Hudson Global, Inc.

Good morning and welcome to the Hudson Global Conference call for the third quarter of 2023. Our call today will be led by Chief Executive Officer Jeff Eberwine and Chief Financial Officer Matt Diamond. Please be advised that the statements made during the presentation include forward-looking statements under applicable security 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 8K to be filed on Monday, November 13th, and in our filings made with the Securities and Exchange Commission, including our annual report on Form 10K. 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, hudsonrpo.com. I encourage you to access your earnings material at this time, as it will serve as a helpful reference guide during our call. I will now turn the call over to Jeff Eberwein.

Thank you, Operator, and welcome, everyone. We thank you for your interest in Hudson Global and for joining us today. Start by reviewing the third quarter 2023 highlights, and Matt Diamond, our CFO, will provide some additional details on our financial results. I will then give an update on current business conditions. For the third quarter of 2023, we reported revenue of $39 million down 18% year-over-year in constant currency. Adjusted net revenue was $19 million and decreased 20% year-over-year in constant currency. S&A costs were $17 million in the quarter, down 18% versus the same period last year in constant currency. We reported adjusted EBITDA of $2 million, down 33% in constant currency versus a year ago. In addition, we reported net income of half a million or 17 cents per diluted share versus net income of a million or 30 cents per diluted share in the same period last year. We reported adjusted net income of 24 cents a share in the third quarter versus 58 cents a share 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 third quarter.

Thank you, Jeff, and good morning, everyone. Revenue for our Americas business decreased 43 percent, and adjusted net revenue decreased 42 percent in constant currency. Adjusted EBITDA of $0.3 million decreased versus last year's adjusted EBITDA of $1.8 million. Revenue for our Asia-Pacific business decreased 9% year over year, while adjusted net revenue grew 8% in constant currency. Adjusted EBITDA of $2.3 million increased from adjusted EBITDA of $1.7 million a year ago. Revenue for our Euro business decreased 8% in constant currency and adjusted net revenue decreased 10% in constant currency. Adjusted EBITDA of 0.2 million in the third quarter of 2023 decreased from adjusted EBITDA of 0.4 million a year ago. Turning to some additional financial details from the third quarter. We ended the third quarter with 22 million in cash and restricted cash. Day sales outstanding was 53 days at September 2023, up from DSO of 50 days in September 2022. In connection with the acquisitions of Koi Group in the fourth quarter of 2020, Karani in the fourth quarter of 2021, and Hunt & Badge in the third quarter of 2022, our balance sheet as of September 30th, 2023, reflects $4.9 million of goodwill and $3.7 million of net amortizable intangible assets. The company's working capital, excluding cash, increased significantly to $14.2 million in the third quarter of 2023 from $7.3 million at the end of 2022. The company used $0.7 million in cash flow from operations during third quarter. I'll now turn the call back over to Jeff to give some more perspective on our RPO business and to review current trends.