FINANCIALS: Hudson Global reports solid growth with 50+% rise in revenue

Global talent solutions firm Hudson Global has reported a 53.5% increase in revenue year-on-year buoyed by “solid” growth in Europe and Australia.

This is according to Q4 2019 results released this morning. Over the quarter, the group reported revenue of $25.4m (£20.6m), up 56.6% in constant currency.

Revenue minus certain direct costs of $11.1m also increased 8.3% from the fourth quarter of 2018, or 10.3% in constant currency.

While in Europe and Asia Pacific revenue was up 10% and 101% respectively, revenue fell 6% in the Americas over the quarter.

Meanwhile net income improved to $1.5m, or $0.48 per basic and diluted share, from a net loss of $0.6m, or $0.19 per basic and diluted share, in the fourth quarter of 2018. Adjusted EBITDA improved to $0.9m from an adjusted EBITDA loss of $0.3m in the fourth quarter of 2018.

Over the quarter, the firm’s corporate costs were $0.9m compared to $1.2m in Q4 2018. Corporate costs of $4.1m for the year ended 31 December 2019 excluded $1.1m of non-recurring expenses. In 2018, corporate costs of $5.6m excluded non-recurring expenses of $2.4m related to severance expense.

Touching on the coronavirus pandemic, the group revealed it may be adversely affected by the outbreak and the accompanying economic downturn as it has led to an initial reduced demand for its services and hiring freezes from some clients.

However, the group adds it is vigilantly monitoring the situation, will continue to act proactively as the situation unfolds, and 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.

For the full year, the group posted revenue of $93.8m up 40.2% from 2018, or 46.5% in constant currency.

Revenue minus certain direct costs of $43.6m rose 3.5% from 2018, or 7.6% in constant currency.

However, the group posted a net loss of $1m, or $0.30 per basic and diluted share, compared to net income of $7.9m, or $2.39 per basic and diluted share, in 2018.

Hudson Global CEO Jeff Eberwein said: “We delivered solid growth in the fourth quarter, particularly in Europe and Australia.

“In addition, we are pleased to report positive adjusted EBITDA, cashflow from operations and net income for the fourth quarter. For the full year, we delivered revenue growth while also reducing corporate costs enabling us to generate positive adjusted EBITDA for 2019, a milestone event for our company.”

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