Good morning, welcome to the Hudson Global conference call for the first quarter of 2023. Our call today will be led by Chief Executive Officer, Jeff Eberwein, and Chief Financial Officer, Matt Diamond. Please be advised that 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. These risks are discussed in our Form 8-K filed today and with other filings made with the Securities and Exchange Commission, including our annual report on Form 10-K. 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, adjusted earnings per diluted share. Reconciliations for these measures are included in our earnings release and in our quarterly slides, both posted on our website, hudsonrpo.com. I encourage you to access the earnings material at this time as they will serve as a helpful reference guide during this call. I will now turn the conference over to Jeff Eberwein. 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 the first quarter of 2023 highlights, and Matt Diamond, our CFO, will provide some additional details on our financial results. I'll then give an update on current business conditions. For the first quarter of 2023, we reported revenue of 43 million, down 13% year-over-year in constant currency. adjusted net revenue was 22 million and decreased 12% year-over-year in constant currency. SG&A costs were 21 million in the first quarter, up 5% versus the same period last year in constant currency. We reported adjusted EBITDA of 1.1 million, down 77% in constant currency versus a year ago. We reported net income of 0.4 million or 0.11 per share versus net income of 3 million or 0.97 per diluted share in the same period last year. We reported adjusted net income per diluted share of $0.22 in first quarter of 2023 versus $1.23 a year ago. I'll now turn the call over to Matt Diamond, our CFO, to review our financial results by region, as well as some additional financial details from the first quarter. Thank you, Jeff, and good morning, everyone. Revenue and adjusted net revenue for our Americas business decreased 36% and 35% respectively in constant currency. Breakeven adjusted EBITDA decreased versus last year's adjusted EBITDA of 3.5 million. Revenue for our Asia Pacific business decreased 8% year-over-year in constant currency, and adjusted net revenue grew 9% in constant currency. Adjusted EBITDA of 1.7 million decreased from adjusted EBITDA of 2.4 million a year ago. Our EMEA business grew revenue 16% and adjusted net revenue 31% in constant currency. Adjusted EBITDA of 0.5 million in the first quarter of 2023 increased from adjusted EBITDA of $0.3 million a year ago. Turning to some additional financial details from the first quarter. We ended Q1 with 22.3 million in cash and restricted cash. Days sales outstanding was 53 days at March 2023, up from DSO of 47 days at March 2022. In connection with the acquisition of Coit Group in the fourth quarter of 2020, Karani in the fourth quarter of 2021, and Hunt & Badge in the third quarter of 2022, our balance sheet as of March 31st, 2023, reflects 4.9 million of goodwill and 4.3 million of net amortizable and tangible assets. The company's working capital, excluding cash, increased significantly to 12.7 million in the first quarter of 2023 from 7.3 million at the end of 2022. The company used 5 million in cash flow from operations during the first quarter. The cash flow use was due to seasonal moves in working capital that we typically see in Q1, as well as a 2 million outflow for the final earnout payment related to the Coit acquisition. I'll now turn the call back over to Jeff to give some more perspective on our RPO business and to review current trends in our business. Thank you, Matt. In the 1st quarter of 2023, lower hiring activity, particularly in the technology sector, led to declines in revenue, adjusted net revenue, and adjusted EBITDA versus the prior-year quarter. Activity in other sectors remained stable, and we've seen a number of new business wins thus far in 2023. Importantly, our experienced leadership team has a history of navigating different market cycles and continues to respond quickly to changes in the market to protect our profitability. We are confident in our ability to manage the business in this environment and remain well-positioned to respond to the needs of our clients going forward. I want to thank all of our highly dedicated employees for their flexibility, hard work, and dedication to our clients and business in the challenging conditions we've been working through. Operator, can you please open the line for questions? Yes. Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we will pause momentarily to assemble the roster. The first question comes from Edward Reilly with EF Hutton. Hey, guys. Thanks for taking my question. Europe looks to be doing really well. Just wondering if you could, maybe uncover this a little bit for us. What's really driving the growth here? Yeah. Thanks, thanks for the question. You know, we did have a really good quarter in Q1 that was a bright spot for us. We've continued to win new business there. We had a significant win towards the end of last year that was ramping up in the, in the first quarter. If you just, add new business on top of the existing portfolio, you know, it makes for good year-over-year growth. You know, a year ago at this time, the sentiment there was very poor. Everyone was talking about recession, downturn. We think some of our clients there may be under-hired last year, and then things ended up not being so bad. They're, from what I can tell, you know, things stabilized, and they didn't go into a recession. Hiring actually picked up at the beginning of this year and was ahead of our expectations and showed year-over-year growth. Okay. Gotcha. On some of the other new business wins that you've had, which geographic regions have these predominantly taken place in? Should we maybe expect this to ramp for the rest of the year? Yeah. We're very excited about this year. You know, first quarter is always the weakest quarter of the year. Australia is largely on vacation pretty much the whole month of January, and we had a lot of instances where our clients and our own team actually took quite a bit of leave in January to make up for not taking their full vacation when we were coming out of COVID and everyone was super busy and stretched really thin. We've seen improvement globally each month throughout the quarter. April is better than March, which is encouraging. The new business wins are heavily in Australia, U.K., U.S., and a little bit in continental Europe, India, and China. Okay. Great. Last one for me. Could you maybe just talk about how you've been adjusting your cost structure, just given the weakened environment, particularly in the U.S.? Yeah. That's a really good question. You know, we've talked before about how our costs, our team costs tend to be 70% of net revenue. So not the gross revenue, but the net revenue. We strongly believe in that trend over time. If you look at Q1, it was significantly higher than that if you take out the stock-based comp and the non-recurring items. I think the salaries and related line was something like 77% of net revenue. We see a combination of revenues increasing from here. We think each quarter is gonna improve as the year progresses. Costs as a percentage of that revenue will decline going forward. The... I guess the issue we've had over the last 9 months has been, I would just say global unevenness. You know, some areas having a very sharp decline, like the technology sector, and other areas where we have won new business and have continued to hire, and it's, you know, not so easy to take someone who was doing tech recruiting in the U.S. and move them to Australia because we just had a new win in Australia. So we have some areas where we have too little labor and other areas where we have too much, and, you know, just takes a quarter or two to get it all adjusted. we strongly think that the long-term trend line is gonna be that, 70% salary cost, 70% of net revenue. Okay. Great. Thank you very much. Yeah. Thank you. The next question comes from Marc Riddick with Sidoti & Company. Morning, Marc. Marc, good morning. Morning. I wanted to see if we could touch a little bit on maybe what you were seeing. I think in the past, we've talked about maybe some of the different behaviors that and actions that you were seeing, whether it was smaller tech companies, larger tech companies, things like that. I was wondering if you could talk a little bit about maybe what you've seen more recently, and various, you know, differentiation, and then maybe we can sort of go into maybe what you're seeing as far as project-based actions. What we're seeing in the technology sector. Also just to be clear, we do lots of technology hiring. Every one of our clients, whether it's a pharmaceutical company or a financial services company or a consumer company, does a lot of IT hiring, and we do a lot of hiring of IT professionals. When we talk about technology, we're talking about the tech sector specifically. What we've seen there, everybody can see the headlines with a lot of big tech companies doing multiple rounds of headcount reductions, our specialty has been in that high growth, medium-sized company that maybe just recently went public or it will soon be public, and they're ramping their team in order to meet the growth that's going on in the business. You know, a lot of that has stopped, and they've shed people. We would estimate that hiring in the technology sector is down 80% year-over-year, which really seems like an unsustainable level to us. A lot of our clients, we have all the paperwork in place, all of the contracts, et cetera. If they want to resume hiring again, we can turn that back on very quickly. A lot of them have would tell us that they've cut very deeply, including cutting a lot of people in HR and talent procurement. Going forward, they'd like to have more of a variable cost model, less of a fixed cost model, and will use more RPO the next time around. We don't know when it's gonna recover, but when it does, we're incredibly well-positioned to quickly get back to the levels we were at previously. The areas that there is a little, I would say some green shoots are smaller down in the VC area where there are companies getting funded in AI and cybersecurity. Those are two areas where we are seeing some activity in hiring and some companies get funded. Another area we had a decent win in Q1 that was ramping up of IT services. These are companies that help other companies with their ERP systems, upgrading to the cloud version, building websites, and there's still a decent amount of work for those IT services companies. We did have a decent win of an IT service company, and we have been targeting that space. You actually anticipated some of the... a couple of things I was gonna ask, particularly, you know, how this sort of lays out for future RPO opportunities and the like, and as well as the AI commentary. I thank you for that. I was wondering if you could talk a little bit about, maybe what you're seeing with candidate availability and how that might play out through the year, as well as, you know, sort of, bill rate, wage rate, you know, opportunities throughout the year and what you're anticipating there. Thanks. Yeah. Let me just make sure I understand your question. In terms of candidate availability, are you talking about our recruiters hiring for clients, or are you talking about our ability to recruit recruiters? The first one, the former. Yeah. It's still really tight. You know, it depends which sector, it depends which geography, there are pockets, you know, I would say the tech sector and Silicon Valley, San Francisco area are the epicenter of hiring weakness. You have other sectors that are really struggling to find people, particularly healthcare, life sciences, medical devices. We have a client who has really struggled to find IT people in places like Texas and the Midwest. There's a real shortage of IT people. It's kinda hard to paint with a broad brush because there's pockets that are still really tight, there's other areas of weakness or even extreme weakness. You know, I'd say light industrial, we've seen some weakening there. Then on the salary wage rates, it's certainly less hot than it, than it was. What is encouraging to us is that, and what makes us really optimistic about our margins expanding going forward is that, because of the increase in wage rates, it gives us a pricing umbrella. So on new contracts or when contracts renew, we're getting, in some cases, significant price increases just because the cost of people is up, and we feel that immediately, and we're not able to pass that through until the contract comes up for renewal. It's, it's kind of an industry-wide thing. You know, said another way, we're under-earning right now. Our margins are at a low point. I think this is, you know, the low point of the cycle for us. Okay. I was wondering if you could talk a little bit about, has there been much of a change in what you're seeing as far as acquisition, the pipeline valuations, whether you've seen much of a change in what's available out there, you know, whether the macroeconomic conditions have, you know, provided maybe some potential opportunities there? Thank you. Yeah, I think that's getting better. I would say, not yet. What we saw last year is we looked at a lot of targets. It seemed like there were a higher than normal number of acquisition targets on the market. A few of those deals did get done. Many of them did not get done, which we would chalk up to the seller wanting a peak multiple on peak earnings and just had two lofty expectations. Now for a lot of those candidates, similar to us, earnings are flat to down. And usually their expectations, it takes a few quarters for them to reset. The memory of that high point is still really fresh. I would say it's... the gap between bid and ask is starting to narrow. You know, not enough in our view, and we're pretty value-oriented. We have the luxury of not needing to do anything at all. We're looking at things all the time, we're in the market all the time. We've benefited from looking at things. We've learned a lot from doing that. Even if we never do another acquisition, we benefit from being in the market and looking at things and just staying in touch with people who we think might wanna sell at some point. Great. Thank you very much. Good questions. Thank you, Marc. Thank you. The next question comes from Gabe Sanchez, a private investor. Morning. Hi, Jeff. Thank you for taking the question. RPO is a fragmented industry with few barriers to entry. While I recognize that there's room for numerous players, I'm still curious how you think about long-term survivability and Hudson's competitive advantage. I know you all focus a lot on reducing corporate costs. I'm wondering if you're looking to be the low-cost operator or if you would argue that there's a specialized or unique service offering at Hudson. Yeah. No. Really good question. You know, I would say our specialty is our big company capability, but small company service level and feel. We get rated really highly in the industry on our service level and our value proposition. We really do well. Our sweet spot is clients that hire 500 to 10,000 people a year. Somewhere in that zone is our sweet spot, and most of our clients are in that range. If it's a client that hires a lot more than that, we might not be such a great fit. You know, RPO is hard to break into. You know, there are some boutique-y firms out there that specialize in a geography or maybe they specialize in an industry. I think there will always be a place for small boutique firms that have that kind of specialty, but they tend to have a hard time breaking out of that geography or that sector. A lot of the ones that we've talked to and looked at, you know, even if we don't end up looking at them from an acquisition point of view, we develop a relationship with them. We had an example recently where a smaller RPO that's a regional player had a client that needed help expanding globally. This smaller RPO provider isn't really set up. We're gonna partner with them and service the client. We're looking into servicing the client together as a team, where they would focus on what they do best, which is that particular region, and we would focus on all of the international roles. You know, there are some big global firms out there that are, you know, try to be all things to all people. They don't always have the service level that we have. I would say we also specialize in white-collar professional roles where talent is absolutely everything, and company has to get that right and has to find the right people and build the right team. The sectors that we're in line up well for that. I think there's, I think we're in a good space in the market. There's a lot of, I guess you'd call them medium-sized companies in that zone where they hire 500-10,000 people a year that we offer the best service and the best value proposition. Yeah, wonderful. Thank you for offering that thoughtful answer. I'm curious because acquisitions have been mentioned several times on this earnings call. Do you consider a particular hurdle rate when you're making these acquisitions? How likely do you think it is that we leverage the full net operating loss carryforward over the years in acquisitions? Yeah. Our number one bullet point on an acquisition is it accretive to the business and to us financially? So does it fill a hole in our portfolio? Can we do something more with it than they could do on their own? In other words, what's the industrial logic? Is it truly more valuable, owned, and managed by us than by someone else or just staying in independent? You know, it's a pretty high bar, and this is a people business, and so the culture has to fit. If we do all those things, I think the returns take care of themselves. You know, if I... If you force me to throw out a number, you know, I think any acquisition we do, we wanna look at it and say, you know, inside of Hudson, this is gonna be, you know, a 20% return on investment, and we're gonna be able to grow the size of the business over time. Awesome. Thank you. If I could just sneak in one last question. Given that 50% of sales were attributable to just 2 clients last year or in 2022, are you willing to share any insight at all regarding those two clients? Do you think that that high client concentration will persist, or do you expect to diversify the customer base over time? Thank you. It's the second one. As we grow, we think we're in an industry that is growing 15% a year on average. That doesn't mean every single year is exactly 15%. Some years will be less than that, some years will be higher than that. We think we're in a high growth industry, and we wanna grow at least as fast as the industry is growing. What you're referring to is a disclosure in our 10-K, and that disclosure is based on gross revenue, not net revenue. In the contracting business we do, we have a huge amount of revenue. Most of it is passthrough, and we make a very small margin on that. It's, you know, less concentrated if you look at it on a net revenue basis. Those larger clients are very long-term relationships, very, very sticky, very, interdependent. It's not something that keeps me up at night. I guess I'll put it that way. We don't have any major contracts coming up for renewal in the next year that certainly none that I'm worried about. Got it. Thanks so much, Jeff. Thank you. Once again, please press Star and then 1 if you would like to ask a question. If there is nothing more, I would like to return the floor to Jeff Eberwein for any closing comments. Well, thank you, operator, and thank you for your questions today. Very, very good questions. We appreciate you joining us. We appreciate your interest in the company, and feel free to contact us anytime by using the information in our press release or on our investor relations website, and we look forward to next quarter's update call. Have a good day, everybody. Thank you, and thank you for joining the Hudson Global First Quarter Conference Call. Today's call has been recorded and will be available on the investor section of our website, hudsonrpo.com.