Recruiter.com Reports First Quarter 2021 Results, QoQ Sales Up 39 Percent

Rhea-AI Summary

Recruiter.com Group, Inc. (RCRT) reported its first quarter 2021 results, highlighting a 39% revenue increase to $3.2 million compared to the previous quarter, driven by the growing Recruiters on Demand service. Despite this growth, the company posted a net loss of $6.3 million or $.96 per share, impacted by $4.7 million in non-cash expenses. The company also acquired Upsider.ai and Scouted.io to enhance its offerings and launched new services, positioning itself for further growth in a robust hiring landscape.

Positive

• Revenue increased by 39% to $3.2 million quarter-over-quarter.
• Achieved over 99% organic sales growth.
• Acquired Upsider.ai and Scouted.io to enhance technology offerings.
• Launched a new subscription service, Scouted by Recruiter.com, starting at $499/month.
• Grew the number of recruiters on the platform to 28,570.

Negative

• Net loss of $6.3 million, or $.96 per share.
• Non-cash expenses accounted for $4.7 million of the losses.

HOUSTON, TX / ACCESSWIRE / May 17, 2021 / Recruiter.com Group, Inc. (OTCQB:RCRT) ("Recruiter.com," the "Company"), an on-demand recruiting platform, today announced its results of operations for its first quarter ended March 31, 2021. To view the full quarterly results, please see the Company's complete 10-Q filing filed electronically with the SEC at www.sec.gov or through the Investor Relations section of our website, Recruiter.com.

"We were pleased with our achievement of rapid organic growth, validating our on-demand model of recruiting solutions," said Evan Sohn, CEO of Recruiter.com. "While our realized sales growth for the quarter was over 99% organic, we also acquired two innovative recruiting technology companies which we believe will contribute meaningfully in the quarters ahead. With multiple new-to-market software subscription-based products and new enterprise on-demand services clients, Recruiter.com is positioned for great success in a time when hiring is in tremendous focus and demand for the country."

First Quarter 2021 Financial Results

• Revenue for the quarter was $3.2 million, representing a 39% increase from the fourth quarter of 2020. This increase resulted primarily from a rise in the use of our Recruiters on Demand business.
• Net loss in the first quarter of 2021 was $6.3 million, or ($.96) per share, which included $4.7 million in non-cash expenses, primarily due to initial derivative expense, debt discount, and stock-based compensation.

Our key highlights during the three months ended March 31, 2021, include the acquisition of two technology companies:

• Upsider.ai, a SaaS (software as a service) platform for employers, which automates recruiting by offering powerful candidate identification and engagement, and a robust database from hundreds of sources and millions of candidates.
• Scouted.io, a video-powered talent platform, which helps employers identify and engage high-potential talent from curated candidate pools.

Other select achievements:

• Launched Scouted by Recruiter.com, a highly specialized professional talent subscription service starting at $499/month that leverages the power of AI and talent experts to help hiring managers to recruit top talent faster;
• Achieved 28,570 recruiters on our virtual AI- and video-enabled hiring platform, as of March 31, 2021
• Appointed Robert Heath, Executive Vice President, RPX Corporation, and Steve Pemberton, Chief Human Resources Officer, Workhuman, as independent directors of the Company;
• Launched our Recruiter.com Video solution on the SAP App Center, the digital marketplace for SAP partner offerings;
• Established partner program for our video recruiting platform, enabling our network of small and independent recruiters to benefit from the transformation of the recruiting industry into a video-first process;
• Launched On-Demand Recruiting Academy, an on-demand virtual training program to help career changers break into the world of virtual recruiting;
• Grew our marketplace partners with the addition of many new partners, including Fundomate, a leading provider for turnkey business funding solutions, to bring automated business funding to its US-based partner companies, and QuickFee, bringing in flexible online payment solutions for recruitment services;
• National Retail Solutions joined as a Recruit Me campaign partner to bring video interview capabilities to thousands of retail employers nationwide;
• Received multiple media appearances for the Recruiter Index, Recruiter.com's proprietary survey of recruiter sentiment on the job market, and hiring and recruiting demand. Most notably, Evan Sohn appeared on CNBC on April 1, 2021, to discuss the job market conditions in the United States of America.

Since March 31, 2021, our key highlights include the following:

• Announced a partnership with WeWork, which brings on-demand recruiting services to their business members through an exclusive Recruiter.com Flex Program and to offer WeWork All Access, a monthly membership that unlocks access to workspace worldwide, to Recruiter.com's customers.
• Finalized the acquisition of OneWire, a financial services recruiting platform, which brings the Company a roster of financial services clients and a significant database of financial services-related candidates.
• Continued to receive notable media appearances with live interviews with Evan Sohn, our CEO, on Yahoo Finance, Bloomberg, and CNBC.

"As the economy emerges from the pandemic, our national attention turns to the job market and getting people back to work," Sohn continued. "Recruiter.com is at the epicenter of the re-hiring, from augmenting large and small recruiting teams with our on-demand recruiting services to leveraging our SaaS tools to source and engage talent. We are honored to be playing an essential role in this process and excited for the weeks and months ahead."

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:
Sarah Schultz
Director of Communications
Recruiter.com Group, Inc.
sschultz@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.

SOURCE: Recruiter.com Group, Inc.

View source version on accesswire.com:
https://www.accesswire.com/647581/Recruitercom-Reports-First-Quarter-2021-Results-QoQ-Sales-Up-39-Percent

FAQ

What were Recruiter.com Group's first quarter 2021 financial results?

Recruiter.com reported a revenue of $3.2 million, a 39% increase from the previous quarter, but also a net loss of $6.3 million.

How much did Recruiter.com grow its revenue in Q1 2021?

The company achieved a 39% revenue growth compared to the fourth quarter of 2020.

What acquisitions did Recruiter.com make in 2021?

Recruiter.com acquired two companies: Upsider.ai and Scouted.io.

What is the stock symbol for Recruiter.com?

The stock symbol for Recruiter.com Group is RCRT.

What was the net loss reported by Recruiter.com in Q1 2021?

The net loss for the first quarter of 2021 was $6.3 million.