Shares of TaskUs (TASK 2.57%) rose 7.6% on Thursday after the outsourced digital services company announced better-than-expected quarterly results.
TaskUs is battling macro headwinds
TaskUs' fourth-quarter 2023 revenue declined 3.3% year over year to $234.3 million, translating to adjusted (non-GAAP) net income of $32.2 million, or $0.35 per share (up from $0.33 per share in the same year-ago period). Analysts, on average, were only expecting adjusted earnings of $0.31 per share on revenue of $226 million.
Trending toward its bottom line, TaskUs' adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) arrived at $59 million, around 25.2% of revenue and up 1.9% year over year.
TaskUs co-founder and CEO Bryce Maddock noted the company's revenue and adjusted EBITDA were well ahead of guidance amid "a challenging macroeconomic backdrop," adding that the company expanded into new areas including healthcare, banking, and financial services.
What's next for TaskUs investors?
Looking ahead to the new year, TaskUs issued guidance for full-year 2024 revenue in the range of $900 million to $950 million -- up a modest 0.1% at the midpoint and well ahead of consensus expectations for a decline of 1.1% from 2023 -- with adjusted EBITDA margin ranging from 22% to 23%. TaskUs also expects to generate free cash flow of $120 million to $130 million this year.
This was as solid a quarter as any investor could have hoped for TaskUs given its macro headwinds. And with the stock down more than 30% over the past year leading into this report, shares are rallying accordingly.
