Recruiter.com Announces Second Quarter 2021 Results

Rhea-AI Summary

Recruiter.com Group reported strong financial results for Q2 2021, achieving 38% quarter-over-quarter growth and an impressive 81% year-to-date revenue increase, totaling $4.4 million. The company's Recruiters on Demand service surged by 88% quarter-over-quarter. Net profit stood at $3.5 million, equating to $0.99 per share. Additionally, the company closed an upsized public offering yielding $12 million and acquired key technology assets. The company's leadership anticipates sustained demand for its recruiting solutions into the second half of 2021.

Positive

• 38% quarter-over-quarter revenue growth.
• 81% year-to-date revenue increase.
• Recruiters on Demand service grew 88% quarter-over-quarter.
• Net profit of $3.5 million or $0.99 per share.
• Completed $12 million upsized public offering.

Negative

• Adjusted EBITDA loss of $776K for the quarter.

38% quarter-over-quarter growth with year-to-date revenue up over 81%

Expects continued strong demand for its recruiting solutions throughout 2021

NEW YORK, NY / ACCESSWIRE / August 16, 2021 / Recruiter.com Group, Inc. (NASDAQ:RCRT, RCRTW) ("Recruiter.com," the "Company"), an on-demand recruiting solutions platform, today announced its results of operations for the second quarter ended June 30, 2021. Recruiter.com's full quarterly results can be found on the filings page of the 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 Wednesday, August 18^th, at 4:30 pm EST to discuss its financial results.

"In our first quarter as a Nasdaq listed company, Recruiter.com continued its rapid growth trajectory, with revenues rising 38% quarter-over-quarter and 81% year-to-date," said Evan Sohn, CEO of Recruiter.com. "We are excited to report that our on-demand recruiting service grew 88% quarter-over-quarter, showing clear market demand. We expect strong growth throughout the second half of 2021 and beyond, as we advance our mission of revolutionizing recruiting and talent acquisition into a rapid, on-demand service."

Second Quarter 2021 Financial Results

• Revenue increased 38% from the first quarter of 2021 to $4.4 million. This increase resulted primarily from a rise in Recruiters on Demand business and the introduction of Software Subscriptions.
• Net profit in the second quarter of 2021 was $3.5 million, or $.99 per share, which included $7.5 million in non-cash income. After adjusting for bad debt expense, the gain in fair value of derivatives and stock-based compensation, the adjusted EBITDA loss was $776K for the quarter.

Key Highlights: Q2 2021

• Recruiter.com Group, Inc. common stock (RCRT) and warrants (RCRTW) began trading on Nasdaq on June 30, 2021.
• Acquired OneWire, a leading SaaS-based financial services recruiting and sourcing platform
• Formed a partnership with WeWork, the global flexible workspace provider, to bring on-demand hiring services to the WeWork startup ecosystem
• Discussed the job market and the results of Recruiter Index®, Recruiter.com's proprietary survey of recruiter sentiment, on CNBC, Yahoo Finance, and leading industry podcasts and publications.

Key Highlights: Since Q2 2021

• Closed an upsized underwritten public offering of 2.4M units, each including one share of common stock and one warrant, at a price to the public of $5.00 per unit, for gross proceeds of $12M before deducting underwriting discounts and other expenses.
• Closed the sale of an additional 360,000 shares of common stock, pursuant to the exercise of the underwriter's over-allotment option, with gross proceeds of approximately $1.8M, before deducting underwriting discounts and other expenses.
• Acquired the technology division of Uncubed and Finalist, which brings to Recruiter.com proprietary job board creation technology and MediaBistro, a leading professional community for media, content, and creative professionals.
• Appointed Xuan Smith as Chief Technology Officer and Ashley Saddul to the position of Chief Web Officer

"With advanced Artificial Intelligence ("AI") technology, recruitment marketing software, and a network of now over 30,000 recruiters, Recruiter.com is at the forefront of a revolution in recruiting," said Miles Jennings, President and COO of Recruiter.com. "By delivering effective results for both high-growth startups and Fortune 100 clients inside a tight job market with high demand for specialized talent, Recruiter.com is positioned for exceptional growth."

Jennings continued, "One of the biggest challenges facing the re-opening of the economy is the shifting dynamics of the job market; an incredibly tight job market in highly skilled labor, a shift from in-person to remote work opening up the ‘work from anywhere' theme, the lack of lower hourly workers seeking to re-enter the job market, and the increasing voluntary employment churn resulting in the potential for a ‘great resignation' of employees. These challenges are being addressed head on through the Recruiter.com On Demand recruiting service, which we believe re-invents the recruiting industry, empowering companies large and small to extend their in-house hiring team with experienced freelance recruiters along with AI-driven candidate search and engagement tools. As our Recruiter On Demand solution saw a 88% quarter over quarter increase and with our new software subscriptions delivering over $175,000 in recurring revenue, we are confident in our ability to rapidly scale our business and continue to recruit talent faster."

Conference Call Details:

The Company will host a conference call on Wednesday, August 18, 2021 at 4:30 pm. Eastern Time (ET) to discuss its financial results for the second quarter ended June 30, 2021 and provide a business update.

Conference Call Details:

Date: Wednesday, August 18, 2021
Time: 4:30 PM Eastern Time
Toll-free Dial-in Number: 888-506-0062
International Dial-in Number: 973-528-0011
Conference ID: 402513
Participant Link: https://www.webcaster4.com/Webcast/Page/2765/42551

Recruiter.com Group, Inc.

Recruiter.com is an online hiring platform delivering on-demand recruiting technology and services to both large and small businesses. With AI and video technology, and the world's largest network of recruiters, Recruiter.com delivers on-tap recruiting that flexes with hiring needs. To learn more, visit https://www.recruiter.com. 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

Company Contact:

Evan Sohn
Recruiter.com Group, Inc.
info@recruiter.com
Phone: (855) 931-1500

Investor Relations:

Dave Gentry
RedChip Companies, Inc.
Phone: (407) 491-4498
dave@redchip.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 "forecasts" "believe," "may," "estimate," "continue," "anticipate," "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 publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as may be required by law.

Recruiter.com Group, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)

		Three Months Ended June 30, 2021				Three Months Ended June 30, 2020				Six Months Ended June 30, 2021				Six Months Ended June 30, 2020
Revenue (including related party revenue of $0, $7,020, $970 and $13,430, respectively)		$	4,380,894			$	1,853,414			$	7,545,439			$	4,166,537
Cost of revenue (including related party costs of $212,279, $298,172, $417,540 and $954,096, respectively)			2,946,084				1,418,242				5,200,994				3,169,438
Gross profit			1,434,810				435,172				2,344,445				997,099
Operating expenses:
Sales and marketing			75,006				15,068				132,549				40,311
Product development (including related party expense of $54,696, $57,401, $112,684 and $118,380, respectively)			75,004				57,401				145,664				140,494
Amortization of intangibles			675,095				159,173				834,268				318,346
General and administrative (including share based compensation expense of $1,112,834, $709,230, $1,615,241 and $1,650,202, respectively, and related party expenses of $106,149, $121,280, $232,781 and $244,198, respectively)			3,062,597				1,626,362				5,608,502				3,775,305
Total operating expenses			3,887,702				1,858,004				6,720,983				4,274,456
Loss from operations			(2,452,892	)			(1,422,832	)			(4,376,538	)			(3,277,357	)
Other income (expenses):
Interest expense (including related party interest expense of $18,193, $0, $30,466 and $0, respectively)			(1,592,822	)			(203,874	)			(3,020,410	)			(248,080	)
Initial derivative expense			-				(3,340,554	)			(3,585,983	)			(3,340,554	)
Change in derivative value due to anti-dilution adjustments			-				(2,642,175	)			-				(2,642,175	)
Change in fair value of derivative liability			7,574,750				(339,088	)			8,203,371				(904,176	)
Forgiveness of debt income			-				-				24,925				-
Grant income			-				7,262				3,382				7,262
Net recognized loss on marketable securities			(757	)			46				(534	)			(18,740	)
Total other income (expenses)			5,981,171				(6,518,383	)			1,624,751				(7,146,463	)
Income (loss) before income taxes			3,528,279				(7,941,215	)			(2,751,787	)			(10,423,820	)
Provision for income taxes			-				-				-				-
Net income (loss)			3,528,279				(7,941,215	)			(2,751,787	)			(10,423,820	)
Net income (loss) per common share - basic		$	0.99			$	(4.11	)		$	(0.89	)		$	(5.78	)
Net income (loss) per common share - diluted		$	(0.69	)		$	(4.11	)		$	(0.89	)		$	(5.78	)
Weighted average common shares - basic			3,560,745				1,933,812				3,091,146				1,803,358
Weighted average common shares - diluted			5,879,481				1,933,812				3,091,146				1,803,358

Recruiter.com Group, Inc.
Consolidated Balance Sheets

		June 30, 2021 unaudited				December 31, 2020
Assets
Current assets:
Cash		$	86,898			$	99,906
Accounts receivable, net of allowance for doubtful accounts of $80,176 and $33,000, respectively			2,916,391				942,842
Accounts receivable - related parties			46,726				41,124
Prepaid expenses and other current assets			353,374				167,045
Investments - marketable securities			890				1,424
Total current assets			3,404,279				1,252,341
Property and equipment, net of accumulated depreciation of $2,405 and $1,828, respectively			1,058				1,635
Right of use asset - related party			103,953				140,642
Deferred offering costs			473,896				-
Intangible assets, net			5,645,009				795,864
Goodwill			4,929,897				3,517,315
Total assets		$	14,558,092			$	5,707,797
Liabilities and Stockholders' (Deficit)
Current liabilities:
Accounts payable		$	1,168,155			$	616,421
Accounts payable - related parties			1,194,821				779,928
Accrued expenses			827,612				423,237
Accrued expenses - related party			9,647				8,000
Accrued compensation			1,192,888				617,067
Accrued compensation - related party			116,000				122,500
Accrued interest			376,272				60,404
Contingent consideration for acquisitions			2,000,118				-
Liability on sale of future revenues, net of discount of $0 and $2,719, respectively			-				8,185
Deferred payroll taxes			159,032				159,032
Other liabilities			14,493				14,493
Loans payable - current portion			30,653				28,249
Convertible notes payable, net of unamortized discount and costs of $1,683,662 and $1,205,699, respectively			4,154,697				1,905,826
Refundable deposit on preferred stock purchase			285,000				285,000
Warrant derivative liability			8,921,615				11,537,997
Lease liability - current portion - related party			73,378				73,378
Deferred revenue			476,920				51,537
Total current liabilities			21,001,301				16,691,254
Lease liability - long term portion - related party			30,575				67,264
Loans payable - long term portion			33,965				73,541
Total liabilities			21,065,841				16,832,059
Commitments and contingencies			-				-
Stockholders' (Deficit):
Preferred stock, 10,000,000 shares authorized, $0.0001 par value: undesignated: 7,013,600 shares authorized; no shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			-				-
Preferred stock, Series D, $0.0001 par value; 2,000,000 shares authorized; 376,275 and 527,795 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			39				54
Preferred stock, Series E, $0.0001 par value; 775,000 shares authorized; 731,845 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			74				74
Preferred stock, Series F, $0.0001 par value; 200,000 shares authorized; 46,847 and 64,382 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			5				7
Common stock, $0.0001 par value; 100,000,000 shares authorized; 3,765,739 and 2,203,009 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			377				220
Additional paid-in capital			30,768,568				23,400,408
Accumulated deficit			(37,276,812	)			(34,525,025	)
Total stockholders' (deficit)			(6,507,749	)			(11,124,262	)
Total liabilities and stockholders' (deficit)		$	14,558,092			$	5,707,797

Our management uses and relies on EBITDA and Adjusted EBITDA, which are non­GAAP financial measures. We believe that both management and shareholders benefit from referring to the following non­-GAAP financial measures in planning, forecasting, and analyzing future periods. Our management uses these non-­GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period­ to ­period comparison. Our management recognizes that the non-­GAAP financial measures have inherent limitations because of the described excluded items.

We define Adjusted EBITDA as earnings (or loss) from continuing operations before the items in the table below. Adjusted EBITDA is an important measure of our operating performance because it allows management, investors and analysts to evaluate and assess our core operating results from period­to­period after removing the impact of items of a non­ operational nature that affect comparability.

We have included a reconciliation of our non-­GAAP financial measures to the most comparable financial measure calculated in accordance with GAAP. We believe that providing the non-­GAAP financial measures, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non­GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules.

The following table presents a reconciliation of net loss to Adjusted EBITDA:

Recruiter.com Group, Inc.
Reconciliation of Net Loss to Adjusted Ebitda
(Unaudited)

		Three Months Ended June 30, 2021				Three Months Ended June 30, 2020
Net Income (loss)		$	3,528,279			$	(7,941,215	)
Interest Expense and finance cost, net			1,592,822				203,874
Depriciation & amortization			675,384				159,461
EBITDA (loss)			5,796,485				(7,577,880	)
Bad debt expense			41,763				750
Initial Derivative Expense			-				3,340,554
Change in derivative value due to anti-dilution adjustments			-				2,642,175
Loss (gain) on change in fair value of derivative			(7,574,750	)			339,088
Stock-based compensation			960,334				709,230
Adjusted EBITDA (loss)		$	(776,168	)		$	(546,083	)
		Six Months Ended				Six Months Ended
		June 30, 2021				June 30, 2020
Net Loss		$	(2,751,787	)		$	(10,423,820	)
Interest Expense and finance cost, net			3,020,410				248,080
Depriciation & amortization			834,845				318,923
EBITDA (loss)			1,103,468				(9,856,817	)
Bad debt expense			58,726				12,000
Foregiveness of debt income			(24,925	)			-
Initial Derivative Expense			3,585,983				3,340,554
Change in derivative value due to anti-dilution adjustments			-				2,642,175
Loss (gain) on change in fair value of derivative			(8,203,371	)			904,176
Stock-based compensation			1,615,241				1,650,202
Adjusted EBITDA (loss)		$	(1,864,878	)		$	(1,307,710	)

SOURCE: Recruiter.com Group, Inc.

View source version on accesswire.com:
https://www.accesswire.com/659871/Recruitercom-Announces-Second-Quarter-2021-Results

FAQ

What were Recruiter.com's Q2 2021 financial results?

Recruiter.com reported a 38% quarter-over-quarter revenue growth, achieving $4.4 million in revenue, an 81% year-to-date increase, and a net profit of $3.5 million or $0.99 per share.

What was the revenue growth of Recruiter.com in Q2 2021?

Recruiter.com experienced a 38% revenue growth in Q2 2021 compared to Q1 2021.

How did the Recruiters on Demand service perform in Q2 2021?

The Recruiters on Demand service grew by 88% quarter-over-quarter in Q2 2021.

What is Recruiter.com's outlook for the future?

Recruiter.com expects continued strong demand for its recruiting solutions throughout the second half of 2021 and beyond.

What is the stock ticker for Recruiter.com?

Recruiter.com's stock ticker is RCRT for common stock and RCRTW for warrants.