one mental financial The XX,XXX take and of and most are acknowledge us everyone impacted. important work want this the a wellness in I across In global in support and teammates great completed resiliency safe recent pandemic dive response, Many with nearly in stepped keeping our different teammates difficult They our seen in our At company. team into sessions minute counseling globe. during team impacted world the our to asset our have TaskUs,

them keep them is safe. highest priority and Our to support

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

top-line maintaining XXXX accomplished diversified the for highest EBITDA again, XX% million growth the of million full-year, the an We we year revenue growth proud this adjusted ranges. broad margins For achieved our will off guidance over is I'm and top XX.X%, EBITDA, a of we in we by that to above in year base. industry. driven for the The the an while what margin be a of understatement. adjusted theme end say and ended among To $XXX.X with client start. $XXX.X a strong be that in the are year believe of would

we XX% at Balaji guidance a our grow at the of to detailed guidance in range. revenues XXXX, midpoint For organically our later call. expect the breakdown more provide of will

now, turn to back For I'll QX.

new We with quarter. signings. particularly our big verticals. digital levers, In on the clients the investments grew across customer space, delivering in experience, our continued and brands. protect progress two we to specialized current growth revenue our with been businesses well high-growth new the five in area to expansion by levers these clients make and A high-growth growth expanding XXXX, QX compared our driven first success past great this executed FinTech has clients We adding part where XX% to we're and this grow their services of existing need and currency client by across by driven crypto

driver and delivery evolve These clients. being and handling We disputes. continue to grew support work, business also and customers XX% on expansion complex food compared to by with critical to dedicating and asked Security models clients investigate as and XXXX, QX our saw Content clients. more grow premium existing take rider volume we're continued ride-sharing in well driven with manage revenues safety as teams growth largely lines, to fraud by and

are believe provide leading the be rest business currently of expect these than this volumes of a opportunities. We concentrated and companies meaningful Content Media highly growth other these companies Social two bit service services to to from more companies. one amongst the still the growth We Security represent as lumpy three

dating clients, Marketplaces. We apps, have NFT continued to eCommerce and grow sites, services other our as constant security with new exciting such

operations to continued by and workers and been we revenues in varying live a and gig new expansions media, from quarter, sets this grew collecting be developing TaskVerse.com in from XXX% We in but micro across that the with enable QX. year-on-year use clients an globe for This to a large the annotating the platform perform vehicle datasets sign-ups. our will projects, believe platform the with eCommerce case common will AI investing heavily and high-growth platform we're tasks tremendously TaskVerse. AI most machine is tech social learning for We've in skill clients. company. offerings for the our crowdsourcing what see process in our primarily autonomous call driven Operations Revenue align by AI better grow AI represent and to a of as community breadth and of existing rebranding operations air demand FinTech, clients Finally, operations, delivers. to our now to excited accepting Services nomenclature. We're industry

service will be as described that I which Going to refer same we've of Operations. forward, types previously AI will work as this the up of Services, made AI

signings. a accounted our of signings largest our our space. We QX. again approximately clients. for to Growth crypto Moving in signing clients in with existing player X/X the This quarter in on major is currency of from client FinTech one had the

We following large some XXXX. this fast-growing a providers, QX, services marketplace, to support increasing an an providing will in in both expanding outbound genealogy We and for a of inbound analysis work we health to be rapid triple business. customer from expansion clients, a insurance our signed roughly the provider, their and client client, online our added growth and security NFT providing including blockchain meet for cult-like their them with experience digital that with health new institutional today, do transactions. and clients great expect revenue outdoor retailer needs. a and We tech largest for We're patients

the one first in companies Finally, contract we world. with landed tech our of largest the

rate service Here, client we're tremendous function a technical teams. our delivering designers, and and them a for of sales We Overall, scale XXXX by learning a business to the and rate development learning with helping total their new of win XX% XX%. year instructional ended year win and client specialists. writers, new was

in we them a our scale clients retained retention Our up for because and to revenue a rate XXX% XXXX year aggressively. net was help the high-growth from XXX%

new into As of clients. we we opportunities existing both with strong a head pipeline and XXXX, have

want I Before largest we on update our an client. move provide to on,

said the past, but largest is strongest in client client, our only also we relationships. be of this client to As our one continues not

discussing we and our with did Philippines to a in hundreds of Based to fact, them in delivery India. this prior our the other optimize on began to we project operations of quarter. roles business this In global client. for analysis, plan QX more year, January this in than footprint In we shift any

be project four begin is we will for revenue and the QX of countries before will services in globally the teammates today. growth provide We and any year-on-year client in supporting which currently. given transition this year. do XX% to we to this them the them have completed supporting grow continue changing client to But Once at complete, end teammates not in This teammate more with this than the mix, have we geographic expect forecasting continue our the year revenue population from the client our of we XXXX. end all from growth are optimization outlook

a eliminate client to note to most to continue do important this client for as that our supporting demand having clients. whose broadening robust some be largest across exciting any our also to result support not client be with the expect will fast-growing of move transitioned, will Teammates we roles client future. this this base, jobs today, anticipate of transition. our to and It's We foreseeable

the We for a year. job year a the at diversified foundation XXXX did As portfolio clients. of great of we I of a start last across call, be high-tech to the said growth growing laying expect this

more had million in at million to or $XX $X including clients, we doubled and For more example, XX $X over year. or XX revenue, year whom for XXXX, $XX clients XX eight clients XXXX, in number we in revenues a the in million over to year services of clients. delivered million In a we grew and clients a

we our clients also or XXXX to seven services. two specialized In more our continued risks offerings. our lead our segue that largest the of business lever. Expansion Fin is top of specialized of of our and in We top in this In QX, we number our new That our to XXXX, to deliver number this Head line. XX clients. clients. increased In than to XX expand XX investments of fourth of our crime nicely doubled more appointed legal We use service third quarter. into former the growth services

services. signing deliver opportunity The our to also compliance a our now offerings. a In began experience capabilities expanding for to thought natural by continue for our I people to and our crypto -- excited teammates. expansion as born to practitioners clients addition We ability We training FinTech and turning broadening area of and ahead. have we this is the of and development risking go-to-market of multiple train our investments to content. to based experienced suite strategies, strategy also us We're hiring tremendous see in our these own broad to of out services. that them service develop leadership their maintain This mentioned and learning knowledge across learning their experts team analytics, learning lead and learning their our helping earlier, instructional clients modernize We're a currency manage see and enterprise. We're

this offering branding learning announce or LXF. publicly experienced We this will new TaskUs it quarter solutions as

ladder, Japan the and U.S. During into Romania the We're on progress expansion. Malaysia, fourth Poland year. geographic expand Latin and quarter, adding also expanded in India, into this current our geographic and we our in and also Philippines, America. made to the We growing footprint, fourth capacity expect

look specialized in note Europe our guidance We're M&A accretive in to M&A, I've important culture. interested and rates, growth growth our be that driver, we to most We're completed are importantly, today. add or fifth M&A XXXX incremental particularly companies will our long-term any capabilities. seen terms focusing in to at we're targets, opportunities. on our to some Lastly, interesting in growth deals of revenue margin the accelerate providing and our to that service continue to It's

years these growth XX% medium-term on on broadening for of progress the us to above high clients growth growth come. and Our or target five levers deliver base revenue positions our our of to

is equally was and teammates QX, talent industry, hiring Attracting equally heard operations. impacted the clients key, we net retaining the TaskUs met important. but great challenges Across XXXX our and talent. about in retaining as attracting added of by success XXXX is talent requirements. our In new Our we've approximately

for the XXX voluntary after rate attrition days employment of measured XX.X%. year attrition Our as by was

above rating our of the Glassdoor X.X the X.X Our year, stars stars from down was last but well at peers. end quarter,

XXst, from of TaskUs XX% teammates As safely around approximately continued work globe frontline of December home. to the

teammate teammates variants, offices of a to population recent the begin A return starting global QX, to to home to the is to some from but cautious in likely our here. for continue given we're work approach portion a taking expect foreseeable XXXX strong future. will start. our off We

and deepening clients. for. innovative driven our geographic delivery base rely of specialized services Our growth us is clients the being a on We're broadening by footprint expanding our

to range. and it bit provide XX% midpoint of the for With over guidance year our We that, are hand financials the well-positioned to through the outlook to at more and in Balaji our I'll a growth deliver revenue detail organic ahead. go QX

Balaji Sekar

of increase million year, of of I'm and $XXX.X the in In over XX% note quarter Please million specialized offering remarks fourth three Bryce, leading items afternoon of press earned over on growth are each XX%. going year-over-year earlier relevant In today. an that XX%. million, $XXX.X growth the and DSOs of a financial of fourth good our of total rate $XXX.X a of Thanks these we saw our release the We quarter. are revenues customer non-GAAP to digital everyone. generated revenues to the measures for year-over-year my total the the for service prior issued attached the the to focus experience and fourth year for growth quarter, we some offerings. reconciliations

the XX% to top even $XX.X two diversification at revenue revenue. of our our Content Security growing million QX In air clients rate. to faster revenue QX, revenues year-over-year, XXXX, And our of grew continued million. in for an Our clients while We we our business XXX% grew compared year-over-year of with with $XX.X base. business resulting see grew of operation rest

grew with result, with concentration, our approximately XX% largest XX% revenue our revenue improvement concentration client this in by million. quarter-over-quarter in down $X XXXX. a was XX%, our in As and QX largest from Even revenues client

revenue, our helping client Our quarterly second their slight of previous was global this and our sequential X% cost of XX% result from the in the was This down quarter. client success largest structure. footprint decline in optimize

for revenue growth this and revenue We XX% QX XX expect top XX% growth continue prior revenues States, year. of QX our In Mexico. top and XX% the mainly revenue clients of see of our in XX% revenues Philippines, quarter, to sequential and the beginning fourth year revenues world, trend rest the from XXXX our XX of our we and XXXX, to the respectively, the XX% as of operations to XX% driven continues. and of the and accounted United with throughout In generated client XX% diversification our in return to the of by in our sustained of compared should our in India

quarter was depreciation XX.X% of The our in Philippines to year. thoughts in reduction XX.X% cost as the of driven In a was service terms of of in in year-over-year prior percentage revenues, it fourth primarily the compared service the by peso.

as many million be revenue. a teammates our beginning move with mix This to fourth XX.X% of our in In be $XX.X as expect or living service the of in revenue. back G&A to were to QX cost expenses associated of compares It the increases and price flat geography this in XXXX $XX.X We the our of expenses incorporated to XX% by quarter of G$A contracts. of million office. of or inflation percentage of roughly will cost offset XXXX revenue and our wage

is not related well compensation a which approximately transaction as quarter Our XXXX Stock-based company we as XX% company. revenue. a expense, stock-based expenses, full incur expense cost and of last XX.X% and private included stock-based compensation $XX.X QX million as public did margin revenue QX adjusted was of excluding year. and adjusted same been in EBITDA compared would approximately margin in Those, million XX%. compensation We $XX.X the XX.X% costs, of to have had EBITDA quarter transaction G&A

digital cost offset growth investments initiatives. costs revenue increase public the Our and service more lower and of in company than in

the $XX for an quarter achieved the XX.X%, the Adjusted adjusted share margin prior-year for $XXX.X and EBITDA adjusted was was of million, By net both earned $X.XX. guidance per EPS in in adjusted of earnings adjusted $X.XX. income ranges. adjusted of end comparison, top we net we our $XX.X of full million For year, million and period, EBITDA the income

adjusted was $ and For $X.XX. net share adjusted the full-year, million was per income earnings [Indiscernible]

Cash revenue September of sheet. as to million the million and were quarter by QX flow cash equivalent cash compared and our onto growth. in December moving Cash as XXXX, bonus $XX.X million operations offices. was $XX.X Now was $XX.X of balance our fourth and from investments of for driven XXXX, the XXst, with in by a in offset of The compared our and technology Capex increased infrastructure payment $XX.X improvement DSO receivable year-end with associated accounts million. XXth portion balance and

XX% Our in XXXX. throughout reduced this DSO from that approximately our of first DSO leading see. of by percentage days half QX that than XX XX to to one to QX, a would improvement improvements the see In in order-to-cash increased of higher we month receivables revenue for as continued of days as in driven our the expect in in-period opportunity We or a result revenues XXXX, growth, unbilled the revenues process were process.

immediately our This of XXXX quarter payment to We $X their of or also began in of was negative client their per a to pay to to X% clear, X% led compared capital expenditure client invoices has be XXXX. in ahead revenues that working fourth or or pay a to their invoices almost agreed upon terms. million had paying their on million large terms. impact in this increase capital revenues that contract Of the continued to QX $XX.X

full-year, primarily of to as slightly expansions the with to up X% equipment as percent increased driven plans. of return of million the computer Capex revenue revenue Capex facility of was and a office For was or by fiscal part compared headcount due $XX.X purchases our XXXX.

be XX.X% relatively anticipate year-over-year geographies the build and $XXX We billion, full point, We million year representing midpoint. in $X rate the year. invest the of at financial to new remainder will revenues the technology At XXXX flat systems. a expect to of to we would as growth outlook our revenues in range for I this in of continue be total of Capex percent up that XXXX, outline as

expect earn XXXX approximately We adjusted to full-year of margin EBITDA XX%.

in of million quarter million $XXX at the to we representing $XXX.X first the XXXX, year-over-year range For revenues midpoint. to be of of XX.X% anticipate the growth

We expect to adjusted of earn EBITDA approximately XX.X%. margin

result saw of in increased a spread we Omicron, of absenteeism As January. the

normal February, just While our in impacted impact guidance in will levels This million. attendants returned the is reflected $X has provided. to QX I QX revenues approximately be by

at also of impact quarter. any both of the days fewer of we QX working midpoint. growth compared over reminder, a expecting other As to has Despite impact XX% the are items, when these the

we quarters of in have work In peso the the of Over will currency as the margins, continue we're year-over-year appreciated the dollar company office. compared be and of with that's to year. we the inflation as which their our price from positive EBITDA of by terms to to in cost expenses contracts, certain moving to anniversaries. offset a expenses contracts clients with time, base associated through first rupee will and teammates a year two benefit of see the additional last escalator our impact The living many adjusted year. the comparison a margins expect returning versus of would geographies with certain geographic the impacted from planning offshore for mix Also, our also public reach portion

going or it or at year-over-year back XX%. you. upon we're to adjusted organizations meet order greater to well revenue are expertise, sales to All-in, your And invest before hand very our our and of and margin medium-term and continuing as targets take service year, in client to EBITDA and drive to well our Finally, this Bryce line XX% positioned we growth. growth deepening questions. above technology, targets as revenue growth target our I'm developing margin in expanding delivered we Thank

Bryce Maddock

Thank you Balaji.

the work our Before going TaskUs share that Janice Stanley in Q&A Typhoon parts two customers was a Lizzie's typhoon. it Bohol. impacted ensure When was XXXX, site, as teammates. site Voisa the the playground, and Odette hit at Mediator by Bohol. Philippines Mediator wanted home we Jenise session, clear and Odette company (ph) our are story. into in In people December devastated site I rallied and safety and our to teammates and of well-being the move (ph) to and became especially destroyed mobilized our who to another of we teammate's our

to grew day phone. lost provided us team Mediator, food home, work. Janice During were their our report both team the concerned in and hotel, and them to Despite free typhoon, shelter were back told by typhoon, our Janice transportation unreachable as services. able was our having and that temporary to teammates after locate Mediator the team door-to-door and a The they rescue ready

teammates were and So the into who second Jonathan we a typhoon. their for floor our families, like by of office transformed the affected temporary mediator, shelter

free of Home report their having their that toiletries. medicine, to proud today all rebuilt Rebuilding our And During and Jonathan part food, teammates provided homes stay, were teammates by TaskUs program. mediator TaskUs I'm as are

donated back to our restrictions Our make I'm this our teammates now the and around quarter world lifted, With resources in Philippines money, clients and to thank their to plan and quarantine finally the visit team time, Bohol site happen. to next personally. going there

possible. For to teammates, all to and want answer our you public clients this compassion our and that, open to session. the With give now, heartfelt ask for made our incredible Operator question line of I and their I'll our a whose thank leaders,

Operator

Please the Blair. stand-by Instructions]. Q&A the And line William our while we from Nolan first roster. with Maggie question [Operator of coming compile

Your line open. is now

Maggie Nolan

said delivery about you pattern huge other for does footprint this at then, guys for little talk Bryce, and your you profitability congrats global the for bit in you're you expect you surpassing expectations. more relationship the accounts? account. do mean large you a Thank client. and this optimizing And Can what Hi. for to largest the

Bryce Maddock

Thanks, Yes. Maggie.

we're together going So hundreds and end Philippines roles relationships, the the to the this global client year, India before largest footprint put of start under came and we at one year. client of to together the remains our relationship that with of delivery move a we to the our optimize plan our of plan, strongest

roles growth per from we reason in said client two and plan the the of that's With past, new our annual this add globally. the revenue and in of teams Philippines that India, awarded lines hundreds currently. make As will been since in this to this we've employee addition client revenue place, business lower actually said, we we're not we supporting that put any forecasting

supporting end geographies. It the have going our is margin also the of hundreds this highest by do the teams to to noting India globally that we role worth client than So of more more to roles. this today, are Philippines we're in year, of

the earned So other the finally, transition expand. complete, from client margins we the we're from robust is once across regions. clients will. And our our very growth seeing global

single So fast-growing supporting be client this offered every teammates role of roles be some supporting transitioned, new will whose will today, and our most clients. exciting

Maggie Nolan

you. the the the And in and for on this Thank and helpful. so talk That's Thank you the then you. bit QX guide, little to that trends prior compares can outlook prior-year. the year QX, Gregg including a sales year, how about pipeline far

Bryce Maddock

was fast off I year a of sales reminiscent QX is previously we've our one ever QX XXXX our company's XXXX and actually had in was feels QX ever very the that strongest best of history. to last strongest, quarter terms our that of and start shared of of of XXXX sales it in year.

I'm more to specifics our results. when you had So we've wins far we report QX so about the of tell the excited

Operator

the Our Morgan next James Faucette, line question of Stanley. with coming from

is line now open. Your

James Faucette

evolution you're expectations impacting right how I of Thank now, seeing market any you your the the wanted that margin ask, for to pressure in about course maybe wage year? incremental very much. the through if and

Bryce Maddock

talk just let hiring a let in talk environment. Balaji but a I'll about about the little little Yes. bit me this specific,

our in our the that environment. We value have proposition investments And see like are employee competitive we one The very that it's this a pay hiring environments day since made environment really off. roles seeing over in us today did the hiring to wages. really to you further despite delivered we're for retain quarter, on In added timelines. And putting against intensify XXXX, At actually hiring on almost comment and net more client's positions. our aggressive seeing many allows we which QX and competition more in acutely and from to we we do XXXX, competition. in roles added start seeing We're distinguish each most we U.S. the Balaji, new very global underlines the ourselves leadership the progressively we XX,XXX of certainly than QX more this, ability further in any that's our But as market. talent margins? this or adding of want in attract in anticipate positions. -- XXXX, pressure and

Balaji Sekar

Yeah, thanks Bryce.

are So on most geography, these margin across and are delivery rise which guidance that U.S., tenure, provided the current but that the we pressure in seeing into intention are the all market great geographies and then we seeing performance operate. actually depends [Indiscernible] today. believe factored in I locations to we significantly We

XXXX. be in believe not in [Indiscernible] and be will see geography catch service now question mix, currency XXXX we And we're roughly will up. playing this a contracts, we're situation starting environment. from by So behavior year, And provisions offset revenues to that margin flat a our cost in that the positive [Indiscernible] offshore of this as percent of

James Faucette

guide, this then, a number think changes least what And you quarterly in for at at we do if delivery additions, your net And upside of is but this mix and look incremental see of year you potential growth? what year? basis other to drivers headcount rate support the that, your your I be adequate Bryce, could acquisitions revenue guide on to mentioned it. etc., Got with Thanks. you the growth as to are for that guess the part

Bryce Maddock

that James. for thanks Yes, question,

teammates every this continue start, we're do in and that we add, to our clients. to to year. new ability to confident in X,XXX continuing quarter very So our of for net well, anticipate And north

portfolio we're off very today We've and XXXX broadening growth to of XX% robust the to as midpoint, we provided we've to forecast forecast at got our that continuing the very, a As strong see visibility that across provided demand around start. far is clients. XX% the of

largest year-on-year. we four will With of other five revenue the significantly client, the our exception expect grow of top our clients that

year-on-year, five about clients, hiring the point We in these top by triple-digit grow what's the our and other two grow today. to percentages percentage to that of efforts by year-on-year. best And expect aggressive already double-digit two for of midst is clients revenue that we're

of be portion will this the end large by QX. a ramped So growth of

are feels company. sales sales QX reported quarter to as XXXX. we've finish QX a start And of for a said, by of I've off As very that our XXXX already public QX in reminiscent now record I'll of quarters three saying just strong

hopefully or sense can So high we that of provide a degree that the getting conviction exceed. they're we we [Indiscernible], only meet that have

James Faucette

[Indiscernible]. Thank guys. you so much,

Operator

coming of question Puneet Jain next from with line JPMorgan. the Our

Your line is open.

Puneet Jain

just my of and beyond this for are we or takes of adding, margins levers, services that as should for puts should year. in can Bryce -- we we about Balaji, profile think Thanks and you beyond model talk you question. terms new margin the year how taking qualitatively some margins this consider about in

Bryce Maddock

Yes, Puneet. that for you thank question

start, pointed to in that of geography Services. lines, in and seeing out more our such than driver solutions, financial past we that is of service some we're learning With as margins rather line. crimes, higher margin new main of experience service said, advanced So, AI the the the areas

going make margin these maybe percentage a our the So guidance. revenues, us help larger on and as comment larger areas you midterm Balaji, are let of to up expand they I'll our to margins.

Balaji Sekar

Yes.

couple price which deliver and EBITDA we And margins. the about margin which spoke mix second Bryce talked to would percentage both, offshore, towards a that [Indiscernible]. for about earlier margin, that in this about is growth -- indicated the comes indicative spoke going the operating a that line what EBITDA bit, that and We the of items. above that is year and that EBITDA cost just from of growth adjusted in our in positive we in services have shift see we've be in XX specialized from margin, able [Indiscernible] leading things in better adjusted growth. lastly, that about, have to service And percentage will -- + I've to we So XX% XX medium-term, while drive adjusted is the geo

Puneet Jain

about Got talked you. areas you priorities. And you're and looking can organic you're about cash of in deals invest you Can I in? you talk to looking which also talk use areas for business. M&A your investments which know about and

Bryce Maddock

beyond. to continue growth this our Yeah. year We're investing and XXXX into

expanding our Specifically, sales growth. into to help our new we're We're further go-to-market business. and accelerate our geographies, clients accelerate our drive to efficiencies to deepen into making and also to expand specialized team their development services, our and technology investments

these pursue build absolutely on As balance to of sheet. to cash we expect we not do the we've acquisitions, and let accelerate indicated, to all efforts, intend up

Balaji Sekar

what net adjusted ratio Bryce our was X.XX. our situation is Puneet, And debt as compared year-end, the which very about to cash add have is X.Xx about also to we onto -- said, of and comfortable leverage just approximately EBITDA a of about covenant below

Puneet Jain

you. Thank

Operator

your next line our question Koning Dave the And with Baird, open. coming line of is from

David Koning

start like have impressive. be -- stood from Hey, impressive; was very to that's It the particularly XX%, to -- volume the thing could going so It than then your ish. basically it headwind to us congrats, you seems And guide like and guys, expectation? XX%- all it's seems maybe off. what a geoshift. growth out One that nicely tell -- better

Bryce Maddock

I from Dave, is yes, of that's And think rest client seeing we're the strength correct. our the this that what's of across -- underlying growth portfolio. our

five digit points top either And or lead other the base triple broad our going diversified by the we of guide. XX% revenue revenue points. our help largest customers really two that this growth year-over-year of to to us exception that will to to meet that is grow With percentage double or exceed client, of expect

David Koning

guess the can and year? And year different to that And you actually the rate do base acquisitions thanks. same still question a broadening type you I are out you acquisitions growth keeps then that are the still keep that that can as getting you it, past -- there expect vertical markets, there expect maybe -- do XX% up just is now can find this see? grow -- of the bigger, second bigger Got you

Bryce Maddock

we are by look for growing ours. To digest. we we to next about three company that's those the will or answer XX% companies a at minimum. so at some two to our acquisitions and about three we modestly-sized our acquisitions, grow When size at for above two percentage than think medium-term, absolutely we in better And started first on do. think comparable we years cases When that revenue the to Yeah. focusing believe in be can a next unfortunately, easier a or we the of question, years revenue

do first excited focus type we our of we're And that company acquisition. so when to on

David Koning

job. Nice Thanks. Great.

Operator

from of Kupferberg next Jason question our line coming Bank of And with America. the

line is open. Your

Jason Kupferberg

know on ask mentioned because cash in well. quarter. for for as been margins, the DSO, asked metric for quarter-over-quarter. but matter? this XXXX on and you unbilled there I I Thanks, you've free there's I you. that XX improvement was breakdown thought And and think Congrats from DSO portion the know on the flow I lot on DSO and any guys. Can I'll a that the cash Thank XX revenues quite to give that us thoughts on of and impressive the Balaji,

Balaji Sekar

Yes.

is perspective, the of So earlier XXXX. from things that in mentioned in one an QX I and an numbers QX see improvement that of analyst

typically XXXX, was at percentage So look we this higher in XXXX first you with getting of to was will In tends is of invoice the and business, a of of about it QX And revenues QX of -- one because X%. In grew that the approximately half quaterly driven going [Indiscernible]. month X%. were we backlog what because see XXXX. into to that payable QX as in and saw the [Indiscernible] why above revenues. continue And of forward unbilled if be the

Jason Kupferberg

you. much couple us Curious then of you for And size FinTech those I terms mentioned tell you of combined sounds encrypt and point guys it's like Okay. able this a be what verticals in might know more relevant at growth times. becoming of to

Bryce Maddock

question. for that Thanks

XXXX digit in seeing in actually grew some growth retail, we're been that and point So and HealthTech. leaders year-over-year. for crypto currency space. with both We've industry of the and triple HealthTech, FinTech revenues sustained percentage XXXX, And working the and into all at FinTech e-commerce particularly FinTech,

analyzing we're work support, work. providing money customer customer also know providing to security laundering financial addition your during blockchain where crimes In any and transactions we're

And so, overall the potential while getting we've this growth seen robust think in growth we're space. in just over year, the last started we

Jason Kupferberg

Alright. it. thanks Appreciate for the Well, comments.

Operator

with line of Our coming Brian the Essex next question Goldman Sachs. from

is Your open. line

Brian Essex

an long and if a I a is congrats year? transpired, -- bit guess give you does with conversation has migration rising costs color mitigate Wanted customer, how beginning? and what us follow it or little quarter. there on side, this you Hi, on is on Maybe throughout a of the of cut-over effort for and quarter migration this And taking question kind in Maggie's that of terms their how up from from that or that a does end? the Matt specific largest of with thank some more of to to good beginning to question been take them in the afternoon regard XX general effort, to was your better than the to of rule playbook

Bryce Maddock

Thanks Brian. for your question

to optimize then scale over with we to these So We as and very very clients time. through a tend clients when start small they spend. are customers look company, with go migrations our quickly,

And are and done so in conjunction efforts of these all collaboration our TaskUs clients. and between

to was start The shift conversation and spend this as portion will Philippines optimize QX to this began and a these so a in in we it to recommendation clients our And of transition in India. be a year expect QX. to the roles made looked that for we ways we January of completed large to and

would year. new full I low revenues. and continue to I'll impact opportunities our putting very for again a additional we of this client be will since a two global QX that'll that in hundreds the say that delivery footprint impact and place, revenues plan to there our to business said win add just won client. exciting from And this So you'll to see will this We've QX relatively headcount

optimistic very XXXX. ability our this we're client again, to with So grow in about

Brian Essex

Got it. helpful. super That's

the ten if looks two Could three clients So And more follow-up is. backing right. largest quick math for the quarter, just for the just you thank through just you my first out on ten clients, little doubled of of that. relatively customers and Halfway maybe of the a top there it like drivers a the the in terms that some of us out where that at play growth? that color was set they're dynamics or give ten the in ones top a of core in bit what diverse swapped were than

Bryce Maddock

Yes.

you year. a And So customers new across top look I growing we that in FinTech to largest year-on-year. every we've group all we've top customer, are, as diverse when our our said, really are on-demand those XXX% transportation ten a other as clients, got clients, up top of it you clients the And about points XXXX percentage as four to two set eCommerce growth seen between double five of be clients, customers. strong than and going amongst clients triple is our very said, forward back and

growth broad seeing of about the in base really XXXX. excited that we're So we're

Brian Essex

much. Got it. Thank Helpful. you very

Operator

Dan of Next question Perlin Capital. line coming RBC the with from

open. is line Your

Dan Perlin

HealthTech here shift -- grew you clients more also but about opportunities, maybe positive for which -- of around the XX had question past of changed past it's I margin And scope you on work. specialized Maybe some we the can and giving I numbers they're more, it mix work and the these breadth new in speak wishes retail in good moving these how sounds Thanks, well longer-term my I'll all you echo very think over it's said a all scope and triple-digits. that's appreciate. opportunities. to work, it's just greatly obviously a like like year. seems of say works of That -- changed -- like some you FinTech, months? the of talked and Bryce, let's potentially are of you terms both how what

Bryce Maddock

for thank question, Dan. Yes, you your

We services. have for seen increasing sophisticated more demand

world, to and companies where of long content service like largest signed operations. doing As an into going services from AI we pursuing financial deal we've Services, or example, doing higher financial their a the And instead going been this beginning things that services doing customer supporting quality pay with We just inside getting in demand crimes We've annotation see experience the seen inside we're knowledge into support client this work, make technology our work. software quarter form a from their going margins. the to clients, in one technology institutional maintaining data standard providing writing training learning margins. are base. will those of time. of a in off specialized And doing Actually, for strategy be support customer of higher there We're all solutions.

Dan Perlin

areas, Is your we FinTech, larger tend unique crypto, of to there to nature the lower the want GEO need mindful more or just larger in about just of? that is to as be be Do work of business now? you're specialized follow-up, we to helps think bit of coming becoming the the it your percentages which addition a in way services that's something, as that a HealthTech and they little mix providing

Bryce Maddock

in we're those quality these some Yes, or categories, that and many When that and actually to helping I things companies about in like they're to some for service that either think really our to both we of services. about footprint, onshore increase the that just regulations, and supporting of industry preferences. that of regulatory champion these comes demand when we think lead keep regulations reasons we care clients those HealthTech demand work our regulation, delivery an But in delivering. will are leaders, believe of ways for client they're geographic it FinTech

probability geographic the lower optimization time going so tell. And there's through with we're I that footprint will a that other think ultimately probably the at moment, but clients some of

Dan Perlin

Yes.

you. Okay. That's Thank great.

Operator

with BTIG. coming the of line question Our next from VanVliet Matt

open. is line Your

Matt VanVliet

I the guys. large first learning guess company taking at maybe expanding out. a talked price, about services opportunity, for and that tech Thanks Congrats both question. you've

just doing it's now So a your bit wanted a there. couple for to to Or several little maybe a quarters dig more in is ready it? while that really been are formalized of something product offering? market you've in and Is number for just this clients becoming with and little to months bit of a a something a you've last this of more developed the now go or

Bryce Maddock

Matt. the for question, Thanks Yes.

sure in amount innovative happened what teammates and with experience, always our that that in starts really actually So making and we way the here the training a We've huge most invested are interesting. exciting employee was possible.

has to putting the teammates our teaching we've really development So our Dhairya robust championed gentlemen learning to incredible (ph), really who a our approach leadership they program. support an need and got our skills leader, a clients leadership Sharma through named

content, a us States. company couple based over of So sessions team working knowledge-based large rebadge interested successfully were the training in We offering did was large many years our clients instructional put autonomous combination domestic of maintain content. training that a a offshore of In to in United since together this is of using a has that one conduct of and attracted multiple scaled is This on have to and And cases, behalf for that vehicle work clients and the taking resources actually, a on content that clients. back. the and they them. team our

Matt VanVliet

of of to takes times, of both And how a -- they and maybe look Maybe offshore with your give puts how maybe maybe have focused. opportunity then as the and you but the many just revenue might couple largest what little in you Can sense use form today? they using many TaskUs, overall? is, that start us talked not second the they mix, bit model more about just markets, a to of your of more at a all customers and others, customer longer-term, maybe offshore are tend some

Bryce Maddock

Yes.

that -- it had a Philippines we launched delivery the anywhere U.S. as with started XXXX until and only we when Philippines else. we our the So operations in operations company we the operations in wasn't and

countries portion majority today customers the So our use customers and some right vast leveraging and sourcing we're of offshore or being business in of our continuity, two,three really got their are reasons at right customers four different talent the amongst demand services. to our our to not That just XX for of countries deliver said, single-source language robust we've operations model. today a delivery seeing increasingly price, the coverage

Matt VanVliet

my Thank for right, taking questions. you great. All

Operator

time. would back CEO the to TaskUs I'm Co-Founder further now for turn Bryce at closing call and over no Maddock, remarks. this like showing questions I to

Bryce Maddock

in XXXX Thanks, next our a teammates, had in We've I delivering Look to and to Olivia. forward want our Talk our XXXX. strong May. And shareholders. just year forward and our clients, to strong in closing, looking call thank soon. very another very we're

Operator

your conference for participation. and conclude our Ladies does that today. you for Thank gentlemen,

disconnect. now may You

TaskUs (TASK) 1 Mar 222021 Q4 Earnings call transcript