Company Performance - Hudson Global reported a quarterly loss of $0.46 per share, significantly worse than the Zacks Consensus Estimate of $0.06, representing an earnings surprise of -866.67% [1] - The company posted revenues of $31.87 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.50% and down from $33.89 million a year ago [2] - Over the last four quarters, Hudson Global has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Movement and Outlook - Hudson Global shares have declined approximately 23.3% since the beginning of the year, contrasting with the S&P 500's decline of -0.6% [3] - The company's earnings outlook is mixed, with current consensus EPS estimates at $0.17 on $34.38 million in revenues for the coming quarter and $0.74 on $138.9 million in revenues for the current fiscal year [7] Industry Context - The Outsourcing industry, to which Hudson Global belongs, is currently ranked in the top 9% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Revenue for Q1 2025 was $31.9 million, a decrease of 6.0% from Q1 2024, and a 3.3% decrease in constant currency[6] - Total revenue for the three months ended March 31, 2025, was $31,866 million, a decrease of 6.2% from $33,891 million in the same period of 2024[25] - Revenue from the Americas segment was $6,852 million, a decrease of 18% in constant currency compared to $5,994 million in Q1 2024[28] - Asia Pacific revenue was $19,127 million, down from $21,509 million in Q1 2024, representing a constant currency decline of $862 million[28] - EMEA revenue decreased to $5,887 million from $6,388 million in the previous year, a constant currency decline of $53 million[28] Adjusted Net Revenue - Adjusted net revenue increased by 0.4% to $16.4 million compared to Q1 2024, with a 2.2% increase in constant currency[6] - Adjusted net revenue for the same period was $16,398 million, slightly up from $16,330 million year-over-year[25] - Americas revenue increased by 15% to $6.9 million, while adjusted net revenue rose by 3% to $6.0 million compared to Q1 2024[7] - Asia Pacific revenue decreased by 7% to $19.1 million, but adjusted net revenue increased by 14% to $7.2 million compared to the same period last year[8] - EMEA revenue decreased by 7% to $5.9 million, with adjusted net revenue down 19% to $3.2 million compared to Q1 2024[9] Net Loss and Earnings - Net loss for Q1 2025 was $1.8 million, or $0.59 per diluted share, an improvement from a net loss of $2.9 million, or $0.95 per diluted share, in Q1 2024[6] - The net loss for Q1 2025 was $1,756 million, an improvement from a net loss of $2,898 million in Q1 2024[31] - The company reported an adjusted net loss per diluted share of $0.46 for Q1 2025, compared to an adjusted net loss per diluted share of $0.72 in Q1 2024[31] Operational Efficiency - EBITDA loss for Q1 2025 was $1,512 million, compared to a loss of $2,682 million in Q1 2024, indicating a reduction in operational losses[28] - Adjusted EBITDA loss for Q1 2025 was $668 million, compared to a loss of $1,542 million in Q1 2024, reflecting improved operational efficiency[25] - Total selling, general and administrative expenses (SG&A) for Q1 2025 were $17,839 million, down from $18,973 million in Q1 2024, indicating cost control measures[28] Cash and Corporate Costs - Total cash, including restricted cash, was $17.2 million as of March 31, 2025[6] - Corporate costs decreased to $0.9 million in Q1 2025 from $1.0 million in the prior year[11] Share Repurchase Program - The company approved a $5 million share repurchase program, with $2.1 million remaining as of 2024[13] Net Operating Losses - The company has $240 million of usable net operating losses (NOL) in the U.S. as of December 31, 2024, which is considered a valuable asset[14]

Consolidated Financial Performance - Revenue decreased by 6% to $31.9 million compared to $33.9 million in Q1 2024[5] - Adjusted net revenue increased slightly by 0.4% to $16.4 million[5] - SG&A expenses decreased by 4.5% to $17.1 million[5] - Adjusted EBITDA improved significantly by 56.7% to $(0.7) million from $(1.5) million[5] - Net loss improved by 39.4% to $(1.8) million from $(2.9) million[5] Regional Performance - Americas revenue increased by 14.3% to $6.9 million[8] - Asia Pacific revenue decreased by 11.1% to $19.1 million[11] - EMEA revenue decreased by 7.8% to $5.9 million[14] - Adjusted EBITDA in Americas increased by 113.7% to $0.1 million[8] - Adjusted EBITDA in Asia Pacific increased significantly by 454.2% to $0.6 million[11] - Adjusted EBITDA in EMEA decreased significantly by 237.9% to $(0.5) million[14]

Core Insights - Hudson Global, Inc. reported stronger financial results for Q1 2025 compared to Q1 2024, despite an uncertain overall talent environment due to macro conditions [3][8] - The company is optimistic about future growth, particularly in its Hudson RPO segment, which is expected to outperform peers [3] Financial Performance - Total revenue for Q1 2025 was $31.9 million, a decrease of 6% from Q1 2024, while adjusted net revenue increased slightly by 0.4% to $16.4 million [8] - The net loss for Q1 2025 was $1.8 million, or $0.59 per diluted share, an improvement from a net loss of $2.9 million, or $0.95 per diluted share, in Q1 2024 [8][20] - Adjusted EBITDA loss was $0.7 million, a decrease from an adjusted EBITDA loss of $1.5 million in the same period last year [8] Regional Highlights - **Americas**: Revenue increased by 15% to $6.9 million, with adjusted net revenue up 3% to $6.0 million. EBITDA loss improved to $0.1 million from $0.9 million in the previous year [4] - **Asia Pacific**: Revenue decreased by 7% to $19.1 million, while adjusted net revenue increased by 14% to $7.2 million. EBITDA improved to a profit of $0.3 million from a loss of $0.6 million [5] - **EMEA**: Revenue decreased by 7% to $5.9 million, with adjusted net revenue down 19% to $3.2 million. EBITDA loss was $0.6 million compared to a profit of $0.3 million in the previous year [6] Corporate Costs and Liquidity - Corporate costs for Q1 2025 were $0.9 million, down from $1.0 million in the prior year [9] - The company ended Q1 2025 with $17.2 million in cash, including $0.7 million in restricted cash, and used $0.8 million in cash flow from operations [10] Share Repurchase Program - Hudson Global has a $5 million share repurchase program, with $2.5 million spent in 2024 to buy back 154,084 shares, leaving $2.1 million remaining [11] NOL Carryforward - As of December 31, 2024, Hudson Global had $240 million of usable net operating losses (NOL) in the U.S., which the company considers a valuable asset for stockholders [12]

Group 1 - Hudson Global, Inc. will release its first quarter financial results for the period ended March 31, 2025, before the market opens on May 13, 2025 [1] - A conference call to discuss the financial results will take place on the same day at 10:00 am ET [1] - The call will be accessible via dial-in and a simultaneous webcast on the company's investor relations website [1] Group 2 - Hudson Global, Inc. operates as a leading global total talent solutions provider under the brand name Hudson RPO [2] - The company offers customized recruitment outsourcing and total talent solutions to organizations worldwide [2] - Hudson Global focuses on developing tailored talent solutions to align with clients' strategic growth initiatives [2]

Revenue Performance - Revenue for the year ended December 31, 2024, was $140.1 million, a decrease of $21.3 million, or 13%, compared to $161.3 million in 2023[112]. - RPO revenue decreased by $10.6 million, or 14%, and contracting revenue decreased by $10.7 million, or 13%, on a constant currency basis[112]. - In the Americas, revenue decreased by $3.4 million, or 11%, with RPO revenue down by $5.7 million, or 19%, while contracting revenue increased by $2.3 million, or 240%[118]. - Adjusted net revenue in the Americas was $25.1 million for 2024, a decrease of $5.0 million, or 17%, compared to $30.1 million in 2023[119]. - Asia Pacific revenue decreased by $16.5 million, or 16%, to $86.7 million in 2024, with contracting revenue down by $12.9 million, or 18%[124]. - In Australia, revenue decreased by $21.3 million, or 23%, primarily due to a 20% decline in contracting revenue[125]. - EMEA revenue decreased by $1.4 million, or 5%, with RPO revenue down by $1.4 million, or 8%[135]. - Adjusted net revenue in EMEA decreased by $1.3 million, or 8%, driven by a 9% decline in RPO adjusted net revenue[138]. Financial Losses - EBITDA loss was $2.5 million for 2024, compared to EBITDA of $3.7 million for 2023, representing a decrease of $6.1 million on a constant currency basis[112]. - Net loss for the year ended December 31, 2024, was $4.8 million, compared to a net income of $2.2 million for 2023, a decrease of $7.1 million on a constant currency basis[112]. - Operating income in EMEA fell to $0.5 million in 2024 from $2.0 million in 2023, a decrease of 74%[143]. - Net loss for 2024 was $4.8 million, a decrease of $7.0 million compared to net income of $2.2 million in 2023[151]. Expenses and Cost Management - SG&A and Non-Op expenses were $72.6 million for 2024, a decrease of $4.0 million, or 5%, compared to $76.6 million in 2023[112]. - For the year ended December 31, 2024, SG&A and Non-Op in the Americas decreased by $6.2 million, or 20%, compared to 2023, with SG&A and Non-Op as a percentage of revenue decreasing from 100% to 90%[120]. - SG&A and Non-Op in Asia Pacific increased by $1.3 million, or 5%, with SG&A and Non-Op as a percentage of revenue rising to 33% in 2024 from 27% in 2023[131]. - Corporate expenses increased by $0.6 million, or 20%, to $3.6 million in 2024 from $3.0 million in 2023[145]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $17.7 million as of December 31, 2024, down from $23.2 million in 2023[152]. - Net cash used in operating activities was $2.8 million in 2024, compared to a net cash provided of $0.3 million in 2023, a decline of $3.1 million[153]. - Net cash provided by investing activities was $1.1 million in 2024, contrasting with $2.2 million used in 2023, reflecting cash received from benefit payouts[154]. - Net cash used in financing activities increased to $3.1 million in 2024 from $2.5 million in 2023, primarily due to share repurchases of $2.8 million[155]. - The company believes it has sufficient liquidity to meet its needs for at least the next 12 months[158]. Market Conditions and Strategic Outlook - The company anticipates that challenging market conditions, including persistent inflation and higher interest rates, will continue into 2025[108]. - The company is exploring strategic alternatives to maximize shareholder value, including potential acquisitions and share repurchases[106]. Tax and Compliance - The effective tax rate for 2024 was negative 37.5%, compared to 14.4% in 2023, primarily due to pre-tax losses[150]. - As of December 31, 2024, the Company's gross liability for income taxes associated with uncertain tax positions was $0.1 million[171]. - The Company has provided for tax on all unremitted earnings of foreign subsidiaries, recognizing the tax on Global Intangible Low Taxed Income ("GILTI") as a period expense in the year incurred[174]. - The Company assesses tax positions and records tax benefits based on a greater than 50% likelihood of realization upon settlement with tax authorities[173]. - The Company believes its tax reserves reflect the probable outcome of known tax contingencies, although uncertainties may impact results[173]. Business Combinations and Accounting - Business combinations are accounted for under the acquisition method, with goodwill recorded when the purchase price exceeds the net fair value of assets acquired[175]. - Transaction costs in business combinations are expensed, while in asset acquisitions, they are considered part of the acquisition cost[175].

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $33.6 million, down 2% year over year in constant currency, while adjusted net revenue was $17.6 million, up 5.7% year over year in constant currency [7] - Adjusted EBITDA for Q4 2024 was $0.9 million, an increase from $0.1 million a year ago [7] - The company reported a net loss of $0.6 million, or $0.20 per diluted share, compared to net income of $0.7 million, or $0.23 per diluted share in the same period last year [8] Business Line Data and Key Metrics Changes - Revenue for the Americas business increased 18%, with adjusted net revenue increasing 5% year over year in constant currency, and adjusted EBITDA rose to $0.5 million from $0.2 million a year ago [10] - Asia Pacific revenue decreased 10%, while adjusted net revenue increased 6% year over year in constant currency, with adjusted EBITDA remaining flat at $0.9 million [11] - EMEA revenue increased 7% versus the prior quarter in constant currency, with adjusted net revenue up 5%, but adjusted EBITDA decreased to $0.2 million from $0.6 million a year ago [12] Market Data and Key Metrics Changes - The company generated $2.0 million of cash flow from operations in Q4 2024, down from $3.3 million in Q4 2023 [13] - The working capital, excluding cash, was $11.9 million compared to $12.0 million at December 31, 2023 [13] Company Strategy and Development Direction - The company focused on restructuring and repositioning for growth in 2024, investing $3.4 million in sales, marketing, and technology to enhance future growth [6][15] - A digital division was launched, and a Chief Digital Officer was hired to improve digital capabilities and deliver innovative talent solutions [17] - The company aims to expand its geographical reach and service offerings, with a focus on organic growth and enhancing market share with existing partners [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted a modest improvement in the demand environment, with some hesitation and uncertainty affecting hiring initiatives [24] - The sales pipeline is encouraging, and management believes they are well-positioned to convert this pipeline into actual sales once market conditions improve [20] - The company anticipates that as attrition rates normalize, hiring lines will pick up, positively impacting overall business [60] Other Important Information - The company ended the year with $17.7 million in cash, including $0.7 million of restricted cash [13] - The company has a goal to reach 60,000 annual hires over the next three years and to grow RPO clients by 50% [62] Q&A Session Summary Question: Demand environment post-election - Management observed an uptick in client behavior and hiring activity, though uncertainty remains in the market affecting hiring volumes [24] Question: Investments for future growth in 2025 - The growth strategy includes M&A for geographical and product portfolio expansion, as well as enhancing the sales team [27][29] Question: Cash usage and acquisition pipeline - Internal growth projects are prioritized, with a focus on high ROI investments over acquisitions [35][38] Question: Lead time trends with RPO - The sales cycle remains consistent, with expectations for more decisions in 2025 as previous initiatives were put on hold [44] Question: Growth targets in America and EMEA - Both markets are seen as significant growth opportunities, with heavy investments being made [51] Question: New logo wins and renewals - Management is optimistic about increasing new logo wins as the market picks up, alongside strong renewals and expansions [56] Question: Attrition rates and hiring lines - The company is beginning to see attrition normalize, which is expected to lead to increased hiring [60] Question: Share repurchase goals for 2025 - The company aims for a soft goal of significant stock buybacks, contingent on market conditions and opportunities [70][72]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $33.6 million, down 2% year over year in constant currency, while adjusted net revenue was $17.6 million, up 5.7% year over year in constant currency [7] - Adjusted EBITDA for Q4 2024 was $0.9 million, an increase from $0.1 million a year ago [7] - The company reported a net loss of $0.6 million, or $0.20 per diluted share, compared to net income of $0.7 million, or $0.23 per diluted share in the same period last year [8] Business Line Data and Key Metrics Changes - Revenue for the Americas business increased 18% in Q4 2024, with adjusted net revenue up 5% year over year in constant currency [10] - Asia Pacific revenue decreased 10%, while adjusted net revenue increased 6% year over year in constant currency, attributed to a decline at a large MSP client [11] - EMEA revenue increased 7% versus the prior quarter in constant currency, with adjusted net revenue up 5% [12] Market Data and Key Metrics Changes - The company generated $2.0 million of cash flow from operations in Q4 2024, down from $3.3 million in Q4 2023 [13] - The working capital, excluding cash, was $11.9 million compared to $12.0 million at December 31, 2023 [13] Company Strategy and Development Direction - The company has restructured its organization and streamlined operations, investing $3.4 million in sales, marketing, and technology to enhance future growth [15][17] - A focus on M&A for geographical and product portfolio expansion is part of the growth strategy [27] - The launch of a digital division aims to improve digital capabilities and enhance client service [17][32] Management's Comments on Operating Environment and Future Outlook - Management noted a modest improvement in Q4 2024 results despite challenges from low global hiring activity and low attrition rates [6] - There is a positive outlook on the sales pipeline, with expectations of converting this into actual sales as market conditions improve [20] - Management acknowledged ongoing uncertainty in the market affecting client hiring initiatives but noted a more positive viewpoint compared to the previous year [24] Other Important Information - The company has received multiple recognitions, including being ranked among the top enterprise RPO providers for the sixteenth consecutive year [18] - The attrition rate is currently low at about 4%, with expectations of normalizing to higher levels in the future [58][60] Q&A Session Summary Question: Demand environment and geographical differentiation - Management noted an uptick in client behavior and hiring activity, with some hesitation due to market uncertainty [24] Question: Future growth investments and CapEx levels - The growth strategy includes M&A and enhancing the sales team to support geographical expansion [27] Question: Acquisition pipeline and valuation levels - The company prioritizes internal growth projects and is always looking for acquisition opportunities, though there is a gap in valuation expectations [36][38] Question: Lead time trends with RPO - The sales cycle remains consistent, with expectations for more decisions in 2025 as previous initiatives were put on hold [44] Question: Growth targets in America and EMEA markets - Management confirmed that these markets are key growth targets, with significant opportunities for expansion [50][51] Question: New logo wins and renewals - There is optimism for increasing new logo wins as the market picks up, alongside a strong position for renewals and expansions [56] Question: Share repurchase goals for 2025 - The company aims for a soft goal of share repurchases, contingent on market conditions and opportunities [70][72]

Hudson Global (HSON) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 16.67%. A quarter ago, it was expected that this staffing company would post earnings of $0.28 per share when it actually produced a loss of $0.13, delivering a surprise of -146.43%.Over the last four quarters, the compa ...

Q4 2024 Earnings Call M a r c h 1 4 , 2 0 2 5 Forward-Looking Statements This presentation 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 f ...