Outsourced digital services provider TaskUs Q3 profit beats estimates on AI services demand

Reuters
Nov 07
Outsourced digital services provider TaskUs Q3 profit beats estimates on AI services demand

Overview

  • TaskUs Q3 revenue grows 17% yr/yr, beating analyst expectations

  • Adjusted EPS for Q3 beats analyst estimates

  • Adjusted EBITDA for Q3 misses analyst expectations

Outlook

  • TaskUs expects Q4 revenue between $302.4 mln and $304.4 mln

  • Company anticipates full-year revenue of $1.173 bln to $1.175 bln

  • TaskUs projects full-year Adjusted Free Cash Flow of ~$100 mln

Result Drivers

  • AI SERVICES GROWTH - TaskUs' AI Services segment grew over 50% year-over-year, driving overall revenue growth

  • TRUST + SAFETY GROWTH - Trust + Safety services saw nearly 20% year-over-year revenue growth, contributing to overall performance

  • INVESTMENT IN AI - TaskUs plans to increase investments in Generative AI services to support clients in the AI era

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$298.70 mln

$287.40 mln (5 Analysts)

Q3 Adjusted EPS

Beat

$0.42

$0.39 (6 Analysts)

Q3 Adjusted Net Income

Beat

$39 mln

$37.50 mln (2 Analysts)

Q3 Adjusted EBITDA

Miss

$63.50 mln

$66.90 mln (2 Analysts)

Q3 Adjusted EBITDA Margin

21.20%

Q3 Free Cash Flow

$42 mln

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the business support services peer group is "buy."

  • Wall Street's median 12-month price target for Taskus Inc is $16.50, about 24.3% above its November 6 closing price of $12.49

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBwbbxcVca

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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