Recruiter Company Updates

Recruiter.com Reports 43% Sequential Revenue Growth for the Third Quarter

Written by Miles Jennings | Nov 15, 2021

NEW YORK, NY / ACCESSWIRE / November 15, 2021 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) ("Recruiter.com"), a recruiting solutions platform, today announced its results of operations for the third quarter ended September 30, 2021. Recruiter.com's full quarterly results can be found here, on the filings page of its investor relations website at investors.recruiter.com and as filed with the SEC at www.sec.gov.

The Company will host a conference call and webcast on Monday, November 15, at 4:30 p.m. ET to discuss its financial results.

Register: https://audience.mysequire.com/webinar-view?webinar_id=d6087985-059f-418b-830a-051e69e2ebc4

To access the conference by phone:
Dial in: +1 253-215-8782
Meeting ID: 91842229626
Passcode: 496911

“We delivered a strong performance in our first full quarter as a Nasdaq-listed company, exceeding our 25% Sequential quarter-over-quarter growth targets with 43% sequential revenue growth in the third quarter,” said Evan Sohn, CEO of Recruiter.com. “We believe our continued focus on the organic growth of our technology-led recruiting solutions will scale with the positive margin economics necessary to lead us to profitability. In the first nine months of the year, our revenues grew 124% over the prior year, driven primarily by a dramatic increase in our on-demand recruiting solutions, the transformation of our business with subscription-based software, and key technology acquisitions that rounded out our product offerings. We believe we have great momentum as we head into the end of 2021, and we do not anticipate needing to either raise additional capital or acquire other businesses this year to continue this powerful trajectory.”

Third Quarter 2021 Financial Results

  • Revenue increased 43% from the second quarter of 2021 to $6.3 million; third-quarter revenue increased 314% over the third quarter of 2020. This increase was driven primarily by an increase in the Company’s Recruiter on Demand business and the introduction of Software Subscriptions.
  • Gross margins improved to 36.8% in the third quarter, up from 32.8% in the second quarter of 2021. The increase in gross margins reflects the shift in the Company’s sales mix to higher growth, higher margin operations.
  • Total stockholders’ equity increased to $18.6 million in the third quarter up from a stockholders’ deficit of $6.5 million at the end of the second quarter of 2021, reflecting primarily changes from the uplist offering.

Key Highlights: Q3 2021

  • Strengthened balance sheet with the closing of an upsized $12 Million Public Offering and Nasdaq listing and an additional $1.8 Million closing of underwriters' exercise of over-allotment options, both of which are listed before deducting fees and underwriting expenses.
  • Launched Amplify, an AI-powered solution for proactive candidate outreach, leveraging our AI software to search and market passive candidates, transforming job posting into an active talent identification and engagement process.
  • Improved the scoring engine of our AI software to find less obvious matches by creating custom machine learning models to examine companies and candidate profiles, analyzing millions of data points per search.
  • Launched Jobs.Recruiter.com, a new career community for recruiters and talent acquisition professionals, to support increased demand for Recruiters on Demand and to allow employers to market their recruiting roles through online listings.
  • Expanded AI Software index to include over 150 million profiles of potential candidates found on the Internet and other proprietary sources, empowering employers with the capacity to automate candidate campaigning and engagement to a massive network of talent profiles.
  • Appointed Xuan Smith as Chief Technology Officer, with over a decade of technology leadership roles at multiple startups, and Angela Copeland as Vice President of Marketing, with extensive experience in digital marketing, customer acquisition, and organizational strategy, along with an impressive background in the career space that includes over a decade of thought leadership, as a speaker, a nationally syndicated career columnist and an author.
  • Continued to develop Recruiter.com thought leadership in the recruiting and hiring space, appearing on popular broadcast and digital programs, such as CNBC and Yahoo Finance, as well as numerous business, HR, and recruiting industry podcasts.

Key Highlights: Since Q3 2021

  • Launched the "Enterprise Plan" for Recruiters on Demand, a program designed to help employers hire multiple full-time recruiters to respond to increasing customer demand for recruiting and talent acquisition capacity.
  • Released the results of our September 2021 Recruiter Index, which saw candidate sentiment increase for the first time since November 2020.
  • In October, CEO Evan Sohn delivered a keynote address on the "Changing World of Work" at the LD Micro Conference. Sohn also presented the Company at Benzinga's Small-Cap Conference in October.

“Compared to the second quarter of 2021, our highest margin segments, software subscriptions, and marketplace solutions grew 165% and 360%, respectively, while our largest revenue segment saw strong demand with Recruiters on Demand growing by over 91%,” said Miles Jennings, President, and COO of Recruiter.com. “This strong performance is expected to continue as we benefit from a series of supportive macro trends that provide significant tailwinds, including the continued reopening of the economy, the “Great Resignation,” a growing “job hopper” economy, and an overall growing demand for recruiters.”

“With a high backlog of demand, we have an incredible opportunity to scale operations, replicate our successes, and cross-sell customers as we concurrently increase our focus on driving new efficiencies across our organization,” added Sohn. “I believe we are now on a clear path to profitability in the near-term. We look forward to continuing our strong trajectory of organic revenue growth as macro conditions continue to improve and as more employers learn of our successful client outcomes. The foundation we have laid positions Recruiter.com as the go-to solution for solving dynamic and complex recruiting and hiring challenges. We look forward to growing into our incredible brand and unlocking its potential as a leader in a $120 Billion market.”

Conference Call Details:

The Company will host a conference call on Monday, November 15, 2021 at 4:30 pm. Eastern Time (ET) to discuss its financial results for the third quarter ended September 30, 2021, and provide additional business updates.

Date: Monday, November 15, 2021
Time: 4:30 PM Eastern Time

Register: https://audience.mysequire.com/webinar-view?webinar_id=d6087985-059f-418b-830a-051e69e2ebc4

To access the conference by phone:

Dial-in: +1 253-215-8782

Meeting ID: 91842229626

Passcode: 496911

About Recruiter.com Group, Inc.

Recruiter.com is a recruiting solutions platform that rapidly delivers the right talent to both small and large businesses. Recruiter.com provides on-tap talent solutions that flex with hiring needs with recruiting software and a network of on-demand recruiters. To learn more, visit https://www.recruiter.com.

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

Please follow social media channels for additional updates:

Company Contact:

Nicole Gallina

Corporate Communications

investors@recruiter.com

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 "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, 2020. 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.