Thoughtworks Reports Strong Q3 Results, Offers Guidance


Global technology consultancy Thoughtworks Holding, Inc. (TWKS) reported strong financial results for the third quarter of 2021 before the market opened on Monday.

Headquartered in Illinois, the company provides software design and delivery, and tools and consulting services. It has 48 offices in 17 countries.

Shares of the company closed 2.2% down on Friday at $30.74.

Q3 Results

Adjusted earnings stood at $0.14 per share, almost double the year-ago figure of $0.08 per share and higher than the Street’s estimate of $0.10 per share.

Revenues increased 45% year-over-year to $285.1 million, exceeding analysts’ expectations of $281.74 million.

Adjusted EBITDA grew 52.5% to $66.5 million, and adjusted gross margin rose 300 basis points year-over-year to 45.7%. (See Insiders’ Hot Stocks on TipRanks)

CEO Comments

The CEO of Thoughtworks, Guo Xiao, said, “I am delighted that we achieved another milestone in the quarter, reaching over 10,000 Thoughtworkers across five continents…To reflect the positive momentum we are seeing in the third quarter as well as our expectations for the remainder of the year, we are providing our fourth quarter and full-year 2021 guidance.”

Outlook

The company expects revenues in the range of $285 million to $287 million in the fourth quarter. Further, adjusted earnings per share (EPS) is expected to range from $0.08 to $0.09.

For 2021, Thoughtworks anticipates revenues to lie between $1.068 billion and $1.07 billion, and adjusted EPS to come in the range of $0.45 per share to $0.46 per share.

Analyst Recommendation

Overall, the stock has a Moderate Buy consensus rating based on 8 Buys and 4 Holds. The average Thoughtworks Holding price target of $31.70 implies 3.1% upside potential. Shares have gained 4.6% over the past year.

Investor Opinion

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Thoughtworks with 61.3% of investors on TipRanks increasing their exposure to the stock over the past 30 days.

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