Revenue Driven by Recruiters-on-Demand Growth of 339% and Introduction of New Software Product in 2021
NEW YORK, NY / ACCESSWIRE / May 16, 2022 / Recruiter.com Group, Inc. (NASDAQ:RCRT) (NASDAQ:RCRTW) ("Recruiter.com"), a recruiting solutions platform, today announced the Company's financial results for the first quarter ending March 31, 2022.
Evan Sohn, CEO of Recruiter.com, commented, "Recruiter.com began the year on solid footing. In the first quarter, we strengthened our platform and solidified our gains from the strategic acquisitions that we completed last year. We're leveraging the proprietary AI that we acquired to remain ahead of emerging trends as "work from anywhere" morphs into "hire from anywhere," as anticipated. To meet those growing market needs, we are exploring new partnerships and establishing additional career communities, like the new cryptocurrency career community platform that we launched in the first quarter. We recently signed a new factoring agreement to support our growth that will provide us with non-dilutive capital up to $3 million, or 85% of our eligible receivables."
"In the first quarter, total revenue increased 117% to $6.9 million, and gross profit increased 200% to $2.7 million from the first quarter of 2021. The ongoing mix shift to faster-growing, higher-margin segments drove Recruiters-on-Demand revenue to a year-over-year increase of 339%, and it now accounts for 61% of revenue compared to 30% in the same period last year. Software Subscriptions contributed $0.7 million in revenue, or 10% of total revenue, after launching in mid-2021. The solid start to the year gives us confidence in projecting that the Company should hit EBITDA breakeven later this year during the fourth quarter as we grow to meet market demand with a stronger software platform and improved delivery operations," concluded Mr. Sohn.
- Revenue for the first quarter ended March 31, 2022, increased 117% to $6.9 million, compared to $3.2 million in the first quarter of 2021. Revenue growth was primarily driven by a 339% increase in the Recruiters on Demand business and continued growth in Software Subscriptions, which launched in 2021.
- Gross profit increased 200% to $2.7 million, or 39.2% of total revenue, compared to gross profit of $0.9 million, or 28.7% of total revenue, in the first quarter of 2021. The increase reflects the shift in the sales mix to faster growing and higher margin business and product lines.
- Signed a $3 million Accounts Receivable-backed factoring agreement to support growth from Bay View Funding, a subsidiary of Heritage Bank of Commerce, a premier community business bank in the heart of Silicon Valley. This non-dilutive capital accelerates monetization of the expanding receivables and will provide capital in an amount equal to 85% of Recruiter.com's gross eligible receivables.
Financial Results for the First Quarter Ended March 31, 2022
Revenue for the first quarter of 2022 totaled $6.9 million, a 117% increase compared to $3.2 million in revenue in the first quarter of 2021. This growth was primarily driven by significant changes in the revenue mix as the Company's focus shifted to its higher-margin, technology-oriented business.
Gross profit for the first quarter of 2022 was $2.7 million, a 200% increase compared to $0.9 million gross profit in the comparable period of 2021. The gross profit margin expanded to 39.2% compared to 28.7% a year ago. The increase reflects the shift in the sales mix to faster growing and higher margin business.
Total operating expenses were $6.8 million compared to $2.8 million for the first quarter of 2021, increasing 139%. The increase was primarily due to higher sales and marketing, product development, general and administrative expense, and higher amortization of intangibles of $1.0 million compared to $159,000 in the year-ago period.
Recruiter.com had a net loss of $4.2 million in the first quarter of 2022 compared to a net loss of $6.3 million during the corresponding three-month period in 2021. The net loss in the first quarter of 2022 includes non-cash items of depreciation and amortization expense of $1.0 million, bad debt expense of $19 thousand, and equity-based compensation expense of $1.7 million.
Liquidity and Capital Resources
On March 31, 2022, Recruiter.com had $0.9 million in cash, cash equivalents, and marketable securities and accounts receivable of $4.8 million. There were 14,784,821 common shares outstanding at quarter-end.
Conference Call Details
Date: Monday, May 16, 2022
Time: 4:30 pm Eastern Time
To access the conference by phone:
Dial-in: +1 (253) 215-8782
Meeting ID: 97183963905
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
- 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.
SOURCE: Recruiter.com Group, Inc.
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Recruiter.com Group, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
For the Three Months ended March 31, 2022 and 2021