TaskUs, Inc. (NASDAQ:TASK), a prominent player in the services-computer processing and data preparation industry with a market capitalization of $1.36 billion, has announced an extension to its share repurchase program.
According to InvestingPro analysis, the company maintains a strong financial health rating and operates with robust liquidity, evidenced by a current ratio of 3.02. The Board of Directors approved the extension on Thursday, allowing the company to continue repurchasing its Class A common stock until December 31, 2025.
Initially launched in September 2022 and expanded in May 2023, the program authorizes the repurchase of up to $200 million worth of shares. As of Thursday, TaskUs reported that approximately $39.6 million remains available for further repurchases, not accounting for any potential commissions, fees, or excise taxes. The stock, which has gained 15% year-to-date and currently trades at $15.22, appears undervalued according to InvestingPro Fair Value metrics.
TaskUs has indicated that the timing and volume of the repurchases will be influenced by several factors, such as market and business conditions, stock price, regulatory requirements, and loan agreement terms. The repurchase program is not an obligation for the company to buy any specific number of shares and can be modified, suspended, or discontinued at the company's discretion.
In other recent news, TaskUs Inc. posted record-breaking Q3 revenue of $255.3 million for the fiscal third quarter of 2024, marking a 13.2% increase year-over-year. This surpasses the company's own predictions. In light of these figures, TaskUs raised its full-year revenue forecast to between $988 million and $990 million, reflecting a $24 million increase from previous estimates and projecting a 7% growth rate for 2024.
However, TaskUs reported its adjusted EBITDA margin fell slightly short of the target due to increased operational investments. Despite this, strong demand from top clients is expected to drive growth in Q4, particularly in trust and safety and AI services. TaskUs is also diversifying into countercyclical sectors such as healthcare and traditional banking, expecting growth in these areas by 2025.
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