Hudson Global, Inc.

Good morning and welcome to the Hudson Global Conference Call for the second quarter of 2024. Our call today will be led by Chief Executive Officer Jeff Eberwine, Chief Financial Officer Matt Diamond, and Global CEO of Hudson RPO Jake Zepkiewicz. 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 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. All participants will be in listen-only mode. Should you need assistance, Please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note this event is being recorded. I will now turn the call over to Jeff Eberwine.

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 second quarter 2024 results, then Matt Diamond, our CFO, will provide some additional details on our financials. Lastly, Jake Zedkiewicz, Global CEO of our Hudson RPO business, will provide us with an update on our RPO business, including recent developments and milestones. Our second quarter 2024 results were impacted by the continuation of lower-than-normal hiring volumes at many of our clients in the markets we serve. For the second quarter of 2024, we reported revenue of $35.7 million, down 20% year-over-year in constant currency, while our adjusted net revenue was $17.6 million, down 22% year-over-year in constant currency. Our adjusted EBITDA for the second quarter was 0.7 million versus adjusted EBITDA of 2.6 million a year ago. In addition, we reported a net loss of 0.4 million or 15 cents per diluted share versus net income of 0.6 million or 18 cents per diluted share in the same period of last year. Q2 2024 adjusted net income per diluted share was 4 cents compared to net income her diluted share of $0.36 in the second quarter of 2023. Now I'll turn the call over to Matt Diamond to review our financial results by region, as well as some additional financial details from the second quarter.

Thank you, Jeff, and good morning, everyone. Revenue for America's business decreased 19%, and adjusted net revenue decreased 24% year-over-year in constant currency. we reported adjusted EBITDA of $0.6 million for the quarter versus last year's break-even adjusted EBITDA. Revenue and adjusted net revenue for our Asia-Pacific business both decreased 19% year-over-year in constant currency. In Q2 of 2024, we reported adjusted EBITDA of $0.8 million compared to adjusted EBITDA of $2.5 million a year ago. Revenue for our EMEA business decreased 24% versus the prior year quarter in constant currency. And adjusted net revenue decreased 23%. Our Q2 2024 adjusted EBITDA was 0.3 million compared to adjusted EBITDA of 1.1 million in the second quarter of 2023. Turning to some additional financial details in the second quarter, we ended the second quarter with 15.3 million in cash including 0.6 million of restricted cash. The company used 4.3 million in cash flow from operations during the second quarter of 2024, compared to 2.6 million of cash generated from operations in the second quarter of 2023. Paid sales outstanding was 59 days at June 30, 2024, compared to 52 days at March 31, 2024. In connection with our acquisition activity in recent years, our balance sheet as of March 31st, 2024, reflects $5.6 million of goodwill and $3.0 million of net amortizable intangible assets. The company's working capital, excluding cash, was $14.6 million compared to $12.0 million at December 31st, 2023. I'll now turn the call over to Jake to discuss our RPO business.