Third-quarter revenue at Mastech Digital Inc. (NYSEAMERICAN: MHH) fell 4.4%, but gross margin and net income improved. The Pittsburgh-based firm reported revenue rose in its “data and analytics services” division but fell in its IT staffing services business.
“Our data and analytics business delivered significant sequential growth, which, coupled with the recent acquisition of AmberLeaf Partners Inc., has positioned the business to scale as global markets begin to open up,” President and CEO Vivek Gupta said.
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Revenue | $47,383 | $49,543 | -4.4% |
| Gross profit | $13,090 | $12,329 | 6.2% |
| Gross margin | 27.6% | 24.9% | |
| Net income | $2,998 | $1,949 | 53.8% |
Mastech reported the decline in overall revenue reflects the continued impact of the Covid-19 pandemic.
Revenue by segment
| (US$ thousands) | Q3 2020 | Q3 2019 | % change |
| Data and analytics services | $7,176 | $7,080 | 1.4% |
| IT staffing services | $40,207 | $42,463 | -5.3% |
Share price and market cap
Shares in Mastech were down 5.25% to $18.04 as of 12:06 p.m. Eastern time; they were 39.83% below their 52-week high. The company had a market cap of $216.7 million.