Recruiter.com Announces Fourth Quarter and Full Year 2021 Results
Recruiter.com reported a remarkable 160% increase in full-year 2021 revenue, totaling $22.2 million compared to $8.5 million in 2020. The fourth-quarter revenue surged to $8.4 million, driven by substantial growth in on-demand recruiting and software subscriptions. Despite the positive revenue growth, the company recorded a net loss of $16.3 million for the year. Operating expenses rose significantly to $24.2 million.
The company aims to enhance profitability by focusing on technology-led recruiting solutions in 2022.
- Full-year 2021 revenue increased to $22.2 million from $8.5 million in 2020, up 160%.
- Q4 2021 revenue reached $8.4 million, compared to $2.3 million in Q4 2020.
- On-demand recruiting revenue grew to $5.2 million in Q4 2021.
- Software subscriptions generated $1.4 million in revenue for 2021.
- Net loss for 2021 was $16.3 million, slightly improved from a $17.0 million loss in 2020.
- Operating expenses rose to $24.2 million, a 166% increase from the prior year.
- Full Year 2021 Revenue Increased over
160% Y/Y - Conference Call Today at 4:30 pm ET
NEW YORK, NY / ACCESSWIRE / March 31, 2022 / Recruiter.com Group, Inc. (NASDAQ:RCRT) (NASDAQ:RCRTW) ("Recruiter.com"), a recruiting solutions platform, today announced its financial results for the fourth quarter and full year ending December 31, 2021.
Evan Sohn, CEO of Recruiter.com, commented, "2021 was an exciting and transformative year for Recruiter.com, which included our initial Nasdaq listing, ten-fold growth in our on-demand recruiting solution through a mix of organic growth and acquisitions, and the introduction of our software subscriptions. We ended the year on a high note, with fourth-quarter revenue of
"In 2022, we will remain focused on driving organic growth of our technology-led recruiting solutions as we push toward profitability on the strength of the foundation that we built this year. We believe that the shifts in our revenue mix toward on-demand and software subscription services position Recruiter.com well in a competitive market," continued Mr. Sohn.
Recent Highlights
- Revenue for the fiscal year ended December 31, 2021, totaled
$22.2 million compared to$8.5 million for fiscal year 2020, an increase of160% year-over-year, driven by favorable market conditions for recruiting and talent solution providers, acquisitions that contributed substantially to On Demand and Marketplace revenue categories, and the launch of Recruiter.com's software solution. - Revenue for the fourth quarter ended December 31, 2021, increased to
$8.4 million , compared to$2.3 million in the fourth quarter of 2020. Revenue in the fourth quarter of 2021 increased by$2.1 million from the third quarter, due to a51% increase in the Company's Recruiter on Demand business and64% growth in Software Subscriptions. - Released recruiting predictions for 2022, which include remote or hybrid work becoming the new normal, work-from-anywhere morphing into hire-from-anywhere, a tight job market, and diversity continuing to be a focus.
- Announced the "Enterprise Plan" for Recruiters on Demand. The "Enterprise Plan" is designed to help employers hire ten or more full-time talent acquisition professionals.
- Mediabistro, a Recruiter.com career community focused on media roles, was featured as one of the best career sites to post jobs online by the NY Post.
Financial Results for the Fourth Quarter Ended December 31, 2021
Revenue for the 2021 fourth quarter totaled
Gross profit for the fourth quarter ended December 31, 2021, totaled
Operating expenses for the fourth quarter of 2021 totaled
Financial Results for the Full Year Ended December 31, 2021
Revenue for the full year ended December 31, 2021, totaled
The cost of revenue for the full year ended December 31, 2021, totaled
Gross profit totaled
Liquidity and Capital Resources
On December 31, 2021, Recruiter.com had
Conference Call Details
Date: Thursday, March 31, 2022
Time: 4:30 pm Eastern Time
Register: https://audience.mysequire.com/webinar-view?webinar_id=75673272-cf8a-42b0-8375-4a6f2ee5c590
To access the conference by phone:
Dial-in: +1 (253) 215-8782
Meeting ID: 93993424428
Passcode: 044981
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 -
Recruiter.com Group, Inc. and Subsidiaries
Consolidated Balance Sheets
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 2,584,062 | $ | 99,906 | ||||
Accounts receivable, net of allowance for doubtful accounts of | 5,650,668 | 942,842 | ||||||
Accounts receivable - related parties | 49,033 | 41,124 | ||||||
Prepaid expenses and other current assets | 546,079 | 167,045 | ||||||
Investments - marketable securities | - | 1,424 | ||||||
Total current assets | 8,829,842 | 1,252,341 | ||||||
Property and equipment, net of accumulated depreciation of | 481 | 1,635 | ||||||
Right of use asset - related party | - | 140,642 | ||||||
Intangible assets, net | 9,741,832 | 795,864 | ||||||
Goodwill | 7,718,842 | 3,517,315 | ||||||
Total assets | $ | 26,290,997 | $ | 5,707,797 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,121,510 | $ | 616,421 | ||||
Accounts payable - related parties | 163,672 | 779,928 | ||||||
Accrued expenses | 1,285,339 | 423,237 | ||||||
Accrued expenses - related party | - | 8,000 | ||||||
Accrued compensation | 1,551,162 | 617,067 | ||||||
Accrued compensation - related party | - | 122,500 | ||||||
Accrued interest | 19,726 | 60,404 | ||||||
Contingent consideration for acquisitions | 578,591 | - | ||||||
Liability on sale of future revenues, net of discount of | - | 8,185 | ||||||
Deferred payroll taxes | 81,728 | 159,032 | ||||||
Other liabilities | 17,333 | 14,493 | ||||||
Loans payable - current portion | 1,712,387 | 28,249 | ||||||
Convertible notes payable, net of unamortized discount and costs of | - | 1,905,826 | ||||||
Refundable deposit on preferred stock purchase | 285,000 | 285,000 | ||||||
Warrant derivative liability | - | 11,537,997 | ||||||
Lease liability - current portion - related party | - | 73,378 | ||||||
Deferred revenue | 746,449 | 51,537 | ||||||
Total current liabilities | 7,562,897 | 16,691,254 | ||||||
Lease liability - long term portion - related party | - | 67,264 | ||||||
Loans payable - long term portion | 2,637,875 | 73,541 | ||||||
Total liabilities | 10,200,772 | 16,832,059 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Stockholders' Equity (Deficit): | ||||||||
Preferred stock, Series D, | - | 54 | ||||||
Preferred stock, Series E, | 9 | 74 | ||||||
Preferred stock, Series F, | - | 7 | ||||||
Common stock, | 1,457 | 220 | ||||||
Shares to be issued, 587,945 and 0 shares as of December 31, 2021 and 2020, respectively | 59 | - | ||||||
Additional paid-in capital | 66,948,340 | 23,400,408 | ||||||
Accumulated deficit | (50,859,640 | ) | (34,525,025 | ) | ||||
Total stockholders' equity (deficit) | 16,090,225 | (11,124,262 | ) | |||||
Total liabilities and stockholders' (deficit) | $ | 26,290,997 | $ | 5,707,797 | ||||
Recruiter.com Group, Inc. and Subsidiaries
Consolidated Statements of Operations
| Year | Year | |||||||
| Ended | Ended | |||||||
December 31, 2021 | December 31, 2020 | |||||||
Revenue (including related party revenue of | $ | 22,184,112 | $ | 8,502,892 | ||||
Cost of revenue (including related party costs of | 14,909,389 | 6,138,363 | ||||||
Gross Profit | 7,274,723 | 2,364,529 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 472,213 | 82,904 | ||||||
Product development (including related party expense of | 1,152,433 | 299,512 | ||||||
Amortization of intangibles | 2,741,008 | 686,691 | ||||||
Impairment expense | 2,530,325 | - | ||||||
General and administrative (including share-based compensation expense of | 17,323,695 | 8,033,685 | ||||||
Total operating expenses | 24,219,674 | 9,102,792 | ||||||
Loss from Operations | (16,944,951 | ) | (6,738,263 | ) | ||||
Other income (expenses): | ||||||||
Interest expense (including related party interest expense of | (3,137,050 | ) | (2,022,113 | ) | ||||
Initial derivative expense | (3,585,983 | ) | (3,340,554 | ) | ||||
Change in derivative value due to anti-dilution adjustments | - | (2,642,175 | ) | |||||
Change in fair value of derivative liability | 7,315,580 | (2,658,261 | ) | |||||
Forgiveness of debt income | 24,925 | 376,177 | ||||||
Grant income | 3,382 | 10,768 | ||||||
Net recognized loss on marketable securities | (1,424 | ) | (22,416 | ) | ||||
Other expense | (9,094 | ) | - | |||||
Total other income (expenses) | 610,336 | (10,298,574 | ) | |||||
Loss before income taxes | (16,334,615 | ) | (17,036,837 | ) | ||||
Provision for income taxes | ||||||||
Net Loss | $ | (16,334,615 | ) | $ | (17,036,837 | ) | ||
Net loss per common share - basic and diluted | $ | (1.90 | ) | $ | (8.75 | ) | ||
Weighted average common shares - basic and diluted | 8,601,159 | 1,949,463 | ||||||
Recruiter.com Group, Inc. and Subsidiaries
Consolidated Statements Of Cash Flows
| Year Ended | Year Ended | |||||||
| December 31, | December 31, | |||||||
| 2021 | 2020 | |||||||
Cash Flows From Operating Activities | ||||||||
Net loss | $ | (16,334,615 | ) | $ | (17,036,837 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization expense | 2,742,162 | 687,845 | ||||||
Bad debt expense | 927,847 | 12,000 | ||||||
Gain on forgiveness of debt | (24,925 | ) | (376,177 | ) | ||||
Equity based compensation expense | 5,400,975 | 3,212,772 | ||||||
Recognized loss on marketable securities | 1,424 | 22,416 | ||||||
Marketable securities distributed as compensation | - | 3,917 | ||||||
Expenses paid through financings | - | 32,500 | ||||||
Loan principal paid directly through grant | (2,992 | ) | (8,853 | ) | ||||
Amortization of debt discount and debt costs | 2,503,160 | 1,840,745 | ||||||
Modification of derivative | 12,624 | - | ||||||
Initial derivative expense | 3,585,983 | 3,340,554 | ||||||
Change in derivative value due to anti-dilution adjustments | - | 2,642,175 | ||||||
Change in fair value of derivative liability | (7,315,580 | ) | 2,658,261 | |||||
Impairment expense | 2,530,325 | - | ||||||
Change in fair value of earn-out liability | 35,294 | - | ||||||
Changes in assets and liabilities: | ||||||||
Increase in accounts receivable | (4,690,668 | ) | (94,767 | ) | ||||
Increase in accounts receivable - related parties | (7,909 | ) | (36,784 | ) | ||||
Increase in prepaid expenses and other current assets | (74,742 | ) | (68,542 | ) | ||||
Increase in accounts payable and accrued liabilities | 1,991,446 | 626,895 | ||||||
Decrease in accounts payable and accrued liabilities - related parties | (746,756 | ) | (63,863 | ) | ||||
Decrease in deferred payroll taxes | (77,304 | ) | - | |||||
Increase in other liabilities | 2,840 | 173,525 | ||||||
Increase (decrease) in deferred revenue | 525,767 | (93,937 | ) | |||||
Net cash used in operating activities | (9,015,644 | ) | (2,526,155 | ) | ||||
Cash Flows From Investing Activities: | ||||||||
Proceeds from sale of marketable securities | - | 17,009 | ||||||
Cash paid for acquisitions, net of cash acquired | (2,238,958 | ) | - | |||||
Cash paid for customer contracts | - | (50,000 | ) | |||||
Net cash used in investing activities | (2,238,958 | ) | (32,991 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Proceeds from loans | 250,000 | 398,545 | ||||||
Proceeds from convertible notes | 2,153,200 | 2,476,000 | ||||||
Deferred offering costs | (78,038 | ) | - | |||||
Payments of loans | (723,611 | ) | (17,907 | ) | ||||
Advances on receivables | - | 180,778 | ||||||
Repayments of advances on receivables | - | (180,778 | ) | |||||
Repayments of sale of future revenues | (10,904 | ) | (528,838 | ) | ||||
Proceeds from common shares and warrants | 13,800,000 | - | ||||||
Offering Costs | (1,651,889 | ) | - | |||||
Proceeds from sale of preferred stock | - | 25,000 | ||||||
Net cash provided by financing activities | 13,738,758 | 2,352,800 | ||||||
Net increase (decrease) in cash | 2,484,156 | (206,346 | ) | |||||
Cash, beginning of year | 99,906 | 306,252 | ||||||
Cash, end of year | $ | 2,584,062 | $ | 99,906 | ||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the year for interest | $ | 240,980 | $ | 235,813 | ||||
Cash paid during the year for income taxes | $ | - | $ | - | ||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||
Original issue discount deducted from convertible note proceeds | $ | 342,554 | $ | 328,125 | ||||
Debt costs deducted from convertible note proceeds | $ | 334,800 | $ | 366,500 | ||||
Notes and accrued interest converted to common stock | $ | 4,557,718 | $ | 96,000 | ||||
Notes payable and accrued interest exchanged for debentures | $ | 252,430 | $ | - | ||||
Accounts payable paid with common stock | $ | 140,000 | $ | - | ||||
Accrued compensation paid with common stock | $ | 16,425 | $ | - | ||||
Warrant derivative liability extinguished | $ | 10,182,476 | $ | - | ||||
Write off of right-of-use asset and lease liability | $ | 103,953 | $ | - | ||||
Deferred offering costs charged to additional paid-in capital | $ | 78,038 | $ | - | ||||
Common stock issued/to be issued for asset acquisitions | $ | 11,340,284 | $ | - | ||||
Earn-out liability consideration for acquisition | $ | 543,297 | $ | - | ||||
Loans issued as consideration for acquisitions | $ | 4,750,000 | $ | - | ||||
Shares issued for Upsider earn-out liability | $ | 1,394,768 | $ | - | ||||
Preferred stock issued for accrued penalties | $ | - | $ | 1,929,516 | ||||
Warrant derivative liability at inception | $ | 2,374,076 | $ | 5,625,519 | ||||
Prepayment of shares issued for services | $ | 237,382 | $ | - | ||||
SOURCE: Recruiter.com Group, Inc.
View source version on accesswire.com:
https://www.accesswire.com/695183/Recruitercom-Announces-Fourth-Quarter-and-Full-Year-2021-Results
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