Mastech Digital Reports 16% Increase in Revenues in the Second Quarter 2022
The Data & Analytics Segment Achieved 26% YOY Revenue Growth during the Quarter
Mastech Digital, Inc, a leading provider of Digital Transformation IT Services, announced its financial results for the second quarter ending June 30, 2022.
Second Quarter 2022 Financial Highlights:
- The Company delivered consolidated revenues of $62.1 million in the second quarter of 2022, which represented organic growth of 16% over revenues of $53.7 million in the 2021 second quarter;
- The Company’s Data and Analytics Services segment reported revenues of $11.3 million, an organic increase of 26% over last year’s $9.0 million;
- The IT Staffing segment achieved revenues of $50.9 million and record gross margins of 23.3% during the second quarter 2022. Top-line organic growth totaled 14% compared to the second quarter of 2021;
- GAAP diluted earnings per share was $0.20 in the second quarter of 2022 compared to $0.19 in the second quarter of 2021, after adjusting for a $0.12 benefit due to the 2021 favorable revaluation of a contingent consideration liability; and
- Non-GAAP diluted earnings per share was $0.30 in the second quarter of 2022 compared to $0.29 in the 2021 second quarter.
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Revenues for the second quarter of 2022 totaled $62.1 million compared to $53.7 million during the corresponding quarter of 2021. Gross profits in the second quarter of 2022 increased by 17% to $16.7 million from $14.3 million in the same quarter of 2021. GAAP net income for the first quarter of 2022 totaled $2.4 million or $0.20 per diluted share, compared to $3.7 million or $0.31 per diluted share during the same period of 2021. As noted above, the Company’s second quarter of 2021 included a revaluation of a contingent consideration liability which favorably impacted net income by $1.4 million and earnings per share by $0.12. Non-GAAP net income for the second quarter of 2022 was $3.6 million or $0.30 per diluted share, compared to $3.4 million or $0.29 per diluted share in the second quarter of 2021.
Activity levels at the Company’s Data and Analytics Services segment were solid, as revenues expanded by 26% over the second quarter of 2021 and 11% sequentially over the first quarter 2022. Data and Analytics gross margins took a dip during the quarter as the business increased its billable staff by 22% in anticipation of higher revenues during the second half of 2022. Many of these resources were in training programs during Q-2 2022, which impacted utilization. Demand for the Company’s IT Staffing Services segment remained elevated during the second quarter, as the segment achieved record revenues and gross margins.
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Commenting on second quarter financial results, Vivek Gupta, the Company’s President and Chief Executive Officer stated,”Both of our business segments delivered solid double digit year-over-year revenue growth, as well as strong sequential revenue growth during the quarter. While net income was impacted by investments made in the Data and Analytics segment to support future growth and strengthen our cloud services capabilities, I am very pleased with our overall strategic progress during the quarter.”
“I’m happy to say that we delivered record revenues in the Data and Analytics segment during the second quarter and we are excited about the future opportunities for this business,” said Ganeshan Venkateshwaran, the Chief Executive Officer of the Company’s Data and Analytics Services segment.
