Hudson Global Inc (HSON) 2024 Q2 法說會逐字稿

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

早安，歡迎參加 2024 年第二季 Hudson Global 電話會議。

Our call today will be led by Chief Executive Officer, Jeff Eberwein; Chief Financial Officer, Matt Diamond; and Global CEO of Hudson RPO, Jake Zabkowicz.

我們今天的電話會議將由執行長 Jeff Eberwein 主持；財務長馬特戴蒙德；以及 Hudson RPO 全球執行長 Jake Zabkowicz。

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 Form 8-K to be filed today and in our other filings made with the Securities and Exchange Commission, including our annual report on Form 10-K.

這些風險在我們今天提交的 8-K 表格以及向美國證券交易委員會提交的其他文件（包括我們的 10-K 表格年度報告）中進行了討論。

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 as constant currency, adjusted EBITDA and adjusted earnings per diluted share.

在本次電話會議期間，將參考非公認會計準則術語，例如固定匯率、調整後 EBITDA 和調整後稀釋每股盈餘。

Reconciliations for these measures are included in our earnings release and quarterly slides, both posted on our website, hudsonrpo.com.

這些措施的調節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 hudsonrpo.com 上。

I encourage you to access our earnings materials at this time as they will serve as a helpful reference guide during our call.

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。

(Operator Instructions) Please note this event is being recorded.

（操作員說明）請注意此事件正在被記錄。

I will now turn the call over to Jeff Eberwein.

我現在將把電話轉給傑夫艾伯溫。

Thank you, operator and welcome, everyone.

謝謝運營商，歡迎大家。

We thank you for your interest in Hudson Global and for joining us today.

我們感謝您對 Hudson Global 的興趣並今天加入我們。

I'll start by reviewing the second quarter 2024 results then Matt Diamond, our CFO will provide some additional details on our financials.

我將首先回顧 2024 年第二季度的業績，然後我們的財務長 Matt Diamond 將提供有關我們財務狀況的一些其他詳細資訊。

Lastly, Jake Zabkowicz, Global CEO of our Hudson RPO business, will provide us with an update on our RPO business including recent developments and milestones.

最後，Hudson RPO 業務全球執行長 Jake Zabkowicz 將為我們介紹 RPO 業務的最新情況，包括最新進展和里程碑。

Our second quarter 2024 results were impacted by the continuation of lower than normal hiring volumes at many of our clients in the markets we serve.

我們所服務的市場中許多客戶的招募量持續低於正常水平，影響了我們 2024 年第二季的業績。

For the second quarter of 2024, we reported revenue of $35.7 million, down 20% year-over-year in constant currency while our adjusted net revenue was $17.6 million, down 22% year-over-year in constant currency.

2024 年第二季度，我們的營收為 3,570 萬美元，以固定匯率計算年減 20%，調整後淨收入為 1,760 萬美元，以固定匯率計算年減 22%。

Our adjusted EBITDA for the second quarter was $0.7 million versus adjusted EBITDA of $2.6 million, a year ago.

我們第二季調整後的 EBITDA 為 70 萬美元，而一年前調整後的 EBITDA 為 260 萬美元。

In addition, we reported a net loss of $0.4 million or $0.15 per diluted share versus net income of $0.6 million or $0.18 per diluted share in the same period of last year.

此外，我們報告淨虧損 40 萬美元或稀釋後每股 0.15 美元，而去年同期淨利潤為 60 萬美元或稀釋後每股 0.18 美元。

Q2 2024 adjusted net income per diluted share was $0.04 compared to net income per diluted share of $0.36 in the second quarter of 2023.

2024 年第二季調整後每股攤薄淨利為 0.04 美元，而 2023 年第二季調整後每股攤薄淨利為 0.36 美元。

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

現在，我將把電話轉給馬特·戴蒙德（Matt Diamond），以審查我們按地區劃分的財務業績，以及第二季度的一些其他財務細節。

Thank you, Jeff, and good morning, everyone.

謝謝你，傑夫，大家早安。

Revenue for our Americas business decreased 19% and adjusted net revenue decreased 24%, year-over-year in constant currency.

以固定匯率計算，我們美洲業務的營收年減 19%，調整後淨收入年減 24%。

We reported adjusted EBITDA of $0.6 million for the quarter versus last year's breakeven adjusted EBITDA.

我們報告本季調整後 EBITDA 為 60 萬美元，而去年則為盈虧平衡調整後 EBITDA。

Revenue and adjusted net revenue for our Asia Pacific business both decreased 19% year-over-year in constant currency.

以固定匯率計算，我們亞太區業務的營收和調整後淨收入均較去年同期下降 19%。

In Q2 2024, we reported adjusted EBITDA of $0.8 million compared to adjusted EBITDA of $2.5 million, a year ago.

2024 年第二季度，我們報告調整後 EBITDA 為 80 萬美元，而一年前調整後 EBITDA 為 250 萬美元。

Revenue for our EMEA business decreased 24% versus the prior year quarter in constant currency, and adjusted net revenue decreased 23%.

以固定匯率計算，我們的 EMEA 業務收入較上年同期下降 24%，調整後淨收入下降 23%。

Our Q2 2024 adjusted EBITDA was $0.3 million compared to adjusted EBITDA of $1.1 million in the second quarter of 2023.

2024 年第二季調整後 EBITDA 為 30 萬美元，而 2023 年第二季調整後 EBITDA 為 110 萬美元。

Turning to some additional financial details in the second quarter.

轉向第二季的一些額外財務細節。

We ended the second quarter with $15.3 million in cash including, $0.6 million of restricted cash.

第二季末，我們擁有 1,530 萬美元現金，其中包括 60 萬美元限制性現金。

The company used $4.3 million in cash flow from operations during the second quarter of 2024 compared to $2.6 million of cash generated from operations in the second quarter of 2023.

該公司在 2024 年第二季使用了 430 萬美元的營運現金流，而 2023 年第二季的營運現金流為 260 萬美元。

Day sales outstanding was 59 days at June 30, 2024, compared to 52 days at March 31, 2024.

截至2024年6月30日，應收日銷售額為59天，而2024年3月31日為52天。

In connection with our acquisition activity in recent years, our balance sheet as of March 31, 2024, reflects $5.6 million of goodwill and $3.0 million of net amortizable intangible assets.

就我們近年來的收購活動而言，截至 2024 年 3 月 31 日，我們的資產負債表反映了 560 萬美元的商譽和 300 萬美元的可攤銷無形資產淨值。

The company working capital excluding cash was $14.6 million compared to $12.0 million at December 31, 2023.

公司不包括現金的營運資本為 1,460 萬美元，而 2023 年 12 月 31 日為 1,200 萬美元。

I'll now turn the call over to Jake to discuss our RPO business.

我現在將電話轉給 Jake，討論我們的 RPO 業務。

Thank you, Matt, and good morning.

謝謝你，馬特，早安。

In the second quarter of 2024, we further expanded our geographical footprint and service offerings, with the acquisition of Striver, a UAE based talent acquisition firm.

2024 年第二季度，我們收購了位於阿聯酋的人才招聘公司 Striver，進一步擴大了我們的地理覆蓋範圍和服務範圍。

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.

此次收購加上我們在第一季收購 Executive Solutions 以及我們不斷增強的內部人才，使 Hudson RPO 能夠繼續在全球範圍內提供一流的服務。

On the organic growth front, we have prioritized our land and expand strategy within our existing client base and made notable progress on this initiative in the second quarter, where we added significant scope to a couple of our key existing client relationships.

在有機成長方面，我們在現有客戶群中優先考慮了土地和擴張策略，並在第二季度在這一舉措上取得了顯著進展，我們為一些關鍵的現有客戶關係擴大了重要範圍。

While the scope and scale of new business opportunities coming to market have been smaller than what we're used to seeing, we've been nimble and aggressive in pursuing all opportunities, with the goal of expanding and deepening these relationships over time as hiring conditions improve.

雖然進入市場的新商機的範圍和規模比我們過去看到的要小，但我們一直靈活而積極地尋求所有機會，目標是隨著時間的推移擴大和深化這些關係，作為招聘條件提升。

In general, we are seeing client executives taking longer to make decisions than what we've seen historically, which is why the growth in our sales pipeline of potential opportunities have outpaced our opportunities converted to wins.

總的來說，我們發現客戶主管做出決策的時間比我們以往看到的要長，這就是為什麼我們的潛在機會銷售管道的成長速度超過了我們轉化為勝利的機會的速度。

Lastly, we've made difficult but necessary decisions regarding reductions in our global workforce in response to the market conditions, as Jeff alluded to earlier.

最後，正如傑夫之前提到的那樣，為了應對市場狀況，我們在全球裁員方面做出了艱難但必要的決定。

In addition to protecting our profitability these cost saving measures help us reorganize and optimize the talent within our organization, so we're better positioned to respond to future up terminal activity levels.

除了保護我們的獲利能力之外，這些成本節約措施還幫助我們重組和優化組織內的人才，因此我們能夠更好地應對未來終端活動水準的提高。

I'll now turn the call back over to Jeff for some closing remarks.

現在我將把電話轉回給傑夫，讓他做一些結束語。

Thank you, Jake.

謝謝你，傑克。

Before opening the line to questions, I'd like to reinforce Jake's message that despite today's talent environment, we're encouraged by the feedback we're receiving from our clients, and are excited by our new business wins and robust sales pipeline.

在開始提問之前，我想強調傑克的訊息，即儘管當今的人才環境如此，但我們對從客戶那裡收到的反饋感到鼓舞，並對我們新的業務勝利和強勁的銷售管道感到興奮。

Furthermore the results of the internal changes and cost saving initiatives we've implemented, across our entire organization should help our bottom line results in the coming quarters.

此外，我們在整個組織中實施的內部變革和成本節約措施的結果應該有助於我們未來幾季的利潤。

We're confident in our ability to deliver value to stockholders, while serving the needs of existing and new clients going forward.

我們對為股東創造價值的能力充滿信心，同時滿足現有和新客戶的未來需求。

We continue to believe our stock is undervalued and thus continue to view share repurchases as an attractive use of capital.

我們仍然認為我們的股票被低估，因此繼續將股票回購視為一種有吸引力的資本用途。

Under our 5 million common share -- $5 million common share repurchase program initiated last year, we've repurchased to date over 150,000 shares for $2.5 million, including 87,000 shares for $1.5 million in the second quarter of 2024.

根據我們去年啟動的500 萬股普通股——價值500 萬美元的普通股回購計劃，迄今為止，我們已以250 萬美元的價格回購了超過150,000 股股票，其中包括2024 年第二季度以150 萬美元的價格回購了87,000 股股票。

These repurchases were executed in both the open market, as well as privately negotiated transactions, and we continue to look for cost-effective opportunities to shrink our share count over time.

這些回購是在公開市場以及私下協商的交易中執行的，我們將繼續尋找具有成本效益的機會來隨著時間的推移減少我們的股份數量。

Operator, could you please open the line for questions?

接線員，可以撥打電話詢問問題嗎？

(Operator Instructions) Marc Riddick, Sidoti.

（操作員說明）Marc Riddick，Sidoti。

Hey, good morning.

嘿，早安。

Good morning.

早安.

So I was wondering if we could start with understandable client behavior lately.

所以我想知道我們最近是否可以從可以理解的客戶行為開始。

I was wondering if you could talk a little bit about the when talking about the I think, the commentary is, around the smaller scope and scale.

我想知道您是否可以在談論我認為的評論時談論較小的範圍和規模。

Can you talk about maybe some of the things that folks are kind of willing to be active with currently and maybe some of the things you feel like they're sort of pushing off?

您能否談談人們目前願意積極參與的一些事情，以及您覺得他們正在推遲的一些事情？

Sure.

當然。

Jake, why don't you handle that one.

傑克，你為什麼不處理那個？

Good morning sir.

早上好，先生。

How are you?

你好嗎？

Good morning.

早安.

Good.

好的。

Yourself?

你自己？

Very good.

非常好。

Thank you.

謝謝。

Great question.

很好的問題。

So what we're seeing in the market right now is a little bit of a hesitation and some have coined it to great hesitation where the scope and scale of new business is out there.

因此，我們現在在市場上看到的是有點猶豫，有些人稱之為巨大的猶豫，因為新業務的範圍和規模已經存在。

But when it really comes to the finalization of what's being offered or what's being needed that scope has significantly shrunk, where we have seen the level of smaller deals, say, between 500 to 1,500 hires increase and a little bit of a slowdown or hesitation on those larger deals of, say, 5,000-plus hires.

但當真正涉及到所提供的內容或所需要的內容的最終確定時，範圍已顯著縮小，我們看到了規模較小的交易的水平，例如，增加了500 至1,500 名員工，並且在招聘方面略有放緩或猶豫。 那些規模較大的交易，例如僱用 5,000 多名員工。

We do still see those opportunities in the market, but those are taking a little bit longer than what we normally see in our sales cycle, and that's impacting, obviously, our new logo revenue growth at this point in time.

我們仍然在市場上看到了這些機會，但這些機會比我們在銷售週期中通常看到的時間要長一些，這顯然影響了我們目前新標誌收入的成長。

But we do expect that to pick up in Q3 and Q4.

但我們確實預計這一情況將在第三季和第四季有所回升。

And I'm Marc Lynn -- I'm sorry, Marc, when Jake was talking about hires, he was talking about annual hiring level, so 5,000 would be like a three year contract where we're pricing it and budgeting it on 5,000 hires per year going forward.

我是馬克林恩 - 對不起，馬克，當傑克談論招聘時，他談論的是年度招聘水平，所以 5,000 人就像一份三年期合同，我們將其定價並以 5,000 人為預算。人數。

Okay.

好的。

And then are you getting any sense as far as feedback as to clients receptivity to engage with RPO?

那麼，您對客戶參與 RPO 的接受度回饋有任何了解嗎？

Or are you getting a sense of those who are considering shifting to maybe folks who have not been in this space before as a measure of efficiency going forward?

或者你是否了解那些正在考慮轉向以前沒有進入過這個領域的人作為未來效率衡量標準的人？

Marc, I would say

馬克，我想說

--

--

Jake, go ahead.

傑克，繼續吧。

Yeah.

是的。

Marc, I get from the standpoint of that.

馬克，我是從這個角度來看的。

We're seeing really no changes from the behaviors of first new year clients that have decided to go out to RPO versus existing clients and either expanding or contracting.

我們發現，與現有客戶相比，決定採用 RPO 的第一批新年客戶的行為實際上沒有任何變化，無論是擴張還是收縮。

So it's not a notable change.

所以這不是一個顯著的改變。

What I would share with you is that RPO still is an avenue of cost savings and scalability to many of our partners and clients.

我想與您分享的是，對於我們的許多合作夥伴和客戶來說，RPO 仍然是節省成本和可擴展性的一種途徑。

We're seeing that in a lot of our base, where we're actually expanding into other geographies as I mentioned earlier other remote geographies that they do not have the scale or flexibility to expand into those regions.

我們在我們的許多基地看到這一點，我們實際上正在擴展到其他地區，正如我之前提到的其他偏遠地區，他們沒有規模或靈活性來擴展到這些地區。

So as far as the first year and or clients taking their business back in house, we're not seeing a major trend or a shift than what we've seen in the past.

因此，就第一年和/或客戶將業務帶回公司內部而言，我們沒有看到與過去相比的主要趨勢或轉變。

Okay.

好的。

And then, I wanted to -- I wasn't -- bear with me.

然後，我想──我沒有──忍受我。

I was double checking on thinking about and maybe you could talk a little bit about the tax rate.

我仔細考慮了一下，也許你可以談談稅率。

I guess in 2Q I think that was maybe a little higher than what or maybe there was something in there that maybe we're missing.

我想在第二季度，我認為這可能比實際水平要高一點，或者可能是我們遺漏了一些東西。

Yeah Marc.

是的，馬克。

Our tax rate is notoriously hard to predict because of our mix of business.

由於我們的業務混合，我們的稅率是出了名的難以預測。

And the best guidance I can give you is just to use a blend of statutory rates across the countries we do business.

我能為您提供的最佳指導就是使用我們開展業務的國家/地區的法定費率組合。

The US is lower than Australia, and we don't pay any tax in the US.

美國比澳洲低，而且我們在美國不交任何稅。

So our tax rate in the US is zero.

所以我們在美國的稅率是零。

So it really ties in to business mix, that's probably the best advice I can give you.

所以它確實與業務組合有關，這可能是我能給你的最佳建議。

And then our 10-Q is going to come out after the close today and there'll be some more disclosure in the 10-Q.

然後我們的 10-Q 報告將在今天收盤後發布，並且 10-Q 報告中將會有更多披露。

And if that doesn't answer any questions you have then give Matt Diamond, our CFO a call.

如果這不能回答您的任何問題，請致電我們的財務長 Matt Diamond。

Okay.

好的。

I'm sure I will.

我確信我會的。

Yeah.

是的。

And then I guess one other thing.

然後我猜另一件事。

So I was sort of thinking about maybe thoughts around the share repurchase activity and thoughts there for the remainder of the year.

因此，我在思考有關股票回購活動的想法以及今年剩餘時間的想法。

I guess we're about what now halfway through the authorization somewhere in that ballpark?

我想我們現在在那個球場某個地方的授權已經過了一半？

Yeah, that's right Marc.

是的，沒錯，馬克。

So we -- I think the biggest thing I would leave you with is that we think we're at the bottom and we're starting to recover.

因此，我認為我要留給你們的最重要的事情是，我們認為我們已經處於谷底，並且正在開始復甦。

For example, this is the first quarter in a long time where we had quarter-over-quarter net revenue growth and we think that's going to continue.

例如，這是很長一段時間以來我們第一個季度淨收入實現季度環比增長，我們認為這種情況將持續下去。

So we've thought our stock is cheap for some time.

所以一段時間以來我們一直認為我們的股票很便宜。

And the window was finally open in Q2 and we've found some willing sellers and so we're able to be a little more active in Q2 than we were in the past.

第二季的窗口終於打開了，我們找到了一些願意的賣家，因此我們能夠在第二季比過去更加活躍。

And I would just say we have a soft goal of repurchasing 10% of our shares this year versus what it was on January 1.

我只想說，我們的軟目標是今年回購 10% 的股票（與 1 月 1 日相比）。

And it will depend on the window being open, it will depend on our ability to find some willing sellers or we can do a privately negotiated transaction, those are the most efficient by the way, because buying an open market is we're subject to 10b18 rules and there's volume limitation and so how much the stock is trading has a big impact on how much we're able to buy back.

這將取決於視窗是否打開，取決於我們找到一些願意的賣家的能力，或者我們可以進行私下協商的交易，順便說一句，這些是最有效的，因為購買開放市場是我們必須遵守的條件。規則和交易量限制，因此股票交易量對我們能夠回購的數量有很大影響。

Okay.

好的。

Excellent.

出色的。

I appreciate it.

我很感激。

Thank you very much.

非常感謝。

Good question.

好問題。

Thanks, Marc.

謝謝，馬克。

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。

Operator, should we hold it open for another minute in case somebody has a question.

接線員，我們是否應該再等一分鐘，以防有人有疑問。

Certainly.

當然。

Just in case someone wants to get in the queue.

以防萬一有人想排隊。

Sure.

當然。

(Operator Instructions)

（操作員說明）

All right.

好的。

Well, hearing none, I just want to say thanks for joining us today.

好吧，沒有聽到任何聲音，我只想對您今天加入我們表示感謝。

Thank you for your interest in Hudson Global.

感謝您對翰德環球的關注。

Feel free to contact us any time using the contact information found in our press release or on our investor relations website.

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絡。

We look forward to the next quarter's update call.

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。

The conference has now concluded.

會議現已結束。

Thank you for attending today's presentation.

感謝您參加今天的演講。

You may now disconnect.

您現在可以斷開連線。