Yahoo Finance

• Consolidated Revenue: $49.5 million in Q2 2024, down from $52.2 million in Q2 2023.

• Data and Analytics Services Revenue: $8.9 million in Q2 2024, up from $8.8 million in Q2 2023; 10% sequential growth.

• IT Staffing Services Revenue: $40.7 million in Q2 2024, down from $43.4 million in Q2 2023; 5% sequential growth.

• Consolidated Gross Profit: $14 million in Q2 2024.

• Consolidated Gross Margin: 28.2% in Q2 2024, up from 26.1% in Q2 2023.

• Data and Analytics Services Gross Margin: 49.2% in Q2 2024, up from 45.6% in Q2 2023.

• IT Staffing Services Gross Margin: 23.6% in Q2 2024, up from 22.2% in Q2 2023.

• GAAP Net Income: $1.4 million or $0.12 per diluted share in Q2 2024, compared to a net loss of $2.2 million or $0.19 loss per diluted share in Q2 2023.

• Non-GAAP Net Income: $2.2 million or $0.19 per diluted share in Q2 2024, compared to $1.3 million or $0.11 per diluted share in Q2 2023.

• Cash Balances: $20.6 million as of June 30, 2024.

• Days Sales Outstanding: 53 days at the end of Q2 2024.

• SG&A Expenses: 24.8% of revenue in Q2 2024, down from 25.6% in Q2 2023.

• Warning! GuruFocus has detected 6 Warning Signs with RYAM.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Mastech Digital Inc (MHH) achieved a record gross margin of 28.2% in Q2 2024, an improvement from 26.1% in Q2 2023.

• The Data and Analytics Services segment reported a 10% sequential revenue growth, driven by expanded client accounts and new client acquisitions.

• The IT staffing services segment saw a 5% sequential revenue growth, primarily from increased contract spending by existing large clients.

• The company reported a GAAP net income of $1.4 million in Q2 2024, compared to a net loss of $2.2 million in Q2 2023.

• Mastech Digital Inc (MHH) maintained a strong financial position with $20.6 million in cash and no bank debt as of June 30, 2024.

Negative Points

• Consolidated revenues for Q2 2024 were $49.5 million, down from $52.2 million in Q2 2023, indicating a year-over-year decline.

• The IT staffing services segment experienced a year-over-year revenue decrease from $43.4 million in Q2 2023 to $40.7 million in Q2 2024.

• The company did not repurchase any shares during Q2 2024 due to an extended blackout period related to confidential corporate matters.

• Mastech Digital Inc (MHH) continues to face challenges in maintaining consistent revenue growth, despite improvements in certain segments.

• The company did not provide any guidance for future quarters, which may create uncertainty for investors.