Factsheet - September 2023
Hudson Global at a Glance
- Hudson Global, Inc. (Nasdaq: HSON) ("Hudson Global" or "the Company") owns Hudson RPO, a pure-playTotal Talent Solutions provider
- Nasdaq-listed;spun-off from Monster.com in 2003
- Strong financial position: $23.0(3) million of cash and $303(4) million of usable NOL carryforwards
- Stock buyback: completed a $10 million program & initiated a new $5 million program on 8/8/23; shares outstanding reduced by approximately 12% since 12/31/18
- Owner mindset: board and management own approximately 17%(6) of total shares outstanding and expect to own more over time
- Maximizing stockholder value: through internal investments in our growing, high-margin RPO business, bolt-on acquisitions, and stock buybacks
___________________________________________
- Adjusted EBITDA and Corporate Costs are non-GAAP measures. Reconciliations of non-GAAP measures can be found in the appendix to this presentation.
- As of August 31, 2023. Market Capitalization defined as Shares Outstanding times Stock Price.
- As of June 30, 2023. Cash includes $0.4m of restricted cash. Debt excludes operating lease obligations.
- As of December 31, 2022 as disclosed in 2022 Form 10-K. NOL carryforward is for U.S. federal and state tax expense.
- 2.8 million shares outstanding as of July 31, 2023. Does not include unissued or unvested RSUs.
- Includes unvested share units and share units that will be issued up to 90 days after a director's/officer's separation from service.
- As of June 30, 2023.
$mm, except per share amounts
Stock Price(2) | $22.15 | |||||
Shares Outstanding(5) | 2.8M | |||||
Market Capitalization(2) | $62.5 | |||||
Cash(3) | $23.0 | |||||
Debt(3) | $0.0 | |||||
Usable NOL Carryforward(4) | $303 | |||||
# of Employees(7) | 1,220 | |||||
# of Countries(7) | 14 | |||||
$mm | 2019 | 2020 | 2021 | 2022 | LTM | |
Revenue | $93.8 | $101.4 | $169.2 | $200.9 | $180.2 | |
Adj. Net Revenue | $43.6 | $39.1 | $68.2 | $99.2 | $90.7 | |
Adj EBITDA-RPO(1) | $4.5 | $2.9 | $13.5 | $20.1 | $13.1 | |
% of Adj Net | 10.4% | 7.5% | 19.8% | 20.3% | 14.4% | |
Revenue | ||||||
Corp Costs(1) | $4.1 | $3.3 | $3.4 | $3.7 | $3.8 | |
Adj EBITDA(1) | $0.5 | $(0.4) | $10.0 | $16.4 | $9.2 |
Business Strategy
Grow RPO
- Global RPO market expected to grow CAGR of 13.9% from 2021 to 2030(8)
- Hudson RPO's goal is to exceed market growth rate (i.e., gain share)
- Superior service and delivery
- Go deeper and broader with existing clients
- Grow in existing markets and expand into new markets to support our clients' needs
- Add new clients then "land and expand"
- Hudson RPO is investing in people and technology to accelerate its growth(2)
- Leverage existing strong reputation by expanding marketing efforts, including social media and website
Keep Overhead Expenses Low
- Reduced complexity left over from legacy businesses
- Both corporate and regional
- No impact on revenues or growth
Investigate Acquisition Opportunities
- Expand capabilities and capacity, not just growth for growth's sake
- Deepen geographic and/or sector presence
- Add new talent and skill sets
- Immediately accretive
- Utilize NOL
Repurchase Stock
- Will be opportunistic/price sensitive
- Goal is to maximize long-term value per share, not just "return cash"
- Balance with acquisition opportunities
- https://www.researchandmarkets.com/reports/5641387/recruitment-process-outsourcing-rpo-market?utm_source=CI&utm_medium=PressRelease&utm_code=rrwmxk&utm_campaign=1744226+-+Global+Recruitment+Process+Outsourcing+(RPO)+Market+to+Grow+by+13.9%25+Annually+Through+2030&utm_exec=como322prd
Disciplined Acquisition Strategy
Centers of Excellence
Coit Group:
October 2020
- Significantly expanded Hudson RPO's tech presence in the US; new Hudson office in San Francisco
- Established, profitable business with strong client base
-
Coit's founders (Joe Belluomini and Tim Farrelly) became co- CEOs of Hudson RPO's
newly formed Technology Group - Combination of cash,
shares, promissory note, and earn-out agreements
Karani:
November 2021
- Expanded Hudson RPO's global delivery capability by adding substantial presence in India and Philippines
- Strong partnership with recruitment and staffing firms
- Large and growing client base supported by over 500 employees in India and 125 in the Philippines
- Expanded Hudson RPO's expertise in technology recruitment
- Combination of cash and promissory note
Hunt & Badge:
August 2022
-
Expanded Hudson
RPO's footprint further into the India recruitment market - Compliments Karani's offerings with many potential synergies between the two companies
- Partners with companies of all sizes, including well- known multinationals, across a variety of industries
Edinburgh, | ||
Scotland | ||
Tampa, Florida, | Shanghai, | |
China | ||
US | India | |
Manila, | ||
Philippines |
Contact Us:
Hudson Global, Inc. | Investor Relations |
Jeffrey E. Eberwein | The Equity Group Inc. |
CEO | Lena Cati |
203-489-9501 | 212-836-9611 |
ir@hudsonrpo.com | lcati@equityny.com |
Factsheet - September 2023
RPO - a Fast Growing Market (1)
Estimated Growth for Global RPO Market
13.9%
CAGR
2021 | 2030 E | From 2021 - 2030 |
- https://www.researchandmarkets.com/reports/5641387/recruitment-process-outsourcing-rpo-market?utm_source=CI&utm_medium=PressRelease&utm_code=rrwmxk&utm_campaign=1744226+-+Global+Recruitment+Process+Outsourcing+(RPO)+Market+to+Grow+by+13.9%25+Annually+Through+2030&utm_exec=como322prd
Adjusted Net Revenue by Region
(Excludes cost pass-throughs of Contracting)
Financial Highlights
Full Year 2021
Full Year 2022
H1 2023
Americas
40%
$27.1M
Americas
49%
$49.0M
$44.3M
Adjusted Net Revenue
$68.2M EMEA $12.5M
18%
APAC
42%$28.6M
$99.2M EMEA $15.9M
16%
APAC
35%$34.3M
$0.58
Adjusted EPS (Non-GAAP)
$3.8M
Adjusted EBITDA (Non-GAAP)
Financial Goals
PROFITABILITY
- Grow profitability over time; turning profitable in mid-2019 was a watershed event in our Company's history
INTERNAL GROWTH
- Generate high returns on internal growth projects
Hudson RPO: Salaries & Related Expenses
Salaries & Related(1) as % of Adjusted Net Revenue
100%(Rolling 4 Quarter Average)
95%
90%
85%
80%
75%
70%
65% | Goal |
60% |
1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23
EBITDA MARGIN
► Adjusted EBITDA margin goal of 25% of Adjusted Net Revenue |
Hudson RPO: Profit Margin Improvement
RPO Adj EBITDA(1) as % of Adjusted Net Revenue
(Rolling 4 Quarter Average)
at RPO level (i.e., pre Corporate Costs) vs. Q2 2023 rolling four |
quarters of 14.4% |
• Keep Corporate Costs low, even as profits from operating |
25%
20%
15%
10%
Goal
businesses grow |
• Adjusted EBITDA / Adjusted Net Revenue margins of mid-teens |
at the corporate level (i.e., after Corporate Costs) |
5%
0%
1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23
MAXIMIZE EPS
- Maximize EPS over the long term through:
- Growing revenue faster than costs, leading to increasing Adjusted EBITDA margins
- Controlling overhead and other fixed costs so these costs will decline as a percentage of revenue over time
- Reducing share count through opportunistic stock repurchases
Hudson Global: Significant Reduction in Corporate Costs
$10
$8.1M
$8
2.4 | $5.2M | |||||
$6 | $4.1M | $4.1M | $4.0M | |||
1.1 | ||||||
$4 | ||||||
0.8 | 0.6 | 0.3 | Non recurring | |||
5.6 | expenses | |||||
$2 | 4.1 | 3.3 | 3.4 | 3.7 | Corporate costs | |
$- | ||||||
2018 | 2019 | 2020 | 2021 | 2022 |
(1) Excludes non-recurring expenses. (2) Before corporate costs of Hudson Global.
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Hudson Global Inc. published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 20:27:04 UTC.