Hudson Global (HSON) 8 Aug 24 2024 Q2 Earnings call transcript

In a recent earnings call, Hudson Global, a leading talent solutions provider, shared insights into their performance during the second quarter of 2024. Despite facing challenges in the current talent market, Hudson Global showcased resilience and optimism for future growth. Here are some key takeaways from the call.

Financial Performance Hudson Global reported a decrease in revenue and adjusted net revenue in constant currency, with the Americas, Asia Pacific, and EMEA regions experiencing significant drops. The company also reported a net loss for the quarter. However, the management remains optimistic about the future and believes the results of their internal changes and cost-saving initiatives will improve bottom-line results.

Strategic Acquisitions and Expansion The company's strategic acquisitions, such as Striver in the UAE and Executive Solutions earlier this year, have expanded Hudson Global's geographical footprint and service offerings. These moves position Hudson RPO to continue providing best-in-class services on a global scale.

Client Behavior and Market Trends The call highlighted a hesitation in the market for larger-scale hiring projects, with a shift towards smaller hiring initiatives. However, the company expects this trend to pick up in the third and fourth quarters. RPO continues to be an avenue for cost savings and scalability for clients, with no notable shift in client behavior or engagement with RPO services.

Share Repurchase Activity Hudson Global's share repurchase program, initiated last year, has seen significant progress, with over 150,000 shares repurchased for $2.5 million. The company aims to repurchase 10% of its shares this year, subject to market conditions and the availability of willing sellers.

Looking Ahead Despite the challenges faced in the second quarter, Hudson Global remains confident in its ability to deliver value to shareholders and serve the needs of existing and new clients. The company believes its stock is undervalued and continues to view share repurchases as an attractive use of capital.

In conclusion, Hudson Global's second-quarter earnings call painted a mixed picture of challenges and opportunities. The company's strategic moves, coupled with its optimistic outlook, suggest a resilient business poised for future growth.