Mastech Digital, Inc. reported significant financial improvements for the three and nine months ended September 30, 2024, compared to the same periods in 2023. The company achieved a net income of $1.875 million for Q3 2024, a substantial increase from $125,000 in Q3 2023. For the nine months, net income rose to $3.105 million, reversing a net loss of $1.787 million in the prior year. Total comprehensive income also saw a notable increase, reaching $1.831 million for Q3 2024, compared to $37,000 in Q3 2023.

Total revenues for Q3 2024 were $51.839 million, an 8% increase from $47.779 million in Q3 2023. However, for the nine months, revenues decreased to $148.196 million from $155.046 million in the same period last year. The Data and Analytics Services segment reported a revenue increase to $9.398 million for Q3 2024, up from $8.038 million in Q3 2023, while the IT Staffing Services segment generated $42.441 million, compared to $39.741 million in the prior year.

The company’s gross profit margin improved, reaching 28.5% for Q3 2024, up from 26.3% in Q3 2023. Gross margins for the Data and Analytics Services segment increased to 50.7%, while the IT Staffing Services segment saw a rise to 23.6%. Total SG&A expenses decreased to $12.3 million in Q3 2024 from $12.6 million in Q3 2023, reflecting a reduction in operational costs.

Mastech Digital's cash and cash equivalents increased to $23.885 million as of September 30, 2024, compared to $21.147 million at the end of 2023. The company reported a net cash flow from operating activities of $3.154 million for the nine months ended September 30, 2024, down from $10.545 million in the same period of 2023. The decrease in cash flow was attributed to changes in operating working capital.

Strategically, the company has not entered into new leases during the reporting period and has maintained a strong balance sheet with no outstanding borrowings under its credit agreement. The company also initiated a consulting services agreement with Primentor, Inc. in January 2024, which is expected to enhance its service offerings.

Overall, Mastech Digital has demonstrated resilience and growth in its financial performance, particularly in the Data and Analytics Services segment, while managing costs effectively.

About Mastech Digital, Inc.

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