Q2 2025 Hudson Global Inc Earnings Call
One officer, Jeff Eberwein.
<unk> Financial Officer, Matt Diamond and global CEO of Hudson, Our P O Jake Zip codes.
Please be advised that the statements made during the presentation.
<unk> forward looking statements under applicable securities laws.
Such forward looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward looking statements.
These risks are discussed in our form 8-K filed earlier today and in our other filings made with the Securities and Exchange Commission.
Including our quarterly report on Form 10-Q.
The company disclaims any obligation to update any forward looking statements.
During the course of this conference call references will be made to non G. A a P terms such as constant currency.
Adjusted EBIT da and adjusted earnings per diluted share.
Reconciliations for these measures are included in our earnings release and quarterly slides both posted on our website Hudson RPE O Dot com.
I encourage you to access our earnings materials at this time as they will serve as a helpful reference guide during our call.
Please note this conference is being recorded.
I will now turn the call over to Jeff Eberwein go ahead. Please.
Thank you operator and welcome everyone. We thank you for your interest in Hudson Global and for joining us today.
Speaker #3: Good morning and welcome to the Hudson Global Conference Call for the second quarter of 2025. Our call today will be led by Chief Executive Officer, Jeff Eberwein, Chief Financial Officer, Matt Diamond, and Global CEO of Hudson, RPO, Jake Zabkowicz.
I'll start by reviewing our second quarter 2025 results then Matt Diamond our CFO will provide some additional details on our financials.
Lastly, Jay Z <unk> global CEO of our <unk> business will provide an update on that business.
For the second quarter of 2025, we reported revenue of $35 5 million down slightly year over year in constant currency, while adjusted net revenue of $18 6 million increased by five 1% year over year in constant currency.
Speaker #3: Please be advised that the statements made during the presentation include forward-looking statements under applicable securities laws. Such forward-looking statements involve certain risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements.
Our adjusted EBITDA for the second quarter was $1 3 million improving from adjusted EBITDA of $7 million a year ago.
Speaker #3: These risks are discussed in our Form 8K filed earlier today and in our other filings made with a securities and exchange commission. Including our quarterly report on Form 10Q.
In addition, we reported a net loss of <unk> 7 million or <unk> 23 per diluted share versus a net loss of <unk> 4 million or <unk> 15 per diluted share in the same period last year.
On an adjusted basis Q2.
Speaker #3: The company disclaims any obligation to update any forward-looking statements. During the course of this conference call, references will be made to non-GAAP terms such as constant currency, adjusted EBITDA, and adjusted earnings per diluted share.
2025, adjusted net income per share was <unk> 12, compared to net income of <unk> <unk> in the second quarter of last year.
Importantly, Q2, 2025 marks the third consecutive quarter of year over year growth in adjusted net revenue and adjusted EBITDA, which makes us believe that business has turned the corner.
Speaker #3: Reconciliations for these measures are included in our earnings release and quarterly slides, both posted on our website, HudsonRPO.com. I encourage you to access our earnings materials at this time, as they will serve as a helpful reference guide during our call.
Growth was stronger in Q2, and this year's first quarter and we expect this trend to continue through the end of the year and into 2026.
While the macro environment for talent remains mixed we see plenty of opportunities ahead, and we continue to make investments in our business to better support our clients' needs and streamline operations.
Speaker #3: Please note that this conference is being recorded. I will now turn the call over to Jeff Eberwein. Go ahead, please.
Altogether in the first half of 2025, we invested approximately $1 4 million in sales marketing and technology above maintenance levels to enhance future growth.
Speaker #1: Thank you, operator, and welcome, everyone. We thank you for your interest in Hudson Global and for joining us today. I'll start by reviewing our second quarter 2025 results.
Our growth strategy remains focused on organic expansion <unk>.
<unk> bolt on acquisitions and cross regional service integration initiatives designed to broaden our client base extend our geographic footprint.
Speaker #1: Then Matt Diamond, our CFO, will provide some additional details on our financials. Lastly, Jake Zabkowicz, Global CEO of our RPO business, will provide an update on that business.
And unlock additional value for our clients.
Speaker #1: For the second quarter of 2025, we reported revenue of $35.5 million. Down slightly, year over year, in constant currency. While adjusted net revenue of $18.6 million increased by 5.1% year over year in constant currency.
Now I'll turn the call over to Matt Diamond to review, our financial results by region as well as some additional financial details from the second quarter.
Thank you, Jeff and good morning, everyone.
Q2, 2025 revenue for our Americas business increased 2% and adjusted net revenue decreased 1% year over year in constant currency.
Speaker #1: Our adjusted EBITDA for the second quarter was $1.3 million, improving from adjusted EBITDA of $0.7 million a year ago. In addition, we reported a net loss of 0.7 million, or 23 cents per diluted share, versus a net loss of $0.4 million, or 15 cents per diluted share, in the same period last year.
We reported Q2 2025, adjusted EBITDA of $1 7 million compared to last year's adjusted EBITDA of $1 6 million.
Q2, 2025 revenue for our Asia Pacific business decreased 3%, while adjusted net revenue increased 717% year over year in constant currency.
Speaker #1: On an adjusted basis, Q2 2025 adjusted net income per share was $0.12 compared to net income of $0.04 in the second quarter of last year.
This is largely due to a shift in revenue mix with temporary contracting work comprising a lower share of revenue in the quarter.
In Q2, 2025, we reported adjusted EBITDA of $1 9 million up from adjusted EBITDA of <unk> 8 million a year ago.
Speaker #1: Importantly, Q2 2025 marks the third consecutive quarter of year over year growth in adjusted net revenue and adjusted EBITDA which makes us believe the business has turned the orner.
Q2, 2025 revenue for our EMEA business increased 6% versus the prior year in constant quarter.
Speaker #1: Growth was stronger in Q2 than this year's first quarter, and we expect this trend to continue through the end of the year and into 2026.
In constant currency, while adjusted net revenue decreased 9%.
Our Q2 2025, adjusted EBITDA loss was <unk> 4 million compared to adjusted EBITDA of $3 million in the second quarter of 2024.
Speaker #1: While the macro environment for talent remains mixed, we see plenty of opportunities ahead, and we continue to make investments in our business to better support our clients' needs and streamline operations.
Turning to some additional financial details for the quarter.
Speaker #1: Altogether, in the first half of 2025, we invested approximately $1.4 million in sales, marketing, and technology above maintenance levels to enhance future growth. Our growth strategy remains focused on organic expansion, targeted bolt-on acquisitions, and cross-regional service integration initiatives designed to broaden our client base, extend our geographic footprint, and unlock additional value for our clients.
Overall days sales outstanding was 56 days at June 32025 unchanged versus DSO at March 31, 2025.
The company had an inflow of <unk> $1 million in cash flow from operations. During the second quarter of 2025 compared to $4 3 million of an outflow from operations in the second quarter of 2024.
We ended the second quarter with $17 5 million in cash, including <unk> 7 million of restricted cash.
Speaker #1: Now 'll turn the call over to Matt Diamond to review our financial results by region. As well as some additional financial details from the second quarter.
In connection with our acquisition activity in recent years, our balance sheet as of June 32025 reflects $5 8 million of goodwill and $2 1 million of net amortizing intangible assets.
Speaker #4: Thank you, Jeff. And good morning, everyone. Q2 2025 revenue for our Americas business increased 2%, and adjusted net revenue decreased 1% year over year in constant currency.
The Companys working capital, excluding cash was $12 2 million.
Slightly above year end 2024.
Speaker #4: We reported Q2 2025 adjusted EBITDA of $0.7 million, compared to last year's adjusted EBITDA of $0.6 million. Q2 2025 revenue for our Asia-Pacific business decreased 3%, while adjusted net revenue increased 17% year over year in constant currency.
I'll now turn the call over to Jay to discuss our <unk> business.
Thank you, Matt and good morning all.
Although we continue to face challenges similar to those experienced in 2020 for many of which are industry wide. We are encouraged by clear signs of improvement. The overall increase in adjusted net revenue in the second quarter of 2025 reflects a modest but meaningful recovery in business activity, particularly across the APAC region.
Speaker #4: This is largely due to a shift in revenue mix, with temporary contracting work comprising a lower share of revenue in the quarter. In Q2 2025, we reported adjusted EBITDA of 1.9 million, up from adjusted EBITDA of $0.8 million a year ago.
Thanks to proactive steps, we have taken and continue to take our business is better positioned for growth today than ever before year to date, we continue to make strategic hires aimed at deepening our capabilities and enhancing our ability to deliver scalable high impact health solutions to our clients as.
Speaker #4: Q2 2025 revenue for our EMEA business increased 6% versus the prior year in constant quarter in constant currency, while adjusted net revenue decreased 9%.
As I mentioned in previous earnings call a major investment for US is in our digital platform a confusion and we are building out the team to support the product with our clients.
Speaker #4: Our Q2 2025 adjusted EBITDA loss was $0.4 million, compared to adjusted EBITDA of $0.3 million in the second quarter of 2024. Turning to some additional financial details for the quarter, overall, day sales outstanding was $56 days at June 30th, 2025.
We also recently executed two important strategic transactions the acquisition of Alpha consulting group, which are banned based recruitment services provider, making marking our formal entry into the Japanese market and the integration of Mackenzie CMO group of boutique firms specializing in recruitment marketing brand strategy and talent engagement.
Speaker #4: Unchanged versus DSO at March 31st, 2025. The company had an inflow of $0.1 million in cash flow from operations during the second quarter of 2025.
These developments reinforce our commitment to investing in high impact areas that deliver long term value to our clients and our shareholders.
Speaker #4: Compared to $4.3 million in outflow from operations in the second quarter of 2024, we ended the second quarter with $17.5 million in cash, including $0.7 million of restricted cash.
Additionally, we are encouraged by continued new business wins and a robust sales pipeline. We believe that we are well positioned to convert this pipeline into tangible results and capturing new opportunities as the market conditions improve.
In line with our first quarter momentum, we continued to execute on our land and expand strategy throughout Q2, focusing on expanding our geographical reach and broadening our service offerings to both existing and prospective clients alike.
Speaker #4: In connection with our acquisition activity in recent years, our balance sheet as of June 30, 2025, reflects $5.8 million of goodwill and $2.0 million of net amortizable intangible assets.
As a result, we secured approximately $31 1 million and adjusted net revenue from renewals and expansions at existing clients and approximately $11 4 million from new logo wins over the prior four quarters. Our talented team is well positioned to deliver exceptional results and we remain focused on building a more resilient agile and growth oriented.
Speaker #4: The company's working capital, excluding cash, was $12.2 million, slightly above year-end 2024. I'll now turn the call over to Jake to discuss our RPO business.
Speaker #5: Thank you, Matt, and good evening. Although we continue to face challenges similar to those experienced in 2024, many of which are industry-wide, we are encouraged by clear signs of improvement.
<unk> business for the long term.
Now I'll turn the call back over to Jeff for some closing remarks.
Speaker #5: The overall increase in adjusted net revenue in the second quarter of 2025 reflects the modest but meaningful recovery in business activity particularly across APAC region.
Thank you Jay before we open the line for questions I want to reinforce <unk> message, while we continue to navigate a challenging global environment. We believe Hudson IPO is well positioned for strong future growth and is poised to outperform its peers. The operational improvements we have made across the organization are expected to strengthen our bottom line.
Speaker #5: Thanks to proactive steps we taken and continue to take, our business is better positioned for growth today than ever before. Year to date, we continue to ake strategic hires aimed deepening our capabilities and enhancing our ability to deliver scalable, high-impact talent solutions to our clients.
Performance in the coming quarters and drive long term value for our shareholders.
Speaker #5: As I mentioned in the previous earnings call, a major investment for us is in our ITAL platform, Hudson Fusion, and we are building out the team to support the product with our clients.
Finally, I'd like to remind you that the special meetings to approve the merger with Star equity announced in May 2025 is scheduled for August 21, we strongly encourage all shareholders to vote for the merger we.
Speaker #5: We also recently executed two important strategic transactions. The acquisition of Alpha Consulting Group, a Japan-based recruitment services provider, marking our formal entry into the Japanese market.
We expect the new entity to deliver significant value through greater scale enhanced revenue diversification and the elimination of redundant public company and overhead costs.
Speaker #5: And the integration McKinsey CMO Group, a boutique firm specializing in recruitment marketing, brand strategy, and talent engagement. These developments reinforce our commitment to investing in high-impact areas that deliver long-term value to our clients and our areholders.
Operator can you. Please open the line for questions.
We will now begin the question and answer session to.
To ask a question you May Press Star then one on your Touchtone phone.
Speaker #5: Additionally, we are encouraged by continued new business wins and a robust sales pipeline. We believe that we are well-positioned to convert this pipeline into tangible results and capture new opportunities as market conditions improve.
If you are using a speaker phone please pickup your handset before pressing the keys.
At any time. Your question has been addressed and you would like to withdraw your question. Please press Star then two.
Speaker #5: In line with our first quarter momentum, we continue to execute on our land and expand strategy throughout Q2. Focusing on expanding our geographical reach and broadening our service offerings to both existing and prospective clients alike.
At this time, we will pause momentarily to assemble our roster.
Speaker #5: As a result, we secured approximately $31.1 million in adjusted net revenue from renewals and expansions at existing clients, and approximately $11.4 million from new logo wins over the prior four quarters.
Speaker #5: Our talented team is well positioned to deliver exceptional results, and we remain focused on building a more resilient, agile, and growth-oriented business for the long term.
Okay.
Our first question comes from Michael Matheson of Sidoti and company go ahead. Please.
Speaker #5: I'll now turn the call back over to Jeff for some closing remarks. Thank ou, Jake. Before we open the line for questions, I want to reinforce Jake's message.
Good morning, you guys congratulations on the quarter.
Good morning.
Turning to some of my questions. It was an interesting quarter by region.
Speaker #5: While we continue to navigate a challenging global environment, we believe Hudson RPO is well-positioned for strong future growth and is poised to outperform its peers.
What's kind of decompose a couple of things, let's start with Asia, that's 60% of your business.
Net revenue in Asia was up 16%.
Speaker #5: The operational improvements we've made across the organization are expected to strengthen our bottom-line performance in the coming quarters and drive long-term value for our shareholders.
So what led to those much higher margins.
Kevin I'll turn this over to Jake but.
Speaker #5: Finally, I'd like to remind you that the special meetings to approve the merger with Star Equity announced in May 2025 is scheduled for August 21st.
That just mathematically the biggest thing I would say is that revenue was very depressed.
Last year, we saw a significant slowdown in hiring in.
Speaker #5: We strongly encourage all shareholders to vote for the merger. We expect the new entity to deliver significant value through greater scale enhanced revenue diversification and the elimination of redundant public company and overhead costs.
In financials.
Companies that we do business with in the financial sector.
And so.
The biggest statement I would make is that.
Speaker #5: Operator, can you please open the line for questions?
Things started to return to normal.
And.
In that sector in Asia Pac.
Speaker #6: We will now begin the question and answer session. To ask a question, you may press star, then one on your touchstone phone. If you are using a speakerphone, please pick up your handset before pressing the keys.
Let's say the end of last year and so the Q2 results reflect more of just a return to normal.
And when looking at it on a year over year basis, either the biggest thing I would say is just last year was a depressed number.
Speaker #6: If at any time your question has been addressed and you would like to withdraw your question, please press star, then two. At this time, we will pause momentarily to assemble our roster.
Got it okay favorable comps great.
Let's turn to the Americas region next then roughly 20% of sales 22%.
<unk> revenue was up even though it made the headlines big time, just what a terrible quarter. It was in the American jobs report.
To what do you attribute the discrepancy or are you just selectively in sectors that are in are doing well or just the balance of mix of your business.
But we do think we're gaining share.
Jake you want to provide some additional detail on that yeah, Jeff of course and good morning.
Speaker #6: Our first question comes from Michael Matheson, of Sadati and Company. Go ahead, please.
In the Americas, two things there I see three things that have really worked for us. This last quarter. One is our new level of sales we started to see an increase in the clients that we've implemented and that is contributing to our top and revenue growth, which is really exciting because we have that new spending level sales pipeline is continuing to grow but also that landed.
Speaker #7: Good morning, you guys. Congratulations on the quarter.
Speaker #5: Good morning.
Speaker #7: turning to some of my questions, it was an interesting quarter by region. it was kind of decomposed a uple of things. Let's start with Asia that's, 60% of your business.
Speaker #7: Net revenue in Asia was up 16%. So what led to those much higher margins?
And expand strategy looking at how are we offering different products in the different regions in the different geographies and we're seeing that pick up as well.
Speaker #5: Yeah, I'm gonna I'll turn this over to Jake, but, the just mathematically, the biggest thing I would say is that, revenue was very depressed.
And which we will continue to build out over the next couple of quarters, but really the growth has been the new logo sales wins as well as that land and expand with some of our existing accounts since its existing partners expanding their services within the it was in the Americas.
Speaker #5: last year, we saw, a significant slowdown in hiring in financials, companies that we do business with in the financial sector. and so the biggest statement I would make is that, things started to return to normal in, in that sector in Asia PAC.
Great great.
Let's look at Europe then.
In some ways that was the most striking out performance of Europe has been very flat economically you were up 6% in constant currency.
Speaker #5: Let's say the end of last year and so the Q2 results reflect more of just a return to normal. When looking at it on a year-over-year basis, the biggest thing I would say is that last year was a depressed number.
Anything that would explain that outperformance.
Go ahead, Jay Yeah, Yeah, great Great question, Europe, we've really taken a turn in Europe, right now and we're seeing some traction with our investments in the middle East.
Which has been a long waited long waiting first to see that so it's really good to see that that revenue come in the door, but also to the team has done a really good job of that land and expand and we're offering different products to our to our partners.
Speaker #7: Got it. Okay. Favorable comps. Great. Well, let's turn to the Americas region next then. Roughly 20% of sales, 22%. Your revenue was up, even though it made the headlines big time just what a terrible quarter it was in the American jobs report.
We're seeing an uptick in our boutique executive search in the European Theater, which is which is nice as well. So you know I look at the overall broader market and while there's still a lot of.
Speaker #7: to what do you attribute the discrepancy? Are you just, selectively in sectors that are are doing well or just the the balance and mix of your business?
Questions and some considerations in I'll say headwinds.
The changes that we've made over the last say 12 months has really positioned us to continue to grow across all of the regions and we're starting to see some of that debt that pick up.
Speaker #5: Well, we do think we're aining share. Jake, you want to provide some additional detail on that?
Speaker #8: Yeah, Jeff, of course. And good ning. you know, I think in the Americas, there's two things, there actually three things that I've I've really worked for us this last quarter.
Okay, Mike I would just say just big Big picture, we see our base.
Speaker #8: One is our new logo sales. we started to see an increase in the clients that we've implemented. And that is contributing to our top-end revenue growth, which is really exciting because we have that new that new logo sales pipeline is continuing to grow.
Our legacy clients.
Returning to more normal activity levels after going through a period of depressed activity levels.
Hopefully the overall market will improve going forward not counting on that but.
Speaker #8: But also that land and expand strategy, you know, and looking at, you know, how are we offering different products into the different regions and the different geographies?
We're winning new clients at a faster rate than we have historically, so that's exciting and then we have three new regions that we never had before the middle East.
Speaker #8: And we're seeing that pick up as well. and which we will continue build out over, you know, the xt couple of quarters. But really, the growth has been the logo sales wins as well as that land and expand.
As of about 18 months ago.
Speaker #8: With some of our existing accounts and existing partners, we are expanding their services within the Americas.
We went from nothing to now.
Starting to get traction starting to get revenue.
We're building a business in Latin America, and starting to see revenue there and starting to see some client wins there and then this recent acquisition in Japan.
Speaker #7: Great. Great. Well, let's look at Europe then. in some ways, that was the most striking outperformance. Europe has been very flat economically. you were up 6% in constant currency.
We have.
Many I would say global.
Clients and historically.
Speaker #7: anything that would explain that outperformance?
Whenever they needed help in Japan. Unfortunately, we had to say sorry can't help you there and now we can help them.
Speaker #5: Go ahead, Jake.
Speaker #8: Yeah. Yeah, great. Another great estion. Europe, we, you know, we've we've really taken a turn in Europe right now. and we're seeing some traction with our investments in the Middle East.
And we've got a team on the ground, that's very experienced and we're really hoping that.
Speaker #8: which is has been a long-awaited, long-waiting for us to see that. So it's really good to see that, you know, that revenue come in the door.
That acquisition is a is one plus one equals three we're.
Speaker #8: But also too, the team has done really good job of that land and expand, and we're we're fering different products to our to our partners.
We get immediate business just from our existing clients that we haven't been able to service in Japan historically.
Speaker #8: we're seeing an uptick in our boutique executive search in the European theater, which is which is nice as well. So, you know, I'd look at, you know, the overall broader market and while there's still a lot of, you know, questions and some considerations, and I'd headwinds, you know, the the changes that we've made over the last, you know, , 12 months, has really positioned us to continue to grow across all of the regions.
Great.
Kind of turning to just.
Corporate development issues, you mentioned that youll be I'll use the word integration could use used at integrating the Mackenzie CMO group.
You were careful not to see mergers so could you explain a little bit what that means.
Go ahead Jay.
Yeah. So the Mackenzie CMO group is really a boutique firm in the U S that specializes around brand and marketing and employment brand as well as having a pretty robust contingent and project practice.
Speaker #8: And and we're starting to see some of that that that pick up.
Speaker #7: Okay. Great. Mike, I I would just say just big, big picture, we we see our base our our legacy clients returning to no more normal activity levels after going through a period of depressed activity levels.
So over the last couple of months, we looked at it looked at Dean and speaking with the owner.
Crystal Mckinsey in how can we how can we further look at a deal where it makes sense for the team to join Hudson, So Crystal and team officially joined Hudson as team members. This last wave of this this quarter.
Speaker #7: hopefully, the the overall market will improve going forward. We're not counting that. But we're we're winning new clients at a faster rate than we have historically.
Integrating that business into our overall product portfolio so far.
Speaker #7: So that's exciting. And then we have three new regions that we never had before. the Middle East, as of about 18 months ago, went from nothing to now, you know, starting to get traction, starting to get revenue.
From a standpoint of looking at that strengthening our capabilities in that brand marketing to our existing clients.
As well as taking that contingent base that had her companies had and hopefully looking at further landing and expanding into different geographies and different products there.
Speaker #7: we're building a business in Latin America. And starting to see revenue there and starting to see some client wins there. And then this recent acquisition in Japan, we have many, I would say, global clients and historically, whenever they've needed help in Japan, unfortunately, we had to say, "Sorry, can't help you there." And now we can help them.
So it wasn't that to your point E call out an acquisition, but more of a hey, let's let's figure out a way to integrate and hire the team kudos to them to help drive our overall strategy and growth in the Americas and the Americas market.
Okay. This is this is this is Jeff again, and what that looks like in dollars and cents is that instead of paying you know X amount for the business. What we did is we hired the team.
Speaker #7: And we've got a team on the ground that's very experienced. And we're really hoping that that acquisition is is one plus one equals three.
There were some.
Modest sign on bonuses and then there's a profit sharing arrangement.
Speaker #7: Where we get immediate business just from our existing clients that we haven't been able to service in Japan historically. Well, great. kind of turning to just more corporate development issues.
So it looks and feels like an acquisition, but technically.
We just.
Hired the whole team and so they became a.
Became Hudson.
Speaker #7: you ioned that you'll be I'll use the word integration. Could use used it. Integrating the McKinsey CMO Group. you were careful not to say merger.
Great got it.
Well. Thank you that runs me out of questions. Congratulations again on the quarter.
Thank you Michael.
Speaker #7: So could you explain little bit what that ans?
Speaker #5: Go head, Jake.
Speaker #8: Yeah. So the McKinsey CMO Group is really a boutique firm in the U.S. that specializes in brand and marketing and employment brand, as well as having a pretty robust contingent and project practice.
Again, if you have a question. Please press Star then one.
Our next question comes from David Siegfried a private Investor go ahead. Please.
Speaker #8: So over the last couple of months, we looked at and looked at, you know, speaking with the owner, Crystal McKinsey, and how can we how can we further look a deal where it makes sense for the team to join Hudson?
Hey, good morning, good morning for taking my call.
Sure Tobey.
ACD acquisition.
Is that something that would be immediately accretive to the bottom line.
Speaker #8: So Crystal and team, you know, officially joined Hudson as as team members this last this this quarter. And we're integrating, you know, that business into our overall product portfolio.
Ed.
Go ahead Jake.
David Great Great question and I'm, just can you do.
Speaker #8: So, you know, from a standpoint of looking at that, you know, strengthening our capabilities and that brand marketing to our existing clients, as well as taking that contingent base that her company has had and hopefully looking at further landing and expanding into different geographies and different products there.
I thought you're muffled a little bit could you just repeat your question for me if you don't mind.
Oh, yes, so the ACG acquisition with that is immediately accretive to the bottom line.
Yeah, we expect we do expect some immediate revenue and in <unk>.
Speaker #8: So it wasn't to your point. You call out an acquisition, but more of a, "Hey, let's figure out a way to integrate and hire the team, you know, to help drive our overall strategy and growth in the Americas market."
Growth in the region. So we did that was a formal acquisition. We went through all the you know the purchase the asset purchase agreements with ACG and we expect to see immediate revenue with their current base as well as landing and expanding our base in the Asia Pac region. As you know we already have.
Speaker #7: Okay.
Speaker #5: This is this is this is Jeff again. And what what that looks like in dollars and cents is that instead of paying you ow X amount for the business, what we did is we hired the team there were some modest sign-on bonuses.
A good portion of our businesses in Asia Pac and as Jeff mentioned earlier.
We're supporting our clients that have needs in Japan from outside of Japan.
Speaker #5: And then there's a a profit sharing arrangement. So it looks and feels like an acquisition. But technically, we just hired the whole team. And so they became became Hudson.
Now with the ACG acquisition, we have a robust team in Japan, India delivering on local services, which is a must need given that Japan is the second largest market in the Asia Pac region. So we do expect immediate immediate revenue. We do expect the team to pick up and then like I said before it's a very strategic move for.
Speaker #7: Great. Got it. Well, thank ou. That runs me out of questions. Congratulations again on the quarter.
Ross as you know us as a leader in the Asia Pac region, you know to have that localized presence in the Japanese market.
Speaker #5: Thank you, Michael.
I think that.
David I think the technical answer to your question is.
Speaker #6: Again, if you have a question, please press star, then one. Our next question comes from David Siegfried, a private investor. Go head, please.
On the bottom line no major impact on day one.
Their business was struggling to get to scale. So they had revenue.
Speaker #7: Hey, good morning. Thank you for taking my call.
It had a team that they were delivering service, but they didn't have the historical record of being consistently profitable and we're in a business where.
Speaker #8: Sure.
Speaker #7: Sorry, the ACG acquisition, is that something that would be immediately accretive to the bottom line?
To grow it hits your bottom line immediately and so it's a it's a tough business to break into so at the time, we closed the acquisition they were roughly breakeven as a business. So our best estimate is that it'll be from a bottom line point of view roughly breakeven.
Speaker #5: Go ahead, Jake.
Speaker #7: David, great, great question. And could you, I thought you were muffled a little bit. Can you just repeat your question for me, if you don't mind?
Speaker #7: Oh, yeah. So that ACG acquisition, would that is that immediately a creative to the bottom line?
And for a quarter or two and then it'll be a meaningful profit generator thereafter.
Speaker #8: Yeah. We expect you know we we expect some immediate revenue and and you know growth in the region. So we we did that was a a formal acquisition.
And we.
We paid a very modest amount upfront.
Speaker #8: We went through all the you ow, the purchase, the asset purchase agreements with ACG. And we expect to see immediate revenue with their current base as well as landing and expanding you know our base in the Asia PAC region.
Just a few hundred thousand dollars.
And we worked out a profit sharing arrangement.
For when they do turn the corner and start generating.
So we look at it as a win win they're going to be.
Speaker #8: As you know, you ow a good portion our business is in Asia PAC. And as Jeff mentioned earlier, we were supporting our clients you know that had needs in Japan from outside of Japan.
They're going to have much more revenue as part of Hudson than they would have staying on their own.
And so that Mackenzie group acquisition or merger was very similar to the structure that you had in the middle East a year and a half ago exam.
Speaker #8: Now with the ACG acquisition, we have a robust team in Japan delivering on local services, which is a must need you know given that Japan is the second largest market in the Asia PAC region.
Exactly.
Hey, Jack pretty much just Bob Bob the talent.
Speaker #8: So we do expect immediate revenue. We do expect the team to you know pick up and and like I said before, it's a very strategic move for us you know as you ow as a leader in the Asia PAC region you know to have that localized presence in in the Japanese market.
Exact so there is no deal.
The middle East is.
We've been really trying to grow the middle east and hiring salespeople building. The team. So it has been EBITDA negative over the last year and we think it's right on the cost of <unk>.
Speaker #5: I think that David, I think the technical answer to our question is on the bottom line, you know no major impact on day one.
Turning the corner and it's just the way the accounting works and our business in our investments.
Mediately hit the bottom line they don't.
Speaker #5: their business was struggling to get to scale. So they had revenue. they had a team. They were delivering service, but they didn't have a historical record of being consistently profitable and were in a business where to grow, it hits your bottom line immediately.
Get capitalized the way.
You know a factory would be or buying assets.
Assets were really just hiring people, which.
Cost money in the short term then you hit a period, where it's breakeven and then thereafter it.
Should be profitable, if we're making good decisions.
Speaker #5: And so it's a it's a tough business to break into. So at the time, we closed the acquisition. They were roughly break-even as a business.
Okay. Good and then there is no deals for a year and a half the MAU to deal in a short period of time.
Speaker #5: So our our best estimate is that it'll be from a bottom line point of view, you ow roughly break-even for a quarter or two and then it'll be a meaningful profit generator thereafter and we paid a very modest amount upfront just a few hundred thousand dollars and we worked out a profit sharing arrangement for when they do turn the corner and start generating profits.
Is that just because of where you're at in the business cycle. It just makes sense is that something that can continue.
This type of.
Deal flow.
Well, we're always looking we have.
Learned a lot by just being in the market and looking and it has helped us refine what's a good fit and what's not.
Our preference is to hire and grow organically.
Rather than acquire.
Speaker #5: So we look at it as a win-win. They're going to they're going to have much more revenue as part of Hudson than they would have staying on their own.
And but we're open to either and I would say, we don't have to do anything at this point we have.
Filled in the last major geographic hole, we had in our portfolio with.
Speaker #7: Good. Yeah. And so that McKinsey Group acquisition or you know merger, it was very similar to the structure that you had in the Middle East a year and a half ago.
With Japan and so.
It's it's hard to to think about any.
Significant market in the world that we can't address and so that was a really critical step for us.
Speaker #5: Exactly.
Speaker #7: Yeah. Pretty much just
Speaker #5: Exactly.
Speaker #7: brought brought the talent on.
Speaker #5: Exactly.
Speaker #7: So there's no deal.
If we're going to there's really no such thing as being half global in all your either you then need to be a regional player or a global player and if you're a global player you have to be able to serve clients in all the major markets. So that was a very important box that we checked.
Speaker #5: In the Middle East is, we've been really trying to grow the Middle East and hiring salespeople, building the team. So it has been EBITDA negative over the last year and we think it's right on the cusp of turning the corner and it's just the way the accounting works.
In the Mckinsey CMO group.
Speaker #5: And in our business, you know, investments immediately hit the bottom line. They don't get capitalized the way you know, a factory would be or or buying assets.
Those are skill sets that we didn't have so.
So much internally and so if a client needed help with those things we would typically partner with someone.
Speaker #5: We're ally just hiring people, which costs money in the short term. Then you hit a period where it's break-even and then thereafter it it should be profitable if we're making good isions.
Or.
Or.
Okay.
I advise them on an <unk>.
Who they could hire but now that we can do that in house.
This gives us a bigger suite of services, we can offer an one of jake's big themes over the last 18 months since he's been here.
Speaker #7: Yeah. Good. And then there were no deals for a year and a half, and now two deals in a short period of time. Is that just because of where you're at in the cycle? It just makes sense?
Is increased share of wallet with existing clients that we have some phenomenal clients and in many cases, our share of wallet is really really small and it's never easy to grow but.
Speaker #7: Is that something that can continue? You know, this this type of deal flow.
Speaker #5: Well, we're we're always looking and we we have learned a lot by just being in the market and and looking and it's helped us refine what's a good fit and and what's not.
It is easier to grow with an existing client than it is to land a new client so were pushing on all fronts and it's nice to see.
Speaker #5: Our preference is to hire and grow organically rather than acquire. But we're open to other options, and I would say we don't have to do anything at this point.
That that effort start to have.
Some results.
Excellent great.
I was looking at the trailing 12 months new logo wins and then those are growing so that's that's really good to see.
Speaker #5: We have filled in the last major geographic hole. We had in our portfolio with with Japan and so it it's it's hard to to think about any significant market in the world that we can't address.
How's the <unk>.
Hudson fusion.
The rollout in Europe, going how's that being accepted by customers and how does that measure up to other competitors.
Yeah, David and congratulate question Yeah, Great question, David and we're really excited about the development of HUD confusion it to what the team is doing great. So Hudson infusions of proprietary tools that we're giving to you were providing to both our current base as well as existing.
Speaker #5: And so that a really critical step for us. you know, if we're going to there's really no no such thing as being half global.
Speaker #5: You know, you're either you ither need to be a regional player or a global player. And you're a global player, you have to be able to serve clients in all the major markets.
We are just in the infancy stages of launching it. So we have a couple of clients are using it right now.
Speaker #5: so that was a very important box that that we checked. And the McKinsey CMO Group, you know, those were skill sets that we didn't have so much internally.
They are using.
Our talent IQ platform religion underneath the Hudson infusion umbrella, which is our market insight.
And over the next couple of months and quarters, we expect to see significant adoption again, both in our existing base as well as in new logos.
Speaker #5: And so if a client needed help those things, we would typically partner with someone or or advise them on on you know, who they could hire.
Good news is for for our standpoint is.
Now that we have a product offering and have a digital offering that we didn't have before it's a it's a very easy equation to our clients an introduction to our clients because all clients now specifically to HR.
Speaker #5: But now that we can do that in-house, it just gives us a a bigger suite of services. We can offer and one of Jake's big themes over the last 18 months since he's been here is increased share of wallet with existing clients.
Sealed right, there's a there's a big pressure to automate digit Tonight, and you leverage AI as part of the processes and so having this tool now we see a we see great signs of adoption and also being able to sell into our new logos them into our existing base. So more to come there and as we get further adoption David.
Speaker #5: So we have some phenomenal clients and in many cases, our share of wallet is really, really small. And it's never easy to grow. But it is easier to grow with an existing client than it is to land a new client.
We will be sharing that but it is it is a unique differentiator across the board regarding how it differentiates and differentiate us from our competitors.
Speaker #5: So we're pushing on all fronts. And it's nice see that that effort start to have some results.
AIA, there's a lot of different forms the AI and the bespoke way that we're taking it is a modular approach and that we want to be able to solve our clients' problems and not fit a square peg into a square a square peg into a round hole right, but truly a customized approach and in that regard.
Speaker #7: Yeah. Excellent. I agree. I I was looking at the trailing 12 months. New logo wins. I mean, those are growing. So that's that's really good to see.
Speaker #5: Yeah.
Speaker #7: How's the Hudson Fusion, the AI rollout in Europe, going? How's that being accepted by customers? And how does it measure up to others, like our competitors?
And we are we are definitely seeing that with some of the new clients that are that are coming out of that platform. So more to come and I think that you know AI is definitely going to continue to transform our business and.
Speaker #8: David, great question. And yeah, great question, David. And we're really excited about the development of Hudson Fusion with the team is doing, right? So Hudson usion is our proprietary tools.
Must say that Hudson in what we're doing right now with this investment is going to be a key player in that.
And David I would just I would just add that.
Speaker #8: Then we're iving, you know, we're providing to both our current base as well as existing. And we are just on the infancy stages of launching it.
Our digital Division, which we just launched in the spring with the hiring of staff Edwards.
Speaker #8: So we have a couple of lients that are using it right . they're using our account IQ platform, which is underneath the Hudson Fusion umbrella, which is our market insights.
Is probably the most important thing.
We've done recently ASIC.
As a company and it's the number one thing our clients talk about.
Speaker #8: And over the next couple of months and quarters, we expect to see significant adoption again, both in our existing base as well as in the new logos.
And this suite of services and tools that we're rolling out.
Is something that existing clients are going to adopt its something we have to have in order to win new business and to win new logos and we only have one data point, but just recently it was exciting to me we have a client we've been speaking to that is.
Speaker #8: you know, good news is for for our standpoint is, you know, now that we have a product offering and have a digital offering, you know, that we didn't have before, it's a it's a very easy equation to our clients and introduction to our clients because all clients now, specifically the HR field, right, there's a there's a big pressure to automate digitalize and leverage AI as part of the processes.
Actually going to start a relationship with us by using our digital services.
So this is the first time ever we've had we've led with digital and the way we got our foot in the door was with Hudson infusion and Theyre going to start using that and then we hope it will lead to more business with this client they could eventually become an RVO client for example, but.
Speaker #8: And so having this tool now, you know, we see we see great signs of adoption and also being able to, you know, sell in into our new logos and into our existing base.
Speaker #8: So more to come there. And as we get further adoption, David, we will be sharing that. but it is it is a unique differentiator across the board.
Speaker #8: Regarding how it differentiates from our competitors, listen, AI, there's a lot of different forms of AI. And, you know, the bespoke way that we're taking it is a modular approach.
That's just kind of icing on the cake. When we started when we launched our digital division, we werent expecting that clients would.
One.
Digital only.
Speaker #8: And that we we want to be able solve our clients' problems and not fit a square pig into a square square peg into a round hole, right?
To start a relationship but.
That could be a great way for us to.
Just get a foot in the door with new clients and once we have a foot in the door. Our team is pretty good about expanding the relationship over time.
Speaker #8: But truly a customized approach and in that regards. And we are we are definitely seeing that with some of the, you know, new clients that are that are coming on that platform.
Good to hear.
<unk>.
Speaker #8: So more to come. And I think that, you know, AI is definitely going to continue to transform our business. And you know, it must say that, you ow, Hudson and what we're doing right now with this investment is is going to be a key player in that.
What would be your.
Our capital allocation priorities.
So assuming the merger and all with Star.
You know it goes through what will be use of cash because you know there is still a nice amount on the balance sheet. So what are you going to do with that going forward.
Speaker #7: Yeah.
Speaker #5: And David, I would just I would just add that, our digital, division, which we we just launched in the spring with the hiring of Steph Edwards, is, probably the most important thing we've done recently.
Yeah.
So the number one priority is.
Make.
Profitable investments in our existing businesses I think.
Speaker #5: As a company, and it's the number one thing our clients talk about. And this, suite of services and tools that we're rolling , is something that existing clients are going to adopt.
All the businesses have organic growth opportunities and in some cases those require some <unk>.
Capital investment so funding exists.
Existing funding growth at existing businesses is I would say the number one priority number two priority is we have some really great operating management teams.
Speaker #5: It's something we have to have in order to win new business and to win new logos. We only have one data point, but just recently, it was exciting to me that we have a client we've been speaking to that's finally going to start a relationship with us by using our digital services.
As evidenced by Jake at Hudson and so if there are bolt on acquisitions to do or.
Acquisitions like the two we just announced I would say that's kind of priority number two.
Speaker #5: so this is the first time ever we've had we've we've led with digital and, the way we got a foot in the door was with Hudson Fusion and they're ing to start using that.
And then we think our shares are a really cheap or we have a long history of buying back shares we havent been able to do.
Speaker #5: And then we hope it will lead to more business with this client, they could eventually become an RPO client for example. But that's just kind , icing on the cake when we started when we launched our digital division.
Do much of that in the last 18 months because of the merger discussions.
But that's something we hope to turn back on after the merger closes.
Good.
Speaker #5: We weren't expecting that, clients would, want digital only. to start a relationship, but, that could be a great way for us to, just get a foot in the door with new clients and once we have a foot the door, our team is pretty good about expanding relationship over time.
And that's a question because I noticed you know.
The merger information it looks like the talks of this merger started December 2023.
So why why is it taking so long doing one or two small companies.
I'm not complaining I'm, just asking around yeah, no I'd say, it's a good question. If you if you read all the disclosure in the proxy.
Speaker #7: Good to hear. That's a that's nice. What will be, your capital allocation priorities, assuming the merger? You know, with our, you know, goes through.
The idea was kind of launched as you as you said in late 2023.
The two companies formed a special committee.
Speaker #7: What will be the use of cash? Because you know there's still a nice amount on the the balance sheet. So what are you going to do with that going forward?
Two it to evaluate it independent Special Committee.
He wasn't involved.
And in either Special Committee, nor was management of either company. So a very independent they hired financial advisers legal a buyer that advisers and started talking to each other and they just couldnt agree on terms.
Speaker #5: Yeah. so the number one priority is, make profitable investments in our existing businesses. I think all the businesses have organic growth opportunities and in some cases those require some capital investment.
In the spring of 2024, so they decided to pause.
Speaker #5: So funding existing businesses, and funding growth at existing businesses, is, I would say, the number one priority. The number two priority is that we have some really great operating management teams, as evidenced by Jake at Hudson.
Star ended up doing a pretty significant acquisition in May of 2020 may of 2024.
And then the timing just lined up there.
Speaker #5: And so if there are bolt-on acquisitions to do or, acquisitions like the two we just announced, I would say that's kind priority number two.
Two companies started talking again in late 2024, and that will do it which is what led to the to the deal announcement and.
May of 2025, but I think the biggest takeaway from that is we have independent directors on each board, who take their fiduciary duty very very seriously and.
Speaker #5: And then, we think our shares are really cheap. We have a long history of buying back shares. We haven't been able to do much of that in the last 18 months because of the merger discussions.
Yeah.
Wanted to do a thorough analysis and.
Speaker #5: but that's something we we hope to, turn back on after the merger closes.
To make the best decision they could on behalf of shareholders and.
It just took a while for it to come together.
Speaker #7: Good. Yeah. And that's a question because I noticed, you know, the merger information looks like the talks of this merger started December 2023.
Yes.
No that's reasonable so looking at that merger information you're guiding for like 13%.
Speaker #7: so why why is it taking so long? Do you know we're two small companies. I'm not complaining. I'm just asking, you know.
Revenue net revenue growth.
25.
26, 26% growth and potentially 17% to 18% growth over the next five years from that point so.
Speaker #5: Yeah. No, 's a it's a good question. If you if you read all the disclosure and the proxy, the the idea was kind of launched as you as you said in late 2023.
And it appears after listening to the call today, they even without mass mass.
Necessarily economic improvement or increase in hiring just with your new logo wins you're.
Speaker #5: the two companies formed a special committee to to evaluate it independent special committee. I obviously wasn't involved. in in either special committee. Nor was management of either company.
Expansion into other territories, Japan all of that.
You feel confident that you can continue to grow this significantly going forward.
Speaker #5: So very independent. They hired financial advisors, legal advisors, and started talking to each other. And they just couldn't agree on terms in the spring of 2024.
I'll, let Jake I'll, let Jay address that and I would just say that thinking about our long range forecast is.
We don't.
Factor in.
Speaker #5: So they decided to pause. star ended up doing a pretty significant acquisition in May of May of 2024. and then the the timing just lined up.
Recessions, but we also don't factor in.
Booms like what we had coming out of Covid.
It's more of Hey, if you just have a.
Our regular mid cycle economic environment, where.
The global economy is growing at a historical rate, 2% or something like that in real terms.
Speaker #5: the two companies started talking again. In late 2024, and that which is what led to the to the deal announcement in May of 2025.
What should we be able to do and you can tell we're excited about our future, but Jack why don't you address that a little bit more specifically because that's.
Speaker #5: But I think the biggest takeaway that is we have independent directors on each board who take their fiduciary duty very, very seriously. And wanted to do a thorough analysis and make the best decision they could on behalf of shareholders.
Has your forecast okay.
Thanks, Jeff and David Great question.
If I look at where we were 18 months ago, we've made a lot of different investments in different levers that we can that we can pull and we can offer to our clients right is as we want to continue to grow and need to continue to grow no matter, what the market conditions looks like so yes, the macro economy does.
Speaker #5: And you know, just it took a while for it to come together.
Speaker #7: Yeah. no, I that's reasonable. So you know looking that merger information, your guiding for like 13% revenue, net revenue growth, 2025, 2026, 26% growth.
Have a significant impact and lately its been headwinds.
Facing us with with a lot of it with a lot of the announcements and changes however, being able to offer different services into the middle East and Japan, and Latin America being able to offer new products, such as a boutique executive search EVP and branded marketing contingent search allows us to be able to be.
Speaker #7: And potentially 17 to 18% growth over the xt five years. From that point. So it it appears after listening to the the call today, that even without necessarily economic improvement or increase in hiring, just with your new logo wins, your it's you know expansion to other territories, Japan, and all that, that you you'd feel confident that you can continue to grow this.
More diverse and more robust with our clients and that goes to our land and expand strategy. So even though yes. The macroeconomy does have and has been giving us a lot of headwinds our strategy with the diversification is allowing us to continue to pull on different levers with our partners to grow and expand and increase that share of wallet.
Speaker #7: Significantly going forward.
Speaker #5: Yeah. I'll I'll let Jake I'll let address that. And I would just say the thing about a long-range forecast is you know we we don't factor in recessions and but we also don't factor in booms like what we had coming out of COVID.
And we have a lot of opportunities with our current base to continue to do that.
Obviously with a focus on new logo clients.
In the in the emphases purview to help drive our overall growth strategy. So David Yes, we are become more robust more diversified and that is allowing us to continue to grow.
Speaker #5: it's more of, hey, if you just have a a regular mid-cycle economic environment where the global economy is growing at a historical rate, you ow 2% or something like in real terms, what should we be le to do?
And hopefully grow even faster when the broader market and the economy does rebound.
And.
I would just further on that one.
Really made us aggressively.
Aggressively recruit Jake and convince him to join Hudson was.
Speaker #5: And you can tell we're excited about our future. But Jake, why don't you address that a little bit more specifically, because that's your forecast.
We saw in him someone who.
Was at Korn Ferry RPE O Korn ferry just started breaking out their <unk> results separately recently and you can if you look at those results you can see that.
Speaker #8: Thanks, Jeff. And David, great question. You know if I look at you know where we were 18 months ago, you know we've made a lot of different investments in different levers that we can that we can pull.
Korn Ferry's RPM business generates about $100 million a quarter in revenue.
Speaker #8: And we can offer to our clients, right, as as we want to continue to grow and need to continue to grow. You know no matter what the market conditions looks like.
Jake was there when they were generating $40 million a year.
Speaker #8: So yes, the macroeconomy does have an significant impact. And and you know lately it's been headwinds. You know you ow facing us with with a lot of the with a lot of the announcements and changes.
And revenue and so he's he was a part of the team that grew from $40 million in revenue to $400 million in revenue on an annual basis and so he's seen firsthand what it takes to grow what it takes to build a.
Speaker #8: However, being able to offer different services into the Middle East and Japan and Latin America being able to offer new products such as boutique executive search, EVP, and branded marketing contingent search, allows us to you know be able to become more diverse and more robust with our clients.
And.
It's never easy but.
We think.
Under <unk> leadership, we're incredibly well positioned to have a really good growth rate going forward. He knows what it takes to win and that's what we're out to achieve.
Speaker #8: And that goes to our land and expand strategy. So even though, yes, their macroeconomy does have and has been giving us a lot of headwinds, our strategy is with the diversification is allowing us to continue to pull on different levers with our partners to grow and expand and increase that share of wallet.
Yes, good to hear so Jake when you look at I think you were 10 years at Korn Ferry a few if you look at where you're at in the cycle are in this process so far with Hudson.
Speaker #8: And you know we have you know a lot of opportunities with our current base to continue to do that. Obviously, with the focus on new logo clients, you know in the in the in the same purview, you know to help drive our overall growth strategy.
I mean are we now.
I mean, I think you are starting out at a lower point of revenue.
Run rate, but I mean, do you see the pieces coming together here.
David Great question.
Speaker #8: So David, yes, you know we we are becoming more robust, more diversified, and that is allowing us to continue to grow and and and hopefully grow even faster when the broader market and the economy does rebound.
Hi.
All of that everything that we've been doing for the last say 20 months since I've been here was again focused on growth and that is our guiding principle and creating values for our clients and our shareholders and our employees right and we've gone through a lot of change and we have we've.
Speaker #5: And I would I would just further to on that, what really made us aggressively recruit Jake and convince him to join Hudson was we we saw in him someone who was at Korn Ferry RPO, Korn Ferry just started breaking out their RPO results separately.
You went through a couple of acquisitions and integrations, we've hired new leadership right. We've we've.
Promoted existing leaders in their business that had been with us for many many years.
To give them a different challenges and capabilities and skills. We've we've gone through and we've really looked at how do we increase our share of wallet, but maintaining that operational excellence with our with our clients and what impresses me about what our team has withdrawn throughout all of this change.
Speaker #5: Recently, and you you can if you look at ose results, you can see that Korn Ferry's RPO business generates about $100 million a quarter in revenue.
Speaker #5: Jake was there when they were generating $40 million a year. In revenue. And so he's he was a part of the team that grew from $40 million in revenue to $400 million in revenue on an annual basis.
<unk> right, we're still delivering to our clients at a very very high caliber and that's a true testament to our leaders and our overall business not to mention offering new products right. So.
Speaker #5: And so he's seen firsthand what it takes to grow, what it takes to build, and you know it's ever easy. But we think under Jake's leadership, we're incredibly well-positioned to have a really good growth rate going forward.
It's not fair to compare the two but if you think about where we are and where we are run rate here at Hudson, we have a significant run rate.
In front of us.
If we can continue to drive that land and expand strategy offer different products that our clients are asking for right and being able to provide that at the same quality if not better than what we have been historically known for being able to know when to do so very excited about the run rate.
Speaker #5: He knows what it takes to win. And that's what we're out to achieve.
Speaker #7: Yeah. Good to hear. So Jake, when you look at I think you were 10 years at Korn Ferry. If you if you look at where you're at in the cycle or in this process so far with Hudson, I mean, are we you know I mean, I I think you're starting out at a lower point of revenue run rate.
I think that we have a lot of you know a lot of opportunities and options at the table in front of us right now.
Yeah.
Excellent well, thank you for taking my questions.
Absolutely David Good question.
Speaker #7: But I mean, I do you see the pieces coming together here? You know.
Okay.
Again, if you have a question. Please press Star then one.
Speaker #8: David, great question. And you know I what all the everything that 've been doing for the last, say, 20 months since I've been here, was again, focused on growth.
Speaker #8: And that is our guiding principle and creating values for our clients and our areholders and our employees, right? And it's and we've gone through a lot of change.
This concludes our question and answer session I would like to turn the conference back over to Jeff Eberwein for any closing remarks.
Speaker #8: And we have we we've we've you know gone a couple of acquisitions and integrations. We've hired new leadership, right? We've we've we've promoted existing leaders in their business that have been with us for many, many years.
Well. Thank you for joining us today. Thank you for your interest in Hudson you can tell that were very excited about our future and we look forward to future quarters and.
Showing our future results.
Speaker #8: to give them a different challenges and and and capabilities and skills. We've we've gone through and we've really looked at how do we increase our share of wallet but maintaining that you know operational excellence with with our with our clients.
Good day.
The conference has now concluded. Thank you for attending today's presentation you may now disconnect.