Hudson Global(US:HSON)2024-08-11 12:28Financial Data and Key Metrics Changes - For Q2 2024, the company reported revenue of $35.7 million, down 20% year-over-year in constant currency, while adjusted net revenue was $17.6 million, down 22% year-over-year in constant currency [3][4] - Adjusted EBITDA for Q2 2024 was $0.7 million compared to $2.6 million in the same period last year [4] - The company reported a net loss of $0.4 million or $0.15 per diluted share, compared to net income of $0.6 million or $0.18 per diluted share in Q2 2023 [4] Business Line Data and Key Metrics Changes - Revenue for the Americas business decreased 19% year-over-year in constant currency, with adjusted net revenue down 24% [5] - Asia Pacific business revenue and adjusted net revenue both decreased 19% year-over-year in constant currency [5] - EMEA business revenue decreased 24% year-over-year in constant currency, with adjusted net revenue down 23% [6] Market Data and Key Metrics Changes - The company ended Q2 2024 with $15.3 million in cash, including $0.6 million of restricted cash, and used $4.3 million in cash flow from operations during the quarter [6] - Day sales outstanding increased to 59 days at June 30, 2024, compared to 52 days at March 31, 2024 [7] Company Strategy and Development Direction - The company expanded its geographical footprint and service offerings through the acquisition of Striver, a UAE-based talent acquisition firm [8] - The company is focusing on a land-and-expand strategy within its existing client base, aiming to deepen relationships despite smaller new business opportunities [8] - Cost-saving measures have been implemented, including workforce reductions, to protect profitability and optimize talent [9] Management's Comments on Operating Environment and Future Outlook - Management noted that hiring volumes remain lower than normal, impacting revenue, but expressed optimism about client feedback and new business wins [10] - The company believes it is at the bottom of the cycle and expects recovery, with a goal of repurchasing 10% of its shares this year [18] Other Important Information - The company has repurchased over 150,000 shares for $2.5 million under its $5 million share repurchase program, including 87,000 shares for $1.5 million in Q2 2024 [11] Q&A Session Summary Question: Client behavior and current engagement - Management noted a hesitation in the market, with smaller deals (500 to 1,500 hires) increasing while larger deals (5,000+ hires) are taking longer to finalize [12][13] Question: Client receptivity to RPO - There has been no notable change in client behavior regarding RPO, with RPO still seen as a cost-saving and scalable option [14] Question: Tax rate clarification - The tax rate is difficult to predict due to the mix of business, with the best guidance being a blend of statutory rates across countries [15][16] Question: Share repurchase activity for the remainder of the year - The company believes it is starting to recover and has a soft goal of repurchasing 10% of its shares this year, depending on market conditions [17][18]