HSON...ANOTHER strong Q...Hudson Global, Inc. (Nasdaq: HSON) (“Hudson Global” or “the Company”), a leading global total talent solutions company, announced today financial results for the first quarter ended March 31, 2022.
2022 First Quarter Summary
Revenue of $51.9 million increased 50.7% from the first quarter of 2021 and 58.0% in constant currency.
Adjusted net revenue of $25.6 million increased 101.1% from the first quarter of 2021 and 107.1% in constant currency.
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. Adjusted net income per diluted share (non-GAAP measure)* was $1.23 compared to $0.07 in the first quarter of 2021.
Adjusted EBITDA (non-GAAP measure)* was $5.2 million compared to adjusted EBITDA of $0.8 million in the first quarter of 2021.
Total cash including restricted cash was $19.5 million at March 31, 2022.
“Our business exhibited very strong growth in revenue, adjusted net revenue, and adjusted EBITDA across all three regions in the first quarter of 2022 versus the prior year quarter,” said Jeff Eberwein, Chief Executive Officer 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.”
* The Company provides non-GAAP measures as a supplement to financial results based on accounting principles generally accepted in the United States ("GAAP"). Constant currency, adjusted EBITDA, EBITDA, adjusted net income or loss, and adjusted net income or loss per diluted share are defined in the segment tables at the end of this release and a reconciliation of such non-GAAP measures to the most directly comparable GAAP measures is included within such segment tables.
Regional Highlights
All growth rate comparisons are in constant currency.
Americas
In the first quarter of 2022, Americas revenue of $14.6 million increased 220% and adjusted net revenue of $13.7 million increased 226% from the first quarter of 2021. Strong organic growth in the Americas as well as the acquisition of Karani in Q4 2021 contributed to the region's growth. EBITDA increased to $2.4 million in the first quarter of 2022 compared to EBITDA loss of $0.3 million in same period last year. The region recorded adjusted EBITDA of $3.5 million in the first quarter of 2022 compared to adjusted EBITDA of $0.2 million in the same period last year.
Asia Pacific
Asia Pacific revenue of $31.1 million increased 30% and adjusted net revenue of $8.2 million increased 50% in the first quarter of 2022 compared to the same period in 2021. EBITDA was $2.0 million in the first quarter of 2022 compared to EBITDA of $0.8 million in the same period one year ago, and adjusted EBITDA was $2.4 million compared to adjusted EBITDA of $1.1 million in the first quarter of 2021.
Europe
Europe revenue in the first quarter of 2022 increased 40% to $6.2 million and adjusted net revenue of $3.7 million increased 37% from the first quarter of 2021. EBITDA increased slightly to $0.1 million in the first quarter of 2022 compared to EBITDA of $0.1 million in the same period one year ago. Adjusted EBITDA increased to $0.3 million in the first quarter of 2022 compared to adjusted EBITDA of $0.2 million in the first quarter of 2021.
Corporate Costs
In the first quarter of 2022, the Company's corporate costs were $1.0 million compared to $0.8 million in the prior year quarter, mainly due to compensation costs.
Liquidity and Capital Resources
The Company ended the first quarter of 2022 with $19.5 million in cash, including $0.4 million in restricted cash. The Company had negative $2.4 million in cash flow from operations during the first quarter of 2022, roughly unchanged versus the first quarter of 2021.
Share Repurchase Program
Since the beginning of 2019, the Company has reduced its share count by 12% 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.
COVID-19 Update
The Company is vigilantly monitoring the business environment surrounding COVID-19 and continues to proactively address this situation as it evolves. 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.
Conference Call/Webcast
The Company will conduct a conference call today at 12:00 p.m. ET to discuss this announcement. Individuals wishing to listen can access the webcast on the investor information section of the Company's web site at hudsonrpo.com.
If you wish to join the conference call, please use the dial-in information below:
Toll-Fee Dial-In Number: (866) 220-5784
International Dial-In Number: (615) 622-8063
Conference ID #: 6679227
The archived call will be available on the investor information section of the Company's web site at hudsonrpo.com.
The information posted by 2morrowsGains is opinion only and should not to be taken as investment advice.
