Mastech Digital, Inc

Greetings, and welcome to the Mass Tech Digital third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jenna Lacey, Manager of Legal Affairs for Mass Tech Digital. Thank you. You may begin.

Thank you, Operator, and welcome to Mass Tech Digital's third quarter 2024 conference call. If you have not yet received a copy of our earnings announcement, it can be obtained from our website at www.masstechdigital.com. With me on the call today are Vivek Gupta, Mass Tech Digital's Chief Executive Officer, and Jack Cronin, our Chief Financial Officer. I would like to remind everyone that statements made during this call that are not historical facts are forward-looking statements. These forward-looking statements include our financial growth and liquidity projections, as well as statements about our plans, strategies, intentions, and beliefs concerning the business, cash flows, costs, and the markets in which we operate. Without limiting the foregoing, the words believes, anticipates, plans, expects, and similar expressions are intended to identify certain forward-looking statements. These statements are based on information currently available to us, and we assume no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual events to differ materially from these forward-looking statements, including those listed in the company's 2023 annual report on Form 10-K filed with the Securities and Exchange Commission and available on its website at www.sec.gov. Additionally, management has elected to provide certain non-GAAP financial measures to supplement our financial results presented on a GAAP basis. Specifically, we will provide non-GAAP net income and non-GAAP diluted earnings per share data, which we believe will provide greater transparency with respect to the key metrics used by management in operating the business. Reconciliations of these non-GAAP financial measures to their comparable GAAP measures are included in our earnings announcement, which can be obtained from our website at www.MasTechDigital.com. As a reminder, we will not be providing guidance during this call, nor will we provide guidance in any subsequent one-on-one meetings or calls. I will now turn the call over to Jack for a review of our third quarter 2024 results.

Thanks, Jen, and good morning, everyone. Our third quarter 2024 financial results reflected the positive momentum that we experienced during the first half of 2024. Factors that contributed to our strong Q3 2024 results included higher demand for our services in both of our business segments, record consolidated gross margins, effective SG&A cost containment efforts, a strong debt-free balance sheet, and an improved economic outlook around inflation and job growth. With that backdrop, let me address the specifics of our third quarter 2024 financial results. Revenues for Q3 2024 totaled $51.8 million compared to $47.8 million in the 2023 third quarter. This revenue performance represented year-over-year growth of 8 percent, and on a sequential quarterly basis, an increase of 5 percent over the second quarter of 2024. Our data and analytic services segment reported revenues of $9.4 million in Q3 2024, compared to $8 million in the 2023 third quarter. for a 17 percent year-over-year increase. On a sequential quarterly basis, revenues were 6 percent higher than the $8.9 million that we reported in the second quarter of 2024. Third quarter of 2024 revenues in our IT staffing services segment totaled $42.4 million, achieving year-over-year growth of 7 percent and growth of 4 percent when compared to the previous quarter. Consolidated gross profit dollars totaled $14.8 million in Q3 2024, which exceeded the corresponding quarter of 2023 by $2.2 million, an 18 percent improvement. Gross profit as a percent of revenue in Q3 2024 with a company record 28.5 percent, exceeding our previous record that was established last quarter. In our data and analytic services segment, gross margin increased to 50.7 percent, which was significantly higher than the corresponding quarter of 23. In our IT staffing services segment, Q3 2024 margins equaled a company record of 23.6 percent, and that record was achieved in last quarter as well. Gap net income for the third quarter of 2024 was $1.9 million, or 16 cents per diluted share, compared to $125,000, or one cent per diluted share, in Q3 2023. Non-GAAP net income for the third quarter of 2024 was $2.8 million, or 23 cents per diluted share, compared to $1.3 million, or 11 cents per diluted share, in the third quarter of 2023. SG&A expense items not included in non-GAAP financial measures net of tax benefits for both periods presented 2023 as well as 2024, with stock-based compensation expense and the amortization of acquired intangible assets, and are detailed in our third quarter 2024 earnings release, which is available on our website. Addressing our financial position, on September 30th, 2024, we had $23.9 million of cash balances on hand, no outstanding bank debt, and borrowing availability of approximately $25 million under our revolving credit facility. Our day sales outstanding measurement was 55 days at quarter end, which is soundly favorable to our targeted range of 60 to 65 days. I'll now turn the call over to Vivek for his comments.