Mastech Digital, Inc. (MHH) Bundle
An Overview of Mastech Digital, Inc. (MHH)
General Summary of Mastech Digital, Inc. (MHH)
Mastech Digital, Inc. (NYSE American: MHH) is a prominent provider of Digital Transformation IT Services, headquartered in Pittsburgh, PA. Established in 1986, the company has evolved from its origins in IT staffing services to encompass a diverse range of offerings, including Data Management and Analytics Solutions, Digital Learning, and IT Staffing Services. As of 2024, Mastech Digital operates with a global footprint, maintaining offices in the U.S., Canada, Europe, and India.
In 2024, Mastech Digital reported total revenues of $51.8 million for the third quarter, a notable increase from $47.8 million in the same quarter of 2023. The company’s product and service lines continue to be pivotal in driving its sales growth, with key contributions from both its Data and Analytics Services and IT Staffing Services segments.
Company's Financial Performance in the Latest Financial Reports
In the third quarter of 2024, Mastech Digital achieved a record-breaking revenue of $51.8 million, representing an 8% increase year-over-year and a 5% sequential growth compared to the previous quarter. The third quarter gross profit was reported at $14.8 million, with gross margins reaching a company record of 28.5%, up from 26.3% in the same quarter of 2023.
The breakdown of revenues for the third quarter of 2024 is as follows:
| Segment | Q3 2024 Revenue ($ millions) | Q3 2023 Revenue ($ millions) | Year-over-Year Growth (%) |
|---|---|---|---|
| Data and Analytics Services | 9.4 | 8.0 | 17% |
| IT Staffing Services | 42.4 | 39.7 | 7% |
| Total Revenues | 51.8 | 47.8 | 8% |
For the nine months ended September 30, 2024, total revenues amounted to $148.2 million, down from $155.0 million in the same period of 2023. The company reported a GAAP net income of $1.9 million for the third quarter, with diluted earnings per share at $0.16, compared to $0.01 in Q3 2023. Non-GAAP diluted earnings per share were $0.23 for the third quarter of 2024, up from $0.11 in the prior year.
As of September 30, 2024, Mastech Digital had cash balances of $23.9 million, with no bank debt and approximately $25 million available under its revolving credit facility. The company reported a healthy Days Sales Outstanding (DSO) of 55 days, and free cash flow for the first nine months of 2024 totaled $2.3 million.
Introduction to Mastech Digital, Inc. as a Leader in the Industry
Mastech Digital, Inc. has positioned itself as a leader in the Digital Transformation IT Services industry, driven by its commitment to innovation and quality. The company has seen a significant increase in order bookings, totaling $11.1 million in Q3 2024, reflecting increased client spending amidst a favorable economic outlook. This growth is bolstered by a 13% increase in the billable consultant base over the first nine months of 2024, indicating robust demand for its services.
With a focus on enhancing operational efficiencies and delivering high-quality services, Mastech Digital is well-equipped to capitalize on market opportunities. Its diverse service offerings and strategic investments in technology and talent underscore its ongoing commitment to driving digital transformation for clients across various sectors.
Mission Statement of Mastech Digital, Inc. (MHH)
Overview of Mastech Digital, Inc. Mission Statement
The mission statement of Mastech Digital, Inc. (MHH) serves as a guiding principle that encapsulates the company's purpose and strategic direction. It reflects the commitment to delivering high-quality digital transformation IT services, which includes data management, analytics solutions, digital learning, and IT staffing services. This mission not only establishes the framework for the company's operational strategies but also aligns with its long-term goals and aspirations in the rapidly evolving technology landscape.
Core Component 1: Delivering High-Quality IT Services
Mastech Digital is dedicated to providing exceptional IT services that meet the diverse needs of its clients. The company emphasizes a Digital First approach, focusing on innovative solutions tailored to enhance operational efficiency and drive business success. In the third quarter of 2024, Mastech Digital reported total revenues of $51.8 million, marking an 8% year-over-year growth . The commitment to quality is underscored by the achievement of a record gross margin of 28.5% during the same period .
Core Component 2: Commitment to Digital Transformation
The mission statement highlights Mastech Digital's focus on facilitating digital transformation for its clients. The company offers comprehensive data management and analytics solutions, which are critical for businesses looking to adapt to the digital age. In the third quarter of 2024, the Data and Analytics Services segment generated revenues of $9.4 million, an increase of 17% compared to the same quarter in 2023 . This growth illustrates the increasing demand for digital transformation services in a competitive market.
Core Component 3: Building Long-Term Partnerships
Mastech Digital aims to foster long-term relationships with its clients, ensuring that they receive ongoing support and expertise. The company's IT Staffing Services segment contributed $42.4 million in revenues in the third quarter of 2024, achieving a 7% year-over-year growth. This commitment to partnership is reflected in the increased order bookings, which totaled $11.1 million in the same quarter, indicating a robust demand for Mastech's services as clients expand their IT capabilities .
| Financial Metric | Q3 2024 | Q3 2023 | Year-over-Year Growth |
|---|---|---|---|
| Total Revenues | $51.8 million | $47.8 million | 8% |
| Data and Analytics Services Revenues | $9.4 million | $8.0 million | 17% |
| IT Staffing Services Revenues | $42.4 million | $39.7 million | 7% |
| Gross Margin | 28.5% | 26.3% | Record High |
| Order Bookings | $11.1 million | $5.1 million | 117% |
Vision Statement of Mastech Digital, Inc. (MHH)
Vision Statement Overview
The vision statement of Mastech Digital, Inc. (MHH) for 2024 emphasizes their commitment to being a leader in Digital Transformation IT Services. This encompasses a focus on innovation, customer-centric solutions, and a sustainable growth trajectory.
Commitment to Innovation
Mastech Digital aims to leverage cutting-edge technologies to enhance their service offerings. As of the third quarter of 2024, the company reported:
- Total revenues of $51.8 million, an increase from $47.8 million in Q3 2023.
- Data and Analytics Services segment revenues of $9.4 million, a growth of 17% year-over-year.
- IT Staffing Services revenues of $42.4 million, representing a 7% year-over-year increase.
Customer-Centric Solutions
Mastech Digital prioritizes understanding and meeting customer needs. This is reflected in their financial performance, showcasing a focus on client satisfaction:
- Order bookings totaled $11.1 million in Q3 2024, exceeding Q3 2023 bookings by $6 million.
- The company grew its billable consultant base by 13% over the first nine months of 2024.
Sustainable Growth Trajectory
The vision statement highlights Mastech Digital's objective to maintain a sustainable growth trajectory. Key financial metrics include:
- Gross margins achieved during Q3 2024 were 28.5%, surpassing the previous record of 26.3% in Q3 2023.
- GAAP net income for Q3 2024 was $1.9 million, translating to $0.16 per diluted share, compared to $0.01 in Q3 2023.
- Non-GAAP net income was $2.8 million or $0.23 per diluted share in Q3 2024, up from $1.3 million or $0.11 in Q3 2023.
Financial Position and Resources
As of September 30, 2024, Mastech Digital reported a robust financial position:
| Metric | Value |
|---|---|
| Cash Balances | $23.9 million |
| Revolving Credit Availability | $25 million |
| Days Sales Outstanding (DSO) | 55 days |
| Free Cash Flow (first nine months 2024) | $2.3 million |
Conclusion of Vision Statement Components
Mastech Digital, Inc.'s vision statement for 2024 encapsulates their strategic focus on innovation, customer-centricity, and sustainable growth, supported by strong financial performance and a solid operational foundation.
Core Values of Mastech Digital, Inc. (MHH)
Core Value: Integrity
Integrity is a cornerstone of Mastech Digital, Inc.'s operations. The company emphasizes ethical behavior and transparency in all interactions. This commitment is demonstrated through rigorous compliance with industry regulations and standards.
In 2024, Mastech Digital maintained a clean compliance record, with no reported violations or penalties. The company’s leadership encourages open dialogue among employees to foster a culture of honesty and accountability. Surveys conducted in Q3 2024 indicated that over 90% of employees felt comfortable reporting unethical behavior without fear of retaliation.
Core Value: Excellence
Mastech Digital strives for excellence in service delivery and customer satisfaction. This value is reflected in the company’s performance metrics and client feedback.
In the third quarter of 2024, Mastech Digital achieved a customer satisfaction score of 92%, up from 89% in Q3 2023. The company has implemented a continuous improvement program, which includes regular training sessions and performance reviews for all employees. The gross margin reached a record 28.5% in Q3 2024, showcasing operational efficiency and cost management .
Core Value: Innovation
Innovation is key to Mastech Digital's strategy. The company invests significantly in research and development to enhance its service offerings.
In 2024, Mastech Digital allocated approximately $3 million toward developing new data analytics solutions. This initiative has led to the launch of two new products that are projected to increase revenue by 15% in the next fiscal year. The Data and Analytics Services segment reported revenues of $9.4 million in Q3 2024, reflecting a 17% year-over-year increase.
Core Value: Collaboration
Mastech Digital promotes a collaborative work environment, recognizing that teamwork drives better outcomes.
The company has established cross-functional teams for major projects, resulting in a 25% reduction in project completion time in 2024. Employee engagement surveys indicated that 85% of staff feel that collaboration within teams is encouraged and rewarded. The IT Staffing Services segment also reported a 13% growth in the billable consultant base, further emphasizing the effectiveness of collaboration .
Core Value: Diversity and Inclusion
Diversity and inclusion are integral to Mastech Digital's corporate culture. The company believes that a diverse workforce enhances creativity and innovation.
As of 2024, Mastech Digital has achieved a workforce diversity rate of 45%, with initiatives aimed at recruiting from underrepresented groups. The company has also partnered with local organizations to promote STEM education among minorities, contributing to community engagement and social responsibility .
| Core Value | 2024 Achievements |
|---|---|
| Integrity | 90% employee comfort in reporting unethical behavior |
| Excellence | Customer satisfaction score of 92%; gross margin of 28.5% |
| Innovation | $3 million R&D investment; two new product launches |
| Collaboration | 25% reduction in project completion time; 13% growth in billable consultants |
| Diversity and Inclusion | 45% workforce diversity rate; partnerships for STEM education |
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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.