Thoughtworks Shares Pop On Q3 Beat, Robust Outlook

Thoughtworks Holding Inc TWKS reported third-quarter FY21 revenue growth of 45% year-on-year to $285.1 million, beating the consensus of $281.7 million.
Margins: The adjusted gross margin expanded 300 bps to 45.7%, reflecting solid execution and strong demand for premium digital transformation services.
The adjusted EBITDA margin expanded 110 bps to 23.3%.
Adjusted EPS of $0.14 beat the consensus of $0.10.
Thoughtworks generated $35.2 million in operating cash flow and held $452.8 million in cash and equivalents.
Revenue growth in North America grew 35.4%, APAC rose 53.2%, Europe improved 49.1%, and LATAM gained 47.4%.
Outlook: Thoughtworks sees Q4 revenue of $285 million - $287 million above the consensus of $283 million. It considers an adjusted EPS of $0.08 - $0.09 versus the consensus of $0.09.
Thoughtworks sees FY21 revenue of $1.068 billion - $1.070 billion, above the consensus of $1.060 billion. It considers an adjusted EPS of $0.45 - $0.46, above the consensus of $0.36.
Price Action: TWKS shares traded higher by 4.00% at $31.97 on the last check Monday.

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