Executive Summary

Q4 revenue of $274.2M grew 17.1% YoY and exceeded the top end of guidance by $4.9M; however, adjusted EBITDA of $53.8M implied a 19.6% margin, about 150 bps below guidance due to ramp costs and a security incident that temporarily suspended operations and kept staff on payroll during downtime .
Management initiated 2025 guidance for $1.095–$1.125B revenue (~11.6% YoY at the midpoint), ~21% adjusted EBITDA margin, and ~$100M adjusted FCF; Q1’25 revenue guided to $270–$272M with ~20% adjusted EBITDA margin, acknowledging sequential headwinds of ~$15M from fewer working days and seasonality .
Growth was broad-based across service lines: DCX +8.5% YoY, Trust & Safety +34% YoY, and AI Services +31% YoY in Q4; AI Services is expected to be the fastest-growing line in 2025, supported by new wins including a social-media client expected to quickly become a top-20 customer .
Client concentration increased: the largest client reached 25% of Q4 revenue (vs. 19% a year ago), though management sees continued acceleration and highlights growing AI work with this client; regional delivery growth was strong in LatAm (~35%) and Europe (>43%) .

What Went Well and What Went Wrong

What Went Well

Broad-based top-line outperformance with Q4 revenue of $274.2M (+17.1% YoY), beating guidance by $4.9M; growth accelerated vs. Q3 and set another quarterly revenue record .
Strong momentum in specialized offerings: Trust & Safety +34% YoY and AI Services +31% YoY in Q4; management expects AI Services to be the fastest-growing line in 2025 given demand from LLM developers and large social-media customers .
Strategic wins and cross-sell: New logo uptick, healthcare and financial services expansions, and a meaningful DCX expansion with a smart-home security provider; “we intend to be an AI winner” and are launching an Agentic AI consulting practice to automate simple workflows while maintaining complex services revenue streams .

What Went Wrong

Profitability shortfall: Adjusted EBITDA margin of 19.6% missed guidance (~21.1%) due to growth-driven ramp costs and a security incident that required suspending operations and continuing pay for impacted teammates; management is increasing security investments .
Higher SG&A (24.7% of revenue vs. 20.9% last year) driven by litigation costs and higher personnel/bonus expenses tied to revenue attainment, pressuring adjusted net income and adjusted EPS (down YoY) .
Free cash flow conversion down YoY (Q4 FCF $20.4M vs. $31.7M last year) amid higher capex and working capital to support 2025 revenue growth; FY24 adjusted FCF of $107.4M came in slightly below ~$110M guidance .

Financial Results

Headline Metrics (GAAP and Non-GAAP)

Metric	Q4 2023	Q3 2024	Q4 2024
Revenue ($M)	$234.3	$255.3	$274.2
GAAP Diluted EPS ($)	$0.18	$0.14	$0.10
Adjusted EPS ($)	$0.35	$0.37	$0.31
Adjusted EBITDA ($M)	$59.0	$54.2	$53.8
Adjusted EBITDA Margin (%)	25.2%	21.2%	19.6%
Net Income Margin (%)	6.9%	5.0%	3.2%
Free Cash Flow ($M)	$31.7	$6.3	$20.4

Notes: Adjusted metrics per company definitions; see non-GAAP reconciliations in filings .

Service Line Breakdown – Q4 2024

Service Line	Revenue ($M)	YoY Growth
Digital Customer Experience (DCX)	$164.8	+8.5%
Trust & Safety	$70.0	+34%
AI Services	$39.4	+31%

KPIs and Mix

KPI	Q4 2024
Clients	~200; >50% with >$1M revenue
Largest Client % of Revenue	25% (vs. 19% in Q4’23; 23% in Q3’24)
Top 10 / Top 20 Clients Mix	57% / 69%
Headcount	~59,000 (+4,200 QoQ)
Revenue by Delivery Region	PH 54%; US 13%; India 13%; ROW 20%
Cash & Cash Equivalents	$192.2M
Revolver Capacity	$190M available
Net Debt Leverage	~0.3x adj. EBITDA

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($M)	Q1 2025	—	$270–$272	Initiated
Adjusted EBITDA Margin (%)	Q1 2025	—	~20%	Initiated
Revenue ($B)	FY 2025	—	$1.095–$1.125	Initiated
Adjusted EBITDA Margin (%)	FY 2025	—	~21%	Initiated
Adjusted Free Cash Flow ($M)	FY 2025	—	~100	Initiated

Management color: Sequential Q1 headwinds of ~~$15M from two fewer working days (~~$9M) and seasonality (~$6M); margins expected to improve through the year before typical seasonal dip in Q4 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 & Q3 2024)	Current Period (Q4 2024)	Trend
AI/Technology Initiatives	Returned to YoY growth; strong bookings; investments in tech; all service lines sequential growth; raised FY revenue outlook	Launching Agentic AI consulting practice; AI Services +31% YoY; expected to be fastest-growing in 2025; broad LLM and social media demand	Improving
Macro/Seasonality	Raised FY24 guide; demand broad-based across regions; LATAM/Europe strong	Q1’25 ~$15M sequential headwind from fewer days and seasonality; sustained double-digit YoY growth expected	Stable
Security/Compliance	Not highlighted in Q2/Q3	Q4 security incident impacted revenue/margins; operations suspended briefly with continued pay; increased security investments	Near-term headwind; proactive mitigation
Client Concentration	Record revenue; diversified growth, but largest client growing	Largest client 25% of Q4 revenue; expected to grow faster than co. average in 2025; no fact-checking exposure	Concentration up
Vertical/Regional Trends	LATAM and Europe strong; all regions improving; bookings best since 2022	LATAM ~35% and Europe >43% YoY growth in Q4; DCX strength in financials/healthcare; new healthcare payer win	Improving
Margin Trajectory	Q3 adjusted EBITDA margin 21.2%	Q4 margin 19.6% (miss); plan to expand margins through 2025 despite security and AI investments	Near-term dip, gradual recovery planned

Management Commentary

“In the fourth quarter, we delivered $274.2 million in revenue… 17.1% year-over-year revenue growth. … we intend to continue this trend [in 2025].”
“Our top line revenue performance and outlook for 2025 again required higher-than-anticipated investments… Q4 revenue and costs were negatively impacted by certain business disruptions.”
“We’re proud to announce our Agentic AI consulting practice… by reselling, implementing and maintaining these tools… we will create an enduring revenue stream from the AI revolution.”
“In response [to the security event], we suspended our impacted operations… retained and paid the impacted teammates… investing more in information and physical security.”
“We expect to deliver full year 2025 revenue of approximately $1.11 billion… and adjusted EBITDA margins of approximately 21%.”

Q&A Highlights

Largest customer exposure: Company does not provide fact-checking services; supports integrity, financial crimes/compliance, and AI work. Management sees no significant risk and expects revenue with the largest client to grow faster than company average in 2025 (about 70% larger than in 2023 by YE25) .
Margin cadence: Guide for ~20% in Q1; sequential improvement into Q3, then typical seasonal dip in Q4; drivers include AI/security investments, facility/training ramp costs, and wage inflation .
Q1’25 strength vs FY cadence: Guidance embeds conservatism; strong bookings and reduced churn vs 2023; ~$15M sequential headwind factored; goal remains durable double-digit growth .
Security incident impact: Combined with 2025 ramp investments, the shortfall was “a few million dollars” relative to Q4 EBITDA guidance; ongoing “millions” earmarked for AI and security, factored into 2025 margin outlook .
Workforce productivity: Revenue per employee expected to improve with geographic mix stabilization and automation via Agentic AI tools; 2024 yield was stable after offshore mix shift .

Estimates Context

S&P Global consensus (EPS, revenue, EBITDA) for Q4 2024 was not retrievable at this time due to access limits. As a proxy, the company exceeded its internal Q4 revenue guidance while missing its adjusted EBITDA margin guidance, which would likely drive mixed estimate revisions (higher revenue, cautious near-term margin assumptions) .
We will update with consensus comparisons if/when S&P Global data becomes available.

Key Takeaways for Investors

Revenue momentum is accelerating with broad-based demand and a strong Q1’25 outlook; the near-term catalyst is continued validation of double-digit YoY growth against fewer working days and seasonality headwinds .
Profitability is the watch item near term: Q4 adj. EBITDA margin missed guidance on ramp/security costs; management plans sequential margin expansion through 2025 despite stepped-up AI/security investments .
AI Services is emerging as the growth engine and likely fastest-growing line in 2025; Agentic AI consulting provides a new revenue stream tied to automation implementations and recurring support .
Client concentration is increasing with the largest customer at 25% of Q4 revenue; management expects outsized growth with this client in 2025, a positive for revenue but a concentration risk to monitor .
Regional diversification continues to improve with strong growth in LatAm (~35%) and Europe (>43%); healthcare and financial services wins underscore progress in regulated verticals .
Liquidity and leverage are solid (cash $192.2M, revolver $190M, ~0.3x net debt leverage), supporting capex and growth ramps; FY25 adjusted FCF guided to ~$100M .
Near-term trading focus: revenue beats versus margin trajectory; medium-term thesis hinges on scaling AI Services, executing Agentic AI, and translating growth into sustained 21% margins as ramps normalize .

Appendix: Additional Data

GAAP Income Statement (select Q4 figures)

Service revenue: $274.2M (Q4’24) vs. $234.3M (Q4’23) .
Operating income: $22.0M (Q4’24) vs. $31.5M (Q4’23) .
Net income: $8.9M (Q4’24) vs. $16.3M (Q4’23) .

Balance Sheet and Cash Flow (FY-end)

Cash & equivalents: $192.2M (12/31/24) vs. $125.8M (12/31/23) .
Long-term debt: $241.4M (12/31/24) vs. $256.2M (12/31/23) .
Net cash from operations: $138.9M (FY24) vs. $143.7M (FY23); FCF $99.8M (FY24) .

Citations: Company 8‑K and press release for Q4’24 results and guidance ; Q4’24 earnings call transcript for service-line, client, regional and qualitative insights ; Q3’24 and Q2’24 press releases for historical comparisons .

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