Hudson Global (HSON) Q3 Earnings call transcript Nov 12, 2024

Hudson Global, a leading workforce solutions provider, recently held its third-quarter earnings call for 2024. The call, led by CEO Jeff Eberwein, CFO Matt Diamond, and Global CEO of Hudson RPO, Jake Zabkowicz, provided insights into the company's financial performance and strategic initiatives. Here are the key takeaways from the call.

Financial Performance:

Hudson Global reported a revenue of $36.9 million for the third quarter, down 8% year-over-year in constant currency. The adjusted net revenue stood at $18.6 million, down 5% year-over-year in constant currency. The adjusted EBITDA for the quarter was $0.8 million, compared to $2 million in the same period last year. The net loss for the quarter was $0.8 million or $0.28 per diluted share, compared to net income of $0.5 million or $0.17 per diluted share in the same period last year.

Regional Differences:

The call highlighted significant differences in activity across regions. The Americas business saw a revenue increase of 6%, while the EMEA business reported a 7% increase in revenue. In contrast, the Asia Pacific business experienced a 15% decrease in revenue. The company attributed these differences to varying hiring volumes and client demands across regions.

Strategic Hires and Expansion:

Hudson Global has been actively hiring and expanding its capabilities to enhance its geographical reach and service offerings. The company has made strategic hires to strengthen its industry expertise and global reputation. These efforts have resulted in the company's recognition as a top enterprise RPO provider for the 16th consecutive year.

Market Challenges:

The call acknowledged the challenges in the current talent market, particularly in the financial sector in Asia Pacific. The company has had to react to the market conditions and rightsize its business to support clients' demands. Despite these challenges, the company remains optimistic about its future prospects and the feedback it is receiving from clients.

Acquisition Strategy:

Hudson Global has been actively looking for acquisition targets to enhance its business, focusing on geography and sector verticals. The company prefers organic growth but is open to strategic acquisitions that can add value to its existing operations. The company has also been actively buying back stock and expects to continue doing so, reflecting its confidence in its stock and strategic vision.

Outlook:

The call concluded with a positive outlook for the future, acknowledging the challenges faced in the current market but expressing confidence in the company's ability to deliver value to shareholders and serve the needs of clients. The company is optimistic about its strategic initiatives and the potential for growth in the coming quarters.

In conclusion, Hudson Global's earnings call provided a comprehensive overview of the company's financial performance and strategic initiatives. The call highlighted the challenges in the current market and the company's ability to navigate these challenges while maintaining a positive outlook for the future. With a focus on strategic hiring, expansion, and acquisitions, Hudson Global is well-positioned to capitalize on opportunities in the evolving workforce solutions landscape.