| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 4/6 |
| Past Performance | 2/6 |
| Financial Health | 4/6 |
| Dividends | 0/6 |
TASK Stock Overview
TaskUs, Inc. provides digital outsourcing services for companies worldwide.
TaskUs Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$15.45 |
| 52 Week High | US$85.49 |
| 52 Week Low | US$14.38 |
| Beta | 0 |
| 1 Month Change | -20.65% |
| 3 Month Change | -31.46% |
| 1 Year Change | -66.54% |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | -50.31% |
Recent News & Updates
Returns At TaskUs (NASDAQ:TASK) Are On The Way Up
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an...
TaskUs Q2 2022 Earnings Preview
TaskUs (NASDAQ:TASK) is scheduled to announce Q2 earnings results on Monday, August 8th, after market close. The consensus EPS Estimate is $0.33 (+3.1% Y/Y) and the consensus Revenue Estimate is $242.09M (+34.5% Y/Y). Over the last 1 year, TASK has beaten EPS estimates 50% of the time and has beaten revenue estimates 100% of the time. Over the last 3 months, EPS estimates have seen 5 upward revisions and 2 downward. Revenue estimates have seen 5 upward revisions and 3 downward.
TaskUs Produces Enviable Growth And Profits Amid Economic Slowdown
TaskUs went public in June 2021, raising approximately $127 million in an IPO. The firm provides digital outsourced services to enterprises worldwide. TASK has produced enviable growth and profit results and appears positioned for growth ahead; the stock looks undervalued. We don't know the net effect of a global slowdown on its growth trajectory, so I'm Neutral on TASK, though with an eye to putting it on a watchlist for close monitoring. A Quick Take On TaskUs TaskUs (TASK) went public in June 2021, raising approximately $127 million in gross proceeds from an IPO that was priced at $23.00 per share. The firm provides enterprises with a variety of outsourced digital services for customer care and content security applications. While TASK is generating impressive growth and profits, a global slowdown may exert unpredictable effects on its near-term results, and we don't know whether a slowdown will help or hurt the company's net operational results. For that, I suggest that interested investors put TASK on a watchlist for close consideration in the period ahead. Until we learn more about its trajectory in a slowing growth environment, I'm on Hold for TaskUs. TaskUs Overview New Braunfels, Texas-based TaskUs was founded to provide labor outsourcing services to enterprises seeking to accommodate increased demand. Management is headed by co-founder and CEO Bryce Maddock, who received a B.A. in International Business from New York University. The company's primary offerings include: Digital Customer Experience Content Security AI Operations The company provides services to firms in industries including general technology, streaming media, food delivery and ride sharing, financial technology and health technology. TASK pursues client relationships in high-priority industry verticals such as various technology verticals and food delivery and ride sharing. TaskUs' Market & Competition According to a 2021 market research report by Grand View Research, the global market for business process outsourcing was an estimated $232 billion in 2020 and is expected to reach $446 billion by 2028. This represents a forecast of 8.5% from 2021 to 2028. The main drivers for this expected growth are an increasing usage of digital tools and delocalized talent to maximize business efficiencies. Also, the versatility of outsourcing services is increasing as other types of service process automation and intelligence adds to return on investment for enterprises. Below is a chart showing the historical and expected future growth trajectory of process outsourcing services in the U.S.: U.S. BPO Market (Grand View Research) The Asia Pacific market is forecast to see the highest CAGR from 2021 to 2028, and the chart below indicates the breakdown of that market by end-use industry in 2020: Asia Pacific BPO Market (Grand View Research) Major competitive or other industry participants include: 24/7 Intouch Appen TDCX Accenture Genpact Tata Consultancy Cognizant Teleperformance Telus International TTEC VXI Sutherland TaskUs' Recent Financial Performance Total revenue by quarter has grown impressively over the past 5 quarters: 5 Quarter Total Revenue (Seeking Alpha) Gross profit by quarter has grown but recently plateaued in Q1 2022: 5 Quarter Gross Profit (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have trended higher over the past 5 quarters: 5 Quarter Selling, G&A % Of Revenue (Seeking Alpha) Operating income by quarter has fluctuated but remained positive, as the chart shows below: 5 Quarter Operating Income (Seeking Alpha) Earnings per share (Diluted) have been positive in 4 of the last 5 quarters, with Q2 2021 being negative due to stock-based compensation expense related to the firm's IPO: 5 Quarter Earnings Per Share (Seeking Alpha) (All data in above charts is GAAP) In the past 12 months, TASK's stock price has dropped 36.8% vs. the U.S. S&P 500 Index's drop of around 7.9%, as the chart below indicates: 52 Week Stock Price (Seeking Alpha) Valuation And Other Metrics For TaskUs Below is a table of relevant capitalization and valuation figures for the company: Measure Amount Enterprise Value $2,040,000,000 Market Capitalization $1,880,000,000 Enterprise Value/Sales ((TTM)) 2.41 Price/Sales ((TTM)) 2.19 Revenue Growth Rate ((TTM)) 60.37% Operating Cash Flow ((TTM)) -$35,710,000 CapEx Ratio (Op C.F./CapEx) -0.53 Earnings Per Share (Fully Diluted) -$0.75 (Source - Seeking Alpha) Below is an estimated DCF (Discounted Cash Flow) analysis of the firm's projected growth and earnings: Estimated DCF Calculation (GuruFocus) Assuming conservative DCF parameters, the firm's shares would be valued at approximately $26.30 versus the current price of $19.61, indicating they are potentially currently undervalued, with the given earnings, growth and discount rate assumptions of the DCF. The Rule of 40 is a software industry rule of thumb that says that as long as the combined revenue growth rate and EBITDA percentage rate equal or exceed 40%, the firm is on an acceptable growth/EBITDA trajectory. TASK's most recent GAAP Rule of 40 calculation was 77% as of Q1 2022, so the firm is performing quite well in this regard, per the table below: Rule of 40 - GAAP Calculation Recent Rev. Growth % 60% GAAP EBITDA % 17% Total 77% (Source - Seeking Alpha) Commentary On TaskUs In its last earnings call (Source - Seeking Alpha), covering Q1 2022's results, management highlighted its content security segment, which has seen volume growth with its existing client base and for which the firm expects to return to growth in 2023. AI services revenue doubled year-over-year as a result of expansions of existing and new clients in the sectors of travel, social media and autonomous vehicle industries. The company also recently launched new specialized services within its Risk and Response segment as well and is seeing customer uptake for applications such as payment risk operations, anti-money laundering ((AML)) and know your customer ((KYC)). Notably, the firm has increased its focus on M&A as a strategic driver of growth. To that end, it recently acquired heloo, to spearhead its delivery of outsourced specialized services in the European market region.
Shareholder Returns
| TASK | US IT | US Market | |
|---|---|---|---|
| 7D | -4.2% | 1.0% | 1.4% |
| 1Y | -66.5% | -25.4% | -8.4% |
Return vs Industry: TASK underperformed the US IT industry which returned -25.9% over the past year.
Return vs Market: TASK underperformed the US Market which returned -9% over the past year.
Price Volatility
| TASK volatility | |
|---|---|
| TASK Average Weekly Movement | 13.4% |
| IT Industry Average Movement | 8.9% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: TASK is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.
Volatility Over Time: TASK's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2008 | 40,100 | Bryce Maddock | https://www.taskus.com |
TaskUs, Inc. provides digital outsourcing services for companies worldwide. It offers digital customer experience that consists of omni-channel customer care services primarily delivered through digital channels; and other solutions, including customer care services for new product or market launches, trust and safety solutions, and customer acquisition solutions. The company also offers content security services, such as review and disposition of user and advertiser generated content, which include removal or labeling of policy violating, and offensive or misleading content; and artificial intelligence (AI) solutions that consist of data labeling, annotation, and transcription services for training and tuning AI algorithms through the process of machine learning.
TaskUs Fundamentals Summary
| TASK fundamental statistics | |
|---|---|
| Market Cap | US$1.52b |
| Earnings (TTM) | US$50.05m |
| Revenue (TTM) | US$913.95m |
30.3x
P/E Ratio1.7x
P/S RatioIs TASK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| TASK income statement (TTM) | |
|---|---|
| Revenue | US$913.95m |
| Cost of Revenue | US$511.02m |
| Gross Profit | US$402.93m |
| Other Expenses | US$352.87m |
| Earnings | US$50.05m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.51 |
| Gross Margin | 44.09% |
| Net Profit Margin | 5.48% |
| Debt/Equity Ratio | 61.2% |
How did TASK perform over the long term?
See historical performance and comparisonValuation
Is TASK undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for TASK?
Other financial metrics that can be useful for relative valuation.
| What is TASK's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$1.52b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 1.9x |
| Enterprise Value/EBITDA | 11.9x |
| PEG Ratio | 0.6x |
Price to Earnings Ratio vs Peers
How does TASK's PE Ratio compare to its peers?
| TASK PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 21.6x | ||
CSGS CSG Systems International | 40.5x | 35.6% | US$1.8b |
EVTC EVERTEC | 15.6x | 2.7% | US$2.3b |
TDCX TDCX | 13.8x | 20.1% | US$1.0b |
CSVI Computer Services | 16.6x | n/a | US$1.0b |
TASK TaskUs | 30.3x | 47.8% | US$1.5b |
Price-To-Earnings vs Peers: TASK is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the peer average (21.6x).
Price to Earnings Ratio vs Industry
How does TASK's PE Ratio compare vs other companies in the US IT Industry?
Price-To-Earnings vs Industry: TASK is expensive based on its Price-To-Earnings Ratio (30.3x) compared to the US IT industry average (30.2x)
Price to Earnings Ratio vs Fair Ratio
What is TASK's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 30.3x |
| Fair PE Ratio | 49.1x |
Price-To-Earnings vs Fair Ratio: TASK is good value based on its Price-To-Earnings Ratio (30.3x) compared to the estimated Fair Price-To-Earnings Ratio (49.1x).
Share Price vs Fair Value
What is the Fair Price of TASK when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: TASK ($15.45) is trading below our estimate of fair value ($38.05)
Significantly Below Fair Value: TASK is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.
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Future Growth
How is TaskUs forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
47.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TASK's forecast earnings growth (47.8% per year) is above the savings rate (1.9%).
Earnings vs Market: TASK's earnings (47.8% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: TASK's earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TASK's revenue (13.3% per year) is forecast to grow faster than the US market (7.8% per year).
High Growth Revenue: TASK's revenue (13.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TASK's Return on Equity is forecast to be low in 3 years time (17%).
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Past Performance
How has TaskUs performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-42.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TASK has a high level of non-cash earnings.
Growing Profit Margin: TASK became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: TASK has become profitable over the past 5 years, growing earnings by -42.8% per year.
Accelerating Growth: TASK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: TASK has become profitable in the last year, making it difficult to compare its past year earnings growth to the IT industry (16.4%).
Return on Equity
High ROE: TASK's Return on Equity (11.5%) is considered low.
Discover strong past performing companies
Financial Health
How is TaskUs's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: TASK's short term assets ($317.1M) exceed its short term liabilities ($192.0M).
Long Term Liabilities: TASK's short term assets ($317.1M) exceed its long term liabilities ($256.9M).
Debt to Equity History and Analysis
Debt Level: TASK's net debt to equity ratio (37.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if TASK's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TASK's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: TASK's interest payments on its debt are well covered by EBIT (12.8x coverage).
Balance Sheet
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Dividend
What is TaskUs's current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TASK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate TASK's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TASK's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TASK's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as TASK has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Bryce Maddock (35 yo)
13.67yrs
Tenure
US$36,636,287
Compensation
Mr. Bryce Maddock Co-Founded of TaskUs, LLC in December 2008 and serves as its Chief Executive Officer since December 2008 and Director since October 2018. Mr. Maddock's entrepreneurial streak began at age...
CEO Compensation Analysis
Compensation vs Market: Bryce's total compensation ($USD36.64M) is above average for companies of similar size in the US market ($USD5.41M).
Compensation vs Earnings: Bryce's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: TASK's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: TASK's board of directors are considered experienced (3.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
TaskUs, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: TaskUs, Inc.
- Ticker: TASK
- Exchange: NasdaqGS
- Founded: 2008
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Implied Market Cap: US$1.517b
- Shares outstanding: 98.19m
- Website: https://www.taskus.com
Number of Employees
Location
- TaskUs, Inc.
- 1650 Independence Drive
- Suite 100
- New Braunfels
- Texas
- 78132
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/18 00:00 |
| End of Day Share Price | 2022/08/18 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.