Revenue Performance - Revenue for Q3 2023 was $39.4 million, a decrease of $9.3 million or 19.1% compared to Q3 2022, primarily driven by declines in the Americas and Australia [170]. - Adjusted net revenue for Q3 2023 was $19.4 million, down $4.8 million or 20.0% from Q3 2022, mainly due to a decrease in RPO adjusted net revenue of $4.6 million or 20.1% [170]. - Revenue for the nine months ended September 30, 2023, was $127.4 million, a decrease of $30.0 million or 19.0% compared to the same period in 2022 [176]. - Total revenue for Q3 2023 was $39.4 million, a decrease of 19% compared to $48.7 million in Q3 2022 [177]. - For the nine months ended September 30, 2023, total revenue was $127.4 million, down 19% from $157.3 million in the same period of 2022 [177]. - For the three months ended September 30, 2023, Asia Pacific revenue was $26.1 million, a decrease of $2.7 million, or 9%, compared to the same period in 2022 [191]. - For the nine months ended September 30, 2023, Asia Pacific revenue was $81.8 million, down $4.8 million, or 6%, compared to the same period in 2022 [191]. - Revenue in Europe for the three months ended September 30, 2023, was $6.6 million, a decrease of $0.5 million or 8% compared to the same period in 2022 [208]. - For the nine months ended September 30, 2023, total revenue in the U.K. decreased by $3.5 million or 15% compared to the same period in 2022 [211]. Income and Expenses - SG&A and Non-Op expenses for Q3 2023 were $18.1 million, a decrease of $4.4 million or 19.7% compared to Q3 2022, with SG&A as a percentage of revenue at 46.0% [170]. - EBITDA for Q3 2023 was $1.2 million, down $0.4 million from $1.6 million in Q3 2022 [170]. - Net income for Q3 2023 was $0.5 million, a decrease of $0.4 million compared to net income of $1.0 million in Q3 2022 [171]. - Adjusted net revenue for the nine months ended September 30, 2023, was $63.7 million, down $13.3 million or 17.3% from the same period in 2022 [176]. - SG&A and Non-Op for the nine months ended September 30, 2023, was $60.3 million, a decrease of $7.0 million or 10.4% compared to the same period in 2022 [176]. - EBITDA for the nine months ended September 30, 2023, was $3.4 million, down $6.3 million from $9.7 million in the same period in 2022 [176]. - Net income for the nine months ended September 30, 2023, was $1.5 million, a decrease of $5.6 million compared to net income of $7.1 million in the same period in 2022 [176]. - For the three months ended September 30, 2023, the operating loss was $0.2 million, compared to operating income of $0.6 million in 2022, and EBITDA was $0.0 million, down from $0.8 million in 2022 [189]. - For the nine months ended September 30, 2023, the operating loss was $1.4 million, compared to operating income of $5.0 million in 2022, and EBITDA loss was $0.9 million, down from $5.5 million in 2022 [190]. Regional Performance - RPO revenue in the Americas decreased by $5.1 million, or 42%, in Q3 2023 compared to Q3 2022 [182]. - Contracting revenue in the Americas decreased by $0.3 million, or 56%, in Q3 2023 compared to Q3 2022 [182]. - For the three months ended September 30, 2023, adjusted net revenue in Asia Pacific was $8.7 million, an increase of $0.7 million, or 8%, compared to the same period in 2022 [196]. - For the nine months ended September 30, 2023, operating income in Asia Pacific was $6.3 million, compared to $6.1 million in 2022, with EBITDA at $5.5 million, or 7% of revenue [206]. - Adjusted net revenue for the three months ended September 30, 2023, was $3.8 million, a decrease of $0.4 million or 10% compared to the same period in 2022 [213]. - Operating income for the three months ended September 30, 2023, was $0.1 million, a decrease of $0.2 million or 59% compared to the same period in 2022 [219]. Cash Flow and Liquidity - Cash and cash equivalents totaled $22.0 million as of September 30, 2023, down from $27.5 million as of December 31, 2022 [229]. - Net cash used by operating activities for the nine months ended September 30, 2023, was $3.0 million, compared to $5.1 million of net cash provided in the same period in 2022 [230]. - For the nine months ended September 30, 2023, net cash used in investing activities was $0.1 million, a decrease from $1.3 million in 2022, primarily due to lower capital expenditures and a prior year acquisition payment of $0.8 million [231]. - Net cash used in financing activities for the nine months ended September 30, 2023, was $2.2 million, compared to $2.0 million in 2022, with the increase attributed to higher loan repayments of $0.6 million related to the Karani Acquisition [232]. - As of September 30, 2023, the Company had cash and cash equivalents of $21.6 million, with an additional borrowing capacity of 4 million Australian dollars under the NAB Facility Agreement [234]. - The Company believes it has sufficient liquidity to meet its needs for at least the next 12 months based on its financial position as of September 30, 2023 [234]. Compliance and Contingencies - The Company had no off-balance sheet arrangements that could materially affect its financial condition as of September 30, 2023 [236]. - The Company did not have any reserves for legal, regulatory, or other contingent liabilities as of September 30, 2023 [239]. - The Company is subject to various compliance audits and potential claims, but believes that none will have a material adverse effect on its financial condition [237].
Hudson Global(HSON) - 2023 Q3 - Quarterly Report