Hudson Global(US:HSON)2022-11-10 21:58Revenue Performance - Revenue for Q3 2022 was $48.7 million, an increase of $3.7 million or 8.2% compared to Q3 2021, driven primarily by growth in the Americas [163]. - Adjusted net revenue for Q3 2022 was $24.2 million, up $6.2 million or 34.2% from Q3 2021, with RPO recruitment adjusted net revenue increasing by $6.9 million or 42.8% [163]. - For the nine months ended September 30, 2022, revenue was $151.6 million, an increase of $32.4 million or 27.2% compared to the same period in 2021, mainly due to growth in the Americas [166]. - Adjusted net revenue for the nine months ended September 30, 2022, was $77.0 million, an increase of $31.2 million or 68.1% from the same period in 2021 [166]. - For the three months ended September 30, 2022, total revenue was $48.7 million, a 8% increase from $45.0 million in the same period of 2021 [169]. - For the nine months ended September 30, 2022, total revenue was $151.6 million, a 27% increase from $119.1 million in the same period of 2021 [169]. Expenses and Profitability - SG&A and Non-Op expenses for Q3 2022 were $22.6 million, an increase of $6.1 million or 36.6% compared to Q3 2021, with SG&A as a percentage of revenue rising to 46.4% [166]. - EBITDA for Q3 2022 was $1.6 million, a slight increase from $1.5 million in Q3 2021 [166]. - Net income for Q3 2022 was $1.0 million, down from $1.5 million in Q3 2021, reflecting a decrease of $0.5 million [166]. - For the nine months ended September 30, 2022, EBITDA was $9.7 million, significantly up from $2.0 million in the same period of 2021 [166]. - Operating income for the total was $1.3 million for the three months ended September 30, 2022, compared to $1.4 million in 2021 [169]. - Net income for the three months ended September 30, 2022, was $955,000, a decrease of 36% from $1.5 million in the same period of 2021 [173]. - For the nine months ended September 30, 2022, operating income was $5.0 million, compared to $0.1 million in 2021, and EBITDA was $5.5 million, or 13% of revenue, compared to $0.2 million in 2021 [184]. Regional Performance - RPO recruitment revenue increased by $5.1 million, or 73%, for the three months ended September 30, 2022, compared to the same period in 2021 [175]. - Adjusted net revenue for the Americas was $11.9 million for the three months ended September 30, 2022, representing a 70% increase from $7.0 million in 2021 [177]. - For the three months ended September 30, 2022, revenue in Asia Pacific was $30.0 million, a decrease of $0.1 million, or 0.3%, while for the nine months it increased to $91.0 million, up $10.3 million, or 13% [186]. - For the nine months ended September 30, 2022, RPO recruitment revenue in Asia increased by $5.5 million, or 31%, while contracting revenue increased by $4.8 million, or 8% [188]. - For the three months ended September 30, 2022, revenue in Europe was $6.2 million, an increase of $1.6 million, or 36%, while for the nine months it was $18.9 million, up $5.1 million, or 36% [203]. - For the nine months ended September 30, 2022, RPO recruitment revenue increased by $4.1 million, or 48%, while contracting revenue increased by $0.9 million, or 17% compared to the same period in 2021 [205]. Cash and Liquidity - As of September 30, 2022, cash and cash equivalents totaled $22.7 million, compared to $22.1 million as of December 31, 2021 [225]. - Net cash provided by operating activities was $5.1 million for the nine months ended September 30, 2022, compared to $0.8 million in 2021, resulting in an increase of $4.3 million [226]. - The Company believes it has sufficient liquidity to meet its needs for at least the next 12 months based on its financial position as of September 30, 2022 [231]. - The Company held $12.9 million of its cash and cash equivalents in the U.S. as of September 30, 2022, with the remainder held in various countries including Australia ($3.6 million) and Hong Kong ($1.3 million) [232]. - The Company has no outstanding debt or financial guarantees other than those related to the Karani Acquisition [231]. Market Conditions and Future Outlook - The company anticipates continued challenging market conditions into 2023 due to higher inflation and decreased demand for labor [156]. - The ongoing COVID-19 pandemic has negatively impacted certain currencies compared to the U.S. dollar in the countries where the Company operates [242]. - The Company does not have any off-balance sheet arrangements that could materially affect its financial condition [233]. - The Company evaluates its liabilities in light of prevailing circumstances and has appropriate procedures in place for identifying potential claims [235].