Thoughtworks Holding, Inc. (NASDAQ:TWKS) Q1 2022 Earnings Conference Call May 9, 2022 8:00 AM ET

Company Participants

Guo Xiao - CEO

Erin Cummins - CFO

Conference Call Participants

Tien-Tsin Huang - JPMorgan

Ashwin Shirvaikar - Citi

Maggie Nolan - William Blair

Charlotte Bedick - Goldman Sachs

Darrin Peller - Wolfe Research

Dan Perlin - RBC Capital Markets

Bryan Bergin - Cowen & Company

David Koning - Robert W. Baird

Moshe Khatri - Wedbush Securities

Unidentified Company Representative

Hello, everyone, and welcome to Thoughtworks Earnings Call for the First Quarter of 2022. We will be recording today's call, and during the presentation, all lines will be on listen-only. Joining us today will be Thoughtworks' President and CEO, Guo Xiao, and CFO, Erin Cummins. The earnings press release was issued earlier today, and is available on the Investor Relations page on Thoughtworks.com if you want to review or download a copy.

Some of the matters we’ll discuss on this call, including our expected business outlook, are forward-looking, and as such, are subject to known and unknown risks and uncertainties, including, but not limited to, those factors described in today's press release and discussed in the Risk Factors section of our annual report on Form 10-K, our quarterly reports on Form 10-Q, and other reports we may file with the SEC from time to time. These risks and uncertainties could cause actual results to differ materially from those expressed on this call. We caution you not to place undue reliance on these forward-looking statements because they are made only as of the date when made. During our call today, we will reference certain non-GAAP financial measures which we believe provide useful information for investors. We also provide growth rates in constant currency as a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency rate fluctuations. We include reconciliations of non-GAAP financial measures to our GAAP financial measures in our press release, furnished as an exhibit to our Form 8-K, which is available on the Investor Relations section of our website at Thoughtworks.com. The non-GAAP financial measures provided, should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. Thoughtworks assumes no obligation to update or revise the information presented on this conference call.

I will now hand over to Xiao.

Guo Xiao

Thank you, Sean. Welcome, everyone, to our first quarter earnings call. I would like to start by sharing an overall update on the business, and then Erin will take you through our first quarter financial results in more detail. I'll then share some of our business highlights, before Erin provides guidance, and we open for Q&A. Let me start with a recap about Thoughtworks. We’re a global technology consultancy that integrates strategy, design, and engineering to drive digital innovation. We enable enterprises and technology disruptors to thrive as modern digital businesses. I’m pleased to report excellent results in our first quarter, driven by the continued high demand for our digital transformation services. We delivered revenue of $321 million in the first quarter of 2022, reflecting year-on-year growth of 35% and 38.2% in constant currency. In the quarter, we achieved adjusted EBITDA of $73 million, reflecting 35.4% growth compared to first quarter 2021. Thoughtworks has established a reputation for thought leadership and fostering a unique and cultivating culture. The diverse and global culture continues to attract and retain what we believe to be the best talent in the industry. At the end of March, 2022, we were over 11,000 Thought Workers strong across five continents. I would like to thank every Thought worker around the world for the extraordinary impact they create through our technology excellence and culture.