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."
- 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 15th
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
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- Twitter Company Page: https://twitter.com/recruiterdotcom
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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.
SOURCE: Recruiter.com Group, Inc.