Hudson Global Inc (HSON) 2024 Q1 法說會逐字稿

Good morning, and welcome to the Hudson Global conference call for the first quarter of 2024.

早安，歡迎參加 Hudson Global 2024 年第一季電話會議。

Our call today will be led by Chief Executive Officer, Jeffrey Eberwein, Chief Financial Officer, Mattew Diamond and Global CEO, Hudson RPO Zabkowicz,

我們今天的電話會議將由執行長 Jeffrey Eberwein、財務長 Mattew Diamond 和全球執行長 Hudson RPO Zabkowicz 主持。

Please be advised that the statements made during the presentation include forward-looking statements under applicable securities laws.

請注意，演示期間所做的陳述包括適用證券法規定的前瞻性聲明。

Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.

此類前瞻性陳述涉及某些風險和不確定性，可能導致實際結果與前瞻性陳述中包含的結果有重大差異。

These risks are discussed in our.

這些風險在我們的中進行了討論。

Form 8-K to be filed today and in our other filings made with the Securities and Exchange Commission, including our annual report on.

表格 8-K 將於今天提交，並包含在我們向美國證券交易委員會提交的其他文件中，包括我們的年度報告。

Form 10-K.

表格 10-K。

The Company disclaims any obligation to update any forward-looking statements.

該公司不承擔更新任何前瞻性陳述的義務。

During the course of this conference call, references will be made to non-GAAP terms such is constant currency, adjusted EBITDA and adjusted earnings per diluted share reconciliations for these measures are included in our earnings release and quarterly slides, both posted on our website, Hudson RPO.com. I encourage you to access our earnings materials at this time as they will serve as a helpful reference guide during our call.

在本次電話會議期間，將參考非公認會計原則術語，例如固定貨幣、調整後的EBITDA 和調整後的每股攤薄收益調節表，這些措施均包含在我們的收益發布和季度幻燈片中，均發佈在我們的網站上，哈德森 RPO.com。我鼓勵您此時訪問我們的收益資料，因為它們將在我們的電話會議期間作為有用的參考指南。

Please note, today's conference is being recorded.

請注意，今天的會議正在錄製中。

I will now turn the call over to Jeffrey Eberwein.

我現在將把電話轉給傑弗裡‧艾伯溫 (Jeffrey Eberwein)。

Thank you, operator, and welcome, everyone, we thank you for your interest in Hudson Global and for joining us today.

謝謝營運商，歡迎大家，我們感謝您對 Hudson Global 的興趣並今天加入我們。

I'll start by reviewing the first quarter 2024 results and Mattew Diamond our CFO, will provide some additional details on our financials.

我將首先回顧 2024 年第一季的業績，我們的財務長 Mattew Diamond 將提供有關我們財務狀況的一些其他詳細資訊。

We're also excited to be joined on the call today by Zabkowicz, up with global CEO. of our Hudson RPO business who joined the team in November and will provide us with an update today.

我們也很高興能與扎布科維奇 (Zabkowicz) 和全球執行長一起參加今天的電話會議。 Hudson RPO 業務的負責人於 11 月加入團隊，今天將為我們提供最新情況。

As, you can see in our news release issued this morning, our first quarter 2024 results were weak due to lower-than-normal hiring volumes at many of our clients.

正如您在今天早上發布的新聞稿中看到的那樣，由於許多客戶的招聘量低於正常水平，我們 2024 年第一季的業績疲軟。

For the first quarter of 2024, we reported revenue of $33.9 million down 20% year-over-year in constant currency, while our adjusted net revenue was $16.3 million, down 25% year-over-year in constant currency, our adjusted EBITDA loss for the first quarter was $1.5 million versus positive adjusted EBITDA of $1.1 million a year ago.

2024 年第一季度，我們報告的營收為 3,390 萬美元，以固定匯率計算年減 20%，調整後淨收入為 1,630 萬美元，以固定匯率計算年減 25%，調整後 EBITDA 虧損第一季度的淨利潤為150 萬美元，而去年同期調整後的EBITDA 為110 萬美元。

In addition, we reported net loss of $2.9 million or $0.95 per diluted share versus net income of 400,000 or $0.11 per diluted share in the same period of last year.

此外，我們報告淨虧損為 290 萬美元，即稀釋後每股 0.95 美元，而去年同期淨利潤為 40 萬美元，即稀釋後每股 0.11 美元。

Q1 2024 adjusted net loss per diluted share was $0.72 compared to net income per diluted share of $0.22 in the first quarter of 2023.

2024 年第一季調整後每股攤薄淨虧損為 0.72 美元，而 2023 年第一季攤薄後每股淨利為 0.22 美元。

Now I'll turn the call over to Mattew Diamond, our CFO, to review our financial results by region, as well as some additional financial details from the first quarter.

現在，我將把電話轉給我們的財務長馬修戴蒙德（Mattew Diamond），以審查我們按地區劃分的財務業績，以及第一季的一些其他財務細節。

Thank you.

謝謝。

Jeff, and good morning, everyone revenue and adjusted net revenue for our Americas business both decreased 35% year-over-year.

傑夫，大家早上好，我們美洲業務的收入和調整後淨收入均年減了 35%。

In constant currency, we reported an adjusted EBITDA loss of $0.7 million for the quarter versus last year's breakeven.

以固定匯率計算，我們報告本季調整後 EBITDA 虧損 70 萬美元，而去年則達到損益兩平。

Adjusted EBITDA revenue for our Asia Pacific business decreased 18%, while adjusted net revenue decreased 20% year-over-year in constant currency.

以固定匯率計算，亞太區業務調整後 EBITDA 營收年減 18%，調整後淨收入年減 20%。

In Q1 2024, we reported an adjusted EBITDA loss of $0.2 million compared to adjusted EBITDA of $1.7 million a year ago.

2024 年第一季度，我們報告調整後 EBITDA 損失為 20 萬美元，而一年前調整後 EBITDA 為 170 萬美元。

Revenue for our Europe business decreased 6% versus the prior year quarter in constant currency and adjusted net revenue decreased 13%.

以固定匯率計算，我們歐洲業務的營收較上年同期下降 6%，調整後淨收入下降 13%。

Our Q1 2024 adjusted EBITDA was $0.3 million compared to adjusted EBITDA of $0.5 million in the first quarter of 2023.

我們的 2024 年第一季調整後 EBITDA 為 30 萬美元，而 2023 年第一季調整後 EBITDA 為 50 萬美元。

Turning to some additional financial details from the first quarter we ended the first quarter with $21.0 million in cash, including $0.6 million of restricted cash days sales outstanding was 52 days at March 31st, 2024, compared to 49 days at December 31st, 2023,

談到第一季的一些其他財務細節，我們第一季結束時擁有2,100 萬美元現金，其中包括60 萬美元的限制現金銷售天數，截至2024 年3 月31 日為52 天，而截至2023 年12月31 日為49 天，

In connection with our recent acquisitions, including core group in 2020 for R&D in 2021, putting badge in 2022 and [Hudson Singapore] in 2023.

與我們最近的收購相關，包括 2020 年的核心集團、2021 年的研發、2022 年的徽章和 2023 年的 [Hudson Singapore]。

Our balance sheet as of March 31st, 2024, reflects $5.7 million of goodwill and $3.3 million of net amortizable intangibles assets.

截至 2024 年 3 月 31 日，我們的資產負債表反映了 570 萬美元的商譽和 330 萬美元的可攤銷無形資產淨值。

The company's working capital, excluding cash, was $10.2 million compared to $12 million at year end 2023.

該公司的營運資金（不包括現金）為 1,020 萬美元，而 2023 年底為 1,200 萬美元。

SG&A expense in the first quarter was $18 million, down 13% versus the same period last year.

第一季的 SG&A 費用為 1,800 萬美元，比去年同期下降 13%。

In constant currency, the company used $1.8 million in cash flow from operations during the first quarter of 2024 compared to a $5 million cash outflow from operations in the first quarter of 2023.

以固定匯率計算，該公司 2024 年第一季營運現金流量為 180 萬美元，而 2023 年第一季營運現金流為 500 萬美元。

I'll now turn the call over to Zabkowicz, was afterwards global CEO. of Hudson RPO to give some perspective on our RPO business.

現在我將把電話轉給扎布科維奇（Zabkowicz），他是後來的全球執行長。 Hudson RPO 對我們的 RPO 業務提出了一些看法。

Thank you, Matt, and good morning, Hudson. made considerable strides in the first quarter of 2024, and both our service offerings and our global market presence to better position ourselves for a long-term success thus far we have announced an organic enhancement of our boutique search offering in two small, but very important UAE. based acquisitions of executive solutions and driver these acquisitions give us an immediate presence in book of business in the Middle East and ensure that we continue to find in place the best talent globally for our clients.

謝謝你，馬特，早安，哈德森。我們在2024 年第一季取得了長足的進步，我們的服務產品和全球市場影響力都為了更好地定位自己以取得長期成功，到目前為止，我們已宣佈在兩個小但非常重要的方面對我們的精品搜尋產品進行有機增強阿聯酋。基於執行解決方案的收購並推動這些收購使我們立即在中東的業務中佔有一席之地，並確保我們繼續為客戶找到全球最優秀的人才。

We also initiated internal reorganization, allowing us greater agility to support our clients, current clients and future partners and also invested in our global sales organization to support the expansion initiatives that we've put in place.

我們還啟動了內部重組，使我們能夠更靈活地支持我們的客戶、當前客戶和未來的合作夥伴，並投資於我們的全球銷售組織，以支持我們已經實施的擴張計劃。

We've expanded our team with the hiring of Jeffrey Eberwein, as, Chief Administrative Officer, and Rachel Marshalsea as a director of client solutions for media, both Jeff and Rachel to operate bring extensive experience in leadership excellence to our team and tremendous value to our organization.

我們透過聘請Jeffrey Eberwein 擔任首席行政官和Rachel Marshalsea 擔任媒體客戶解決方案總監來擴大我們的團隊，Jeff 和Rachel 的營運為我們的團隊帶來了卓越領導力方面的豐富經驗，並為我們的團隊帶來了巨大的價值。

As we continue to grow our global footprint,

隨著我們不斷擴大全球足跡，

We are starting to see the market come back to life in certain sectors such as industrial and life sciences.

我們開始看到工業和生命科學等某些領域的市場恢復活力。

Our clients are becoming more bullish in the workforce plans, and we're at the early stages of seeing incremental growth within our current base.

我們的客戶對勞動力計劃變得更加樂觀，而且我們正處於在現有基礎上實現增量成長的早期階段。

I'm optimistic about our future path forward.

我對我們未來的前進道路感到樂觀。

Our pipeline is continuing to grow with a diverse set of opportunities, both enterprise and project solutions, and it has never been as robust as it is today.

我們的通路不斷成長，提供了各種機會，包括企業和專案解決方案，而且從未像今天這樣強勁。

Our investment in our go-to-market strategy is reaching new client groups across the globe and in six months since joining Hudson, our leadership team continues to make necessary changes to become a leaner organization and provide excellent support to our clients.

我們對市場進入策略的投資正在涵蓋全球的新客戶群體，自加入翰德以來的六個月內，我們的領導團隊繼續進行必要的變革，以成為一個更精簡的組織，並為我們的客戶提供出色的支援。

I will now turn the call back over to Jeff to review the outlook for our business and closing remarks.

我現在將把電話轉回給傑夫，回顧我們的業務前景並發表結束語。

Thank you, Zabkowicz, while first quarter results were weak and some of this weakness has continued into Q2, we are encouraged by the overall trends we're seeing in the RPO market and the feedback we are receiving from our clients.

謝謝你，Zabkowicz，雖然第一季度的業績疲軟，並且這種疲軟的情況部分持續到第二季​​度，但我們對 RPO 市場的整體趨勢以及我們從客戶那裡收到的反饋感到鼓舞。

In general, we expect hiring to expand as we expand our footprint through organic and inorganic growth.

總的來說，隨著我們透過有機和無機成長擴大業務範圍，我們預期招募規模也會擴大。

We believe our stock remains undervalued.

我們認為我們的股票仍然被低估。

And during the first quarter, we continue to make share repurchases under our 5 million common share repurchase program initiated in August 2023 under this program to date we have repurchased almost 21,000 shares in the open market for a total of 400,000.

在第一季度，我們繼續根據 2023 年 8 月啟動的 500 萬股普通股回購計畫進行股票回購，迄今為止，我們已在公開市場回購了近 21,000 股，總計 40 萬股。

In addition, we repurchased a total of 44,000 additional shares in the first quarter of 2024 and a privately negotiated transaction, leaving a balance of $4 million available for purchase under our 2023 authorization.

此外，我們在 2024 年第一季額外回購了總計 44,000 股股票，並透過私下協商的交易，在 2023 年授權下剩餘 400 萬美元可供購買。

We continue to view share repurchases as an attractive use of capital, and we expect to buy more over time.

我們仍然認為股票回購是一種有吸引力的資本用途，我們預計隨著時間的推移會購買更多股票。

I want all of our highly dedicated employees to retained for their flexibility, hard work and dedication to our clients and business in the challenging conditions we've been working through.

我希望我們所有高度敬業的員工能夠在我們所經歷的充滿挑戰的條件下保留他們的靈活性、勤奮工作以及對客戶和業務的奉獻精神。

Operator, can you please open the line for questions?

接線員，您可以開通提問線路嗎？

Marc Riddick from Sidoti & Company

Sidoti & Company 的 Marc Riddick

Good morning.

早安.

Morning.

早晨。

So, I was wondering if you could talk a little bit about regional differentiation as far as what you're seeing with the client activity and potential for recovery?

所以，我想知道您是否可以談談您所看到的客戶活動和復甦潛力方面的區域差異？

And maybe if you if you're seeing any green shoots that whether it's by industry vertical or any color that we should be thinking about as far as folks that are sort of willing to sort of pick-up activity?

也許如果你看到任何萌芽，無論是垂直行業還是任何顏色，我們都應該考慮那些願意參與某種接機活動的人？

Yes, good question, Marc and Jake, can you handle that one?

是的，問得好，馬克和傑克，你們能處理好這個問題嗎？

We did absolutely market morning, so I would more than one geographical footprint.

我們絕對是早上趕集的，所以我的足跡不只一個。

Good morning, sir.

早上好先生。

From a geographical footprint, I think we're seeing signs of life back in the US, and also in India.

從地理足跡來看，我認為我們在美國和印度都看到了生命的跡象。

Holistically.

整體而言。

The Middle East is continuing to be strong in the geographical footprint.

中東地區的地理足跡持續保持強勁。

There's a lot of investments with both regional companies and also multinationals coming into the Middle East.

地區性公司和跨國公司都有大量投資進入中東。

I think areas in A-Pac.

我認為是亞太地區的地區。

You do see some strength coming back online, but it's a little bit slower compared to the other regions I just mentioned from the industrial from the sector specific life sciences continues to be stable and strong.

你確實看到一些力量正在恢復，但與我剛才提到的其他地區相比，它的速度要慢一些，來自特定生命科學行業的工業繼續保持穩定和強勁。

I do expect that to continue to be that cornerstone for us as we continue to move forward.

我確實希望這將繼續成為我們繼續前進的基石。

And we're also seeing signs of life, both in financial and also manufacturing and industrial tech is still being a little bit of a lagger right now for us, but we're bullish on tech picking back up in H2 of this next year.

我們也看到了金融和製造業的生命跡象，而工業技術目前對我們來說仍然有點滯後，但我們看好明年下半年技術的復甦。

But from a standpoint of sector, we're seeing some strong signs again in life sciences, industrial and manufacturing and the financial services.

但從產業的角度來看，我們在生命科學、工業和製造以及金融服務領域再次看到了一些強烈的跡象。

Great.

偉大的。

That's helpful and I was wondering, could talk a little bit about are you seeing any changes as far as pricing environment, pricing dynamic?

這很有幫助，我想知道，可以談談您是否看到定價環境、定價動態方面發生任何變化？

And maybe are there any particular areas that we should be thinking about as far as some of the expense creep for the next couple of quarters or so ahead of future demand recovery?

也許在未來需求復甦之前，我們應該考慮一些特定領域，以應對未來幾季左右的費用攀升？

Yes, Marc, I think that's another great question.

是的，馬克，我認為這是另一個很好的問題。

I would say from a from a pricing and cost basis analysis of some of our partners, I would say, yes, a lot of our partners are under cost pressure to look at different solutions on ways to create value for their for their businesses, but also reduce costs within their businesses.

我想說的是，從我們一些合作夥伴的定價和成本基礎分析來看，我想說，是的，我們的許多合作夥伴都面臨著成本壓力，需要尋找不同的解決方案來為他們的業務創造價值，但是還可以降低企業內部的成本。

And we're responding and reacting and partnering with a lot of our current clients as well as future clients on unique solutions that bring that to market for them.

我們正在與許多當前和未來的客戶做出回應和反應，並與他們合作開發獨特的解決方案，將其推向市場。

Is it as robust as it has been in the past on cost pressures?

在成本壓力方面，它是否像過去一樣強勁？

I think that's loosened up a little bit, but it's still top of mind coming out of the pandemic and into 2023.

我認為這一點有所放鬆，但從疫情結束到 2023 年，這仍然是首要考慮因素。

Now we're in 2024, of course.

當然，現在已經是 2024 年了。

So is that is there.

那裡也是如此。

We're being we're being aggressive in our go-to-market strategy in investing our growth to be able to help support our clients and meet them where they are.

我們正在積極實施市場策略，投資我們的成長，以便能夠幫助支援我們的客戶並滿足他們的需求。

And that's why you saw the recent acquisitions of the Middle East because we have a lot of our partners that would like to drive some solutions and partnerships in those regions.

這就是為什麼你看到最近在中東的收購，因為我們有許多合作夥伴希望在這些地區推動一些解決方案和合作夥伴關係。

Great and that actually leads me right into what my next question was going to be, which is sort of the general sort of acquisition pipeline that you see out there and maybe you can sort of talk about maybe if you've seen much of a change of availability of Target's valuation competition for assets, things like that,

太棒了，這實際上引導我進入我的下一個問題，這是你看到的一般類型的收購管道，如果你看到了很大的變化，也許你可以談論一下塔吉特資產估值競爭的可用性，諸如此類，

Jeff, would you like to take that?

傑夫，你願意接受嗎？

Good No, you go ahead.

好 不，你繼續。

Okay.

好的。

Thanks., from a standpoint of acquisition targets is part of our growth strategy is M&A, and we're going to continue down this route we're very bullish about the targets that are out there.

謝謝。

I can tell you that we are having many opportunities come across our door and in our desk, and we're looking at every opportunity holistically I do I am bullish about [H2] for us, both from organic growth and from M&A activity and from M&A activity.

我可以告訴你，我們有很多機會出現在我們的門口和辦公桌上，我們正​​在全面地看待每一個機會，我對我們的 [H2] 持樂觀態度，無論是來自有機增長、併購活動還是來自併購活動。

I could share with you there's a lot of partners are there a lot of opportunities that are out there, both from a geographical standpoint, but also from an industrial and sector expertise that we're looking to you bring in to round out our overall service offerings for our clients.

我可以與您分享，有很多合作夥伴，那裡有很多機會，無論是從地理角度來看，還是從我們希望您引入的行業和部門專業知識來完善我們的整體服務為我們的客戶提供的產品。

Mark, I would just add to that that our preference always is organic growth, investing in our team, making some key hires growing our team some and with a couple of these small acquisitions in the Middle East, it was felt more like we just hired the teams then did an acquisition, which is a faster, more effective way to do some of the small ones.

馬克，我想補充一點，我們的偏好始終是有機增長，投資於我們的團隊，聘請一些關鍵員工來發展我們的團隊，並且通過在中東進行的一些小型收購，感覺更像是我們剛剛聘請了然後，團隊進行了一次收購，這是完成一些小規模收購的更快、更有效的方式。

So, acquisitions are really just meant to fill in gaps in our geographies or maybe some of our sector expertise and we continue to look, we benefit a lot from being in the market we're looking, but our bar is really high, too.

因此，收購實際上只是為了填補我們地區的空白，或者可能是我們的一些行業專業知識，我們將繼續尋找，我們從進入我們正在尋找的市場中受益匪淺，但我們的門檻也非常高。

I'll complete one.

我會完成一個。

Got you.

明白你了。

Thank you very much.

非常感謝。

(Operator Instructions)

（操作員說明）

That concludes today's question and answer session.

今天的問答環節到此結束。

I will now turn the call over to Jeff Eberwein for closing remarks.

現在我將把電話轉給傑夫·埃伯溫 (Jeff Eberwein) 致閉幕詞。

Thank you all for joining us today and for your interest in Hudson Global.

感謝大家今天加入我們以及對 Hudson Global 的興趣。

Feel free to contact us any time using the contact information found in our press release or on our Investor Relations website as we look forward to next quarter's update call.

請隨時使用我們的新聞稿或投資者關係網站上的聯絡資訊與我們聯繫，我們期待下個季度的更新電話會議。

Have a good day, everybody.

祝大家有美好的一天。

Thank you for joining the Hudson Global first quarter conference call.

感謝您參加 Hudson Global 第一季電話會議。

Today's call is being recorded and will be available on the Investors section of the website, Hudson RPO.com. You may now disconnect.

今天的電話會議正在錄音，並將在 Hudson RPO.com 網站的投資者部分提供。您現在可以斷開連線。