RBC Capital's analyst, Daniel Perlin, has adjusted the price target for TaskUs (TASK, Financial), bringing it down from $20 to $16.50. This change aligns with the company's recent decision to be taken private by Blackstone at $16.50 per share in cash. Additionally, TaskUs has rescinded its financial guidance and canceled its scheduled conference call, prompting this revised outlook from the firm. Investors have been informed of these developments in a recent research note by the analyst.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 4 analysts, the average target price for TaskUs Inc (TASK, Financial) is $18.50 with a high estimate of $21.00 and a low estimate of $16.50. The average target implies an upside of 11.08% from the current price of $16.66. More detailed estimate data can be found on the TaskUs Inc (TASK) Forecast page.
Based on the consensus recommendation from 6 brokerage firms, TaskUs Inc's (TASK, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TaskUs Inc (TASK, Financial) in one year is $18.20, suggesting a upside of 9.28% from the current price of $16.655. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TaskUs Inc (TASK) Summary page.
TASK Key Business Developments
Release Date: February 26, 2025
- Q4 Revenue: $274.2 million, a 17.1% year-over-year increase.
- Full-Year 2024 Revenue: $995 million, a 7.6% increase year over year.
- Q4 Adjusted EBITDA: $53.8 million, with a margin of 19.6%.
- Full-Year 2024 Adjusted EBITDA: $209.9 million, with a margin of 21.1%.
- Q4 Adjusted Free Cash Flow: $107.4 million, slightly below guidance.
- Q4 Digital Customer Experience Revenue: $164.8 million, an 8.5% year-over-year increase.
- Q4 Trust and Safety Revenue: $70 million, a 34% year-over-year increase.
- Q4 AI Services Revenue: $39.4 million, a 31% year-over-year increase.
- Cash and Cash Equivalents: $192.2 million as of December 31, 2024.
- Full-Year 2025 Revenue Guidance: $1.095 billion to $1.125 billion.
- Full-Year 2025 Adjusted EBITDA Margin Guidance: Approximately 21%.
- Q1 2025 Revenue Guidance: $270 million to $272 million.
- Q1 2025 Adjusted EBITDA Margin Guidance: Approximately 20%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- TaskUs Inc (TASK, Financial) delivered $274.2 million in Q4 revenue, surpassing guidance by $4.9 million and marking a 17.1% year-over-year growth.
- The company achieved record-breaking revenue for the second consecutive quarter, with a full-year 2024 revenue of $995 million.
- TaskUs Inc (TASK) saw a significant uptick in new logo signings in Q4, with 55% of signings driven by wins from existing clients.
- AI services revenue grew by 31% year-over-year in Q4, with expectations for it to be the fastest-growing service line in 2025.
- The company is investing in AI technologies and generative AI services, aiming to drive revenue growth and expand margins in 2025.
Negative Points
- Adjusted EBITDA margin for Q4 was 19.6%, falling short of the 21.1% guidance due to higher-than-anticipated investments.
- Q4 revenue and costs were negatively impacted by business disruptions, including security incidents.
- Full-year 2024 adjusted free cash flow was $107.4 million, slightly below the guidance of approximately $110 million.
- The company anticipates a sequential revenue impact of approximately $15 million in Q1 2025 due to fewer working days and seasonal declines.
- SG&A expenses increased to 24.7% of revenue in Q4, driven by litigation costs and higher personnel expenses.
