CRA International (CRAI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 5.9% year-over-year to $171.4 million, with first-half revenue reaching a record $343.2 million.

• Non-GAAP net income, EPS, and EBITDA rose 26.4%, 28.9%, and 18.5% year-over-year, while GAAP net income fell to $6.5 million.

• Utilization rate was 74% and consultant headcount slightly decreased.

• Diluted EPS for Q2 2024 was $0.94, down from $1.34 in Q2 2023; non-GAAP EPS was $1.83, up 28.9%.

• Broad-based growth across five practices, with antitrust and competition economics leading performance.

Financial highlights

• Q2 2024 operating income was $11.3 million, down from $15.9 million in Q2 2023; gross margin was 26.9%, down from 30.0%.

• Non-GAAP EBITDA margin for the first half was 13%.

• Non-GAAP SG&A expenses were 16.4% of revenue, up from 16.1% a year ago; GAAP SG&A was 18.7% in Q2 2024.

• Effective tax rate for Q2 was 32.0%, up from 30.1% in Q2 2023.

• DSO improved to 110 days from 115 days year-over-year.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $670–$685 million (prior: $645–$675 million).

• Non-GAAP EBITDA margin guidance increased to 12.2%–13.0% (prior: 10.8%–11.5%).

• Guidance reflects portfolio optimization actions and associated savings.

• Management expects liquidity to be sufficient for at least the next 12 months.

• Plans to continue regular dividends and share repurchases, subject to Board discretion.