Wednesday, March 08, 2023
Harte Hanks (NASDAQ: HHS) is a leading global customer experience company whose mission is to partner with clients to provide them with CX strategy, data-driven analytics and actionable insights combined with seamless program execution to better understand, attract, and engage their customers. Using its unparalleled resources and award-winning talent in the areas of Customer Care, Fulfillment and Logistics, and Marketing Services, Harte Hanks has a proven track record of driving results for some of the world’s premier brands including Bank of America, GlaxoSmithKline, Unilever, Pfizer, HBOMax, Volvo, Ford, FedEx, Midea, Sony, and IBM among others. Headquartered in Chelmsford, Massachusetts , Harte Hanks has over 2,500 employees in offices across the Americas, Europe and Asia Pacific .
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Patrick McCann, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Solid Q4 & full year results. The company reported Q4 revenue of $54.8 million, up 5.4%, and Adj. EBITDA of $5 million, in line with our estimates. Revenue growth was driven by fulfillment & logistics, which grew 34.4% from year earlier results. Full year revenue and Adj. EBITDA grew by 6% and 12%, respectively, a solid performance given the robust growth in 2021, where revenue and Adj. EBITDA grew by 10% and 467%, respectively.
Slow start to 2023. The company faces a difficult comp in Q1 due to non-recurring customer care revenue and lower margin revenue mix in the seasonally light quarter. Notably, we are tweaking upward our Q1 adj. EBITDA estimate given a slightly higher margin expectation.
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