The Hackett Group Announces Fourth Quarter 2023 Results

February 20, 2024
5 Min Read

MIAMI, FL (February 20, 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 fourth quarter, which ended on December 29, 2023.

Financial Highlights

  • Total revenue in the fourth quarter of 2023 was $72.4 million and revenue before reimbursements was $71.2 million, which exceeded the high end of our guidance. This compares to total revenue of $70.1 million and revenue before reimbursements of $68.8 million in the fourth quarter of the prior year.
  • GAAP diluted earnings per share was $0.28 in the fourth quarter of 2023, as compared to $0.31 in the fourth quarter of 2022. GAAP net income includes a one-time legal settlement and related costs of $1.2M, or $0.03 per diluted earnings per share. 
  • Adjusted diluted earnings per share, a non-GAAP measure, was $0.39, exceeding the high end of our guidance, as compared to $0.36 in the fourth quarter of 2022. 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 from operations was $25.6 million for the fourth quarter of 2023, as compared to $24.8 million in the fourth quarter of 2022.
  • As of December 29, 2023, the Company’s cash balances were $21.0 million, with $33.0 million outstanding on the Company’s credit facility. During the fourth quarter of 2023, the Company paid down $11.0 million of its debt balance.
  • Subsequent to the end of the fourth quarter, the Company’s Board of Directors declared its first quarter 2024 dividend of $0.11 per share for its shareholders of record on March 22, 2024, to be paid on April 5, 2024.

“We reported solid operating results which exceeded our previously provided guidance while continuing our investment in program development and sales resources in our recurring high margin IP and AI offerings,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “More importantly, our recently launched generative artificial intelligence platform, AI XPLR, is receiving favorable feedback.  It has led to a significant number of client meetings, enabling us to showcase our unique ability to assess organizational opportunities by leveraging our rapidly growing Use Case Repository to establish Gen AI roadmaps with related benefit case analyses IP.”

Business Outlook for the First Quarter of 2024

Based on the Company’s current outlook:

  • The Company estimates total revenue before reimbursements for the first quarter of 2024 will be in the range of $72.5 million to $74.0 million.
  • The Company estimates adjusted diluted earnings per share for the first quarter of 2024 to be in the range of $0.36 and $0.39, assuming a GAAP effective tax rate of 22%.

Conference Call and Webcast Details

  • On Tuesday, February 20, 2024, senior management will discuss fourth quarter results in a conference call at 5:00 P.M. ET.  The number for the conference call is (800) 593-0486 [Passcode: Fourth 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, February 20, 2024 and will run through 5:00 P.M. ET on Tuesday, March 5, 2024. To access the rebroadcast, please dial (888) 566-0474. 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, February 20, 2024 and will run through 5:00 P.M. ET on Tuesday, March 5, 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 charge and asset impairment (settlement), legal settlement and related costs, amortization of intangible assets 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 – Q4 2023

About The Hackett Group®

The Hackett Group, Inc. (NASDAQ: HCKT) is a leading benchmarking, research advisory and strategic consultancy firm that enables organizations to achieve Digital World Class® performance.

Drawing upon our unparalleled intellectual property from more than 26,000 benchmark studies and our Hackett-Certified® best practices repository from 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 – captured through our leading benchmarking platform Quantum Leap® and our Digital Transformation Platform, we accelerate digital transformations, including enterprise cloud implementations.

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

The Hackett Group, Hackett-Certified, quadrant logo, World Class Defined and Enabled, Quantum Leap, Digital World Class and Hackett Value Matrix 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 digital transformation, artificial intelligence 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