Thoughtworks Holding, Inc. - TWKS STOCK NEWS

Thoughtworks (NASDAQ: TWKS) reported Q3 2024 financial results with revenues of $261.4 million, a 6.7% YoY decline. The net loss margin improved to 2.3% from 9.2% in Q3 2023. Adjusted EBITDA margin was 11.7%, slightly down from 12.0% last year. Diluted loss per share was $(0.02), an improvement from $(0.08) in Q3 2023.

The company is being acquired by Apax Partners for $4.40 per share, with the merger filed with the SEC on October 21, 2024. Restructuring activities aimed at cost reduction resulted in pre-tax charges of $22.6 million in Q3 2024 and $50.9 million since August 2023. Annualized savings from restructuring reached $180 million.

For the first nine months of 2024, revenues declined by 12.9% to $761.7 million. The net loss margin widened to 9.6% from 5.3% last year. Adjusted EBITDA margin dropped to 5.7% from 11.2%. The company reported bookings of $1.3 billion, a 7.1% YoY decrease.

Thoughtworks (NASDAQ: TWKS), a global technology consultancy, has been recognized as a Visionary in the 2024 Gartner Magic Quadrant for Custom Software Development Services, Worldwide. The company integrates strategy, design, and engineering to deliver value to over 300 clients, including global enterprises and technology disruptors.

Thoughtworks specializes in solving complex problems in cloud, platforms, data and analytics, AI, and customer experience and products. CEO Mike Sutcliff emphasized the company's position at the forefront of AI-enabled software and data engineering, helping clients drive business innovation and create sustainable competitive advantages.

The Gartner report evaluated 20 vendors in the custom software development services market, defined as the development of software in rapid increments and iteration of custom applications and software products for an organization's unique business needs.

Thoughtworks (NASDAQ: TWKS) has announced a strategic collaboration with AI Singapore (AISG) to advance the reliability and adoption of GenAI. The partnership aims to develop novel methods, tools, and best practices for evaluating GenAI applications, addressing the unique challenges posed by its reliance on massive datasets and complex algorithms. Key aspects of the collaboration include:

1. Joint research and training initiatives to explore cutting-edge AI and analytics technologies.

2. Collaborative knowledge and infrastructure exchange, providing access to Thoughtworks' expertise in lean product development, agile practices, and cloud technologies.

3. Development of technology-driven capabilities to independently evaluate the accuracy, efficacy, costs, and risks of large language models (LLMs).

This partnership is expected to accelerate the development and deployment of AI applications, helping organizations move beyond proof-of-concept stages and into full-scale production.

Thoughtworks (NASDAQ: TWKS) has partnered with Australian Payments Plus (AP+) to develop new customer experience (CX) industry guidelines for PayTo, a fast and secure payment innovation for instant fund transfers between bank accounts. This collaboration marks their third partnership, aiming to shape the future of payments in Australia and encourage widespread adoption of PayTo.

The PayTo CX guidelines, designed by Thoughtworks, provide a comprehensive blueprint for merchants and billers to implement and present the payment solution to customers. These guidelines have been recognized with a 2024 Good Design Award in the Digital Design - Interface category, highlighting their effectiveness in solving complex challenges and fostering innovation in the payment sector.

Currently, over 90% of retail banking transaction accounts in Australia have enabled PayTo, demonstrating significant progress in adoption across financial institutions.

Thoughtworks has entered a strategic partnership with UK-based cybersecurity startup Advanced Cyber Defence Systems (ACDS) to enhance ACDS' product offerings, particularly in Continuous Threat & Exposure Management (CTEM) and Attack Surface Management (ASM). The collaboration, which began in March 2024, focuses on improving ACDS' ASM product, OBSERVATORY, which has gained traction in the US market.

Thoughtworks will provide AI-powered application managed services through its DAMO™ platform, aiming to transform OBSERVATORY into an innovative and scalable solution. The partnership combines Thoughtworks' expertise in enterprise security and product development with ACDS' commitment to 'secure by design' principles, setting new standards in cybersecurity product safety and resilience.

Thoughtworks (NASDAQ: TWKS) has partnered with ConnectingYouNow (CYN) to launch AI-powered managed services aimed at addressing complexity and cost challenges in enterprise IT. The joint offering, part of Thoughtworks' DAMO™ Managed Services, integrates CYN's Enterprise AI Hub to provide intelligent automation and predictive analytics. The solution focuses on two key areas:

1. Customer service: Reducing support ticket resolution times to increase satisfaction
2. Technology: Unifying and optimizing customer contact and incident data platforms

CYN, founded through a Scottish Government CivTech challenge, emphasizes responsible AI and inclusive technology. The partnership aims to help enterprises like the Scottish Government streamline IT operations and drive efficiencies while maintaining data safety and accessibility standards.

Thoughtworks (NASDAQ: TWKS) has been awarded the 2024 CSO Award from Foundry's CSO for the second consecutive year. This recognition highlights the company's outstanding security initiatives and business value. Thoughtworks' Chief Information Security Officer, Nitin Raina, implemented a Security Champions program within delivery teams to address the challenges of federated business structures and diverse client landscapes.

The program promotes a shift-left approach to security in software development, enabling decentralized decision-making and risk handling. This innovative approach has created a more self-sufficient security culture, enhancing early threat detection and increasing visibility across the organization. Thoughtworks will accept the award at the 2024 CSO Conference & Awards in October 2024.

Thoughtworks (NASDAQ: TWKS) reported Q2 2024 financial results, highlighting a 12.4% year-over-year revenue decline to $251.7 million. The company announced a definitive merger agreement to be acquired by an Apax Partners affiliate for $4.40 per share. Thoughtworks expanded its restructuring program, aiming for total savings of $185-210 million by October 31, 2024. Key financial metrics include:

- Net loss margin: (14.5)% vs (4.3)% in Q2 2023
- Adjusted EBITDA margin: 2.3% vs 10.2% in Q2 2023
- Diluted loss per share: $(0.11) vs $(0.04) in Q2 2023

The company's bookings for the trailing twelve months ended June 30, 2024, were $1.2 billion, stable sequentially but down 20% year-over-year due to reduced client budgets and smaller contract sizes.

Thoughtworks (NASDAQ: TWKS) has announced a definitive merger agreement with Apax Partners LLP. An affiliate of Apax Funds will purchase all outstanding shares of Thoughtworks common stock for $4.40 per share, implying a total enterprise value of approximately $1.75 billion. The purchase price represents a 30% premium to Thoughtworks' closing stock price on August 2, 2024, and a 48% premium over the 30-day volume-weighted average price.

The transaction, unanimously approved by a special committee of independent directors, is expected to close in the fourth quarter of 2024. Upon completion, Thoughtworks will become a privately held company and delist from NASDAQ. The deal is subject to customary closing conditions but does not require additional stockholder approval.