Hudson Global stock jumps 20%: here’s the catalyst

Hudson Global Inc. (NASDAQ: HSON) stock jumped 20% premarket after posting a 77.1% YoY increase in Q3 2021 revenue to $45 million.

Adjusted net revenue was up 98.8% YoY to $18 million and 92.7% in constant currency. Hudson Global reported a net income increase to $1.5 million or $0.49 per share relative to a loss of $1.2 million or $0.41 per share a year ago. Adjusted EBITDA during the quarter was $3 million improving from last year’s EBITDA loss of $0.7 million.

Hudson Global reports strong across all three regions

Hudson Global CEO Jeff Eberwein said:

The company's Asia Pacific revenue was $32.3 million, increasing 58% YoY, while adjusted net revenue was up 54%  to $7.9 million. Hudson Global had an EBITDA of $1.8 million for the Asia Pacific region and an adjusted EBITDA of $2.2 million.

In the Americas, revenue was up 280% to $7.4 million, with adjusted net revenue increasing 315% to $7 million during the quarter. The impressive top-line growth was a result of strong organic growth and Coit Group acquisition in Q4 2020. European revenue in Q3 was up 39% to $5.3 million, with adjusted net revenue increased 22% to $3.1 million. Eberwein said:

Hudson global continues to repurchase shares.

The company had $26.5 million in cash at the end of Q3 2021, including $0.3 million in restricted cash. In addition, Hudson Global earned $2.3 million in cash flow from operations during the quarter, compared to an outflow of $0.5 million in Q3 2020.

Hudson Global decreased its number of shares by 15% since the start of 2019 and continues to see share repurchases as an attractive use of resources. Currently, it has $1.7 million left under its $10 million common stock share repurchase program.