Thoughtworks Reports Second Quarter 2024 Financial Results
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) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando un declino del fatturato del 12,4% anno su anno a 251,7 milioni di dollari. L'azienda ha annunciato un accordo di fusione definitivo per essere acquisita da un affiliato di Apax Partners a 4,40 dollari per azione. Thoughtworks ha ampliato il suo programma di ristrutturazione, puntando a risparmi totali compresi tra 185 e 210 milioni di dollari entro il 31 ottobre 2024. I principali indicatori finanziari includono:
- Margine di perdita netta: (14,5)% rispetto a (4,3)% nel secondo trimestre del 2023
- Margine EBITDA rettificato: 2,3% rispetto a 10,2% nel secondo trimestre del 2023
- Perdita diluita per azione: $(0,11) rispetto a $(0,04) nel secondo trimestre del 2023
Le prenotazioni dell'azienda per i dodici mesi terminati il 30 giugno 2024 sono stati di 1,2 miliardi di dollari, stabili rispetto al trimestre precedente ma in calo del 20% rispetto all'anno precedente a causa della riduzione dei budget dei clienti e delle dimensioni più piccole dei contratti.
Thoughtworks (NASDAQ: TWKS) reportó los resultados financieros del segundo trimestre de 2024, destacando una disminución del 12,4% en los ingresos interanuales a 251,7 millones de dólares. La compañía anunció un acuerdo de fusión definitivo para ser adquirida por una filial de Apax Partners a 4,40 dólares por acción. Thoughtworks amplió su programa de reestructuración, con el objetivo de alcanzar ahorros totales de 185 a 210 millones de dólares para el 31 de octubre de 2024. Los principales métricas financieras incluyen:
- Margen de pérdida neta: (14,5)% frente al (4,3)% en el segundo trimestre de 2023
- Margen EBITDA ajustado: 2,3% frente al 10,2% en el segundo trimestre de 2023
- Pérdida por acción diluida: $(0,11) frente a $(0,04) en el segundo trimestre de 2023
Las reservas de la compañía para los doce meses que finalizaron el 30 de junio de 2024 fueron de 1.2 mil millones de dólares, estables secuencialmente pero con una disminución del 20% interanual debido a la reducción de los presupuestos de los clientes y tamaños de contratos más pequeños.
Thoughtworks (NASDAQ: TWKS)는 2024년 2분기 재무 결과를 발표하며 전년 대비 12.4% 감소한 2억 5,170만 달러의 매출을 강조하였습니다. 이 회사는 주당 4.40달러로 Apax Partners의 자회사에 인수될 최종 합병 계약을 발표했습니다. Thoughtworks는 2024년 10월 31일까지 1억 8500만 달러에서 2억 1000만 달러의 총 절감액을 목표로 재구성 프로그램을 확대했습니다. 주요 재무 지표는 다음과 같습니다:
- 순손실 마진: (14.5)% vs (4.3)% 2023년 2분기
- 조정된 EBITDA 마진: 2.3% vs 10.2% 2023년 2분기
- 희석 손실액: $(0.11) vs $(0.04) 2023년 2분기
2024년 6월 30일에 종료된 12개월 동안 회사의 예약 금액은 12억 달러였으며, 전분기 대비 안정적이지만 고객 예산 축소 및 계약 규모 축소로 인해 전년 대비 20% 감소했습니다.
Thoughtworks (NASDAQ: TWKS) a annoncé les résultats financiers du deuxième trimestre 2024, soulignant une baisse des revenus de 12,4 % par rapport à l'année précédente pour atteindre 251,7 millions de dollars. L’entreprise a annoncé un accord de fusion définitif pour être acquise par une filiale d'Apax Partners pour 4,40 dollars par action. Thoughtworks a élargi son programme de restructuration, visant des économies totales de 185 à 210 millions de dollars d'ici le 31 octobre 2024. Les indicateurs financiers clés comprennent :
- Marge de perte nette : (14,5)% contre (4,3)% au deuxième trimestre 2023
- Marge EBITDA ajustée : 2,3% contre 10,2% au deuxième trimestre 2023
- Perte diluée par action : $(0,11) contre $(0,04) au deuxième trimestre 2023
Les réservations de la société pour les douze mois se terminant le 30 juin 2024 étaient de 1,2 milliard de dollars, stables par rapport au trimestre précédent mais en baisse de 20 % par rapport à l'année précédente en raison de la réduction des budgets clients et de la taille plus petite des contrats.
Thoughtworks (NASDAQ: TWKS) hat die finanziellen Ergebnisse des zweiten Quartals 2024 gemeldet und einen Rückgang des Jahresumsatzes um 12,4% auf 251,7 Millionen Dollar hervorgehoben. Das Unternehmen gab eine endgültige Fusionsvereinbarung bekannt, um von einer Tochtergesellschaft von Apax Partners für 4,40 Dollar pro Aktie übernommen zu werden. Thoughtworks hat sein Restrukturierungsprogramm ausgeweitet, mit dem Ziel, bis zum 31. Oktober 2024 insgesamt 185 bis 210 Millionen Dollar einzusparen. Zu den wichtigsten finanziellen Kennzahlen gehören:
- Nettoumsatzverlust: (14,5)% gegenüber (4,3)% im 2. Quartal 2023
- Bereinigte EBITDA-Marge: 2,3% gegenüber 10,2% im 2. Quartal 2023
- Verwässerter Verlust pro Aktie: $(0,11) gegenüber $(0,04) im 2. Quartal 2023
Die Buchungen des Unternehmens für die zwölf Monate bis zum 30. Juni 2024 beliefen sich auf 1,2 Milliarden Dollar, stabil im Vergleich zum vorhergehenden Quartal, aber im Jahresvergleich um 20% gesunken, was auf reduzierte Kundenbudgets und kleinere Vertragsgrößen zurückzuführen ist.
- Thoughtworks signed a definitive merger agreement to be acquired by an Apax Partners affiliate for $4.40 per share
- The company's restructuring program has achieved $108 million of annualized savings since inception
- Bookings remained stable sequentially at $1.2 billion for the trailing twelve months ended June 30, 2024
- Q2 2024 revenues declined 12.4% year-over-year to $251.7 million
- Net loss margin worsened to (14.5)% in Q2 2024 from (4.3)% in Q2 2023
- Adjusted EBITDA margin decreased to 2.3% in Q2 2024 from 10.2% in Q2 2023
- Diluted loss per share increased to $(0.11) in Q2 2024 from $(0.04) in Q2 2023
- Bookings decreased 20% year-over-year due to reduced client budgets and smaller contract sizes
- The company expects to incur additional pre-tax cash charges of $30-35 million for restructuring
Insights
Thoughtworks' Q2 2024 results reveal significant challenges. Revenues declined by
The company's restructuring efforts, aimed at capturing
The decline in bookings to
The tech consulting sector is facing headwinds, as evidenced by Thoughtworks' results. The
Notably, North America saw the steepest revenue decline at
The announced acquisition by Apax Partners at
Thoughtworks' expanded restructuring program is a decisive response to market pressures. The company has already achieved
The extension of the restructuring timeline to October 31, 2024, suggests a thorough, phased approach. However, the substantial pre-tax charges and potential disruption to operations could impact short-term performance. The focus on both wage-related and non-wage expenses, including office space reduction, indicates a comprehensive restructuring strategy.
While necessary, these measures may pose risks to Thoughtworks' ability to capture future growth opportunities. The challenge will be maintaining service quality and innovation capabilities while significantly reducing costs. The success of this restructuring will be critical in positioning the company for a potential turnaround in a more favorable market environment.
-
Second quarter revenues of
$251.7 million - Thoughtworks signed definitive merger agreement to be taken private by an affiliate of funds advised by Apax Partners LLP
Acquisition Update
As announced a short time ago, Thoughtworks has entered into a definitive merger agreement to be acquired by an affiliate of funds advised by Apax Partners LLP for
Update on Restructuring Activities
On August 8, 2023, Thoughtworks initiated several measures to reduce operational costs and better align our business with our customers’ needs in a challenging macroeconomic environment. On May 7, 2024, we increased our restructuring program to capture additional cost savings. On August 2, 2024, the Company’s Board of Directors approved a second increase to its restructuring plan.
During the second quarter of 2024, Thoughtworks incurred pre-tax cash charges of approximately
Thoughtworks is increasing its restructuring program to capture additional savings of
Thoughtworks now expects to incur additional pre-tax cash charges of approximately
QTD second quarter 2024 highlights
Revenues for the second quarter were
Net loss margin for the second quarter was (14.5)% compared to (4.3)% for the second quarter of 2023. Adjusted EBITDA Margin for the second quarter was
Diluted loss per share for the second quarter was
YTD second quarter 2024 highlights
Revenues for the six months ended were
Net loss margin for the six months ended was (13.5)% compared to (3.4)% for six months ended June 30, 2023. Adjusted EBITDA Margin for the six months ended was
Diluted loss per share for the six months ended was
QTD second quarter 2024 summary |
||||||||||||||
|
Three Months Ended
|
|
|
|
|
|||||||||
$ in millions, except per share data |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change(1) |
|||
GAAP Metrics: |
|
|
|
|
|
|
|
|||||||
Revenues(2) |
$ |
251.7 |
|
|
$ |
287.2 |
|
|
$ |
(35.5 |
) |
|
(12.4 |
)% |
Gross Profit |
$ |
70.2 |
|
|
$ |
90.9 |
|
|
$ |
(20.7 |
) |
|
(22.8 |
)% |
Gross Margin |
|
27.9 |
% |
|
|
31.6 |
% |
|
|
(3.7 |
)% |
|
|
|
SG&A |
$ |
79.8 |
|
|
$ |
86.6 |
|
|
$ |
(6.8 |
) |
|
(7.9 |
)% |
SG&A Margin |
|
31.7 |
% |
|
|
30.2 |
% |
|
|
1.5 |
% |
|
|
|
Stock-based compensation(3) |
$ |
9.3 |
|
|
$ |
17.6 |
|
|
$ |
(8.3 |
) |
|
(47.2 |
)% |
Net loss |
$ |
(36.5 |
) |
|
$ |
(12.3 |
) |
|
$ |
(24.2 |
) |
|
|
|
Net loss margin |
|
(14.5 |
)% |
|
|
(4.3 |
)% |
|
|
(10.2 |
)% |
|
|
|
Diluted loss per share |
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.07 |
) |
|
|
|
Cash flow from operations |
$ |
(18.2 |
) |
|
$ |
(2.8 |
) |
|
$ |
(15.4 |
) |
|
|
|
Non-GAAP Metrics(4): |
|
|
|
|
|
|
|
|||||||
Revenue Growth Rate at constant currency(5) |
|
(11.3 |
)% |
|
|
(12.5 |
)% |
|
|
|
|
|||
Adjusted Gross Profit |
$ |
76.9 |
|
|
$ |
105.0 |
|
|
$ |
(28.1 |
) |
|
(26.8 |
)% |
Adjusted Gross Margin |
|
30.6 |
% |
|
|
36.6 |
% |
|
|
(6.0 |
)% |
|
|
|
Adjusted SG&A |
$ |
70.7 |
|
|
$ |
76.0 |
|
|
$ |
(5.3 |
) |
|
(7.0 |
)% |
Adjusted SG&A Margin |
|
28.1 |
% |
|
|
26.5 |
% |
|
|
1.6 |
% |
|
|
|
Adjusted Net (Loss) Income |
$ |
(8.5 |
) |
|
$ |
10.1 |
|
|
$ |
(18.6 |
) |
|
|
|
Adjusted EBITDA |
$ |
5.7 |
|
|
$ |
29.3 |
|
|
$ |
(23.6 |
) |
|
(80.5 |
)% |
Adjusted EBITDA Margin |
|
2.3 |
% |
|
|
10.2 |
% |
|
|
(7.9 |
)% |
|
|
|
Adjusted Diluted (Loss) Earnings Per Share |
$ |
(0.03 |
) |
|
$ |
0.03 |
|
|
$ |
(0.06 |
) |
|
|
|
Free Cash Flow |
$ |
(21.7 |
) |
|
$ |
(4.8 |
) |
|
$ |
(16.9 |
) |
|
|
|
YTD second quarter 2024 summary |
||||||||||||||
|
Six Months Ended June
|
|
|
|
|
|||||||||
$ in millions, except per share data |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change(1) |
|||
GAAP Metrics: |
|
|
|
|
|
|
|
|||||||
Revenues(2) |
$ |
500.3 |
|
|
$ |
594.3 |
|
|
$ |
(94.0 |
) |
|
(15.8 |
)% |
Gross Profit |
$ |
140.0 |
|
|
$ |
188.4 |
|
|
$ |
(48.4 |
) |
|
(25.7 |
)% |
Gross Margin |
|
28.0 |
% |
|
|
31.7 |
% |
|
|
(3.7 |
)% |
|
|
|
SG&A |
$ |
156.0 |
|
|
$ |
173.0 |
|
|
$ |
(17.0 |
) |
|
(9.8 |
)% |
SG&A Margin |
|
31.2 |
% |
|
|
29.1 |
% |
|
|
2.1 |
% |
|
|
|
Stock-based compensation(3) |
$ |
20.0 |
|
|
$ |
35.3 |
|
|
$ |
(15.3 |
) |
|
(43.3 |
)% |
Net loss |
$ |
(67.4 |
) |
|
$ |
(20.4 |
) |
|
$ |
(47.0 |
) |
|
|
|
Net loss margin |
|
(13.5 |
)% |
|
|
(3.4 |
)% |
|
|
(10.1 |
)% |
|
|
|
Diluted loss per share |
$ |
(0.21 |
) |
|
$ |
(0.06 |
) |
|
$ |
(0.15 |
) |
|
|
|
Cash flow from operations |
$ |
(34.0 |
) |
|
$ |
30.2 |
|
|
$ |
(64.2 |
) |
|
|
|
Non-GAAP Metrics(4): |
|
|
|
|
|
|
|
|||||||
Revenue Growth Rate at constant currency(5) |
|
(15.2 |
)% |
|
|
(6.9 |
)% |
|
|
|
|
|||
Adjusted Gross Profit |
$ |
154.0 |
|
|
$ |
216.8 |
|
|
$ |
(62.8 |
) |
|
(29.0 |
)% |
Adjusted Gross Margin |
|
30.8 |
% |
|
|
36.5 |
% |
|
|
(5.7 |
)% |
|
|
|
Adjusted SG&A |
$ |
141.0 |
|
|
$ |
153.2 |
|
|
$ |
(12.2 |
) |
|
(8.0 |
)% |
Adjusted SG&A Margin |
|
28.2 |
% |
|
|
25.8 |
% |
|
|
2.4 |
% |
|
|
|
Adjusted Net (Loss) Income |
$ |
(16.0 |
) |
|
$ |
20.2 |
|
|
$ |
(36.2 |
) |
|
|
|
Adjusted EBITDA |
$ |
12.5 |
|
|
$ |
64.2 |
|
|
$ |
(51.7 |
) |
|
(80.5 |
)% |
Adjusted EBITDA Margin |
|
2.5 |
% |
|
|
10.8 |
% |
|
|
(8.3 |
)% |
|
|
|
Adjusted Diluted (Loss) Earnings Per Share |
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.11 |
) |
|
|
|
Free Cash Flow |
$ |
(41.7 |
) |
|
$ |
26.6 |
|
|
$ |
(68.3 |
) |
|
|
|
(1) For QTD and YTD, percentage change for net loss, diluted loss per share, cash flow from operations, adjusted net (loss) income, adjusted diluted (loss) earnings per share and free cash flow were excluded as they were determined to be not meaningful due to a loss or negative position in one or both periods. |
||||||||||||||
(2) Acquisitions completed in the last twelve months had an immaterial contribution to revenue growth for the quarter and six months ended June 30, 2024. |
||||||||||||||
(3) The three and six months ended June 30, 2024 include a net reversal of |
||||||||||||||
(4) See “Non-GAAP financial measures” for how we define these measures and the financial tables that accompany this release for reconciliation of these measures to the closest comparable GAAP measures. |
||||||||||||||
(5) Revenue Growth Rate at Constant Currency is calculated by translating the current period revenues into |
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Bookings
Our overall bookings for the trailing twelve months ended June 30, 2024 was
|
Trailing Twelve Months
|
||
$ in millions |
2024 |
|
2023 |
# of clients with bookings greater than |
35 |
|
38 |
# of clients with bookings between |
24 |
|
27 |
Revenue by geography(6) |
|||||||||||||||||
|
Three Months Ended June 30, |
|
|
|
Six Months Ended June 30, |
|
|
||||||||||
$ in thousands |
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
|
$ |
88,255 |
|
$ |
107,570 |
|
(18.0 |
)% |
|
$ |
177,055 |
|
$ |
222,630 |
|
(20.5 |
)% |
APAC |
|
89,095 |
|
|
98,680 |
|
(9.7 |
)% |
|
|
175,808 |
|
|
196,164 |
|
(10.4 |
)% |
|
|
63,054 |
|
|
65,763 |
|
(4.1 |
)% |
|
|
125,266 |
|
|
144,547 |
|
(13.3 |
)% |
LATAM |
|
11,267 |
|
|
15,202 |
|
(25.9 |
)% |
|
|
22,135 |
|
|
30,930 |
|
(28.4 |
)% |
Total revenues |
$ |
251,671 |
|
$ |
287,215 |
|
(12.4 |
)% |
|
$ |
500,264 |
|
$ |
594,271 |
|
(15.8 |
)% |
(6) Revenues are presented geographically, by customer location. During the first quarter of 2024, in connection with the restructuring, the Company updated the disaggregation of revenue by customer location to reflect the geographical market based on contracting location, consistent with client ownership within our geographical markets, versus billing location, as previously reported. All corresponding disclosures and historical amounts have been recast to reflect the change. |
|||||||||||||||||
Revenue by industry vertical |
|||||||||||||||||
|
Three Months Ended
|
|
|
|
Six Months Ended June
|
|
|
||||||||||
$ in thousands |
|
2024 |
|
|
2023 |
|
% Change |
|
|
2024 |
|
|
2023 |
|
% Change |
||
Technology and business services |
$ |
64,120 |
|
$ |
69,695 |
|
(8.0 |
)% |
|
$ |
129,489 |
|
$ |
143,828 |
|
(10.0 |
)% |
Energy, public and health services |
|
63,530 |
|
|
75,313 |
|
(15.6 |
)% |
|
|
126,552 |
|
|
159,352 |
|
(20.6 |
)% |
Retail and consumer |
|
42,687 |
|
|
44,485 |
|
(4.0 |
)% |
|
|
81,618 |
|
|
92,397 |
|
(11.7 |
)% |
Financial services and insurance |
|
36,928 |
|
|
52,778 |
|
(30.0 |
)% |
|
|
76,083 |
|
|
107,933 |
|
(29.5 |
)% |
Automotive, travel and transportation |
|
44,406 |
|
|
44,944 |
|
(1.2 |
)% |
|
|
86,522 |
|
|
90,761 |
|
(4.7 |
)% |
Total revenues |
$ |
251,671 |
|
$ |
287,215 |
|
(12.4 |
)% |
|
$ |
500,264 |
|
$ |
594,271 |
|
(15.8 |
)% |
Liquidity
We had cash and cash equivalents of
Supporting resources:
- Keep up with Thoughtworks news by visiting the company’s website.
- Follow us on X, LinkedIn and YouTube.
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About Thoughtworks
Thoughtworks is a global technology consultancy that integrates strategy, design and engineering to drive digital innovation. We are over 10,500 Thoughtworkers strong across 48 offices in 19 countries. For 30+ years, we've delivered extraordinary impact together with our clients by helping them solve complex business problems with technology as the differentiator.
Thoughtworks uses and intends to continue to use our investor relations website at https://investors.thoughtworks.com and social media, @thoughtworks on Twitter and LinkedIn, as a means of publicly disclosing material information and for complying with our disclosure obligations under Regulation Fair Disclosure. Investors should monitor these channels in addition to following the Company’s press releases, SEC filings, public conference calls and webcasts.
Forward-looking statements
This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements represent our management's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that our actual future results may be materially different from what we expect. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, which include but are not limited to: the statements under “Update on Restructuring Activities,” including expectations relating to the size of the restructuring actions, the amount and timing of related cost savings and charges and the potential long-term benefits of the restructuring actions; statements regarding relationships with existing and potential clients and their engagement decisions; and any other statements of expectation or belief. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include, but are not limited to, those related to: current and future impact of macro-related factors on Thoughtworks' clients’ engagement decisions, Thoughtworks’ business and industry; the effects of competition on the future business of Thoughtworks; uncertainty regarding the demand for and market utilization of our services; the ability to implement our restructuring actions, including the costs of such actions and the uncertainty of the impact of such actions on financial performance; the ability to maintain or acquire new client relationships; other general business and economic conditions (including such conditions related to inflation and foreign currency exchange rates); and our ability to successfully execute our strategy and strategic plans. For additional information concerning these and other risks and uncertainties, please see Thoughtworks' latest Annual Report on Form 10-K, latest Quarterly Report on Form 10-Q, and other filings and reports that Thoughtworks may file from time to time. Except as required by law, Thoughtworks assumes no obligation, and does not intend, to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Non-GAAP financial measures
Certain financial metrics contained in this press release are considered non-GAAP financial measures. Definitions of and the related reconciliations for these non-GAAP financial measures can be found below. We use these non-GAAP measures in conjunction with traditional GAAP measures to evaluate our financial performance. We believe that these non-GAAP measures provide our management and investors consistency and comparability with our past financial performance and facilitate period-to-period comparisons of operations. However, non-GAAP measures have limitations as analytical tools, and you should not consider these measures in isolation or as substitutes for analysis of our financial results as reported under GAAP. For example, many of the non-GAAP financial measures used herein exclude stock-based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring non-cash expense for our business and an important part of our compensation strategy.
Revenue Growth Rate and Revenue Growth Rate at constant currency
Certain of our subsidiaries use functional currencies other than the
Adjusted Gross Profit and Adjusted Gross Margin
We define gross profit as total revenues less cost of revenues. We define Adjusted Gross Profit as gross profit excluding stock-based compensation expense, employer payroll related expense on employee equity incentive plan and depreciation expense. We calculate Adjusted Gross Margin by dividing Adjusted Gross Profit by total revenues. Our management uses Adjusted Gross Profit to assess overall performance and profitability, without regard to the aforementioned adjustments, which are unrelated to our ongoing revenue-generating operations. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business.
Adjusted SG&A and Adjusted SG&A Margin
We define Adjusted SG&A as selling, general and administrative expense excluding stock-based compensation expense, acquisition costs, certain professional fees that are considered unrelated to our ongoing revenue-generating operations, employer payroll related expense on employee equity incentive plan and CEO transition costs. We calculate Adjusted SG&A Margin by dividing Adjusted SG&A by total revenues.
Our management uses Adjusted SG&A and Adjusted SG&A Margin to assess our overall performance, without regard to items such as stock-based compensation expense and other items that are considered to be unique or non-recurring in nature or otherwise unrelated to our ongoing revenue-generating operations. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business.
Adjusted Net (Loss) Income and Adjusted Diluted (Loss) Earnings Per Share
We define Adjusted Net (Loss) Income as net loss adjusted for unrealized loss (gain) on foreign currency exchange, stock-based compensation expense, amortization of acquisition-related intangibles, acquisition costs, certain professional fees that are considered unrelated to our ongoing revenue-generating operations, employer payroll related expense on employee equity incentive plan, the change in fair value of contingent consideration, restructuring costs, CEO transition costs and income tax effects of adjustments.
We define Adjusted Diluted (Loss) Earnings Per Share as diluted loss per share, with the numerator adjusted for the aforementioned adjustments to Adjusted Net (Loss) Income. In other words, the numerator for Adjusted Diluted (Loss) Earnings Per Share utilizes Adjusted Net (Loss) Income. We calculate Adjusted Diluted (Loss) Earnings Per Share by dividing Adjusted Net (Loss) Income by diluted weighted average shares outstanding.
Our management uses Adjusted Net (Loss) Income and Adjusted Diluted (Loss) Earnings Per Share to assess our overall performance, without regard to items that are considered to be unique or non-recurring in nature or otherwise unrelated to our ongoing revenue-generating operations, net of the income tax effects of adjustments.
Our management uses Adjusted Net (Loss) Income for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net loss adjusted to exclude income tax expense; interest expense; other (income) expense, net, excluding a gain related to the mark to market adjustment on shares received in relation to the sale and settlement of trade receivables; unrealized loss (gain) on foreign currency exchange; stock-based compensation expense; depreciation and amortization expense; acquisition costs; certain professional fees that are considered unrelated to our ongoing revenue generating operations; employer payroll related expense on employee equity incentive plan; restructuring charges; and CEO transition costs. We calculate Adjusted EBITDA Margin by dividing Adjusted EBITDA by total revenues.
Adjusted EBITDA and Adjusted EBITDA Margin are widely used by investors and securities analysts to measure a company's operating performance without regard to the aforementioned adjustments that can vary substantially from company to company depending upon their financing, capital structures, and the method by which assets were acquired or costs that are unique or non-recurring in nature or otherwise unrelated to our ongoing revenue-generating operations.
Our management uses Adjusted EBITDA and Adjusted EBITDA Margin for planning purposes, including the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business.
Free Cash Flow
We define Free Cash Flow as net cash (used in) provided by operating activities less cash used for purchases of property and equipment. We believe that Free Cash Flow is a useful indicator of liquidity for investors and is used by our management as it measures our ability to generate cash, or our need to access additional sources of cash, to fund operations and investments. There are a number of limitations related to the use of free cash flow as compared to net cash from operating activities, including that Free Cash Flow includes capital expenditures, the benefits of which are realized in periods subsequent to those when expenditures are made.
THOUGHTWORKS HOLDING, INC. |
|||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS |
|||||||||||||||
(In thousands, except share and per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
$ |
251,671 |
|
|
$ |
287,215 |
|
|
$ |
500,264 |
|
|
$ |
594,271 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Cost of revenues |
|
181,444 |
|
|
|
196,338 |
|
|
|
360,257 |
|
|
|
405,860 |
|
Selling, general and administrative expenses |
|
79,816 |
|
|
|
86,626 |
|
|
|
156,046 |
|
|
|
172,966 |
|
Depreciation and amortization |
|
5,662 |
|
|
|
5,874 |
|
|
|
11,297 |
|
|
|
11,416 |
|
Restructuring |
|
7,212 |
|
|
|
— |
|
|
|
9,327 |
|
|
|
— |
|
Total operating expenses |
|
274,134 |
|
|
|
288,838 |
|
|
|
536,927 |
|
|
|
590,242 |
|
(Loss) income from operations |
|
(22,463 |
) |
|
|
(1,623 |
) |
|
|
(36,663 |
) |
|
|
4,029 |
|
Other (expense) income: |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
(6,637 |
) |
|
|
(6,150 |
) |
|
|
(13,223 |
) |
|
|
(13,012 |
) |
Net realized and unrealized foreign currency (loss) gain |
|
(5,905 |
) |
|
|
(30 |
) |
|
|
(16,313 |
) |
|
|
1,155 |
|
Other income (expense), net |
|
144 |
|
|
|
135 |
|
|
|
493 |
|
|
|
(588 |
) |
Total other expense |
|
(12,398 |
) |
|
|
(6,045 |
) |
|
|
(29,043 |
) |
|
|
(12,445 |
) |
Loss before income taxes |
|
(34,861 |
) |
|
|
(7,668 |
) |
|
|
(65,706 |
) |
|
|
(8,416 |
) |
Income tax expense |
|
1,629 |
|
|
|
4,604 |
|
|
|
1,666 |
|
|
|
11,963 |
|
Net loss |
$ |
(36,490 |
) |
|
$ |
(12,272 |
) |
|
$ |
(67,372 |
) |
|
$ |
(20,379 |
) |
|
|
|
|
|
|
|
|
||||||||
Other comprehensive (loss) income, net of tax: |
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments |
|
2,864 |
|
|
|
(651 |
) |
|
|
2,500 |
|
|
|
(409 |
) |
Comprehensive loss |
$ |
(33,626 |
) |
|
$ |
(12,923 |
) |
|
$ |
(64,872 |
) |
|
$ |
(20,788 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per common share: |
|
|
|
|
|
|
|
||||||||
Basic loss per common share |
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.06 |
) |
Diluted loss per common share |
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.06 |
) |
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
323,000,992 |
|
|
|
317,341,907 |
|
|
|
322,819,551 |
|
|
|
316,899,214 |
|
Diluted |
|
323,000,992 |
|
|
|
317,341,907 |
|
|
|
322,819,551 |
|
|
|
316,899,214 |
|
Stock-based compensation expense included in the condensed consolidated statements of loss and comprehensive loss was as follows: |
|||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
Cost of revenues |
$ |
5,073 |
|
$ |
10,696 |
|
$ |
10,672 |
|
$ |
21,226 |
Selling, general and administrative expenses (1) |
|
4,265 |
|
|
6,910 |
|
|
9,285 |
|
|
14,059 |
Total stock-based compensation expense |
$ |
9,338 |
|
$ |
17,606 |
|
$ |
19,957 |
|
$ |
35,285 |
(1) The three and six months ended June 30, 2024 include a net reversal of |
|||||||||||
THOUGHTWORKS HOLDING, INC. |
|||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands, except share and per share data) |
|||||||
|
June 30, 2024 |
|
December 31, 2023 |
||||
|
(unaudited) |
|
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
47,740 |
|
|
$ |
100,305 |
|
Trade receivables, net of allowance of |
|
143,849 |
|
|
|
167,942 |
|
Unbilled receivables |
|
133,350 |
|
|
|
115,150 |
|
Prepaid expenses |
|
15,772 |
|
|
|
19,692 |
|
Other current assets |
|
25,906 |
|
|
|
25,269 |
|
Total current assets |
|
366,617 |
|
|
|
428,358 |
|
Property and equipment, net |
|
26,455 |
|
|
|
26,046 |
|
Right-of-use assets |
|
35,274 |
|
|
|
41,771 |
|
Intangibles and other assets: |
|
|
|
||||
Goodwill |
|
418,057 |
|
|
|
424,565 |
|
Trademark |
|
273,000 |
|
|
|
273,000 |
|
Other intangible assets, net |
|
107,576 |
|
|
|
114,186 |
|
Other non-current assets |
|
20,121 |
|
|
|
19,310 |
|
Total assets |
$ |
1,247,100 |
|
|
$ |
1,327,236 |
|
Liabilities and stockholders' equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
3,114 |
|
|
$ |
2,767 |
|
Long-term debt, current |
|
7,150 |
|
|
|
7,150 |
|
Accrued compensation |
|
80,913 |
|
|
|
88,712 |
|
Deferred revenue |
|
12,714 |
|
|
|
18,090 |
|
Accrued expenses and other current liabilities |
|
24,140 |
|
|
|
27,260 |
|
Lease liabilities, current |
|
13,595 |
|
|
|
15,301 |
|
Total current liabilities |
|
141,626 |
|
|
|
159,280 |
|
Lease liabilities, non-current |
|
24,915 |
|
|
|
29,791 |
|
Long-term debt, less current portion |
|
282,694 |
|
|
|
286,035 |
|
Deferred tax liabilities |
|
44,269 |
|
|
|
54,907 |
|
Other long-term liabilities |
|
24,262 |
|
|
|
24,093 |
|
Total liabilities |
|
517,766 |
|
|
|
554,106 |
|
Commitments and contingencies |
|
|
|
||||
Stockholders’ equity: |
|
|
|
||||
Convertible preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
374 |
|
|
|
373 |
|
Treasury stock, 50,468,538 and 50,468,697 shares at June 30, 2024 and December 31, 2023, respectively |
|
(622,987 |
) |
|
|
(622,988 |
) |
Additional paid-in capital |
|
1,648,567 |
|
|
|
1,627,491 |
|
Accumulated other comprehensive loss |
|
(35,666 |
) |
|
|
(38,166 |
) |
Retained deficit |
|
(260,954 |
) |
|
|
(193,580 |
) |
Total stockholders' equity |
|
729,334 |
|
|
|
773,130 |
|
Total liabilities and stockholders' equity |
$ |
1,247,100 |
|
|
$ |
1,327,236 |
|
THOUGHTWORKS HOLDING, INC. |
|||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||
(In thousands) |
|||||||
|
Six months ended June 30, |
||||||
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(67,372 |
) |
|
$ |
(20,379 |
) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
14,377 |
|
|
|
18,220 |
|
Bad debt expense |
|
2,237 |
|
|
|
2,596 |
|
Deferred income tax benefit |
|
(9,943 |
) |
|
|
(12,033 |
) |
Stock-based compensation expense |
|
19,957 |
|
|
|
35,285 |
|
Unrealized foreign currency exchange loss/(gain) |
|
15,505 |
|
|
|
(735 |
) |
Non-cash lease expense on right-of-use assets |
|
7,883 |
|
|
|
9,312 |
|
Other operating activities, net |
|
534 |
|
|
|
2,018 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Trade receivables |
|
18,236 |
|
|
|
47,332 |
|
Unbilled receivables |
|
(20,746 |
) |
|
|
(15,276 |
) |
Prepaid expenses and other assets |
|
1,808 |
|
|
|
2,727 |
|
Lease liabilities |
|
(7,453 |
) |
|
|
(9,495 |
) |
Accounts payable |
|
113 |
|
|
|
(813 |
) |
Accrued expenses and other liabilities |
|
(9,087 |
) |
|
|
(28,516 |
) |
Net cash (used in) provided by operating activities |
|
(33,951 |
) |
|
|
30,243 |
|
Cash flows from investing activities: |
|
|
|
||||
Purchase of property and equipment |
|
(7,713 |
) |
|
|
(3,681 |
) |
Proceeds from disposal of fixed assets |
|
191 |
|
|
|
221 |
|
Acquisitions, net of cash acquired |
|
(1,399 |
) |
|
|
(15,989 |
) |
Net cash used in investing activities |
|
(8,921 |
) |
|
|
(19,449 |
) |
Cash flows from financing activities: |
|
|
|
||||
Payments of obligations of long-term debt |
|
(3,575 |
) |
|
|
(103,575 |
) |
Payments of debt issuance costs |
|
— |
|
|
|
(99 |
) |
Proceeds from issuance of common stock on exercise of options |
|
1,272 |
|
|
|
3,816 |
|
Withholding taxes paid related to net share settlement of equity awards |
|
(4,162 |
) |
|
|
(3,261 |
) |
Payment of contingent consideration |
|
— |
|
|
|
(13,996 |
) |
Other financing activities, net |
|
— |
|
|
|
80 |
|
Net cash used in financing activities |
|
(6,465 |
) |
|
|
(117,035 |
) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(2,924 |
) |
|
|
178 |
|
Net decrease in cash, cash equivalents and restricted cash |
|
(52,261 |
) |
|
|
(106,063 |
) |
Cash, cash equivalents and restricted cash at beginning of the period |
|
101,660 |
|
|
|
195,564 |
|
Cash, cash equivalents and restricted cash at end of the period |
$ |
49,399 |
|
|
$ |
89,501 |
|
|
|
|
|
||||
Supplemental disclosure of cash flow information: |
|
|
|
||||
Interest paid |
$ |
12,208 |
|
|
$ |
12,544 |
|
Income taxes paid |
$ |
9,375 |
|
|
$ |
31,929 |
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
47,740 |
|
|
$ |
88,151 |
|
Restricted cash included in other non-current assets |
|
1,659 |
|
|
|
1,350 |
|
Total cash, cash equivalents and restricted cash |
$ |
49,399 |
|
|
$ |
89,501 |
|
THOUGHTWORKS HOLDING, INC. |
|||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(In thousands, except percentages, share and per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(36,490 |
) |
|
$ |
(12,272 |
) |
|
$ |
(67,372 |
) |
|
$ |
(20,379 |
) |
Unrealized foreign exchange loss (gain) |
|
5,303 |
|
|
|
213 |
|
|
|
15,505 |
|
|
|
(735 |
) |
Stock-based compensation (a) |
|
9,987 |
|
|
|
17,606 |
|
|
|
20,606 |
|
|
|
35,285 |
|
Amortization of acquisition-related intangibles |
|
3,782 |
|
|
|
3,669 |
|
|
|
7,439 |
|
|
|
7,260 |
|
Acquisition costs (b) |
|
800 |
|
|
|
2,100 |
|
|
|
1,709 |
|
|
|
3,806 |
|
Certain professional fees (c) |
|
2,303 |
|
|
|
1,525 |
|
|
|
2,303 |
|
|
|
1,750 |
|
Employer payroll related expense on employee equity incentive plan (d) |
|
43 |
|
|
|
249 |
|
|
|
264 |
|
|
|
491 |
|
Change in fair value of contingent consideration (e) |
|
— |
|
|
|
129 |
|
|
|
— |
|
|
|
129 |
|
Restructuring (f) |
|
7,212 |
|
|
|
— |
|
|
|
9,327 |
|
|
|
— |
|
CEO transition costs (g) |
|
1,102 |
|
|
|
— |
|
|
|
1,102 |
|
|
|
— |
|
Income tax effects of adjustments (h) |
|
(2,552 |
) |
|
|
(3,114 |
) |
|
|
(6,836 |
) |
|
|
(7,435 |
) |
Adjusted Net (Loss) Income |
$ |
(8,510 |
) |
|
$ |
10,105 |
|
|
$ |
(15,953 |
) |
|
$ |
20,172 |
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted weighted average common shares outstanding |
|
323,000,992 |
|
|
|
317,341,907 |
|
|
|
322,819,551 |
|
|
|
316,899,214 |
|
Employee stock options, RSUs and PSUs |
|
— |
|
|
|
12,250,374 |
|
|
|
— |
|
|
|
13,561,172 |
|
Adjusted diluted weighted average common shares outstanding |
|
323,000,992 |
|
|
|
329,592,281 |
|
|
|
322,819,551 |
|
|
|
330,460,386 |
|
GAAP diluted loss per share |
$ |
(0.11 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.06 |
) |
Adjusted Diluted (Loss) Earnings Per Share |
$ |
(0.03 |
) |
|
$ |
0.03 |
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
THOUGHTWORKS HOLDING, INC. |
|||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
(In thousands, except percentages, share and per share data) |
|||||||||||||||
(unaudited) |
|||||||||||||||
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(36,490 |
) |
|
$ |
(12,272 |
) |
|
$ |
(67,372 |
) |
|
$ |
(20,379 |
) |
Income tax expense |
|
1,629 |
|
|
|
4,604 |
|
|
|
1,666 |
|
|
|
11,963 |
|
Interest expense |
|
6,637 |
|
|
|
6,150 |
|
|
|
13,223 |
|
|
|
13,012 |
|
Other (income) expense, net (i) |
|
(29 |
) |
|
|
(6 |
) |
|
|
(215 |
) |
|
|
787 |
|
Unrealized foreign exchange loss (gain) |
|
5,303 |
|
|
|
213 |
|
|
|
15,505 |
|
|
|
(735 |
) |
Stock-based compensation (a) |
|
9,987 |
|
|
|
17,606 |
|
|
|
20,606 |
|
|
|
35,285 |
|
Depreciation and amortization |
|
7,222 |
|
|
|
9,131 |
|
|
|
14,377 |
|
|
|
18,220 |
|
Acquisition costs (b) |
|
800 |
|
|
|
2,100 |
|
|
|
1,709 |
|
|
|
3,806 |
|
Certain professional fees (c) |
|
2,303 |
|
|
|
1,525 |
|
|
|
2,303 |
|
|
|
1,750 |
|
Employer payroll related expense on employee equity incentive plan (d) |
|
43 |
|
|
|
249 |
|
|
|
264 |
|
|
|
491 |
|
Restructuring (f) |
|
7,212 |
|
|
|
— |
|
|
|
9,327 |
|
|
|
— |
|
CEO transition costs (g) |
|
1,102 |
|
|
|
— |
|
|
|
1,102 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
5,719 |
|
|
$ |
29,300 |
|
|
$ |
12,495 |
|
|
$ |
64,200 |
|
Net loss margin |
|
(14.5 |
)% |
|
|
(4.3 |
)% |
|
|
(13.5 |
)% |
|
|
(3.4 |
)% |
Adjusted EBITDA Margin |
|
2.3 |
% |
|
|
10.2 |
% |
|
|
2.5 |
% |
|
|
10.8 |
% |
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Gross profit, GAAP |
$ |
70,227 |
|
|
$ |
90,877 |
|
|
$ |
140,007 |
|
|
$ |
188,411 |
|
Stock-based compensation |
|
5,073 |
|
|
|
10,696 |
|
|
|
10,672 |
|
|
|
21,226 |
|
Employer payroll related expense on employee equity incentive plan (d) |
|
32 |
|
|
|
159 |
|
|
|
255 |
|
|
|
345 |
|
Depreciation expense |
|
1,560 |
|
|
|
3,257 |
|
|
|
3,080 |
|
|
|
6,804 |
|
Adjusted Gross Profit |
$ |
76,892 |
|
|
$ |
104,989 |
|
|
$ |
154,014 |
|
|
$ |
216,786 |
|
Gross margin, GAAP |
|
27.9 |
% |
|
|
31.6 |
% |
|
|
28.0 |
% |
|
|
31.7 |
% |
Adjusted Gross Margin |
|
30.6 |
% |
|
|
36.6 |
% |
|
|
30.8 |
% |
|
|
36.5 |
% |
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
SG&A, GAAP |
$ |
79,816 |
|
|
$ |
86,626 |
|
|
$ |
156,046 |
|
|
$ |
172,966 |
|
Stock-based compensation (a) |
|
(4,914 |
) |
|
|
(6,910 |
) |
|
|
(9,934 |
) |
|
|
(14,059 |
) |
Acquisition costs (b) |
|
(800 |
) |
|
|
(2,100 |
) |
|
|
(1,709 |
) |
|
|
(3,806 |
) |
Certain professional fees (c) |
|
(2,303 |
) |
|
|
(1,525 |
) |
|
|
(2,303 |
) |
|
|
(1,750 |
) |
Employer payroll related expense on employee equity incentive plan (d) |
|
(11 |
) |
|
|
(90 |
) |
|
|
(9 |
) |
|
|
(146 |
) |
CEO transition costs (g) |
|
(1,102 |
) |
|
|
— |
|
|
|
(1,102 |
) |
|
|
— |
|
Adjusted SG&A |
$ |
70,686 |
|
|
$ |
76,001 |
|
|
$ |
140,989 |
|
|
$ |
153,205 |
|
SG&A margin, GAAP |
|
31.7 |
% |
|
|
30.2 |
% |
|
|
31.2 |
% |
|
|
29.1 |
% |
Adjusted SG&A Margin |
|
28.1 |
% |
|
|
26.5 |
% |
|
|
28.2 |
% |
|
|
25.8 |
% |
(a) The three and six months ended June 30, 2024 exclude a net reversal of
(b) Adjusts for certain professional fees and retention wage expenses related to certain acquisitions.
(c) Adjusts for certain one-time professional fees.
(d) Adjusts for employer payroll related expense on employee equity incentive plan as these expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise. As a result, these expenses may vary in any particular period independent of the financial and operating performance of our business.
(e) Adjusts for the non-cash adjustment to the fair value of contingent consideration.
(f) Adjusts for restructuring costs which include wage-related expenses, such as employee severance and related benefits, and non-wage related expenses, including costs related to reducing leased office space, vendor contract cancellations, professional fees, and other reorganization costs.
(g) Adjusts for CEO transition costs which includes
(h) Adjusts for the income tax effects of the foregoing adjusted items, determined under the discrete method consistent with our non-GAAP measures of profitability.
(i) Excludes a gain which was included within other income (expense), net in the condensed consolidated statements of loss and comprehensive loss related to the mark to market adjustment on shares received in relation to the sale and settlement of trade receivables.
|
Three months ended June 30, |
|
Six months ended June 30, |
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net cash (used in) provided by operating activities |
$ |
(18,201 |
) |
|
$ |
(2,804 |
) |
|
$ |
(33,951 |
) |
|
$ |
30,243 |
|
Purchase of property and equipment |
|
(3,489 |
) |
|
|
(2,024 |
) |
|
|
(7,713 |
) |
|
|
(3,681 |
) |
Free Cash Flow |
$ |
(21,690 |
) |
|
$ |
(4,828 |
) |
|
$ |
(41,664 |
) |
|
$ |
26,562 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240804893976/en/
Investor:
Thoughtworks Holding, Inc.
Rob Muller: investor-relations@thoughtworks.com
Press:
Thoughtworks Holding, Inc.
Linda Horiuchi: linda.horiuchi@thoughtworks.com
Source: Thoughtworks Holding, Inc.
FAQ
What were Thoughtworks' Q2 2024 revenue results?
What is the status of Thoughtworks' acquisition by Apax Partners?
How much has Thoughtworks' restructuring program saved so far?
What is the target completion date for Thoughtworks' restructuring program?
How did Thoughtworks' bookings perform in the trailing twelve months ended June 30, 2024?
