Slide 1: Investor Presentation
Investor Presentation May 8, 2024 1 INVESTOR PRESENTATION
Slide 2: Disclaimers
Disclaimers Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Philippines and India; our failure to comply with applicable data privacy and security laws and regulations; Reform Act of 1995. Forward-looking stat
Slide 3: Outsourcing reimagined for the innovation age
OUR VISION OUR SOLUTIONS OUR RESULTS Outsourcing Digital Customer $227.5mm $50.6mm Experience Q1 2024 Revenue Q1 2024 Adj EBITDA1 reimagined for the innovation age 20%+ 22.2% Q1 YoY Increase Multi- Adj. EBITDA Margin1 Trust & Safety Service Line Clients Q1 2024 $3.0mm $47.6mm Revenue Above Free Cash
Slide 4: Continued Profitable Performance in Q1 2024
Continued Profitable Performance in Q1 2024 Other highlights Quarterly revenue / YoY growth ($ in millions) ● Beat Top-End Revenue and Adjusted EBITDA Guidance for Q1 2024 ● Announced AssistAI, our knowledge co-pilot technology based on the TaskGPT platform 22.2% Q1 2024 ● The only BPO named a Leader
Slide 5: Continued Profitable Performance in Q1 2024
Continued Profitable Performance in Q1 2024 Q1 key client wins Q1 highlights ● DCX contracts with 1) a provider of technology-enabled legal solutions, 2) a European-based financial services client leveraging our heloo acquisition capabilities, 3) a pan-European, +49,600 +3% Focused job-search applicat
Slide 6: Expanding Our Global Footprint
as of March 31, 2024 Expanding Our Global Footprint Our Headcount 27 sites and a fully-functional, scaled work at home solution across 12 countries ~49,600 Ireland - WFH Croatia - 2 sites Serbia - WFH USA - 3 sites Greece - 1 site Japan - WFH Taiwan - 1 Site Mexico - 1 site India - 5 sites Philippin
Slide 7: Service Offerings
Service Offerings INVESTOR PRESENTATION
Slide 8: Digital Offerings Powered by Differentiated Technology Solutions
Digital Offerings Powered by Differentiated Technology Solutions 66% 20% 14% Digital Trust + Safety AI Services Customer Experience Note: Percentages based on contribution to year-end December 2023 revenue 8 INVESTOR PRESENTATION
Slide 9: Digital Customer Experience
Digital Customer Experience 2023 Revenue Ever-increasing user expectations and competition necessitate 66% $606mm world class customer care. Founded on innovation and a people-first culture, TaskUs delivers excellent CX support consistently for the world’s leading brands. The digital nature of the su
Slide 10: Trust + Safety
Trust + Safety Content Moderation 2023 Revenue User generated content is growing at an exponential rate. 20% $187mm Wherever content is created by users, platforms must review and enforce policy guidelines to protect their communities. Today, TaskUs teammates review content posted by users and adver
Slide 11: AI Services
AI Services 2023 Revenue In our Al Services service line, our teammates collect, annotate, and 14% $132mm evaluate data to create the raw materials that artificial intelligence solutions, such as large language models and multimodal generative Al, are built on. Nearly every Al application being built
Slide 12: Why We Win & Growth Strategies
Why We Win & Growth Strategies INVESTOR PRESENTATION
Slide 13: Why We Win: Expertise, Culture, Speed
Why We Win We specialize in the unique innovative Expertise industry segments of our clients. We build teams of experts, processes, and tools for each segment. We have built a culture that feels much more Culture like our tech clients than the service providers we compete with. We are agile, flexible
Slide 14: Expertise: Focused on the World's Most Innovative Companies
Expertise: Focused on the World’s Most Innovative Companies Target markets Client highlights Entertainment + ~200 clients globally Social media Retail + E-commerce ● Gaming ● #1 audio and #1 video streaming service On Demand Travel + Technology & providers Streaming Media Transportation Generative A
Slide 15: Focused Growth Levers for 2024
Focused Growth Levers for 2024 Take Share From Competitors Leverage our Industry Expertise to Cross-Sell our Specialized Services We continue to see meaningful opportunities from recent Take advantage of the significant opportunities where we industry consolidation as clients diversify their vendor a
Slide 16: Strong Track Record of Sales Wins Across New and Existing Clients
Strong Track Record of Sales Wins Across New and Existing Clients Total Win Rate ($ basis) as %1 New Clients Won (#) > $10M Clients2 47 62% 60% 21 41 60% 40 36 17 16 55% 57% 56% 50% 8 45% 40% 2020 2021 2022 2023 2020 2021 2022 2023 2020 2021 2022 2023 1 Total Win Rate included opportunities from bot
Slide 17: Financial Performance
Financial Performance 17 INVESTOR PRESENTATION
Slide 18: Specialized Services Revenue Profile
Specialized Services Revenue Profile Revenue by service line (%) $478mm ● Digital Customer Experience $761mm ● Trust & Safety ● AI Services $960mm $924mm $917mm Revenue by delivery geography (%) $478mm ● Philippines ● United States $761mm ● India $960mm ● Rest of world $924mm $917mm 18 INVESTOR PRESE
Slide 19: Attractive Profitability and Margin Profile
Attractive Profitability and Margin Profile USD Million Adjusted EBITDA1 Adjusted Net Income1 24.7% 23.9% 23.2% 23.6% Margin (%) 22.4% $223 17.0% $221 $216 14.9% Margin (%) 14.5% 13.7% $188 13.2% $143 $129 $127 $121 $107 $69 Adjusted Adjusted Net EBITDA1 Income1 2020 2021 2022 2023 TTM Q1 ‘24 2020 202
Slide 20: Financial Highlights
Financial Highlights FY 2023 Q1 2024 Increasingly diversified revenue base Consistent track record of $924mm $227.5mm profitability Revenue Revenue Significant operating leverage (3.8)% (3.3)% Strong free cash flow Revenue Decline YoY Revenue Decline YoY Low leverage on balance sheet 23.9% 22.2% Capital
Slide 21: 2024 Outlook
2024 Outlook USD Millions 2024 Outlook1 Q2 Full Year Revenue $ 230 to $ 232 $ 925 to $ 950 Revenue growth (YoY) at midpoint 0.8% 1.4% Adjusted EBITDA Margin 22% to 22.5% 22% to 23% Free Cash Flow N/A $ 120 to $ 130 1 Financial outlook provided as of May 8, 2024 as part of TaskUs’ Q1 2024 earnings ca
Slide 22: Appendix
Appendix 22 INVESTOR PRESENTATION
Slide 23: Non-GAAP Reconciliations: Adjusted EBITDA
Non-GAAP Reconciliations Adjusted EBITDA USD Thousand Three months ended March 31, 2023 2024 Net income $ 9,509 $ 11,714 Provision for income taxes 5,969 6,508 Financing expenses 5,099 5,538 Depreciation 9,661 10,789 Amortization of intangible assets 5,124 4,985 EBITDA $ 35,362 $ 39,534 Transaction
Slide 24: Non-GAAP Reconciliations: Adjusted Net Income
Non-GAAP Reconciliations Adjusted Net Income USD Thousand Three months ended March 31, 2023 2024 Net income $ 9,509 $ 11,714 Amortization of intangible assets 5,124 4,985 Transaction costs 245 - Earn-out consideration 6,648 - Foreign currency losses (gains) (1,982) 1,014 Loss (gain) on disposal of a
Slide 25: Non-GAAP Reconciliations: Adjusted EPS
Non-GAAP Reconciliations Adjusted earnings per share Three months ended March 31, 2023 2024 GAAP diluted EPS $ 0.09 $ 0.13 Per share adjustments to net income 0.23 0.17 Adjusted EPS $ 0.32 $ 0.30 Weighted-average common stock outstanding - Diluted 100,952,573 91,849,886 25 INVESTOR PRESENTATION
Slide 26: Non-GAAP Reconciliations: Free Cash Flow
Non-GAAP Reconciliations Free Cash Flow USD Thousand Three months ended March 31, 2023 2024 Adjusted EBITDA $ 55,033 $ 50,605 Net cash provided by operating activities $ 43,683 $ 51,177 Purchase of property and equipment (5,244) (3,572) Free Cash Flow $ 38,439 $ 47,605 Conversion of Adjusted EBITDA
Slide 27: Non-GAAP Reconciliation: Revenue TTM Data
Non-GAAP Reconciliation Revenue Trailing Twelve Month (TTM) Data USD Thousand Three month ended Year ended Three months ended TTM Q1 ‘24 March 31, December 31, March 31, 2023 2023 2024 2024 Revenue by Service Offering Digital Customer Experience $ 157,136 $ 605,943 $ 143,491 $ 592,298 Trust and Safe
Slide 28: Non-GAAP Reconciliation: Adjusted EBITDA TTM
USD Thousand Three months Three months Year ended ended ended TTM Q1 ‘24 December 31, March 31, March 31, 2023 2023 2024 2024 Service revenue $ 235,306 $ 924,365 $ 227,470 $ 916,529 Net income $ 9,509 $ 45,690 $ 11,714 $ 47,895 Provision for Income taxes 5,969 29,342 6,508 29,881 Financing expenses
Slide 29: Non-GAAP Reconciliation: Adjusted Net Income TTM
USD Thousand Three months Three months Year ended ended ended TTM Q1 ‘24 December 31, March 31, March 31, 2023 2023 2024 2024 Service revenue $ 235,306 $ 924,365 $ 227,470 $ 916,529 Net income $ 9,509 $ 45,690 $ 11,714 $ 47,895 Amortization of intangible assets 5,124 20,346 4,985 20,207 Non-GAAP Tra
Slide 30: Reconciliations of Adjusted EBITDA
USD Thousand Year ended December 31, 2020 2021 2022 2023 Net Income (loss) $ 34,533 $ (58,698) $ 40,422 $ 45,690 Provision for (benefit from) income taxes 9,886 (2,265) 24,111 29,342 Financing expenses 7,482 6,504 11,921 21,717 Depreciation 20,155 29,038 37,915 40,391 Amortization of intangible asset
Slide 31: Reconciliations of Adjusted Net Income
USD Thousand Year ended December 31, 2020 2021 2022 2023 Net Income (loss) $ 34,533 $ (58,698) $ 40,422 $ 45,690 Amortization of intangible assets 18,847 18,847 19,882 20,346 Transaction costs 896 6,969 953 245 Earn-out consideration - - 9,729 7,863 Foreign currency (gains) losses (1,511) 809 7,967
Slide 32: Thank you all for your ongoing support and partnership
Thank you all for your ongoing support and partnership. We are already well on our way. 32 INVESTOR PRESENTATION