Hudson Global Reports 2024 Second Quarter Results
Hudson Global (HSON) reported its Q2 2024 financial results, showing a 20.5% decrease in revenue to $35.7 million compared to Q2 2023. The company experienced a net loss of $0.4 million, or $0.15 per diluted share, contrasting with a net income of $0.6 million in the same period last year. Adjusted EBITDA declined to $0.7 million from $2.6 million in Q2 2023.
The company attributed the slowdown to reduced hiring activity across its client base. However, Hudson Global highlighted new business wins expected to ramp up in coming months. The company also expanded its reach through the acquisition of Striver, a UAE-based talent acquisition firm. Despite challenges, Hudson Global maintains a strong cash position of $15.3 million and continues its share repurchase program, having bought back $2.1 million of stock year-to-date under a new $5 million authorization.
Hudson Global (HSON) ha riportato i risultati finanziari del secondo trimestre del 2024, mostrando un calo del 20,5% dei ricavi a 35,7 milioni di dollari rispetto al secondo trimestre del 2023. L'azienda ha subito una perdita netta di 0,4 milioni di dollari, ovvero 0,15 dollari per azione diluita, in contrapposizione a un utile netto di 0,6 milioni di dollari nello stesso periodo dell'anno scorso. L'EBITDA rettificato è diminuito a 0,7 milioni di dollari rispetto ai 2,6 milioni di dollari del secondo trimestre del 2023.
L'azienda ha attribuito il rallentamento a una riduzione dell'attività di assunzione tra i suoi clienti. Tuttavia, Hudson Global ha messo in evidenza nuove opportunità di business che si prevede aumenteranno nei prossimi mesi. L'azienda ha anche ampliato la sua portata attraverso l'acquisizione di Striver, una società di acquisizione di talenti con sede negli Emirati Arabi Uniti. Nonostante le sfide, Hudson Global mantiene una solida posizione di liquidità di 15,3 milioni di dollari e continua il suo programma di riacquisto di azioni, avendo ricomprato azioni per 2,1 milioni di dollari dall'inizio dell'anno sotto una nuova autorizzazione di 5 milioni di dollari.
Hudson Global (HSON) reportó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución del 20,5% en los ingresos hasta 35,7 millones de dólares en comparación con el segundo trimestre de 2023. La empresa experimentó una pérdida neta de 0,4 millones de dólares, o 0,15 dólares por acción diluida, en contraste con una ganancia neta de 0,6 millones de dólares en el mismo periodo del año pasado. El EBITDA ajustado disminuyó a 0,7 millones de dólares desde 2,6 millones de dólares en el segundo trimestre de 2023.
La compañía atribuyó la desaceleración a la reducción de la actividad de contratación en su base de clientes. Sin embargo, Hudson Global destacó nuevas oportunidades de negocio que se espera que se incrementen en los próximos meses. La empresa también amplió su alcance mediante la adquisición de Striver, una firma de adquisición de talento con sede en los Emiratos Árabes Unidos. A pesar de los desafíos, Hudson Global mantiene una sólida posición de efectivo de 15,3 millones de dólares y continúa con su programa de recompra de acciones, habiendo recomprado acciones por un total de 2,1 millones de dólares desde el inicio del año bajo una nueva autorización de 5 millones de dólares.
허드슨 글로벌 (HSON)은 2024년 2분기 재무 결과를 보고하며, 매출이 20.5% 감소하여 3570만 달러에 이르렀다고 발표했습니다. 이는 2023년 2분기와 비교한 수치입니다. 회사는 40만 달러의 순손실을 경험했으며, 이는 희석 주당 0.15달러에 해당합니다. 이는 지난해 같은 기간의 60만 달러 순이익과 대조적입니다. 조정된 EBITDA는 2023년 2분기 260만 달러에서 70만 달러로 감소했습니다.
회사는 고객 기반의 채용 활동 감소에 리세스를 돌렸습니다. 그러나 허드슨 글로벌은 향후 몇 달 간 증가할 것으로 예상되는 새로운 비즈니스 성과를 강조했습니다. 또한, 아랍에미리트에 본사를 두고 있는 인재 채용 회사인 Striver 인수를 통해 사업 범위를 확대했습니다. 어려움에도 불구하고 허드슨 글로벌은 1530만 달러의 강력한 현금 보유액을 유지하며, 500만 달러의 새로운 승인 아래 지금까지 210만 달러의 주식을 재매입하며 주식 재매입 프로그램을 계속하고 있습니다.
Hudson Global (HSON) a publié ses résultats financiers pour le deuxième trimestre 2024, révélant une baisse de 20,5 % de revenu à 35,7 millions de dollars par rapport au deuxième trimestre 2023. L’entreprise a subi une perte nette de 0,4 million de dollars, soit 0,15 dollar par action diluée, contrastant avec un bénéfice net de 0,6 million de dollars au cours de la même période de l'année précédente. Le BAIIA ajusté a chuté à 0,7 million de dollars contre 2,6 millions de dollars au deuxième trimestre 2023.
L’entreprise a attribué ce ralentissement à la réduction de l’activité d’embauche de sa clientèle. Cependant, Hudson Global a souligné de nouvelles opportunités commerciales qui devraient augmenter dans les mois à venir. L’entreprise a également élargi sa portée grâce à l'acquisition de Striver, une société de recrutement basée aux Émirats Arabes Unis. Malgré ces défis, Hudson Global maintient une solide position de liquidités de 15,3 millions de dollars et continue son programme de rachat d'actions, ayant racheté 2,1 millions de dollars d'actions depuis le début de l'année dans le cadre d'une nouvelle autorisation de 5 millions de dollars.
Hudson Global (HSON) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und eine Reduzierung der Einnahmen um 20,5% auf 35,7 Millionen Dollar im Vergleich zum zweiten Quartal 2023 festgestellt. Das Unternehmen verzeichnete einen Nettoverlust von 0,4 Millionen Dollar, was 0,15 Dollar pro verwässerter Aktie entspricht und damit im Gegensatz zu einem Nettogewinn von 0,6 Millionen Dollar im gleichen Zeitraum des Vorjahres steht. Das bereinigte EBITDA sank von 2,6 Millionen Dollar im zweiten Quartal 2023 auf 0,7 Millionen Dollar.
Das Unternehmen führte das verlangsamte Wachstum auf eine reduzierte Einstellungsaktivität bei seinen Kunden zurück. Dennoch hob Hudson Global neue Geschäftsgewinne hervor, von denen erwartet wird, dass sie in den kommenden Monaten zunehmen werden. Zudem erweiterte das Unternehmen seinen Einfluss durch die Übernahme von Striver, einer in den Vereinigten Arabischen Emiraten ansässigen Personalvermittlungsfirma. Trotz der Herausforderungen hält Hudson Global eine starke Liquiditätsposition von 15,3 Millionen Dollar und setzt sein Aktienrückkaufprogramm fort, wobei seit Jahresbeginn Aktien im Wert von 2,1 Millionen Dollar im Rahmen einer neuen Genehmigung von 5 Millionen Dollar zurückgekauft wurden.
- New $5 million share repurchase program authorized, with $2.1 million of stock repurchased year-to-date
- Acquisition of Striver, expanding geographic reach and service offerings
- Strong cash position of $15.3 million at the end of Q2 2024
- New business wins expected to ramp up in coming months
- Cost-saving initiatives beginning to show results in bottom line
- Revenue decreased 20.5% to $35.7 million in Q2 2024 compared to Q2 2023
- Net loss of $0.4 million, or $0.15 per diluted share, compared to net income of $0.6 million in Q2 2023
- Adjusted EBITDA decreased to $0.7 million from $2.6 million in Q2 2023
- Adjusted net revenue decreased 22.0% to $17.6 million
- Market-driven slowdown in hiring activity across existing client base
Insights
Hudson Global's Q2 2024 results reveal significant challenges. Revenue dropped
The market-driven slowdown in hiring activity is evident across all regions, with Americas, Asia Pacific and EMEA all experiencing double-digit declines in revenue. However, the company's cost-saving initiatives are starting to show results and new business wins are expected to ramp up. The acquisitions of Striver and Executive Solutions could provide future growth opportunities.
Despite challenges, Hudson Global maintains a solid cash position of
Hudson Global's Q2 results reflect broader market trends in the talent solutions industry. The global slowdown in hiring activity has significantly impacted the company's performance across all regions. This aligns with reports from other major players in the sector, indicating a widespread cooling of the job market.
However, Hudson's strategic moves, including the acquisitions of Striver and Executive Solutions, demonstrate a proactive approach to expanding service offerings and geographic reach. This could position the company well for a potential market rebound. The focus on winning new business and implementing cost-saving measures shows adaptability in a challenging environment.
The company's share repurchase program and substantial NOL carryforward provide some financial flexibility and potential for future value creation. Investors should monitor for signs of market recovery and the success of Hudson's new business initiatives in the coming quarters to gauge the company's ability to return to growth.
OLD GREENWICH, Conn., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Hudson Global, Inc. (Nasdaq: HSON) ("Hudson Global" or "the Company"), a leading global total talent solutions company, announced today financial results for the second quarter ended June 30, 2024.
2024 Second Quarter Summary
- Revenue of
$35.7 million decreased20.5% from the second quarter of 2023 and19.9% in constant currency. - Adjusted net revenue of
$17.6 million decreased22.0% from the second quarter of 2023 and21.7% in constant currency. - Net loss was
$0.4 million , or$0.15 per diluted share, compared to net income of$0.6 million , or$0.18 per diluted share, for the second quarter of 2023. Adjusted net income per diluted share (non-GAAP measure)* was$0.04 compared to adjusted net income per diluted share of$0.36 in the second quarter of 2023. - Adjusted EBITDA (non-GAAP measure)* was
$0.7 million , a decrease versus adjusted EBITDA of$2.6 million in the second quarter of 2023. - The Company's Board of Directors authorized a new
$5 million common stock repurchase program effective August 8, 2023 and repurchased$1.5 million of stock in the second quarter of 2024. Year to date, the Company has repurchased$2.1 million of stock under this program. - Total cash including restricted cash was
$15.3 million at June 30, 2024.
“In the second quarter of 2024 we continued to see the impact of a market-driven slowdown in hiring activity across our existing client base,” said Jeff Eberwein, Chief Executive Officer of Hudson Global. “During the quarter, we continued to win new business, which we expect to ramp up in the coming months. Furthermore, we are seeing the results of the internal changes and cost-saving initiatives we implemented earlier this year beginning to show through in our bottom line results.”
Jake Zabkowicz added, “In the second quarter of 2024, we expanded our geographic reach and service offerings with the acquisition of Striver, a UAE-based talent acquisition firm. This acquisition, in addition to our acquisition of Executive Solutions in the first quarter and our continued enhancement of internal talent, enable Hudson RPO to continue providing best-in-class service on a global scale. We are confident in our ability to manage the business in this environment and are working hard to best position the business for future growth.”
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Constant currency, adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.
Regional Highlights
All growth rate comparisons are in constant currency.
Americas
In the second quarter of 2024, Americas revenue of
Asia Pacific
Asia Pacific revenue of
Europe, Middle East, and Africa ("EMEA")
EMEA revenue in the second quarter of 2024 decreased
Corporate Costs
In the second quarter of 2024, the Company's corporate costs were
Liquidity and Capital Resources
The Company ended the second quarter of 2024 with
Share Repurchase Program
The Company approved a new
NOL Carryforward
As of December 31, 2023, Hudson Global had
Conference Call/Webcast
The Company will conduct a conference call today, Thursday, August 8, 2024 at 10:00 a.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at hudsonrpo.com.
If you wish to join the conference call, please use the dial-in information below:
- Toll-Free Dial-In Number: (833) 816-1383
- International Dial-In Number: (412) 317-0476
The archived call will be available on the investor information section of the Company's website at hudsonrpo.com.
About Hudson Global
Hudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients’ strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.
For more information, please visit us at hudsonrpo.com or contact us at ir@hudsonrpo.com.
Investor Relations:
The Equity Group
Lena Cati
212 836-9611 / lcati@equityny.com
Forward-Looking Statements
This press release contains statements that the Company believes to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact included in this press release, including statements regarding the Company's future financial condition, results of operations, business operations and business prospects, are forward-looking statements. Words such as “anticipate,” "estimate," "expect," "project," "intend," "plan," "predict," "believe" and similar words, expressions and variations of these words and expressions are intended to identify forward-looking statements. All forward-looking statements are subject to important factors, risks, uncertainties, and assumptions, including industry and economic conditions that could cause actual results to differ materially from those described in the forward-looking statements. Such factors, risks, uncertainties and assumptions include, but are not limited to, global economic fluctuations; the Company’s ability to successfully achieve its strategic initiatives ; risks related to potential acquisitions or dispositions of businesses by the Company; the Company’s ability to operate successfully as a company focused on its RPO business; risks related to fluctuations in the Company’s operating results from quarter to quarter due to various factors such as rising inflationary pressures and interest rates; the loss of or material reduction in our business with any of the Company’s largest customers; the ability of clients to terminate their relationship with the Company at any time; competition in the Company’s markets; the negative cash flows and operating losses that may recur in the future; risks relating to how future credit facilities may affect or restrict our operating flexibility; risks associated with the Company’s investment strategy; risks related to international operations, including foreign currency fluctuations, political events, natural disasters or health crises, including the Russia-Ukraine war, the Hamas-Israel war, and potential conflict in the Middle East; the Company’s dependence on key management personnel; the Company’s ability to attract and retain highly skilled professionals, management, and advisors; the Company’s ability to collect accounts receivable; the Company’s ability to maintain costs at an acceptable level; the Company’s heavy reliance on information systems and the impact of potentially losing or failing to develop technology; risks related to providing uninterrupted service to clients; the Company’s exposure to employment-related claims from clients, employers and regulatory authorities, current and former employees in connection with the Company’s business reorganization initiatives, and limits on related insurance coverage; the Company’s ability to utilize net operating loss carryforwards; volatility of the Company’s stock price; the impact of government regulations; restrictions imposed by blocking arrangements; risks related to the use of new and evolving technologies; and the adverse impacts of cybersecurity threats and attacks. Additional information concerning these, and other factors is contained in the Company's filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this document. The Company assumes no obligation, and expressly disclaims any obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Financial Tables Follow
| HUDSON GLOBAL, INC. | |||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in thousands, except per share amounts) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 35,712 | $ | 44,897 | $ | 69,603 | $ | 87,969 | |||||||
| Operating expenses: | |||||||||||||||
| Direct contracting costs and reimbursed expenses | 18,097 | 22,314 | 35,658 | 43,622 | |||||||||||
| Salaries and related | 14,325 | 17,393 | 29,491 | 34,871 | |||||||||||
| Office and general | 2,412 | 2,549 | 5,341 | 5,488 | |||||||||||
| Marketing and promotion | 778 | 932 | 1,656 | 1,913 | |||||||||||
| Depreciation and amortization | 287 | 354 | 684 | 702 | |||||||||||
| Total operating expenses | 35,899 | 43,542 | 72,830 | 86,596 | |||||||||||
| Operating (loss) income | (187 | ) | 1,355 | (3,227 | ) | 1,373 | |||||||||
| Non-operating (expense) income: | |||||||||||||||
| Interest income, net | 94 | 130 | 187 | 194 | |||||||||||
| Other (expense) income, net | (95 | ) | (50 | ) | (134 | ) | 83 | ||||||||
| (Loss) income before income taxes | (188 | ) | 1,435 | (3,174 | ) | 1,650 | |||||||||
| Provision for income taxes | 253 | 857 | 165 | 718 | |||||||||||
| Net (loss) income | $ | (441 | ) | $ | 578 | $ | (3,339 | ) | $ | 932 | |||||
| Earnings (loss) per share: | |||||||||||||||
| Basic | $ | (0.15 | ) | $ | 0.19 | $ | (1.10 | ) | $ | 0.30 | |||||
| Diluted | $ | (0.15 | ) | $ | 0.18 | $ | (1.10 | ) | $ | 0.30 | |||||
| Weighted-average shares outstanding: | |||||||||||||||
| Basic | 3,011 | 3,084 | 3,026 | 3,059 | |||||||||||
| Diluted | 3,011 | 3,138 | 3,026 | 3,130 | |||||||||||
| HUDSON GLOBAL, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (in thousands, except per share amounts) | ||||||||
| (unaudited) | ||||||||
| June 30, 2024 | December 31, 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 14,664 | $ | 22,611 | ||||
| Accounts receivable, less allowance for expected credit losses of | 24,512 | 19,710 | ||||||
| Restricted cash, current | 420 | 354 | ||||||
| Prepaid and other | 2,422 | 3,172 | ||||||
| Total current assets | 42,018 | 45,847 | ||||||
| Property and equipment, net of accumulated depreciation of | 336 | 421 | ||||||
| Operating lease right-of-use assets | 1,056 | 1,431 | ||||||
| Goodwill | 5,724 | 5,749 | ||||||
| Intangible assets, net of accumulated amortization of | 3,040 | 3,628 | ||||||
| Deferred tax assets, net | 3,526 | 3,360 | ||||||
| Restricted cash | 195 | 205 | ||||||
| Other assets | 235 | 317 | ||||||
| Total assets | $ | 56,130 | $ | 60,958 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,115 | $ | 868 | ||||
| Accrued salaries, commissions, and benefits | 5,428 | 4,939 | ||||||
| Accrued expenses and other current liabilities | 5,427 | 4,635 | ||||||
| Operating lease obligations, current | 764 | 768 | ||||||
| Total current liabilities | 12,734 | 11,210 | ||||||
| Income tax payable | 90 | 87 | ||||||
| Operating lease obligations | 292 | 664 | ||||||
| Other liabilities | 450 | 443 | ||||||
| Total liabilities | 13,566 | 12,404 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, 3,896 shares issued; 2,751 and 2,807 shares outstanding, respectively | 4 | 4 | ||||||
| Additional paid-in capital | 493,500 | 493,036 | ||||||
| Accumulated deficit | (428,586 | ) | (425,247 | ) | ||||
| Accumulated other comprehensive loss, net of applicable tax | (1,808 | ) | (1,290 | ) | ||||
| Treasury stock, 1,252 and 1,089 shares, respectively, at cost | (20,546 | ) | (17,949 | ) | ||||
| Total stockholders’ equity | 42,564 | 48,554 | ||||||
| Total liabilities and stockholders’ equity | $ | 56,130 | $ | 60,958 | ||||
| HUDSON GLOBAL, INC. | ||||||||||||||||||
| SEGMENT ANALYSIS - QUARTER TO DATE | ||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | ||||||||||||||||||
| (in thousands) | ||||||||||||||||||
| (unaudited) | ||||||||||||||||||
| For The Three Months Ended June 30, 2024 | Americas | Asia Pacific | EMEA | Corporate | Total | |||||||||||||
| Revenue, from external customers | $ | 6,972 | $ | 22,649 | $ | 6,091 | $ | — | $ | 35,712 | ||||||||
| Adjusted net revenue, from external customers (1) | $ | 6,344 | $ | 7,627 | $ | 3,644 | $ | — | $ | 17,615 | ||||||||
| Net loss | $ | (441 | ) | |||||||||||||||
| Provision from income taxes | 253 | |||||||||||||||||
| Interest income, net | (94 | ) | ||||||||||||||||
| Depreciation and amortization | 287 | |||||||||||||||||
| EBITDA (loss) (2) | $ | 402 | $ | 224 | $ | 149 | $ | (770 | ) | 5 | ||||||||
| Non-operating expense (income), including corporate administration charges | 81 | 287 | 78 | (351 | ) | 95 | ||||||||||||
| Stock-based compensation expense | 5 | 101 | 46 | 35 | 187 | |||||||||||||
| Non-recurring severance and professional fees | 131 | 151 | — | 176 | 458 | |||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 619 | $ | 763 | $ | 273 | $ | (910 | ) | $ | 745 | |||||||
| For The Three Months Ended June 30, 2023 | Americas | Asia Pacific | EMEA | Corporate | Total | |||||||||||||
| Revenue, from external customers | $ | 8,569 | $ | 28,402 | $ | 7,926 | $ | — | $ | 44,897 | ||||||||
| Adjusted net revenue, from external customers (1) | $ | 8,321 | $ | 9,581 | $ | 4,681 | $ | — | $ | 22,583 | ||||||||
| Net income | $ | 578 | ||||||||||||||||
| Provision for income taxes | 857 | |||||||||||||||||
| Interest income, net | (130 | ) | ||||||||||||||||
| Depreciation and amortization | 354 | |||||||||||||||||
| EBITDA (loss) (2) | $ | (466 | ) | $ | 2,131 | $ | 851 | $ | (857 | ) | 1,659 | |||||||
| Non-operating expense (income), including corporate administration charges | 223 | 363 | 41 | (577 | ) | 50 | ||||||||||||
| Stock-based compensation expense | 96 | 48 | 51 | 188 | 383 | |||||||||||||
| Non-recurring severance and professional fees | 71 | 1 | 124 | 249 | 445 | |||||||||||||
| Compensation expense related to acquisitions (3) | 112 | — | — | — | 112 | |||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 36 | $ | 2,543 | $ | 1,067 | $ | (997 | ) | $ | 2,649 | |||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. |
| (2) | Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating income (expense), stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. |
| (3) | Represents compensation expense payable per the terms of acquisition agreements. |
| HUDSON GLOBAL, INC. | |||||||||||||||||||
| SEGMENT ANALYSIS - YEAR TO DATE (continued) | |||||||||||||||||||
| RECONCILIATION OF ADJUSTED EBITDA | |||||||||||||||||||
| (in thousands) | |||||||||||||||||||
| (unaudited) | |||||||||||||||||||
| For The Six Months Ended June 30, 2024 | Americas | Asia Pacific | EMEA | Corporate | Total | ||||||||||||||
| Revenue, from external customers | $ | 12,966 | $ | 44,158 | $ | 12,479 | $ | — | $ | 69,603 | |||||||||
| Adjusted net revenue, from external customers (1) | $ | 12,149 | $ | 14,173 | $ | 7,623 | $ | — | $ | 33,945 | |||||||||
| Net loss | $ | (3,339 | ) | ||||||||||||||||
| Provision from income taxes | 165 | ||||||||||||||||||
| Interest income, net | (187 | ) | |||||||||||||||||
| Depreciation and amortization | 684 | ||||||||||||||||||
| EBITDA (loss) (2) | $ | (462 | ) | $ | (377 | ) | $ | 417 | $ | (2,255 | ) | (2,677 | ) | ||||||
| Non-operating expense (income), including corporate administration charges | 143 | 405 | 88 | (502 | ) | 134 | |||||||||||||
| Stock-based compensation expense | 99 | 228 | 104 | 134 | 565 | ||||||||||||||
| Non-recurring severance and professional fees | 131 | 337 | 7 | 706 | 1,181 | ||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | (89 | ) | $ | 593 | $ | 616 | $ | (1,917 | ) | $ | (797 | ) | ||||||
| For The Six Months Ended June 30, 2023 | Americas | Asia Pacific | EMEA | Corporate | Total | ||||||||||||||
| Revenue, from external customers | $ | 17,841 | $ | 55,678 | $ | 14,450 | $ | — | $ | 87,969 | |||||||||
| Adjusted net revenue, from external customers (1) | $ | 17,243 | $ | 18,040 | $ | 9,064 | $ | — | $ | 44,347 | |||||||||
| Net income | $ | 932 | |||||||||||||||||
| Provision for income taxes | 718 | ||||||||||||||||||
| Interest income, net | (194 | ) | |||||||||||||||||
| Depreciation and amortization | 702 | ||||||||||||||||||
| EBITDA (loss) (2) | $ | (896 | ) | $ | 3,565 | $ | 1,295 | $ | (1,806 | ) | 2,158 | ||||||||
| Non-operating expense (income), including corporate administration charges | 339 | 604 | 66 | (1,092 | ) | (83 | ) | ||||||||||||
| Stock-based compensation expense | 257 | 121 | 128 | 350 | 856 | ||||||||||||||
| Non-recurring severance and professional fees | 105 | 1 | 124 | 411 | 641 | ||||||||||||||
| Compensation expense related to acquisitions (3) | 225 | — | — | — | 225 | ||||||||||||||
| Adjusted EBITDA (loss) (2) | $ | 30 | $ | 4,291 | $ | 1,613 | $ | (2,137 | ) | $ | 3,797 | ||||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. |
| (2) | Non-GAAP earnings before interest, income taxes, and depreciation and amortization (“EBITDA”) and non-GAAP earnings before interest, income taxes, depreciation and amortization, non-operating (income) expense, stock-based compensation expense, and other non-recurring severance and professional fees (“Adjusted EBITDA”) are presented to provide additional information about the Company's operations on a basis consistent with the measures which the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for operating income, cash flows from operating activities, and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as a measure of the Company's profitability or liquidity. Furthermore, EBITDA and Adjusted EBITDA as presented above may not be comparable with similarly titled measures reported by other companies. |
| (3) | Represents compensation expense payable per the terms of acquisition agreements. |
| HUDSON GLOBAL, INC. RECONCILIATION OF CONSTANT CURRENCY MEASURES (in thousands) (unaudited) |
The Company operates on a global basis, with the majority of its revenue generated outside of the United States. Accordingly, fluctuations in foreign currency exchange rates can affect its results of operations. Constant currency information compares financial results between periods as if exchange rates had remained constant period-over-period. The Company defines the term “constant currency” to mean that financial data for a previously reported period are translated into U.S. dollars using the same foreign currency exchange rates that were used to translate financial data for the current period. Changes in revenue, adjusted net revenue, selling, general and administrative expenses ("SG&A"), other non-operating income (expense), operating income (loss) and EBITDA (loss) include the effect of changes in foreign currency exchange rates. The Company’s management reviews and analyzes business results in constant currency and believes these results better represent the Company’s underlying business trends. The Company believes that these calculations are a useful measure, indicating the actual change in operations. There are no significant gains or losses on foreign currency transactions between subsidiaries. Therefore, changes in foreign currency exchange rates generally impact only reported earnings.
| Three Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | ||||||||||||||
| As | As | Currency | Constant | ||||||||||||
| reported | reported | translation | currency | ||||||||||||
| Revenue: | |||||||||||||||
| Americas | $ | 6,972 | $ | 8,569 | $ | (8 | ) | $ | 8,561 | ||||||
| Asia Pacific | 22,649 | 28,402 | (352 | ) | 28,050 | ||||||||||
| EMEA | 6,091 | 7,926 | 62 | 7,988 | |||||||||||
| Total | $ | 35,712 | $ | 44,897 | $ | (298 | ) | $ | 44,599 | ||||||
| Adjusted net revenue (1) | |||||||||||||||
| Americas | $ | 6,344 | $ | 8,321 | $ | (8 | ) | $ | 8,313 | ||||||
| Asia Pacific | 7,627 | 9,581 | (119 | ) | 9,462 | ||||||||||
| EMEA | 3,644 | 4,681 | 34 | 4,715 | |||||||||||
| Total | $ | 17,615 | $ | 22,583 | $ | (93 | ) | $ | 22,490 | ||||||
| SG&A:(2) | |||||||||||||||
| Americas | $ | 5,919 | $ | 8,666 | $ | (26 | ) | $ | 8,640 | ||||||
| Asia Pacific | 7,025 | 7,029 | (99 | ) | 6,930 | ||||||||||
| EMEA | 3,450 | 3,757 | 25 | 3,782 | |||||||||||
| Corporate | 1,121 | 1,422 | — | 1,422 | |||||||||||
| Total | $ | 17,515 | $ | 20,874 | $ | (100 | ) | $ | 20,774 | ||||||
| Operating income (loss): | |||||||||||||||
| Americas | $ | 252 | $ | (555 | ) | $ | (2 | ) | $ | (557 | ) | ||||
| Asia Pacific | 465 | 2,463 | (19 | ) | 2,444 | ||||||||||
| EMEA | 221 | 901 | 9 | 910 | |||||||||||
| Corporate | (1,125 | ) | (1,454 | ) | — | (1,454 | ) | ||||||||
| Total | $ | (187 | ) | $ | 1,355 | $ | (12 | ) | $ | 1,343 | |||||
| EBITDA (loss): | |||||||||||||||
| Americas | $ | 402 | $ | (466 | ) | $ | (3 | ) | $ | (469 | ) | ||||
| Asia Pacific | 224 | 2,131 | (14 | ) | 2,117 | ||||||||||
| EMEA | 149 | 851 | 8 | 859 | |||||||||||
| Corporate | (770 | ) | (857 | ) | (1 | ) | (858 | ) | |||||||
| Total | $ | 5 | $ | 1,659 | $ | (10 | ) | $ | 1,649 | ||||||
| (1) | Represents Revenue less the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. |
| (2) | SG&A is a measure that management uses to evaluate the segments’ expenses and includes salaries and related costs and other selling, general and administrative costs. |
| HUDSON GLOBAL INCOME PER DILUTED SHARE (in thousands, except per share amounts) (unaudited) | ||||||||||
| Adjusted | Diluted Shares | Per Diluted | ||||||||
| For The Three Months Ended June 30, 2024 | Net Income | Outstanding | Share (1) | |||||||
| Net loss | $ | (441 | ) | 3,011 | $ | (0.15 | ) | |||
| Non-recurring severance and professional fees (after tax) | 560 | 3,011 | 0.19 | |||||||
| Adjusted net income (3) | $ | 119 | 3,011 | $ | 0.04 | |||||
| Adjusted | Diluted Shares | Per Diluted | ||||||
| For The Three Months Ended June 30, 2023 | Net Income | Outstanding | Share (1) | |||||
| Net income | $ | 578 | 3,138 | $ | 0.18 | |||
| Non-recurring severance and professional fees (after tax) | 445 | 3,138 | 0.14 | |||||
| Compensation expense related to acquisitions (after tax) (2) | 112 | 3,138 | 0.04 | |||||
| Adjusted net income (3) | $ | 1,135 | 3,138 | $ | 0.36 | |||
| (1) | Amounts may not sum due to rounding. |
| (2) | Represents compensation expense payable per the terms of the Coit acquisition, including a promissory note for |
| (3) | Adjusted net income or loss per diluted share are Non-GAAP measures defined as reported net income or loss and reported net income or loss per diluted share before items such as acquisition-related costs and non-recurring severance and professional fees after tax that are presented to provide additional information about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses these measurements to evaluate capital needs and working capital requirements. Adjusted net income or loss per diluted share should not be considered in isolation or as substitutes for net income or loss and net income or loss per share and other income or cash flow statement data prepared in accordance with generally accepted accounting principles or as measures of the Company's profitability or liquidity. Further, adjusted net income or loss and adjusted net income or loss per diluted share as presented above may not be comparable with similarly titled measures reported by other companies. |
FAQ
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