TaskUs (TASK) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: N/A
• Average Volume (3M): 386.22K
• Price to Earnings (P/E): 25.6
• Beta (1Y): 1.38
• Revenue Growth: 7.64%
• EPS Growth: 5.22%
• Country: US
• Employees: 58,850
• Sector: Technology
• Sector Strength: 51
• Industry: Information Technology Services
• EPS (TTM): 0.50
• Shares Outstanding: 20,211,430
• 10 Day Avg. Volume: 472,390
• 30 Day Avg. Volume: 386,218
• PEG Ratio: 4.91
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.21
• Price to Cash Flow (P/CF): 7.40
• P/FCF Ratio: 7.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.50
• Price Target Upside: 52.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

TaskUs demonstrates financial stability and strong cash flow, but faces challenges in revenue generation and cost control. Technical indicators suggest a bearish trend, and while the earnings call shows strong revenue growth, profitability pressures persist. The stock is somewhat overvalued, impacting its overall attractiveness.

Positive Factors

Client Relationships

TASK is positioned as a top 3 vendor for META due to comprehensive offerings across Trust & Safety and AI Services.

Revenue Growth

Ongoing improvement in TASK’s revenue growth trajectory is encouraging, with potential upside risks including incremental deal wins in the enterprise space and greater-than-expected demand for outsourced services.

Negative Factors

Cost Pressures

Analysts expect a competitive pricing environment, especially with existing tenured clients who may be reluctant to provide cost-of-living adjustment increases.

Valuation Concerns

Analysts remain Neutral-rated given TASK’s premium valuation vs. peers, as well as ongoing contact-center-related fears from investors that will likely keep shares range-bound.

TaskUs Business Overview & Revenue Model

Company Description

TaskUs, Inc. (NASDAQ: TASK) is a global outsourcing company that provides digital business services to high-growth technology companies. The company specializes in delivering customer support, content moderation, and AI operations solutions. TaskUs operates across several key sectors, including social media, e-commerce, gaming, and fintech, offering scalable and flexible solutions tailored to meet the unique needs of its clients.

How the Company Makes Money

TaskUs generates revenue primarily through long-term contracts with its clients, providing outsourced digital services such as customer support, content moderation, and back-office operations. The company's key revenue streams are derived from service fees charged for each contract, which are typically based on the volume of work performed or the number of hours dedicated to a client's project. TaskUs has built significant partnerships with large, high-growth technology companies, which contribute substantially to its earnings. The company's ability to scale operations quickly and efficiently, combined with its focus on innovation and quality service delivery, enables it to maintain strong client relationships and secure repeat business, which are crucial factors in its financial performance.

TaskUs Financial Statement Overview

Summary

TaskUs displays strengths in cash flow management and balance sheet stability, with a positive operating cash flow and moderate leverage. However, the company faces challenges in revenue generation and cost management, as highlighted by declining revenue and negative gross profit in the income statement.

Income Statement

The income statement reflects a challenging environment, with a notable decrease in revenue over the past year and a negative gross profit, indicating inefficiencies in cost management. While EBIT and EBITDA margins improved, these were insufficient to offset the revenue decline, resulting in stagnant net profit margins.

Balance Sheet

TaskUs maintains a relatively stable balance sheet with a debt-to-equity ratio that suggests moderate leverage, and a positive equity ratio indicating sufficient equity backing its assets. However, the return on equity is modest, reflecting limited profitability from shareholders' capital.

Cash Flow

The company has demonstrated strong free cash flow generation, with a positive free cash flow to net income ratio and robust operating cash flows. Although free cash flow growth has fluctuated, the overall cash flow position remains healthy.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
994.99M	924.37M	960.49M	760.70M	478.05M
	Gross Profit
392.09M	385.62M	401.73M	328.97M	207.54M
	EBIT
92.42M	95.04M	83.90M	-54.23M	50.33M
	EBITDA
155.89M	157.49M	153.23M	-6.57M	90.90M
	Net Income Common Stockholders
45.87M	45.69M	40.42M	-58.70M	34.53M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
192.17M	125.78M	133.99M	63.58M	107.73M
	Total Assets
953.30M	864.20M	902.01M	750.00M	707.51M
	Total Debt
305.20M	311.57M	311.55M	238.38M	244.75M
	Net Debt
113.03M	185.80M	177.56M	174.79M	137.02M
	Total Liabilities
456.38M	423.49M	446.40M	370.86M	372.37M
	Stockholders Equity
496.92M	440.71M	455.61M	379.13M	335.14M
Cash Flow		Free Cash Flow
99.78M	112.67M	103.34M	-92.04M	29.99M
	Operating Cash Flow
138.89M	143.67M	147.09M	-32.67M	58.87M
	Investing Cash Flow
-39.10M	-32.00M	-67.99M	-59.36M	-28.88M
	Financing Cash Flow
-25.18M	-119.08M	-4.04M	54.39M	36.99M

TaskUs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TASK, the sentiment is Negative. The current price of 12.75 is below the 20-day moving average (MA) of 13.19, below the 50-day MA of 14.03, and below the 200-day MA of 14.40, indicating a bearish trend. The MACD of -0.43 indicates Positive momentum. The RSI at 44.85 is Neutral, neither overbought nor oversold. The STOCH value of 43.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TASK.

TaskUs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	80 Outperform	$8.40B	16.86	22.15%	1.31%	6.46%	-16.94%
EXLS	79 Outperform	$7.38B	37.52	21.80%	―	12.74%	9.92%
CNXC	77 Outperform	$3.18B	12.48	6.34%	2.55%	21.67%	-17.91%
EPAM	69 Neutral	$8.61B	19.33	12.80%	―	0.80%	10.05%
TASK	59 Neutral	$1.15B	25.64	9.78%	―	7.64%	5.22%
Sector *	58 Neutral	$11.04B	9.83	-6.56%	3.16%	7.59%	-10.43%
VYX	44 Neutral	$1.15B	―	-20.40%	―	-54.34%	-34.10%

TaskUs Corporate Events

TaskUs Announces Resignation of Chief Accounting Officer

Steven Amaya, Chief Accounting Officer and Treasurer of TaskUs, Inc., has announced his resignation effective February 26, 2025, to pursue other opportunities. Until a permanent successor is appointed, Balaji Sekar, the current Chief Financial Officer, will assume the role of principal accounting officer along with his current duties as principal financial officer.