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Mastech Digital Inc (MHH+0.53%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing details the company's operations in two segments: Data and Analytics Services and IT Staffing Services. Revenues for the year totaled $198.9 million, a slight decrease from $201.1 million in 2023. The Data and Analytics Services segment saw a revenue increase to $36.6 million, while IT Staffing Services experienced a decline to $162.3 million.
Gross profit for 2024 was $55.6 million, with a gross margin of 27.9%, compared to 25.4% in 2023. The Data and Analytics Services segment achieved a gross margin of 49.1%, and IT Staffing Services had a gross margin of 23.2%.
Selling, general, and administrative expenses amounted to $51.8 million, representing 26.0% of total revenues. This is a decrease from $60.3 million in 2023, which included a goodwill impairment charge and an employment-related claim.
Net income for the year was reported at $3.4 million, compared to a net loss of $7.1 million in 2023. The improvement was attributed to increased gross profit and reduced SG&A expenses.
Cash provided by operating activities was $7.2 million, with cash and cash equivalents totaling $27.7 million at year-end. The company had no outstanding borrowings under its credit facility, with $22.6 million of borrowing capacity available.
The filing also notes a strategic initiative to transition finance and accounting functions to India in 2025, with expected annual cost savings of $1.2 million post-transition.
Mastech Digital's report highlights its focus on digital transformation services, with significant investments in data and analytics capabilities, and plans to expand its service offerings to include engineering staffing services.
The company faces risks related to economic conditions, client concentration, and potential changes in immigration laws affecting its workforce, as detailed in the risk factors section of the filing.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Mastech Digital Inc annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.