August 19, 2019 – Hudson Global Inc. / (NASDAQ:HSON) posted second quarter revenues of $26.4 million, up 59.7 percent in constant currency, from a year ago. By region, Hudson Asia Pacific led the charge, recording a revenue gain of 81.8 percent. Revenue growth in Asia Pacific was driven by the start of a significant contract in Australia to manage a portion of the contingent workforce for a “large Asia-based technology company,” according to Hudson.
Hudson Europe and Hudson America numbers, meanwhile, were also strong, posting an increase of 27.4 percent and 13.5 percent, respectively. The Old Greenwich, CT-based recruiting firm posted a net loss of $0.9 million, or $0.29 per basic and diluted share, compared with net loss of $1.4 million, or $0.42 per basic and diluted share, for the second quarter of 2018.
“In the second quarter, we reported double-digit revenue growth across all three regions and double-digit gross profit growth in our Americas and Europe businesses,” said Jeff Eberwein, CEO of Hudson Global. “The company also generated positive adjusted EBITDA excluding non-recurring expenses. In the second quarter, we added two new significant client relationships, one in Australia and one in the Americas, maintained a strong financial position, and continued to reduce corporate costs excluding non-recurring items.”
Mr. Eberwein said: “Earlier this year, market experts ranked Hudson RPO among the very top RPO providers in the Asia Pacific region (APAC). I met with many APAC clients and employees this quarter and was impressed with our client satisfaction, robust sales pipeline, market position and strong reputation in this region. I’m encouraged by this and similar feedback from our Americas and Europe regions and believe we are in a strong position to continue to grow with the talent solutions market.”
Share Repurchase Program
Under its $10 million common stock share repurchase program initiated in the third quarter of 2015 through the end of the second quarter of 2019, Hudson has purchased 405 thousand shares for a total of $8 million. The company continues to view opportunistic share repurchases as an attractive use of capital and expects to continue its aggressive share repurchase strategy going forward. After the current $10 million authorization is completed, the company expects to approve a new share repurchase authorization.
Vast Majority of Recruiting Firms Expect Increases in 2019
A brand new report by Bullhorn has found that 79 percent of recruiting firms expect to bring in more revenue this year than last. Optimism reigns across the sector despite growing concerns and emerging challenges related to automation, macroeconomics and politics.
Shares in Hudson were down 1.64 percent to $12 upon release of its second quarter numbers. The company had a market cap of $35.9 million, according to FT.com.
Hudson Global recently added Mimi Drake and Connia Nelson as new independent directors to its board of directors. Ms. Drake is the co-CEO of Permit Capital Advisors, an investment advisory firm based in suburban Philadelphia. Ms. Nelson is the senior vice president and CHRO for LifeWay.
“Last year we began a formal process to identify potential new directors to enhance our board,” said Richard Coleman, Hudson Global’s chairman of the board. “After conducting a thorough search, we are excited to announce the addition of Ms. Drake and Ms. Nelson to the Hudson Global board. Their extensive management, leadership and human resources experience make them exceptionally qualified to serve as independent directors.”
“Ms. Drake’s board experience coupled with her passion for improving workplace diversity and inclusion will make a significant and immediate contribution to the company,” Mr. Coleman said. “Ms. Nelson’s human resources background and talent management expertise lend themselves particularly well to Hudson Global’s business and she brings a strong client perspective to our board. Both appointments reflect our strong belief that the makeup of our board should reflect the values, experiences and diversity of thought of our employees and clients.”
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; Stephen Sawicki, Managing Editor; and Andrew W. Mitchell, Managing Editor – Hunt Scanlon Media