Mastech Digital Q2 revenue falls on continued insourcing
MHH•Q2 results and drivers
Digital transformation IT services provider's Q2 revenue fell 16% year over year and rose 1% sequentially.
Adjusted EPS for Q2 dropped to $0.08 from $0.15 a year earlier.
The company entered a strategic AI deployment engagement with a major U.S. retailer.
- Data & AI bookings - Sequential revenue growth in the Data & AI segment was driven by increased bookings and go-to-market investments.
- Talent segment insourcing - Talent segment revenue declined due to continued insourcing by a top ten client and the exit from lower-margin positions.
- Bill rate improvement - A higher average bill rate in the Talent segment reflected a focus on revenue quality.
Outlook and key details
The company did not provide specific financial guidance for the current or future periods.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $41.45 mln | $40.82 mln (2 Analysts) |
| Q2 Adjusted EPS | Miss | $0.08 | $0.13 (2 Analysts) |
| Q2 Net Loss | $100,000 | ||
| Q2 Gross Profit | $12 mln | ||
| Q2 Income from Operations |
