Q3 2024 Hackett Group Inc Earnings Call Transcript
Key Points
- The Hackett Group Inc (HCKT) reported total revenues of $79.8 million and adjusted earnings per share of $0.43, both exceeding quarterly guidance.
- Strong performance in Oracle and SAP segments, with Oracle Solutions revenue increasing by 7% and SAP Solutions revenue by 17% year-over-year.
- The company's GenAI engagements showed strong sequential revenue growth, driven by the AI XPLR platform and the acquisition of LeewayHertz.
- The acquisition of LeewayHertz is expected to enhance GenAI implementation capabilities and create new value creation opportunities through a joint venture.
- The company plans to use strong cash flow to accelerate its stock buyback program, with a $20 million addition to the existing authorization.
- The Global S&BT segment's revenue was flat year-over-year due to weakness in the eProcurement group.
- GAAP net income for the third quarter decreased to $8.6 million from $9.4 million in the prior year.
- The company's cash balance decreased to $10 million at the end of the third quarter from $19.1 million in the previous quarter.
- The company experienced an increase in adjusted SG&A expenses, primarily due to foreign exchange fluctuations and increased commissions.
- The company faces competition for experienced executives, particularly those with high technology agility.
Welcome to The Hackett Group third-quarter earnings conference call. (Operator Instructions) Please be advised the conference is being recorded.
Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO; and Mr. Rob Ramirez, Chief Financial Officer. Mr. Ramirez, you may begin.
Good afternoon, everyone. And thank you for joining us to discuss the Hackett Group's third-quarter results. Speaking on the call today, I'm here to answer your questions for Ted Fernandez, Chairman and Chief Executive Officer of the Hackett Group; and myself, Rob Ramirez, Chief Financial Officer.
A press announcement was released over the wires at 4:15 PM Eastern Time. For a copy of the release, please visit our website at www.thehackettgroup.com. We'll also place any additional financial or statistical data discussed on this call that is not contained in the release on the investor relations page
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