TaskUs(TASK) - 2023 Q4 - Annual Results

Financial Performance - Fourth quarter total revenue was $234.3 million, a year-over-year decrease of 3.3%[5] - GAAP net income for the fourth quarter was $16.3 million, with a GAAP net income margin of 6.9%[5] - Non-GAAP Adjusted Net Income was $32.2 million, with a non-GAAP Adjusted Net Income margin of 13.8%[5] - Adjusted EBITDA for the fourth quarter was $59.0 million, representing an Adjusted EBITDA margin of 25.2%[5] - Free Cash Flow for the fourth quarter was $31.7 million, with a conversion of Adjusted EBITDA at 53.7%[5] - Service revenue for the year ended December 31, 2023, was $924,365, a decrease of 3.8% from $960,489 in 2022[17] - Operating income increased to $95,038 for the year ended December 31, 2023, compared to $83,897 in 2022, reflecting a growth of 13.6%[17] - Net income for the year ended December 31, 2023, was $45,690, up 13.5% from $40,422 in 2022[17] - Adjusted EBITDA for the year ended December 31, 2023, was $220,797, slightly down from $223,204 in 2022, resulting in an adjusted EBITDA margin of 23.9%[23] - Basic net income per share increased to $0.49 for the year ended December 31, 2023, from $0.41 in 2022, representing a growth of 19.5%[17] - GAAP diluted EPS for Q4 2023 was $0.18, compared to $0.16 in Q4 2022, and $0.48 for the full year 2023, up from $0.39 in 2022[31] - Adjusted EPS for Q4 2023 was $0.35, an increase from $0.33 in Q4 2022, with full year 2023 at $1.32, slightly down from $1.39 in 2022[31] Client Growth and Expectations - The company ended 2023 with nearly 200 clients, including 97 clients generating at least $1 million in revenue[4] - TaskUs added 47 new clients in 2023, the highest number since 2018[6] - The company expects first quarter 2024 revenue to be between $222.5 million and $224.5 million, with a year-over-year decline of approximately 5.0% at the midpoint[8] - For the full year 2024, revenue is projected to be between $900 million and $950 million, indicating a year-over-year growth of 0.1% at the midpoint[8] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $125,776, down from $133,992 at the end of 2022[21] - The company reported a net cash provided by operating activities of $143,670 for the year ended December 31, 2023, compared to $147,095 in 2022[21] - Free Cash Flow for Q4 2023 was $31.684 million, up from $24.883 million in Q4 2022, with full year 2023 at $112.675 million, compared to $103.337 million in 2022[33] - Net cash provided by operating activities for Q4 2023 was $39.775 million, an increase from $32.631 million in Q4 2022[33] Balance Sheet - Total assets decreased to $864,202 as of December 31, 2023, from $902,015 in 2022, a decline of 4.2%[19] - Total liabilities decreased to $423,491 as of December 31, 2023, from $446,402 in 2022, a reduction of 5.1%[19] Operational Adjustments - The company undertook cost optimization measures resulting in severance payments, impacting net income[29] - The company recognized earn-out consideration as compensation expense related to acquisitions, affecting net income[28] - Adjusted Net Income for the periods presented excludes certain items to enhance comparability, including stock-based compensation and foreign currency impacts[37] - The company aims to provide additional insights into cash generation and profitability through non-GAAP measures, reflecting management's focus on operational performance[41] New Initiatives - TaskUs announced the launch of AssistAI, a knowledge assist technology built on the TaskGPT platform[6]