Hudson Global (NASDAQ: HSON) reported Q1 EPS of ($0.08), $0.09 better than the analyst estimate of ($0.17). Revenue for the quarter came in at $24.1 million versus the consensus estimate of $25.25 million.

2020 First Quarter Summary

• Revenue of $24.1 million increased 49.1% from the first quarter of 2019 and 55.2% in constant currency.
• Adjusted net revenue of $9.8 million increased 4.3% from the first quarter of 2019 and 7.8% in constant currency.
• Net loss improved to $0.5 million, or $0.17 per basic and diluted share, from a net loss of $1.9 million, or $0.58 per basic and diluted share, for the first quarter of 2019. Adjusted net loss per diluted share (Non-GAAP measure)* of $(0.08) improved from $(0.50) in the first quarter of 2019.
• Adjusted EBITDA (Non-GAAP measure)* loss improved to $0.1 million from an adjusted EBITDA loss of $1.5 million in the first quarter of 2019.
• Share count reduced by 16% since December 31, 2018.
• Total cash including restricted cash was $26.5 million at March 31, 2020.

“In the first quarter, we reported solid year on year growth despite starting to experience the economic impact of the COVID-19 pandemic in March,” said Jeff Eberwein, Chief Executive Officer of Hudson Global. “We grew adjusted net revenue in constant currency, as well as adjusted EBITDA, in all three regions.”

Mr. Eberwein continued, “Our top priority during these unprecedented times continues to be the health and safety of our talented team and prestigious clients. As our clients and employees around the globe have transitioned to new ways of working, we are pleased with the resilience of our team and business.”

COVID-19 Update

As disclosed in the Company's press releases issued on March 13, 2020 and March 30, 2020, as well as in our 2019 Form 10-K, our business has begun to be adversely impacted by the recent COVID-19 outbreak and the accompanying economic downturn. This downturn, as well as the uncertainty regarding the duration, spread, and intensity of the outbreak, has led to an initial reduction in demand for our services. Some of our customers have instituted hiring freezes, while other customers that are more capable of working remotely have been allowed to operate as usual. The expected timeline for this reduction in demand for our services remains uncertain and difficult to predict considering the rapidly evolving landscape.

The Company is vigilantly monitoring the situation surrounding COVID-19 and will continue to proactively address this situation as it evolves. Due to the flexibility of its workforce and the actions it is taking, the Company is confident it can continue to efficiently manage its business and mitigate risks in this challenging environment, while retaining the ability to meet clients' needs when activity improves.

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