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  "documentTitle": "TaskUs, Inc. (TASK)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2022-01-20 00:00:00",
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  "notes": "Uses a side-by-side comparison to draw parallels between historical fraud and current company metrics.",
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      "text": "In Q2, I briefly discuss the increase in account receivable as a result of our strong revenue growth. We saw the impact of strong revenue growth on receivables again in Q3 as AR increased by $29.7 million from Q2 of 2021. We are implementing a new order to cash process as we onboard, new clients and expect to reduce our DSO in 2022.",
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      "text": "There are other oddities in Satyam's books, like fluctuations in the amount of unbilled revenue the company recorded. Unbilled revenue is work done for a customer but not yet invoiced. Analysts who follow outsourcing companies like to see unbilled revenue because it represents future earnings. But there is little documentation associated with the number, so unbilled revenue is easy to fudge.",
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      "kind": "callout",
      "text": "Although TASK's CFO didn't work directly at Satyam where the fraud occurred, he worked at a Satyam-controlled entity under its CFO.",
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      "text": "Unbilled Receivables: 63.8%",
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      "text": "Although TASK's CFO didn't work directly at Satyam where the fraud occurred, he worked at a Satyam-controlled entity under its CFO. A financial commentator at the NY Times pointed out oddities in Satyam's fluctuations of unbilled revenue, and warnings about an increase in the collection period for credit sales. Ironically, Spruce Point observes similar unbilled receivable anomalies and warnings about cash collections at TASK.",
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      "text": "\"There are other oddities in Satyam's books, like fluctuations in the amount of unbilled revenue the company recorded. Unbilled revenue is work done for a customer but not yet invoiced. Analysts who follow outsourcing companies like to see unbilled revenue because it represents future earnings. But there is little documentation associated with the number, so unbilled revenue is easy to fudge.\" — NY Times, Jan 2009",
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      "text": "Source: TASK financials and Spruce Point Analysis",
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      "text": "Source: \"In India, Clues Unfold to a Fraud's Framework,\" NY Times, Jan 2009",
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      "kind": "table",
      "text": "Table comparing Unbilled Receivables, Total Receivables, Unbilled %, LTM Sales, and Unbilled Receivables % LTM Sales across 2019, 2020, Q1 2021, Q2 2021, Q3 2021.",
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      "text": "Parallels Between Financial Anomalies At Satyam And TASK",
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