What happened
Shares of TaskUs (TASK -0.27%), an outsourcing services company, were soaring this morning after the company reported better-than-expected fourth-quarter 2021 results.
Investors sent the tech stock up by 12.4% as of 10:23 a.m. ET.
So what
TaskUs reported non-GAAP earnings per share of $0.34 in the fourth quarter, which outpaced analysts' consensus estimate of $0.33 per share. The company's fourth-quarter sales of $226.8 million, an increase of 63% from the year-ago quarter, also beat Wall Street's expectation of $216 million.
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CEO Bryce Maddock said in a press release, "We ended the year strong, delivering 63% revenue growth and coming just shy of 25% Adjusted EBITDA margins in the fourth quarter."
Not only did the outsourcing services company top Wall Street's estimates for both revenue and earnings, but it also issued 2022 revenue guidance that was far ahead of what analysts were expecting.
Management said that full-year sales will be in the range of $980 million to $1 billion. Meanwhile, analysts' consensus estimate for 2022 revenue has been $956.1 million.
Now what
Investors should certainly be happy with TaskUs' performance in the fourth quarter. The company is not only increasing sales and earnings at a healthy clip, but it's also building out a strong customer base.
TaskUs' net revenue retention rate was 141% in the quarter, and the company ended the year with 72 clients with revenue of at least $1 million, up from 46 in 2020.
While today's gains are great, investors might want to brace for some more volatility as the market processes ongoing information about rising inflation, the potential for interest rate hikes by the Federal Reserve, and the current conflict in Ukraine.
