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Thoughtworks Holding, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenues to $261,393,000 from $280,159,000 in the same quarter the previous year. The decrease is attributed to a more cautionary macroeconomic environment and lower bill rates due to offshore and onshore mix.
Cost of revenues for the quarter was $169,456,000, representing 65% of revenues, compared to 66% in the same quarter of the previous year. This decrease in cost ratio is due to a reduction in payroll expenses.
The company reported a gross profit of $91,937,000 for the quarter, compared to $94,174,000 in the previous year, with the decline attributed to decreased revenues.
Net loss for the quarter was $6,055,000, compared to a net loss of $25,852,000 in the previous year. The decrease in net loss is primarily due to a $19,875,000 increase in net realized and unrealized foreign currency gain.
Cash used in operating activities was $31,889,000, while cash used in investing and financing activities was $11,711,000 and $7,245,000, respectively.
Thoughtworks had a working capital of $46,956,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details the proposed merger with affiliates of Apax Partners LLP, which is expected to close in the fourth quarter of 2024, subject to customary closing conditions.
Transaction costs related to the proposed merger were $10,200,000 for the quarter, with total expected pre-tax charges of approximately $56,500,000 to $68,000,000.
Thoughtworks does not anticipate cash dividend payments to common stockholders in the near future.
The company identified restructuring actions aimed at cost savings, with total restructuring costs of $22,604,000 for the quarter.
Thoughtworks continues to focus on expanding its client base and managing its operational costs in response to a challenging economic environment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Thoughtworks Holding Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.