Hudson Global, Inc. (NASDAQ:HSON) Q4 2022 Earnings Conference Call March 30, 2023 10:00 AM ET

Company Participants

Jeff Eberwein - Chief Executive Officer

Matt Diamond - Chief Financial Officer

Conference Call Participants

Marc Riddick - Sidoti & Company

Ignacio Bernaldez - EF Hutton

Operator

Good morning, and welcome to the Hudson Global Conference Call for the Fourth Quarter of 2022. Our call today 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 other filings made with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The company disclaims any obligation to update any forward-looking statements.

During the course of this conference call, references will be made to non-GAAP terms such as constant currency, adjusted EBITDA and adjusted earnings per diluted share. Reconciliations for these measures are included in our earnings release and quarterly slides, both posted on our website, www.hudsonrpo.com. I encourage you to access our earnings materials at this time as they will serve as a helpful reference guide during our call.

I will now turn the call over to Jeff Eberwein.

Jeff Eberwein

Thank you, operator, and welcome everyone. We thank you for your interest in Hudson Global and for joining us today. I'll start by reviewing the fourth quarter 2022 highlights and Matt Diamond, our CFO, will provide some additional details on our financial results. I'll then give an update on current business conditions.

In the fourth quarter of 2022 we reported revenue of $44 million and adjusted net revenue of $22.2 million. SG&A costs were $19.7 million in the fourth quarter and we recorded adjusted EBITDA of $2.4 million, net income of $0.1 million or $0.02 a share and adjusted net income of $0.33 a share versus a $1.02 a year ago.

I'll now turn the call over to Matt Diamond, our CFO, to review our financial results by region as well as some additional financial details from the fourth quarter.

Matt Diamond

Thank you, Jeff, and good morning everyone. Revenue and adjusted net revenue for our Americas business decreased 12% in constant currency. Adjusted EBITDA of $0.5 million decreased versus last year's adjusted EBITDA of $2.7 million. Revenue for our Asia Pacific business decreased 7% year-over-year in constant currency, and adjusted net revenue grew 17% in constant currency. Adjusted EBITDA of $2.1 million decreased from adjusted EBITDA of $2.4 million a year ago.