TASK 8-K
TaskUs, Inc. (TASK)
8-K
2022-02-28
For: 2022-02-28
View Original
Added on
April 07, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________________
FORM 8-K
__________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 28, 2022
__________________________
(Exact Name of Registrant as Specified in its Charter)
__________________________
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of Principal Executive Offices) (Zip Code)
(888 ) 400-8275
(Registrant’s Telephone Number, Including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
__________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☑
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On February 28, 2022 , TaskUs, Inc. (the “Company”) issued a press release announcing earnings for the quarter and year ended December 31, 2021. A copy of the press release is furnished herewith as Exhibit 99.1 and is incorporated by reference herein in its entirety.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| TASKUS, INC. | ||||||||
| By: | /s/ Balaji Sekar | |||||||
| Name: Balaji Sekar | ||||||||
| Title: Chief Financial Officer | ||||||||
Date: | ||||||||
Exhibit 99.1
TaskUs Announces Fiscal
Fourth Quarter and Full Year 2021 Results
NEW BRAUNFELS, Texas, February 28, 2022 — TaskUs, Inc. (Nasdaq: TASK), a leading provider of digital outsourced services focused on serving high growth technology companies, today announced its results for the fourth quarter and full year ended December 31, 2021.
•Fourth quarter total revenue of $226.8 million, representing 63.4% of year-over-year growth. Full year 2021 total revenue of $760.7 million, representing 59.1% of year-over-year growth. All growth was entirely organic.
•Fourth quarter GAAP net income margin of 8.4%, including non-cash stock-based compensation expense of $21.2 million. Full year 2021 GAAP net loss margin of (7.7)%, including a $129.4 million one-time expense related to phantom stock bonuses to TaskUs employees and $11.3 million of other offering related expenses, as well as non-cash stock-based compensation expense of $46.2 million.
•Fourth quarter Adjusted EBITDA margin of 24.8%, non-GAAP Adjusted Net Income margin of 16.3%. Full year 2021 Adjusted EBITDA margin of 24.7%, non-GAAP Adjusted Net Income margin of 17.0%.
•Full year 2022 outlook for revenue between $980 million and $1,000 million, representing growth of approximately 30.1% at the midpoint, and an Adjusted EBITDA margin of approximately 23%.
"2021 was an incredible year for TaskUs. We reached a number of key milestones this year - we successfully completed our IPO, grew to over 40,000 teammates throughout the world and achieved results that were well above our plan," said Co-Founder and CEO, Bryce Maddock. "We delivered exceptional results for our high-growth technology clients and had our strongest year of new business signings in company history. We ended the year strong, delivering 63% revenue growth and coming just shy of 25% Adjusted EBITDA margins in the fourth quarter. I’m very proud of the team’s performance and am excited to see what we can accomplish in 2022.”
Fourth Quarter and Full Year 2021 Financial and Frontline Highlights
| (in thousands, except margins and per share amounts) | Three months ended December 31, | Year ended December 31, | |||||||||||||||||||||||||||||||||
| 2021 | 2020 | % Change | 2021 | 2020 | % Change | ||||||||||||||||||||||||||||||
| Service revenue | $ | 226,757 | $ | 138,792 | 63.4 | % | $ | 760,703 | $ | 478,046 | 59.1 | % | |||||||||||||||||||||||
| GAAP net income (loss) | $ | 19,102 | $ | 13,554 | 40.9 | % | $ | (58,698) | $ | 34,533 | (270.0) | % | |||||||||||||||||||||||
| GAAP net income (loss) margin | 8.4 | % | 9.8 | % | (7.7) | % | 7.2 | % | |||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 56,154 | $ | 32,940 | 70.5 | % | $ | 187,910 | $ | 106,887 | 75.8 | % | |||||||||||||||||||||||
| Adjusted EBITDA margin | 24.8 | % | 23.7 | % | 24.7 | % | 22.4 | % | |||||||||||||||||||||||||||
| Non-GAAP Adjusted Net Income | $ | 37,062 | $ | 20,023 | 85.1 | % | $ | 129,389 | $ | 69,364 | 86.5 | % | |||||||||||||||||||||||
| Non-GAAP Adjusted Net Income margin | 16.3 | % | 14.4 | % | 17.0 | % | 14.5 | % | |||||||||||||||||||||||||||
| GAAP diluted earnings per share | $ | 0.17 | $ | 0.15 | 13.3 | % | $ | (0.62) | $ | 0.38 | (263.2) | % | |||||||||||||||||||||||
| Non-GAAP Adjusted EPS | $ | 0.34 | $ | 0.22 | 54.5 | % | $ | 1.26 | $ | 0.76 | 65.8 | % | |||||||||||||||||||||||
•Continued client expansion, ending full year 2021 with 93 clients with revenue over $0.5 million, which included 16 clients with revenue of at least $10 million and 72 clients with revenue of at least $1 million, compared to 72 clients with revenue over $0.5 million in 2020, which included 8 clients with revenue of at least $10 million and 46 clients with revenue of at least $1 million.
•40,100 teammates (approximately 90% working from home) as of December 31, 2021, an increase of approximately 16,500 from December 31, 2020.
•TaskUs Glassdoor score as of December 31, 2021 was 4.6.
•Added 41 new clients in 2021, achieving a new client win rate of 49%.
•Total 2021 win rate, inclusive of new clients and existing clients, of 60%.
•Net Revenue Retention rate of 141%.
First Quarter and Full Year 2022 Outlook
For the first quarter and full year 2022 TaskUs expects its financial results to include1:
2022 Outlook | |||||||||||
| First Quarter | Full Year | ||||||||||
Revenue (in millions) | $229.0 to $232.2 | $980 to $1,000 | |||||||||
Revenue growth (YoY) at midpoint | 50.8% | 30.1% | |||||||||
Adjusted EBITDA Margin | ~22.5% | ~23% | |||||||||
1.With respect to the non-GAAP Adjusted EBITDA margin outlook provided above, a reconciliation to the closest GAAP financial measure has not been provided as the quantification of certain items included in the calculation of GAAP net income (loss) cannot be calculated or predicted at this time without unreasonable efforts. For example, the non-GAAP adjustment for stock-based compensation expense requires additional inputs such as number of shares granted and market price that are not currently ascertainable, the non-GAAP adjustment for foreign currency gains or losses depends on the timing and magnitude of changes in foreign currency exchange rates and cannot be accurately forecasted. For the same reasons, the Company is unable to address the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.
Conference Call Information
TaskUs senior management will host a conference call today to discuss the Company’s fourth quarter and full year 2021 financial results and financial outlook. This call is scheduled to begin at 5:00 pm ET and can be accessed by dialing (844) 721-1080 from the United States or Canada or (929) 517-0923 from other international locations and reference conference ID: 7657198. To listen to a live audio webcast, please visit TaskUs’ Investor Relations website at IR.Taskus.com. A replay of the audio webcast will be available for 90 days on the same website following the call. After the conference call and webcast, the Company plans to make a slide presentation and other materials available on its website.
About TaskUs
TaskUs is a provider of outsourced digital services and next-generation customer experience to innovative and disruptive technology companies, helping its clients represent, protect and grow their brands. Leveraging a cloud-based infrastructure, TaskUs serves clients in the fastest-growing sectors, including social media, e-commerce, gaming, streaming media, food delivery and ride-sharing, HiTech, FinTech and HealthTech. As of December 31, 2021, TaskUs had approximately 40,100 employees across twenty-three locations in 10 countries, including the United States, the Philippines and India.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts, and further include, without limitation, statements reflecting our current views with respect to, among other things, our operations, our financial performance, our industry, the impact of the COVID-19 global pandemic on our business, and other non-historical statements including the statements in the “First Quarter and Full Year 2022 Outlook” section of this press release. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “predicts,” “intends,” “trends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors include but are not limited to: the dependence of our business on key clients; the risk of loss of business or non-payment from significant clients; our failure to cost-effectively acquire new, high-growth clients; the risk that we may provide inadequate service or cause disruptions in our clients’ businesses or fail to comply with the quality standards required by our clients under our agreements; unauthorized or improper disclosure of personal or other sensitive information, or security breaches and incidents; negative publicity or liability or difficulty retaining and recruiting employees; our failure to detect and deter criminal or fraudulent activities or other misconduct by our employees; global economic and political conditions, especially in the social media and meal delivery and transport industries from which we generate most of our revenue; the dependence of our business on our international operations, particularly in the Philippines and India; our failure to comply with applicable privacy and data security laws and regulations; substantial increases in the costs of technology and telecommunications services or our inability to attract and retain the necessary technologists; our inability to adapt our services and solutions to changes in technology and client expectations; fluctuations against the U.S. dollar in the local currencies in the countries in which we operate; our inability to maintain and enhance our brand; competitive pricing pressure; our dependence on senior management and key employees; the ongoing COVID-19 pandemic, including the resulting global economic uncertainty and measures taken in response to the pandemic; the control of affiliates of Blackstone Inc. and our Co-Founders over us; and the dual class structure of our common
stock. Additional risks and uncertainties include but are not limited to those described under “Risk Factors” in the Company’s prospectus dated October 20, 2021 (the “prospectus”), filed with the Securities and Exchange Commission (the “SEC”) pursuant to Rule 424(b)(4) of the Securities Act of 1933, as amended, on October 22, 2021, as such factors may be updated from time to time in our filings with the SEC, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which is expected to be filed after this press release, which are or will be accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the prospectus and the Company’s other SEC filings. TaskUs undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
Non-GAAP Measures
TaskUs supplements results reported in accordance with United States generally accepted accounting principles, referred to as GAAP, with non-GAAP financial measures, such as Adjusted Net Income, Adjusted Net Income Margin, Adjusted EPS, EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin. Management believes these measures help illustrate underlying trends in TaskUs’ business and uses the measures to establish budgets and operational goals, communicate internally and externally, for managing TaskUs’ business and evaluating its performance. Management also believes these measures help investors compare TaskUs’ operating performance with its results in prior periods. TaskUs anticipates that it will continue to report both GAAP and certain non-GAAP financial measures in its financial results, including non-GAAP results that exclude the impact of certain costs, losses and gains that are required to be included in our profit and loss measures under GAAP. Because TaskUs’ reported non-GAAP financial measures are not calculated in accordance with GAAP, these measures are not comparable to GAAP and may not be comparable to similarly described non-GAAP measures reported by other companies within TaskUs’ industry. Consequently, TaskUs’ non-GAAP financial measures should not be evaluated in isolation or supplant comparable GAAP measures, but rather, should be considered together with the information in TaskUs’ consolidated financial statements, which are prepared in accordance with GAAP. Definitions of non-GAAP financial measures and the reconciliations to the most directly comparable measures in accordance with GAAP are provided in subsequent sections of this press release narrative and supplemental schedules.
Investor Contact
Alan Katz, VP, Investor Relations
Media Contact
Jonathan Keehner / Tanner Kaufman
Joele Frank, Wilkinson Brimmer Katcher
(212) 355-4449
TaskUs, Inc.
Condensed Consolidated Statements of Operations (unaudited)
(in thousands, except per share data)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Service revenue | $ | 226,757 | $ | 138,792 | $ | 760,703 | $ | 478,046 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||
| Cost of services | 127,485 | 79,214 | 431,736 | 270,510 | |||||||||||||||||||
| Selling, general, and administrative expense | 65,662 | 29,889 | 335,312 | 113,519 | |||||||||||||||||||
| Depreciation | 8,684 | 5,930 | 29,038 | 20,155 | |||||||||||||||||||
| Amortization of intangible assets | 4,712 | 4,712 | 18,847 | 18,847 | |||||||||||||||||||
| Loss (gain) on disposal of assets | (2) | 966 | 52 | 1,116 | |||||||||||||||||||
| Contingent consideration | — | — | — | 3,570 | |||||||||||||||||||
| Total operating expenses | 206,541 | 120,711 | 814,985 | 427,717 | |||||||||||||||||||
| Operating income (loss) | 20,216 | 18,081 | (54,282) | 50,329 | |||||||||||||||||||
| Other expense (income) | (122) | (2,460) | 177 | (1,572) | |||||||||||||||||||
| Financing expenses | 1,696 | 1,633 | 6,504 | 7,482 | |||||||||||||||||||
| Income (loss) before income taxes | 18,642 | 18,908 | (60,963) | 44,419 | |||||||||||||||||||
| Provision for (benefit from) income taxes | (460) | 5,354 | (2,265) | 9,886 | |||||||||||||||||||
| Net income (loss) | $ | 19,102 | $ | 13,554 | $ | (58,698) | $ | 34,533 | |||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||||||||
| Basic | $ | 0.20 | $ | 0.15 | $ | (0.62) | $ | 0.38 | |||||||||||||||
| Diluted | $ | 0.17 | $ | 0.15 | $ | (0.62) | $ | 0.38 | |||||||||||||||
| Weighted-average number of common shares outstanding: | |||||||||||||||||||||||
| Basic | 97,343,859 | 91,737,020 | 94,832,137 | 91,737,020 | |||||||||||||||||||
| Diluted | 110,513,820 | 91,737,020 | 94,832,137 | 91,737,020 | |||||||||||||||||||
TaskUs, Inc.
Condensed Consolidated Balance Sheets (unaudited)
(in thousands)
| December 31, 2021 | December 31, 2020 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash | $ | 63,584 | $ | 107,728 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of $1,819 and $2,294, respectively | 162,895 | 87,782 | |||||||||
| Other receivables | 597 | 105 | |||||||||
| Prepaid expenses | 10,939 | 13,032 | |||||||||
| Income tax receivable | 3,863 | 1,606 | |||||||||
| Other current assets | 4,428 | 1,051 | |||||||||
| Total current assets | 246,306 | 211,304 | |||||||||
| Noncurrent assets: | |||||||||||
| Property and equipment, net | 80,046 | 56,957 | |||||||||
| Deferred tax assets | 1,441 | 585 | |||||||||
| Intangibles | 221,448 | 240,295 | |||||||||
| Goodwill | 195,735 | 195,735 | |||||||||
| Other noncurrent assets | 5,022 | 2,630 | |||||||||
| Total noncurrent assets | 503,692 | 496,202 | |||||||||
| Total assets | $ | 749,998 | $ | 707,506 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Liabilities: | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable and accrued liabilities | $ | 40,890 | $ | 41,935 | |||||||
| Accrued payroll and employee-related liabilities | 36,670 | 21,994 | |||||||||
| Current portion of debt | 51,135 | 45,984 | |||||||||
| Current portion of income tax payable | 2,416 | — | |||||||||
| Deferred revenue | 4,095 | 4,711 | |||||||||
| Deferred rent | 735 | 218 | |||||||||
| Total current liabilities | 135,941 | 114,842 | |||||||||
| Noncurrent liabilities: | |||||||||||
| Income tax payable | 2,886 | 2,988 | |||||||||
| Long-term debt | 187,240 | 198,768 | |||||||||
| Deferred rent | 2,749 | 2,194 | |||||||||
| Accrued payroll and employee-related liabilities | 1,813 | 2,641 | |||||||||
| Deferred tax liabilities | 40,235 | 50,936 | |||||||||
| Total noncurrent liabilities | 234,923 | 257,527 | |||||||||
| Total liabilities | 370,864 | 372,369 | |||||||||
| Total shareholders’ equity | 379,134 | 335,137 | |||||||||
| Total liabilities and shareholders’ equity | $ | 749,998 | $ | 707,506 | |||||||
TaskUs, Inc.
Condensed Consolidated Statement of Cash Flows (unaudited)
(in thousands)
| Year ended December 31, | |||||||||||
| 2021 | 2020 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income (loss) | $ | (58,698) | $ | 34,533 | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation | 29,038 | 20,149 | |||||||||
| Amortization of intangibles | 18,847 | 18,847 | |||||||||
| Amortization of debt financing fees | 526 | 457 | |||||||||
| Loss on disposal of assets | 52 | 1,116 | |||||||||
| Provision for losses on accounts receivable | 1,058 | 2,227 | |||||||||
| Unrealized losses on forward contracts | 4,573 | 84 | |||||||||
| Deferred taxes | (11,477) | (6,496) | |||||||||
| Stock-based compensation expense | 46,189 | — | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable | (76,203) | (32,006) | |||||||||
| Other receivables, prepaid expenses, and other current assets | (8,611) | (3,768) | |||||||||
| Other noncurrent assets | (2,380) | (67) | |||||||||
| Accounts payable and accrued liabilities | 4,493 | 13,535 | |||||||||
| Accrued payroll and employee-related liabilities | 16,450 | 6,669 | |||||||||
| Income tax payable | 1,013 | 1,381 | |||||||||
| Deferred revenue | 1,261 | 2,603 | |||||||||
| Deferred rent | 1,195 | (391) | |||||||||
| Net cash provided by (used in) operating activities | (32,674) | 58,873 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchase of property and equipment | (59,363) | (28,883) | |||||||||
| Net cash used in investing activities | (59,363) | (28,883) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Proceeds from borrowing, Revolving credit facility | — | 39,878 | |||||||||
| Payments on long-term debt | (6,563) | (2,888) | |||||||||
| Payments for debt financing fees | (340) | — | |||||||||
| Proceeds from issuance of common stock, net of underwriters’ fees | 120,698 | — | |||||||||
| Payments for offering costs | (4,798) | — | |||||||||
| Payments for taxes related to net share settlement | (4,607) | — | |||||||||
| Distribution of dividends | (50,000) | — | |||||||||
| Net cash provided by financing activities | 54,390 | 36,990 | |||||||||
| Increase (decrease) in cash and cash equivalents | (37,647) | 66,980 | |||||||||
| Effect of exchange rate changes on cash | (6,497) | 3,207 | |||||||||
| Cash and cash equivalents at beginning of period | 107,728 | 37,541 | |||||||||
| Cash and cash equivalents at end of period | $ | 63,584 | $ | 107,728 | |||||||
TaskUs, Inc.
Non-GAAP Reconciliations
Adjusted EBITDA (unaudited)
(in thousands, except margin amounts)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Net income (loss) | $ | 19,102 | $ | 13,554 | $ | (58,698) | $ | 34,533 | |||||||||||||||
| Provision for (benefit from) income taxes | (460) | 5,354 | (2,265) | 9,886 | |||||||||||||||||||
| Financing expenses | 1,696 | 1,633 | 6,504 | 7,482 | |||||||||||||||||||
| Depreciation | 8,684 | 5,930 | 29,038 | 20,155 | |||||||||||||||||||
| Amortization of intangible assets | 4,712 | 4,712 | 18,847 | 18,847 | |||||||||||||||||||
| EBITDA | $ | 33,734 | $ | 31,183 | $ | (6,574) | $ | 90,903 | |||||||||||||||
Offering costs(1) | 720 | 511 | 6,969 | 896 | |||||||||||||||||||
Foreign currency losses (gains)(2) | 332 | (2,438) | 809 | (1,511) | |||||||||||||||||||
| Loss (gain) on disposal of assets | (2) | 966 | 52 | 1,116 | |||||||||||||||||||
COVID-19 related expenses(3) | — | 2,473 | 6,105 | 7,541 | |||||||||||||||||||
Severance costs(4) | — | (70) | — | 2,557 | |||||||||||||||||||
Lease termination costs(5) | — | 315 | — | 1,815 | |||||||||||||||||||
Natural disaster(6) | — | — | 442 | — | |||||||||||||||||||
| Contingent consideration | — | — | — | 3,570 | |||||||||||||||||||
Phantom shares bonus(7) | — | — | 129,362 | — | |||||||||||||||||||
Teammate IPO bonus(8) | — | — | 4,361 | — | |||||||||||||||||||
Stock-based compensation expense(9) | 21,370 | — | 46,384 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 56,154 | $ | 32,940 | $ | 187,910 | $ | 106,887 | |||||||||||||||
Net Income (Loss) Margin(10) | 8.4 | % | 9.8 | % | (7.7) | % | 7.2 | % | |||||||||||||||
Adjusted EBITDA Margin(10) | 24.8 | % | 23.7 | % | 24.7 | % | 22.4 | % | |||||||||||||||
| (1) | Represents non-recurring professional service fees related to the preparation for public offerings that have been expensed during the period. | ||||
| (2) | Realized and unrealized foreign currency losses (gains) include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency. | ||||
| (3) | Represents incremental expenses incurred related to the transition to a virtual operating model and incentive and leave pay granted to employees that are directly attributable to the COVID-19 pandemic. | ||||
| (4) | Represents severance payments as a result of certain cost optimization measures we undertook during the period. | ||||
| (5) | Represents one-time costs associated with the termination of lease agreements for certain U.S. facilities attributable to the COVID-19 pandemic. | ||||
| (6) | Represents one-time costs associated with emergency housing, transportation costs and bonuses for our employees in connection with the natural disaster related to the severe winter storm in Texas in February 2021. | ||||
| (7) | Represents expense for one-time, non-recurring payments of $127.5 million to vested phantom shareholders in connection with the completion of the IPO, as well as associated payroll tax and 401(k) contributions. | ||||
| (8) | Represents expense for non-recurring bonus payments to certain employees in connection with the completion of the IPO. | ||||
| (9) | Represents stock-based compensation expense associated with equity-classified awards, as well as associated payroll tax. | ||||
| (10) | Net Income (Loss) Margin represents net income (loss) divided by service revenue and Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue. | ||||
TaskUs, Inc.
Non-GAAP Reconciliations
Adjusted Net Income (unaudited)
(in thousands, except margin amounts)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| Net income (loss) | $ | 19,102 | $ | 13,554 | $ | (58,698) | $ | 34,533 | |||||||||||||||
Amortization of intangible assets | 4,712 | 4,712 | 18,847 | 18,847 | |||||||||||||||||||
Offering costs(1) | 720 | 511 | 6,969 | 896 | |||||||||||||||||||
Foreign currency losses (gains)(2) | 332 | (2,438) | 809 | (1,511) | |||||||||||||||||||
| Loss (gain) on disposal of assets | (2) | 966 | 52 | 1,116 | |||||||||||||||||||
COVID-19 related expenses(3) | — | 2,473 | 6,105 | 7,541 | |||||||||||||||||||
Severance costs(4) | — | (70) | — | 2,557 | |||||||||||||||||||
Lease termination costs(5) | — | 315 | — | 1,815 | |||||||||||||||||||
Natural disaster costs(6) | — | — | 442 | — | |||||||||||||||||||
Contingent consideration | — | — | — | 3,570 | |||||||||||||||||||
Phantom shares bonus(7) | — | — | 129,362 | — | |||||||||||||||||||
Teammate IPO bonus(8) | — | — | 4,361 | — | |||||||||||||||||||
Stock-based compensation expense(9) | 21,370 | — | 46,384 | — | |||||||||||||||||||
Tax impacts of adjustments(10) | (9,172) | — | (25,244) | — | |||||||||||||||||||
Adjusted Net Income | $ | 37,062 | $ | 20,023 | $ | 129,389 | $ | 69,364 | |||||||||||||||
Net Income (Loss) Margin(11) | 8.4 | % | 9.8 | % | (7.7) | % | 7.2 | % | |||||||||||||||
Adjusted Net Income Margin(11) | 16.3 | % | 14.4 | % | 17.0 | % | 14.5 | % | |||||||||||||||
| (1) | Represents non-recurring professional service fees related to the preparation for public offerings that have been expensed during the period. | ||||
| (2) | Realized and unrealized foreign currency losses (gains) include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency. | ||||
| (3) | Represents incremental expenses incurred related to the transition to a virtual operating model and incentive and leave pay granted to employees that are directly attributable to the COVID-19 pandemic. | ||||
| (4) | Represents severance payments as a result of certain cost optimization measures we undertook during the period. | ||||
| (5) | Represents one-time costs associated with the termination of lease agreements for certain U.S. facilities attributable to the COVID-19 pandemic. | ||||
| (6) | Represents one-time costs associated with emergency housing, transportation costs and bonuses for our employees in connection with the natural disaster related to the severe winter storm in Texas in February 2021. | ||||
| (7) | Represents expense for one-time, non-recurring payments of $127.5 million to vested phantom shareholders in connection with the completion of the IPO, as well as associated payroll tax and 401(k) contributions. | ||||
| (8) | Represents expense for non-recurring bonus payments to certain employees in connection with the completion of the IPO. | ||||
| (9) | Represents stock-based compensation expense associated with equity-classified awards, as well as associated payroll tax. | ||||
| (10) | Represents tax impacts of adjustments to net income (loss) which resulted in a tax benefit during the period. These adjustments include phantom shares bonus related to the IPO and stock-based compensation expense after the IPO. | ||||
| (11) | Net Income (Loss) Margin represents net income (loss) divided by service revenue and Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue. | ||||
TaskUs, Inc.
Non-GAAP Reconciliations
Adjusted EPS (unaudited)
| Three months ended December 31, | Year ended December 31, | ||||||||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
| GAAP diluted EPS | $ | 0.17 | $ | 0.15 | $ | (0.62) | $ | 0.38 | |||||||||||||||
Per share adjustments to net income (loss)(1) | 0.17 | 0.07 | 1.98 | 0.38 | |||||||||||||||||||
Per share adjustments for GAAP anti-dilutive shares(2) | — | — | (0.10) | — | |||||||||||||||||||
| Adjusted EPS | $ | 0.34 | $ | 0.22 | $ | 1.26 | $ | 0.76 | |||||||||||||||
| Weighted-average common shares outstanding – diluted | 110,513,820 | 91,737,020 | 94,832,137 | 91,737,020 | |||||||||||||||||||
GAAP anti-dilutive shares(2) | — | — | 7,476,384 | — | |||||||||||||||||||
| Adjusted weighted-average shares outstanding | 110,513,820 | 91,737,020 | 102,308,521 | 91,737,020 | |||||||||||||||||||
| (1) | Reflects the aggregate adjustments made to reconcile net income (loss) to Adjusted Net Income, as noted in the above table, divided by the GAAP diluted weighted-average number of shares outstanding for the relevant period. | ||||
| (2) | Reflects the impact of awards that were anti-dilutive to GAAP diluted EPS since we were in a net loss position, and therefore not included in the calculation, but would be dilutive to Adjusted EPS and are therefore included in the calculation. | ||||
Definitions of Non-GAAP Metrics
EBITDA and Adjusted EBITDA
EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the benefit from or provision for income taxes, financing expenses, depreciation, and amortization of intangible assets. EBITDA eliminates potential differences in performance caused by variations in capital structures (affecting financing expenses), tax positions (such as the availability of net operating losses against which to relieve taxable profits), the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense).
Adjusted EBITDA is a non-GAAP profitability measure that represents EBITDA before certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, we exclude from Adjusted EBITDA offering costs, the effect of foreign currency gains and losses, losses on disposals of assets, COVID-19 related expenses, severance costs, lease termination costs, natural disaster costs, contingent consideration, one-time payments associated with the IPO and stock-based compensation expense and employer payroll tax associated with equity-classified awards, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
Adjusted EBITDA Margin represents Adjusted EBITDA divided by service revenue.
Adjusted Net Income
Adjusted Net Income is a non-GAAP profitability measure that represents net income or loss for the period before the impact of amortization of intangible assets and certain items that are considered to hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses. During the periods presented, we exclude from Adjusted Net Income amortization of intangible assets, offering costs, the effect of foreign currency gains and losses, losses on disposals of assets, COVID-19 related expenses, severance costs, lease termination costs, natural disaster costs, contingent consideration, one-time payments associated with the IPO, stock-based compensation expense and employer payroll tax associated with equity-classified awards and the related effect on income taxes of certain pre-tax adjustments, which include costs that are required to be expensed in accordance with GAAP. Our management believes that the inclusion of supplementary adjustments to net income (loss) applied in presenting Adjusted Net Income are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.
Adjusted Net Income Margin represents Adjusted Net Income divided by service revenue.
Adjusted EPS
Adjusted EPS is a non-GAAP profitability measure that represents earnings available to shareholders excluding the impact of certain items that are considered to hinder comparison of the performance of our business on a period-over-period basis or with other businesses. Adjusted EPS is calculated as Adjusted Net Income divided by our diluted weighted-average number of shares outstanding, including the impact of any potentially dilutive common stock equivalents that are anti-dilutive to GAAP net income (loss) per share – diluted (“GAAP diluted EPS”) but dilutive to Adjusted EPS. Our management believes that the inclusion of supplementary adjustments to earnings per share applied in presenting Adjusted EPS are appropriate to provide additional information to investors about certain material non-cash items and about unusual items that we do not expect to continue at the same level in the future.