The following is a summary of the Hudson Global, Inc. (HSON) Q4 2023 Earnings Call Transcript:
Financial Performance:
Hudson Global reported Q4 2023 revenue of $34 million, down 22% year-over-year.
Adjusted net revenue was at $17 million, a decrease of 26%.
SG&A costs were $16 million, down 17% from Q4 2022.
Adjusted EBITDA was $0.1 million, down from $2.4 million a year ago.
Net income was $0.7 million or $0.23 per diluted share, versus $0.1 million or $0.02 per diluted share in Q4 2022.
Revenue for the Americas business decreased 38% and adjusted net revenue decreased 37% in constant currency.
The company generated an adjusted EBITDA loss of $0.7 million in the Americas.
Asia Pacific revenue and adjusted net revenue each decreased 18% year-over-year with an adjusted EBITDA of $0.9 million.
Europe business' revenue and adjusted net revenue each dropped 17% against the prior year quarter, but the adjusted EBITDA of $0.6 million increased slightly from a year ago.
Cash and restricted cash at the end of the fourth quarter amounted to $23 million, and the company's working capital, excluding cash, significantly rose to $12.0 million from $7.3 million at the end of 2022.
Business Progress:
Hudson Global made significant reductions in company costs while retaining client service quality and carried out several operational shifts, such as the recruitment of Jake Zabkowicz as Hudson RPO's Global CEO.
Plans include expanding geographic presence and service offerings to existing clients, projecting core business improvement in 2024.
11,000 shares repurchased in Q4 2023 and 44,000 shares in early 2024, viewing this as an attractive use of capital.
The recent acquisition in the Middle East strengthens their global presence and drives the goal of global expansion.
Business is projected to strongly rebound from Q2 2024 onwards, prompted by the significant new business wins in 2023.
Acquisitions in recent years have led to reflection of goodwill and net amortizable intangible assets on the balance sheet.
Days sales outstanding (DSO) reduced to 49 days in December 2023, down from 50 days a year previously.
More details: Hudson Global IR
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