CRA International (CRAI) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose 5.9% year-over-year to $171.4 million, with year-to-date revenue up 9.0% to $343.2 million, marking a record first half.

• Net income for Q2 2024 was $6.5 million, down from $9.5 million in Q2 2023, while non-GAAP net income increased 26.4% to $12.7 million.

• Non-GAAP EBITDA grew 18.5% to $22.3 million, representing a 13.0% margin.

• Five practices posted year-over-year growth, led by antitrust and competition economics.

• Consultant headcount remained stable at 968, with utilization at 74%.

Financial highlights

• Q2 revenue: $171.4 million, up 5.9% year-over-year; first-half revenue: $343.2 million.

• Non-GAAP EBITDA margin for the first half: 13% on $44.5 million EBITDA.

• Gross margin: 26.9% in Q2 2024, down from 30.0% in Q2 2023.

• Operating income for Q2 2024 was $11.3 million, down from $15.9 million in Q2 2023.

• Cash and cash equivalents at quarter-end: $24.6 million, down from $45.6 million at year-end 2023.

Outlook and guidance

• Full-year 2024 revenue guidance raised to $670–$685 million (prior: $645–$675 million).

• Non-GAAP EBITDA margin guidance increased to 12.2%–13.0% (prior: 10.8%–11.5%).

• Guidance reflects strong start, portfolio optimization, and continued hiring, but management remains cautious due to global uncertainties.