CRA International Inc (CRAI, Financial), a global leader in economic, financial, and management consulting services, announced its financial results for the fourth quarter and fiscal year ending December 28, 2024. The company achieved record revenue, surpassing the previous year's milestone, with significant growth in net income, earnings per share, and EBITDA. The Energy, Finance, and Intellectual Property practices led the revenue growth, while other sectors also showed year-over-year improvements. The results were released on February 20, 2025.
Positive Highlights
- Revenue increased by 9.2% year-over-year to $176.4 million in Q4.
- Net income rose by 30.8% to $15.0 million, representing 8.5% of revenue.
- Earnings per diluted share grew by 34.6% to $2.18.
- Non-GAAP EBITDA increased by 28.4% to $24.4 million.
- Full-year revenue grew by 10.2% to $687.4 million.
- Non-GAAP net income for the year increased by 35.0% to $52.6 million.
Negative Highlights
- Utilization rate decreased to 78% in Q4, with a 5.8% reduction in headcount.
- On a constant currency basis, revenue and net income would have been slightly lower.
- Cash and cash equivalents decreased from $45.6 million to $26.7 million by year-end.
Financial Analyst Perspective
CRA International Inc's financial performance in fiscal 2024 demonstrates robust growth and effective cost management, as evidenced by the significant increases in net income and EBITDA. The company's ability to achieve double-digit revenue growth in key practice areas highlights its strong market position and client demand. However, the decrease in utilization and headcount may indicate potential challenges in resource management or market conditions. The company's strategic focus on returning capital to shareholders through dividends and share repurchases is a positive sign of confidence in its financial health.
Market Research Analyst Perspective
CRA International Inc's impressive financial results reflect its successful adaptation to market demands and its ability to leverage its expertise across various sectors. The strong performance in Energy, Finance, and Intellectual Property practices suggests a well-diversified portfolio that can withstand economic fluctuations. The company's expansion of its share repurchase program and consistent dividend payments indicate a commitment to enhancing shareholder value. However, the reduction in cash reserves and headcount may require careful monitoring to ensure sustained growth and operational efficiency.
Frequently Asked Questions (FAQ)
Q: What was CRAI's revenue growth in Q4 2024?
A: CRAI's revenue grew by 9.2% year-over-year to $176.4 million in Q4 2024.
Q: How much did CRAI's net income increase in Q4 2024?
A: Net income increased by 30.8% to $15.0 million in Q4 2024.
Q: What is CRAI's financial outlook for fiscal 2025?
A: CRAI expects revenue in the range of $715 million to $735 million and a non-GAAP EBITDA margin of 12.0% to 13.0% for fiscal 2025.
Q: How much capital did CRAI return to shareholders in fiscal 2024?
A: CRAI returned $45.6 million to shareholders through dividends and share repurchases in fiscal 2024.
Read the original press release here.
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