Quarterly Revenue Increased to $7.1M, up 62% y/y 

NEW YORK, NY / ACCESSWIRE / August 15, 2022 / Recruiter.com Group, Inc.  (NASDAQ:RCRT)(NASDAQ:RCRTW) ("Recruiter.com"), a recruiting solutions platform, today  announced financial results for the second quarter of 2022, ended June 30, 2022. 

"Recruiter.com delivered a strong quarter, growing revenues and margins while reducing operating  expenses," said Evan Sohn, CEO of Recruiter.com. "Strong product market fit and solid hiring demand  helped grow revenues by 62% y/y to $7.1 million and achieve 3.5% organic revenue growth  sequentially." 

"A sustained shift toward our software and on-demand services enabled our gross profit to more than  double y/y to $2.9 million and expand our gross margin to 41.2%. During the quarter, we also focused  on delivering operating efficiency, reducing our adjusted EBITDA loss to $397 thousand, a 70%  sequential improvement. We are excited by the growth opportunities ahead of us and expect to cross the  breakeven mark for positive adjusted EBIDTA before year-end." 

Recent Highlights 

• Revenue for the second quarter of 2022 totaled $7.1 million, an increase of $2.7 million or 62%,  compared to revenue of $4.4 million in the second quarter of 2021. Revenue growth was primarily driven by a 161% increase in the Recruiters on Demand business and continued growth in Software Subscriptions, which launched in 2021. 
• Gross profit for the second quarter of 2022 was $2.9 million, a 107% increase compared to $1.4  million gross profit in the comparable period of 2021. The gross profit margin expanded to  41.2% compared to 32.8% a year ago. The increase reflects the continued shift in the Company's sales mix to its faster-growing and higher-margin businesses. 
• Announced advancements to Recruiter.com AI that keep employer needs top of mind. Upgrades include improved search capability, email outreach, and a new candidate tracker dashboard allowing employers to review each candidate's background in one integrated view. When paired  with the Recruiter.com Recruiters On Demand service, the solution delivers qualified and  engaged candidates that have been screened and are "ready to interview." 

Financial Results for the Second Quarter Ended June 30, 2022 

Revenue for the second quarter of 2022 totaled $7.1 million, an increase of $2.7 million or 61%,  compared to revenue of $4.4 million in the second quarter of 2021. 

Gross profit for the second quarter of 2022 was $2.9 million, a 107% increase compared to $1.4 million gross profit in the comparable period of 2021. The gross profit margin expanded to 41.2% compared to  32.8% a year ago. The increase reflects the continued shift in the Company's sales mix to its faster-growing and higher-margin businesses. 

Total operating expenses were $5.3 million, an increase of 36% compared to $3.9 million for the second quarter of 2021. The increase was primarily due to higher sales and marketing, product development, general and administrative expense, and higher amortization of intangibles of $917,000 compared to  $675,000 in the year-ago period. 

Recruiter.com had a net loss of $1.2 million in the second quarter of 2022 compared to net income of  $3.5 million in the second quarter of 2021. The net loss in the second quarter of 2022 included non-cash depreciation and amortization expense of $917,000, bad debt expense of $345,000, and equity-based compensation expense of $669,000. 

Liquidity and Capital Resources 

On June 30, 2022, Recruiter.com had $1.7 million in cash and cash equivalents and accounts receivable,  net, of $4.3 million. There were 14,915,682 common shares outstanding at quarter-end. 

Conference Call Details 

Date: Monday, August 15^th 

Time: 4:30 pm ET / / 1:30 pm PT 

Register at: https://www.webcaster4.com/Webcast/Page/2765/46178 

About Recruiter.com Group, Inc. 

Recruiter.com is an on-demand recruiting platform providing flexible talent acquisition solutions that  scale from startups to the Fortune 100. With an on-tap network of thousands of recruiting professionals,  advanced artificial intelligence sourcing software, and recruitment marketing automation, Recruiter.com  helps businesses solve today's complex hiring challenges. 

For investor information, visit https://investors.recruiter.com 

Please follow social media channels for additional updates: 

• LinkedIn Recruiter Network Group: https://www.linkedin.com/groups/42370/
• • LinkedIn Company Page: https://www.linkedin.com/company/1240434
• Twitter Company Page: https://twitter.com/recruiterdotcom
• Facebook Company Page: https://www.facebook.com/RecruiterDotCom

Cautionary Note Regarding Forward-Looking Statements: 

This press release contains forward-looking statements within the meaning of the Private Securities  Litigation Reform Act of 1995. The words "predict," "forecast," "believe," "may," "estimate,"  "continue," "anticipates," "intend," "should," "plan," "could," "target," "potential," "is likely," "will,"  "expect" and similar expressions, as they relate to us, are intended to identify forward-looking  statements. We have based these forward-looking statements primarily on our current expectations and  projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, and financial needs. Important factors that could cause actual  results to differ from those in the forward-looking statements include continued demand for professional  hiring, the accuracy of the Recruiter Index® survey, the impact of the COVID-19 pandemic on the job  market and the economy as virus levels are again rising in many states, and the Risk Factors contained  within our filings with the Securities and Exchange Commission, including our Annual Report on Form  10-K for the year ended December 31, 2021. Any forward-looking statement made by us herein speaks  only as of the date on which it is made. Factors or events that could cause our actual results to differ may  emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation  to update any forward-looking statements publicly, whether as a result of new information, future  developments, or otherwise, except as may be required by law. 

Company Contact: 

Nicole Gallina 

Corporate Communications 

investors@recruiter.com 

-Tables Follow 

SOURCE: Recruiter.com Group, Inc.