Factsheet - September 2023

Hudson Global at a Glance

  • Hudson Global, Inc. (Nasdaq: HSON) ("Hudson Global" or "the Company") owns Hudson RPO, a pure-playTotal Talent Solutions provider
  • Nasdaq-listed;spun-off from Monster.com in 2003
  • Strong financial position: $23.0(3) million of cash and $303(4) million of usable NOL carryforwards
  • Stock buyback: completed a $10 million program & initiated a new $5 million program on 8/8/23; shares outstanding reduced by approximately 12% since 12/31/18
  • Owner mindset: board and management own approximately 17%(6) of total shares outstanding and expect to own more over time
  • Maximizing stockholder value: through internal investments in our growing, high-margin RPO business, bolt-on acquisitions, and stock buybacks

___________________________________________

  1. Adjusted EBITDA and Corporate Costs are non-GAAP measures. Reconciliations of non-GAAP measures can be found in the appendix to this presentation.
  2. As of August 31, 2023. Market Capitalization defined as Shares Outstanding times Stock Price.
  3. As of June 30, 2023. Cash includes $0.4m of restricted cash. Debt excludes operating lease obligations.
  4. As of December 31, 2022 as disclosed in 2022 Form 10-K. NOL carryforward is for U.S. federal and state tax expense.
  5. 2.8 million shares outstanding as of July 31, 2023. Does not include unissued or unvested RSUs.
  6. Includes unvested share units and share units that will be issued up to 90 days after a director's/officer's separation from service.
  7. As of June 30, 2023.

$mm, except per share amounts

Stock Price(2)

$22.15

Shares Outstanding(5)

2.8M

Market Capitalization(2)

$62.5

Cash(3)

$23.0

Debt(3)

$0.0

Usable NOL Carryforward(4)

$303

# of Employees(7)

1,220

# of Countries(7)

14

$mm

2019

2020

2021

2022

LTM

Revenue

$93.8

$101.4

$169.2

$200.9

$180.2

Adj. Net Revenue

$43.6

$39.1

$68.2

$99.2

$90.7

Adj EBITDA-RPO(1)

$4.5

$2.9

$13.5

$20.1

$13.1

% of Adj Net

10.4%

7.5%

19.8%

20.3%

14.4%

Revenue

Corp Costs(1)

$4.1

$3.3

$3.4

$3.7

$3.8

Adj EBITDA(1)

$0.5

$(0.4)

$10.0

$16.4

$9.2

Business Strategy

Grow RPO

  • Global RPO market expected to grow CAGR of 13.9% from 2021 to 2030(8)
  • Hudson RPO's goal is to exceed market growth rate (i.e., gain share)
    • Superior service and delivery
    • Go deeper and broader with existing clients
    • Grow in existing markets and expand into new markets to support our clients' needs
    • Add new clients then "land and expand"
  • Hudson RPO is investing in people and technology to accelerate its growth(2)
  • Leverage existing strong reputation by expanding marketing efforts, including social media and website

Keep Overhead Expenses Low

  • Reduced complexity left over from legacy businesses
  • Both corporate and regional
  • No impact on revenues or growth

Investigate Acquisition Opportunities

  • Expand capabilities and capacity, not just growth for growth's sake
  • Deepen geographic and/or sector presence
  • Add new talent and skill sets
  • Immediately accretive
  • Utilize NOL

Repurchase Stock

  • Will be opportunistic/price sensitive
  • Goal is to maximize long-term value per share, not just "return cash"
  • Balance with acquisition opportunities
  1. https://www.researchandmarkets.com/reports/5641387/recruitment-process-outsourcing-rpo-market?utm_source=CI&utm_medium=PressRelease&utm_code=rrwmxk&utm_campaign=1744226+-+Global+Recruitment+Process+Outsourcing+(RPO)+Market+to+Grow+by+13.9%25+Annually+Through+2030&utm_exec=como322prd

Disciplined Acquisition Strategy

Centers of Excellence

Coit Group:

October 2020

  • Significantly expanded Hudson RPO's tech presence in the US; new Hudson office in San Francisco
  • Established, profitable business with strong client base
  • Coit's founders (Joe Belluomini and Tim Farrelly) became co- CEOs of Hudson RPO's
    newly formed Technology Group
  • Combination of cash,
    shares, promissory note, and earn-out agreements

Karani:

November 2021

  • Expanded Hudson RPO's global delivery capability by adding substantial presence in India and Philippines
  • Strong partnership with recruitment and staffing firms
  • Large and growing client base supported by over 500 employees in India and 125 in the Philippines
  • Expanded Hudson RPO's expertise in technology recruitment
  • Combination of cash and promissory note

Hunt & Badge:

August 2022

  • Expanded Hudson
    RPO's footprint further into the India recruitment market
  • Compliments Karani's offerings with many potential synergies between the two companies
  • Partners with companies of all sizes, including well- known multinationals, across a variety of industries

Edinburgh,

Scotland

Tampa, Florida,

Shanghai,

China

US

India

Manila,

Philippines

Contact Us:

Hudson Global, Inc.

Investor Relations

Jeffrey E. Eberwein

The Equity Group Inc.

CEO

Lena Cati

203-489-9501

212-836-9611

ir@hudsonrpo.com

lcati@equityny.com

Factsheet - September 2023

RPO - a Fast Growing Market (1)

Estimated Growth for Global RPO Market

13.9%

CAGR

2021

2030 E

From 2021 - 2030

  1. https://www.researchandmarkets.com/reports/5641387/recruitment-process-outsourcing-rpo-market?utm_source=CI&utm_medium=PressRelease&utm_code=rrwmxk&utm_campaign=1744226+-+Global+Recruitment+Process+Outsourcing+(RPO)+Market+to+Grow+by+13.9%25+Annually+Through+2030&utm_exec=como322prd

Adjusted Net Revenue by Region

(Excludes cost pass-throughs of Contracting)

Financial Highlights

Full Year 2021

Full Year 2022

H1 2023

Americas

40%

$27.1M

Americas

49%

$49.0M

$44.3M

Adjusted Net Revenue

$68.2M EMEA $12.5M

18%

APAC

42%$28.6M

$99.2M EMEA $15.9M

16%

APAC

35%$34.3M

$0.58

Adjusted EPS (Non-GAAP)

$3.8M

Adjusted EBITDA (Non-GAAP)

Financial Goals

PROFITABILITY

  • Grow profitability over time; turning profitable in mid-2019 was a watershed event in our Company's history

INTERNAL GROWTH

  • Generate high returns on internal growth projects

Hudson RPO: Salaries & Related Expenses

Salaries & Related(1) as % of Adjusted Net Revenue

100%(Rolling 4 Quarter Average)

95%

90%

85%

80%

75%

70%

65%

Goal

60%

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23

EBITDA MARGIN

► Adjusted EBITDA margin goal of 25% of Adjusted Net Revenue

Hudson RPO: Profit Margin Improvement

RPO Adj EBITDA(1) as % of Adjusted Net Revenue

(Rolling 4 Quarter Average)

at RPO level (i.e., pre Corporate Costs) vs. Q2 2023 rolling four

quarters of 14.4%

• Keep Corporate Costs low, even as profits from operating

25%

20%

15%

10%

Goal

businesses grow

• Adjusted EBITDA / Adjusted Net Revenue margins of mid-teens

at the corporate level (i.e., after Corporate Costs)

5%

0%

1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 1Q 21 2Q 21 3Q 21 4Q 21 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23

MAXIMIZE EPS

  • Maximize EPS over the long term through:
    • Growing revenue faster than costs, leading to increasing Adjusted EBITDA margins
    • Controlling overhead and other fixed costs so these costs will decline as a percentage of revenue over time
    • Reducing share count through opportunistic stock repurchases

Hudson Global: Significant Reduction in Corporate Costs

$10

$8.1M

$8

2.4

$5.2M

$6

$4.1M

$4.1M

$4.0M

1.1

$4

0.8

0.6

0.3

Non recurring

5.6

expenses

$2

4.1

3.3

3.4

3.7

Corporate costs

$-

2018

2019

2020

2021

2022

(1) Excludes non-recurring expenses. (2) Before corporate costs of Hudson Global.

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Disclaimer

Hudson Global Inc. published this content on 14 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2023 20:27:04 UTC.