NV5 Global Inc (NVEE) Reports 17% Increase in Q3 Revenues, Net Income Drops
NV5 Global Inc (NASDAQ:NVEE) reported a 17% increase in Q3 revenues, reaching $239 million.
The company's gross profit for Q3 2023 was $115.4 million, a 16% increase from the same period in 2022.
Net income for Q3 2023 was $13.3 million, down from $16.1 million in Q3 2022.
The company's adjusted EBITDA for Q3 2023 was $37.8 million, a 5% increase from Q3 2022.
On November 2, 2023, NV5 Global Inc (NASDAQ:NVEE), a provider of technology, conformity assessment, consulting solutions, and software applications, released its financial results for the third quarter ended September 30, 2023. The company reported record revenues of $239 million, a 17% increase over the same period a year ago.
Financial Highlights
The company's gross profit for the third quarter of 2023 was $115.4 million, a 16% increase from $99.9 million in the third quarter of 2022. However, net income for the third quarter of 2023 was $13.3 million, down from $16.1 million in the third quarter of 2022. The decrease in net income was impacted by increases in amortization from acquisitions, acquisition-related costs, interest expense, and income tax benefits, as well as lower margins in the LNG business, driven by project timing.
Adjusted EBITDA for the third quarter of 2023 was $37.8 million, a 5% increase from $36.0 million in the third quarter of 2022. The GAAP EPS for the third quarter of 2023 was $0.86 per share, compared to $1.05 per share in the third quarter of 2022. The adjusted EPS for the third quarter of 2023 was $1.51 per share, slightly higher than $1.50 per share in the third quarter of 2022.
Performance Analysis
NV5 Global Inc (NASDAQ:NVEE) has shown strong performance in the third quarter of 2023, with record revenues and a significant increase in gross profit. The company's geospatial business, clean energy, technology, data center, and international businesses all contributed to this strong performance. The company's acquisition of Red Technologies expanded its international footprint and capitalized on the universal demand for data centers.
However, the decrease in net income indicates that the company faced challenges in managing its costs, particularly related to acquisitions, interest expense, and income tax benefits. The lower margins in the LNG business, driven by project timing, also impacted the company's net income.
Looking Ahead
Looking forward, NV5 Global Inc (NASDAQ:NVEE) is well-positioned to achieve its goal of a $1 billion revenue run rate by the end of next year. The company has a record backlog of $833 million and expects to see continued growth in its infrastructure business. The company's full-year guidance anticipates gross revenues between $860 million and $868 million.
Despite the challenges faced in the third quarter, the company's strong performance in revenue growth and gross profit indicates a positive outlook for the future.
Explore the complete 8-K earnings release (here) from NV5 Global Inc for further details.
This article first appeared on GuruFocus.
