TaskUs Shares Plunge 17% on Disappointing Outlook

TaskUs, Inc. (NASDAQ:TASK) shares plummeted 17% on Tuesday after the company reported its Q4 earnings results and provided worse-than-expected guidance.

Q4 EPS came in at $0.33, in line with the Street expectations. Revenue was $242.5 million, compared to the Street estimate of $232.1 million.

For the full 2023 year, the company expects revenue to be in the range of $940-$990 million, below the Street estimate of $999.7 million.

Although Q4 performance was solid, continued cost rationalization from key clients, increasing focus on pivoting to offshore work, delayed sales cycles, and transformational deals taking longer to close all point to a more challenging revenue trajectory for 2023.