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View All NewsHudson reports revenue up in Q3, but loss of large contract still hinders growth in Americas and Europe
RPO provider Hudson Global Inc. (NASD: HSON) reported third-quarter revenue rose 11.6%. The New York-based firm reported the Asia Pacific region produced the strongest growth while the Americas and Europe continued to be affected by a large global contract that ended in the third quarter of 2017.
| (US$ thousands) | Q3 2018 | Q3 2017 | % change | % constant currency |
| Revenue | $17,127 | $15,898 | 7.7% | 11.6% |
| Gross profit | $10,881 | $11,170 | -2.6% | |
| Gross margin percentage | 63.5% | 70.3% | ||
| Net loss | ($870) | ($848) | nm |
Growth in Asia Pacific was driven by new client wins as well as higher volumes at existing clients; growth was particularly strong in China, Hong Kong and Singapore. In the Americas, growth in financial services and life sciences was offset by lower volumes elsewhere.
Revenue by geography
| (US$ thousands) | Q3 2018 | Q3 2017 | % change |
| Hudson Americas | $3,590 | $4,043 | -11.2% |
| Hudson Asia Pacific | $9,306 | $8,081 | 15.2% |
| Hudson Europe | $4,231 | $3,774 | 12.1% |
Net loss at the company increased to $870,000 from $848,000 in the year-ago quarter. The results in the third quarter of 2018 included net loss from continuing operations of $500,000 and net loss from discontinued operations of $400,000 related to the sale this year of its recruitment and talent management businesses.
Quote
“This year has been one of significant transition for Hudson with tremendous focus on creating our own structures, systems, and processes following our separation from the legacy businesses we sold in March,” CEO Jeff Eberwein said. “Importantly, we have also focused intensively this year on reducing the corporate costs left over from these legacy businesses.”
Share price and market cap
Hudson shares were down 2.56% to $1.52 at 10:15 a.m. Pacific time; the company had a market cap of $49.97 million, according to FT.com.