Mastech Digital Reports Year-Over-Year Revenue Growth and Record Gross Margins in Third Quarter 2024

Mastech Digital, Inc., a leading provider of Digital Transformation IT Services, recently disclosed its financial results for the third quarter ended September 30, 2024, through a press release. The company reported an 8% year-over-year growth in revenues, reaching $51.8 million for the quarter. This performance marked the third consecutive quarter of revenue growth for Mastech Digital. Within its segments, the Data and Analytics Services saw revenues of $9.4 million, representing a 17% increase year-over-year and a 6% sequential growth. The IT Staffing Services segment generated revenues of $42.4 million, showing a 7% year-over-year growth and a 4% sequential quarterly increase.

Moreover, Mastech Digital achieved a significant milestone in gross margins, reaching a record 28.5% during the third quarter of 2024, surpassing previous levels. The company’s GAAP diluted earnings per share for the third quarter stood at $0.16 compared to $0.01 in the same period last year.

Vivek Gupta, Mastech Digital’s President and CEO, expressed satisfaction with the company’s performance, attributing it to a healthier macro-economic outlook and enhanced operational efficiencies. He highlighted the increased demand trajectory and improved gross margin performance as key factors driving the positive results for the third quarter.

Jack Cronin, Mastech Digital’s Chief Financial Officer, provided insights into the company’s financial position, noting that by the end of September 30, 2024, Mastech Digital held $23.9 million in cash balances with no bank debt and borrowing availability of around $25 million under its revolving credit facility. The Days Sales Outstanding (DSO) measurement stood at a healthy 55 days. Additionally, the company’s free cash flow for the first nine months of 2024 amounted to $2.3 million, including investments of $4.3 million in operating working capital to support revenue growth.

Mastech Digital, listed on the NYSE American under the ticker symbol MHH, continues its focus on providing Digital Transformation IT Services including Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services with a “Digital First” approach. The company reaffirmed its commitment to maintaining transparency by providing non-GAAP financial metrics alongside its GAAP financial results to facilitate a better understanding of its performance in the market.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Mastech Digital’s 8K filing here.

Mastech Digital Company Profile

Mastech Digital, Inc, together with its subsidiaries, provides digital transformation IT services to large, medium-sized, and small companies in the United States. The company operates through Data and Analytics Services and IT Staffing Services segments. It offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources.