Hudson Global (HSON) 10 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Hudson Global Conference Call for the Third Quarter of 2023.

Our call today will be led by Chief Executive Officer, Jeff Eberwein; and Chief Financial Officer, Matt Diamond. Please be advised that the statements made during the presentation include forward-looking statements under applicable securities laws. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.

including in XX, X-K made and Securities Exchange discussed on be with are on and November report Monday, in Commission, risks our to Form filed the Form These XX-K. annual our our filings any any update statements. The company to forward-looking disclaims obligation

on of call, measures diluted per the earnings terms for be these will our access guide posted hudsonrpo.com. a non-GAAP included and I at references to share. both release call. quarterly made in reference you earnings course During website, as our and constant adjusted this encourage will to are slides, our hopeful such our during time currency, serve material this earnings as they conference adjusted as EBITDA Reconciliations

over call Eberwein. I turn to will the Jeff now

and and you reviewing Thank CFO, Diamond, Hudson an conditions. today. welcome, interest in joining thank then business will highlights, and by will update I'll financial some start details everyone. give on XXXX your Matt We Global current quarter on for for our us additional results. our I provide third you, the operator,

quarter in of costs $XX third was currency. constant versus XX% million last in million of the period revenue year reported XX% Adjusted we XX% SG&A constant year-over-year the For in $XX million, currency. decreased and down quarter, $XX constant net revenue currency. year-over-year down XXXX, in were the same

versus a adjusted reported ago. down EBITDA XX% We year of currency $X constant in million,

last as to ago. review additional reported reported a financial well from a versus $X.XX share or net region diluted third call we turn year. addition, of $X.XX million million versus results the net details CFO, to period our a quarter third of our share Diamond, $X.XX the adjusted share as I'll by the In quarter. year some Matt now financial income the $X in diluted We same share income in $X.X of $X.XX or net income per per over

Adjusted of for Revenue Asia year's XX% EBITDA the currency. decreased increased good revenue X% of Revenue versus business revenue you, revenue year while a EBITDA net in net XX% adjusted year morning, ago. net XX% decreased Thank from in adjusted our for from million constant million our everyone. EBITDA of decreased adjusted of million and third of X% in Revenue $X.X and EBITDA XXXX constant of a EBITDA Europe constant million $X.X EBITDA decreased decreased X% last Americas and quarter adjusted million currency. grew our adjusted in currency for Pacific Jeff, $X.X ago. $X.X $X.X Adjusted Adjusted in decreased business business million. of currency. $X.X year-over-year adjusted constant decreased

the sales XX the in of the Coit of of days of quarter XXXX quarter Hunt in September Turning in XXXX. XXXX, XXXX. XX up Group to acquisitions in XXXX, from some was quarter with quarter. DSO from restricted million We outstanding third details third and the September in the In fourth third additional Karani cash. connection financial Days Badge ended quarter and the at days of cash $XX & with fourth

company the third $X.X goodwill increased cash, sheet used capital, balance to of of intangible during in flow XXXX, at million and operations Our significantly million amortizable million of September cash $XX.X million quarter. end working excluding XXXX. The as from $X.X reflects in the net of third from company's of assets. XX, million the XXXX $X.X $X.X quarter The

our and trends. on call over I'll RPO some Jeff to current perspective now review give turn to more business the back to

disappointing EBITDA Thank net in declines In year revenue you, of activity prior quarter hiring led adjusted the adjusted the and in XXXX, Matt. third quarter. slowdown market-driven versus to revenue, a

to coming forward. continue the like side, positive months. clients respond the highlight manage up going in of the of XX% stems mirroring will essentially our business to would and that needs declines to protect well revenue. and positioned from our is revenue in net through to and new ability ability This in managing of remain discipline flexibility and flexibility business is we ramp I environment by our experience our also this in willingness win cost to downturns the year-over-year, We're On confident our adjusted evidenced the SG&A the which and dropping our structure, collective teams indicative to profitability. of and the

company total we approved repurchases a The Under program, capital going repurchase expect continues share the on and As more third attractive million. an stock a shares forward, to company as quarter in common the to the program this buy August can. million when XX,XXX of acquired shares a $X.X X. share use we reminder, company for $X about view of

I'd developments like to some Finally, recent our in highlight exciting business.

of MSP Asia. Asia, recruitment strategy services X, is other First, in we has lagged excited of acquisition services. regions our potential to Southeast acquisition bolt-on RPO announce accretive this are Singapore has We accelerate multiservice other talent growth work, on a growth our consisting believe typically contracting, and our to market essential that total in and bundled presence, November been capabilities and increases project adoption these RPO where with significantly

of complement brings Hudson Singapore strategy. Hudson needed to this RPO to capabilities on the execute

#X our and this work service HR our reflects deliver world-class our Baker's team's RPO are for to I'm ranking decision-makers rankings and regional list Dozen the of #X morning, commitment the we views Asia of our clients, hard testament and and In excellence. these Dozen proud The to team HRO we to continue in like senior a I congratulate announced to would Pacific annual team Today's, to ranking overall RPO EMEA for Baker's rankings. addition, as

flexibility, and of challenging hard thank questions? through highly dedicated employees working for dedication our I'd work the their been you all for Importantly, our open we've to conditions Operator, the in like please clients can and to line business

[Operator Instructions] from first Riddick Sidoti. Our Marc come question will with

morning. Good

update of about came potential the acquisition, of Singapore a top of background and on of on sort give little wondering an how maybe that, valuations little maybe of you're then it maybe a there. And some bit So the with be what pipeline seeing overall I if talk you a and can like. was and you sort could bit to

Yes. mean? acquisitions, you On

Correct.

Yes.

is find this Australia, -- business and we've we in actually are perfectly some long markets with clients that and being we and them for a the with U.K. a time known everything collaborated So like happy unbundled. U.S.,

talent do separate a and that can So is one-stop markets, work, Southeast do provider maybe a approach And then they'll have provider, RPO work, services an bundled you everything shop, other a in MSP Pac and contracting Singapore the or solution. one RPO Asia of consulting a total do those prefer that provider, do where recruitment definitely Asia, separate clients really we and in a call find markets. we the

And it area able we we on a were missing growth has all that -- out solutions but been so us, there's a weren't to for opportunities we business lot because new in those a offer of package.

bid And so there's few instances this jointly we with a where business.

for our know well. collaborated found be each to so got might And we that and well one other to really really out And it teams led another, sale. thing and

we're other to think like situations value-oriented decided entering our could business it's really to And we and so happy acquisition it. beef Southeast we ourselves. that, pipeline, buyer be our have on valuation offering and so And And in for a Asia. like to are acquire very some a the attractive up it we there

we're where are reasonable environment think companies in I more are becoming better and a entering an things. environment expectations where we're rethinking sellers'

them. we fit to noncore be us reached always is so than a to acquisitions noncore, the it pretty to a that hard there special for our something and few a And happened were able the get there acquisition we're situations But that which that Bolt-on It's ones to predict. with which few probably could out this there's us the where strict. interesting is working And and a of kind conclusion number. is owner, they for there timing situations acquisition, are criteria, better Singapore several those what where there's is it's of out something and on. and

a you the a the right this now sourcing little sort scenarios outsourcing client business from quite new of folks get there's if Are that's any that bit about competitors business you aren't Are where wins little sense sense that of very bit maybe the what sort more I new that of Are customers? the could like demand I of the -- opportunity is that them mean seeing? kind and That's coming was there? a you helpful. situation? getting of would you know from but a set winning where what you're seeing I wondering talk getting from? sense are be, you to

A activity one is there's there's new off of us, been that merge, bit care and health quite X or a its health been maybe for companies say And spins care companies want large got strong, area some are the areas would divisions. maybe before. the it's for that good explore that's that an RPO them, fit strategic that maybe company, spun they of isn't independent company off. of incumbent it's an reasons. partner always used provider lot it's care I in that's where Yes. a almost of to company for when some business businesses, they with to times, the a health one whether there's And opportunity X spin-off for wins been -- haven't strongest been now

that that, taken a few of. we've are there advantage like out there So situations

health care do life care, don't the medical So really wins. space. we care talk been, the when would provider devices, about say, new And we strongest area health sciences, pharmaceuticals, health and activity I has in of much we mean

really is it So life it's health more providers. care sciences than traditional

Another to the environment. do with area anything is

win we're of growth large big and European and in water, clean large hygiene, area. acquisition company, and a Europe has a it's the clean U.S., air, the very company products headquartered services in did that they U.S., be lot that have to a and that involve a a and So of private them just been going helping ours,

infrastructure then companies, some including a type company wins either is And involving finances infrastructure-oriented infrastructure another are we've that building or projects. companies in infrastructure, green that of had

a a general, pockets is probably there in is of like say strength somebody are hiring So we're use in to one there and help. there's our market could some but we'd slowdown, somewhere thing where, that always

would question-and-answer That turn I like Eberwein remarks. now Jeff closing for to call concludes to over session. today's the

for release in free feel Relations your today Investor for look or joining contact the using Have interest Thank forward a in and update our Hudson on all day. quarter's time information to found Please Global. us website. contact great next We us any our call. to you press

now section be concluded. website, hudsonrpo.com. our available for joining on has call of quarter you Global and Investors Today's Thank recorded The been the call. conference third has conference will Hudson the