Hudson Global (HSON) Q1 2025 Earnings Call May 13, 2025 10:00 AM ET Company Participants Jeffrey Eberwein - CEOMatt Diamond - CFOJake Zabkowicz - Global CEO of Hudson RPO Conference Call Participants Marc Riddick - Business Services AnalystNone - Analyst Operator Good morning, and welcome to the Hudson Global Conference Call for the First Quarter of twenty twenty five. Our call today will be led by Chief Executive Officer, Jeff Eberwein Chief Financial Officer, Matt Diamond and Global CEO, Hudson RPO, Jake ...

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $31.9 million, down 3.3% year over year in constant currency, while adjusted net revenue increased to $16.4 million, up 2.2% year over year in constant currency [5] - Adjusted EBITDA for Q1 was a loss of $700,000, an improvement from a loss of $1.5 million a year ago [5] - The net loss was $1.8 million or $0.59 per diluted share, compared to a net loss of $2.9 million or $0.95 per diluted share in the same period last year [5] Business Line Data and Key Metrics Changes - Revenue for the Americas business increased by 15%, with adjusted net revenue up 3% year over year in constant currency [8] - Asia Pacific revenue decreased by 7%, but adjusted net revenue increased by 14% year over year in constant currency [8] - EMEA revenue decreased by 7% year over year in constant currency, with adjusted net revenue down 19% [9] Market Data and Key Metrics Changes - Overall days sales outstanding increased to 56 days as of March 31, 2025, compared to 51 days at December 31, 2024 [10] - The company ended Q1 with $17.2 million in cash, including $700,000 of restricted cash [10] Company Strategy and Development Direction - The company is focusing on a land and expand strategy to enhance geographical reach and service offerings [12] - A new Chief Digital Officer has been appointed to launch a digital division aimed at improving digital capabilities and enterprise strategies [12] - The company secured approximately $20 million of adjusted net revenue from renewals and extensions at existing clients, plus $2.4 million in new logo wins for the quarter [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to position itself for strong future growth despite current macroeconomic uncertainties [6] - The management noted that while there was initial momentum entering Q1, uncertainty in the macro environment has created hesitation in hiring demands from clients [20] - The company is optimistic about future growth, particularly in regions like India and Latin America, while facing challenges in the US, China, and the UK [23] Other Important Information - The company has been investing in its capabilities in sales, marketing, and technology to enhance its competitive position [30] - The management is open to share repurchases and is considering various options for cash usage prioritization, including potential acquisitions [31][35] Q&A Session Summary Question: Impact of headlines on client reactions - Management noted that uncertainty in the macro environment has created hesitation in hiring demands from clients, impacting enterprise-level clients [19] Question: Geographic differences in activity levels - Management indicated that there is hesitation across all regions due to macroeconomic impacts, with some resilience seen in pharmaceuticals and financial services [22] Question: Digital launch details - The proprietary digital solution is expected to be available by the end of Q3 or beginning of Q4 2025 [43] Question: Seasonal spikes in renewals and expansions - Management acknowledged cyclical nature in contracts but emphasized ongoing efforts to expand services with existing clients [45] Question: Attrition rate and its implications - Management confirmed that the attrition rate is returning to historical levels, which could be a tailwind for the company [52] Question: Progress since the new CEO's appointment - The CEO expressed satisfaction with the progress made in building capabilities and investing in leadership, aiming to compete at a larger enterprise scale [56]