The Hackett Group Announces First Quarter 2024 Results

May 7, 2024
5 Min Read

MIAMI, FL (May 7, 2024) – The Hackett Group, Inc. (NASDAQ: HCKT), a leading benchmarking, executive advisory and strategic consultancy firm that enables organizations to achieve Digital World Class® performance, today announced its financial results for the first quarter, which ended on March 29, 2024.

Financial Highlights

  • Total revenue in the first quarter of 2024 was $77.2 million and revenue before reimbursements was $75.7 million, which exceeded the high end of our guidance. This compares to total revenue of $71.2 million and revenue before reimbursements of $69.8 million in the first quarter of the prior year.
  • GAAP diluted earnings per share was $0.32 in the first quarter of 2024, as compared to $0.30 in the first quarter of 2023.
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.39, which was at the high end of our guidance, as compared to $0.37 in the first quarter of 2023. Adjusted financial information is provided to enhance the understanding of the Company’s financial performance and is reconciled to the Company’s GAAP information in the accompanying tables.
  • Cash flow provided from operations was $2.8 million for the first quarter of 2024, as compared to cash used in operations of $3.1 million in the first quarter of 2023.
  • As of March 29, 2024, the Company’s cash balances were $13.0 million, with $31.0 million outstanding on the Company’s credit facility. During the quarter, the Company repurchased 205 thousand shares of its stock to satisfy employee net vesting obligations and Board share repurchases at an average price of $23.57 for a total of $4.8 million. As of the end of the first quarter of 2024, the Company’s remaining share repurchase program authorization was $12.9 million.
  • Subsequent to the end of the first quarter, the Company’s Board of Directors declared its second quarter 2024 dividend of $0.11 per share for its shareholders of record on June 21, 2024, to be paid on July 5, 2024.

“We reported solid operating results which met or exceeded our previously provided guidance. This was accomplished while aggressively pivoting to the emerging Gen AI consulting demand leveraging our recently launched AI XPLR platform and continuing our investment in our Executive Advisory offerings,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “AI XPLR, our AI ideation and assessment platform, is continuing to receive very favorable feedback and has led to a significant number of client meetings, and a number of new AI projects. We expect this activity to increase throughout the balance of the year as we continue to extend the AI capabilities of our associates and our AI XPLR platform.”

Business Outlook for the Second Quarter of 2024

Based on the Company’s current outlook:

  • The Company estimates total revenue before reimbursements for the second quarter of 2024 will be in the range of $73.5 million to $75.0 million.
  • The Company estimates adjusted diluted earnings per share for the second quarter of 2024 to be in the range of $0.36 and $0.39, which assumes a GAAP effective tax rate of 27.2%.

Conference Call and Webcast Details

  • On Tuesday, May 7, 2024, senior management will discuss first quarter results in a conference call at 5:00 P.M. ET.  The number for the conference call is (800) 593-0486, [Passcode: First Quarter]. For International callers, please dial (517) 308-9371. Please dial in at least 5-10 minutes prior to start time. If you are unable to participate on the conference call, a rebroadcast will be available beginning at 8:00 P.M. ET on Tuesday, May 7, 2024 and will run through 5:00 P.M. ET on Tuesday, May 21, 2024. To access the rebroadcast, please dial (866) 407-9276. For International callers, please dial (203) 369-3610.
  • In addition, The Hackett Group® will also be webcasting this conference call live. To participate, simply visit approximately 10 minutes prior to the start of the call and click on the conference call link provided. An online replay of the call will be available after 8:00 P.M. ET on Tuesday, May 7, 2024 and will run through 5:00 P.M. ET on Tuesday, May 21, 2024.  To access the replay, visit

Use of Non-GAAP Financial Measures

The Company provides adjusted earnings results (which historically has excluded the loss from discontinued operations, non-cash stock-based compensation expense, acquisition-related compensation expense, acquisition-related non-cash stock-based compensation expense, restructuring charges and reversals, amortization of intangible assets, and any one-time charges or benefits and includes a GAAP tax rate) as a complement to results provided in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP results are provided to enhance the users’ overall understanding of the Company’s current financial performance and its prospects for the future. The Company believes the non-GAAP results provide useful information to both management and investors and by excluding certain expenses that it believes are not indicative of its core operating results. The non-GAAP measures are included to provide investors and management with an alternative method for assessing operating results in a manner that is focused on the performance of its ongoing primary operations and to provide a consistent basis for comparison between quarters. Further, these non-GAAP results are one of the primary indicators management uses for planning and forecasting. The presentation of this additional non-GAAP information should be considered in addition to, and not as a substitute for or superior to, any results prepared in accordance with GAAP.  See the reconciliation of actual results titled “Reconciliation of GAAP to Non-GAAP Measures” in the accompanying tables.

The Company believes that the presentation of non-GAAP financial information on a forward-looking basis, including the guidance contained in this release, provides important supplemental information to management and investors regarding its anticipated results of operations. The Company is unable to provide a reconciliation of GAAP measures to corresponding forward-looking non-GAAP measures without unreasonable effort due to the high variability and low visibility of most of the items that have been excluded from these non-GAAP measures. For example, non-cash stock-based compensation expense is impacted by the Company’s future hiring needs, the type and volume of equity awards necessary for such future hiring, and the price at which the Company’s stock will trade in those future periods. In addition, the provision or benefit for income taxes is impacted by non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-GAAP exclusions. The effects of these reconciling items may be significant, as the items that are being excluded are difficult to predict.

Earnings Call Documents

SEC XBRL Filings – Q1 2024

About The Hackett Group

The Hackett Group, Inc. (NASDAQ: HCKT) is a leading benchmarking, executive advisory and strategic consultancy firm that enables organizations to achieve Digital World Class® performance. Using AI XPLR – our AI assessment platform – our experienced professionals guide organizations to harness the power of Gen AI to digitally transform their operations and achieve quantifiable, breakthrough results, allowing us to be key architects of their Gen AI journey.

Our expertise is grounded in unparalleled best practices insights from benchmarking the world’s leading businesses – including 97% of the Dow Jones Industrials, 89% of the Fortune 100, 70% of the DAX 40 and 55% of the FTSE 100 – and are delivered leveraging our Digital Transformation Platform, Hackett Connect and Quantum Leap®.

For more information on The Hackett Group, visit:; email; or call (770) 225-3600.

The Hackett Group, quadrant logo, World Class Defined and Enabled, Quantum Leap, and Digital World Class are the registered marks of The Hackett Group.

Cautionary Statement Regarding “Forward-Looking” Statements

This release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933 as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements including without limitation, words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” seeks,” “estimates,” or other similar phrases or variations of such words or similar expressions indicating, present or future anticipated or expected occurrences or outcomes are intended to identify such forward-looking statements. Forward-looking statements are not statements of historical fact and involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that may impact such forward-looking statements include without limitation, the ability of The Hackett Group to effectively market its artificial intelligence, digital transformation and other consulting services, competition from other consulting and technology companies that may have or develop in the future, similar offerings, the commercial viability of The Hackett Group and its services as well as other risk detailed in The Hackett Group’s reports filed with the United States Securities and Exchange Commission. The Hackett Group does not undertake any duty to update this release or any forward-looking statements contained herein.

Robert A. Ramirez, CFO, 305-375-8005 or