Hudson Global (HSON) Reports Q2 Loss of $0.04

Hudson Global (NASDAQ: HSON) reported Q2 EPS of ($0.04). Revenue for the quarter came in at $17 million.

2018 Second Quarter Summary

• Revenue of $17.0 million increased 17.2 percent from the second quarter of 2017 and increased 14.7 percent in constant currency.
• Gross margin of $10.8 million increased 0.9 percent from the second quarter of 2017 but decreased 1.2 percent in constant currency.
• Net loss of $1.4 million, or $0.04 per basic and diluted share, compared with net income of $1.2 million, or $0.04 per basic and diluted share, for the second quarter of 2017. The results in the second quarter of 2017 included net loss from continuing operations of $0.7 million and net income from discontinued operations of $1.9 million related to the sale of the recruitment and talent management businesses.
• Adjusted EBITDA (Non-GAAP measure)* loss of $1.1 million, including $0.6 million of severance expense following the recent divestitures, compared with adjusted EBITDA of $0.1 million in the second quarter of 2017.

“Revenue growth in the second quarter was again driven by strong growth in Asia Pacific, while revenue was impacted by the loss of a global contract in 2017 in the Americas and Europe. We continue to review and reduce our cost structure following the recruitment divestitures earlier this year so we can invest in and grow our recruitment process outsourcing (“RPO”) business,” said Jeff Eberwein, chief executive officer at Hudson Global. “I have strong confidence in the positive outlook for our RPO business after spending more time with our clients and our talented team around the globe since assuming the CEO role at Hudson.”

GUIDANCE

The Company expects RPO operations before corporate costs to deliver adjusted EBITDA of between $5.0 million to $6.0 million in 2018. We expect corporate costs of approximately $8.0 million to $8.5 million in 2018, which includes $2.4 million of severance recorded in the first half of 2018. As a result, the Company expects adjusted EBITDA loss of $2.0 million to $3.5 million in 2018.

For earnings history and earnings-related data on Hudson Global (HSON) click here.

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