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].
Hudson Global(HSON) - 2024 Q4 - Annual Report