CRA International (CRAI) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 revenue rose 10.2% year-over-year to $687.4 million, marking a seventh consecutive record year.

• Net income and EPS saw significant year-over-year growth, with both GAAP and non-GAAP measures exceeding previous guidance.

• Q4 revenue increased 9.2% year-over-year to $176.4 million, the highest quarterly revenue in company history, with strong contributions from Energy, Finance, and Intellectual Property practices.

• Maintained a strong client base, working with 85 of the Fortune 100 and 98 of the top 100 law firms over the past two years.

• Continued to invest in talent and technology, with 74% of senior staff holding advanced degrees and less than 10% voluntary turnover among top revenue generators.

Financial highlights

• Non-GAAP net income, EPS, and EBITDA for Q4 grew 21.2%, 24.5%, and 28.4% year-over-year, respectively.

• Full-year GAAP net income was $46.7 million (6.8% of revenue); non-GAAP net income was $52.6 million (7.7% of revenue); non-GAAP EPS was $7.60.

• Full-year non-GAAP EBITDA increased 32.4% to $90.4 million (13.2% of revenue).

• Adjusted net cash flows from operations for 2024 were $92.5 million, converting 102% of non-GAAP EBITDA.

• Ended Q4 with $26.7 million in cash and $196 million in available credit, totaling $222.7 million in liquidity.

Outlook and guidance

• Fiscal 2025 revenue expected between $715 million and $735 million on a constant currency basis, with non-GAAP EBITDA margin guidance of 12.0%–13.0%.

• Capital expenditures for 2025 projected at $5–$6 million, down from $16.6 million in 2024.

• Targeting mid-single-digit average annual revenue growth over the next several years, primarily from organic initiatives.

• Plans to return approximately 50% of adjusted cash flows from operations to shareholders.

• Management remains cautious due to uncertain global macroeconomic, business, and political conditions.