Why One Fund Made an $11 Million Bet on TaskUs Despite a Steep 32% Stock Drop

Company Overview - PSquared Asset Management acquired 635,084 shares of TaskUs valued at approximately $11.34 million as of September 30, representing 9.0% of the fund's reportable U.S. equity assets [2][3][7] - TaskUs reported a revenue of $1.14 billion and a net income of $81.43 million for the trailing twelve months [5] - The current share price of TaskUs is $11.51, reflecting a 32% decline over the past year [4][5] Business Performance - TaskUs experienced a 17% year-over-year revenue increase, reaching a record $298.7 million in the latest quarter [11] - The adjusted EBITDA margin for TaskUs was maintained at 21.2%, which is among the best in the industry [11] - Free cash flow for the quarter was reported at $42 million, converting about two-thirds of EBITDA into cash [11] Market Position and Strategy - TaskUs provides digital outsourcing services, including customer care, trust and safety solutions, content security, and AI data labeling for global enterprises [9][10] - The company serves clients across various sectors in the digital economy, such as e-commerce, fintech, and gaming, positioning itself as a competitive partner for fast-scaling enterprises [10] - Despite trading at a valuation that suggests structural decline, TaskUs is generating durable cash and expanding into higher-value work, indicating potential for future growth [12][13]