HHS

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.

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.

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.

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.