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View All NewsHudson Q4 revenue jumps with Australian deal, but Covid-19 affecting demand
Hudson Global Inc. (NASDAQ: HSON) reported revenue jumped 56.6% in the fourth quarter ended Dec. 31 in constant currency at the Old Greenwich, Connecticut-headquartered provider of recruitment process outsourcing services and contingent workforce solutions.
Its Asia Pacific operations drove growth, thanks to a previously announced large contract signed in the second quarter of 2019. Under the deal, Hudson is managing a portion of the contingent workforce at a large, Asia-based tech company.
More recently, Hudson reported the Covid-19 pandemic has led to an initial reduction in demand.
“Some of our customers have instituted hiring freezes, while other customers that are more capable of working remotely have been allowed to operate as usual. The expected timeline for this reduction in demand for our services remains uncertain and difficult to predict considering the rapidly evolving landscape.”
| (US$ thousands) | Q4 2019 | Q4 2018 | % change | % constant currency |
| Revenue | $25,448 | $16,575 | 53.5% | 56.6% |
| Gross margin percentage | 43.7% | 61.9% | ||
| Net income/loss | $1,483 | ($620) | nm | |
While Asia-Pacific revenue nearly doubled, Americas revenue fell in the fourth quarter.
Revenue by geography
| (US$ thousands) | Q4 2019 | Q4 2018 | % change |
| Hudson Americas | $2,933 | $3,124 | -6.1% |
| Hudson Asia Pacific | $17,869 | $9,215 | 93.9% |
| Hudson Europe | $4,646 | $4,236 | 9.7% |
Full-year results
| (US$ thousands) | 2019 | 2018 | % change | % constant currency |
| Revenue | $93,811 | $66,932 | 40.2% | 46.5% |
| Gross margin percentage | 46.4% | 62.9% | ||
| Net loss/income | ($955) | $7,867 | nm |
Share price and market cap
Shares in Hudson were up 14.38% to $8.75 as of 10:19 a.m. Eastern time; the company had a market cap of $22.5 million, according to FT.com.