Revenue up 50% in Q3 2019 for Hudson Global
Hudson Global, Inc. has released its financial results for the third quarter ended 30th September 2019.
Revenue of $25.8m increased 50.4% from the third quarter of 2018 and 56.8% in constant currency. Gross profit of $11.4m increased 4.7% from the third quarter of 2018 and 8.6% in constant currency.
Net income improved to $0.4m, or $0.12 per basic and diluted share, from a net loss of $0.9m, or $0.26 per basic and diluted share, for the third quarter of 2018. Adjusted EBITDA (Non-GAAP measure) improved to $0.8m from an adjusted EBITDA loss of $0.3m in the third quarter of 2018.
The company’s share count was reduced by 8.3% over the past year. Total cash was $28.9m at 30th September 2019.
“In the third quarter, we reported positive adjusted EBITDA, cash flow from operations, and net income,” said Jeff Eberwein, chief executive officer of Hudson Global. “Additionally, we grew gross profit in constant currency in all three regions.
“In September, Hudson RPO ranked among HRO Today magazine's Bakers Dozen list of top enterprise RPO providers for the tenth consecutive year. This recognition is a tremendous accolade for all team members at Hudson RPO. We are honored that based on client feedback we have consistently ranked as a top global RPO provider.”
Asia Pacific revenue of $17.4m increased 97% and gross profit of $5.6m increased 2% in constant currency in the third quarter of 2019 compared to the same period in 2018. Similar to last quarter, revenue growth in the third quarter of 2019 was driven by a significant contract in Australia signed in the second quarter of 2019 to manage a portion of the contingent workforce for a large Asia-based technology company. Gross profit growth was driven by new client wins as well as higher volumes at existing clients in Australia, partially offset by declines in Hong Kong. EBITDA was $0.8m in the third quarter of 2019 compared to EBITDA of $0.5m in the same period one year ago, and adjusted EBITDA was $1.1m compared to adjusted EBITDA of $0.7m in the third quarter of 2018.
In the third quarter of 2019, Americas revenue of $3.5m decreased 2%, while gross profit of $3.2m increased 7% in constant currency from the third quarter of 2018. Strong performance at several newly won clients was partially offset by lower volumes at some existing clients. EBITDA was breakeven in the third quarter of 2019 compared to EBITDA of $0.1m in same period of last year, and adjusted EBITDA was $0.2m for the third quarter of 2019 compared to adjusted EBITDA of $0.3m in last year's third quarter.
Europe revenue in the third quarter of 2019 rose 20% to $4.8m while gross profit of $2.6m increased 29% in constant currency from the third quarter of 2018. The UK and Continental Europe both contributed to revenue growth, increasing by $0.3m and $0.5m, respectively. EBITDA was $0.2m in the third quarter of 2019 compared to EBITDA loss of $0.2m in the same period of 2018, and Adjusted EBITDA was $0.3m for the third quarter of 2019 compared to breakeven adjusted EBITDA in last year's third quarter.
The company ended the third quarter of 2019 with $28.9m in cash, which included $0.5m in restricted cash. The company generated $0.2m in cash flow from operations during the third quarter, compared to a $0.1m use of cash flow from operations in the third quarter of 2018.
Photo courtesy of Shutterstock.com