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View All NewsHudson Q3 revenue up 0.4% in constant currency excluding divested operations
Hudson Global Inc. (NASD: HSON) reported revenue rose 0.4% on a constant currency basis when excluding the Americas IT and its Netherlands business, which it sold during the second quarter of this year. However, revenue fell 14.0% when not reported in constant currency.
On a reported basis, Hudson’s third-quarter revenue fell 14.7% in constant currency to $110.0 million. The decline was 26.3% when not measured in constant currency.
| (US$ thousands) | Q3 2015 | Q3 2014 | % growth | % constant currency |
| Revenue | $110,028 | $149,278 | -26.3% | -14.7% |
| Gross margin | $45,145 | $55,687 | -18.9% | |
| Gross margin percentage | 41.0% | 37.3% | -- | |
| Net loss | -$2,084 | -$7,019 | nm |
Hudson reported $2.3 million in restructuring charges, primarily for real estate actions in all regions.
Quote
“We continued to deliver constant currency gross margin growth in key markets and practices in the third quarter, including Asia Pacific and recruitment process outsourcing (RPO),” said CEO Stephen Nolan. “We are narrowing the gap toward profitability and expect to deliver positive adjusted EBITDA in the fourth quarter. Our focus remains on driving growth in our core markets through selective investments in fee earners, while reducing costs.”
Revenue by geography
| (US$ thousands) | Q3 2015 | Q3 2014 | % growth | % constant currency |
| Hudson Americas | $3,735 | $13,036 | -71.3% | -71.3% |
| Hudson Asia Pacific | $55,609 | $66,990 | -17.0% | 3.4% |
| Hudson Europe | $50,684 | $69,252 | -26.8% | -18.5% |
Guidance
Hudson forecast revenue of $100 million to $110 million in the fourth quarter.
Share price and market cap
Shares in Hudson rose 1.3% to $2.33 in early afternoon trading. The company had a market cap of $80.78 million, according to Yahoo!