PRISM NextGen Tech and AI Earnings: Hackett Group Posts a Solid Q3 with Optimistic Outlook
The IP platform-based, Gen AI consulting and advisory firm The Hackett Group (HCKT) reported its 3Q financial results. The company beat on EPS ($0.43 ex-items vs FactSet $0.40) and revenues ($79.8M vs FactSet $75.2M) in addition to raising Q4 guidance.
During the company’s Q&A management discussed the significant improvements in the AI XPLR platform version 2.0, which has led to higher conversion rates and more meaningful opportunities with clients. The integration of LeewayHertz’s capabilities has been a key driver of this. Additionally, Hackett expects a significant increase in client budgets and investments in Gen AI initiatives in 2025, which it believes will be a generational opportunity for the company. The company is still seeing strong performance from its Oracle and SAP solutions segments. Hackett also discussed the weakness seen in the eProcurement group which has offset the growth in Gen AI consulting, leading to a flat performance in the Global S&BT segment. However, this negative impact is expected to go away by the end of Q1 2025.
“We continued to report solid operating results that exceeded our revenue and earnings per share guidance. More importantly, we released AI XPLR version 2 and closed the acquisition of LeewayHertz, a highly recognized Gen AI consulting and implementation firm,” stated Ted A. Fernandez, Chairman & CEO of The Hackett Group, Inc. “We have now created an end-to-end Gen AI consulting and implementation capability to fully support our clients Gen AI journey, which should significantly improve growth prospects in this rapidly emerging area.”