Slide 1: Investor Presentation
Investor Presentation November 7, 2024 1 INVESTOR PRESENTATION
Slide 2: Disclaimers
Disclaimers Forward Looking Statements Non-GAAP Measures This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation This presentation includes certain financial measures not presented in accordance with United States generally Reform Act of 1995. F
Slide 3: Outsourcing reimagined for the innovation age
OUR VISION OUR SOLUTIONS OUR RESULTS Outsourcing Digital Customer $255.3mm $54.2mm Experience Q3 2024 Revenue Q3 2024 Adj. EBITDA1 reimagined for the innovation age 13.2% 21.2% Year-over-Year Adj. EBITDA Margin1 Trust & Safety Q3 2024 Rev. Growth Q3 2024 $9.3mm $82.2mm Revenue Above Adj. Free Cash F
Slide 4: Continued Profitable Performance in Q3 2024
Continued Profitable Performance in Q3 2024 Highlights $260 Quarterly revenue / YoY growth ($ in millions) ● Beat top-end revenue guidance for Q3 by ~$9 million, delivering year-over-year growth of ~13% $240 ● Increased full-year revenue guidance midpoint by $24 million to $989 million 21.2% $255 Q3
Slide 5: Continued Profitable Performance in Q3 2024
Continued Profitable Performance in Q3 2024 Q3 key client wins Q3 highlights ● DCX: 1) a performance-driven scale-up in Colombia of a Q2 competitive takeaway with an international developer of a cloud-based website and e-commerce solutions, 2) an expansion of our ~54,800 +6% Focused India-based servi
Slide 6: Expanding Our Global Footprint
Our Headcount Expanding Our Global Footprint as of September 30, 2024 28 sites and a fully-functional, scaled work at home solution across 12 countries ~54,800 Ireland - WFH Croatia - 2 sites Serbia - WFH USA - 2 sites Greece - 1 site Japan - WFH Taiwan - 1 Site Mexico - 1 site India - 5 sites Phili
Slide 7: Service Offerings
Service Offerings INVESTOR PRESENTATION
Slide 8: Digital Offerings Powered by Differentiated Technology Solutions
Digital Offerings Powered by Differentiated Technology Solutions 63% 24% 13% Digital Trust + Safety AI Services Customer Experience Note: Percentages based on revenue contribution during the last twelve months ended September 30, 2024 8 INVESTOR PRESENTATION
Slide 9: Digital Customer Experience
Digital Customer Experience Ever-increasing user expectations and competition necessitate LTM Sept ‘24 world class customer care. Founded on innovation and a people-first 63% Revenue culture, TaskUs delivers excellent CX support consistently for the $599mm world’s leading brands. The digital nature o
Slide 10: Trust + Safety
Trust + Safety Content Moderation User generated content is growing at an exponential rate. LTM Sept ‘24 Wherever content is created by users, platforms must review 24% Revenue and enforce policy guidelines to protect their communities. $230mm Today, TaskUs teammates review content posted by users a
Slide 11: AI Services
AI Services In our Al Services service line, our teammates collect, annotate, and evaluate data to create the raw materials that artificial intelligence LTM Sept ‘24 solutions, such as large language models and multimodal generative 13% Revenue Al, are built on. Nearly every Al application being buil
Slide 12: Why We Win & Growth Strategies
Why We Win & Growth Strategies INVESTOR PRESENTATION
Slide 13: Why We Win: Expertise, Speed, Culture
Why We Win Specialization not scale. We specialize in the Expertise unique innovative industry segments of our clients. We identify emerging demand for specialized services and build teams of experts, processes, and tools for each segment. Our clients are growing exponentially. So we Speed are agile
Slide 14: Expertise: Focused on the World's Most Innovative Companies
Expertise: Focused on the World’s Most Innovative Companies Target markets Client highlights Entertainment + ~200 clients globally Social media Retail + E-commerce ● Gaming ● #1 audio and #1 video streaming service On Demand Travel + Technology + providers Streaming Media Transportation Generative A
Slide 15: Focused Growth Levers for 2024
Focused Growth Levers for 2024 Take Share From Competitors Leverage our Industry Expertise to Cross-Sell our Specialized Services We continue to see meaningful opportunities from recent Take advantage of the significant opportunities where we industry consolidation as clients diversify their vendor a
Slide 16: Strong Track Record of Sales Wins Across New and Existing Clients
Strong Track Record of Sales Wins Across New and Existing Clients Total Win Rate ($ 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 $955mm Revenue by delivery geography (%) $478mm ● Philippines ● United States $761mm ● India $960mm ● Rest of world $924mm $955mm 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% 22.5% Margin (%)1 22.4% $223 17.0% $221 $215 14.9% Margin (%)1 14.5% 13.7% $188 12.8% $143 $129 $127 $122 $107 $69 Adjusted Adjusted Net EBITDA1 Income1 2020 2021 2022 2023 TTM Q3 ‘24 2020 2
Slide 20: Attractive Cash Flow Profile
Attractive Cash Flow Profile1 59.3% 53.0% 46.3% 1.3 $131 Adjusted 28.1% 25.9% $114 EBITDA $103 Conversion %1 0.9 Net Debt to Adjusted Leverage 0.6 0.6 Ratio $49 0.4 $30 Adjusted Free Cash Flow1 2020 2021 2022 2023 TTM Q3 ‘24 2020 2021 2022 2023 TTM Q3 ‘24 1 See Appendix for reconciliation to most com
Slide 21: Financial Highlights
Financial Highlights FY 2023 Q3 2024 Increasingly diversified revenue base Consistent track record of $924mm $255.3mm profitability Revenue Revenue Significant operating leverage (3.8)% +13.2% Strong free cash flow Revenue Decline YoY Revenue Increase YoY Low leverage on balance sheet 23.9% 21.2% Capita
Slide 22: 2024 Outlook
2024 Outlook USD Millions 2024 Outlook1, 2 Q4 Full Year Revenue $267.3 to $269.3 $988 to $990 Revenue growth (YoY) at midpoint 14.5% 7.0% Adjusted EBITDA Margin1 ~21.1% ~21.5% Adjusted Free Cash Flow2 N/A ~$110 1 Financial outlook provided as of November 7, 2024 as part of TaskUs’ Q3 2024 earnings c
Slide 23: Appendix
Appendix 23 INVESTOR PRESENTATION
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted EBITDA USD Thousand Three months ended Nine months ended September 30, September 30, 2023 2024 2023 2024 Net income $ 9,772 $ 12,699 $ 29,413 $ 37,011 Provision for income taxes 4,565 5,093 17,925 18,938 Financing expenses 5,712 5,504 16,141 16,532 Depreciation 9,72
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted Net Income USD Thousand Three months ended Nine months ended September 30, September 30, 2023 2024 2023 2024 Net income $ 9,772 $ 12,699 $ 29,413 $ 37,011 Amortization of intangible assets 5,027 4,988 15,276 14,955 Transaction costs - - 245 - Earn-out consideration
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted earnings per share Three months ended Nine months ended September 30, September 30, 2023 2024 2023 2024 GAAP diluted EPS $ 0.10 $ 0.14 $ 0.30 $ 0.40 Per share adjustments to net income 0.22 0.23 0.66 0.58 Adjusted EPS $ 0.32 $ 0.37 $ 0.96 $ 0.98 Weighted-average com
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free Cash Flow and Adjusted Free Cash Flow USD Thousand Three months ended Nine months ended September 30, September 30, 2023 2024 2023 2024 Adjusted EBITDA $ 52,452 $ 54,215 $ 161,781 $ 156,072 Net cash provided by operating activities $ 21,682 $ 17,019 $ 103,895 $ 98,230 P
Slide 28: Revenue Reconciliation
Revenue Reconciliation Revenue Trailing Twelve Month (TTM) Data USD Thousand Nine month ended Year ended Nine months ended TTM Q3 ‘24 September 30, December 31, September 30, 2023 2023 2024 2024 Revenue by Service Offering Digital Customer Experience $ 454,004 $ 605,943 $ 447,013 $ 598,952 Trust and
Slide 29: Non-GAAP Reconciliation
USD Thousand Nine months Nine months Year ended ended ended TTM Q3 ‘24 December 31, September 30, September 30, 2023 2023 2024 2024 Service Revenue $ 690,101 $ 924,365 $ 720,743 $ 955,007 Net income $ 29,413 $ 45,690 $ 37,011 $ 53,288 Provision for Income taxes 17,925 29,342 18,938 30,355 Financing
Slide 30: Non-GAAP Reconciliation
USD Thousand Nine months Nine months Year ended ended ended TTM Q3 ‘24 December 31, September 30, September 30, 2023 2023 2024 2024 Service revenue $ 690,101 $ 924,365 $ 720,743 $ 955,007 Net income $ 29,413 $ 45,690 $ 37,011 $ 53,288 Amortization of intangible assets 15,276 20,346 14,955 20,025 Non
Slide 31: Free Cash Flow and Adjusted Free Cash Flow Reconciliation
Free Cash Flow and Adjusted Free Cash Flow Reconciliation Trailing Twelve Month (TTM) Data USD Thousand Nine month ended Year ended Nine months ended TTM Q3 ‘24 September 30, December 31, September 30, 2023 2023 2024 2024 Adjusted EBITDA $ 161,781 $ 220,797 $ 156,072 $ 215,088 Net cash provided by o
Slide 32: 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 33: 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 34: Reconciliations of Free Cash Flow and Adjusted Free Cash Flow
USD Thousand Year ended December 31, 2020 2021 2022 2023 Adjusted EBITDA $ 106,887 $ 187,910 $ 223,204 $ 220,797 Reconciliations Net cash provided by operating activities $ 58,873 ($ 32,674) $ 147,095 $ 143,670 (28,883) Purchase of property and equipment (59,363) (43,758) (30,995) of Free Cash Free
Slide 35: Definitions of Non-GAAP Metrics
Definitions of Non-GAAP Metrics EBITDA and Adjusted EBITDA EBITDA is a non-GAAP profitability measure that represents net income or loss for the period before the impact of the benefit from or provision for income taxes, financing expenses, depreciation, and amortization of intangible assets. EBITDA eli
Slide 36: 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. 36 INVESTOR PRESENTATION