TWKS - Thoughtworks Holding reports mixed Q3 earnings; narrows FY22 and initiates Q4 guidance

• Thoughtworks Holding press release ( NASDAQ: TWKS ): Q3 Non-GAAP EPS of $0.08 misses by $0.03 .
• Revenue of $332.4M (+16.6% Y/Y) beats by $4.88M .
• Adjusted EBITDA of $67.2M compared to $66.5M for the third quarter of 2021; Adjusted EBITDA Margin of 20.2% compared to 23.3% for the third quarter of 2021.
• Adjusted Gross Margin for the third quarter was 40.7% compared to 45.7% in the third quarter of 2021.
• Thoughtworks expects the following for the fourth quarter : Revenues in the range of $303 million to $309 million vs. consensus of $342.54M, reflecting year-over-year growth of 5.6% to 7.7%; or 14.2% to 16.3% in constant currency; Adjusted EBITDA Margin in the range of 17.0% to 18.0%; Adjusted Diluted EPS in the range of $0.08 to $0.09 vs. consensus of $0.13 for the quarter, assuming a weighted average of 330 million diluted outstanding shares for the quarter.
• Thoughtworks now expects the following for the full year : Revenue growth in the range of 20.4% to 21.0% vs. estimated growth of 23.69% Y/Y; or 26.7% to 27.3% in constant currency; Adjusted EBITDA Margin in the range of 19.4% to 19.6%; and Adjusted Diluted EPS in the range of $0.40 to $0.41 for the year vs. consensus of $0.48, assuming a weighted average of 331 million diluted outstanding shares for the year.

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