TaskUs, Inc. (TASK) Reports Q1 2023 Financial Results and Approves $100M Increase in Share Repurchase Plan
Buybacks
May 9, 2023
May 8, 2023
TaskUs, Inc. (TASK), a global leader in providing outsourced digital services and customer experience, reported its financial results for the first quarter of 2023, ended on March 31. The company has also announced an increase in its share repurchase plan.
TaskUs, Inc. reported total revenue of $235.3 million for the first quarter of 2023, exceeding its guidance. The company also reported GAAP net income of $9.5 million, GAAP net income margin of 4.0%, and non-GAAP Adjusted Net Income of $32.5 million, non-GAAP Adjusted Net Income margin of 13.8%. Additionally, TaskUs, Inc. reported GAAP diluted earnings per share of $0.09, non-GAAP Adjusted EPS of $0.32, and Adjusted EBITDA of $55.2 million, Adjusted EBITDA margin of 23.5%. The company also reported net cash provided by operating activities of $43.7 million, Free Cash Flow of $38.4 million and 69.6% conversion of Adjusted EBITDA.
According to Co-Founder and CEO, Bryce Maddock, TaskUs, Inc. performed well in Q1, outperforming guidance. Maddock attributed this to clients leveraging the company's offshore delivery model to drive savings. He also noted that the company captured market share in growing markets such as Generative AI and HealthTech. However, Maddock expressed concerns about the continued volatility in the macro environment and updated the full-year outlook accordingly. He stated that the company took action to drive efficiencies into its business, resulting in strong Adjusted EBITDA margins and Free Cash Flow in the quarter. Maddock also expressed confidence in raising the company's Adjusted EBITDA margin outlook for the full year.
TaskUs, Inc. also announced an increase in its share repurchase plan. The board of directors approved a $100 million increase, bringing the total share repurchase plan authorization to $200 million, effective as of May 8, 2023. As of May 5, 2023, approximately $155.1 million remained available for share repurchases after giving effect to repurchases completed under the original share repurchase plan and the approved increase. The timing and total amount of share repurchases will depend upon various factors, including business, economic, and market conditions, corporate and regulatory requirements, prevailing stock prices, restrictions under the terms of loan agreements, and other considerations. The share repurchase program terminates on December 31, 2024, and may be modified, suspended, or discontinued at any time in the company's discretion. The program does not obligate the company to acquire any amount of Class A common stock.
Members of LevelFields received the alert of this event on May 8, 4:25 PM ET
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