Hudson Global, Inc.

Good morning and welcome to the Hudson Global conference call for the first quarter of 2024. Our call today will be led by Chief Executive Officer Jeff Everwine, Chief Financial Officer Matt Diamond, and Global CEO of Hudson RPO Jay Zabkowitz. 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 8K to be filed today and in our other 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 our earnings materials at this time. as they will serve as a helpful reference guide during our call. Please note, today's conference is being recorded. 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. I'll start by reviewing the first quarter 2024 results, and Matt Diamond, our CFO, will provide some additional details on our financials. We're also excited to be joined on the call today by Jake Zabtwitz, global CEO of our Hudson RPO business, who joined the team in November and will provide us with an update today. As you can see in our news release issued this morning, our first quarter 2024 results were weak due to lower than normal hiring volumes at many of our clients. For the first quarter of 2024, we reported revenue of $33.9 million down 20% year-over-year in constant currency, while our adjusted net revenue was $16.3 million down 25% year-over-year in constant currency. Our adjusted EBITDA loss for the first quarter was $1.5 million versus positive adjusted EBITDA of $1.1 million a year ago. In addition, we reported net loss of $2.9 million, or $0.95 per diluted share, versus net income of $400,000, or $0.11 per diluted share on a in the same period of last year. Q1 2024 adjusted net loss per diluted share was 72 cents compared to net income per diluted share of 22 cents in the first quarter of 2023. Now I'll 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 first quarter.

Thank you, Jeff, and good morning, everyone. Revenue and adjusted net revenue for our Americas business both decreased 35% year-over-year in constant currency. We reported an adjusted EBITDA loss of 0.7 million for the quarter versus last year's break-even adjusted EBITDA. Revenue for our Asia-Pacific business decreased 18%, while adjusted net revenue decreased 20% year-over-year in constant currency. In Q1 2024, we reported an adjusted EBITDA loss of 0.2 million compared to adjusted EBITDA of 1.7 million a year ago. Revenue for our Europe business decreased 6% versus the prior year quarter in constant currency, and adjusted net revenue decreased 13%. Our Q1 2024 adjusted EBITDA was 0.3 million compared to adjusted EBITDA of 0.5 million in the first quarter of 2023. Turning to some additional financial details from the first quarter, We ended the first quarter with $21.0 million in cash, including $0.6 million of restricted cash. Day sales outstanding was 52 days at March 31, 2024, compared to 49 days at December 31, 2023. In connection with our recent acquisitions, including Koi Group in 2020, Karani in 2021, Hunt & Badge in 2022, and Hudson Singapore in 2023, A balance sheet as of March 31, 2024 reflects $5.7 million of goodwill and $3.3 million of net amortizable intangible assets. The company's working capital excluding cash was $10.2 million compared to $12 million at year end 2023. SG&A expense in the first quarter was $18 million, down 13% versus the same period last year in constant currency. The company used $1.8 million in cash flow from operations during the first quarter of 2024, compared to a $5 million cash outflow from operations in the first quarter of 2023. I'll now turn the call over to Jake Zabkowitz, Global CEO of Hudson RPO, to give some perspective on our RPO business.