What happened
Shares of online customer service outfit TaskUs (TASK 1.09%) are up 17.5% at midday today following the release of the company's second-quarter results. Revenue improved 57% year over year, driving even bigger growth in operating EBITDA.
So what
For the three-month stretch ending in June -- its first quarter as a publicly traded entity -- TaskUs turned $180.0 million worth of sales into adjusted EBITDA of $44.1 million, up from the year-ago comps of $144.4 million and $26.4 million, respectively.
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The current quarter should be similarly impressive. The company is guiding for a top line of between $182.0 million and $186.0 million, which would translate into around 50% year-over-year growth. It expects its EBITDA margin rate to contract just a little before recovering during the final quarter of the year.
Now what
Unusually for a recently IPO'd company, not only are shares of TaskUs trading above their initial public offering price of $23.00 per share, but the current price (near $37.00) pushes the stock above its post-IPO surge to a high of $32.94 and also its late-June peak of $35.62. The unlikely bullishness is almost intoxicating.
And that's the rub for this relatively unfollowed, unknown, and thinly traded name. There's plenty of profit-taking potential that's yet to play out, particularly in light of the stock's opening gap on Wednesday. Would-be buyers may want to let the dust settle on this still-volatile name before venturing in.
