TaskUs Exceeds Revenue Expectations, Eyes AI Growth in 2025

TaskUs Excelled with Q4 2024 results, reporting a revenue of $274.2 million, surpassing the forecast. The company aims for continued growth in 2025, particularly in AI services.

Date: 27-02-2025

AI Rating: 7

Revenue Assessment: TaskUs reported record revenue of $274.2 million in Q4 2024, exceeding guidance by nearly 2%. This reflects a robust year-over-year revenue growth of 17.1%, indicating continued upward momentum for the company. The full year revenue also saw a significant increase to $995 million, over the top of their previous expectations.

Adjusted EBITDA & Margins: The adjusted EBITDA for Q4 was reported at $53.8 million, with a margin of 19.6%, slightly below their expectations of 21.1%. Nevertheless, the full-year adjusted EBITDA margin remained stable at 21.1%. The slight margin dip in Q4 was attributed to required operational investments and security incidents, which are operational complexities that can impact margins moving forward.

Free Cash Flow: The adjusted free cash flow was noted at $107.4 million, marginally under the anticipated $110 million. This decrease was primarily due to increased capital investments poised for anticipated revenue growth in 2025.

Forward Guidance: For Q1 2025, TaskUs expects to generate between $270 million and $272 million in revenue, which is consistent with a projected growth rate of approximately 19% year-over-year. These results indicate a solid financial outlook despite headwinds from seasonal revenue declines.

Stocks: TASK