The Hackett Group Inc (NAS:HCKT)
$ 11.52 +0.40 (+3.59%) Market Cap: 286.59 Mil Enterprise Value: 355.46 Mil PE Ratio: 17.72 PB Ratio: 4.25 GF Score: 57/100

Q1 2025 Hackett Group Inc Earnings Call Transcript

May 6, 2025 / 09:00 PM GMT
Release Date Price: $26.01 (-2.44%)

Key Points

Positve
  • The Hackett Group Inc (HCKT) reported revenues before reimbursements of $76.2 million and adjusted earnings per share of $0.41, both near the high end of their quarterly guidance.
  • The company's GSBT segment experienced strong revenue growth, driven by GenAI engagements, which also positively impacted gross margins.
  • The GenAI platform's capabilities, including AI Explorer version 3 and ZBrain, are highly differentiated, allowing The Hackett Group Inc (HCKT) to compete strongly in the rapidly growing AI space.
  • The company is seeing increased client engagement and interest in GenAI solutions, with clients moving from awareness to budgeted projects.
  • The Hackett Group Inc (HCKT) is leveraging its AI capabilities to enhance its executive advisory and IP-based programs, integrating GenAI content to meet client demand.
Negative
  • The company experienced weaknesses in its one stream and e-procurement practices, partially offsetting the growth in the GSBT segment.
  • Revenues from the Oracle solution segment decreased by 3% compared to the prior year, impacted by the wind down of a large engagement.
  • The SAP solution segment saw an 8% revenue decrease compared to the prior year, although future demand is expected to be strong.
  • The company's cash balances decreased to $9.2 million at the end of the first quarter, down from $16.4 million in the previous quarter.
  • The increase in days sales outstanding (DSO) to 73 days from 66 days in the previous quarter indicates potential challenges in cash collection.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HCKT.OQ - Hackett Group Inc
Q1 2025 Hackett Group Inc Earnings Call
May 06, 2025 / 09:00PM GMT

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Presentation
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Unidentified_1 [1]
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Welcome to the Hackett Group first quarter earnings conference call. Your lines have been placed on a listen-only mode until the question and answer session. Please be advised the conference is being recorded. Hosting tonight's call are Mr. Ted Fernandez, Chairman and CEO, and Mr. Rob Ramirez, Chief Financial Officer.

Thank you, Mr. Ramirez. You may begin.

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Unidentified_2 [2]
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Good afternoon everyone, and thank you for joining us to discuss the Hackett Group's first quarter results. Speaking on the call today and here to answer your questions are Ted
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