Mastech Digital (MHH) 10-Q 8 Nov 21 2021 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Registrant Name	MASTECH DIGITAL, INC.
Entity Central Index Key	0001437226
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-34099
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	26-2753540
Entity Address, Address Line One	1305 Cherrington Parkway
Entity Address, Address Line Two	Building 210
Entity Address, Address Line Three	Suite 400
Entity Address, City or Town	Moon Township
Entity Address, Postal Zip Code	15108
Entity Address, State or Province	PA
City Area Code	412
Local Phone Number	787-2100
Title of 12(b) Security	Common Stock
Trading Symbol	MHH
Security Exchange Name	NYSEAMER
Entity Common Stock, Shares Outstanding		11,438,013

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Revenues	$ 59,531	$ 47,383	$ 162,964	$ 145,391
Cost of revenues	42,911	34,293	119,225	106,926
Gross profit	16,620	13,090	43,739	38,465
Selling, general and administrative expenses:
Operating expenses	11,645	8,873	33,566	28,158
Revaluation of contingent consideration liability			(1,982)
Total Selling, general and administrative expenses	11,645	8,873	31,584	28,158
Income from operations	4,975	4,217	12,155	10,307
Interest income (expense), net	(169)	(164)	(523)	(641)
Other income (expense), net	(66)	(27)	(88)	67
Income before income taxes	4,740	4,026	11,544	9,733
Income tax expense	1,334	1,028	3,206	1,897
Net income	$ 3,406	$ 2,998	$ 8,338	$ 7,836
Earnings per share:
Basic	$ 0.30	$ 0.26	$ 0.73	$ 0.70
Diluted	$ 0.28	$ 0.25	$ 0.69	$ 0.66
Weighted average common shares outstanding:
Basic	11,441	11,381	11,430	11,260
Diluted	12,025	12,042	12,007	11,911

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Net income	$ 3,406	$ 2,998	$ 8,338	$ 7,836
Other comprehensive income (loss):
Net unrealized gain (loss) on interest-rate swap contracts		39	35	(29)
Foreign currency translation adjustment	31	107	(83)	(198)
Total pretax net unrealized gain (loss)	31	146	(48)	(227)
Income tax expense (benefit)		10	9	(8)
Total other comprehensive gain (loss), net of taxes	31	136	(57)	(219)
Total comprehensive income	$ 3,437	$ 3,134	$ 8,281	$ 7,617

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 5,447	$ 7,677
Accounts receivable, net of allowance for uncollectible accounts of $393 in 2021 and $413 in 2020	32,471	22,036
Unbilled receivables	12,904	10,098
Prepaid and other current assets	4,171	1,346
Total current assets	54,993	41,157
Equipment, enterprise software, and leasehold improvements, at cost:
Equipment	2,159	1,931
Enterprise software	3,259	2,730
Leasehold improvements	491	563
Total equipment, enterprise software, and leasehold improvements	5,909	5,224
Less – accumulated depreciation and amortization	(3,708)	(3,253)
Net equipment, enterprise software, and leasehold improvements	2,201	1,971
Operating lease right-of-use assets	5,229	3,286
Deferred income taxes		796
Non-current deposits	597	396
Goodwill, net of impairment	32,510	32,510
Intangible assets, net of amortization	19,552	21,930
Total assets	115,082	102,046
Current liabilities:
Current portion of long-term debt	4,400	4,400
Accounts payable	4,942	2,589
Accrued payroll and related costs	15,552	12,374
Current portion of operating lease liability	1,494	1,079
Other accrued liabilities	1,012	1,051
Deferred revenue	446	478
Total current liabilities	27,846	21,971
Long-term liabilities:
Long-term debt, less current portion, net	9,636	12,875
Contingent consideration liability	900	2,882
Long-term operating lease liability, less current portion	4,052	2,325
Long-term accrued income taxes	165	165
Deferred income taxes	17
Long-term payroll tax liabilities	2,295	2,295
Total liabilities	44,911	42,513
Commitments and contingent liabilities (Note 6)
Shareholders' equity:
Preferred Stock, no par value; 20,000,000 shares authorized; none outstanding
Common Stock, par value $.01; 250,000,000 shares authorized and 13,084,433 shares issued as September 30, 2021 and 13,039,893 shares issued as of December 31, 2020	131	130
Additional paid-in-capital	27,865	25,509
Retained earnings	46,958	38,620
Accumulated other comprehensive income (loss)	(596)	(539)
Treasury stock, at cost; 1,646,420 shares as of September 30, 2021 and as of December 31, 2020	(4,187)	(4,187)
Total shareholders' equity	70,171	59,533
Total liabilities and shareholders' equity	$ 115,082	$ 102,046

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Accounts receivable, allowance for uncollectible accounts	$ 393	$ 413
Preferred Stock, par value	$ 0	$ 0
Preferred Stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	13,084,433	13,039,893
Treasury stock, shares	1,646,420	1,646,420

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (loss) [Member]
Beginning Balances at Dec. 31, 2019	$ 46,280	$ 127	$ 21,939	$ 28,759	$ (4,187)	$ (358)
Net income	1,869			1,869
Other comprehensive gain (loss), net of taxes	(336)					(336)
Stock-based compensation expense	456		456
Stock options exercised	556	1	555
Ending Balances at Mar. 31, 2020	48,825	128	22,950	30,628	(4,187)	(694)
Beginning Balances at Dec. 31, 2019	46,280	127	21,939	28,759	(4,187)	(358)
Net income	7,836
Other comprehensive gain (loss), net of taxes	(219)
Ending Balances at Sep. 30, 2020	56,862	130	24,901	36,595	(4,187)	(577)
Beginning Balances at Mar. 31, 2020	48,825	128	22,950	30,628	(4,187)	(694)
Net income	2,969			2,969
Employee common stock purchases	105		105
Other comprehensive gain (loss), net of taxes	(19)					(19)
Stock-based compensation expense	612		612
Stock options exercised	767	2	765
Ending Balances at Jun. 30, 2020	53,259	130	24,432	33,597	(4,187)	(713)
Net income	2,998			2,998
Other comprehensive gain (loss), net of taxes	136					136
Stock-based compensation expense	462		462
Stock options exercised	7	0	7
Ending Balances at Sep. 30, 2020	56,862	130	24,901	36,595	(4,187)	(577)
Beginning Balances at Dec. 31, 2020	59,533	130	25,509	38,620	(4,187)	(539)
Net income	1,194			1,194
Other comprehensive gain (loss), net of taxes	7					7
Stock-based compensation expense	621		621
Stock options exercised	101		101
Ending Balances at Mar. 31, 2021	61,456	130	26,231	39,814	(4,187)	(532)
Beginning Balances at Dec. 31, 2020	59,533	130	25,509	38,620	(4,187)	(539)
Net income	8,338
Other comprehensive gain (loss), net of taxes	(57)
Ending Balances at Sep. 30, 2021	70,171	131	27,865	46,958	(4,187)	(596)
Beginning Balances at Mar. 31, 2021	61,456	130	26,231	39,814	(4,187)	(532)
Net income	3,738			3,738
Employee common stock purchases	181		181
Other comprehensive gain (loss), net of taxes	(95)					(95)
Stock-based compensation expense	757		757
Stock options exercised	4	1	3
Ending Balances at Jun. 30, 2021	66,041	131	27,172	43,552	(4,187)	(627)
Net income	3,406			3,406
Other comprehensive gain (loss), net of taxes	31					31
Stock-based compensation expense	693		693
Ending Balances at Sep. 30, 2021	$ 70,171	$ 131	$ 27,865	$ 46,958	$ (4,187)	$ (596)

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES:
Net income	$ 8,338	$ 7,836
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Depreciation and amortization	2,984	2,599
Bad debt expense	150
Interest amortization of deferred financing costs	61	78
Stock-based compensation expense	2,071	1,530
Deferred income taxes, net	813	(299)
Revaluation of contingent consideration liability	(1,982)
Operating lease assets and liabilities, net	199	4
Loss on disposition of fixed assets	5	2
Working capital items:
Accounts receivable and unbilled receivables	(13,391)	1,094
Prepaid and other current assets	(2,825)	(1,050)
Accounts payable	2,353	(913)
Accrued payroll and related costs	3,178	6,530
Other accrued liabilities	(13)	(340)
Deferred revenue	(32)	(133)
Net cash flows provided by (used in) operating activities	1,909	16,938
INVESTING ACTIVITIES:
Recovery of (payment for) non-current deposits	(201)	13
Capital expenditures	(851)	(260)
Proceeds from the sale of fixed assets	10
Net cash flows (used in) investing activities	(1,042)	(247)
FINANCING ACTIVITIES:
(Repayments) borrowings on revolving credit facility, net		(9,501)
(Repayments) on term loan facility	(3,300)	(7,394)
Proceeds from the issuance of common shares	181	105
Proceeds from the exercise of stock options	105	1,330
Net cash flows provided by (used in) financing activities	(3,014)	(15,460)
Effect of exchange rate changes on cash and cash equivalents	(83)	(198)
Net change in cash and cash equivalents	(2,230)	1,033
Cash and cash equivalents, beginning of period	7,677	2,981
Cash and cash equivalents, end of period	$ 5,447	$ 4,014

Description of Business and Bas

Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation: Basis of Presentation References in this Quarterly Report on Form 10-Q Description of Business We are a provider of Digital Transformation IT Services to mostly large and medium-sized Our portfolio of offerings includes data management and analytics services; digital learning services; and IT staffing services. Reflective of our 2017 acquisition of the services division of Canada-based InfoTrellis, Inc., we have added specialized capabilities in delivering data and analytics services to our customers globally. This business offers project-based consulting services in the areas of data management, data engineering and data science, with such services delivered using on-site Our IT staffing business combines technical expertise with business process experience to deliver a broad range of staffing services in digital and mainstream technologies. Our digital technologies include data management, analytics, cloud, mobility, social and artificial intelligence. We work with businesses and institutions with significant IT spending and recurring staffing service needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. The COVID-19 roll-out Accounting Principles The accompanying Financial Statements have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements and the accompanying notes. Actual results could differ from these estimates. These Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2020, included in our Annual Report on Form 10-K Principles of Consolidation The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation. Critical Accounting Policies Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K Segment Reporting The Company has two reportable segments, in accordance with Accounting Standards Committee (“ASC”) Topic 280 “Disclosures About Segments of an Enterprise and Related Information”: Data and Analytics Services and IT Staffing Services.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
	Sep. 30, 2021
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	2. Revenue from Contracts with Customers The Company recognizes revenue on time-and-material Time-and-material out-of-pocket Out-of-pocket The Company recognizes revenue on fixed price contracts over time as services are rendered and uses a cost-based input method to measure progress. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. Under the The Company’s time-and-material In certain situations related to client direct hire assignments, where the Company’s fee is contingent upon the hired resources continued employment with the client, revenue is not fully recognized until such employment conditions are satisfied. We do not sell, lease or otherwise market computer software or hardware, and essentially 100% of our revenue is derived from the sale of data and analytics, IT staffing and digital transformation services. We expense sales commissions in the same period in which revenues are realized. These costs are recorded within sales and marketing expenses. Each contract the Company enters into is assessed to determine the promised services to be performed and includes identification of the performance obligations required by the contract. In substantially all of our contracts, we have identified a single performance obligation for each contract either because the promised services are distinct or the promised services are highly interrelated and interdependent and therefore represent a combined single performance obligation. Our Data and Analytics Services segment provides specialized capabilities in delivering data management and analytics services to customers globally. This business offers project-based consulting services in the areas of Master Data Management, Enterprise Data Integration, Data Engineering and Analytics, which can be delivered using onsite and offshore resources. Our IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital and mainstream technologies. Our digital technology stack includes data management and analytics, cloud, mobility, social and automation. Our mainstream technologies include business intelligence / data warehousing; web services; enterprise resource planning & customer resource management; and e-Business The following table depicts the disaggregation of our revenues by contract type and operating segment: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Data and Analytics Services Segment Time-and-material $ 6,021 $ 4,140 $ 17,792 $ 11,952 Fixed-price Contracts 4,502 3,036 10,475 9,356 Subtotal Data and Analytics Services $ 10,523 $ 7,176 $ 28,267 $ 21,308 IT Staffing Services Segment Time-and-material $ 49,008 $ 40,207 $ 134,697 $ 124,083 Fixed-price Contracts — — — — Subtotal IT Staffing Services $ 49,008 $ 40,207 $ 134,697 $ 124,083 Total Revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391 For the three months ended September 30, 2021, the Company had two clients that exceeded 10% of total revenue (CGI = 14.6% and Accenture =10.4%). For the nine months ended September 30, 2021, the Company had one client that exceeded 10% of total revenue (CGI = 14.8%). For the three and nine months ended September 30, 2020, the Company had the same one client that exceeded 10% of total revenue in both periods (CGI = 16.6% and 14.8%, respectively). The Company’s top ten clients represented approximately 49% and 51% of total revenues for the three months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021 and 2020, the Company’s top ten clients represented approximately 48% of total revenues for both periods. The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) United States $ 57,682 $ 46,445 $ 157,156 $ 142,572 Canada 988 768 3,270 2,363 India and Other 861 170 2,538 456 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391

Business Combinations

Business Combinations	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Business Combinations	3. Business Combinations On October 1, 2020, Mastech Digital, Inc., through its wholly-owned subsidiary Mastech Digital Data, Inc., acquired all of the outstanding shares of AmberLeaf Partners, Inc. (“AmberLeaf”). Under the terms of the Share Purchase Agreement executed in connection with the AmberLeaf acquisition (the “Purchase Agreement”), the Company paid at the closing of the acquisition approximately $9.7 million in cash. The Purchase Agreement also requires the Company to pay to the former shareholders of AmberLeaf up to $4.5 million in deferred cash payments, which payments are contingent upon the AmberLeaf business achieving specific revenue growth and EBITDA margin targets. The amount of these deferred cash payments, if any, is based upon the revenue growth and EBITDA margins of the AmberLeaf business for the 12-month 12-month To fund the acquisition, on October 1, 2020 the Company entered into a Third Amendment (the “Third Amendment”) to its Credit Agreement, as amended and dated April 20, 2018. The Third Amendment amends the Credit Agreement by, among other things, (1) increasing the aggregate commitment amount of the revolving credit facility to $30 million (an increase of $7.5 million); (2) providing for the Term Loan facility in the aggregate amount of $17.5 million (an increase of $10 million); (3) providing for an increase in the total commitment amount to the facility in an aggregate amount not to exceed $15 million, upon the satisfaction of certain conditions; and (4) amending the financial covenant in the Credit Agreement related to the Company’s Fixed Charge Coverage Ratio (as defined in the Credit Agreement) by increasing the minimum permitted Fixed Charge Coverage Ratio for each of the fiscal quarters ending on or after September 30, 2020. The acquisition was accounted for using the acquisition method of accounting. The acquisition method of accounting requires that the assets acquired and liabilities assumed be measured at their fair value as of the closing date. The following table summarizes the fair value of consideration for the acquired business on the October 1, 2020 closing date: (in thousands) Amounts Cash purchase price at closing $ 9,664 Working capital adjustments — Estimated payout of contingent consideration (1) 2,882 Total Fair Value of Consideration $ 12,546 (1) Based on a valuation conducted by an independent third party, the fair value of contingent consideration at the closing date was determined to be $2,882,000. During the three month period ended June 30, 2021, the Company revalued the contingent consideration liability related to the AmberLeaf acquisition after determining that relevant conditions for payment of such liabilities were unlikely to be fully satisfied. The revaluation resulted in a $2.0 million reduction to the contingent consideration liability. The cash purchase price at closing was paid with funds obtained from the following sources: (in thousands) Amounts Cash balances on hand $ — Increase in term loan debt facility 10,000 Revolving line of credit (336 ) Cash Paid at Closing $ 9,664 The allocation of the purchase price was based on estimates of the fair value of assets acquired and liabilities assumed as of October 1, 2020, as set forth below. The excess purchase price over the fair values of the net tangible assets and identifiable intangible assets was recorded as goodwill, which includes value associated with the assembled workforce. Goodwill is expected to be largely deductible for tax purposes. The valuation of net assets acquired is as follows: (in thousands) Amounts Cash on hand $ 319 Working capital assets, net of liabilities 1,153 Identifiable intangible assets: Client relationships 2,970 Covenant not-to-compete 440 Trade name 490 Technology 770 Total identifiable intangible assets 4,670 Goodwill 6,404 Net Assets Acquired $ 12,546 The fair value of identifiable intangible assets has been estimated using the income approach through a discounted cash flow analysis. Specifically, the Company used the income approach through an excess earnings analysis to determine the fair value of client relationships. The value applied to the covenant not-to-compete The Company incurred $650,000 of transaction expenses related to the acquisition in 2020 inclusive of the write-off Included in the Condensed Statement of Operations for the three and nine month periods ended September 30, 2021 are revenues of $1.9 million and $5.7 million, respectively, and net income of approximately $0.3 million and $0.4 million excluding the impact of the contingent consideration revaluation), respectively, applicable to the AmberLeaf operations acquired on October 1, 2020. The following reflects the Company’s unaudited pro forma results had the results of AmberLeaf been included for all periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Amounts in thousands, except per share data) Revenue $ 59,531 $ 50,281 $ 162,964 $ 154,132 Net income $ 3,406 $ 3,460 $ 8,338 $ 9,042 Earnings per share—diluted $ .28 $ .29 $ .69 $ .76 The information above does not reflect all of the operating efficiencies or inefficiencies that may have resulted from the AmberLeaf acquisition in those periods prior to the acquisition. Therefore, the unaudited pro forma information above is not necessarily indicative of results that would have been achieved had the business been combined during all periods presented.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets, net	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Other Intangible Assets, net	4. Goodwill and Other Intangible Assets, net Goodwill related to our June 15, 2015 acquisition of Hudson Global Resources Management’s U.S. IT staffing business (“Hudson IT”) totaled $8.4 million. Goodwill related to our July 13, 2017 acquisition of the services division of InfoTrellis totaled $27.4 million. During 2018, the Company recorded a goodwill impairment related to the InfoTrellis acquisition of $9.7 million. Goodwill related to our October 1, 2020 acquisition of AmberLeaf totaled $6.4 million. The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of September 30, 2021 and December 31, 2020: As of September 30, 2021 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 4,194 $ 3,805 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 6,094 13,547 Covenant-not-to-compete 5 1,201 728 473 Trade name 5 1,711 1,126 585 Technology 7 1,979 837 1,142 Total Intangible Assets $ 33,099 $ 13,547 $ 19,552 As of December 31, 2020 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 3,694 $ 4,305 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 4,866 14,775 Covenant-not-to-compete 5 1,201 548 653 Trade name 5 1,711 869 842 Technology 7 1,979 624 1,355 Total Intangible Assets $ 33,099 $ 11,169 $ 21,930 Amortization expense for the three and nine month periods ended September 30, 2021 totaled $792,000 and $2.4 million, respectively, and is included in selling, general and administrative expenses in the Consolidated Statement of Operations. For the three and nine month periods ended September 30, 2020, amortization expense was $656,000 and $2.0 million, respectively. The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2021 through 2025 is as follows: Years Ended December 31, 2021 2022 2023 2024 2025 (Amounts in thousands) Amortization expense $ 3,168 $ 2,987 $ 2,772 $ 2,693 $ 2,553

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	5. Leases The Company rents certain office facilities and equipment under noncancelable operating leases. As of September 30, 2021, approximately 97,000 square feet of office space is utilized for our sales and recruiting offices, delivery centers, and corporate headquarters. All of our leases are classified as operating leases. The average initial lease term is four years. Several leases have an option to renew, at our sole discretion, for an additional term. Our present lease terms range from less than one year to 5.5 years with an average of 2.8 years. Leases with an initial term of twelve months or less are not recorded on the balance sheet. The following table summarizes the balance sheet classification of the lease assets and related lease liabilities: September 30, 2021 December 31, 2020 (Amounts in thousands) Assets: Long-term operating lease right-of-use $ 5,229 $ 3,286 Liabilities: Short-term operating lease liability $ 1,494 $ 1,079 Long-term operating lease liability 4,052 2,325 Total Liabilities $ 5,546 $ 3,404 Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows: Amount as of (in thousands) 2021 (For remainder of year) $ 426 2022 1,689 2023 1,642 2024 901 2025 630 Thereafter 757 Total 6,045 Less: Imputed interest (499 ) Present value of operating lease liabilities $ 5,546 The weighted average discount rate used to calculate the present value of future lease payments was 4.2%. We recognize rent expense for these leases on a straight-line basis over the lease term. Rental expense for the three and nine months ended September 30, 2021 totaled $0.4 million and $1.3 million, respectively. Rental expense for the three and nine months ended September 30, 2020 totaled $0.4 million and $1.2 million, respectively. Total cash paid for lease liabilities for the three and nine months ended September 30, 2021 totaled $0.4 million and $1.1 million, respectively. Total cash paid for lease liabilities for the three and nine months ended September 30, 2020 totaled $0.4 million and $1.2 million, respectively. New leases entered into during the three and nine months ended September 30, 2021 totaled $0 and $3.1 million, respectively. New leases entered into during the three and nine months ended September 30, 2020 totaled $0 and $0.2 million, respectively. On April 1, 2021, the Company entered into an operating lease for 35,356 square feet of office space in Chennai, India, which replaces a 19,120 square foot lease.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies In the ordinary course of our business, the Company is involved in a number of lawsuits and administrative proceedings. While uncertainties are inherent in the final outcome of these matters, the Company’s management believes, after consultation with legal counsel, that the disposition of these proceedings should not have a material adverse effect on our financial position, results of operations or cash flows.

Employee Benefit Plan

Employee Benefit Plan	9 Months Ended
	Sep. 30, 2021
Retirement Benefits [Abstract]
Employee Benefit Plan	7 Employee Benefit Plan The Company provides an Employee Retirement Savings Plan (the “Retirement Plan”) under Section 401(k) of the Internal Revenue Code of 1986, as amended (the “Code”), that covers substantially all U.S. based salaried and W-2

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2021
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	8. Stock-Based Compensation In 2008, the Company adopted a Stock Incentive Plan (the “Plan”) which, as amended, provides that up to 4,900,000 shares of the Company’s Common Stock shall be allocated for issuance to directors, officers and key personnel. Grants under the Plan can be made in the form of stock options, stock appreciation rights, performance shares or stock awards. During the three months ended September 30, 2021 and September 30, 2020, the Company granted no shares under the Plan. During the nine months ended September 30, 2021, the Company granted restricted share units of 11,955 and 270,000 stock option grants at an average strike price of $17.65. During the nine months ended September 30, 2020, the Company granted restricted share units of 11,475 and 800,000 stock option grants at an average strike price of $15.49. As of September 30, 2021 and December 31, 2020, there were 343,000 shares and 613,000 shares, respectively, available for grants under the Plan. Stock-based compensation expense for the three months ended September 30, 2021 and 2020 was $693,000 and $462,000, respectively, and for the nine months ended September 30, 2021 and 2020 was $2.1 million and $1.5 million. Stock-based compensation expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2021, the Company issued 0 and 30,239 shares, respectively, related to the vesting of restricted shares and the exercising of stock options. During the three and nine months ended September 30, 2020, the Company issued 1,000 and 318,774 shares, respectively, related to the vesting of restricted shares and the exercising of stock options. In October 2018, the Board of Directors of the Company approved the Mastech Digital, Inc. 2019 Employee Stock Purchase Plan (the “Stock Purchase Plan”). The Stock Purchase Plan is intended to meet the requirements of Section 423 of the Code and was required to be approved by the Company’s shareholders to be qualified. On May 15, 2019, the Company’s shareholders approved the Stock Purchase Plan. Under the Stock Purchase Plan, 600,000 shares of Common Stock (subject to adjustment upon certain changes in the Company’s capitalization) are available for purchase by eligible employees who become participants in the Stock Purchase Plan. The purchase price per share is 85% of the lesser of (i) the fair market value per share of Common Stock on the first day of the offering period, or (ii) the fair market value per share of Common Stock on the last day of the offering period. The Company’s eligible full-time employees are able to contribute up to 15% of their base compensation into the employee stock purchase plan, subject to an annual limit of $25,000 per person. Employees are able to purchase Company common stock at a 15% discount to the lower of the fair market value of the Company’s common stock on the initial or final trading dates of each six-month six-month six-month During the three months ended September 30, 2021 and 2020, there were no shares

Credit Facility

Credit Facility	9 Months Ended
	Sep. 30, 2021
Text Block [Abstract]
Credit Facility	9. Credit Facility On July 13, 2017, the Company entered into a Credit Agreement (the “Credit Agreement”) with PNC Bank, as administrative agent, swing loan lender and issuing lender, PNC Capital Markets LLC, as sole lead arranger and sole book-runner, and certain financial institution parties thereto as lenders (the “Lenders”). The Credit Agreement, as amended, provides for a total aggregate commitment of $47.5 million, consisting of (i) a revolving credit facility (the “Revolver”) in an aggregate principal amount not to exceed $30 million (subject to increase by up to an additional $15 million upon satisfaction of certain conditions) and; (ii) a $17.5 million term loan facility (the “Term Loan), as more fully described in Exhibit 10.1 to the Company’s Form 8-Ks 8-K/A The Revolver expires in October 2023 and includes swing loan and letter of credit sub-limits Amounts borrowed under the Term Loan are required to be repaid in consecutive quarterly installments through and including the maturity date of October 1, 2023. The principal amount of each quarterly installment payable on the Term Loan equals $1.1 million through and including the maturity date, with the maturity date payment equal to the outstanding amount of the loan on that date. Borrowings under the revolver and the term loan, at the Company’s election, bear interest at either (a) the higher of PNC’s prime rate or the federal funds rate plus 0.50%, plus an applicable margin determined based upon the Company’s senior leverage ratio or (b) an adjusted London Interbank Offered Rate (“LIBOR”), with a floor of 0.50%, plus an applicable margin determined based upon the Company’s senior leverage ratio. The applicable margin on the base rate is between 0.50% and 1.25% on revolver borrowings and between 1.75% and 2.50% on term loans. The applicable margin on the adjusted LIBOR is between 1.50% and 2.25% on revolver borrowings and between 2.75% and 3.50% on term loans. A 20 to 30-basis The Company pledged substantially all of its assets in support of the Credit Agreement. The Credit Agreement contains standard financial covenants, including, but not limited to, covenants related to the Company’s senior leverage ratio and fixed charge ratio (as defined under the Credit Agreement) and limitations on liens, indebtedness, guarantees, contingent liabilities, loans and investments, distributions, leases, asset sales, stock repurchases and mergers and acquisitions. As of September 30, 2021, the Company was in compliance with all provisions under the facility. In connection with securing the commitments under the Credit Agreement and the April 20, 2018 and October 1, 2020 amendments to the Credit Agreement, the Company paid a commitment fee and incurred deferred financing costs totaling $752,000, which were capitalized and are being amortized as interest expense over the life of the facility. Deferred financing costs of $164,000 and $225,000 (net of amortization) as of September 30, 2021 and December 31, 2020, respectively, are presented as reductions in long-term debt in the Company’s Condensed Consolidated Balance Sheets. As of September 30, 2021 and December 31, 2020, the Company had no outstanding borrowings

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The components of income before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Income before income taxes: Domestic $ 4,644 $ 3,505 $ 12,091 $ 8,858 Foreign 96 521 (547 ) 875 Income before income taxes $ 4,740 $ 4,026 $ 11,544 $ 9,733 The Company has foreign subsidiaries outside the United States, which generate revenues from non-US The provision for income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Current provision: Federal $ 550 $ 799 $ 1,809 $ 1,313 State 133 135 437 321 Foreign 195 214 179 553 Total current provision $ 878 $ 1,148 $ 2,425 $ 2,187 Deferred provision (benefit): Federal 372 (84 ) 659 (177 ) State 105 (15 ) 173 (45 ) Foreign (41 ) (181 ) (140 ) (228 ) Total deferred provision (benefit) 436 (280 ) 692 (450 ) Change in valuation allowance 20 160 89 160 Total provision for income taxes $ 1,334 $ 1,028 $ 3,206 $ 1,897 The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes for the three and nine months ended September 30, 2021 and 2020 were as follows (amounts in thousands): Three Months Ended Three Months Ended Income taxes computed at the federal statutory rate $ 995 21.0 % $ 846 21.0 % State income taxes, net of federal tax benefit 238 5.0 98 2.4 Excess tax benefit from stock options/restricted shares — — (3 ) — Difference in income tax rate on foreign earnings 81 1.7 (73 ) (1.8 ) Change in valuation allowance 20 0.4 160 3.9 $ 1,334 28.1 % $ 1,028 25.5 % Nine Months Ended Nine Months Ended Income taxes computed at the federal statutory rate $ 2,424 21.0 % $ 2,044 21.0 % State income taxes, net of federal tax benefit 619 5.4 454 4.7 Excess tax benefit from stock options/restricted shares (48 ) (0.4 ) (928 ) (9.5 ) Difference in income tax rate on foreign earnings 122 1.1 167 1.7 Change in valuation allowance 89 0.7 160 1.6 $ 3,206 27.8 % $ 1,897 19.5 % We evaluate deferred income taxes quarterly to determine if valuation allowances are required or should be adjusted. GAAP accounting guidance requires us to assess whether valuation allowances should be established against deferred tax assets based on all available evidence, both positive and negative using a “more likely than not” standard. Our assessment considers, among other things, the nature of cumulative losses; forecast of future profitability; the duration of statutory carry-forward periods and tax planning alternatives. At September 30, 2021, our valuation allowance was comprised of balances within locations of Singapore and the United Kingdom. The valuation allowance balances at these locations totaled $268,000 and $179,000 as of September 30, 2021 and December 31, 2020, respectively, and reflect net operating losses which may not be realizable in the future. The IRS’s audit of the Company’s 2018 tax return was completed in third quarter with no adjustment to our original filing. The Company’s Canadian subsidiary for the years 2018 and 2019 are currently under audit.

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	11. Derivative Instruments and Hedging Activities Interest Rate Risk Management Concurrent with the Company’s July 13, 2017 borrowings under its new credit facility, the Company entered into a 44–month interest-rate swap to convert the debt’s variable interest rate to a fixed rate of interest. Under the swap contracts, which matured on April 1, 2021, the Company paid interest at a fixed rate of 1.99% and received interest at a variable rate equal to the daily U.S. LIBOR on an initial notional amount of $15.0 million. Notional amounts were $0 and $8.1 million at September 30, 2021 and December 31, 2020, respectively. These swap contracts have been designated as cash flow hedging instruments and qualified as effective hedges at inception under ASC Topic 815, “Derivatives and Hedging”. These contracts are recognized on the balance sheet at fair value. The effective portion of the changes in fair value on these instruments is recorded in other comprehensive income (loss) and is reclassified into the Consolidated Statements of Operations as interest expense in the same period in which the underlying hedge transaction affects earnings. Changes in the fair value of interest-rate swap contracts deemed ineffective are recognized in the Consolidated Statements of Operations as interest expense. The fair value of the interest-rate swap contracts at September 30, 2021 and December 31, 2020 was $0 and a liability of $35,000, respectively, and is reflected in the Consolidated Balance Sheets as other current liabilities. The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income are as follows (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended September 30, 2021: Interest-Rate Swap Contract $ — Interest Expense $ — Interest Expense $ — For the Nine Months Ended September 30, 2021: Interest-Rate Swap Contract $ 35 Interest Expense $ 34 Interest Expense $ — For the Three Months Ended September 30, 2020: Interest-Rate Swap Contract $ 39 Interest Expense $ (40 ) Interest Expense $ — For the Nine Months Ended September 30, 2020: Interest-Rate Swap Contract $ (29 ) Interest Expense $ (82 ) Interest Expense $ — Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): September 30, 2021 December 31, 2020 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current $ — Other Current $ 35 The estimated amount of pretax income as of September 30, 2021 that is expected to be reclassified from other comprehensive income into earnings within the next 12 months is $0.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	12. Fair Value Measurements The Company has adopted the provisions of ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), related to certain financial and nonfinancial assets and liabilities. ASC 820 establishes the authoritative definition of fair value; sets out a framework for measuring fair value; and expands the required disclosures about fair value measurements. The valuation techniques required by ASC 820 are based on observable and unobservable inputs using the following three-tier hierarchy: • Level 1—Inputs are observable quoted prices (unadjusted) in active markets for identical assets and liabilities. • Level 2—Inputs are observable, other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are directly or indirectly observable in the marketplace. • Level 3—Inputs are unobservable that are supported by little or no market activity. At September 30, 2021 and December 31, 2020, the Company carried the following financial assets (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of September 30, 2021 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ — $ — $ — Contingent Consideration Liabilities $ — $ — $ (900 ) $ (900 ) Fair Value as of December 31, 2020 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ (35 ) $ — $ (35 ) Contingent Consideration Liabilities $ — $ — $ (2,882 ) $ (2,882 ) The fair value of interest-rate swap contracts are based on quoted prices for similar instruments from a commercial bank, and therefore, the fair value measurement is considered to be within Level 2. The fair value of the contingent consideration liability was estimated by utilizing a probability weighted simulation model to determine the fair value of contingent consideration, and therefore, the fair value measurement is considered to be within Level 3. In 2020, the Company incurred a $2.9 million contingent consideration liability related to the AmberLeaf acquisition. During the nine months ended September 30, 2021, the Company revalued the contingent consideration liability related to the AmberLeaf acquisition after determining that relevant conditions for payment of such liabilities were unlikely to be fully satisfied. The revaluation resulted in a $2.0 million reduction to the contingent consideration liability. The following table provides information regarding changes in the Company’s contingent consideration liability for the periods ended September 30, 2021 and December 31, 2020. Nine Months Ended Twelve Months Ended (Amounts in thousands) Beginning balance $ 2,882 $ — Contingent consideration liability incurred — 2,882 Payments made — — Revaluations (1,982 ) — Ending balance $ 900 $ 2,882

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Shareholders' Equity	13. Shareholders’ Equity The Company purchases shares to satisfy employee tax obligations related to its Stock Incentive Plan. The Company did not purchase any shares during the nine months ended September 30, 2021 and 2020.

Earnings Per Share

Earnings Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Earnings Per Share	14. Earnings Per Share The computation of basic earnings per share is based on the Company’s net income divided by the weighted average number of common shares outstanding. Diluted earnings per share reflect the potential dilution that could occur if outstanding stock options were exercised. The dilutive effect of stock options was calculated using the treasury stock method. For the three and nine months ended September 30, 2021, there were 270,000 anti-dilutive stock options excluded from the computation of diluted earnings per share. For the three months and nine months ended September 30, 2020, there were no anti-dilutive stock options excluded from the computation of diluted earnings per share.

Business Segments and Geographi

Business Segments and Geographic Information	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Business Segments and Geographic Information	15. Business Segments and Geographic Information Our reporting segments are: 1) Data and Analytics Services; and 2) IT Staffing Services. The Data and Analytics Services segment was acquired through the July 13, 2017 acquisition of the services division of Canada-based InfoTrellis, Inc. This segment is a project-based consulting services business with specialized capabilities in data management and analytics. The business is marketed as Mastech InfoTrellis and utilizes a dedicated sales team with deep subject matter expertise. Mastech InfoTrellis has offices in Atlanta, Toronto, London, Dublin and Singapore, and a global delivery center in Chennai, India. Project-based delivery reflects a combination of on-site The IT Staffing Services segment offers staffing services in digital and mainstream technologies and uses digital methods to enhance organizational learning. These services are marketed using a common sales force and delivered via our domestic and global recruitment centers. While the vast majority of our assignments are based on time and materials, we do have the capabilities to deliver our digital transformation services on a fixed price basis. Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Revenues: Data and analytics services $ 10,523 $ 7,176 $ 28,267 $ 21,308 IT staffing services 49,008 40,207 134,697 124,083 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391 Gross Margin %: Data and analytics services 51.6 % 55.9 % 48.2 % 51.7 % IT staffing services 22.8 % 22.6 % 22.4 % 22.1 % Total gross margin % 27.9 % 27.6 % 26.8 % 26.5 % Segment operating income: Data and analytics services $ 1,851 $ 1,579 $ 3,014 $ 3,661 IT staffing services 3,916 3,294 9,537 8,644 Subtotal 5,767 4,873 12,551 12,305 Amortization of acquired intangible assets (792 ) (656 ) (2,378 ) (1,998 ) Revaluation of contingent consideration liability — — 1,982 — Interest expenses and other, net (235 ) (191 ) (611 ) (574 ) Income before income taxes $ 4,740 $ 4,026 $ 11,544 $ 9,733 Below is a reconciliation of segment total assets to consolidated total assets: September 30, December 31, (Amounts in thousands) Total assets: Data and analytics services $ 58,356 $ 55,792 IT staffing services 56,726 46,254 Total assets $ 115,082 $ 102,046 Below is geographic information related to our revenues from external customers: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) United States $ 57,682 $ 46,445 $ 157,156 $ 142,572 Canada 988 768 3,270 2,363 India and Other 861 170 2,538 456 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391

Related-Party Transaction

Related-Party Transaction	9 Months Ended
	Sep. 30, 2021
Related Party Transactions [Abstract]
Related-Party Transaction	16. Related-Party Transaction During the third quarter of 2021, we purchased cybersecurity software licenses from CrowdStrike, Inc. for $98,000. One of our Board members is a Board member of CrowdStrike Inc. The purchase was completed as an arm’s length transaction.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	17. Recently Issued Accounting Standards Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, In March 2020, the FASB issued ASU 2020-04, A variety of proposed or otherwise potential accounting standards are currently under consideration by standard-setting organizations and certain regulatory agencies. Because of the tentative and preliminary nature of such proposed standards, management has not yet determined the effect, if any that the implementation of such proposed standards would have on the Company’s consolidated financial statements.

Description of Business and B_2

Description of Business and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation References in this Quarterly Report on Form 10-Q
Description of Business	Description of Business We are a provider of Digital Transformation IT Services to mostly large and medium-sized Our portfolio of offerings includes data management and analytics services; digital learning services; and IT staffing services. Reflective of our 2017 acquisition of the services division of Canada-based InfoTrellis, Inc., we have added specialized capabilities in delivering data and analytics services to our customers globally. This business offers project-based consulting services in the areas of data management, data engineering and data science, with such services delivered using on-site Our IT staffing business combines technical expertise with business process experience to deliver a broad range of staffing services in digital and mainstream technologies. Our digital technologies include data management, analytics, cloud, mobility, social and artificial intelligence. We work with businesses and institutions with significant IT spending and recurring staffing service needs. We also support smaller organizations with their “project focused” temporary IT staffing requirements. The COVID-19 roll-out
Accounting Principles	Accounting Principles The accompanying Financial Statements have been prepared by management in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments, consisting principally of normal recurring adjustments, considered necessary for a fair presentation have been included. The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Financial Statements and the accompanying notes. Actual results could differ from these estimates. These Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2020, included in our Annual Report on Form 10-K
Principles of Consolidation	Principles of Consolidation The Financial Statements include the accounts of the Company and its wholly-owned subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.
Critical Accounting Policies	Critical Accounting Policies Please refer to Note 1 “Summary of Significant Accounting Policies” of the Consolidated Financial Statements and “Management’s Discussion and Analysis of Financial Condition and Results of Operations–Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K
Segment Reporting	Segment Reporting The Company has two reportable segments, in accordance with Accounting Standards Committee (“ASC”) Topic 280 “Disclosures About Segments of an Enterprise and Related Information”: Data and Analytics Services and IT Staffing Services.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
	Sep. 30, 2021
Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment	The following table depicts the disaggregation of our revenues by contract type and operating segment: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Data and Analytics Services Segment Time-and-material $ 6,021 $ 4,140 $ 17,792 $ 11,952 Fixed-price Contracts 4,502 3,036 10,475 9,356 Subtotal Data and Analytics Services $ 10,523 $ 7,176 $ 28,267 $ 21,308 IT Staffing Services Segment Time-and-material $ 49,008 $ 40,207 $ 134,697 $ 124,083 Fixed-price Contracts — — — — Subtotal IT Staffing Services $ 49,008 $ 40,207 $ 134,697 $ 124,083 Total Revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391
Summary of Revenue from External Customers	The following table presents our revenue from external customers disaggregated by geography, based on the work location of our customers: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) United States $ 57,682 $ 46,445 $ 157,156 $ 142,572 Canada 988 768 3,270 2,363 India and Other 861 170 2,538 456 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391

Business Combinations (Tables)

Business Combinations (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combinations [Abstract]
Summary of Fair Value of Consideration for Acquired Business	The following table summarizes the fair value of consideration for the acquired business on the October 1, 2020 closing date: (in thousands) Amounts Cash purchase price at closing $ 9,664 Working capital adjustments — Estimated payout of contingent consideration (1) 2,882 Total Fair Value of Consideration $ 12,546 (1) Based on a valuation conducted by an independent third party, the fair value of contingent consideration at the closing date was determined to be $2,882,000. During the three month period ended June 30, 2021, the Company revalued the contingent consideration liability related to the AmberLeaf acquisition after determining that relevant conditions for payment of such liabilities were unlikely to be fully satisfied. The revaluation resulted in a $2.0 million reduction to the contingent consideration liability.
Schedule of Sources of Funds in Business Acquisition	The cash purchase price at closing was paid with funds obtained from the following sources: (in thousands) Amounts Cash balances on hand $ — Increase in term loan debt facility 10,000 Revolving line of credit (336 ) Cash Paid at Closing $ 9,664
Schedule of Fair Value of Net Assets Acquired	The valuation of net assets acquired is as follows: (in thousands) Amounts Cash on hand $ 319 Working capital assets, net of liabilities 1,153 Identifiable intangible assets: Client relationships 2,970 Covenant not-to-compete 440 Trade name 490 Technology 770 Total identifiable intangible assets 4,670 Goodwill 6,404 Net Assets Acquired $ 12,546
Summary of Unaudited Pro Forma Results	The following reflects the Company’s unaudited pro forma results had the results of AmberLeaf been included for all periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Amounts in thousands, except per share data) Revenue $ 59,531 $ 50,281 $ 162,964 $ 154,132 Net income $ 3,406 $ 3,460 $ 8,338 $ 9,042 Earnings per share—diluted $ .28 $ .29 $ .69 $ .76

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets, net (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Components of Identifiable Intangible assets	The Company is amortizing the identifiable intangible assets on a straight-line basis over estimated average lives ranging from 3 to 12 years. Identifiable intangible assets were comprised of the following as of September 30, 2021 and December 31, 2020: As of September 30, 2021 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 4,194 $ 3,805 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 6,094 13,547 Covenant-not-to-compete 5 1,201 728 473 Trade name 5 1,711 1,126 585 Technology 7 1,979 837 1,142 Total Intangible Assets $ 33,099 $ 13,547 $ 19,552 As of December 31, 2020 (Amounts in thousands) Amortization Gross Carrying Accumulative Net Carrying IT Staffing Services: Client relationships 12 $ 7,999 $ 3,694 $ 4,305 Covenant-not-to-compete 5 319 319 — Trade name 3 249 249 — Data and Analytics Services: Client relationships 12 19,641 4,866 14,775 Covenant-not-to-compete 5 1,201 548 653 Trade name 5 1,711 869 842 Technology 7 1,979 624 1,355 Total Intangible Assets $ 33,099 $ 11,169 $ 21,930
Schedule of Estimated Amortization Expense	The estimated aggregate amortization expense for intangible assets for the years ending December 31, 2021 through 2025 is as follows: Years Ended December 31, 2021 2022 2023 2024 2025 (Amounts in thousands) Amortization expense $ 3,168 $ 2,987 $ 2,772 $ 2,693 $ 2,553

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Summary of Balance Sheet classification of lease assets and related lease liabilities	The following table summarizes the balance sheet classification of the lease assets and related lease liabilities: September 30, 2021 December 31, 2020 (Amounts in thousands) Assets: Long-term operating lease right-of-use $ 5,229 $ 3,286 Liabilities: Short-term operating lease liability $ 1,494 $ 1,079 Long-term operating lease liability 4,052 2,325 Total Liabilities $ 5,546 $ 3,404
Schedule of Minimum Future Rental Payments	Future minimum rental payments for office facilities and equipment under the Company’s noncancelable operating leases are as follows: Amount as of (in thousands) 2021 (For remainder of year) $ 426 2022 1,689 2023 1,642 2024 901 2025 630 Thereafter 757 Total 6,045 Less: Imputed interest (499 ) Present value of operating lease liabilities $ 5,546

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Components of Income Before Income Taxes	The components of income before income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Income before income taxes: Domestic $ 4,644 $ 3,505 $ 12,091 $ 8,858 Foreign 96 521 (547 ) 875 Income before income taxes $ 4,740 $ 4,026 $ 11,544 $ 9,733
Provision for Income Taxes	The provision for income taxes, as shown in the accompanying Financial Statements, consisted of the following for the three and nine months ended September 30, 2021 and 2020: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Current provision: Federal $ 550 $ 799 $ 1,809 $ 1,313 State 133 135 437 321 Foreign 195 214 179 553 Total current provision $ 878 $ 1,148 $ 2,425 $ 2,187 Deferred provision (benefit): Federal 372 (84 ) 659 (177 ) State 105 (15 ) 173 (45 ) Foreign (41 ) (181 ) (140 ) (228 ) Total deferred provision (benefit) 436 (280 ) 692 (450 ) Change in valuation allowance 20 160 89 160 Total provision for income taxes $ 1,334 $ 1,028 $ 3,206 $ 1,897
Reconciliation of Income Taxes	The reconciliation of income taxes computed using the statutory U.S. income tax rate and the provision for income taxes for the three and nine months ended September 30, 2021 and 2020 were as follows (amounts in thousands): Three Months Ended Three Months Ended Income taxes computed at the federal statutory rate $ 995 21.0 % $ 846 21.0 % State income taxes, net of federal tax benefit 238 5.0 98 2.4 Excess tax benefit from stock options/restricted shares — — (3 ) — Difference in income tax rate on foreign earnings 81 1.7 (73 ) (1.8 ) Change in valuation allowance 20 0.4 160 3.9 $ 1,334 28.1 % $ 1,028 25.5 % Nine Months Ended Nine Months Ended Income taxes computed at the federal statutory rate $ 2,424 21.0 % $ 2,044 21.0 % State income taxes, net of federal tax benefit 619 5.4 454 4.7 Excess tax benefit from stock options/restricted shares (48 ) (0.4 ) (928 ) (9.5 ) Difference in income tax rate on foreign earnings 122 1.1 167 1.7 Change in valuation allowance 89 0.7 160 1.6 $ 3,206 27.8 % $ 1,897 19.5 %

Derivative Instruments and He_2

Derivative Instruments and Hedging Activities (Tables)	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Effect of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income	The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income are as follows (in thousands): Derivatives in ASC Topic 815 Cash Flow Hedging Relationships Amount of Location of Amount of Location of Amount of (Effective Portion) (Effective Portion) (Effective Portion) (Ineffective Portion/Amounts excluded from effectiveness testing) For the Three Months Ended September 30, 2021: Interest-Rate Swap Contract $ — Interest Expense $ — Interest Expense $ — For the Nine Months Ended September 30, 2021: Interest-Rate Swap Contract $ 35 Interest Expense $ 34 Interest Expense $ — For the Three Months Ended September 30, 2020: Interest-Rate Swap Contract $ 39 Interest Expense $ (40 ) Interest Expense $ — For the Nine Months Ended September 30, 2020: Interest-Rate Swap Contract $ (29 ) Interest Expense $ (82 ) Interest Expense $ —
Information on Location and Amounts of Derivative Fair Values in Consolidated Balance Sheets	Information on the location and amounts of derivative fair values in the Condensed Consolidated Balance Sheets (in thousands): September 30, 2021 December 31, 2020 Derivative Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value Interest-Rate Swap Contracts Other Current $ — Other Current $ 35

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Summary of Financial Assets and (Liabilities) at Fair Value Measured on Recurring Basis	At September 30, 2021 and December 31, 2020, the Company carried the following financial assets (liabilities) at fair value measured on a recurring basis (in thousands): Fair Value as of September 30, 2021 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ — $ — $ — Contingent Consideration Liabilities $ — $ — $ (900 ) $ (900 ) Fair Value as of December 31, 2020 (Amounts in thousands) Level 1 Level 2 Level 3 Total Interest-Rate Swap Contracts $ — $ (35 ) $ — $ (35 ) Contingent Consideration Liabilities $ — $ — $ (2,882 ) $ (2,882 )
Schedule of Changes in Contingent Consideration Liability	The following table provides information regarding changes in the Company’s contingent consideration liability for the periods ended September 30, 2021 and December 31, 2020. Nine Months Ended Twelve Months Ended (Amounts in thousands) Beginning balance $ 2,882 $ — Contingent consideration liability incurred — 2,882 Payments made — — Revaluations (1,982 ) — Ending balance $ 900 $ 2,882

Business Segments and Geograp_2

Business Segments and Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Summary of Operating Segments	Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) Revenues: Data and analytics services $ 10,523 $ 7,176 $ 28,267 $ 21,308 IT staffing services 49,008 40,207 134,697 124,083 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391 Gross Margin %: Data and analytics services 51.6 % 55.9 % 48.2 % 51.7 % IT staffing services 22.8 % 22.6 % 22.4 % 22.1 % Total gross margin % 27.9 % 27.6 % 26.8 % 26.5 % Segment operating income: Data and analytics services $ 1,851 $ 1,579 $ 3,014 $ 3,661 IT staffing services 3,916 3,294 9,537 8,644 Subtotal 5,767 4,873 12,551 12,305 Amortization of acquired intangible assets (792 ) (656 ) (2,378 ) (1,998 ) Revaluation of contingent consideration liability — — 1,982 — Interest expenses and other, net (235 ) (191 ) (611 ) (574 ) Income before income taxes $ 4,740 $ 4,026 $ 11,544 $ 9,733
Summary of Assets, Depreciation and Amortization and Capital Expenditures by Segment	Below is a reconciliation of segment total assets to consolidated total assets: September 30, December 31, (Amounts in thousands) Total assets: Data and analytics services $ 58,356 $ 55,792 IT staffing services 56,726 46,254 Total assets $ 115,082 $ 102,046
Summary of Revenue from External Customers and Long-lived Assets	Below is geographic information related to our revenues from external customers: Three Months Ended Nine Months Ended 2021 2020 2021 2020 (Amounts in thousands) (Amounts in thousands) United States $ 57,682 $ 46,445 $ 157,156 $ 142,572 Canada 988 768 3,270 2,363 India and Other 861 170 2,538 456 Total revenues $ 59,531 $ 47,383 $ 162,964 $ 145,391

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Additional Information (Detail) - Agreement	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Percentage of billing expense revenues	2.00%
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | CGI [Member]
Disaggregation of Revenue [Line Items]
Percentage of total revenues	14.60%	16.60%	14.80%	14.80%
Number of customers	2	1	1	1
Sales Revenue Net [Member] | Revenue from Rights Concentration Risk [Member] | Accenture PLC [Member]
Disaggregation of Revenue [Line Items]
Percentage of total revenues	10.40%
Number of customers	2
Top Ten Customers [Member]
Disaggregation of Revenue [Line Items]
Revenue percentage of total revenue	49.00%	51.00%	48.00%	48.00%
Data and Analytics Services [Member]
Disaggregation of Revenue [Line Items]
Percent of revenue from services			100.00%

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Summary of Disaggregation of Our Revenues by Contract Type and Operating Segment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	$ 59,531	$ 47,383	$ 162,964	$ 145,391
Data and Analytics Services [Member]
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	10,523	7,176	28,267	21,308
Data and Analytics Services [Member] | Time-and-Material Contract [Member]
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	6,021	4,140	17,792	11,952
Data and Analytics Services [Member] | Fixed-Price Contract [Member]
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	4,502	3,036	10,475	9,356
IT Staffing Services [Member]
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	49,008	40,207	134,697	124,083
IT Staffing Services [Member] | Time-and-Material Contract [Member]
Disaggregation of Revenue [Line Items]
Revenues by contract type and operating segment	$ 49,008	$ 40,207	$ 134,697	$ 124,083

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Summary of Revenue from External Customers (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue from External Customer [Line Items]
Total revenues	$ 59,531	$ 47,383	$ 162,964	$ 145,391
United States [Member]
Revenue from External Customer [Line Items]
Total revenues	57,682	46,445	157,156	142,572
Canada [Member]
Revenue from External Customer [Line Items]
Total revenues	988	768	3,270	2,363
India and Other [Member]
Revenue from External Customer [Line Items]
Total revenues	$ 861	$ 170	$ 2,538	$ 456

Business Combinations - Additio

Business Combinations - Additional Information (Detail) - USD ($)	Oct. 01, 2020	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Increase in Credit Facility	$ 15,000,000
Revenues		$ 59,531,000			$ 47,383,000			$ 162,964,000	$ 145,391,000
Net income (loss)		3,406,000	$ 3,738,000	$ 1,194,000	$ 2,998,000	$ 2,969,000	$ 1,869,000	8,338,000	$ 7,836,000
Revolving Line of Credit [Member]
Business Acquisition [Line Items]
Credit agreement provides for total aggregate commitment	30,000,000
Term Loan Facility [Member]
Business Acquisition [Line Items]
Credit agreement provides for total aggregate commitment	17,500,000
Maximum [Member] | Revolving Line of Credit [Member]
Business Acquisition [Line Items]
Increase in Credit Facility	7,500,000
Maximum [Member] | Term Loan Facility [Member]
Business Acquisition [Line Items]
Increase in Credit Facility	$ 10,000,000
Amber Leaf Partners Inc [Member]
Business Acquisition [Line Items]
Business acquisition, description	On October 1, 2020, Mastech Digital, Inc., through its wholly-owned subsidiary Mastech Digital Data, Inc., acquired all of the outstanding shares of AmberLeaf Partners, Inc. (“AmberLeaf”). Under the terms of the Share Purchase Agreement executed in connection with the AmberLeaf acquisition (the “Purchase Agreement”)
Cash consideration	$ 9,664,000
Contingent consideration in deferred cash payments	$ 4,500,000
Transaction costs related to acquisition										$ 650,000
Write off of Deferred Finance Costs										$ 185,000
Revenues		1,900,000						5,700,000
Net income (loss)		$ 300,000						$ 400,000

Business Combinations - Summary

Business Combinations - Summary of Fair Value of Consideration for Acquired Business (Detail) - USD ($) $ in Thousands	Oct. 01, 2020	Sep. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Estimated payout of contingent consideration		$ 0	$ 2,882
Amber Leaf Partners Inc [Member]
Business Acquisition [Line Items]
Cash purchase price at closing	$ 9,664
Working capital adjustments
Estimated payout of contingent consideration	2,882
Total Fair Value of Consideration	$ 12,546

Business Combinations - Summa_2

Business Combinations - Summary of Fair Value of Consideration for Acquired Business (Parenthetical) (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Oct. 01, 2020
Business Acquisition [Line Items]
Fair value of contingent consideration	$ 0	$ 2,882
Change in contingent consideration liability	(1,982)	$ 0
Amber Leaf Partners Inc [Member]
Business Acquisition [Line Items]
Fair value of contingent consideration			$ 2,882
Change in contingent consideration liability	$ 2,000

Business Combinations - Summa_3

Business Combinations - Summary of Source of Funds (Detail) $ in Thousands	Oct. 01, 2020USD ($)
Business Acquisition [Line Items]
Increase in term loan debt facility	$ 15,000
Amber Leaf Partners Inc [Member]
Business Acquisition [Line Items]
Cash paid at Closing	9,664
Amber Leaf Partners Inc [Member] | Term Loan Debt Facility [Member]
Business Acquisition [Line Items]
Increase in term loan debt facility	10,000
Amber Leaf Partners Inc [Member] | Revolving Line of Credit [Member]
Business Acquisition [Line Items]
Revolving line of credit	$ (336)

Business Combinations - Schedul

Business Combinations - Schedule of Valuation of Net Assets Acquired (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Oct. 01, 2020
Identifiable intangible assets:
Goodwill	$ 32,510	$ 32,510
Amber Leaf Partners Inc [Member]
Business Acquisition [Line Items]
Cash on hand			$ 319
Working capital assets, net of liabilities			1,153
Identifiable intangible assets:
Identifiable intangible assets			4,670
Goodwill			6,404
Net Assets Acquired			12,546
Amber Leaf Partners Inc [Member] | Client Relationships [Member]
Identifiable intangible assets:
Identifiable intangible assets			2,970
Amber Leaf Partners Inc [Member] | Covenant Not-to-Compete [Member]
Identifiable intangible assets:
Identifiable intangible assets			440
Amber Leaf Partners Inc [Member] | Trade Name [Member]
Identifiable intangible assets:
Identifiable intangible assets			490
Amber Leaf Partners Inc [Member] | Technology [Member]
Identifiable intangible assets:
Identifiable intangible assets			$ 770

Business Combinations - Summa_4

Business Combinations - Summary of Unaudited Pro Forma Results (Detail) - Amber Leaf Partners Inc [Member] - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Revenue	$ 59,531	$ 50,281	$ 162,964	$ 154,132
Net income	$ 3,406	$ 3,460	$ 8,338	$ 9,042
Earnings per share-diluted	$ 0.28	$ 0.29	$ 0.69	$ 0.76

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2018	Dec. 31, 2020	Oct. 01, 2020	Jul. 13, 2017	Jun. 15, 2015
Goodwill and Intangible Assets [Line Items]
Goodwill	$ 32,510		$ 32,510			$ 32,510
Amortization expense	$ 792	$ 656	$ 2,378	$ 1,998
Hudson IT [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill									$ 8,400
Info Trellis Inc [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill								$ 27,400
Goodwill impairment					$ 9,700
Amber Leaf Partners Inc [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill							$ 6,404

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Components of Identifiable Intangible assets (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Intangible Assets, Accumulated Amortization	$ 13,547	$ 11,169
Total Intangible Assets, Gross Carrying Value	33,099	33,099
Total Intangible Assets, Net Carrying Value	$ 19,552	$ 21,930
Client Relationships [Member] | IT Staffing Services [Member]
Amortization Period (In Years)	12 years	12 years
Intangible Assets, Gross Carrying Value	$ 7,999	$ 7,999
Intangible Assets, Accumulated Amortization	4,194	3,694
Intangible Assets, Net Carrying Value	$ 3,805	$ 4,305
Client Relationships [Member] | Data and Analytics Services [Member]
Amortization Period (In Years)	12 years	12 years
Intangible Assets, Gross Carrying Value	$ 19,641	$ 19,641
Intangible Assets, Accumulated Amortization	6,094	4,866
Intangible Assets, Net Carrying Value	$ 13,547	$ 14,775
Covenant Not-to-Compete [Member] | IT Staffing Services [Member]
Amortization Period (In Years)	5 years	5 years
Intangible Assets, Gross Carrying Value	$ 319	$ 319
Intangible Assets, Accumulated Amortization	$ 319	$ 319
Covenant Not-to-Compete [Member] | Data and Analytics Services [Member]
Amortization Period (In Years)	5 years	5 years
Intangible Assets, Gross Carrying Value	$ 1,201	$ 1,201
Intangible Assets, Accumulated Amortization	728	548
Intangible Assets, Net Carrying Value	$ 473	$ 653
Trade Name [Member] | IT Staffing Services [Member]
Amortization Period (In Years)	3 years	3 years
Intangible Assets, Gross Carrying Value	$ 249	$ 249
Intangible Assets, Accumulated Amortization	$ 249	$ 249
Trade Name [Member] | Data and Analytics Services [Member]
Amortization Period (In Years)	5 years	5 years
Intangible Assets, Gross Carrying Value	$ 1,711	$ 1,711
Intangible Assets, Accumulated Amortization	1,126	869
Intangible Assets, Net Carrying Value	$ 585	$ 842
Technology [Member] | Data and Analytics Services [Member]
Amortization Period (In Years)	7 years	7 years
Intangible Assets, Gross Carrying Value	$ 1,979	$ 1,979
Intangible Assets, Accumulated Amortization	837	624
Intangible Assets, Net Carrying Value	$ 1,142	$ 1,355

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets, net - Schedule of Estimated Amortization Expense (Detail) $ in Thousands	Dec. 31, 2021USD ($)
Intangible Liability Disclosure [Abstract]
Estimated aggregate amortization expense for year ending 2021	$ 3,168
Estimated aggregate amortization expense for year ending 2022	2,987
Estimated aggregate amortization expense for year ending 2023	2,772
Estimated aggregate amortization expense for year ending 2024	2,693
Estimated aggregate amortization expense for year ending 2025	$ 2,553

Leases - Additional Information

Leases - Additional Information (Detail) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)ft²	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)ft²	Sep. 30, 2020USD ($)	Apr. 01, 2021ft²
Square feet of office space | ft²	97,000		97,000		35,356
Average initial lease term	4 years		4 years
Discount rate	4.20%		4.20%
Operating leases, rent expense, net	$ 0.4	$ 0.4	$ 1.3	$ 1.2
Total lease payments	0.4	0.4	1.1	1.2
Lease obligation incurred	$ 0	$ 0	$ 3.1	$ 0.2
INDIA
Replacement of existing Square feet of Office lease | ft²	19,120		19,120
Minimum [Member]
Lease term range			1 year
Maximum [Member]
Lease term range			5 years 6 months
Weighted Average [Member]
Lease term range			2 years 9 months 18 days

Leases - Summary of Balance She

Leases - Summary of Balance Sheet classification of lease asset and related lease liability (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Assets:
Long-term operating lease right-of-use assets	$ 5,229	$ 3,286
Liabilities:
Short-term operating lease liability	1,494	1,079
Long-term operating lease liability	4,052	2,325
Total Liabilities	$ 5,546	$ 3,404

Leases - Schedule of Future Min

Leases - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
2021 (For remainder of year)	$ 426
2022	1,689
2023	1,642
2024	901
2025	630
Thereafter	757
Total	6,045
Less: Imputed interest	(499)
Present value of operating lease liabilities	$ 5,546	$ 3,404

Employee Benefit Plan - Additio

Employee Benefit Plan - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Matching contributions	$ 0	$ 0	$ 0	$ 0

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	May 15, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares allocated for issuance to directors, officers and key personnel	4,900,000		4,900,000
Number of Options, Granted	0	0	270,000	800,000
Stock-based compensation expense	$ 693,000,000	$ 462,000,000	$ 2,071,000	$ 1,530,000
Strike price | $ / shares			$ 17.65	$ 15.49
Restricted shares granted			11,955	11,475
Fair value estimation			The fair value of the six-month “look-back” option in the Company’s employee stock purchase plans is estimated by adding the fair value of 15% of one share of stock to 85% of the fair value of an option on one share of stock.
Stock Options And Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock issued during period share-based compensation forfeitures	0	1,000	30,239	318,774
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants	524,740		524,740			600,000
Percentage of maximum contribution of salary towards plan					15.00%
Maximum contribution towards plan					$ 25,000
Discount on purchase of common stock			15.00%
Stock Issued during period employee stock ownership plan			14,301	11,735
Employee Stock Purchase Plan [Member] | Fifth Offering Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued, price per share	$ 12.71		$ 12.71
Employee Stock Purchase Plan [Member] | Third Offering Period [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued, price per share		$ 8.97		$ 8.97
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grants	343,000		343,000		613,000
MHH Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock ownership plan (ESOP), compensation expense	$ 25,000,000	$ 21,000,000	$ 106,000,000	$ 58,000,000

Credit Facility - Additional in

Credit Facility - Additional information (Detail) - USD ($)	Oct. 01, 2020	Sep. 30, 2021	Dec. 31, 2020
Line of Credit Facility [Line Items]
Current borrowing capacity under line of credit facility		$ 30,000,000	$ 22,000,000
Deferred financing costs		164,000	225,000
Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	$ 17,500,000
Outstanding borrowings amount		$ 14,200,000	$ 17,500,000
Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	30,000,000
Percentage of eligible accounts receivable			85.00%
Revolving Line of Credit [Member] | United States [Member]
Line of Credit Facility [Line Items]
Percentage of eligible unbilled accounts			60.00%
Revolving Line of Credit [Member] | Canada [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity			$ 10,000,000
Percentage of eligible accounts receivable			85.00%
Percentage of eligible unbilled accounts			60.00%
Revolving Line of Credit [Member] | Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity			$ 5,000,000
Revolving Line of Credit [Member] | Swing Loans [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity			$ 6,000,000
Federal Funds Rate [Member]
Line of Credit Facility [Line Items]
Basis spread on variable rate		0.50%
LIBOR Floor Rate [Member]
Line of Credit Facility [Line Items]
Debt Instrument Percentage Adjusted LIBOR Floor Rate			0.50%
PNC Bank, N.A. [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	47,500,000
Payment of deferred financing costs	752,000
PNC Bank, N.A. [Member] | Term Loan Facility [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	17,500,000
Credit facility, periodic payment	1,100,000
PNC Bank, N.A. [Member] | Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility maximum borrowing capacity	30,000,000
Maximum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility percentage margin over base rate			1.25%
Term loan percentage margin over base rate			2.50%
Revolving credit facility percentage margin adjusted LIBOR rate			2.25%
Term loan percentage margin adjusted LIBOR rate			3.50%
Maximum [Member] | PNC Bank, N.A. [Member] | Revolving Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility additional borrowing capacity upon certain conditions	$ 15,000,000
Minimum [Member]
Line of Credit Facility [Line Items]
Revolving credit facility percentage margin over base rate			0.50%
Term loan percentage margin over base rate			1.75%
Revolving credit facility percentage margin adjusted LIBOR rate			1.50%
Term loan percentage margin adjusted LIBOR rate			2.75%

Income Taxes - Components of In

Income Taxes - Components of Income Before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income before income taxes:
Domestic	$ 4,644	$ 3,505	$ 12,091	$ 8,858
Foreign	96	521	(547)	875
Income before income taxes	$ 4,740	$ 4,026	$ 11,544	$ 9,733

Income Taxes - Provision for In

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Current provision (benefit):
Federal	$ 550	$ 799	$ 1,809	$ 1,313
State	133	135	437	321
Foreign	195	214	179	553
Total current provision (benefit)	878	1,148	2,425	2,187
Deferred provision (benefit):
Federal	372	(84)	659	(177)
State	105	(15)	173	(45)
Foreign	(41)	(181)	(140)	(228)
Total deferred provision (benefit)	436	(280)	692	(450)
Change in valuation allowance	20	160	89	160
Total provision for income taxes	$ 1,334	$ 1,028	$ 3,206	$ 1,897

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income taxes computed at the federal statutory rate, Value	$ 995	$ 846	$ 2,424	$ 2,044
State income taxes, net of federal tax benefit, Value	238	98	619	454
Excess tax benefit from stock options/restricted shares	0	(3)	(48)	(928)
Difference in income tax rate on foreign earnings/other	81	(73)	122	167
Change in valuation allowance	20	160	89	160
Total provision for income taxes	$ 1,334	$ 1,028	$ 3,206	$ 1,897
Income taxes computed at the federal statutory rate	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal tax benefit	5.00%	2.40%	5.40%	4.70%
Excess tax benefit from stock options/restricted shares	0.00%	0.00%	(0.40%)	(9.50%)
Difference in income tax rate on foreign earnings/other	1.70%	(1.80%)	1.10%	1.70%
Change in valuation allowance[Percent]	0.40%	3.90%	0.70%	1.60%
Effective for income tax rate, Total	28.10%	25.50%	27.80%	19.50%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Deferred Tax Liabilities Valuation Allowance	$ 268	$ 179

Derivative Instruments and He_3

Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($)	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Jul. 13, 2017
Interest Rate Swap Contracts [Member]
Derivative [Line Items]
Liability of fair value of the interest rate swap contracts		$ 35,000
Interest Rate Swap Contracts [Member] | Other Current Liabilities [Member]
Derivative [Line Items]
Liability of fair value of the interest rate swap contracts	$ 0	35,000
Interest Rate Risk Management [Member]
Derivative [Line Items]
Notional amount	0	8,100,000
Interest Rate Risk Management [Member] | Interest Rate Swap Contracts [Member]
Derivative [Line Items]
Notional amount			$ 15,000,000
Fixed rate of interest in swap contracts			1.99%
Interest Rate Risk Management [Member] | Interest Rate Swap Contracts [Member] | Other Current Liabilities [Member]
Derivative [Line Items]
Liability of fair value of the interest rate swap contracts	0	$ 35,000
Designated as Hedging Instrument [Member] | Currency Hedge and Interest Rate Swap [Member]
Derivative [Line Items]
Estimated amount of pretax losses from other comprehensive income (loss) during the next 12-months	$ 0

Derivative Instruments and He_4

Derivative Instruments and Hedging Activities - Effect of Derivative Instruments on Consolidated Statements of Operations and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain / (Loss) recognized in OCI on Derivatives		$ 39	$ 35	$ (29)
Interest rate swap contracts [Member] | Cash Flow Hedging Relationships [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain / (Loss) recognized in OCI on Derivatives	$ 0	39	35	(29)
Amount of Gain / (Loss) reclassified from Accumulated OCI to Income	0	(40)	34	(82)
Amount of Gain / (Loss) recognized in Income on Derivatives	$ 0	$ 0	$ 0	$ 0

Derivative Instruments and He_5

Derivative Instruments and Hedging Activities - Information on Location and Amounts of Derivative Fair Values in Consolidated Balance Sheets (Detail) - Interest Rate Swap Contracts [Member] - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Derivative Fair Value Liability		$ 35
Other Current Liabilities [Member]
Derivatives, Fair Value [Line Items]
Derivative Fair Value Liability	$ 0	$ 35

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Line Items]
Change in contingent consideration liability	$ (1,982)	$ 0
Fair value of contingent consideration	0	2,882
AmberLeaf [Member]
Fair Value Disclosures [Line Items]
Change in contingent consideration liability	$ (2,000)
Fair value of contingent consideration		$ 2,900

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets (Liabilities) at Fair Value Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liabilities	$ 0	$ (2,882)
Interest Rate Swap Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial liability		(35)
Contingent Consideration Liabilities	(900)	(2,882)
Level 2 [Member] | Interest Rate Swap Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of financial liability		(35)
Level 3 [Member] | Interest Rate Swap Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration Liabilities	$ (900)	$ (2,882)

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Changes in Contingent Consideration Liability (Detail) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Beginning balance	$ 2,882	$ 0
Contingent consideration liabilities	0	2,882
Payments made	0	0
Revaluation	(1,982)	0
Ending balance	$ 900	$ 2,882

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail) - shares	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Equity, Class of Treasury Stock [Line Items]
Shares purchased to satisfy employee tax obligation	0	0

Earnings per Share - Additional

Earnings per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities not included in computation of earnings per share	270,000	0	270,000	0

Business Segments and Geograp_3

Business Segments and Geographic Information - Summary of Operating Segments (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Revenues	$ 59,531	$ 47,383	$ 162,964	$ 145,391
Total gross margin %	27.90%	27.60%	26.80%	26.50%
Segment operating income	$ 4,975	$ 4,217	$ 12,155	$ 10,307
Amortization of acquired intangible assets	(792)	(656)	(2,378)	(1,998)
Revaluation of contingent consideration liability			1,982		$ 0
Interest expenses and other, net	(235)	(191)	(611)	(574)
Income before income taxes	4,740	4,026	11,544	9,733
Data and analytics services [Member]
Segment Reporting Information [Line Items]
Revenues	$ 10,523	$ 7,176	$ 28,267	$ 21,308
Total gross margin %	51.60%	55.90%	48.20%	51.70%
IT staffing services [Member]
Segment Reporting Information [Line Items]
Revenues	$ 49,008	$ 40,207	$ 134,697	$ 124,083
Total gross margin %	22.80%	22.60%	22.40%	22.10%
Operating Segments [Member]
Segment Reporting Information [Line Items]
Segment operating income	$ 5,767	$ 4,873	$ 12,551	$ 12,305
Operating Segments [Member] | Data and analytics services [Member]
Segment Reporting Information [Line Items]
Segment operating income	1,851	1,579	3,014	3,661
Operating Segments [Member] | IT staffing services [Member]
Segment Reporting Information [Line Items]
Segment operating income	$ 3,916	$ 3,294	$ 9,537	$ 8,644

Business Segments and Geograp_4

Business Segments and Geographic Information - Summary of Assets by Segment (Detail) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 115,082	$ 102,046
Data and analytics services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	58,356	55,792
IT Staffing Services [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Total assets	$ 56,726	$ 46,254

Business Segments and Geograp_5

Business Segments and Geographic Information - Summary of Revenue from External Customers (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenues	$ 59,531	$ 47,383	$ 162,964	$ 145,391
United States [Member]
Segment Reporting Information [Line Items]
Revenues	57,682	46,445	157,156	142,572
Canada [Member]
Segment Reporting Information [Line Items]
Revenues	988	768	3,270	2,363
India and Other [Member]
Segment Reporting Information [Line Items]
Revenues	$ 861	$ 170	$ 2,538	$ 456

Related-Party Transaction - Add

Related-Party Transaction - Additional Information (Detail)	3 Months Ended
	Sep. 30, 2021USD ($)
CrowdStrike Inc [Member]
Related Party Transaction [Line Items]
Related party purchases	$ 98,000