Hudson Global, Inc.

Good morning and welcome to the Hudson Global conference call for the fourth 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 Zabkiewicz. 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 earlier today and in our 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, hudsonrpo.com. I encourage you to access our earnings material 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 Eberwine. Please go ahead.

Thank you, operator, and welcome, everyone. First off, apologize for my voice. Secondly, more importantly, we thank you for your interest in Hudson Global and for joining us today. I'll start by reviewing our fourth quarter 2024 results. Then Matt Diamond, our CFO, will provide some additional details on our financials. Lastly, Jake Zabkiewicz, global CEO of our Hudson RPO business, will provide us with an operations update. Our fourth quarter 2024 results reflect modest improvement over the prior year quarter. Overall for the year, we were impacted by generally low levels of global hiring activity, as well as unusually low attrition rates at certain clients. Despite these challenges, we spent significant time in 2024 restructuring and repositioning our business for growth. I'll let Jake expand on some of these initiatives later on in the call. In the fourth quarter of 2024, we reported revenue of $33 $3.6 million, down 2% year-over-year in constant currency, while our adjusted net revenue was $17.6 million, up 5.7% year-over-year in constant currency. Our fourth quarter 2024 adjusted EBITDA was $0.9 million, up from adjusted EBITDA of $0.1 million a year ago. In addition, we reported a net loss of $0.6 million, or $0.20 per Duluth share versus net income of $0.7 million or $0.23 per diluted share in the same period of last year. Q4 2024 adjusted net loss per diluted share was $0.05 compared to our adjusted net income per diluted share of a positive $0.04 in the fourth quarter of last year. Now I'll turn the call over to Matt Diamond to review some financial results by region as well as some additional financial details from the fourth quarter.

Thank you, Jeff, and good morning, everyone. Q4 2024 revenue for our America's business increased 18%, and adjusted net revenue increased 5% year-over-year in constant currency. We reported Q4 2024 adjusted EBITDA of $0.5 million, an increase from last year's adjusted EBITDA of $0.2 million. Q4 2024 revenue for our Asia-Pacific business decreased 10%, while adjusted net revenue increased 6% year-over-year in constant currency. This contrast is attributable to a decline at a large MSP client, where, as a reminder, adjusted net revenue margins are significantly lower than those of our RPO accounts. In Q4 2024, we reported adjusted EBITDA of 0.9 million, which was flat versus adjusted EBITDA of 0.9 million a year ago. Q4 2024 revenue for our EMEA business increased 7% versus the prior quarter in constant currency, and adjusted net revenue increased 5%. Our Q4 2024 adjusted EBITDA was $0.2 million compared to adjusted EBITDA of $0.6 million in the fourth quarter of 2023. Turning to some additional financial details, base sales outstanding was 51 days at December 31, 2024, compared to 56 days at September 30, 2024. The company generated $2.0 million of cash flow from operations during the fourth quarter of 2024, compared to $3.3 million of cash flow from operations in the fourth quarter of 2023. We ended the year with $17.7 million in cash, including $0.7 million of restricted cash. In connection with our acquisition activity in recent years, Our balance sheet as of December 30, 2024, reflects $5.7 million of goodwill and $2.5 million of net amortizable intangible assets. The company's working capital, excluding cash, was $11.9 million compared to $12.0 million at December 31, 2023. I'll now turn the call over to Jake to discuss our RPO business.