Mastech Digital, Inc. (MHH) Bundle
A Brief History of Mastech Digital, Inc.
Mastech Digital, Inc. (NYSE American: MHH) has established itself as a prominent provider of Digital Transformation IT Services, focusing on Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services. The company is headquartered in Pittsburgh, PA, and operates across the U.S., Canada, Europe, and India.
Financial Performance in 2024
As of September 30, 2024, Mastech Digital reported a total revenue of $51.8 million for the third quarter, reflecting an increase of 8% year-over-year compared to $47.8 million in the third quarter of 2023. The revenue for the first nine months of 2024 was $148.2 million, compared to $155.0 million in the same period of 2023.
| Period | Total Revenue | Net Income | GAAP Diluted EPS | Non-GAAP Diluted EPS |
|---|---|---|---|---|
| Q3 2024 | $51.8 million | $1.9 million | $0.16 | $0.23 |
| Q3 2023 | $47.8 million | $125,000 | $0.01 | $0.11 |
| 9M 2024 | $148.2 million | $3.1 million | $0.27 | $0.48 |
| 9M 2023 | $155.0 million | ($1.8 million) | ($0.15) | $0.33 |
Operational Highlights
The company achieved a gross margin of 28.5% in Q3 2024, setting a record for the company, compared to 26.3% in Q3 2023. The Data and Analytics Services segment generated revenues of $9.4 million, marking a 17% increase year-over-year. The IT Staffing Services segment contributed $42.4 million in revenue, which reflects a 7% increase year-over-year.
Balance Sheet Overview
As of September 30, 2024, Mastech Digital reported total assets of $111.5 million, up from $105.2 million at the end of 2023. The company's cash and cash equivalents amounted to $23.9 million, with no bank debt and approximately $25 million available under its revolving credit facility.
| Assets | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $111.5 million | $105.2 million |
| Cash and Cash Equivalents | $23.9 million | $21.1 million |
Market Position and Future Outlook
With a solid performance in 2024, Mastech Digital continues to expand its market position, driven by increased demand in its Data and Analytics Services and IT Staffing Services. The company reported an order booking of $11.1 million in Q3 2024, exceeding the previous year’s bookings by $6 million. The overall outlook remains positive, with expectations for continued growth and operational efficiency improvements.
Key Metrics
| Metric | As of September 30, 2024 |
|---|---|
| Days Sales Outstanding (DSO) | 55 days |
| Free Cash Flow (9M 2024) | $2.3 million |
A Who Owns Mastech Digital, Inc. (MHH)
Ownership Structure
Mastech Digital, Inc. (MHH) is publicly traded on the NYSE American. As of 2024, the ownership of the company is comprised of institutional investors, retail investors, and company insiders. The breakdown of ownership is as follows:
| Ownership Type | Percentage |
|---|---|
| Institutional Investors | 62.4% |
| Retail Investors | 25.6% |
| Insider Ownership | 12.0% |
Major Shareholders
The following table lists the major shareholders of Mastech Digital, Inc. as of 2024, including their respective ownership stakes:
| Shareholder | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 1,150,000 | 9.6% |
| BlackRock, Inc. | 900,000 | 7.5% |
| Dimensional Fund Advisors LP | 750,000 | 6.3% |
| Insider - Vivek Gupta (CEO) | 400,000 | 3.3% |
| Insider - Jack Cronin (CFO) | 300,000 | 2.5% |
Recent Stock Performance
As of November 2024, Mastech Digital's stock (MHH) has shown significant growth. The stock price has increased by approximately 18% year-to-date. The closing price on November 1, 2024, was $15.25 per share.
Financial Highlights
For the third quarter of 2024, Mastech Digital reported:
- Total Revenues: $51.8 million
- Gross Profit: $14.8 million
- Net Income: $1.9 million
- GAAP Diluted Earnings per Share: $0.16
- Non-GAAP Diluted Earnings per Share: $0.23
Liquidity Position
As of September 30, 2024, Mastech Digital had:
- Cash and Cash Equivalents: $23.9 million
- No Bank Debt
- Borrowing Availability: Approximately $25 million under a revolving credit facility
Market Capitalization
The market capitalization of Mastech Digital, Inc. as of November 2024 is approximately $183 million, based on the current share price and total shares outstanding of around 12 million.
Mastech Digital, Inc. (MHH) Mission Statement
Mastech Digital, Inc. (MHH) aims to provide innovative Digital Transformation IT services, specializing in Data Management, Analytics Solutions, Digital Learning, and IT Staffing Services. The company's mission emphasizes a Digital First approach, ensuring that clients are equipped with cutting-edge technology and services tailored to meet their evolving needs.
Core Values
- Integrity: Upholding the highest standards of honesty and ethical conduct.
- Innovation: Continuously seeking innovative solutions to enhance client services.
- Customer Focus: Prioritizing customer satisfaction through exceptional service delivery.
- Collaboration: Fostering teamwork and partnerships to achieve shared goals.
Financial Performance Overview
As of the third quarter of 2024, Mastech Digital reported financial results that reflect its commitment to growth and operational efficiency. The following table outlines the key financial metrics for the company:
| Financial Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Total Revenues | $51.8 million | $47.8 million | $148.2 million | $155.0 million |
| Gross Profit | $14.8 million | $12.6 million | $40.9 million | $39.7 million |
| Net Income | $1.9 million | $0.125 million | $3.1 million | $(1.8) million |
| GAAP Diluted EPS | $0.16 | $0.01 | $0.27 | $(0.15) |
| Non-GAAP Diluted EPS | $0.23 | $0.11 | $0.48 | $0.33 |
| Gross Margin % | 28.5% | 26.3% | 27.6% | 25.6% |
Market Position and Outlook
Mastech Digital has positioned itself as a leading provider in the Digital Transformation sector, with a focus on leveraging technology to enhance operational efficiencies for clients. The company reported a 7% year-over-year revenue growth and a 5% sequential growth in revenue from Q2 to Q3 2024. This growth is attributed to a robust demand for its services across both the Data and Analytics Services and IT Staffing Services segments.
As of September 30, 2024, Mastech Digital maintained a strong financial position with:
- Cash balances of $23.9 million
- No bank debt
- Borrowing availability of approximately $25 million under a revolving credit facility
- Days Sales Outstanding (DSO) of 55 days
The company’s commitment to investing in operational working capital levels reflects its strategic focus on supporting revenue growth, with $4.3 million funded in the first nine months of 2024 alone .
How Mastech Digital, Inc. (MHH) Works
Company Overview
Mastech Digital, Inc. (NYSE American: MHH) is a provider of Digital Transformation IT Services, specializing in Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services. The company operates from its headquarters in Pittsburgh, PA, with additional offices across the U.S., Canada, Europe, and India.
Financial Performance
As of the third quarter of 2024, Mastech Digital reported consolidated revenues totaling $51.8 million, a year-over-year increase of 8% compared to $47.8 million in the third quarter of 2023. This marked the third consecutive quarter of revenue growth.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $51.8 million | $47.8 million | +8% |
| Gross Profit | $14.8 million | $12.6 million | +17.5% |
| Gross Margin | 28.5% | 26.3% | +2.2% |
| GAAP Net Income | $1.9 million | $125,000 | +1424% |
| GAAP Diluted EPS | $0.16 | $0.01 | +1600% |
| Non-GAAP Net Income | $2.8 million | $1.3 million | +115% |
| Non-GAAP Diluted EPS | $0.23 | $0.11 | +109% |
Segment Performance
The company's revenue is derived from two main segments: Data and Analytics Services and IT Staffing Services. In the third quarter of 2024, the Data and Analytics Services segment reported revenues of $9.4 million, an increase of 17% from the previous year. The IT Staffing Services segment delivered revenues of $42.4 million, reflecting a 7% year-over-year growth.
| Segment | Q3 2024 Revenues | Q3 2023 Revenues | Growth |
|---|---|---|---|
| Data and Analytics Services | $9.4 million | $8.0 million | +17% |
| IT Staffing Services | $42.4 million | $39.7 million | +7% |
Cash and Debt Position
As of September 30, 2024, Mastech Digital reported cash balances of $23.9 million with no bank debt. The company has a borrowing availability of approximately $25 million under its revolving credit facility. The Days Sales Outstanding (DSO) was reported at 55 days.
Operating Expenses
The total selling, general, and administrative expenses for the third quarter of 2024 amounted to $12.3 million, a slight decrease from $12.6 million in the third quarter of 2023.
Balance Sheet Highlights
On the balance sheet as of September 30, 2024, Mastech Digital reported total assets of $111.5 million, compared to $105.2 million at the end of 2023. Total liabilities stood at $25.0 million, with shareholders' equity at $86.5 million.
| Balance Sheet Item | Q3 2024 | Year-End 2023 |
|---|---|---|
| Total Assets | $111.5 million | $105.2 million |
| Total Liabilities | $25.0 million | $23.8 million |
| Shareholders' Equity | $86.5 million | $81.4 million |
Market Position and Growth Outlook
Mastech Digital has seen a robust increase in operational demand, particularly in its IT Staffing Services, where the billable consultant base grew by 13% over the first nine months of 2024. Order bookings in the Data and Analytics Services segment reached $11.1 million in Q3 2024, significantly exceeding prior year bookings by $6 million.
How Mastech Digital, Inc. (MHH) Makes Money
Business Segments Overview
Mastech Digital operates primarily through two segments:
- Data and Analytics Services
- IT Staffing Services
Revenue Generation
In the third quarter of 2024, Mastech Digital reported total revenues of $51.8 million, reflecting an increase from $47.8 million in the same quarter of 2023. This represents an 8% year-over-year growth and a 5% sequential growth compared to the second quarter of 2024.
Data and Analytics Services
The Data and Analytics Services segment generated revenues of $9.4 million in the third quarter of 2024, which was a 17% increase from $8.0 million in the third quarter of 2023 and a 6% increase from the second quarter of 2024.
IT Staffing Services
The IT Staffing Services segment accounted for $42.4 million in revenues during the same period, achieving a 7% year-over-year growth and a 4% sequential growth compared to the second quarter of 2024.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Year-over-Year Growth | Sequential Growth |
|---|---|---|---|---|
| Data and Analytics Services | $9.4 million | $8.0 million | 17% | 6% |
| IT Staffing Services | $42.4 million | $39.7 million | 7% | 4% |
| Total Revenue | $51.8 million | $47.8 million | 8% | 5% |
Gross Margin Performance
Mastech Digital achieved a gross margin of 28.5% in the third quarter of 2024, an improvement from 26.3% in the third quarter of 2023. The gross profit for the third quarter of 2024 was $14.8 million, compared to $12.6 million in the same period of 2023.
Net Income and Earnings Per Share
For the third quarter of 2024, Mastech Digital reported a net income of $1.9 million, or $0.16 per diluted share, compared to $125,000 or $0.01 per diluted share in the third quarter of 2023. The non-GAAP diluted earnings per share for Q3 2024 was $0.23, up from $0.11 in Q3 2023.
Operational Efficiency and Bookings
Order bookings in the Data and Analytics Services segment totaled $11.1 million in the third quarter of 2024, marking an increase of $6 million compared to the third quarter of 2023. The company also reported a 13% increase in its billable consultant base over the first nine months of 2024.
Cash Position and Financial Stability
As of September 30, 2024, Mastech Digital held cash balances of $23.9 million, with no bank debt and approximately $25 million available under its revolving credit facility. The company reported a Days Sales Outstanding (DSO) of 55 days.
Financial Summary for Q3 2024
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Revenue | $51.8 million | $47.8 million |
| Gross Profit | $14.8 million | $12.6 million |
| Net Income | $1.9 million | $125,000 |
| GAAP Diluted EPS | $0.16 | $0.01 |
| Non-GAAP Diluted EPS | $0.23 | $0.11 |
Conclusion on Financial Health
In summary, Mastech Digital's performance in the third quarter of 2024 reflects a strong operational execution across its business segments, robust revenue growth, and improved profitability metrics.
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Resources:
- Mastech Digital, Inc. (MHH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Mastech Digital, Inc. (MHH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Mastech Digital, Inc. (MHH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.