Magic Software Enterprises (NASDAQ:MGIC), a global provider of IT consulting services has reported its financial results for the first quarter of 2024, ending March 31.

During the quarter, the company's revenue decreased by 8.2% to $130.7 million, compared to $142.4 million for the same period in the previous year.

Despite this decline, Magic Software remains optimistic, reaffirming its annual revenue guidance for 2024 between $540 million and $550 million.

The results reflect the impact of an unexpected drop in demand from key U.S.-based customers during the latter half of 2023, particularly for professional services.