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HHS Nasdaq· Harte-Hanks, Inc
Earnings report Q3 2023

Harte Hanks Reports Decrease in Revenue for the Latest Quarter

Segments of revenue

In the latest quarter, Harte Hanks reported a total revenue of $47.1 million, a decrease of $6.8 million or 12.6% compared to the same quarter last year. The revenue for the nine months ended September 30, 2023, was $142 million, a decrease of $9.5 million or 6.3% compared to the same period in the previous year.

The breakdown of revenue by segment is as follows:

  1. Marketing Services: Revenue in the Marketing Services segment decreased by $6.6 million or 16.9% to $32.8 million for the nine months ended September 30, 2023.

  2. Customer Care: Revenue in the Customer Care segment decreased by $4.9 million or 9.7% to $45.6 million for the nine months ended September 30, 2023.

  3. Fulfillment & Logistics Services: Revenue in the Fulfillment & Logistics Services segment increased by $2.0 million or 3.3% to $63.6 million for the nine months ended September 30, 2023.

Strengths

Despite the overall decrease in revenue, Harte Hanks highlighted the acquisition of InsideOut, which contributed $2.2 million in revenue for the latest quarter. This acquisition helped partially offset the decline in revenue in the Customer Care segment. The company's Fulfillment & Logistics Services segment also showed growth, contributing to the overall revenue.

Challenges

The decrease in revenue for the Marketing Services and Customer Care segments poses a challenge for Harte Hanks. The decline in project work and lower revenue in these segments impacted the company's overall financial performance.

Noteworthy

Harte Hanks reported a decrease in operating income for the latest quarter. The operating income was $2.9 million, a decrease of $0.9 million or 23.9% compared to the same quarter last year. The company also experienced other expenses, primarily due to interest expense and net income adjustments.

Summary

Harte Hanks reported a decrease in revenue for the latest quarter, primarily driven by lower revenue in the Marketing Services and Customer Care segments. However, the acquisition of InsideOut and growth in the Fulfillment & Logistics Services segment provided some positive contributions. The company's financial performance was impacted by decreased project work and other expenses. Overall, Harte Hanks faces challenges in certain segments but also has strengths in its diversified revenue streams.

Source documents

Form 10-Q  filed on Nov 13, 2023
96 pages scanned

Reference data

Company financials Q3 revenue 47.1M
Analyst estimates Q3 EPS missed by -55.56%
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