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Mastech Digital Reports Impressive Financial Results for Q4 2024

Mastech Digital, Inc. (NYSE American: MHH) has released its financial performance for the fourth quarter and the entire year of 2024, showcasing strong growth in a competitive landscape. The company, based in Pittsburgh, is renowned for its digital transformation IT services, and its latest report indicates a remarkable 10.2% increase in consolidated revenues, climbing to $50.7 million compared to $46.1 million from the same period in 2023.

Highlights of Q4 2024

In the fourth quarter of 2024, Mastech Digital's results reflected several significant milestones:

• - The Data and Analytics Services segment achieved an impressive 26.2% revenue growth, reaching $10.3 million.
• - The IT Staffing Services segment also performed well, reporting revenues of $40.5 million, an increase of 6.8% from the previous year.
• - The company's gross margins hit a company record of 29.0%, up from 28.5% in Q3 2024.

This upward trend in revenues showcases Mastech’s ability to navigate market challenges, with CEO Nirav Patel expressing satisfaction regarding the strong performance of both operating segments. Patel noted, “While we maintained our top line, we were able to significantly enhance our gross margins and achieve noteworthy improvements in net income and earnings per share.” Although bookings in Q4 were lower than anticipated, highlighting a cautious market sentiment, the company remains poised for sustainable growth.

Full-Year Overview

For the entire year of 2024, Mastech Digital reported total revenues of $198.9 million, a slight decrease from $201.1 million in 2023. However, the company demonstrated resilience; gross profits rose to $55.6 million, up from $51.0 million, with their gross profit margin increasing from 25.4% to 27.9%. Net income for the year stood at $3.4 million, marking a significant turnaround from a net loss of $7.1 million in 2023.

The CFO, Jack Cronin, highlighted the company’s robust financial position, stating that as of December 31, 2024, Mastech Digital boasted $27.7 million in cash, no bank debt, and approximately $22.6 million available through its revolving credit facility.

Share Repurchase Program Extension

In a strategic move to enhance shareholder value, Mastech Digital's Board of Directors has authorized an extension of its share repurchase program by another year, allowing the repurchase of up to 500,000 shares through February 8, 2026. At the end of 2024, around 423,000 shares remained available for repurchase.

Conclusion

Mastech Digital continues to establish its footprint as a leading provider of Digital Transformation IT Services. With strong revenue growth both in quarterly and yearly comparisons, a solid financial foundation, and strategic initiatives in place, Mastech is well-positioned to meet the evolving demands of the IT services market. The company remains committed to enhancing its offerings and delivering robust results for its stakeholders amid ongoing economic challenges.