Hudson Global Announces Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Hudson Global Announces Second Quarter 2024 Financial Results
Hudson Global, Inc. (NASDAQ: HSON), a leading global total talent solutions company, reported its financial results for the second quarter ending June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Revenue | $35.7 million | $44.9 million | -20.5% | $35.02 million |
| Adjusted Net Revenue | $17.6 million | $22.6 million | -22.0% | Not provided |
| Net Income | -$0.4 million | $0.6 million | Not provided | Not provided |
| EPS | -$0.15 | $0.18 | Not provided | -$0.07 |
| Adjusted Net Income per Share | $0.04 | $0.36 | Not provided | Not provided |
| Adjusted EBITDA | $0.7 million | $2.6 million | -73% | Not provided |
Despite achieving revenue slightly above consensus estimates and maintaining a cash position of $15.3 million, Hudson Global experienced a significant year-over-year decrease in key financial metrics. Revenues dropped 20.5%, and adjusted net income per diluted share saw a substantial decline, signaling a challenging operating environment.
Segment Revenue Performance
| Segment | Q2 2024 Revenue | Q2 2023 Revenue | YoY Change | Q2 2024 Adjusted Net Revenue | Q2 2023 Adjusted Net Revenue | YoY Change |
|---|---|---|---|---|---|---|
| Americas | $7.0 million | $8.6 million | -19% | $6.3 million | $8.3 million | -24% |
| Asia Pacific | $22.6 million | $27.9 million | -19% | $7.6 million | $9.4 million | -19% |
| Europe, Middle East, and Africa (EMEA) | $6.1 million | $8.0 million | -24% | $3.6 million | $4.7 million | -23% |
The decline in revenues across all geographic segments indicates across-the-board challenges in market conditions, with the EMEA segment facing the greatest pressure.
Comments from Company Officers
CEO Jeff Eberwein stated, "In the second quarter of 2024 we continued to see the impact of a market-driven slowdown in hiring activity across our existing client base. During the quarter, we continued to win new business, which we expect to ramp up in the coming months."
Jake Zabkowicz, another company officer, noted the strategic benefits of recent acquisitions: "In the second quarter of 2024, we expanded our geographic reach and service offerings with the acquisition of Striver, a UAE-based talent acquisition firm. This acquisition, in addition to our acquisition of Executive Solutions in the first quarter and our continued enhancement of internal talent, enable Hudson RPO to continue providing best-in-class service on a global scale."
Share Repurchase Program
Hudson Global has approved a new $5 million common stock repurchase program, effective August 8, 2023. As of June 30, 2024, the company had repurchased $1.5 million worth of stock in the second quarter and $2.1 million year-to-date.
Forward Guidance and Stock Price Movement
No specific forward guidance was provided. The company’s stock price increased by 4.85% after the earnings release.
In summary, Hudson Global faced a challenging quarter with notable year-over-year declines in revenue and profitability across all geographic segments. However, strategic acquisitions and internal efficiency measures are expected to contribute to future performance improvements.
