Financial Data and Key Metrics Changes - For Q3 2024, the company reported revenue of 36.9million,down818.6 million, down 5% year-over-year in constant currency [6] - Adjusted EBITDA for Q3 was 0.8millioncomparedto2 million a year ago [6] - The company reported a net loss of 0.8millionor0.28 per diluted share, compared to net income of 0.5millionor0.17 per diluted share in the same period last year [7] Business Line Data and Key Metrics Changes - Americas business revenue increased 6%, while adjusted net revenue decreased 3% year-over-year in constant currency, with adjusted EBITDA of 0.6million,upfrom0.3 million last year [8] - Asia Pacific business revenue decreased 15%, and adjusted net revenue decreased 11% year-over-year in constant currency, with adjusted EBITDA of 0.9millioncomparedto2.3 million a year ago [8][9] - EMEA business revenue increased 7% year-over-year in constant currency, with adjusted net revenue increasing 5%, and adjusted EBITDA was flat at 0.2millioncomparedtothepreviousyear[9]MarketDataandKeyMetricsChanges−Thecompanyendedthequarterwith16.5 million in cash, including 0.7millionofrestrictedcash,andgenerated1.3 million in cash flow from operations, compared to a 0.7millioncashoutflowfromoperationsinQ32023[10]−Dayssalesoutstandingimprovedto56daysatSeptember30,2024,from59daysatJune30,2024[10]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusingonenhancinggeographicalreachandserviceofferingsthroughstrategichires,whichhaveledtorecognitionsintheindustry[11]−The"landandexpand"strategyisshowingincrementalgains,withexpansionintonewgeographiesandterritorieswithexistingpartners[12]−Thecompanyiscommittedtorightsizingitsbusinesstosupportclientdemandsandprovidenecessaryservices[13]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementnotedthathiringvolumesfromexistingclientshavebeensignificantlybelowexpectations,particularlyinthefinancialsectorinAsiaPacific,butexpectsareturntonormallevelsnextyear[16][23]−Thecompanyisoptimisticaboutclientfeedbackandnewbusinesswins,indicatingarobustsalespipelineandabrightfutureahead[14]−Managementhighlightedtheimportanceofastable,pro−businessenvironmentforimprovinghiringlevels,especiallyinthefinancialservicessector[23]OtherImportantInformation−Thebalancesheetreflects5.8 million of goodwill and 2.8millionofnetamortizableintangibleassetsasofSeptember30,2024[10]−Thecompanyhasbeenactivelybuyingbackstock,with2.5 million worth repurchased this year, and believes its stock is undervalued [27] Q&A Session Summary Question: Differences in activity across regions - Management noted growth in the Americas and EMEA, while Asia Pacific has seen lower hiring volumes, particularly in the financial sector [16][17] Question: Industry verticals leading activity - Life sciences and pharmaceuticals sectors remain stable, while financial services are underperforming, and technology is seeing incremental improvement [20] Question: Political ramifications on client demand - Management stated it is too early to assess political impacts but noted ongoing market uncertainties and the potential for a more stable environment to improve hiring [22][23] Question: Free cash flow and acquisition pipeline - The company is always looking at acquisition targets but prefers organic growth; no significant acquisitions are imminent, and they continue to buy back stock [25][27]
