- Spruce Point Capital Management, LLC issued a report entitled "Moderating The Bull Case Content," justifying TaskUs, Inc (NASDAQ:TASK) facing up to 25% - 50% long-term downside risk, or $17.80 – $26.70 per share.
- The report uncovered evidence of CEO and co-founder Bryce Maddock providing multiple conflicting accounts of his education credentials and outlined his history of exaggeration and embellishment.
- Spruce warned investors against TaskUs' exaggeration of the size of its business and, possibly concealing its growing financial strains, most notably tied to its single-largest customer Meta Platforms Inc (NASDAQ:FB).
- Spruce highlighted poor financial reporting, including the omission of annual contract value during the IPO process and the use of a non-standard definition of annual employee attrition rate, possibly understating the actual turnover.
- Spruce had evidence portraying TaskUs' dwindling financial performance in the Content Security segment contradicting the company's leadership claims.
- Additionally, new industry reports referred to TaskUs as a "Market Contender" instead of a "Leader."
- Price Action: TASK shares traded lower by 17.5% at $29.37 on the last check Thursday.
