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View All NewsWorld – Hudson Q2 revenue up and returns to profitability
Hudson Global Inc. (NASD: HSON) reported revenue edged up 0.5% in the second quarter; however, the increase as measured in constant currency was 3.6%. The improvement was led by the group’s Asia Pacific division which saw an increase of almost 12%.
Net income at the staffing, recruitment process outsourcing and talent management solutions provider improved to $1.2 million from a net loss of $3.1 million in the year-ago quarter.
Gross margin also improved. Hudson Americas' gross margin increased 18% year over year and RPO gross margin increased in the second quarter on continued strong demand across the client base.
| (USD thousands) | Q2 2017 | Q2 2016 | Change | Constant Currency |
| Revenue | 113,591 | 113,067 | 0.5% | 3.6% |
| Gross Margin | 48,326 | 46,839 | 3.2% | N/A |
| Gross Margin Percentage | 42.5% | 41.4% | N/A | N/A |
| Net Income/Loss | 1,226 | (3,138) | N/A | N/A |
“We delivered solid gross margin growth around the globe, with growth in nearly every country and notable improvement in the UK and China,” said CEO Stephen Nolan. “We are pleased to report positive adjusted EBITDA for the fourth consecutive quarter, as we continue to focus on our core markets and practices, delivering growth and positive cash from operations.”
| (USD thousands) | Q2 2017 Revenue | Q2 2016 Revenue | Change |
| Hudson Americas | 4,161 | 3,661 | 13.7% |
| Hudson Asia Pacific | 69,264 | 62,039 | 11.6% |
| Hudson Europe | 40,166 | 47,376 | -15.2% |
Hudson forecast third-quarter revenue of between $110 million and $120 million, a year-over-year increase of 1.8% to 11.0%.
In trading yesterday Hudson Global shares closed at $1.35, unchanged on the day and 35.00% above the 52 week low of $1.00 set on 9 March 2017. Based on its current share price the company has a market value of $42.60 million.