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News » Mastech Digital saw 20% revenue drop in Q4 2023

Mastech Digital saw 20% revenue drop in Q4 2023

Mastech Digital revenue drop
Photo from Mastech Digital

PENNSYLVANIA, UNITED STATES — Digital transformation services provider Mastech Digital posted a 20% year-on-year (YoY) drop in total revenue for Q4 2023 to $46.1 million compared to $57.2 million in Q4 2022.

The company’s Data and Analytics unit saw revenue fall to $8.2 million as clients reduced spending. Meanwhile, its larger IT Staffing division reported a revenue decrease to $37.9 million, down 23% from $48.1 million last year.

According to Mastech Digital CEO Vivek Gupta, “Challenging economic conditions weighed on clients’ spending practices for most of 2023. As a result, both of our business segments experienced revenue declines during the year.”

The revenue decline also hit profits. Gross profit fell to $11.3 million from Q4 2022’s $14.2 million, and GAAP’s (generally accepted accounting principles) net income flipped to a $5.4 million loss compared to a $1.5 million profit last year.

However, Mastech Digital maintains a solid balance sheet with $21.1 million in cash, no debt, and $22.5 million in borrowing capacity.

And while 2023 proved difficult, the firm saw positive signs entering 2024. Its Data unit booked $19 million in new orders, while its IT Staffing division added billable consultants in October and November.

“Despite 2023’s difficulties, we believe that our businesses remain fundamentally sound and that we are well positioned for a successful year in 2024,” Gupta affirmed.

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