TaskUs, Inc. has recently released its 10-K report, providing a detailed look into its financial performance and operations for the fiscal year ended December 31, 2023. TaskUs, Inc. is a provider of outsourced digital services and next-generation customer experience to various companies across industries such as e-commerce, FinTech, food delivery, gaming, HealthTech, social media, and streaming media. The company offers digital customer experience, trust and safety solutions, and artificial intelligence services.
In the fiscal year ended December 31, 2023, TaskUs recorded service revenue of $924.4 million, marking a 3.8% decrease from the previous year. However, the company saw an increase in net income, reaching $45.7 million, up from $40.4 million in the prior year. This increase was attributed to lower stock-based compensation expense, cost optimization, and the benefit from foreign currency exchange rate changes and forward contracts. Adjusted Net Income for the same period decreased by 11.4% to $126.5 million from $142.8 million in the previous year, while Adjusted EBITDA decreased by 1.1% to $220.8 million from $223.2 million in the prior year.
TaskUs continued to expand its client portfolio, winning 47 new clients in 2023, achieving a 35% new client win rate, and signing new statements of work with 58 current clients. The company also focused on cost optimization, allowing it to maintain margins and cash generation. Additionally, TaskUs launched and began implementing TaskGPT, a next-generation customer support technology, into its workflows internally and to support its clients.
The company expanded its presence from 27 sites in 13 countries as of December 31, 2022, to 28 sites in 12 countries as of December 31, 2023. TaskUs significantly increased its headcount outside of the U.S., the Philippines, and India, with approximately 6,000 employees as of December 31, 2023, particularly experiencing strong growth in Colombia and Mexico.
TaskUs highlighted the impact of macroeconomic trends, including global economic and geopolitical developments, increased inflation rates, interest rate changes, and foreign currency exchange rate changes, which had direct and indirect impacts on its results of operations. The company also discussed the development and impact of generative AI, including Large Language Models, which has the potential to impact most industries, including business process outsourcing, by automating tasks and streamlining workflows.
Key factors and trends affecting TaskUs' performance included new client wins, growing with current clients, expanded service offerings, geographic expansion, cost management, hiring and retention of employees, and foreign currency fluctuations. The company's focus on employee culture was emphasized as contributing to lower employee attrition levels, driving high client satisfaction and retention metrics, and ultimately leading to lower hiring and training costs and higher employee productivity. Following these announcements, the company's shares moved -1.8%, and are now trading at a price of $12.57. If you want to know more, read the company's complete 10-K report here.
