May 13, 2022 – Old Greenwich, Conn.-based recruiting firm Hudson Global Inc. / (NASDAQ:HSON) has posted first quarter revenues of $51.9 million, an increase of 50.7 percent from the same period a year ago. Americas revenue of $14.6 million increased 220 percent, Asia-Pacific revenue of $31.1 million rose by 30 percent, and Europe revenue jumped 40 percent to $6.2 million. Net income increased to $3.0 million, or $0.97 per diluted share, compared to net loss of $0.2 million, or $0.07 per diluted share, for the first quarter of 2021.
“Our business exhibited very strong growth in revenue, adjusted net revenue, and adjusted EBITDA across all three regions in the first quarter of 2022 vs. the prior year quarter,” said Jeff Eberwein, CEO of Hudson Global. “Coit and Karani, our 2020 and 2021 acquisitions, respectively, have integrated very well and have delivered exceptional results thus far. Globally, the demand for our services remains robust and we expect to continue to deliver strong growth going forward.”
Since the beginning of 2019, Hudson Global has reduced its share count by 12 percent and continues to view share repurchases as an attractive use of capital. Under its $10 million common stock share repurchase program, the company has $1.7 million remaining.
Hudson Global recently announced that it had acquired Karani, a Chicago-headquartered recruiting services provider that serves mainly U.S.-based customers from its operations in India and the Philippines. The purchase price was close to $8 million.
Karani partners with recruitment and staffing firms to assist with recruiting, sourcing, screening, onboarding and other talent-related services across a variety of industries. Karani has about 500 employees in India and 100 in the Philippines. “All current employees of Karani and its subsidiaries will be joining Hudson RPO, except for owner and CEO Dan Williams,” said Mr. Eberwein. “Dan will be retiring from his leadership role at Karani and its subsidiaries but will be an advisor to us for a period of 12 months. We congratulate Dan on his many successes in the human capital management industry over his long, storied career and wish him well in his future retirement.”
“Everyone at Karani and its subsidiaries should be very proud of this milestone; it is a testament to their hard work and dedication to our clients,” Mr. Williams said. “Karani is thrilled to join forces with Hudson RPO to accelerate growth, continue to provide excellent service to existing clients, begin to serve Hudson RPO’s clients and together win enterprise RPO business around the world.”
“The company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves,” Hudson Global said. “The company believes it can continue to take appropriate actions to manage the business in this challenging environment due to the flexibility of its workforce and the strength of its balance sheet.”
Hudson Global shares have added about 5.3 percent since the beginning of the year vs. the S&P 500’s decline of -16.3 percent.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media