© Reuters. Citi sees a buying opportunity in TaskUs (TASK) after beat and raise; Shares rally
TaskUs, Inc. (TASK) reported better-than-expected results for the third quarter, which paved the way for guidance raise.
TaskUs shares rose nearly 8% in early New York trading on Tuesday.
The company’s Q3 EPS came in at $0.32, surpassing the analyst estimate of $0.29. Additionally, TaskUs reported revenue of $225.6 million, beating the consensus estimate of $220.85 million.
“We achieved strong third quarter performance, once again beating our guidance. Our results were driven by new client signings, as well as stronger-than-expected volumes from existing clients. While the current environment remains volatile, we are increasing our revenue outlook for the remainder of the year, driven in part by expected seasonal volumes associated with some of our recent healthcare signings and e-Commerce clients,” said Co-Founder and CEO, Bryce Maddock.
Q4 revenue is expected to be in the range of $225-227 million, compared to the consensus estimate of $220.9 million.
For the full year 2023, the company forecasts revenue between $915 million and $917 million, surpassing the consensus estimate of $905.6 million. It had previously expected revenue between $900 million and $910 million.
The adjusted FY Ebitda margin is expected to be 23.3%, slightly above the estimate of 23.1%.
“We are focused on using our strong cash flow to drive long-term shareholder value,” concluded Maddock.
Citi analysts hiked the price target by $2 to $13 per share amid share gains.
“We had viewed TaskUs’ 2023 outlook as relatively de-risked, but these results were more impressive than we were expecting – more quarters like this would do well to help dispel investor AI-related concerns. Our estimates increase with the 2024 setup looking relatively de-risked as well. We view TASK’s valuation levels as attractive in this context. Buy TASK,” the analysts said.
This story originally appeared on Investing
