Hudson Global Posts 67 Percent Revenue Increase
March 14, 2022 – Old Greenwich, Conn.-based recruiting firm Hudson Global Inc. / (NASDAQ:HSON) has posted 2021 full-year revenues of $169.2 million, a 66.8 percent increase from a year earlier. The firm’s Americas revenue of $22.8 million increased 20 percent, Asia-Pacific revenue of $118.6 million increased 45 percent, and Europe revenue of $21.8 million was up 37 percent. The recruiting firm posted net income of $3.2 million, or $1.11 per basic and $1.07 per diluted share, compared to net loss of $1.2 million, or $0.43 per basic and diluted share, in 2020.
During the fourth quarter, Hudson posted revenue of $50.1 million, an increase of 83.2 percent from its previous fourth quarter. The company also recorded net income of $2.1 million, or $0.70 per basic and $0.67 per diluted share, vs. net income of $1.2 million, or $0.41 per basic and diluted share, in the fourth quarter of 2020. “2021 was a tremendous year for our business globally,” said Jeff Eberwein, CEO at Hudson Global. “Our entire team generated very strong growth in revenue, adjusted net revenue, and adjusted EBITDA for the fourth quarter and full year. Our sales activity levels and pipeline remain exceptionally robust and I continue to be encouraged by the increasing level of collaboration across our teams globally.”
“Our technology team and 2020 acquisition, Coit Group, significantly outperformed our expectations in 2021 and has flourished inside of Hudson RPO,” said Mr. Eberwein. “I am also pleased with the progress we have been making with the integration of Karani, our recent 2021 acquisition, and continue to be very excited about its growth potential as part of Hudson RPO.”
Acquisition
In November, Hudson Global 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.”
Outlook
Hudson Global has reduced its share count by 15 percent since Dec. 31, 2018 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.
“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.”
Related: Korn Ferry Posts 26 Percent Quarterly Revenue Gain
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media
