Harte Hanks (HHS) 10-Q14 Nov 242024 Q3 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Sep. 30, 2024	Oct. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
Document Transition Report	false
Entity File Number	001-07120
Entity Registrant Name	HARTE HANKS, INC.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	1 Executive Drive
Entity Address, City or Town	Chelmsford
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01824
Entity Tax Identification Number	74-1677284
City Area Code	512
Local Phone Number	434-1100
Title of 12(b) Security	Common Stock
Trading Symbol	HHS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,288,983
Entity Central Index Key	0000045919
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 5,944	$ 18,364
Accounts receivable (less allowance for doubtful accounts of $54 and $474 at September 30, 2024 and December 31, 2023, respectively)	33,275	34,313
Contract assets and unbilled accounts receivable	9,260	7,935
Prepaid expenses	2,119	1,915
Prepaid income taxes and income tax receivable	1,758	1,758
Other current assets	1,467	928
Total current assets	53,823	65,213
Property, plant and equipment (less accumulated depreciation of $38,845 and $36,533, respectively)	9,310	8,855
Right-of-use assets	22,926	25,417
Other assets
Intangible assets, net	2,280	2,820
Goodwill	1,926	1,926
Deferred tax assets, net	17,128	17,268
Other long-term assets	734	1,258
Total other assets	22,068	23,272
Total assets	108,127	122,757
Current liabilities
Accounts payable and accrued expenses	20,880	23,176
Accrued payroll and related expenses	4,476	5,615
Deferred revenue and customer advances	3,400	3,195
Customer postage and program deposits	1,430	1,815
Other current liabilities	2,995	9,495
Current portion of lease liabilities	3,762	4,815
Total current liabilities	36,943	48,111
Long-term lease liabilities, net of current portion	21,469	23,691
Other long-term liabilities	1,767	1,928
Total liabilities	87,078	102,900
Stockholders’ equity
Common stock, $1 par value, 25,000,000 shares authorized; 12,221,484 shares issued, 7,353,162 and 7,224,718 shares outstanding at September 30, 2024 and December 31, 2023, respectively	12,221	12,221
Additional paid-in capital	125,173	157,889
Retained earnings	817,057	844,920
Less treasury stock, 4,868,322 shares at cost at September 30, 2024 and 4,996,766 shares at cost at December 31, 2023	(916,993)	(951,083)
Accumulated other comprehensive loss	(16,409)	(44,090)
Total stockholders’ equity	21,049	19,857
Total liabilities and stockholders’ equity	108,127	122,757
Qualified Plan
Current liabilities
Pension liabilities	8,931	10,540
Nonqualified Plan
Current liabilities
Pension liabilities	$ 17,968	$ 18,630

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 54	$ 474
Property, plant and equipment, accumulated depreciation	$ 38,845	$ 36,533
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	12,221,484	12,221,484
Common stock, shares outstanding (in shares)	7,353,162	7,224,718
Treasury store shares at cost (in shares)	4,868,322	4,996,766

Condensed Consolidated Statemen

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Revenue	$ 47,630	$ 47,119	$ 138,113	$ 142,001
Operating expenses
Labor	24,176	22,953	70,343	74,084
Production and distribution	14,421	15,378	41,850	43,158
Advertising, selling, general and administrative	5,260	4,922	17,051	16,071
Restructuring expenses	836	0	2,116	0
Depreciation and amortization expense	1,039	952	3,107	3,051
Total operating expenses	45,732	44,205	134,467	136,364
Operating income (loss)	1,898	2,914	3,646	5,637
Other expense, net
Interest expense (income), net	57	1	107	(150)
Pension plan termination charges	0	0	37,505	0
Other expense, net	831	383	2,104	3,760
Total other expense, net	888	384	39,716	3,610
Income (loss) before income taxes	1,010	2,530	(36,070)	2,027
Income tax expense (benefit)	868	1,912	(8,207)	1,620
Net income (loss)	$ 142	$ 618	$ (27,863)	$ 407
Income (loss) per common share
Basic (in dollars per share)	$ 0.02	$ 0.09	$ (3.83)	$ 0.06
Diluted (in dollars per share)	$ 0.02	$ 0.08	$ (3.83)	$ 0.05
Weighted average shares used to compute income (loss) per share
Basic (in shares)	7,324	7,239	7,273	7,340
Diluted (in shares)	7,398	7,314	7,273	7,509
Comprehensive income (loss) net of tax:
Net income (loss)	$ 142	$ 618	$ (27,863)	$ 407
Adjustment to pension liability, net	102	503	29,626	1,421
Foreign currency translation adjustment	(8)	(559)	(1,945)	1,645
Total other comprehensive income (loss), net of tax	94	(56)	27,681	3,066
Comprehensive income (loss)	$ 236	$ 562	$ (182)	$ 3,473

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2022	$ 18,808	$ 12,221	$ 218,411	$ 846,490	$ (1,010,012)	$ (48,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	540		540
Vesting of RSUs	(212)		(21,538)		21,326
Net (loss) income	(791)			(791)
Other comprehensive (loss) income	2,620					2,620
Ending balance at Mar. 31, 2023	20,965	12,221	197,413	845,699	(988,686)	(45,682)
Beginning balance at Dec. 31, 2022	18,808	12,221	218,411	846,490	(1,010,012)	(48,302)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock	(2,400)
Net (loss) income	407
Other comprehensive (loss) income	3,066
Ending balance at Sep. 30, 2023	20,504	12,221	160,213	846,897	(953,591)	(45,236)
Beginning balance at Mar. 31, 2023	20,965	12,221	197,413	845,699	(988,686)	(45,682)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	502		502
Vesting of RSUs	(120)		(10,529)		10,409
Repurchase of common stock	(1,879)				(1,879)
Net (loss) income	580			580
Other comprehensive (loss) income	502					502
Ending balance at Jun. 30, 2023	20,550	12,221	187,386	846,279	(980,156)	(45,180)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	160		160
Vesting of RSUs	(278)		(27,333)		27,055
Repurchase of common stock	(490)				(490)
Net (loss) income	618			618
Other comprehensive (loss) income	(56)					(56)
Ending balance at Sep. 30, 2023	20,504	12,221	160,213	846,897	(953,591)	(45,236)
Beginning balance at Dec. 31, 2023	19,857	12,221	157,889	844,920	(951,083)	(44,090)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	552		552
Vesting of RSUs	(87)		(5,264)		5,177
Net (loss) income	(171)			(171)
Other comprehensive (loss) income	(189)					(189)
Ending balance at Mar. 31, 2024	19,962	12,221	153,177	844,749	(945,906)	(44,279)
Beginning balance at Dec. 31, 2023	19,857	12,221	157,889	844,920	(951,083)	(44,090)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Repurchase of common stock	0
Net (loss) income	(27,863)
Other comprehensive (loss) income	27,681
Ending balance at Sep. 30, 2024	21,049	12,221	125,173	817,057	(916,993)	(16,409)
Beginning balance at Mar. 31, 2024	19,962	12,221	153,177	844,749	(945,906)	(44,279)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	734		734
Vesting of RSUs	(30)		(8,208)		8,178
Net (loss) income	(27,834)			(27,834)
Other comprehensive (loss) income	27,776					27,776
Ending balance at Jun. 30, 2024	20,608	12,221	145,703	816,915	(937,728)	(16,503)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	368		368
Vesting of RSUs	(163)		(20,898)		20,735
Repurchase of common stock	0
Net (loss) income	142			142
Other comprehensive (loss) income	94					94
Ending balance at Sep. 30, 2024	$ 21,049	$ 12,221	$ 125,173	$ 817,057	$ (916,993)	$ (16,409)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash Flows from Operating Activities
Net (loss) income	$ (27,863)	$ 407
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation and amortization expense	3,107	3,051
Stock-based compensation	1,654	1,203
Pension cost (payment), net	31,027	16
Deferred income taxes	(10,254)	(453)
Changes in assets and liabilities:
Accounts receivable and contract assets	(287)	3,816
Prepaid expenses, income tax receivable and other current assets	(79)	4,106
Accounts payable and accrued expenses	(1,989)	(3,785)
Deferred revenue and customer advances	205	1,091
Customer postage and program deposits	(385)	222
Other accrued expenses and liabilities	(2,168)	(3,564)
Net cash (used in) provided by operating activities	(7,032)	6,110
Cash Flows from Investing Activities
Purchases of property, plant and equipment	(3,119)	(1,480)
Proceeds from sale of property, plant and equipment	1	3
Net cash used in investing activities	(3,118)	(1,477)
Cash Flows from Financing Activities
Debt financing costs	0	(6)
Payment of finance leases	(45)	(144)
Repurchase of common stock	0	(2,370)
Treasury stock activities	(280)	(610)
Net cash used in financing activities	(325)	(3,130)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(1,945)	1,421
Net (decrease) increase in cash and cash equivalents and restricted cash	(12,420)	2,924
Cash and cash equivalents and restricted cash at beginning of period	18,864	11,364
Cash and cash equivalents and restricted cash at end of period	6,444	14,288
Supplemental disclosures
Cash (received) paid for interest	(34)	198
Cash paid for (received) income taxes, net	1,194	(3,369)
Non-cash investing and financing activities
Purchases of property, plant and equipment included in accounts payable	1,402	1,935
Cash and cash equivalents	5,944	13,288
Cash held in Escrow account included in other assets	500	1,000
Cash and cash equivalents at end of period	$ 6,444	$ 14,288

Overview and Significant Accoun

Overview and Significant Accounting Policies	9 Months Ended
Overview and Significant Accounting Policies	Sep. 30, 2024
Accounting Policies [Abstract]
Overview and Significant Accounting Policies	Overview and Significant Accounting Policies Background Harte Hanks, Inc. together with its subsidiaries (“Harte Hanks,” “Company,” “we,” “our,” or “us”) is a leading global customer experience company. With offices in North America, Asia-Pacific and Europe, Harte Hanks works with some of the world’s most respected brands. Segment Reporting The Company operates four reportable segments: Marketing Services; Customer Care; Sales Services; and Fulfillment & Logistics Services. Our Chief Executive Officer (“CEO”) is considered to be our chief operating decision maker. Our CEO reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the two financial measures: revenue and operating income. Accounting Principles Our unaudited interim condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 10-K”). Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the Company,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole, as the context may require. Interim Financial Information The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Use of Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. Such estimates include, but are not limited to, estimates related to lease accounting; pension accounting; fair value for purposes of assessing long-lived assets for impairment; revenue recognition; income taxes; stock-based compensation and contingencies. On an ongoing basis, management reviews its estimates and assumptions based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions. Operating Expense Presentation in Condensed Consolidated Statements of Comprehensi ve (Loss) Income The “Labor” line in the Condensed Consolidated Statements of Comprehensive Loss (Income) includes all employee payroll and benefits costs, including stock-based compensation and temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not include any labor, depreciation, or amortization expense. Revenue Recognition We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services based on the relevant contract. We apply the following five-step revenue recognition model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not directly reflected in our revenue. Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized when the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically a set fixed price or rate by transaction occurrence, service provided, time spent, or product delivered. Fair Value of Financial Instruments Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 820, Fair Value Measurements and Disclosures , (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payables, and debt. The fair value of the assets in our funded pension plan is discussed in Note H, Employee Benefit Plans. Leases

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2024
Accounting Policies [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued accounting standards update (“ASU”) 2023-07, which enhances the disclosures required for reportable segments in annual and interim consolidated financial statements. ASU 2023-07 is effective for the Company for annual reporting periods beginning with the fiscal year ending December 31, 2024, and for interim reporting periods beginning in fiscal year 2025. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, which requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The amendments in ASU 2023-09 are effective for the annual periods beginning with the fiscal year ending December 31, 2025. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements. No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the condensed consolidated financial statements.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	9 Months Ended
Revenue from Contracts with Customers	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers Consistent with GAAP, we present sales taxes assessed on revenue-producing transactions on a net basis. Disaggregation of Revenue We disaggregate revenue by four key revenue streams which are aligned with our reportable segments. The nature of the services offered by each key revenue stream is different. The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2024 and 2023 by our four reportable segments and the pattern of revenue recognition: Three Months Ended September 30, 2024 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 7,960 $ 1,090 $ 9,050 Customer Care 13,068 — 13,068 Sales Services 4,205 — 4,205 Fulfillment and Logistics Services 17,644 3,663 21,307 Total Revenues $ 42,877 $ 4,753 $ 47,630 Three Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 9,272 $ 1,319 $ 10,591 Customer Care 11,832 — 11,832 Sales Services 2,166 — 2,166 Fulfillment and Logistics Services 18,625 3,905 22,530 Total Revenues $ 41,895 $ 5,224 $ 47,119 Nine Months Ended September 30, 2024 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 22,408 $ 3,301 $ 25,709 Customer Care 37,894 — 37,894 Sales Services 13,281 — 13,281 Fulfillment and Logistics Services 49,901 11,328 61,229 Total Revenues $ 123,484 $ 14,629 $ 138,113 Nine Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 29,321 $ 3,430 $ 32,751 Customer Care 38,372 — 38,372 Sales Services 7,253 — 7,253 Fulfillment and Logistics Services 52,044 11,581 63,625 Total Revenues $ 126,990 $ 15,011 $ 142,001 Our contracts with customers may consist of multiple performance obligations. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. For most performance obligations, we determine SSP based on the price at which the performance obligation is sold separately. Although uncommon, if the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Further discussion of other performance obligations in each of our major revenue streams follows: Marketing Services Our Marketing Services segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. We create relevancy by leveraging data, insight, and our extensive experience in leading clients as they engage their customers through digital, traditional, and emerging channels. We are known for helping clients build deep customer relationships, create connected customer experiences, and optimize each and every customer touch point in order to deliver desired business outcomes. Most marketing services performance obligations are satisfied over time and often offered on a per project basis. We have concluded that the best approach to measure the progress toward completion of the project-based performance obligations is the input method, which is based on either the costs or labor hours incurred to date depending upon whether costs or labor hours more accurately depict the transfer of value to the customer. Our database solutions are built around centralized marketing databases with services rendered to build custom database, database hosting services, customer or target marketing lists and data processing services. These performance obligations, including services rendered to build a custom database, database hosting services, customer or target marketing lists and data processing services, may be satisfied over time or at a point in time. We provide software as a service (“SaaS”) solutions to host data for customers and have concluded that these solutions are stand-ready obligations to be recognized over time on a monthly basis. Our promise to provide certain data related services meets the over-time recognition criteria because our services do not create an asset with an alternative use, and we have an enforceable right to payment. For performance obligations recognized over time, we choose either the input (i.e., labor hour) or output method (i.e., number of customer records) to measure the progress toward completion depending on the nature of the services provided. Some of our other data-related services do not meet the over-time criteria and are therefore, recognized at a point-in-time, typically upon the delivery of a specific deliverable. Our contracts may include outsourced print production work for our clients. These contracts may include a promise to purchase postage on behalf of our clients. In such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue. Customer Care We deliver customer care services in the United States, Asia, and Europe to provide advanced solutions such as voice, SMS/chat, email, integrated voice response, web self-service, social cloud monitoring, and analytics. Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs. Sales Services Our Sales Services segment enables customers to optimize their go-to-market function by offering a range of outsourced services including sales process optimization, sales play development, inbound lead qualification and outbound sales prospecting. Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs. Fulfillment & Logistics Services Our services, delivered internally and with our partners, include printing, lettershop, advanced mail optimization (including commingling services), logistics and transportation optimization, monitoring and tracking, to support traditional and specialized mailings. Our print and fulfillment centers in Massachusetts and Kansas provide custom kitting services, print on demand, product recall support, trade marketing fulfillment, ecommerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to efficiently and effectively distribute literature and other marketing materials. Most performance obligations offered within this revenue stream are satisfied over time and utilize the input or output method, depending on the nature of the service, to measure progress toward satisfying the performance obligation. For performance obligations where we charge customers a transaction-based fee, we utilize the output method based on the quantities fulfilled. Services provided through our fulfillment centers are typically priced at a per transaction basis and our contracts provide us the right to invoice for services provided and reflects the value to the customer of the services transferred to date. In most cases, we use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their standalone selling prices. Our direct mail business contracts may have included a promise to purchase postage on behalf of our clients; in such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue. Transaction Price Allocated to Future Performance Obligations We have elected to apply certain optional exemptions that limit the disclosure requirements over remaining performance obligations at period end to exclude the performance obligations that have an original expected duration of one year or less, transactions using the “as invoiced” practical expedient, or when a performance obligation is a series and we have allocated the variable consideration directly to the services performed. As of September 30, 2024, we had no transaction prices allocated to unsatisfied or partially satisfied performance obligations. Contract Balances We record a receivable when revenue is recognized prior to invoicing when we have an unconditional right to consideration (only the passage of time is required before payment of that consideration is due) and a contract asset when the right to payment is conditional upon our future performance such as delivery of an additional good or service (e.g. customer contract requires customer’s final acceptance of custom database solution or the delivery of a final marketing strategy presentation before customer payment is required). If invoicing occurs prior to revenue recognition, the unearned revenue is presented on our Condensed Consolidated Balance Sheet as a contract liability, referred to as deferred revenue. The following table summarizes our contract balances as of September 30, 2024 and December 31, 2023: In thousands September 30, 2024 December 31, 2023 Unbilled accounts receivable 8,952 7,677 Contract assets 308 258 Deferred revenue and customer advances 3,400 3,195 Deferred revenue, included in other long-term liabilities 213 294 Revenue recognized during the nine months ended September 30, 2024 from amounts included in deferred revenue at the beginning of the period was approximatel y $2.9 million. Revenue recognized during the nine months ended September 30, 2023 from amounts included in deferred revenue at the beginning of the period was approximately $3.9 million. Costs to Obtain and Fulfill a Contract We recognize an asset for the direct costs incurred to obtain and fulfill our contracts with customers to the extent that we expect to recover these costs and if the benefit is longer than one year. These costs are amortized to expense over the expected period of the benefit in a manner that is consistent with the transfer of the related goods or services to which the asset relates. We impair the asset when recoverability is not anticipated. We capitalized a portion of commission expense, implementation and other costs that represents the cost to obtain a contract. The remaining unamortized contract costs were $0.3 million and $0.6 million as of September 30, 2024 and December 31, 2023, respectively. They are included in other current assets and other assets on our balance sheet. For the periods presented, no impairment was recognized.

Leases

Leases	9 Months Ended
Leases	Sep. 30, 2024
Leases [Abstract]
Leases	Leases We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term lease). Our leases have remaining lease terms of one As of September 30, 2024, assets recorded under finance and operating leases were approximately $0.5 million and $22.4 million, respectively, and accumulated amortization associated with finance leases was $0.2 million. As of December 31, 2023, assets recorded under finance and operating leases were approximately $0.1 million and $25.3 million, respectively, and accumulated amortization associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. There was no impairment of leases during the three and nine months ended September 30, 2024 and 2023 . The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of September 30, 2024 As of December 31, 2023 Operating Leases Finance Leases Total Operating Leases Finance Leases Total R ight-of-use Assets $ 22,392 $ 534 $ 22,926 $ 25,288 $ 129 $ 25,417 Liabilities Current portion of lease liabilities 3,665 97 3,762 4,773 42 4,815 Long-term lease liabilities 21,114 355 21,469 23,687 4 23,691 Total Lease Liabilities $ 24,779 $ 452 $ 25,231 $ 28,460 $ 46 $ 28,506 For the three and nine months ended September 30, 2024 and 2023, the components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, In thousands 2024 2023 2024 2023 Operating lease cost $ 1,314 $ 1,338 $ 3,996 $ 4,160 Finance lease cost: Amortization of right-of-use assets 30 35 61 115 Interest on lease liabilities 9 2 17 6 Total Finance lease cost 39 37 78 121 Variable lease cost 412 537 1,443 1,525 Sublease income (53) (177) (368) (676) Total lease cost, net $ 1,712 $ 1,735 $ 5,149 $ 5,130 Other information related to leases was as follows: In thousands Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,464 $ 9,525 Operating cash flows from finance leases 15 6 Financing cash flows from finance leases 79 144 Weighted Average Remaining Lease term Operating leases 6.6 5.6 Finance leases 4.5 1.3 Weighted Average Discount Rate Operating leases 5.73 % 3.56 % Finance leases 8.15 % 7.04 % The maturities of the Company’s finance and operating lease liabilities as of September 30, 2024 are as follows: In thousands Operating Leases Finance Leases Year Ending December 31, Remainder of 2024 $ 1,398 $ 35 2025 4,656 120 2026 4,232 117 2027 4,198 117 2028 4,094 117 2029 and beyond 11,397 32 Total future minimum lease payments 29,975 538 Less: imputed interest 5,196 86 Total lease liabilities $ 24,779 $ 452
Leases	Leases We have operating and finance leases for corporate and business offices, service facilities, call centers and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet, unless the arrangement includes an option to purchase the underlying asset, or an option to renew the arrangement, that we are reasonably certain to exercise (short-term lease). Our leases have remaining lease terms of one As of September 30, 2024, assets recorded under finance and operating leases were approximately $0.5 million and $22.4 million, respectively, and accumulated amortization associated with finance leases was $0.2 million. As of December 31, 2023, assets recorded under finance and operating leases were approximately $0.1 million and $25.3 million, respectively, and accumulated amortization associated with finance leases was $0.1 million. Operating lease right of use assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The discount rate used to determine the commencement date present value of lease payment is the interest rate implicit in the lease, or when that is not readily determinable, we utilize our incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. There was no impairment of leases during the three and nine months ended September 30, 2024 and 2023 . The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of September 30, 2024 As of December 31, 2023 Operating Leases Finance Leases Total Operating Leases Finance Leases Total R ight-of-use Assets $ 22,392 $ 534 $ 22,926 $ 25,288 $ 129 $ 25,417 Liabilities Current portion of lease liabilities 3,665 97 3,762 4,773 42 4,815 Long-term lease liabilities 21,114 355 21,469 23,687 4 23,691 Total Lease Liabilities $ 24,779 $ 452 $ 25,231 $ 28,460 $ 46 $ 28,506 For the three and nine months ended September 30, 2024 and 2023, the components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, In thousands 2024 2023 2024 2023 Operating lease cost $ 1,314 $ 1,338 $ 3,996 $ 4,160 Finance lease cost: Amortization of right-of-use assets 30 35 61 115 Interest on lease liabilities 9 2 17 6 Total Finance lease cost 39 37 78 121 Variable lease cost 412 537 1,443 1,525 Sublease income (53) (177) (368) (676) Total lease cost, net $ 1,712 $ 1,735 $ 5,149 $ 5,130 Other information related to leases was as follows: In thousands Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,464 $ 9,525 Operating cash flows from finance leases 15 6 Financing cash flows from finance leases 79 144 Weighted Average Remaining Lease term Operating leases 6.6 5.6 Finance leases 4.5 1.3 Weighted Average Discount Rate Operating leases 5.73 % 3.56 % Finance leases 8.15 % 7.04 % The maturities of the Company’s finance and operating lease liabilities as of September 30, 2024 are as follows: In thousands Operating Leases Finance Leases Year Ending December 31, Remainder of 2024 $ 1,398 $ 35 2025 4,656 120 2026 4,232 117 2027 4,198 117 2028 4,094 117 2029 and beyond 11,397 32 Total future minimum lease payments 29,975 538 Less: imputed interest 5,196 86 Total lease liabilities $ 24,779 $ 452

Convertible Preferred Stock and

Convertible Preferred Stock and Share Repurchase Program	9 Months Ended
Convertible Preferred Stock and Share Repurchase Program	Sep. 30, 2024
Equity [Abstract]
Convertible Preferred Stock and Share Repurchase Program	Convertible Preferred Stock and Share Repurchase Program Convertible Preferred Stock On March 20, 2023, the Company cancelled all shares of Series A Preferred Stock pursuant to the Certificate of Elimination filed with the Secretary of State of Delaware. Share Repurchase Program

Debt - Credit Facility

Debt - Credit Facility	9 Months Ended
Debt - Credit Facility	Sep. 30, 2024
Debt Disclosure [Abstract]
Debt - Credit Facility	Debt - Credit Facility On December 21, 2021, the Company entered into a three-year, $25.0 million asset-based revolving credit facility (the "Credit Facility") with Texas Capital Bank ("TCB"). The Company’s obligations under the Credit Facility are guaranteed on a joint and several basis by the Company’s material subsidiaries (the “Guarantors”). The Credit Facility is secured by substantially all of the assets of the Company and the Guarantors pursuant to a Pledge and Security Agreement, dated as of December 21, 2021, among the Company, TCB and the other Guarantors party thereto (the "Security Agreement"). On December 29, 2023, the Company extended the maturity date for the Credit Facility by a period of six months to June 30, 2025. The extension was executed with substantially similar terms and conditions as the original Credit Facility. The Credit Facility provides for loans up to the lesser of (a) $25.0 million, and (b) the amount available under a “borrowing base” calculated primarily by reference to the Company's cash and cash equivalents and accounts receivables. The Credit Facility allows the Company to use up to $3.0 million of its borrowing capacity to issue letters of credit. The loans under the Credit Facility accrue interest at a variable rate equal to the Secured Overnight Financing Rate (SOFR) plus a margin of 2.25% per annum. The interest rate was 7.27% a s of September 30, 2024. The outstanding amounts advanced under the Credit Facility are due and payable in full on June 30, 2025. As of September 30, 2024 and December 31, 2023, we had letters of credit outstanding in the amount of $1.0 million and $0.8 million, respectively. No amounts were drawn against these letters of credit at September 30, 2024. These letters of credit exist to support insurance programs relating to worker’s compensation and general liability. Unused commitment balances accrue fees at a rate of 0.25%. As of September 30, 2024 and December 31, 2023, we had the ability to borrow $24.0 million and $24.2 million, respectively, under the Credit Facility. As of September 30, 2024 and December 31, 2023, we had no borrowings outstanding under the Credit Facility

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation We maintain stock incentive plans for the benefit of certain officers, directors, and employees. Our stock incentive plans provide for the ability to issue stock options, cash stock appreciation rights, performance stock units, phantom stock units and cash performance stock units. Our cash stock appreciation rights, phantom stock units and cash performance stock units settle solely in cash and are treated as the current liability, which are adjusted each reporting period based on changes in our stock price. Compensation expense for stock-based awards is based on the fair values of the awards on the date of grant and is recognized on a straight-line basis over the vesting period of the entire award in the “Labor” line of the Condensed Consolidated Statements of Comprehensive Income (Loss). We recognized $0.4 million and $0.2 million of stock-based compensation expense during the three months ended September 30, 2024 and 2023 , respectively. We recognized $1.7 million and $1.2 million of stock-based compensation expense during the nine months ended September 30, 2024 and 2023

Employee Benefit Plans

Employee Benefit Plans	9 Months Ended
Employee Benefit Plans	Sep. 30, 2024
Retirement Benefits [Abstract]
Employee Benefit Plans	Employee Benefit Plans Prior to January 1, 1999, we provided a defined benefit pension plan for which most of our employees were eligible to participate (the “Qualified Pension Plan”). In conjunction with significant enhancements to our 401(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of December 31, 1998. In 1994, we adopted a non-qualified, unfunded, supplemental pension plan (the “Restoration Pension Plan”) covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from the principal pension plan were it not for limitations imposed by income tax regulation. The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had not been frozen. We elected to freeze benefits under the Restoration Pension Plan as of April 1, 2014. At the end of 2020, the Board of Directors of the Company approved the division of the Qualified Pension Plan into two distinct plans, “Qualified Pension Plan I” and “Qualified Pension Plan II.” The assets and liabilities of the Qualified Pension Plan that were attributable to certain participants in Qualified Pension Plan II were spun off and transferred into Qualified Pension Plan II effective as of the end of December 31, 2021, in accordance with Internal Revenue Code section 414(I) and ERISA Section 4044. In January 2023, the Board of Directors of the Company approved the termination of the Qualified Pension Plan I. The termination process took approximately 18 months and was completed in June 2024, which resulted in the transfer of our obligations pursuant to this pension plan to an insurance company. We made total cash payment of $7.2 million to terminate the Qualified Pension Plan I during the nine months ended September 30, 2024. We made a $6.1 million cash contribution in the three months ended June 30, 2024. This contribution with the liquidation of pension assets was used to purchase annuities from an insurance company, which settled the liabilities for Pension Plan I participants. We paid another $1.1 million during the three months ended September 30, 2024 as the insurance company was onboarding pension participants and final filings were submitted to the Pension Benefit Guaranty Corporation. We recognized $37.5 million of pension termination charges which were reflected in our Condensed Consolidated Statements of Comprehensive Income (Loss) for nine months ended September 30, 2024. The overfunded or underfunded status of our defined benefit post-retirement plans is recorded as an asset or liability on our condensed consolidated balance sheets. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income in the Condensed Consolidated Statements of Comprehensive Income (Loss). We currently measure the funded status of our defined benefit plans as of December 31, the date of our year-end Consolidated Balance Sheets. Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Interest cost $ 702 $ 1,772 $ 4,330 $ 5,316 Expected return on plan assets (470) (1,554) (3,163) (4,662) Recognized actuarial loss 137 630 1,420 1,890 Net periodic benefit cost $ 369 $ 848 $ 2,587 $ 2,544 Based on current estimates, we will be required to make a $2.0 million contribution to the combined qualified Pension Plan in 2024. We made $1.6 million of such $2.0 million aggregate contribution in the nine months ended September 30, 2024. We are not required to make, and do not intend to make, any contributions to our Restoration Pension Plan in 2024 other than to the extent needed to cover benefit payments. We made benefit payments under this supplemental plan of $1.4 million in both the nine months ended September 30, 2024 and 2023.

Income Taxes

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2024
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax expense was $0.9 million and $1.9 million for the three months ended September 30, 2024 and 2023, respectively. The provision for income taxes resulted in an effective tax rate of 85.9% for the three months ended September 30, 2024 and 75.6% for the three months ended September 30, 2023. The effective income tax rate for the three months ended September 30, 2024 and 2023 differs from the federal statutory rate of 21%, primarily due to the U.S. state income taxes and the impact of income earned in foreign jurisdictions. The income tax benefit was $8.2 million and income tax provision was $1.6 million for the nine months ended September 30, 2024 and 2023, respectively. The provision for income taxes resulted in an effective tax rate of 22.8% for the nine months ended September 30, 2024 and 79.9% for the nine months ended September 30, 2023. The effective income tax rate for the nine months ended September 30, 2024 and 2023 differs from the federal statutory rate of 21%, primarily due to the U.S. state income taxes and the impact of income earned in foreign jurisdictions. Harte Hanks, or one of our subsidiaries file income tax returns in the U.S. federal, U.S. state, and foreign jurisdictions. For U.S. state, federal and foreign returns, we are no longer subject to tax examinations for years prior to 2021. The Company has reviewed all of its tax positions in order to determine whether all, a portion, or none of any related tax benefit should be recognized and has not identified or recorded any ASC 740-10 reserve. We have elected to classify any interest expense and penalties related to income taxes within income tax expense in our Condensed Consolidated Statements of Comprehensive Income (Loss). We did not have a significant amount of interest or penalties accrued at September 30, 2024 or December 31, 2023.

Earnings (Loss) Per Share

Earnings (Loss) Per Share	9 Months Ended
Earnings (Loss) Per Share	Sep. 30, 2024
Earnings Per Share [Abstract]
Earnings (Loss) Per Share	Earnings (Loss) Per Share Basic income (loss) per share (“EPS”) is calculated using income available to common stockholders, divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated using income available to common stockholders divided by the weighted average number of shares of common stock including both shares outstanding and shares potentially issuable in connection with restricted common stock awards and stock option under our stock incentive plans. Reconciliations of basic and diluted EPS were as follows: Three months ended September 30, Nine months ended September 30, In thousands, except per share amounts 2024 2023 2024 2023 Numerator: Net income (loss) $ 142 $ 618 $ (27,863) $ 407 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,324 7,239 7,273 7,340 Diluted EPS denominator 7,398 7,314 7,273 7,509 Basic (loss) income per Common Share $ 0.02 $ 0.09 $ (3.83) $ 0.06 Diluted (loss) income per Common Share $ 0.02 $ 0.08 $ (3.83) $ 0.05 For the three months ended September 30, 2024 and 2023, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 354,239 and 132,193 shares of anti-dilutive market price options; 13,567 and 58,869 of anti-dilutive unvested restricted shares. For the nine months ended September 30, 2024 and 2023, respectively, the following shares have been excluded from the calculation of shares used in the diluted EPS calculation: 335,431 and 8,098 shares of anti-dilutive market price options; 23,114 and 40,389 of anti-dilutive unvested restricted shares.

Comprehensive Income (Loss)

Comprehensive Income (Loss)	9 Months Ended
Comprehensive Income (Loss)	Sep. 30, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Comprehensive Income (Loss)	Comprehensive Income (Loss) Comprehensive income (loss) for a period encompasses net income (loss) and all other changes in equity other than from transactions with our stockholders. Changes in accumulated other comprehensive loss by component were as follows: In thousands Defined Benefit Foreign Currency Total Balance at December 31, 2023 $ (42,456) $ (1,634) $ (44,090) Other comprehensive loss, net of tax, before reclassifications — (1,945) (1,945) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 29,626 — 29,626 Net current period other comprehensive loss, net of tax 29,626 (1,945) 27,681 Balance at September 30, 2024 $ (12,830) $ (3,579) $ (16,409) In thousands Defined Benefit Pension Items Foreign Currency Items Total Balance at December 31, 2022 $ (44,120) $ (4,182) $ (48,302) Other comprehensive income, net of tax, before reclassifications — 1,421 1,421 Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,645 — 1,645 Net current period other comprehensive income, net of tax 1,645 1,421 3,066 Balance at September 30, 2023 $ (42,475) $ (2,761) $ (45,236) Reclassification amounts related to the defined pension plans are included in the computation of net periodic pension benefit cost (see Note H, Employee Benefit Plans

Litigation and Contingencies

Litigation and Contingencies	9 Months Ended
Litigation and Contingencies	Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Litigation and Contingencies	Litigation and Contingencies In the normal course of our business, we are obligated under some agreements to indemnify our clients as a result of third party claims if the claim alleges that we have infringed upon the proprietary rights of third parties, or alternatively, in some contractual instances, if the third party claims relating to other ad hoc contract obligations. The terms and duration of these indemnity commitments vary and, in some cases may be indefinite, and some of these contractual commitments do not limit the maximum amount of future payments we could become obligated to make thereunder. Accordingly, our actual aggregate maximum exposure related to these types of commitments is not reasonably estimated. Historically, we have not been obligated to make significant payments for obligations of this nature, and no liabilities have been recorded for these obligations in our consolidated financial statements. We are also subject to various claims and legal proceedings in the ordinary course of conducting our businesses and, from time to time, we may become involved in additional claims and lawsuits incidental to our businesses. We routinely assess the likelihood of adverse judgments or outcomes, as well as ranges of probable losses. To the extent losses are reasonably estimable, we accrue for them. Accruals are recorded for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonable estimable. In the opinion of management, appropriate and adequate accruals for legal matters have been made, and management believes that the probability of a material loss beyond the amounts accrued is remote. Nevertheless, we cannot predict the impact of future developments affecting our pending or future claims and lawsuits. We expense legal costs as incurred, and all recorded legal liabilities are adjusted as required as better information becomes available to us. The factors we

Restructuring Activities

Restructuring Activities	9 Months Ended
Restructuring Activities	Sep. 30, 2024
Restructuring and Related Activities [Abstract]
Restructuring Activities	Restructuring Activities During the second half of 2023, we engaged a consulting firm to help review and analyze the structure and operations of the Company. This review included greater than 200 meetings with personnel at all levels of the firm and led to the initiation of our transformation program named "Project Elevate". The program involves the optimization and rationalization of our business resources as well as the partial reinvestment of savings into the Company's sales and marketing team, technology, and strategy. A business transformation office was established at the beginning of 2024 to manage and measure these initiatives. Reorganization cost reductions from Project Elevate during 2024 through 2026 are estimated to be $16.0 million. For the year ended December 31, 2023, we recorded restructuring charges of $5.7 million. We expect to incur total restructuring charges of $10.1 million through the end of 2025. For the three and nine months ended September 30, 2024, we recorded restructuring charges of $0.8 million and $2.1 million, respectively. The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statement of Comprehensive Income (Loss). In thousands Three months ended Sep 30, 2024 Nine months ended Sep 30, 2024 Consulting and employee expense $ 215 $ 677 Severance 243 1,025 Facility and other expenses 378 414 Total $ 836 $ 2,116 The following table summarizes the changes in liabilities related to restructuring activities: Nine months ended Sep 30, 2024 In thousands Consulting and Employee Expense Severance Facility, asset impairment and other expense Total Beginning balance: $ 3,574 $ 144 $ 38 $ 3,756 Additions 673 1,026 263 1,962 Payments and adjustment (4,247) (907) (301) (5,455) Ending balance: $ — $ 263 $ — $ 263

Segment Reporting

Segment Reporting	9 Months Ended
Segment Reporting	Sep. 30, 2024
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting Harte Hanks is a leading global customer experience company. Beginning in 2024, we have organized our operations into four reportable segments based on the types of products and services we provide: Marketing Services, Customer Care, Sales Services and Fulfillment & Logistics Services. The Sales Service is our new reportable segment for 2024 as it has become strategically more important for our company. It was included in Customer Care segment in 2023. 2023 segment reporting has been restated to reflect this change. Our Marketing Services segment leverages data, insight, and experience to support clients as they engage customers through digital, traditional, and emerging channels. We partner with clients to develop strategies and tactics to identify and prioritize customer audiences in B2C and B2B transactions. Our key service offerings include strategic business, brand, marketing and communications planning, data strategy, audience identification and prioritization, predictive modeling, creative development and execution across traditional and digital channels, website and app development, platform architecture, database build and management, marketing automation, and performance measurement, reporting and optimization. Our Customer Care segment offers intelligently responsive contact center solutions, which use real-time data to effectively interact with each customer. Customer contacts are handled through phone, e-mail, social media, text messaging, chat and digital self-service support. We provide these services utilizing our advanced technology infrastructure, human resource management skills and industry experience. Our Sales Services segment enables customers to optimize their go-to-market function by offering a range of outsourced services including sales process optimization, sales play development, inbound lead qualification and outbound sales prospecting. Our Fulfillment & Logistics segment consists of mail and product fulfillment and logistics services. We offer a variety of product fulfillment solutions, including printing on demand, managing product recalls, and distributing literature and promotional products to support B2B trade, drive marketing campaigns, and improve customer experience. We are also a provider of third-party logistics and freight optimization in the United States. There are two principal financial measures reported to our CEO (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are revenue and operating income (loss)”). Operating income for segment reporting disclosed below, is revenues less operating costs and allocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. The Company does not allocate assets to our reportable segments for internal reporting purposes, nor does our CEO evaluate reportable segments using discrete asset information. The accounting policies of the segments are consistent with those described in the Note A, Overview and Significant Accounting Policies. The following table presents financial information by segment for the three months ended September 30, 2024: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Unallocated Corporate Total Revenue $ 9,050 $ 13,068 $ 4,205 $ 21,307 $ — $ — $ 47,630 Segment operating expense 6,158 9,995 3,318 19,192 836 5,195 44,694 Contribution margin (loss) $ 2,892 $ 3,073 $ 887 $ 2,115 $ (836) $ (5,195) $ 2,936 Overhead allocation 792 567 189 775 — (2,323) — Depreciation and amortization 167 44 198 266 — 363 1,038 Operating income (loss) $ 1,933 $ 2,462 $ 500 $ 1,074 $ (836) $ (3,235) $ 1,898 The following table presents financial information by segment for the three months ended September 30, 2023: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Unallocated Corporate Total Revenue $ 10,591 $ 11,832 $ 2,166 $ 22,530 $ — $ — $ 47,119 Segment operating expense 8,370 9,380 1,959 18,995 — 4,549 43,253 Contribution margin (loss) $ 2,221 $ 2,452 $ 207 $ 3,535 $ — $ (4,549) $ 3,866 Overhead allocation 706 668 — 680 — (2,054) — Depreciation and amortization 71 57 196 249 — 379 952 Operating income (loss) $ 1,444 $ 1,727 $ 11 $ 2,606 $ — $ (2,874) $ 2,914 The following table presents financial information by segment for the nine months ended September 30, 2024: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenue $ 25,709 $ 37,894 $ 13,281 $ 61,229 $ — $ — $ 138,113 Segment operating expense 19,355 28,856 9,891 54,348 2,116 16,795 131,361 Contribution margin (loss) $ 6,354 $ 9,038 $ 3,390 $ 6,881 $ (2,116) $ (16,795) $ 6,752 Overhead allocation 2,454 1,761 587 2,403 — (7,205) — Depreciation and amortization 509 160 589 757 — 1,091 3,106 Operating income (loss) $ 3,391 $ 7,117 $ 2,214 $ 3,721 $ (2,116) $ (10,681) $ 3,646 The following table presents financial information by segment for the nine months ended September 30, 2023: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenue $ 32,751 $ 38,372 $ 7,253 $ 63,625 $ — $ — $ 142,001 Segment operating expense 26,464 30,259 6,275 54,435 — 15,880 133,313 Contribution margin (loss) $ 6,287 $ 8,113 $ 978 $ 9,190 $ — $ (15,880) $ 8,688 Overhead allocation 2,261 2,102 — 2,203 — (6,566) — Depreciation and amortization 167 438 586 736 — 1,124 3,051 Operating income (loss) $ 3,859 $ 5,573 $ 392 $ 6,251 $ — $ (10,438) $ 5,637

Overview and Significant Acco_2

Overview and Significant Accounting Policies (Policies)	9 Months Ended
Overview and Significant Accounting Policies (Policies)	Sep. 30, 2024
Accounting Policies [Abstract]
Segment Reporting	Segment Reporting The Company operates four reportable segments: Marketing Services; Customer Care; Sales Services; and Fulfillment & Logistics Services. Our Chief Executive Officer (“CEO”) is considered to be our chief operating decision maker. Our CEO reviews our operating results on an aggregate basis for purposes of allocating resources and evaluating financial performance by using the two financial measures: revenue and operating income.
Accounting Principles	Accounting Principles Our unaudited interim condensed consolidated financial statements and accompanying notes are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments of a normal recurring nature that are necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 (the “2023 10-K”).
Consolidation	Consolidation The accompanying unaudited interim condensed consolidated financial statements include the accounts of Harte Hanks, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. As used in this report, the terms “Harte Hanks,” “the Company,” “we,” “us,” or “our” may refer to Harte Hanks, Inc., one or more of its consolidated subsidiaries, or all of them taken as a whole, as the context may require.
Interim Financial Information	Interim Financial Information
Use of Estimates	Use of Estimates Preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates due to uncertainties. Such estimates include, but are not limited to, estimates related to lease accounting; pension accounting; fair value for purposes of assessing long-lived assets for impairment; revenue recognition; income taxes; stock-based compensation and contingencies. On an ongoing basis, management reviews its estimates and assumptions based on currently available information. Changes in facts and circumstances could result in revised estimates and assumptions.
Operating Expenses Presentation in Condensed Consolidated Statements of Comprehensive (Loss) Income	Operating Expense Presentation in Condensed Consolidated Statements of Comprehensi ve (Loss) Income The “Labor” line in the Condensed Consolidated Statements of Comprehensive Loss (Income) includes all employee payroll and benefits costs, including stock-based compensation and temporary labor costs. The “Production and distribution” and “Advertising, selling, general and administrative” lines do not include any labor, depreciation, or amortization expense.
Revenue Recognition	Revenue Recognition We recognize revenue upon the transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to be entitled to receive in exchange for those products or services based on the relevant contract. We apply the following five-step revenue recognition model: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when (or as) we satisfy the performance obligation Certain client programs provide for adjustments to billings based upon whether we achieve certain performance criteria. In these circumstances, revenue is recognized when the foregoing conditions are met. We record revenue net of any taxes collected from customers and subsequently remitted to governmental authorities. Any payments received in advance of the performance of services or delivery of the product are recorded as deferred revenue until such time as the services are performed or the product is delivered. Costs incurred for search engine marketing solutions payable to the engine host and postage costs of mailings are billed to our clients and are not directly reflected in our revenue. Revenue from agency and digital services, direct mail, logistics, fulfillment and contact center is recognized when the work is performed. Fees for these services are determined by the terms set forth in each contract. These fees are typically a set fixed price or rate by transaction occurrence, service provided, time spent, or product delivered.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") 820, Fair Value Measurements and Disclosures , (“ASC 820”) defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into three levels: Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Because of their maturities and/or variable interest rates, certain financial instruments have fair values approximating their carrying values. These instruments include cash and cash equivalents and restricted cash, accounts receivable, trade payables, and debt. The fair value of the assets in our funded pension plan is discussed in Note H, Employee Benefit Plans.
Leases	Leases
Recent Accounting Guidance Not Yet Adopted	Recent Accounting Guidance Not Yet Adopted In November 2023, the FASB issued accounting standards update (“ASU”) 2023-07, which enhances the disclosures required for reportable segments in annual and interim consolidated financial statements. ASU 2023-07 is effective for the Company for annual reporting periods beginning with the fiscal year ending December 31, 2024, and for interim reporting periods beginning in fiscal year 2025. Early adoption is permitted. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, which requires enhanced income tax disclosures, including disaggregation of information in the rate reconciliation table and disaggregated information related to income taxes paid. The amendments in ASU 2023-09 are effective for the annual periods beginning with the fiscal year ending December 31, 2025. The Company is currently evaluating the impact that this update will have on its disclosures in the consolidated financial statements. No other new accounting pronouncements recently adopted or issued had or are expected to have a material impact on the condensed consolidated financial statements.
Revenue from Contracts with Customers	Revenue from Contracts with Customers Consistent with GAAP, we present sales taxes assessed on revenue-producing transactions on a net basis. Disaggregation of Revenue Our contracts with customers may consist of multiple performance obligations. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price (“SSP”) basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct good or service that forms part of a single performance obligation. For most performance obligations, we determine SSP based on the price at which the performance obligation is sold separately. Although uncommon, if the SSP is not observable through past transactions, we estimate the SSP taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Further discussion of other performance obligations in each of our major revenue streams follows: Marketing Services Our Marketing Services segment delivers strategic planning, data strategy, performance analytics, creative development and execution, technology enablement, marketing automation, and database management. We create relevancy by leveraging data, insight, and our extensive experience in leading clients as they engage their customers through digital, traditional, and emerging channels. We are known for helping clients build deep customer relationships, create connected customer experiences, and optimize each and every customer touch point in order to deliver desired business outcomes. Most marketing services performance obligations are satisfied over time and often offered on a per project basis. We have concluded that the best approach to measure the progress toward completion of the project-based performance obligations is the input method, which is based on either the costs or labor hours incurred to date depending upon whether costs or labor hours more accurately depict the transfer of value to the customer. Our database solutions are built around centralized marketing databases with services rendered to build custom database, database hosting services, customer or target marketing lists and data processing services. These performance obligations, including services rendered to build a custom database, database hosting services, customer or target marketing lists and data processing services, may be satisfied over time or at a point in time. We provide software as a service (“SaaS”) solutions to host data for customers and have concluded that these solutions are stand-ready obligations to be recognized over time on a monthly basis. Our promise to provide certain data related services meets the over-time recognition criteria because our services do not create an asset with an alternative use, and we have an enforceable right to payment. For performance obligations recognized over time, we choose either the input (i.e., labor hour) or output method (i.e., number of customer records) to measure the progress toward completion depending on the nature of the services provided. Some of our other data-related services do not meet the over-time criteria and are therefore, recognized at a point-in-time, typically upon the delivery of a specific deliverable. Our contracts may include outsourced print production work for our clients. These contracts may include a promise to purchase postage on behalf of our clients. In such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue. Customer Care We deliver customer care services in the United States, Asia, and Europe to provide advanced solutions such as voice, SMS/chat, email, integrated voice response, web self-service, social cloud monitoring, and analytics. Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs. Sales Services Our Sales Services segment enables customers to optimize their go-to-market function by offering a range of outsourced services including sales process optimization, sales play development, inbound lead qualification and outbound sales prospecting. Performance obligations are stand-ready obligations and are satisfied over time. With regard to account management and SaaS, we use a time-elapsed output method to recognize revenue. For performance obligations where we charge customers a transaction-based fee, we use the output method based on transaction quantities. In most cases, our contracts provide us the right to invoice for services provided, therefore, we generally use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their SSPs. Fulfillment & Logistics Services Our services, delivered internally and with our partners, include printing, lettershop, advanced mail optimization (including commingling services), logistics and transportation optimization, monitoring and tracking, to support traditional and specialized mailings. Our print and fulfillment centers in Massachusetts and Kansas provide custom kitting services, print on demand, product recall support, trade marketing fulfillment, ecommerce product fulfillment, sampling programs, and freight optimization, thereby allowing our customers to efficiently and effectively distribute literature and other marketing materials. Most performance obligations offered within this revenue stream are satisfied over time and utilize the input or output method, depending on the nature of the service, to measure progress toward satisfying the performance obligation. For performance obligations where we charge customers a transaction-based fee, we utilize the output method based on the quantities fulfilled. Services provided through our fulfillment centers are typically priced at a per transaction basis and our contracts provide us the right to invoice for services provided and reflects the value to the customer of the services transferred to date. In most cases, we use the “as invoiced” practical expedient to recognize revenue associated with these performance obligations unless significant discounts are offered in a contract and prices for services do not represent their standalone selling prices. Our direct mail business contracts may have included a promise to purchase postage on behalf of our clients; in such cases, we have determined we are an agent, rather than principal and therefore recognize net consideration as revenue. Transaction Price Allocated to Future Performance Obligations Contract Balances Costs to Obtain and Fulfill a Contract

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	9 Months Ended
Revenue from Contracts with Customers (Tables)	Sep. 30, 2024
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenue from contracts with customers for the three and nine months ended September 30, 2024 and 2023 by our four reportable segments and the pattern of revenue recognition: Three Months Ended September 30, 2024 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 7,960 $ 1,090 $ 9,050 Customer Care 13,068 — 13,068 Sales Services 4,205 — 4,205 Fulfillment and Logistics Services 17,644 3,663 21,307 Total Revenues $ 42,877 $ 4,753 $ 47,630 Three Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 9,272 $ 1,319 $ 10,591 Customer Care 11,832 — 11,832 Sales Services 2,166 — 2,166 Fulfillment and Logistics Services 18,625 3,905 22,530 Total Revenues $ 41,895 $ 5,224 $ 47,119 Nine Months Ended September 30, 2024 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 22,408 $ 3,301 $ 25,709 Customer Care 37,894 — 37,894 Sales Services 13,281 — 13,281 Fulfillment and Logistics Services 49,901 11,328 61,229 Total Revenues $ 123,484 $ 14,629 $ 138,113 Nine Months Ended September 30, 2023 In thousands Revenue for performance obligations recognized over time Revenue for performance obligations recognized at a point in time Total Marketing Services $ 29,321 $ 3,430 $ 32,751 Customer Care 38,372 — 38,372 Sales Services 7,253 — 7,253 Fulfillment and Logistics Services 52,044 11,581 63,625 Total Revenues $ 126,990 $ 15,011 $ 142,001
Contract Balances	The following table summarizes our contract balances as of September 30, 2024 and December 31, 2023: In thousands September 30, 2024 December 31, 2023 Unbilled accounts receivable 8,952 7,677 Contract assets 308 258 Deferred revenue and customer advances 3,400 3,195 Deferred revenue, included in other long-term liabilities 213 294

Leases (Tables)

Leases (Tables)	9 Months Ended
Leases (Tables)	Sep. 30, 2024
Leases [Abstract]
Supplemental Balance Sheet Information	The following table presents supplemental balance sheet information related to our financing and operating leases: In thousands As of September 30, 2024 As of December 31, 2023 Operating Leases Finance Leases Total Operating Leases Finance Leases Total R ight-of-use Assets $ 22,392 $ 534 $ 22,926 $ 25,288 $ 129 $ 25,417 Liabilities Current portion of lease liabilities 3,665 97 3,762 4,773 42 4,815 Long-term lease liabilities 21,114 355 21,469 23,687 4 23,691 Total Lease Liabilities $ 24,779 $ 452 $ 25,231 $ 28,460 $ 46 $ 28,506
Components of Lease Expense	For the three and nine months ended September 30, 2024 and 2023, the components of lease expense were as follows: Three months ended September 30, Nine months ended September 30, In thousands 2024 2023 2024 2023 Operating lease cost $ 1,314 $ 1,338 $ 3,996 $ 4,160 Finance lease cost: Amortization of right-of-use assets 30 35 61 115 Interest on lease liabilities 9 2 17 6 Total Finance lease cost 39 37 78 121 Variable lease cost 412 537 1,443 1,525 Sublease income (53) (177) (368) (676) Total lease cost, net $ 1,712 $ 1,735 $ 5,149 $ 5,130 Other information related to leases was as follows: In thousands Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Supplemental Cash Flows Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 8,464 $ 9,525 Operating cash flows from finance leases 15 6 Financing cash flows from finance leases 79 144 Weighted Average Remaining Lease term Operating leases 6.6 5.6 Finance leases 4.5 1.3 Weighted Average Discount Rate Operating leases 5.73 % 3.56 % Finance leases 8.15 % 7.04 %
Maturities of Finance and Operating Lease Liabilities	The maturities of the Company’s finance and operating lease liabilities as of September 30, 2024 are as follows: In thousands Operating Leases Finance Leases Year Ending December 31, Remainder of 2024 $ 1,398 $ 35 2025 4,656 120 2026 4,232 117 2027 4,198 117 2028 4,094 117 2029 and beyond 11,397 32 Total future minimum lease payments 29,975 538 Less: imputed interest 5,196 86 Total lease liabilities $ 24,779 $ 452

Employee Benefit Plans (Tables)

Employee Benefit Plans (Tables)	9 Months Ended
Employee Benefit Plans (Tables)	Sep. 30, 2024
Retirement Benefits [Abstract]
Net Period of Net Periodic Cost	Net pension cost for both plans included the following components: Three Months Ended September 30, Nine Months Ended September 30, In thousands 2024 2023 2024 2023 Interest cost $ 702 $ 1,772 $ 4,330 $ 5,316 Expected return on plan assets (470) (1,554) (3,163) (4,662) Recognized actuarial loss 137 630 1,420 1,890 Net periodic benefit cost $ 369 $ 848 $ 2,587 $ 2,544

Earnings (Loss) Per Share (Tabl

Earnings (Loss) Per Share (Tables)	9 Months Ended
Earnings (Loss) Per Share (Tables)	Sep. 30, 2024
Earnings Per Share [Abstract]
Reconciliations of Basic and Diluted EPS	Reconciliations of basic and diluted EPS were as follows: Three months ended September 30, Nine months ended September 30, In thousands, except per share amounts 2024 2023 2024 2023 Numerator: Net income (loss) $ 142 $ 618 $ (27,863) $ 407 Denominator: Basic EPS denominator: weighted-average common shares outstanding 7,324 7,239 7,273 7,340 Diluted EPS denominator 7,398 7,314 7,273 7,509 Basic (loss) income per Common Share $ 0.02 $ 0.09 $ (3.83) $ 0.06 Diluted (loss) income per Common Share $ 0.02 $ 0.08 $ (3.83) $ 0.05

Comprehensive Income (Loss) (Ta

Comprehensive Income (Loss) (Tables)	9 Months Ended
Comprehensive Income (Loss) (Tables)	Sep. 30, 2024
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Changes in Accumulated Other Comprehensive Loss by Component	Changes in accumulated other comprehensive loss by component were as follows: In thousands Defined Benefit Foreign Currency Total Balance at December 31, 2023 $ (42,456) $ (1,634) $ (44,090) Other comprehensive loss, net of tax, before reclassifications — (1,945) (1,945) Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 29,626 — 29,626 Net current period other comprehensive loss, net of tax 29,626 (1,945) 27,681 Balance at September 30, 2024 $ (12,830) $ (3,579) $ (16,409) In thousands Defined Benefit Pension Items Foreign Currency Items Total Balance at December 31, 2022 $ (44,120) $ (4,182) $ (48,302) Other comprehensive income, net of tax, before reclassifications — 1,421 1,421 Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income 1,645 — 1,645 Net current period other comprehensive income, net of tax 1,645 1,421 3,066 Balance at September 30, 2023 $ (42,475) $ (2,761) $ (45,236)

Restructuring Activities (Table

Restructuring Activities (Tables)	9 Months Ended
Restructuring Activities (Tables)	Sep. 30, 2024
Restructuring and Related Activities [Abstract]
Restructuring Expense	The following table summarizes the restructuring charges which are recorded in “Restructuring Expense” in the Condensed Consolidated Statement of Comprehensive Income (Loss). In thousands Three months ended Sep 30, 2024 Nine months ended Sep 30, 2024 Consulting and employee expense $ 215 $ 677 Severance 243 1,025 Facility and other expenses 378 414 Total $ 836 $ 2,116
Changes in Liabilities	The following table summarizes the changes in liabilities related to restructuring activities: Nine months ended Sep 30, 2024 In thousands Consulting and Employee Expense Severance Facility, asset impairment and other expense Total Beginning balance: $ 3,574 $ 144 $ 38 $ 3,756 Additions 673 1,026 263 1,962 Payments and adjustment (4,247) (907) (301) (5,455) Ending balance: $ — $ 263 $ — $ 263

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
Segment Reporting (Tables)	Sep. 30, 2024
Segment Reporting [Abstract]
Financial Information by Segment	The following table presents financial information by segment for the three months ended September 30, 2024: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Unallocated Corporate Total Revenue $ 9,050 $ 13,068 $ 4,205 $ 21,307 $ — $ — $ 47,630 Segment operating expense 6,158 9,995 3,318 19,192 836 5,195 44,694 Contribution margin (loss) $ 2,892 $ 3,073 $ 887 $ 2,115 $ (836) $ (5,195) $ 2,936 Overhead allocation 792 567 189 775 — (2,323) — Depreciation and amortization 167 44 198 266 — 363 1,038 Operating income (loss) $ 1,933 $ 2,462 $ 500 $ 1,074 $ (836) $ (3,235) $ 1,898 The following table presents financial information by segment for the three months ended September 30, 2023: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Unallocated Corporate Total Revenue $ 10,591 $ 11,832 $ 2,166 $ 22,530 $ — $ — $ 47,119 Segment operating expense 8,370 9,380 1,959 18,995 — 4,549 43,253 Contribution margin (loss) $ 2,221 $ 2,452 $ 207 $ 3,535 $ — $ (4,549) $ 3,866 Overhead allocation 706 668 — 680 — (2,054) — Depreciation and amortization 71 57 196 249 — 379 952 Operating income (loss) $ 1,444 $ 1,727 $ 11 $ 2,606 $ — $ (2,874) $ 2,914 The following table presents financial information by segment for the nine months ended September 30, 2024: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenue $ 25,709 $ 37,894 $ 13,281 $ 61,229 $ — $ — $ 138,113 Segment operating expense 19,355 28,856 9,891 54,348 2,116 16,795 131,361 Contribution margin (loss) $ 6,354 $ 9,038 $ 3,390 $ 6,881 $ (2,116) $ (16,795) $ 6,752 Overhead allocation 2,454 1,761 587 2,403 — (7,205) — Depreciation and amortization 509 160 589 757 — 1,091 3,106 Operating income (loss) $ 3,391 $ 7,117 $ 2,214 $ 3,721 $ (2,116) $ (10,681) $ 3,646 The following table presents financial information by segment for the nine months ended September 30, 2023: In thousands Marketing Services Customer Care Sales Services Fulfillment & Logistics Restructuring Expense Unallocated Corporate Total Revenue $ 32,751 $ 38,372 $ 7,253 $ 63,625 $ — $ — $ 142,001 Segment operating expense 26,464 30,259 6,275 54,435 — 15,880 133,313 Contribution margin (loss) $ 6,287 $ 8,113 $ 978 $ 9,190 $ — $ (15,880) $ 8,688 Overhead allocation 2,261 2,102 — 2,203 — (6,566) — Depreciation and amortization 167 438 586 736 — 1,124 3,051 Operating income (loss) $ 3,859 $ 5,573 $ 392 $ 6,251 $ — $ (10,438) $ 5,637

Overview and Significant Acco_3

Overview and Significant Accounting Policies (Details)	9 Months Ended
Overview and Significant Accounting Policies (Details)	Sep. 30, 2024 segment
Accounting Policies [Abstract]
Number of reportable segments	4
Number of operating segments	4

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) segment	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Number of reportable segments \| segment			4
Transaction price allocated to unsatisfied or partially satisfied performance obligations	$ 0		$ 0
Revenue recognized included in deferred revenue			2,900	$ 3,900
Remaining unamortized contract costs	300		300		$ 600
Impairment recognized	$ 0	$ 0	$ 0	$ 0

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Total Revenues	$ 47,630	$ 47,119	$ 138,113	$ 142,001
Revenue for performance obligations recognized over time
Disaggregation of Revenue [Line Items]
Total Revenues	42,877	41,895	123,484	126,990
Revenue for performance obligations recognized at a point in time
Disaggregation of Revenue [Line Items]
Total Revenues	4,753	5,224	14,629	15,011
Marketing Services
Disaggregation of Revenue [Line Items]
Total Revenues	9,050	10,591	25,709	32,751
Marketing Services \| Revenue for performance obligations recognized over time
Disaggregation of Revenue [Line Items]
Total Revenues	7,960	9,272	22,408	29,321
Marketing Services \| Revenue for performance obligations recognized at a point in time
Disaggregation of Revenue [Line Items]
Total Revenues	1,090	1,319	3,301	3,430
Customer Care
Disaggregation of Revenue [Line Items]
Total Revenues	13,068	11,832	37,894	38,372
Customer Care \| Revenue for performance obligations recognized over time
Disaggregation of Revenue [Line Items]
Total Revenues	13,068	11,832	37,894	38,372
Customer Care \| Revenue for performance obligations recognized at a point in time
Disaggregation of Revenue [Line Items]
Total Revenues	0	0	0	0
Sales Services
Disaggregation of Revenue [Line Items]
Total Revenues	4,205	2,166	13,281	7,253
Sales Services \| Revenue for performance obligations recognized over time
Disaggregation of Revenue [Line Items]
Total Revenues	4,205	2,166	13,281	7,253
Sales Services \| Revenue for performance obligations recognized at a point in time
Disaggregation of Revenue [Line Items]
Total Revenues	0	0	0	0
Fulfillment and Logistics Services
Disaggregation of Revenue [Line Items]
Total Revenues	21,307	22,530	61,229	63,625
Fulfillment and Logistics Services \| Revenue for performance obligations recognized over time
Disaggregation of Revenue [Line Items]
Total Revenues	17,644	18,625	49,901	52,044
Fulfillment and Logistics Services \| Revenue for performance obligations recognized at a point in time
Disaggregation of Revenue [Line Items]
Total Revenues	$ 3,663	$ 3,905	$ 11,328	$ 11,581

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Unbilled accounts receivable	$ 8,952	$ 7,677
Contract assets	308	258
Deferred revenue and customer advances	3,400	3,195
Deferred revenue, included in other long-term liabilities	$ 213	$ 294

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Finance lease right of use asset	$ 534		$ 534		$ 129
Operating lease right of use asset	22,392		22,392		25,288
Accumulated amortization	200		200		$ 100
Impairment of leases	$ 0	$ 0	$ 0	$ 0
Minimum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)			1 year
Maximum
Lessee, Lease, Description [Line Items]
Remaining lease term (in years)			8 years
Renewal term (in years)			5 years

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Leases [Abstract]
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Right-of-use Assets	Right-of-use Assets
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Right-of-use Assets	Right-of-use Assets
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of lease liabilities	Current portion of lease liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Current portion of lease liabilities	Current portion of lease liabilities
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term lease liabilities	Long-term lease liabilities
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term lease liabilities	Long-term lease liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Current portion of lease liabilities, Long-term lease liabilities	Current portion of lease liabilities, Long-term lease liabilities
Operating Leases, Right-of-use Assets	$ 22,392	$ 25,288
Finance Leases, Right-of-use Assets	534	129
Right-of-use Assets	22,926	25,417
Operating Leases, Current portion of lease liabilities	3,665	4,773
Finance Leases, Current portion of lease liabilities	97	42
Current portion of lease liabilities	3,762	4,815
Operating Leases, Long-term lease liabilities	21,114	23,687
Finance Leases, Long-term lease liabilities	355	4
Long-term lease liabilities	21,469	23,691
Operating Leases, Total Lease Liabilities	24,779	28,460
Finance Leases, Total Lease Liabilities	452	46
Total Lease Liabilities	$ 25,231	$ 28,506

Leases - Components of Lease Ex

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Leases [Abstract]
Operating lease cost	$ 1,314	$ 1,338	$ 3,996	$ 4,160
Amortization of right-of-use assets	30	35	61	115
Interest on lease liabilities	9	2	17	6
Total Finance lease cost	39	37	78	121
Variable lease cost	412	537	1,443	1,525
Sublease income	(53)	(177)	(368)	(676)
Total lease cost, net	$ 1,712	$ 1,735	5,149	5,130
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases			8,464	9,525
Operating cash flows from finance leases			15	6
Financing cash flows from finance leases			$ 79	$ 144
Weighted Average Remaining Lease term
Operating leases (in years)	6 years 7 months 6 days	5 years 7 months 6 days	6 years 7 months 6 days	5 years 7 months 6 days
Finance leases (in years)	4 years 6 months	1 year 3 months 18 days	4 years 6 months	1 year 3 months 18 days
Weighted Average Discount Rate
Operating leases	5.73%	3.56%	5.73%	3.56%
Finance leases	8.15%	7.04%	8.15%	7.04%

Leases - Maturities of Finance

Leases - Maturities of Finance and Operating Lease Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Operating Leases
Remainder of 2024	$ 1,398
2025	4,656
2026	4,232
2027	4,198
2028	4,094
2029 and beyond	11,397
Total future minimum lease payments, operating leases	29,975
Less: imputed interest	5,196
Total lease liabilities	24,779	$ 28,460
Finance Leases
Remainder of 2024	35
2025	120
2026	117
2027	117
2028	117
2029 and beyond	32
Total future minimum lease payments, finance leases	538
Less: imputed interest	86
Total lease liabilities	$ 452	$ 46

Convertible Preferred Stock a_2

Convertible Preferred Stock and Share Repurchase Program (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Jun. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	May 02, 2023
Equity [Abstract]
Cash payment						$ 6,500
Shares repurchased (in shares)	0	0.1		0	0.4
Repurchase of common stock	$ 0	$ 490	$ 1,879	$ 0	$ 2,400

Debt - Credit Facility (Details

Debt - Credit Facility (Details) - USD ($)			9 Months Ended
Debt - Credit Facility (Details) - USD ($)	Dec. 29, 2023	Dec. 21, 2021	Sep. 30, 2024	Dec. 31, 2023
Line of Credit Facility [Line Items]
Letter of credit outstanding			$ 1,000,000	$ 800,000
Amount drawn on letters of credit			0
Line of credit facility, fair value of amount outstanding			$ 0
Texas Capital Bank
Line of Credit Facility [Line Items]
Interest rate			7.27%
Unused commitment fee rate			0.25%
Revolving Credit Facility \| Texas Capital Bank
Line of Credit Facility [Line Items]
Margin per annum		2.25%
New Credit Facility
Line of Credit Facility [Line Items]
Additional borrowing capacity			$ 24,000,000	24,200,000
Line of credit facility, fair value of amount outstanding				$ 0
New Credit Facility \| Revolving Credit Facility \| Texas Capital Bank
Line of Credit Facility [Line Items]
Term (in years)		3 years
Maximum borrowing capacity		$ 25,000,000
Renewal term (in months)	6 months
New Credit Facility \| Letter of Credit \| Texas Capital Bank
Line of Credit Facility [Line Items]
Maximum borrowing capacity		$ 3,000,000

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Stock-Based Compensation (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Share-Based Payment Arrangement [Abstract]
Stock-based compensation expense	$ 0.4	$ 0.2	$ 1.7	$ 1.2

Employee Benefit Plans - Narrat

Employee Benefit Plans - Narrative (Details) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended
Employee Benefit Plans - Narrative (Details) $ in Thousands	Jan. 31, 2023	Sep. 30, 2024 USD ($)	Jun. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2020 plan
Defined Benefit Plan Disclosure [Line Items]
Number of defined benefit plans (in plans) \| plan							2
Pension plan termination charges		$ 0		$ 0	$ 37,505	$ 0
Nonqualified Plan
Defined Benefit Plan Disclosure [Line Items]
Benefit payments					1,400	$ 1,400
Qualified Plan I \| Qualified Plan
Defined Benefit Plan Disclosure [Line Items]
Termination term (in months)	18 months
Cash contribution, termination amount		1,100	$ 6,100		7,200
Qualified Plan II
Defined Benefit Plan Disclosure [Line Items]
Contribution		$ 2,000			2,000
Benefit payments					$ 1,600

Employee Benefit Plans - Net Pe

Employee Benefit Plans - Net Period of Net Periodic Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Retirement Benefits [Abstract]
Interest cost	$ 702	$ 1,772	$ 4,330	$ 5,316
Expected return on plan assets	(470)	(1,554)	(3,163)	(4,662)
Recognized actuarial loss	137	630	1,420	1,890
Net periodic benefit cost	$ 369	$ 848	$ 2,587	$ 2,544

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 868	$ 1,912	$ (8,207)	$ 1,620
Effective income tax rate	85.90%	75.60%	22.80%	79.90%

Earnings (Loss) Per Share - Rec

Earnings (Loss) Per Share - Reconciliations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income (loss)	$ 142	$ (27,834)	$ (171)	$ 618	$ 580	$ (791)	$ (27,863)	$ 407
Denominator:
Basic EPS denominator: weight-average common shares outstanding (in shares)	7,324			7,239			7,273	7,340
Diluted EPS denominator (in shares)	7,398			7,314			7,273	7,509
Basic (loss) income per Common Share (in dollars per share)	$ 0.02			$ 0.09			$ (3.83)	$ 0.06
Diluted (loss) income per Common Share (in dollars per share)	$ 0.02			$ 0.08			$ (3.83)	$ 0.05

Earnings (Loss) Per Share - Nar

Earnings (Loss) Per Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
Earnings (Loss) Per Share - Narrative (Details) - shares	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Employee Stock Option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted EPS (in shares)	354,239	132,193	335,431	8,098
Restricted Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Shares excluded from calculation of diluted EPS (in shares)	13,567	58,869	23,114	40,389

Comprehensive Income (Loss) (De

Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	$ 20,608	$ 19,962	$ 19,857	$ 20,550	$ 20,965	$ 18,808	$ 19,857	$ 18,808
Other comprehensive (loss) income, net of tax, before reclassifications							(1,945)	1,421
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income							29,626	1,645
Total other comprehensive income (loss), net of tax	94	27,776	(189)	(56)	502	2,620	27,681	3,066
Ending balance	21,049	20,608	19,962	20,504	20,550	20,965	21,049	20,504
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance	(16,503)	(44,279)	(44,090)	(45,180)	(45,682)	(48,302)	(44,090)	(48,302)
Total other comprehensive income (loss), net of tax	94	27,776	(189)	(56)	502	2,620
Ending balance	(16,409)	$ (16,503)	(44,279)	(45,236)	$ (45,180)	(45,682)	(16,409)	(45,236)
Defined Benefit Pension Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			(42,456)			(44,120)	(42,456)	(44,120)
Other comprehensive (loss) income, net of tax, before reclassifications							0	0
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income							29,626	1,645
Total other comprehensive income (loss), net of tax							29,626	1,645
Ending balance	(12,830)			(42,475)			(12,830)	(42,475)
Foreign Currency Items
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning balance			$ (1,634)			$ (4,182)	(1,634)	(4,182)
Other comprehensive (loss) income, net of tax, before reclassifications							(1,945)	1,421
Amounts reclassified from accumulated other comprehensive income, net of tax, to other, net, on the condensed consolidated statements of comprehensive income							0	0
Total other comprehensive income (loss), net of tax							(1,945)	1,421
Ending balance	$ (3,579)			$ (2,761)			$ (3,579)	$ (2,761)

Restructuring Activities - Narr

Restructuring Activities - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended	36 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 meeting	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2026 USD ($)
Restructuring Cost and Reserve [Line Items]
Number of meetings held, minimum (in meetings) \| meeting			200
Restructuring expenses	$ 836	$ 0		$ 2,116	$ 0	$ 5,700
Expected cost to be incurred	$ 10,100			$ 10,100
Forecast
Restructuring Cost and Reserve [Line Items]
Reorganization cost reductions							$ 16,000

Restructuring Activities - Rest

Restructuring Activities - Restructuring Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 836	$ 0	$ 2,116	$ 0	$ 5,700
Consulting and employee expense
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	215		677
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	243		1,025
Facility and other expenses
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 378		$ 414

Restructuring Activities - Chan

Restructuring Activities - Changes in Liabilities (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Restructuring Reserve [Roll Forward]
Beginning balance:	$ 3,756
Additions	1,962
Payments and adjustment	(5,455)
Ending balance:	263
Consulting and Employee Expense
Restructuring Reserve [Roll Forward]
Beginning balance:	3,574
Additions	673
Payments and adjustment	(4,247)
Ending balance:	0
Severance
Restructuring Reserve [Roll Forward]
Beginning balance:	144
Additions	1,026
Payments and adjustment	(907)
Ending balance:	263
Facility, asset impairment and other expense
Restructuring Reserve [Roll Forward]
Beginning balance:	38
Additions	263
Payments and adjustment	(301)
Ending balance:	$ 0

Segment Reporting - Narrative (

Segment Reporting - Narrative (Details)	9 Months Ended
Segment Reporting - Narrative (Details)	Sep. 30, 2024 segment
Segment Reporting [Abstract]
Number of reportable segments	4

Segment Reporting - Financial I

Segment Reporting - Financial Information by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Segment Reporting Information [Line Items]
Revenue	$ 47,630	$ 47,119	$ 138,113	$ 142,001
Segment operating expense	44,694	43,253	131,361	133,313
Contribution margin (loss)	2,936	3,866	6,752	8,688
Overhead allocation	0	0	0	0
Depreciation and amortization	1,038	952	3,106	3,051
Operating income (loss)	1,898	2,914	3,646	5,637
Operating Segments \| Marketing Services
Segment Reporting Information [Line Items]
Revenue	9,050	10,591	25,709	32,751
Segment operating expense	6,158	8,370	19,355	26,464
Contribution margin (loss)	2,892	2,221	6,354	6,287
Overhead allocation	792	706	2,454	2,261
Depreciation and amortization	167	71	509	167
Operating income (loss)	1,933	1,444	3,391	3,859
Operating Segments \| Customer Care
Segment Reporting Information [Line Items]
Revenue	13,068	11,832	37,894	38,372
Segment operating expense	9,995	9,380	28,856	30,259
Contribution margin (loss)	3,073	2,452	9,038	8,113
Overhead allocation	567	668	1,761	2,102
Depreciation and amortization	44	57	160	438
Operating income (loss)	2,462	1,727	7,117	5,573
Operating Segments \| Sales Services
Segment Reporting Information [Line Items]
Revenue	4,205	2,166	13,281	7,253
Segment operating expense	3,318	1,959	9,891	6,275
Contribution margin (loss)	887	207	3,390	978
Overhead allocation	189	0	587	0
Depreciation and amortization	198	196	589	586
Operating income (loss)	500	11	2,214	392
Operating Segments \| Fulfillment and Logistics Services
Segment Reporting Information [Line Items]
Revenue	21,307	22,530	61,229	63,625
Segment operating expense	19,192	18,995	54,348	54,435
Contribution margin (loss)	2,115	3,535	6,881	9,190
Overhead allocation	775	680	2,403	2,203
Depreciation and amortization	266	249	757	736
Operating income (loss)	1,074	2,606	3,721	6,251
Restructuring
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Segment operating expense	836	0	2,116	0
Contribution margin (loss)	(836)	0	(2,116)	0
Overhead allocation	0	0	0	0
Depreciation and amortization	0	0	0	0
Operating income (loss)	(836)	0	(2,116)	0
Unallocated Corporate
Segment Reporting Information [Line Items]
Revenue	0	0	0	0
Segment operating expense	5,195	4,549	16,795	15,880
Contribution margin (loss)	(5,195)	(4,549)	(16,795)	(15,880)
Overhead allocation	(2,323)	(2,054)	(7,205)	(6,566)
Depreciation and amortization	363	379	1,091	1,124
Operating income (loss)	$ (3,235)	$ (2,874)	$ (10,681)	$ (10,438)