Harte Hanks (HHS) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was $47.1M, down 4.8% year-over-year; full-year revenue was $185.2M, down 3.3%.

• Q4 net loss was $2.4M ($0.33/share) vs. $2.0M loss ($0.27/share) in Q4 2023; full-year net loss was $30.3M, mainly due to $37.5M pension plan termination charges.

• Ended 2024 with $9.9M cash, zero debt, and a fully terminated Pension Plan I.

• Project Elevate continued to optimize cost structure and streamline operations.

Financial highlights

• Q4 operating loss improved to $1.6M from $2.3M in Q4 2023.

• Q4 EBITDA was negative $0.3M vs. negative $1.1M in Q4 2023; Adjusted EBITDA was $3.5M vs. $5.2M.

• Full-year operating income was $2.1M, down 37.7% from $3.4M in 2023.

• Adjusted operating margin for 2024 was 5.2%, down from 6.4% in 2023.

Outlook and guidance

• Positioned for future growth in 2025 and beyond, with strong liquidity and no debt.

• Project Elevate initiatives to continue addressing business-critical needs and innovation.