HSON - Earnings call transcript Q1 2022

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Operator

Good afternoon, and welcome to the Hudson Global Conference Call for the First Quarter of 2022.

Our call this afternoon will be led by Chief Executive Officer, Jeff Eberwein; and Chief Financial Officer, Matt Diamond. Please be advised that the statements made during the presentation include forward-looking statements under applicable securities laws. 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. These risks are discussed in our Form 8-K filed today and in our other filings made with the Securities and Exchange Commission, including our annual report on Form 10-K. obligation any any statements. disclaims company to forward-looking update The and call, of be as And diluted EBITDA course conference constant earnings references share. adjusted such during the terms this will per non-GAAP made currency, adjusted to for release quarterly earnings website, slides, in our and on these measures posted Reconciliations included hudsonrpo.com. our are both to call. earnings serve materials you helpful reference a as guide this time encourage I our at access our during will as they Eberwein. will now call the I over to Jeff turn Sir, begin. you may

Jeff Eberwein

We reviewing thank will Global and conditions. everyone. update for quarter Thank your us our Hudson you, welcome, our provide operator, highlights; in you and on an details on today. financial interest and current CFO, XXXX additional Diamond, Matt I'll the results. business joining some give for I'll start by first then

revenue same we XXX% quarter versus $XX.X was currency. net first in Adjusted versus reported of first of reported million million constant EBITDA year-over-year of $XX.X revenue And XX% SG&A year XX% adjusted quarter, a would the that of increase million, year-over-year in up in growth in the an revenue costs our up were For adjusted organic note constant XX% last currency. currency. I And the constant year $XX.X million, $X.X constant we was ago. $XXX,XXX period currency. in XXXX,

by quarter. to $X.XX the the net In review CFO, per last addition, Matt period income financial as a or of per of loss we turn adjusted share first same I'll versus call reported XXXX our reported net region over share now $XXX,XXX first in some income well a to versus from of in additional share ago. $X.XX $X million year. diluted our year or as diluted details net quarter $X.XX financial $X.XX We diluted results a Diamond, the

Matt Diamond

Thank you, morning, and everyone. good Jeff,

the remainder net to year's Our $X.X $X.X EBITDA XX% coming the of approximately quarter versus in Adjusted in and and of million. million acquisition growth organic of currency, attributable this adjusted Americas the and grew XXX% increased XXX% Karani revenue of respectively, growth business fourth revenue XXXX. EBITDA adjusted constant with of from last

business from $X.X revenue of adjusted XX%. EBITDA and currency a $X.X of increased of million Adjusted ago. million Our XX% in grew adjusted EBITDA net Asia Pacific constant revenue year

Our of XX% EMEA revenue compared grew adjusted QX XXXX XX% $X.X $X.X of in Adjusted revenue constant last business EBITDA net currency. to of and year. of in adjusted million QX slightly million increased EBITDA in of

of rate is believe before net the SG&A a across that net goal critical the adjusted over XX% important each regions achieving percentage Lastly, our are in costs to term. corporate QX. operational seeing again This than highlight we our adjusted revenue to a is EBITDA adjusted level of of long revenue growing at to we X faster it as grew leverage

and amortizable XXXX. million quarter net of Karani million million as working the at intangible fourth cash financial from with from in connection March and We additional capital XXXX, was our Group of some cash. assets. Days quarter up quarter. the of company's million of $XX.X restricted fourth of at to with XXXX, ex $X.X of details XX end XXXX, the first the sheet XX, in first cash Coit $X.X in XXXX XXXX. outstanding goodwill in acquisition at to reflects quarter $X.X and XXXX March of ended QX days days of the In Turning $XX.X balance The XX the DSO of million increased March sales from

I'll but wins a the facility nothing that of at result XXXX, operations of in call current April trends our now in this of credit had needs to market, reminder, we review support to Australia facility a RPO company in we working capital cash back to finalized to The give in the drawn and some growth end in first over from new business. our had perspective As quarter. outflow turn business more million the on the expected on our QX. a as $X.X Jeff during

Jeff Eberwein

Thank Matt. you,

see, strong teams activity see QX can in strong as region we XXXX, continue on for each you our in demand As to our services. capitalized the levels

strong Our the business regions exhibited prior quarter and revenue, quarter. adjusted revenue the very XXXX all growth adjusted in across year versus first in X net EBITDA of

level demand Our of globally pipeline by of and and I Coit our be teams the by continue remain sales robust, and and collaboration the our levels activity integration to encouraged across Karani, increasing XXXX robust, and deliver services the forward. results we far. growth exceptional XXXX acquisitions. strong to thus Globally, of delivered expect going to remains have and our acquisitions for these Both continue

want for open the line I for we've and in employees clients you our work all flexibility, been and of dedication can dedicated challenging highly their business the through. our please hard to thank to Operator, Importantly, conditions working questions?

Operator

[Operator first Instructions] comes of Walter Our Partners. question MAZ from Schenker

Walter Schenker

to myself two. two it's I'll Actually, limit questions.

a is dollar well. of first clearly good in quarter, and quarters not sort the of make I'll broadly on current the everyone it question. we an the not with was hopefully, business? my to that what at of forecast. from forecast, a if know the reflected you're well going standpoint, good earnings is a seen state into looking quarter, haven't anything I and so was feeling which unusual In doing Congratulations First, flow extraordinarily quarter, then It's

Jeff Eberwein

Yes.

continuation year. of Walter. up. a minor fourth weakest and things it to question, declines didn't that first I would year, last the we this point or usually, good say trends the I here first haven't and is those there. quarter, the from happen saw few the And quarter year. our So of quarter strong could let Usually, was quarter a

did up. levels have very in strong activity new who We a virtually Just region. every were business started few clients

general, start in the But and and had they And QX amount start activity. takeaway we sometimes of doing when continues up from Other new business an really to. a end times, clients remains of aggressively, And start, they gradually strong very is slowly examples and ramp. unusual few we that. activity

Walter Schenker

is this forecast, a creep question the it's about in historically. but has X% a annualize share if I know I second company quarter, not My And we've bought is $X Year-over-year, had the share earnings. stock first in year-over-year. Okay. again,

got traded The stock Xx that in You've is to lot the you wouldn't down just -- stock be from number number. buying Xx that at compensation? a of cash. creep Why least share offset

Jeff Eberwein

encourage that's much And we've opportunistic. on very No, Yes. history, the just I would menu. at been to our look everybody

back every share the tender just more can share quarter trades, through offset company It absolute in every a way shrunk count than doesn't But even historically, offer, done have bought just We through And regular purchasing we've have or shrunk way market. happen we in dilution. year. every a so we've count terms. block the shares also the through

million our I share left think repurchase something still X.X authorization. we have on like

So the toolkit, all tools something have the and on it's we the in menu.

Operator

[Operator Instructions] Sidoti. Our next of comes Riddick from Marc question

Marc Riddick

the utilization go thoughts maybe you quarter fairly And and can trends bit. a be, for sort be our and a strength seems given revenue to into high particularly profitability level, in wanted labor saw the add And the to first first this to seemed of order flow, you opportunities. it the little around I So that and quarter. what to and given

the hiring could you as sort So wondering out was opportunities? that if of about potential I shakes how thoughts

Jeff Eberwein

Yes. \

are we're of best the I And the of And really labor. we many in world and that's help talk in get to I recruit hiring acquisition labor, So recruiters talent in need and can't right management. activity talk good behalf that for involved in ways doing us job people strong. to One and of what talent a There is more And areas hiring clients? least recruit more of if in be could levels job And general, now, to on then can, sectors. if the wrong business. at is, And X good our to that. are part do we're answer is also true is question. for and talent talent much about can. we mentality you who There talent that, efficient, as about our continue when a I shortage as many of much the as you

for this good the retain we do Of we as but a everybody struggle else, people? Do it's than So the we'd opposite. same have rather us. environment to course, much

Marc Riddick

then I on the demand bit Are areas sort that strength, of the -- of you're maybe of geographies particular you verticals given mix the strength little talk particularly a saw? sort you seeing? the And industry about be particular if you. Got surprised or could specific may you revenue wonder that seeing any that upside,

Jeff Eberwein

X health for of the pretty for, we and were our main clients, strong U.S. strong say if really and I'd And care, The pretty both them Yes. services were and all within work say, in at QX. technology all that our industries of X verticals, us. financial I those look strong. were you Australia would

Marc Riddick

acquisition talk was levels right. wondering little of so? availability maybe you're a bit with out looks could Right, about I months the seeing compared maybe and what how that to pipeline sort you're there and Excellent. X maybe that ago valuation or you if seeing

Jeff Eberwein

good really No, question. Yes.

is. and It's a kind about looking We targets, something, just the management model of learned a it's as markets. in learn what team, always be we're looking. in market always business and all So as to we us, helped think, their good, to different business different constantly companies,

high. and So bar like that is low is to one buy say to the our is we things look of to bar our

our reduce situations to X be the them a it. we're ago more So about so. more would said it's acquisition what where at I costs is accelerate special with just few X it's really months targets integrate or We before, or we've can company, looking the as And do might or growth inside And their than but right right really create interesting. those really fit plus X the we year for There doing can time. ago, X. say not incredibly their a equals pipeline with finding

in for get not accretive size sake. just things meaningfully addition really So the financial that we're to We're on looking business are being looking metrics. bigger the accretive to to for

Operator

questions call am now closing today's remarks. session. I I for [Operator question-and-answer will over Jeff to the Instructions] further queue. in That Eberwein the concludes no seeing turn

Jeff Eberwein

day. release update Thank great us forward Relations time your for you a joining website. Hudson us the We Investor quarter's any for our using look press interest Global. Have contact and in to on or today next free contact all found call. to information Feel in the again

Operator

Call. you First Conference hudsonrpo.com. the the of for Quarter website, Investors been available be joining and Hudson recorded participating. you call has Thank will for our Thank on section Today's Global

a pleasant now have may and You day. disconnect,

Hudson Global (HSON) 14 May 222022 Q1 Earnings call transcript