Revenue for Q2 2019 totalled $1.5 million, an increase of 424% year-over-year
Dear Fellow Shareholders,
We are proud to introduce our company as Recruiter.com Group, Inc. (RCRT), the expert network platform for recruiters, and share the exciting highlights of our first quarter as a newly combined, publicly-traded technology company. As we go forward, we are committed to providing high-quality, transparent communications to our shareholders and look forward to your participation in our journey as we build a world-class platform business.
To build value as a company, our consistent aim is to grow and improve our key metrics and financial position while we innovate and differentiate our company through Recruiter.com’s three unique company qualities (People, Platform, and Power). This past quarter, we established our key metrics, improved our financials, and brought positive changes to each of our three unique company qualities.
Q2 2019 Achievements
- Aligned Recruiter.com’s public presence with its corporate brand by renaming the company Recruiter.com Group, Inc., and changing the stock trading symbol to RCRT;
- Entered into several business partnerships, including with Censia, Talent Inc., and Pocket Recruiter, among others;
- Grew our network, the number of independent recruiter users increased 8.1% sequentially to 10,042 in Q2 of 2019;
- Rolled out several platform upgrades, including Recruiter Badging and Team Collaboration;
- Brought on a dream team of advisors with domain experience in artificial intelligence, recruitment operations, finance, and legal;
- Qualified for admission of our common stock to trading on the OTCQB Venture Market;
- Raised over $500,000 in new investment through sales of Series D convertible preferred stock;
- Achieved record revenue as a result of our March 31st acquisition of Genesys Talent, LLC; and
- Completed two-year financial audits of acquired businesses (Recruiter.com, Inc., and Genesys Talent, LLC).
Summary of Financial Results for Q2 2019_
|Financial Results||Three months ended June 30, 2019||Three months ended June 30, 2018||% change|
|Income (loss) from Operations
(including share-based compensation expense of $1,481,322 and $62,617, respectively)
|Cash and Cash Equivalents||$893,776||$316,180||183%|
We have defined new key metrics for our business, which we will consistently track and communicate to our shareholders.
- “Network Growth” The growth of the number of our independent recruiter users is a significant differentiator for our platform. We increased the total size of the recruiter network by over 8% this quarter by approving pending recruiters in the USA and Canada and beginning trials of advertising our recruitment training program.
- “Jobs Filled” The success of our work with employers is paramount. This metric tracks our successful full-time and contract placements with employers. The Jobs Filled number is a simple unique metric, new for this quarter, that we designed to measure our success. It includes all contract headcount from each month, plus full-time hires.
- “Platform Fees” This metric tracks the total available placement fees, in absolute dollars, available to our members through our platform during one date in time.
|3 Key Metrics||Q2’2019||Q1’2019||% change|
We added considerable value to our personnel in Q2 2019, in particular through the acquisition of certain assets of Genesys Talent, LLC. Rick Roberts, who is now the President of Recruiter.com Recruiting Solutions LLC, our wholly owned subsidiary, is a true veteran of the recruiting business and highly respected among partners, clients, and technology companies. Mr. Roberts will focus on building the sales and delivery model to ensure our clients receive excellent recruiting support. The addition of Mary Patrick, EVP of Program Delivery and an experienced Talent Delivery team brings deep recruiting expertise and client-focused operational excellence to the company. We also added new accounting and finance personnel, including Bob Scherne, our Controller and interim CFO, and Patty Weyman, in recruiting operations, who were key in the successful recent delivery of two years’ audited financials for the acquired businesses.
In addition to our new staff, we welcome several new senior advisors to the company, including:
- Deborah Leff, CTO of IBM AI and Data Science
- David Perla, former Chief Counsel of Monster.com
- Noam Ohring, Head of Recruiting for Bridgewater hedge fund
- Jay Goldberg, CEO of Seller’s Choice digital marketing agency
- John McGraw, SVP at Access Capital, Inc.
Additionally, Tim O’Rourke, COO of ICON Information Consultants, joined our Board of Directors, bringing a wealth of industry experience and business acumen.
We successfully rolled out many upgrades to the Job Market Platform centered around engagement, collaboration, and evaluation of our network members. Technology initiatives included Recruiter Badging and systematized communication, as well as various improvements for account management. The March 2019 acquisition also brought a new internal talent CRM into our workflows, along with the AI-talent matching from Genesys, which will be an ongoing competitive differentiator. During Q2 2019, we also spent time on the development of marketing automation, which should significantly enhance the scalability of our network member communications. In Q3 2019, we expect to work on further integrating our Platform and CRM, which will allow the Talent Delivery team to work seamlessly with our network members.
Looking forward to Q3, we also expect to focus on continuous improvements to the recruiter and employer user experience and tightly integrating our internal recruiting operations with independent recruiters on the platform. Larger initiatives include the addition of candidate sourcing capabilities for independent recruiters through our Censia AI partnership and a rewiring of the recruiter submission process to increase candidate submittals and automate resume management. We expect to finish 2019 deeply integrated with further new HR and payroll systems, which should develop and drive a new and significant source of jobs to the platform.
Power – Our Distribution and Marketing Channels
Recruiter.com’s ability to leverage exceptional scale with content and social media gives us the chance to reach more people faster than most companies. To help magnify this unique quality, we engaged two new outside service firms: Seller’s Choice, a digital marketing agency, and KCSA, which handles investor relations and press releases. One Q2 power category milestone that we passed is our achievement of 10,000 recruiters on the platform. This is an important psychological number of course, but one that will be vital to track and grow over time. We invite you to track the growth of our network members along with us through a publicly available page on Recruiter.com: https://www.recruiter.com/about.html and keep up with all updates at https://www.recruiter.com/investors.html.