SEGMENT AND GEOGRAPHIC DATA

3 Months Ended

Mar. 31, 2021

Segment Reporting

The Company operates in three reportable segments: the Hudson regional businesses of Americas, Asia Pacific, and Europe. Corporate expenses are reported separately from the three reportable segments and pertain to certain functions, such as executive management, corporate governance, investor relations, legal, accounting, tax, and treasury. A portion of these expenses are attributed to the reportable segments for providing the above services to them, and have been allocated to the

segments as management service expenses, and are included in the segments’ non-operating other income (expense). Segment information is presented in accordance with ASC 280, “Segment Reporting.” This standard is based on a management approach that requires segmentation based upon the Company’s internal organization and disclosure of revenue and certain expenses based upon internal accounting methods. The Company’s financial reporting systems present various data for management to run the business, including internal profit and loss statements prepared on a basis not consistent with U.S. GAAP. Accounts receivable and long-lived assets are the only significant asset separated by segment for internal reporting purposes.


	Americas		Asia Pacific		Europe		Corporate		Total
For The Three Months Ended March 31, 2021
Revenue, from external customers	$	4,561	$	25,340	$	4,560	$	—	$	34,461
Inter-segment revenue	—		—		—		—		—
Total revenue	$	4,561	$	25,340	$	4,560	$	—	$	34,461
Adjusted net revenue, from external customers (a)	$	4,209	$	5,758	$	2,751	$	—	$	12,718
Inter-segment adjusted net revenue	—		—		—		—		—
Total adjusted net revenue	$	4,209	$	5,758	$	2,751	$	—	$	12,718



EBITDA (loss) (b)	$	(278)	$	762	$	70	$	(479)	$	75
Depreciation and amortization	(86)		(14)		(9)		(1)		(110)
Intercompany interest (expense) income, net	—		(85)		—		85		—
Interest income, net	—		1		—		9		10
(Loss) income before income taxes	$	(364)	$	664	$	61	$	(386)	$	(25)
Provision for (benefit from) income taxes	$	9	$	194	$	17	$	(42)	$	178


















As of March 31, 2021
Accounts receivable, net	$	3,456	$	9,883	$	3,771	$	8	$	17,118
Long-lived assets, net of accumulated depreciation and amortization (b)	$	3,432	$	63	$	34	$	4	$	3,533
Total assets	$	8,916	$	16,478	$	8,132	$	13,455	$	46,981


	Americas		Asia Pacific		Europe		Corporate			Inter- Segment Elimination		Total
For The Three Months Ended March 31, 2020
Revenue, from external customers	$	3,188	$	16,951	$	3,992	$	—		$	—	$	24,131
Inter-segment revenue	—		6		—		—			(6)		—
Total revenue	$	3,188	$	16,957	$	3,992	$	—		$	(6)	$	24,131
Adjusted net revenue, from external customers (a)	$	2,860	$	4,511	$	2,427	$	—		$	—	$	9,798
Inter-segment adjusted net revenue	—		6		(6)		—		0	—		—
Total adjusted net revenue	$	2,860	$	4,517	$	2,421	$	—		$	—	$	9,798



EBITDA (loss) (b)	$	(60)	$	337	$	63	$	(799)		$	—	$	(459)
Depreciation and amortization	(5)		(12)		(6)		(1)			—		(24)
Intercompany interest (expense) income, net	—		(86)		—		86			—		—
Interest income, net	—		—		—		79			—		79
(Loss) income before income taxes	$	(65)	$	239	$	57	$	(635)		$	—	$	(404)
Provision for (benefit from) income taxes	$	9	$	64	$	10	$	24		$	—	$	107


















As of March 31, 2020
Accounts receivable, net	$	2,857	$	7,172	$	2,715	$	34		$	—	$	12,778
Long-lived assets, net of accumulated depreciation and amortization (b)	$	29	$	90	$	35	$	10		$	—	$	164
Total assets	$	3,998	$	11,568	$	6,234	$	19,512		$	—	$	41,312

(a)Adjusted net revenue is net of the Direct contracting costs and reimbursed expenses caption on the Condensed Consolidated Statements of Operations. Direct contracting costs and reimbursed expenses include the direct staffing costs of salaries, payroll taxes, employee benefits, travel expenses, and insurance costs for the Company’s contractors and reimbursed out-of-pocket expenses and other direct costs. The region where services are provided, the mix of RPO recruitment and contracting, and the functional nature of the staffing services provided can affect operating income and EBITDA. The salaries, commissions, payroll taxes, and employee benefits related to recruitment professionals are included under the caption “Salaries and related” in the Consolidated Statements of Operations.

(b)SEC Regulation S-K Item 229.10(e)1(ii)(A) defines EBITDA as earnings before interest, taxes, depreciation and amortization. EBITDA is presented to provide additional information to investors about the Company's operations on a basis consistent with the measures that the Company uses to manage its operations and evaluate its performance. Management also uses this measurement to evaluate working capital requirements. EBITDA should not be considered in isolation or as a substitute for operating income and net income prepared in accordance with U.S. GAAP or as a measure of the Company's profitability.

Geographic Data Reporting

A summary of revenues for the three months ended March 31, 2021 and 2020 and net assets by geographic area as of March 31, 2021 and 2020, were as follows:


	Australia		United States		United Kingdom		Other		Total
For The Three Months Ended March 31, 2021
Revenue (a)	$	23,474	$	4,248	$	3,871	$	2,868	$	34,461
For The Three Months Ended March 31, 2020
Revenue (a)	$	15,031	$	2,873	$	3,452	$	2,775	$	24,131




As of March 31, 2021
Long-lived assets, net of accumulated depreciation and amortization (b)	$	29	$	3,436	$	34	$	34	$	3,533
Net assets	$	6,106	$	18,612	$	2,684	$	6,749	$	34,151
As of March 31, 2020
Long-lived assets, net of accumulated depreciation and amortization (b)	$	30	$	39	$	35	$	60	$	164
Net assets	$	3,308	$	21,185	$	2,159	$	5,978	$	32,630

(a) Revenue by geographic region disclosed above is net of any inter-segment revenue and, therefore, represents only revenue from external customers according to the location of the operating subsidiary.

(b) Comprised of property and equipment, intangible assets and goodwill, net of accumulated depreciation and amortization.