Hudson Global (HSON) 12 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to the Hudson Global Conference Call for the Third Quarter of 2024.

Our call today will be led by Chief Executive Officer, Jeff Eberwein; Chief Financial Officer, Matt Diamond, and Global CEO of Hudson RPO, Jake Zabkowicz. 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. These risks are discussed in our Form 8-K filed earlier today and in our other filings made with the Securities and Exchange Commission, including our annual report on Form 10-K. The company disclaims any obligation to update any forward-looking statements.

this such references EBITDA, as earnings diluted of to be and course per terms non-GAAP constant share. the conference will call, made adjusted During currency, adjusted and included hudsonrpo.com. website, our are on measures these both posted for earnings Reconciliations release quarterly slides, our in serve to call. will a encourage as you at time guide our access I helpful materials reference earnings this they as our during being today's conference is recorded. note, Please Eberwein. now will turn I over Jeff the to call Please go ahead.

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

our Lastly, CEO business our provide RPO Jake RPO on Hudson business. of Global us Zabkowicz, will update with an

XXXX the serve. Our volumes in results lower-than-normal hiring our see many we the markets continued of to at impact of clients third quarter

adjusted X% million, million, For constant currency, the of constant in revenue third our $XX.X revenue reported currency. quarter XXXX, in year-over-year X% we year-over-year net was down of while down $XX.X

EBITDA for the $X million of EBITDA ago. adjusted a was quarter year adjusted million versus $X.X third Our

the net In income per per $X.XX QX $X.X versus reported share per or quarter million income of net net loss last of third adjusted in addition, XXXX of $X.XX $X.X the or to diluted diluted a was net loss $X.XX same in compared diluted we year. year. share million period of of last $X.XX share per share

third quarter. additional by details the Now Matt to as region I'll Diamond results our as review the well financial turn financial some to call from over

EBITDA increased and reported decreased to increased year-over-year million EBITDA $X.X adjusted XX% Pacific for XXXX, of million. for quarter, net Asia adjusted business year-over-year quarter Thank million decreased adjusted everyone. revenue for adjusted increase constant $X.X decreased year year's currency. In X%. Revenue reported in prior our constant $X.X and Revenue for you, currency year versus million adjusted Jeff, constant increased Revenue and of morning, adjusted a EBITDA We EMEA we the last compared X% X% from ago. QX good X% business EBITDA XX%, an net the of $X.X our currency. in adjusted of Americas revenue net revenue and in our business

XXXX QX was compared adjusted to EBITDA flat quarter EBITDA the adjusted of Our third million, $X.X in XXXX.

a our in years, million cash. balance of XX was amortizable to acquisition to operations operations during some was Days assets. over connection as quarter from ended June $X.X quarter. the million XX, million RPO with flow to XXXX now discuss The $X.X XXXX, December third excluding at XX, including call quarter details million compared to generated from cash $X.X our in cash, business. million $XX financial the in working restricted cash the the at outflow in with turn September of third capital, company's XXXX. XX goodwill intangible our the to XXXX. In Turning I'll to at third compared cash, The activity recent XX, additional quarter days in $XX.X sheet XXXX. Jake $X.X reflects $XX $X.X net million compared We company XXXX million of of of million outstanding days September sales XX, of and

and focus Thank offerings. and multiple on made the RPO, to individuals you, reach bring enhancing further hires reputation industry expertise service enhancing XXXX, In strategic Matt, global capabilities. and we geographical good Hudson of our quarter These our third morning. deep further a with

top Baker's myriad a ranking Dozen we by evidenced RPO are including receive, proud are list providers. Today's of efforts recognitions enterprise of HRO among the year XXth to magazine's Our consecutive

volumes previous for of in as not focus incremental geographies some and in in our to able The see our we're fluctuations of did partners into expand in expand and gains territories demand many strategy hiring saw the existing quarters. as we with land Our QX new and existing stabilized QX where partners.

market they sales ensure is and turn over shrinking I'll to volumes. Overall, clients' with to logo that reassess continued rightsized as or support new we're their to to clients that react a closing and our to business to call able However, marked continue hiring be either QX disappointment, remarks. service they some the was breadth with need. needs back us for demands to scope their provide potential Jeff our now and continuing of the delaying the

Thank you, Jake.

the clients we're I'd we're feedback encouraged to like excited Jake's environment, robust from despite talent our line business questions, wins opening to by sales Before and our and receiving today's the pipeline. by reinforce message new that

new We have to you deliver please cost Operator, value clients saving to the of our initiatives bottom our organization changes results questions? line for a in and quarters. in very the should across can bright implemented coming forward. open existing the while We're help of ability and internal the results the line we've going our confident needs future serving entire ahead. Furthermore, shareholders

[Operator Instructions] from today Riddick Company. Sidoti & question Marc Our first is with

the in seeing clients EMEA there. to you're to Asia opposed as and activity. Americas start We seeing Maybe Pac. the those about from regional differences in maybe differences a So what could bit saw and with wanted of I little you sort that you're talk growth year-over-year

I had expectations. what whatever some expectations. Jake, year. would in historical played it the over that our thing it business it start in expectations. a in negative would -- have our way Pac. Long-time way reason next this say a facing to sector recent headwind volumes quarters, we hired to more below for back have we've noticeable you is year, surprise having below new to in normal average pretty has particularly XXXX Jake. think and been our And base be out existing the year, been and what clients, has then turn and that's I'll similar QX, levels, the been levels started And we'll Sure, but in of below hiring add? we wins would Asia financial are a was I'll And I temporary our and significantly this

take if look to previous our fluctuations this well quarter, stabilized just you and expectations roughly Jeff. but mentioned, last and add, in volumes. in years' below, Yes, this quarter the Marc, have to a would last Jeff as our year year, quarters' clients hiring I too, at also previous from

good while hiring picking the strategy seeing the seeing that is, while in are up, working. are base accounts business below volumes So I new is efforts in that mentioned we some realm, and earlier, expectation. The are as expand current our news we land our still

key brings to the in expanding life work which territories them. new been new with lot of that of for are a and geographies We our team good has a the couple clients, doing

wallet A to been so far, we've on that. had different and increasing with share that's We're some our we've of and ongoing is accounts our successes just getting it, initiative. land some describe of an way started but expand with

wondering a there was leading you there Or I call we a little then far about bit the And activity? up should might the mentioned be the verticals Okay. be differentiation financials. are if any out is talk thinking that Are about, any that way you as industry or there? could of sort picking that as challenge areas

one? that don't you why take Jake,

I mentioned, Marc, us, it's technology seeing expected. stable to board good. that not of from been hoping would the pharmaceuticals sectors I And for. say a be we're life sector, everybody across and has hockey as continue think for lower is still stick that Financial Yes, while sciences than incremental some sector Jeff the which the standpoint, services, type was improvement, rebound

been for stable that as I specific, growth it's more us be would the from a to continue across think of So board. consistent But pretty just move forward. a sector we

Okay. any there's this, I you any I mean, kind sort And wondering then if was to demand and switching it that or wondering the you receiving be in as of feedback have or gears, any received you're might to early that client political of was from that I as that for but feedback lead midyear, that far thoughts might standpoint. what ramifications as

Yes.

COVID, question, way environment just version, everything, rebound the the We going a the been too in the raised been is did short has early notice to And recovering it's up, to and yesterday. years as we've short then of inflation we've COVID, interest now has of going accordingly, out up, everybody else. of for labor rates prices the answer lot market general, including that cost Marc, our think in uncertainty. shock, the I say.

some return one, So nature return rightsizing it's anything and long that been for areas is those that's the pro-business time. And sector, environment financial I to environment, hiring have those to they that I but there's pick low And more levels, more would calm have normal particular, a And especially levels thing, we've I been stable companies pick term seen services. lot normal of will would even do to a tell had in under-hiring. short year. we highlight, next very at really will if historical in things been A in think lowest there. us that a good

free then X cash as usage. was flow Okay, on sort for cash last thoughts of me. to and curious I

anything as maybe share anything in as as repurchase is activity. what You'd you're mentioned you're or or far bit in that out makes to in some to thoughts I valuations acquisition wanted sense? just seeing release what that? there seeing press pipeline Or little in talk the as -- maybe far about as And like your there the a there volume

looking goal or at but flow acquisitions, on vertical to because a in We always the increase service significant upgrading share be in CapEx. really run, acquisition We Middle short show to cash be grow prefer plus the of eminent. And year. would EBITDA target organically we that done maybe main medium- something about maybe to business been we the look. with either income find nothing to we a clients clients. There's that almost service, statement areas market. enhancer, we not We've think in statement, the a like targets. our investment. And where or would We've sector can that's or Really costs don't to East, existing this going like long-term a And us question, Yes. it something Marc. there good X, enhancer bring up a have that's wallet it's the different equals of our is lot been slightly and the X money, adjacent building where hurts X phenomenal that We're always our any in when like investments and we've geography talent.

side at all the big of back look -- acquisition buying is we things. incremental predict. stock. really if But to it's we're so hard what And fans done, small we've you And been

bought window you As time the every has back mentioned, been opened. we've stock

this you over any is bought look, terms down absolute our something stock is something to we've think think many companies period it's And our $X.X think of we time year. which to use worth time we expect in excellent to I incredibly million cheap is count capital share want can and can. over and as And not we say. we an continue do

question-and-answer I turn over our Eberwein for would to This like concludes session. back the to Jeff any closing remarks. conference

we just you Why to question want question? Operator, it don't minute ask they how a has people to if see a give anybody if could X to? remind

Instructions] [Operator

All right. Operator, any questions?

no this time. questions are at There

for that found our today next interest a press us or call. the Well, look session, update quarter's We the website. contact Investor information to using in day, forward Global. concludes contact good everybody. Okay. Hudson question-and-answer in on so for joining Have free us to Relations anytime thanks our Feel release your

today's for presentation. The concluded. conference has attending now you Thank

may disconnect. You now