Harte Hanks, Inc. Q3 FY2024 earnings call

Over the past year, Harte Hanks has been focused on business transformation for sustainable growth and free cash flow optimization. In Q3, revenue showed a year-over-year increase, improving from prior declines. The company anticipates a low to mid-single digit revenue decline in Q4. Harte Hanks established the Customer Excellence and Growth (CEG) division with a Chief Customer Data Officer. The CEG division aims to unify customer experience and sales/marketing teams. The company has secured new clients and expansion programs from existing customers, such as a new customer in the fulfillment practice and a top 15 financial services client that outsourced fulfillment operations.

In the third quarter of 2024, total revenues were $47.6 million, a 1.1% year-over-year increase. The Customer Care segment had revenues of $13.1 million in Q3 2024 compared to $11.8 million in the same quarter of 2023. The Sales Services segment saw revenues rise to $4.2 million in Q3 2024 from $2.2 million in Q3 2023. The Marketing Service segment had revenues of $9.1 million in Q3 2024, down from $10.6 million in Q3 2023. Fulfillment and logistics revenues were $21.3 million in Q3 2024, compared to $22.5 million in Q3 2023.

Harte Hanks expects a low to mid-single digit revenue decline in Q4. The company is on track for $6 million of in-year EBITDA improvement from Project Elevate, which includes cost savings from personnel optimization, contract streamlining, and warehouse operations improvements.

Actual results may differ from forward-looking statements due to risks and uncertainties. The company's revenue turnaround may experience natural fluctuations. Project Elevate execution may involve additional expenses related to contract terminations and workforce reductions.