In This Article:
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Revenue: $45 million, down 5.7% from $47.8 million in Q2 2023.
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Customer Care Revenue: $12.4 million, down from $14.9 million in Q2 2023.
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Sales Services Revenue: $4.4 million, up from $2.3 million in Q2 2023.
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Marketing Services Revenue: $7.7 million, down from $10.9 million in Q2 2023.
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Fulfillment & Logistics Revenue: $20.5 million, up from $19.6 million in Q2 2023.
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Operating Expenses: $43.7 million, including $427,000 in restructuring expenses, compared to $46.1 million in Q2 2023.
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Operating Income: $1.4 million, down from $1.7 million in Q2 2023.
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Adjusted Operating Income: $2.5 million, down from $3.4 million in Q2 2023.
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Adjusted Operating Margin: 5.6%, down from 7% in Q2 2023.
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EBITDA: $2.4 million, down from $2.7 million in Q2 2023.
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Adjusted EBITDA: $3.6 million, down from $4.4 million in Q2 2023.
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Cash and Cash Equivalents: $11 million as of June 30, 2024, down from $18 million at the end of 2023.
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Net Loss: $27.8 million due to a pension charge, with a net income of $300,000 excluding the pension charge.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Harte-Hanks Inc (NASDAQ:HHS) has successfully restructured its sales and marketing organization, leading to early new account wins that are expected to contribute to revenue growth.
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The company closed a significant new marketing services account with a global automotive manufacturer, highlighting the effectiveness of its partnership strategy.
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Harte-Hanks Inc (NASDAQ:HHS) has introduced a new product offering for small and medium-sized businesses, 'demand generation in a box,' which is expected to accelerate customer activation.
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The company has made strategic investments in its fulfillment segment, including a migration to a best-in-class warehouse technology suite, enhancing client inventory visibility and operational efficiency.
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Harte-Hanks Inc (NASDAQ:HHS) has hired a Chief Customer and Data Officer to drive customer-centric initiatives, leveraging advanced analytics and AI to enhance client experiences and foster loyalty.
Negative Points
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Second-quarter revenues decreased by 5.7% compared to the same period last year, with declines in customer care and marketing service segments.
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Operating income and adjusted EBITDA both declined compared to the second quarter of 2023, indicating challenges in maintaining profitability.
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The company experienced a significant pension charge of $38.2 million, resulting in a net loss of $27.8 million for the quarter.
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Cash and cash equivalents decreased from $18 million at the end of 2023 to $11 million as of June 30, 2024, reflecting a reduction in liquidity.
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The marketing services segment has faced challenges, with customer budget reductions and the end of specific programs contributing to revenue declines.