Hudson Global sees revenue rise 55% YoY in Q2 2019
Hudson Global, Inc. has released its financial results for the second quarter ended 30th June 2019.
Revenue of $26.4m increased 55.2% from the second quarter of 2018 and increased 59.7% in constant currency. Gross profit of $11.7m increased 7.9% from the second quarter of 2018 and increased 13.2% in constant currency.
The company reported net loss of $0.9m, or $0.29 per basic and diluted share, compared to net loss of $1.4m, or $0.42per basic and diluted share, for the second quarter of 2018.
Adjusted EBITDA (Non-GAAP measure) loss narrowed to $0.3m from an adjusted EBITDA loss of $1.1m in the second quarter of 2018. Q2 2019 Adjusted EBITDA included $0.7m of non-recurring expenses compared to $0.6m in Q2 2018.
"In the second quarter, we reported double-digit revenue growth across all three regions and double-digit gross profit growth in our Americas and Europe businesses. The Company also generated positive adjusted EBITDA excluding non-recurring expenses," said Jeff Eberwein, chief executive officer of Hudson Global. "In the second quarter, we added two new significant client relationships, one in Australia and one in the Americas, maintained a strong financial position, and continued to reduce corporate costs excluding non-recurring items.
"Earlier this year, market experts ranked Hudson RPO among the very top RPO providers in the Asia Pacific region (APAC).(1) I met with many APAC clients and employees this quarter and was impressed with our client satisfaction, robust sales pipeline, market position, and strong reputation in this region. I’m encouraged by this and similar feedback from our Americas and Europe regions and believe we are in a strong position to continue to grow with the talent solutions market."
Asia Pacific revenue of $17.5m increased 87% while gross profit of $5.4m decreased 1% in constant currency in the second quarter of 2019 compared to the same period in 2018. The revenue growth was driven by the commencement of a significant contract in Australia to manage a portion of the contingent workforce for a large Asia-based technology company. Gross profit was down 1% in constant currency due to lower volumes at existing clients in Australia, which was mostly offset by strong growth in the rest of the Asia Pacific region. EBITDA was $0.4m in the second quarter of 2019 compared to EBITDA of $0.5m in the same period one year ago, and adjusted EBITDA was $0.7m compared to adjusted EBITDA of $0.9m in the second quarter of 2018.
In the second quarter of 2019, Americas revenue of $4.0m increased 13%, while gross profit of $3.6m rose 23% from the second quarter of 2018. Growth was driven by new client wins, which included a new relationship with a global industrials company. EBITDA was $0.4m in the second quarter of 2019 compared to EBITDA loss of $0.1m in the year ago period, and adjusted EBITDA was $0.6m for the second quarter of 2019 compared to adjusted EBITDA of $0.1m in last year's second quarter.
Europe revenue in the second quarter of 2019 rose 34% to $5.0m while gross profit of $2.6m increased 37% in constant currency from the second quarter of 2018. The UK and Continental Europe both contributed to revenue growth, increasing by $0.7m and $0.5m, respectively. EBITDA was break-even in both periods, and Adjusted EBITDA was $0.2m in both periods.
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