Mastech Digital(MHH) - 2024 Q3 - Quarterly Results

Revenue Growth - Total consolidated revenues for Q3 2024 increased by $4.1 million year-over-year to$51.8 million, marking the third consecutive quarter of revenue growth [2]. - The Data and Analytics Services segment reported revenues of $9.4 million, a 17$42.4 million, reflecting a 7% year-over-year growth and a 4% sequential growth from Q2 2024 [2]. - Total revenues for the three months ended September 30, 2024, were $51,839,000, an increase from$47,779,000 in the same period of 2023, representing a growth of 4.4% [17]. - Data and analytics services revenue increased to $9,398,000 for the three months ended September 30, 2024, compared to$8,038,000 in 2023, reflecting a growth of 16.9% [17]. - IT staffing services revenue rose to $42,441,000 for the three months ended September 30, 2024, up from$39,741,000 in 2023, marking a growth of 6.8% [17]. Profitability - Gross margins reached a record 28.5% in Q3 2024, up from 26.3% in Q3 2023 [3]. - Non-GAAP net income for the three months ended September 30, 2024, was $2,769,000, compared to$1,257,000 in the same period of 2023, an increase of 120.1% [16]. - GAAP net income for the three months ended September 30, 2024, was $1,875,000, compared to a loss of$125,000 in 2023 [16]. - Income before income taxes for the three months ended September 30, 2024, was $2,572,000, significantly higher than$154,000 in the same period of 2023 [17]. Earnings Per Share - GAAP diluted earnings per share were $0.16 in Q3 2024, compared to$0.01 in Q3 2023 and $0.12 in Q2 2024 [2]. - Non-GAAP diluted earnings per share increased to$0.23 in Q3 2024, up from $0.11 in Q3 2023 [3]. - Non-GAAP diluted earnings per share for the three months ended September 30, 2024, was$0.23, up from $0.11 in the same period of 2023 [16]. Cash Flow and Financial Position - Cash balances on hand as of September 30, 2024, were$23.9 million, with no bank debt and approximately $25 million available under the revolving credit facility [5]. - Free cash flow for the first nine months of 2024 totaled$2.3 million, including $4.3 million in investments to support revenue growth [5]. Operational Metrics - Order bookings in the Data and Analytics Services segment totaled$11.1 million, exceeding Q3 2023 bookings by $6 million [4]. - The company experienced a 13$1,145,000 for the three months ended September 30, 2024, compared to a loss of $832,000 in 2023 [17]. - The company reported a gross margin of 50.7% for data and analytics services in the three months ended September 30, 2024, compared to 45.8% in 2023 [17].