OLD GREENWICH, Conn., Aug. 10, 2023 (GLOBE NEWSWIRE) — Hudson Global, Inc. (Nasdaq: HSON), a leading global total talent solutions company, announced today financial results for the second quarter ended June 30, 2023.
2023 Second Quarter Summary
- Revenue of $44.9 million decreased 20.8% from the second quarter of 2022 and 17.7% in constant currency.
- Adjusted net revenue of $22.6 million decreased 17.2% from the second quarter of 2022 and 15.4% in constant currency.
- Net income was $0.6 million, or $0.18 per diluted share, compared to net income of $3.1 million, or $0.98 per diluted share, for the second quarter of 2022. Adjusted net income per diluted share (non-GAAP measure)* was $0.36 compared to adjusted net income per diluted share of $1.25 in the second quarter of 2022.
- Adjusted EBITDA (non-GAAP measure)* was $2.6 million, a decrease versus adjusted EBITDA of $5.7 million in the second quarter of 2022.
- In the second quarter of 2023, the Company repurchased $0.6 million of stock and has now completed its $10 million common stock repurchase program.
- The Company’s Board of Directors authorized a new $5 million common stock repurchase program effective August 8, 2023.
- Total cash including restricted cash was $23.0 million at June 30, 2023.
“In the second quarter of 2023, lower hiring activity, particularly in the technology sector, led to declines in revenue, adjusted net revenue, and adjusted EBITDA versus the prior year quarter,” said Jeff Eberwein, Chief Executive Officer of Hudson Global. “Activity in other sectors remained in line with expectations, and we continued to win new business in the second quarter of 2023. Although the timing of a recovery in the technology sector is difficult to predict, we are confident in our ability to manage the business in this environment and remain well positioned to respond to the needs of our clients going forward.”
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States (“GAAP”). Constant currency, adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.
Regional Highlights
All growth rate comparisons are in constant currency.
Americas
In the second quarter of 2023, Americas revenue of $8.6 million decreased 40% and adjusted net revenue of $8.3 million decreased 40% from the second quarter of 2022. EBITDA loss was $0.5 million in the second quarter of 2023 from EBITDA of $2.3 million in same period last year. Adjusted EBITDA decreased to breakeven in the second quarter of 2023 compared to adjusted EBITDA of $3.4 million in the same period last year.
Asia Pacific
Asia Pacific revenue of $28.4 million increased 1% and adjusted net revenue of $9.6 million increased 11% in the second quarter of 2023 compared to the same period in 2022. EBITDA was $2.1 million in the second quarter of 2023 compared to EBITDA of $2.3 million in the same period one year ago, and adjusted EBITDA was $2.5 million compared to adjusted EBITDA of $2.6 million in the second quarter of 2022.
Europe
Europe revenue in the second quarter of 2023 decreased 34% to $7.9 million and adjusted net revenue of $4.7 million increased 10% from the second quarter of 2022. EBITDA increased to $0.9 million in the second quarter of 2023 compared to EBITDA of $0.6 million in the same period one year ago. Adjusted EBITDA increased to $1.1 million in the second quarter of 2023 compared to adjusted EBITDA of $0.8 million in the second quarter of 2022.
Corporate Costs
In the second quarter of 2023, the Company’s corporate costs were $1.0 million, approximately flat versus the prior year quarter. Corporate costs in the second quarter of 2023 and 2022 excluded non-recurring expenses of $0.2 million and $0.0 million, respectively.
Liquidity and Capital Resources
The Company ended the second quarter of 2023 with $23.0 million in cash, including $0.4 million in restricted cash. The Company generated $2.6 million in cash flow from operations during the second quarter of 2023 compared to generating $7.6 million of cash flow from operations in the second quarter of 2022. The Company also paid off its $1.3 million acquisition-related note in the second quarter.
Share Repurchase Program
In the second quarter of 2023, the Company repurchased 27,277 shares for $0.6 million and has now completed its $10 million common stock repurchase program. The company continues to view share repurchases as an attractive use of capital and authorized a new $5 million common stock repurchase program effective August 8, 2023.
NOL Carryforward
As of December 31, 2022, Hudson Global has $303 million of usable net operating losses (“NOL”) in the U.S., which the Company considers to be a very valuable asset for its stockholders. In order to protect the value of the NOL for all stockholders, the Company has a rights agreement and charter amendment in place that limit beneficial ownership of Hudson Global common stock to 4.99%. Stockholders who wish to own more than 4.99% of Hudson Global common stock, or who already own more than 4.99% of Hudson Global common stock and wish to buy more, may only acquire additional shares with the Board’s prior written approval.
About Hudson Global
Hudson Global, Inc. is a leading global total talent solutions provider operating under the brand name Hudson RPO. We deliver innovative, customized recruitment outsourcing and total talent solutions to organizations worldwide. Through our consultative approach, we develop tailored talent solutions designed to meet our clients’ strategic growth initiatives. As a trusted advisor, we meet our commitments, deliver quality and value, and strive to exceed expectations.
For more information, please visit us at hudsonrpo.com
