TaskUs Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
TASK$9.09-1.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-09.
0001829864-24-000138
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001829864-24-000162
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 144 previous paragraphs and 148 current paragraphs.
93 unchanged; 42 reworded; 13 added; 8 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 14 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
The increase was primarily driven by certain litigation costs of $4.4 million, which we expect to continue in future periods. The remaining increase includes higher personnel costs of $0.5 million, due primarily to an increase in headcount and bonus expense, associated with higher company performance, mostly offset by a reduction in stock-based compensation expense of $3.1 million.
Current report
Loss (gain) on disposal of assets
Current report
Loss on disposal of assets for the three months ended September 30, 2023 was associated with optimizing our footprint in the United States.
Current report
Other expense, net
Current report
Comparison of the Nine Months Ended September 30, 2024 and 2023
Current report
Loss (gain) on disposal of assets
Current report
Loss on disposal of assets for the nine months ended September 30, 2023 was associated with optimizing our footprint in the United States.
Current report
Other expense (income), net
Current report
(2) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Current report
The following table reconciles net income, the most directly comparable GAAP measure, to Adjusted Net Income for the nine months ended September 30, 2024 and 2023:
Current report
(3) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Current report
(2) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Current report
(3) Realized and unrealized foreign currency losses include the effect of fair market value changes of forward contracts not designated as hedging instruments and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Removed paragraphs (8)
Previous report
Other income, net
Previous report
Comparison of the Six Months Ended June 30, 2024 and 2023
Previous report
Other income, net
Previous report
(2) Realized and unrealized foreign currency gains include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Previous report
The following table reconciles net income, the most directly comparable GAAP measure, to Adjusted Net Income for the six months ended June 30, 2024 and 2023:
Previous report
(3) Realized and unrealized foreign currency gains include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Previous report
(2) Realized and unrealized foreign currency gains include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Previous report
(3) Realized and unrealized foreign currency gains include the effect of fair market value changes of forward contracts and remeasurement of U.S. dollar-denominated accounts to foreign currency.
Reworded paragraphs (42)
Previous wording
This Quarterly Report includes certain historical consolidated financial and other data for TaskUs, Inc. ("we," "us," "our" or the "Company"). The following discussion provides a narrative of our results of operations and financial condition for the three and six months ended June 30, 2024 and 2023.
Current wording
This Quarterly Report includes certain historical consolidated financial and other data for TaskUs, Inc. ("we," "us," "our" or the "Company"). The following discussion provides a narrative of our results of operations and financial condition for the three and nine months ended September 30, 2024 and 2023.
Previous wording
During 2024, we have seen some of the challenges and market uncertainty we faced in 2023 begin to subside. Through our continued focus on partnering with our clients and strategic investments we have made in sales and marketing, including our focus on landing enterprise clients and cross-selling our specialized services, we achieved revenue growth of 3.8% during the three months ended June 30, 2024 compared to the three months ended June 30, 2023. Given our performance in the six months ended June 30, 2024, we expect our revenue growth to continue improving in the remainder of 2024.This acceleration of revenue growth requires additional investments in operations, facilities, hiring and training. Additionally, we have seen an increase in pricing pressure as our clients remain focused on cost reduction and competitors reduce their rates. While we believe we are a premium provider of specialized services, we have and expect to continue to price our services competitively in order to achieve above market growth rates and take share from our competitors. These factors may impact our margins and cash flow.
Current wording
During 2024, we have seen some of the challenges and market uncertainty we faced in 2023 begin to subside. Through our continued focus on partnering with our clients and strategic investments we have made in sales and marketing, including our focus on landing enterprise clients and cross-selling our specialized services, we achieved revenue growth of 13.2% during the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Given our performance in the nine months ended September 30, 2024, we expect our revenue growth to continue in the remainder of 2024. This acceleration of revenue growth requires additional investments in operations, facilities, hiring and training. Additionally, we have seen an increase in pricing pressure as our clients remain focused on cost reduction and competitors reduce their rates. While we believe we are a premium provider of specialized services, we have and expect to continue to price our services competitively in order to achieve above market growth rates and take share from our competitors. These factors may impact our margins and cash flow.
Previous wording
For the three months ended June 30, 2024, we recorded service revenue of $237.9 million, a 3.8% increase from $229.2 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, we recorded service revenue of $465.4 million, a 0.2% increase from $464.5 million for the six months ended June 30, 2023.
Current wording
For the three months ended September 30, 2024, we recorded service revenue of $255.3 million, a 13.2% increase from $225.6 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, we recorded service revenue of $720.7 million, a 4.4% increase from $690.1 million for the nine months ended September 30, 2023.
Previous wording
Net income for the three months ended June 30, 2024 increased to $12.6 million from $10.1 million for the three months ended June 30, 2023. This increase is due primarily to revenue growth, the impact of foreign currency exchange rate changes and forward contracts, as well as higher interest income, lower stock-based compensation expense and earn-out consideration, partially offset by higher cost of services. Adjusted Net Income for the three months ended June 30, 2024 decreased 10.0% to $28.6 million from $31.8 million for the three months ended June 30, 2023. Adjusted EBITDA for the three months ended June 30, 2024 decreased 5.6% to $51.3 million from $54.3 million for the three months ended June 30, 2023. Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see "Non-GAAP Financial Measures."
Current wording
Net income for the three months ended September 30, 2024 increased to $12.7 million from $9.8 million for the three months ended September 30, 2023. This increase is due primarily to revenue growth, the impact of foreign currency exchange rate changes, including forward contracts not designated as hedging instruments, and interest income. These increases were partially offset by higher cost of services and certain litigation costs. Adjusted Net Income for the three months ended September 30, 2024 increased 14.4% to $34.3 million from $30.0 million for the three months ended September 30, 2023. Adjusted EBITDA for the three months ended September 30, 2024 increased 3.4% to $54.2 million from $52.5 million for the three months ended September 30, 2023. Adjusted Net Income and Adjusted EBITDA are non-GAAP financial measures. For definitions and reconciliations to net income, the most directly comparable measure in accordance with GAAP, see "Non-GAAP Financial Measures."
Previous wording
Net income for the six months ended June 30, 2024 increased to $24.3 million from $19.6 million for the six months ended June 30, 2023. This increase is due primarily to lower earn-out consideration and stock-based compensation expense, partially offset by litigation costs and higher cost of services. Adjusted Net Income for the six months ended June 30, 2024 decreased 13.1% to $55.9 million from $64.3 million for the six months ended June 30, 2023. Adjusted EBITDA for the six months ended June 30, 2024 decreased 6.8% to $101.9 million from $109.3 million for the six months ended June 30, 2023.
Current wording
Net income for the nine months ended September 30, 2024 increased to $37.0 million from $29.4 million for the nine months ended September 30, 2023. This increase is due primarily to revenue growth, lower stock-based compensation expense, earn-out consideration and severance, as well as higher interest income. These increases were partially offset by higher cost of services, certain litigation costs and bonus expense, associated with higher company performance. Adjusted Net Income for the nine months ended September 30, 2024 decreased 4.4% to $90.2 million from $94.3 million for the nine months ended September 30, 2023. Adjusted EBITDA for the nine months ended September 30, 2024 decreased 3.5% to $156.1 million from $161.8 million for the nine months ended September 30, 2023.
Previous wording
Digital Customer Experience was primarily driven by a decrease from existing clients in On Demand Travel + Transportation, as well as clients in Entertainment + Gaming and HealthTech. These decreases were partially offset by an increase from existing clients in FinTech, as well as new clients in HealthTech, FinTech and Professional Services + Industry.
Current wording
Digital Customer Experience was primarily driven by an increase from new clients in FinTech, HealthTech and Professional Services + Industry, as well as existing clients in FinTech. These increases were partially offset by decreases from existing clients in HealthTech and On Demand Travel + Transportation.
Previous wording
Trust and Safety was primarily driven by an increase from existing clients in Social Media and FinTech.
Current wording
Trust and Safety was primarily driven by an increase from existing clients in Social Media and FinTech. These increases were partially offset by decreases from existing clients in On Demand Travel + Transportation.
Previous wording
AI Services was primarily driven by a decrease from existing clients in Social Media.
Current wording
AI Services was primarily driven by an increase from existing clients in Social Media, as well as new clients in Professional Services + Industry.
Previous wording
Philippines: Trust and Safety contributed 6.8% of the total increase primarily driven by clients in Social Media and FinTech. Digital Customer Experience contributed 1.7% of the total increase primarily driven by clients in FinTech and Social Media, partially offset by clients in Entertainment + Gaming. The increase was partially offset by a 2.4% decrease contributed by AI Services, primarily driven by clients in Social Media.
Current wording
Philippines: Trust and Safety contributed 6.9% of the total increase primarily driven by clients in Social Media and FinTech. Digital Customer Experience contributed 5.8% of the total increase primarily driven by clients in FinTech and Entertainment + Gaming. AI Services contributed 0.7% of the total increase primarily driven by clients in On Demand Travel + Transportation.
Previous wording
United States: Digital Customer Experience contributed 32.6% of the total decrease primarily driven by clients in On Demand Travel + Transportation, Entertainment + Gaming, Social Media, HealthTech and FinTech. AI Services contributed 6.8% of the total decrease primarily driven by clients in On Demand Travel + Transportation and Social Media. Trust and Safety was flat.
Current wording
United States: Digital Customer Experience contributed 15.5% of the total decrease primarily driven by clients in Entertainment + Gaming, Technology and On Demand Travel + Transportation. The decrease was partially offset by a 7.6% increase contributed by AI Services and a 4.3% increase contributed by Trust and Safety, primarily driven by clients in Social Media.
Previous wording
India: Trust and Safety contributed 8.4% of the total increase primarily driven by clients in Social Media. AI Services contributed 2.2% of the total increase. The increase was partially offset by a 9.0% decrease contributed by Digital Customer Experience, primarily driven by clients in On Demand Travel + Transportation, partially offset by clients in Retail + E Commerce.
Current wording
India: AI Services contributed 6.1% of the total increase primarily driven by clients in Social Media and Professional Services + Industry. Trust and Safety contributed 2.9% of the total increase primarily driven by clients in Social Media. The increase was partially offset by a 3.2% decrease contributed by Digital Customer Experience, primarily driven by clients in On Demand Travel + Transportation and FinTech, partially offset by clients in Retail + E Commerce.
Previous wording
Rest of World: Digital Customer Experience contributed 20.0% of the total increase primarily driven by clients in FinTech, On Demand Travel + Transportation and Professional Services + Industry. Trust and Safety contributed 5.6% of the total increase, primarily driven by clients in FinTech and Social Media. AI Services contributed 0.2% of the total increase. Growth in the Rest of World was led by Latin America.
Current wording
Rest of World: Digital Customer Experience contributed 21.2% of the total increase primarily driven by clients in FinTech, Professional Services + Industry and On Demand Travel + Transportation. Trust and Safety contributed 10.8% of the total increase, primarily driven by clients in Social Media and FinTech. AI Services contributed 0.9% of the total increase. Growth in the Rest of World was led by Latin America and Europe.
Previous wording
The increase was primarily driven by higher personnel costs of $6.7 million associated with increased headcount. The remaining increase included facilities and recruiting costs associated with site expansion and increasing headcount associated with accelerating growth.
Current wording
The increase was primarily driven by higher personnel costs of $17.4 million associated with increased headcount. The remaining increase included facilities and recruiting costs associated with site expansion and increasing headcount associated with accelerating growth.
Previous wording
Changes in financing expense are primarily driven by the rate of SOFR used to calculate the interest rate of our debt.
Current wording
Changes in financing expense are primarily driven by payments on long-term debt and the rate of SOFR used to calculate the interest rate of our debt.
Previous wording
The effective tax rate for the six months ended June 30, 2024 and 2023 was 36.3% and 40.5%, respectively. Costs related to the issuance of stock-based compensation, the acquisition of heloo, severance and litigation costs within the provision for income taxes calculation are adjusted for Non-GAAP purposes. If those costs are removed, the provision for income taxes would have been $16.6 million and $15.4 million and the effective tax rate would have been 26.4% and 21.6% for the six months ended June 30, 2024 and 2023, respectively.
Current wording
The effective tax rate for the three months ended September 30, 2024 and 2023 was 28.6% and 31.8%, respectively. Costs related to the issuance of stock-based compensation and litigation costs within the provision for income taxes calculation are adjusted for Non-GAAP purposes. If those costs are removed, the provision for income taxes would have been $6.1 million and $7.5 million and the effective tax rate would have been 18.6% and 26.5% for the three months ended September 30, 2024 and 2023, respectively.
Previous wording
The following tables set forth certain historical consolidated financial information for the six months ended June 30, 2024 and 2023:
Current wording
The following tables set forth certain historical consolidated financial information for the nine months ended September 30, 2024 and 2023:
Previous wording
Digital Customer Experience was primarily driven by a decrease from existing clients in On Demand Travel + Transportation, Entertainment + Gaming, HealthTech and Social Media. These decreases were partially offset by an increase from existing clients in FinTech, as well as new clients in HealthTech, FinTech and Professional Services + Industry.
Current wording
Digital Customer Experience was primarily driven by a decrease from existing clients in On Demand Travel + Transportation, Entertainment + Gaming, HealthTech and Social Media. These decreases were partially offset by an increase from existing clients in FinTech, as well as new clients in FinTech, Professional Services + Industry, HealthTech and On Demand Travel + Transportation.
Previous wording
AI Services was primarily driven by a decrease from existing clients in Social Media and On Demand Travel + Transportation.
Current wording
AI Services was primarily driven by a decrease from existing clients in Social Media and On Demand Travel + Transportation, partially offset by an increase from new clients in Professional Services + Industry and Technology, as well as existing clients in Technology.
Previous wording
Philippines: Trust and Safety contributed 7.0% of the total increase primarily driven by clients in Social Media and FinTech. Digital Customer Experience contributed 3.5% of the total increase primarily driven by clients in FinTech, partially offset by clients in Entertainment + Gaming. The increase was partially offset by a 1.8% decrease contributed by AI Services, primarily driven by clients in Social Media.
Current wording
Philippines: Trust and Safety contributed 6.8% of the total increase primarily driven by clients in Social Media and FinTech. Digital Customer Experience contributed 3.1% of the total increase primarily driven by clients in FinTech. The increase was partially offset by a 1.4% decrease contributed by AI Services, primarily driven by clients in Social Media, partially offset by clients in Technology.
Previous wording
United States: Digital Customer Experience contributed 30.8% of the total decrease primarily driven by clients in On Demand Travel + Transportation, Entertainment + Gaming and HealthTech. AI Services contributed 2.7% of the total decrease primarily driven by clients in On Demand Travel + Transportation. The decrease was partially offset by a 1.4% increase contributed by Trust and Safety, primarily driven by clients in On Demand Travel + Transportation.
Current wording
United States: Digital Customer Experience contributed 27.9% of the total decrease primarily driven by clients in On Demand Travel + Transportation, Entertainment + Gaming, Social Media, HealthTech and Technology. AI Services contributed 2.7% of the total decrease primarily driven by clients in On Demand Travel + Transportation, partially offset by clients in Social Media. The decrease was partially offset by a 1.2% increase contributed by Trust and Safety, primarily driven by clients in On Demand Travel + Transportation.
Previous wording
India: Trust and Safety contributed 13.7% of the total increase primarily driven by clients in On Demand Travel + Transportation and Social Media. AI Services contributed 0.2% of the total increase. The increase was partially offset by a 11.9% decrease contributed by Digital Customer Experience, primarily driven by clients in On Demand Travel + Transportation, partially offset by clients in Retail + E-Commerce.
Current wording
India: Trust and Safety contributed 10.1% of the total increase primarily driven by clients in Social Media and On Demand Travel + Transportation. AI Services contributed 2.2% of the total increase primarily driven by clients in Professional Services + Industry. The increase was partially offset by a 9.0% decrease contributed by Digital Customer Experience, primarily driven by clients in On Demand Travel + Transportation, partially offset by clients in Retail + E-Commerce.
Previous wording
Rest of World: Digital Customer Experience contributed 19.8% of the total increase primarily driven by clients in FinTech, On Demand Travel + Transportation and Professional Services + Industry. Trust and Safety contributed 5.2% of the total increase primarily driven by clients in FinTech and Social Media. AI Services contributed 0.2% of the total increase. Growth in the Rest of World was due to Latin America and Asia.
Current wording
Rest of World: Digital Customer Experience contributed 20.2% of the total increase primarily driven by clients in FinTech, On Demand Travel + Transportation and Professional Services + Industry. Trust and Safety contributed 7.2% of the total increase primarily driven by clients in FinTech and Social Media. AI Services contributed 0.5% of the total increase. Growth in the Rest of World was led by Latin America and Asia.
Previous wording
The increase was primarily driven by higher personnel costs of $4.0 million associated with increased headcount. The remaining increase included facilities and recruiting costs associated with site expansion and increasing headcount to prepare for accelerating growth.
Current wording
The increase was primarily driven by higher personnel costs of $21.4 million associated with increased headcount. The remaining increase included facilities and recruiting costs associated with site expansion and increasing headcount to prepare for accelerating growth.
Previous wording
The decrease was primarily driven by lower personnel costs of $2.4 million, due primarily to a reduction in earn-out compensation and stock-based compensation expense, partially offset by an increase in bonus expense due to higher company performance. The remaining decrease included lower insurance expense based on renegotiated rates. This decrease was partially offset by certain litigation costs which we expect to continue in future periods.
Current wording
The decrease was primarily driven by lower personnel costs of $11.9 million, due primarily to a reduction in stock-based compensation expense of $9.5 million, earn-out compensation of $7.9 million and severance costs of $1.1 million, partially offset by an increase in headcount and bonus expense, associated with higher company performance. The remaining decrease included lower insurance expense based on renegotiated rates. These decreases were partially offset by certain litigation costs of $7.0 million, which we expect to continue in future periods.
Previous wording
The increase in depreciation is a result of capital expenditures for leasehold improvements associated with site expansions.
Current wording
The increase in depreciation is a result of capital expenditures for leasehold improvements, furniture and fixtures and other office equipment associated with site expansions. These increases were mostly offset by a reduction in the pace of technology and computers purchases associated with certain employees returning to the office driving higher utilization of equipment.
Previous wording
Changes in financing expense are primarily driven by the rate of SOFR used to calculate the interest rate of our debt.
Current wording
Changes in financing expense are primarily driven by payments on long-term debt and the rate of SOFR used to calculate the interest rate of our debt.
Previous wording
The effective tax rate for the three months ended June 30, 2024 and 2023 was 36.8% and 42.2%, respectively. Costs related to the issuance of stock-based compensation, the acquisition of heloo, severance and litigation costs within the provision for income taxes calculation are adjusted for Non-GAAP purposes. If those costs are removed, the provision for income taxes would have been $8.5 million and $7.4 million and the effective tax rate would have been 25.5% and 21.7% for the three months ended June 30, 2024 and 2023, respectively.
Current wording
The effective tax rate for the nine months ended September 30, 2024 and 2023 was 33.8% and 37.9%, respectively. Costs related to the issuance of stock-based compensation, the acquisition of heloo, litigation costs and severance within the provision for income taxes calculation are adjusted for Non-GAAP purposes. If those costs are removed, the provision for income taxes would have been $22.8 million and $22.9 million and the effective tax rate would have been 23.7% and 23.0% for the nine months ended September 30, 2024 and 2023, respectively.
Previous wording
The table below sets forth the percentage of our total service revenue derived from our largest clients for the three and six months ended June 30, 2024 and 2023:
Current wording
The table below sets forth the percentage of our total service revenue derived from our largest clients for the three and nine months ended September 30, 2024 and 2023:
Previous wording
Our clients are part of the rapidly growing digital economy and they rely on our suite of digital solutions to drive their continued success. For our existing clients, we benefit from our ability to grow as they grow and to cross sell new solutions, further deepening our entrenchment.
Current wording
Many of our clients are part of the rapidly growing digital economy and they rely on our suite of digital solutions to drive their continued success. For our existing clients, we benefit from our ability to grow as they grow and to cross sell new solutions, further deepening our entrenchment.
Previous wording
For the three months ended June 30, 2024 and 2023, we generated 20% and 19%, respectively, of our service revenue from our largest client. For the six months ended June 30, 2024 and 2023, we generated 20% and 20%, respectively, of our service revenue from our largest client.
Current wording
For the three months ended September 30, 2024 and 2023, we generated 23% and 19%, respectively, of our service revenue from our largest client. For the nine months ended September 30, 2024 and 2023, we generated 21% and 19%, respectively, of our service revenue from our largest client.
Previous wording
(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense and earn-out consideration.
Current wording
(6) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense and litigation costs. After these adjustments, we applied a non-GAAP effective tax rate of 18.6% and 26.5% for the three months ended September 30, 2024 and 2023, respectively, to non-GAAP income before income taxes.
Previous wording
(6) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense and earn-out consideration.
Current wording
(7) Represents tax impacts of adjustments to net income which resulted in a tax benefit during the period, including stock-based compensation expense, earn-out consideration, litigation costs and severance. After these adjustments, we applied a non-GAAP effective tax rate of 23.7% and 23.0% for the nine months ended September 30, 2024 and 2023, respectively, to non-GAAP income before income taxes.
Previous wording
The following table reconciles GAAP diluted EPS, the most directly comparable GAAP measure, to Adjusted EPS for the three and six months ended June 30, 2024 and 2023:
Current wording
The following table reconciles GAAP diluted EPS, the most directly comparable GAAP measure, to Adjusted EPS for the three and nine months ended September 30, 2024 and 2023:
Previous wording
The following table reconciles net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the six months ended June 30, 2024 and 2023:
Current wording
The following table reconciles net income, the most directly comparable GAAP measure, to EBITDA and Adjusted EBITDA for the nine months ended September 30, 2024 and 2023:
Previous wording
The following table reconciles net cash provided by operating activities, the most directly comparable GAAP measure, to Free Cash Flow for the six months ended June 30, 2024 and 2023:
Current wording
The following table reconciles net cash provided by operating activities, the most directly comparable GAAP measure, to Free Cash Flow for the nine months ended September 30, 2024 and 2023:
Previous wording
(1) Conversion of Adjusted EBITDA represents Free Cash Flow divided by Adjusted EBITDA
Current wording
(1) Conversion of Adjusted EBITDA to Free Cash Flow represents Free Cash Flow divided by Adjusted EBITDA.
Previous wording
As of June 30, 2024, our principal sources of liquidity were cash and cash equivalents totaling $171.1 million, which were held for working capital purposes, as well as the borrowing availability under the 2022 Revolving Credit Facility of $190.0 million.
Current wording
As of September 30, 2024, our principal sources of liquidity were cash and cash equivalents totaling $180.4 million, which were held for working capital purposes, as well as the borrowing availability under the 2022 Revolving Credit Facility of $190.0 million.
Previous wording
As of June 30, 2024, our total indebtedness, net of debt financing fees was $261.0 million. The interest rate in effect for the 2022 Term Loan Facility as of June 30, 2024 was 7.694% per annum. We were in compliance with all debt covenants as of June 30, 2024. See Note 8, "Long-Term Debt" in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our debt.
Current wording
As of September 30, 2024, our total indebtedness, net of debt financing fees was $259.4 million. The interest rate in effect for the 2022 Term Loan Facility as of September 30, 2024 was 6.954% per annum. We were in compliance with all debt covenants as of September 30, 2024. See Note 8, "Long-Term Debt" in the Notes to Unaudited Condensed Consolidated Financial Statements included in this Quarterly Report for additional information regarding our debt.
Previous wording
During the six months ended June 30, 2024, we repurchased 1,310,167 shares of our Class A common stock under the share repurchase program for $15.0 million, which we funded principally with available cash. As of June 30, 2024, $42.2 million remained available for share repurchases under our share repurchase program. For additional information about our share repurchase program, see Part II, Item 2., "Unregistered Sales of Equity Securities and Use of Proceeds—Issuer Purchases of Equity Securities" in this Quarterly Report.
Current wording
During the nine months ended September 30, 2024, we repurchased 1,343,154 shares of our Class A common stock under the share repurchase program for $15.4 million, which we funded principally with available cash. As of September 30, 2024, $41.8 million remained available for share repurchases under our share repurchase program. For additional information about our share repurchase program, see Part II, Item 2., "Unregistered Sales of Equity Securities and Use of Proceeds—Issuer Purchases of Equity Securities" in this Quarterly Report.
Previous wording
Net cash provided by operating activities for the six months ended June 30, 2024 was $81.2 million compared to net cash provided by operating activities of $82.2 million for the six months ended June 30, 2023. Net cash provided by operating activities for the six months ended June 30, 2024 reflects net income of $24.3 million, the add back for non-cash charges totaling $54.1 million, as well as changes in operating assets and liabilities of $2.8 million. Non-cash charges primarily consisted of $21.4 million in stock-based compensation expense, $20.8 million of depreciation and $10.0 million of amortization related to intangibles. Net cash provided by operating activities for the six months ended June 30, 2023 reflects net income of $19.6 million, as well as the add back for non-cash charges totaling $57.2 million and changes in operating assets and liabilities of $5.4 million. Non-cash charges primarily consisted of $28.5 million in stock-based compensation expense, $19.7 million of depreciation and $10.2 million of amortization related to intangibles.
Current wording
Net cash provided by operating activities for the nine months ended September 30, 2024 was $98.2 million compared to net cash provided by operating activities of $103.9 million for the nine months ended September 30, 2023. Net cash provided by operating activities for the nine months ended September 30, 2024 reflects net income of $37.0 million and the add back for non-cash charges totaling $75.8 million, partially offset by changes in operating assets and liabilities of $14.6 million. Non-cash charges primarily consisted of $32.0 million in stock-based compensation expense, $30.5 million of depreciation and $15.0 million of amortization related to intangibles. Net cash provided by operating activities for the nine months ended September 30, 2023 reflects net income of $29.4 million, as well as the add back for non-cash charges totaling $94.1 million, partially offset by changes in operating assets and liabilities of $19.6 million. Non-cash charges primarily consisted of $42.3 million in stock-based compensation expense, $29.5 million of depreciation and $15.3 million of amortization related to intangibles.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The decrease was primarily driven by lower personnel costs of $12.4 million, due primarily to a reduction in earn-out compensation and stock-based compensation expense, partially offset by an increase in bonus expense due to higher company performance. The remaining decrease included lower insurance expense based on renegotiated rates, as well as a reduction in certain taxes, licenses and permits. These decreases were partially offset by certain litigation costs which we expect to continue in future periods, as well as higher software costs.