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View All NewsHudson reports Asia-Pacific business fuels Q2 revenue growth
RPO provider Hudson Global Inc. (NASD: HSON) reported second-quarter revenue rose 14.7% in constant currency and was driven by its Asia-Pacific operations. The New York-based firm reported that loss of a contract affected revenue in the Americas and Europe.
| (US$ thousands) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Revenue | $17,015 | $14,517 | 17.2% | 14.7% |
| Gross margin | $10,801 | $10,705 | 0.9% | -1.2% |
| Gross margin percentage | 63.5% | 73.7% | ||
| Net loss/income | ($1,364) | $1,226 | nm |
Growth in Asia Pacific was driven by a new client in the fourth quarter of 2017 and higher volumes at existing clients. In the Americas, growth in financial service and life sciences was offset by lower volumes elsewhere, including the conclusion of the global contract.
Revenue by geography
| (US$ thousands) | Q2 2018 | Q2 2017 | % change | % constant currency |
| Hudson Americas | $3,509 | $4,161 | -15.7% | -15.8% |
| Hudson Asia Pacific | $9,600 | $6,817 | 40.8% | 39.2% |
| Hudson Europe | $3,906 | $3,539 | 10.4% | 3.7% |
The company reported a net loss of $1.4 million compared to net income of $1.2 million in the year-ago quarter. The results in the second quarter of 2017 included net loss from continuing operations of $700,000 and net income from discontinued operations of $1.9 million related to the sale of its recruitment and talent management businesses.
Quote
“We continue to review and reduce our cost structure following the recruitment divestitures earlier this year so we can invest in and grow our recruitment process outsourcing business,” CEO Jeff Eberwein said. “I have strong confidence in the positive outlook for our RPO business after spending more time with our clients and our talented team around the globe since assuming the CEO role at Hudson.”
Share price and market cap
Shares in Hudson fell 6.29% to $1.64 as of 11:39 a.m. Eastern time today. The company had a market cap of $52.54 million.