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TaskUs (TASK)

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 ridesharing, HiTech, FinTech and HealthTech. As of March 31, 2021, TaskUs had approximately 27,500 employees across eighteen locations in the United States, the Philippines, India, Mexico, Taiwan, Greece, Ireland and Colombia.

Company profile

Ticker
TASK
Exchange
Website
Employees
Incorporated
Location
Fiscal year end
Former names
TU TopCo, Inc.
SEC CIK
Subsidiaries
TU MidCo, Inc. • TU BidCo, Inc. • TaskUs Holdings, Inc. • LizardBear Tasking, Inc. • Ridiculously Good Outsourcing, Inc. • TaskUs Colombia SAS • TaskUs Greece Single Member Private Company • TaskUs India Private Limited • TaskUs Ireland Private Limited • TaskUs Limited ...
IRS number
831586636

TASK stock data

Calendar

10 May 22
12 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 77.07M 77.07M 77.07M 77.07M 77.07M 77.07M
Cash burn (monthly) (no burn) 9.9M (no burn) 4.68M (no burn) (no burn)
Cash used (since last report) n/a 43.77M n/a 20.67M n/a n/a
Cash remaining n/a 33.31M n/a 56.4M n/a n/a
Runway (months of cash) n/a 3.4 n/a 12.1 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
5 Aug 22 Jarrod Johnson Class A Common Stock Payment of exercise Dispose F No No 22.93 9,695 222.31K 30,119
5 Aug 22 Jarrod Johnson Class A Common Stock Option exercise Acquire M No No 0 39,814 0 39,814
5 Aug 22 Jarrod Johnson RSU Class A Common Stock Option exercise Dispose M No No 0 39,814 0 159,257
5 Aug 22 Sekar Balaji Class A Common Stock Payment of exercise Dispose F No No 22.93 10,214 234.21K 29,600
5 Aug 22 Sekar Balaji Class A Common Stock Option exercise Acquire M No No 0 39,814 0 39,814
5 Aug 22 Sekar Balaji RSU Class A Common Stock Option exercise Dispose M No No 0 39,814 0 159,257
15 Jun 22 Jacqueline D Reses RSU Class A Common Stock Grant Acquire A No No 0 7,265 0 7,265
15 Jun 22 Susir Kumar RSU Class A Common Stock Grant Acquire A No No 0 7,265 0 7,265
15 Jun 22 Stephan Daoust Class A Common Stock Payment of exercise Dispose F No No 17 7,411 125.99K 23,023
15 Jun 22 Stephan Daoust Class A Common Stock Option exercise Acquire M No No 0 30,434 0 30,434
13F holders Current Prev Q Change
Total holders 130 135 -3.7%
Opened positions 31 72 -56.9%
Closed positions 36 28 +28.6%
Increased positions 49 37 +32.4%
Reduced positions 32 21 +52.4%
13F shares Current Prev Q Change
Total value 3.57B 3.99B -10.8%
Total shares 73.97M 75.69M -2.3%
Total puts 445.5K 293K +52.0%
Total calls 598.7K 699.9K -14.5%
Total put/call ratio 0.7 0.4 +77.7%
Largest owners Shares Value Change
Blackstone Holdings III 47.13M $2.54B 0.0%
FMR 4.11M $158.25M +0.6%
Vanguard 2.46M $94.59M -0.1%
Massachusetts Financial Services 2.31M $88.71M +83.6%
Wasatch Advisors 2.14M $82.25M +47.0%
Fred Alger Management 2.09M $80.41M +24.6%
3G Capital Partners 1.7M $65.38M +9.7%
Alger Associates 1.68M $0 0.0%
Sylebra Capital 1.48M $57.03M +15.1%
Kornitzer Capital Management 1.22M $46.95M +129.6%
Largest transactions Shares Bought/sold Change
Tiger Global Management 0 -1.78M EXIT
Massachusetts Financial Services 2.31M +1.05M +83.6%
Kornitzer Capital Management 1.22M +688.92K +129.6%
Wasatch Advisors 2.14M +683.44K +47.0%
Norges Bank 0 -675.8K EXIT
Mawer Investment Management 22.54K -632.15K -96.6%
MS Morgan Stanley 268.25K -549.57K -67.2%
Marshall Wace 235.56K -412.92K -63.7%
Fred Alger Management 2.09M +412.59K +24.6%
Atika Capital Management 0 -391.59K EXIT

Financial report summary

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Risks
  • Our business is dependent on key clients, and the loss of a key client could have an adverse effect on our business and results of operations.
  • We may fail to cost-effectively acquire new, high-growth clients, which would adversely affect our business, financial condition and results of operations.
  • If we 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, it could result in significant costs to us, the loss of our clients and damage to our corporate reputation.
  • Unauthorized or improper disclosure of personal or other sensitive information, or security breaches and incidents, whether inadvertent or purposeful, including as the result of a cyber-attack, could result in liability and harm our reputation, each of which could adversely affect our business, financial condition, results of operations and prospects.
  • Content security, including content moderation services, is a large portion of our business. The long-term impacts on the mental health and well-being of our employees doing this work are unknown. This work may lead to stress disorders and may create liabilities for us. This work is also subject to significant press and regulatory scrutiny. As a result, we may be
  • subject to negative publicity or liability, or face difficulties retaining and recruiting employees, any of which could have an adverse effect on our reputation, business, financial condition and results of operations.
  • Our failure to detect and deter criminal or fraudulent activities or other misconduct by our employees, or third parties such as contractors and consultants that may have access to our data, could result in loss of trust from our clients and negative publicity, which would have an adverse effect on our business and results of operations.
  • Global economic and political conditions, especially in the social media and meal delivery and transport industries from which we generate significant revenue, could adversely affect our business, results of operations, financial condition and prospects.
  • Our business is heavily dependent upon our international operations, particularly in the Philippines and India, and any disruption to those operations would adversely affect us.
  • Our business is subject to a variety of U.S. federal and state, as well as international laws and regulations, including those regarding privacy and data security, and we or our clients may be subject to regulations related to the processing of certain types of sensitive and confidential information. Any failure to comply with applicable privacy and data security laws and regulations could harm our business, results of operations and financial condition.
  • Our business depends in part on our capacity to invest in technology as it develops, and substantial increases in the costs of technology and telecommunications services or our inability to attract and retain the necessary technologists could have a material adverse effect on our business, financial condition, results of operations and prospects.
  • Our results of operations and ability to grow could be materially affected if we cannot 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 could have a material effect on our results of operations.
  • Our business depends on a strong brand and corporate reputation, and if we are not able to maintain and enhance our brand, our ability to expand our client base will be impaired and our business and operating results will be adversely affected.
  • Competitive pricing pressure may reduce our revenue or gross profits and adversely affect our financial results.
  • The success of our business depends on our senior management and key employees.
  • The ongoing COVID-19 pandemic, including the resulting global economic uncertainty and measures taken in response to the pandemic, has adversely impacted our business, financial condition and results of operations.
  • Natural events, health pandemics (including the COVID-19 pandemic) or epidemics, infrastructure breakdowns, wars, widespread civil unrest, terrorist attacks and other acts of violence involving any of the countries in which we or our clients have operations could adversely affect our operations and client confidence.
  • Our operations in emerging markets subject us to greater economic, financial, and banking risks than we would face in more developed markets.
  • We may face difficulties as we expand our operations into countries in which we have no prior operating experience and in which we may be subject to increased business and economic risks that could impact our results of operations.
  • We face substantial competition in our business.
  • We may acquire other companies in pursuit of growth, which may divert our management’s attention, result in dilution to our shareholders and consume resources that are necessary to sustain our business.
  • Our success largely depends on our ability to achieve our business strategies, and our results of operations and financial condition may suffer if we are unable to continually develop and successfully execute our strategies.
  • We have a relatively short history of operating at a large, global scale and may not be able to sustain our revenue growth rate or profitability in the future.
  • Increases in employee expenses as well as changes to labor laws could reduce our profit margin.
  • We may fail to attract, hire, train and retain sufficient numbers of skilled employees in a timely fashion at our sites to support our operations, which could have a material adverse effect on our business, financial condition, results of operations and prospects.
  • The inelasticity of our labor costs relative to short-term movements in client demand could adversely affect our business, financial condition and results of operations.
  • There may be adverse tax and employment law consequences if the independent contractor status of some of our personnel or the exempt status of our employees is successfully challenged.
  • If our clients decide to enter into or further expand insourcing activities in the future, or if current trends toward outsourcing services and/or outsourcing activities are reversed, it may materially adversely affect our business, results of operations, financial condition and prospects.
  • The consolidation of our clients or potential clients may adversely affect our business, financial condition, results of operations and prospects.
  • The terms of our client contracts or inaccurate forecasting may limit our profitability or enable our clients to reduce or terminate their use of our solutions.
  • We may be subject to liability claims if we breach our contracts, and our insurance may be inadequate to cover our losses.
  • If our current insurance coverage is or becomes insufficient to protect against losses incurred, our business, financial condition and results of operations may be adversely affected.
  • Others could claim that we infringe, violate, or misappropriate their intellectual property rights, which may result in substantial costs, diversion of resources and management attention and harm to our reputation.
  • If we fail to adequately protect our intellectual property rights and proprietary information in the United States and abroad, our competitive position could be impaired and we may lose valuable assets, experience reduced revenues and incur costly litigation to protect our rights.
  • Our solutions use open source software, and any failure to comply with the terms of one or more applicable open source licenses could adversely affect our business, subject us to litigation, and create potential liability.
  • Our business relies heavily on owned and third-party technology and computer systems, which subjects us to various uncertainties.
  • Our business prospects will suffer if we are unable to continue to anticipate our clients’ needs by adapting to market and technology trends.
  • We are subject to laws and regulations in the United States and other countries in which we operate, including export restrictions, economic sanctions, the FCPA, and similar anti-corruption laws. Compliance with these laws requires significant resources and non-compliance may result in civil or criminal penalties and other remedial measures.
  • Litigation or legal proceedings could expose us to significant liabilities and have a negative impact on our reputation or business.
  • Our global operations expose us to numerous legal and regulatory requirements and failure to comply with such requirements, including unexpected changes to such requirements, could adversely affect our results of operations.
  • From time to time, some of our employees spend significant amounts of time at our client’s sites, often in foreign jurisdictions, which expose us to certain risks.
  • Our business operations and financial condition could be adversely affected by negative publicity about offshore outsourcing or anti-outsourcing legislation in the countries in which our clients operate.
  • Increases in income tax rates, changes in income tax laws or disagreements with tax authorities could adversely affect our business, financial condition or results of operations.
  • If our favorable tax treatment is overturned, we may be subject to significant penalties.
  • Our profitability will suffer if we are not able to maintain asset utilization levels, price appropriately and control our costs.
  • Our operating results may fluctuate from quarter to quarter due to various factors.
  • Portions of our business have long sales cycles and long implementation cycles, which require significant resources and working capital.
  • If we are unable to fund our working capital requirements and new investments, our business, financial condition, results of operations and prospects could be adversely affected.
  • Our cash flows and results of operations may be adversely affected if we are unable to collect on billed and unbilled receivables from clients.
  • We are subject to risks associated with our incurrence of debt.
  • Indebtedness under our 2019 Credit Agreement bears interest based on the London Interbank Offered Rate (“LIBOR”), which may be subject to regulatory guidance and/or reform that could cause interest rates under our current or future debt agreements to perform differently than in the past or cause other unanticipated consequences.
  • We may be unable to raise additional capital, which could harm our ability to compete.
  • We track certain operational metrics with internal systems and tools and do not independently verify such metrics. Certain of our operational metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.
  • Our sites operate on leasehold property, and our inability to renew our leases on commercially acceptable terms or at all may adversely affect our results of operations.
  • Our Sponsor and our Co-Founders control us and their interests may conflict with ours or yours in the future.
  • Our amended and restated certificate of incorporation does not limit the ability of our Sponsor to compete with us, and our Sponsor may have investments in businesses whose interests conflict with ours.
  • We are an “emerging growth company,” and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our Class A common stock less attractive to investors.
  • If securities or industry analysts do not publish research or reports about our business, or if they downgrade their recommendations regarding our Class A common stock, our stock price and trading volume could decline.
  • If our operating and financial performance in any given period does not meet any guidance that we provide to the public, the market price of our Class A common stock may decline.
  • The market price of shares of our Class A common stock has been, and may continue to be, volatile and may decline regardless of our operating performance, which could cause the value of your investment to decline.
  • Because we have no current plans to pay cash dividends on our common stock, you may not receive any return on your investment unless you sell your Class A common stock for a price greater than that which you paid for it.
  • You may be diluted by the future issuance of additional Class A common stock or Class B common stock in connection with our incentive plans, acquisitions or otherwise.
  • We may issue preferred stock whose terms could materially adversely affect the voting power or value of our Class A common stock.
  • Anti-takeover provisions in our organizational documents and Delaware law might discourage or delay acquisition attempts for us that you might consider favorable.
  • Our amended and restated certificate of incorporation designates the Court of Chancery of the State of Delaware and the federal district courts of the United States of America as the sole and exclusive forums for certain types of actions and
  • proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with the Company or the Company’s directors, officers or other employees.
Management Discussion
  • Service revenue for the three months ended March 31, 2022 and 2021 was $239.7 million and $152.9 million, respectively. Service revenue for the three months ended March 31, 2022 increased by $86.8 million or 56.8% when compared to the three months ended March 31, 2021.
  • The year over year growth in Digital Customer Experience, AI Services and Content Security contributed 39.2%, 11.2% and 6.4%, respectively, of the total increase of 56.8% for the three months ended March 31, 2022. The 60.2% growth in Digital Customer Experience was primarily driven by an increase in volume of services to our existing customers and new customer wins. The 100.2% growth in AI Services was driven by an increase in volume of services to our existing customers and new customer wins. The 26.9% growth in Content Security was primarily driven by an increase in volume of services to our existing customers.
  • The majority of our service revenues are derived from contracts with clients who are either located in the United States, or with clients who are located outside of the United States but whereby the contract specifies payment in United States dollars. However, we deliver our services from multiple locations around the world.

Content analysis

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