CHICAGO - Thoughtworks Holding, Inc. (NASDAQ:TWKS) saw its shares soar 25% after the technology consultancy reported second-quarter revenue that beat analyst expectations, despite ongoing challenges in the macroeconomic environment.
Thoughtworks also announced it has entered into a definitive merger agreement to be acquired by an affiliate of funds advised by Apax Partners LLP for $4.40 per share in cash.
The company posted revenue of $251.7 million for Q2, slightly above the consensus estimate of $251.37 million. However, this represents a 12.4% decline compared to $287.2 million in the same quarter last year.
Adjusted loss per share came in at $0.03, compared to earnings of $0.03 per share in Q2 2023.
"While we continue to face headwinds from the challenging macroeconomic environment, our industry-based go-to-market strategy is gaining momentum," said Guo Xiao, Thoughtworks' CEO. "We saw strong bookings in both the first and second quarters of 2024."
The company reported an adjusted EBITDA margin of 2.3% for the quarter, down significantly from 10.2% in the prior year period. Thoughtworks attributed the margin decline to reduced client budgets and a shift to lower-priced offshore services.
The company expanded its restructuring program, now targeting total cost savings of $185 million to $210 million to be completed by October 31, 2024. This includes reducing its global workforce by approximately 6% to 7%.
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