TaskUs(TASK) - 2024 Q4 - Annual Results

Financial Performance - TaskUs achieved a record full-year revenue of $995 million in 2024, representing a 17.1% year-over-year growth[2] - Fourth quarter service revenue reached$ 274.2 million, exceeding guidance by $4.9 million, with a 17.1% year-over-year increase[5] - Net income for Q4 2024 was$ 8.9 million, with a net income margin of 3.2%, down from 6.9% in Q4 2023[3] - Adjusted EBITDA for the full year 2024 was $209.9 million, achieving an Adjusted EBITDA margin of 21.1%[7] - TaskUs expects full-year 2025 revenue to be between$ 1.095 billion and $1.125 billion, with an Adjusted EBITDA margin of approximately 21%[2] - Service revenue for the year ended December 31, 2024, increased to$ 994.985 million, up from $924.365 million in 2023, representing a growth of 7.6%[15] - Net income for the year ended December 31, 2024, was$ 45.870 million, slightly up from $45.690 million in 2023, indicating a marginal increase of 0.4%[15] - Adjusted EBITDA for the year ended December 31, 2024, was$ 209.867 million, compared to $220.797 million in 2023, reflecting a decrease of 5%[21] - The company reported a net income margin of 4.6% for the year ended December 31, 2024, compared to 4.9% in 2023, indicating a slight decline[21] - Basic net income per share for the year ended December 31, 2024, was$ 0.52, up from $0.49 in 2023, reflecting a growth of 6.1%[15] - For the three months ended December 31, 2024, diluted EPS was$ 0.10, compared to $0.18 for the same period in 2023[29] - Adjusted EPS for the year ended December 31, 2024, was$ 1.29, slightly down from $1.32 in 2023[29] Cash Flow and Expenses - Free Cash Flow for Q4 2024 was$ 20.4 million, with a conversion rate of 37.9% from Adjusted EBITDA[5] - The company ended 2024 with approximately 200 clients, over half generating $1 million or more in revenue[6] - Total operating expenses for the year ended December 31, 2024, were$ 902.561 million, up from $829.327 million in 2023, which is an increase of 8.8%[15] - Cash and cash equivalents at the end of the period increased to$ 192.166 million from $125.776 million, showing a significant rise of 52.6%[19] - Free Cash Flow for the three months ended December 31, 2024, was$ 20,375 thousand, down from $31,684 thousand in 2023[31] - Adjusted Free Cash Flow for the year ended December 31, 2024, was$ 107,357 thousand, compared to $131,016 thousand in 2023[31] - Net cash provided by operating activities for the year ended December 31, 2024, was$ 138,888 thousand, down from $143,670 thousand in 2023[31] - The conversion of Adjusted EBITDA to Free Cash Flow was 37.9% for the three months ended December 31, 2024[31] Growth and Workforce - TaskUs added 4,200 teammates in 2024, bringing the total headcount to 59,000[6] - The company anticipates sustaining double-digit year-over-year growth in Q1 2025[4] Assets and Liabilities - Total assets as of December 31, 2024, reached$ 953.298 million, an increase from $864.202 million in 2023, marking a growth of 10.3%[17] - The company had a strong year-end balance sheet with$ 192.2 million in cash and $190 million in revolver capacity[7] Litigation and Non-Recurring Costs - The company incurred$ 8.393 million in litigation costs during the three months ended December 31, 2024, which were considered non-recurring[21] - The company recognized severance payments due to cost optimization measures during the period[26] - The non-GAAP effective tax rate applied was 33.3% for the three months ended December 31, 2024, compared to 28.3% for the same period in 2023[27] - The company incurred litigation costs considered non-recurring, impacting financial performance comparisons[27]