Mastech Digital (NYSEAMERICAN: MHH) reported first-quarter revenue fell 15.0% year over year to $46.8 million, but gross margin improved and the company is seeing some positive signs in the market.

“The first quarter of 2024 showed encouraging signs of market improvements in both of our business segments,” President and CEO Vivek Gupta said in a press release.

“This quarter was the first quarter since the third quarter of 2022 where both of our segments’ clients shifted their spending patterns in a positive direction,” Gupta said. “While there is still more work to be done, we have a more positive outlook on market conditions and our growth opportunities for 2024.”

The Pittsburgh-based IT staffing and solutions provider reported demand for IT staffing rose in the first quarter and its IT staffing billable consultant base rose by 6%. IT staffing revenue rose sequentially, though it was down 15.1% year over year.

Mastech also said activity levels in its data and analytics services segment were “solid” in the first quarter with order bookings totaling $9.6 million — all of which are expected to be recognized as revenue over the next 12 months.

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Share price

Shares in Mastech were up 0.76% to $8.66 as of 11:54 a.m. Eastern time today. They were 15.4% above their 52-week low.