The Hackett Group Inc (HCKT, Financial) released its 8-K filing on August 6, 2024, announcing its financial results for the second quarter ended June 28, 2024. The Hackett Group Inc is an IP-based executive advisory, strategic consulting, and digital transformation firm. It provides Generative Artificial Intelligence ("Gen AI") strategy, operations, finance, human capital management, strategic sourcing, procurement, and information technology. It operates in three segments: Oracle Solutions, SAP Solutions, and Global S&BT, with the majority of its revenue generated from the Global S&BT segment in the United States.
Performance Overview
The Hackett Group Inc reported total revenue of $77.7 million for Q2 2024, surpassing the analyst estimate of $75.71 million. Revenue before reimbursements was $75.9 million, also exceeding the high end of the company's guidance. This compares to total revenue of $77.1 million and revenue before reimbursements of $75.6 million in the same quarter of the previous year.
Financial Achievements
GAAP diluted earnings per share (EPS) for the quarter was $0.31, slightly below the $0.32 reported in Q2 2023. However, adjusted diluted EPS, a non-GAAP measure, remained steady at $0.39, aligning with the high end of the company's guidance and matching the adjusted EPS from the same period last year.
“We continued to report solid operating results that met or exceeded our quarterly guidance. This was achieved while aggressively pivoting our capabilities and go-to-market efforts to address the emerging demand for Gen AI consulting, leveraging our new ideation and design platform, AI XPLR,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $77.7 million | $77.1 million |
| Revenue Before Reimbursements | $75.9 million | $75.6 million |
| GAAP Diluted EPS | $0.31 | $0.32 |
| Adjusted Diluted EPS | $0.39 | $0.39 |
| Cash Flow from Operations | $13.7 million | $7.7 million |
| Cash Balances | $19.1 million | - |
| Outstanding Credit Facility | $27.0 million | - |
Income Statement Highlights
The Hackett Group Inc reported an operating income of $12.5 million, slightly down from $12.8 million in Q2 2023. Net income for the quarter was $8.7 million, consistent with the same period last year. The company also saw a significant increase in cash flow from operations, which rose to $13.7 million from $7.7 million in Q2 2023.
Balance Sheet and Cash Flow
As of June 28, 2024, The Hackett Group Inc had cash balances of $19.1 million and $27.0 million outstanding on its credit facility. The company’s remaining share repurchase program authorization stood at $12.9 million. The Board of Directors declared a third-quarter dividend of $0.11 per share, payable on October 4, 2024.
Segment Performance
The Global S&BT segment, which includes strategic business consulting practices, reported total revenue of $42.3 million, down from $43.6 million in Q2 2023. Oracle Solutions saw a revenue increase to $23.0 million from $20.8 million, while SAP Solutions reported revenue of $12.3 million, slightly down from $12.7 million in the same period last year.
Business Outlook
For the third quarter of 2024, The Hackett Group Inc estimates total revenue before reimbursements to be in the range of $74.5 million to $76.0 million. Adjusted diluted EPS is expected to be between $0.39 and $0.41, assuming a GAAP effective tax rate of 27.7%.
For more detailed insights and to access the full earnings report, visit the 8-K filing.
Explore the complete 8-K earnings release (here) from The Hackett Group Inc for further details.
