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Recruiter.com Announces Fourth Quarter and Full Year 2021 Results

  • 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 $8.4 million. The Company's sales mix is shifting toward higher margin products, including software subscriptions and on-demand recruiting solutions."

"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 of 160% 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 a 51% increase in the Company's Recruiter on Demand business and 64% 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 $8.4 million compared to $2.3 million during the same period in the year prior. The strongest increases were from growth in software subscriptions, which increased to $762,500, and on-demand recruiting services, which generated revenue of $5.2 million.

Gross profit for the fourth quarter ended December 31, 2021, totaled $2.6 million, compared to $2.3 million for the third quarter of 2021 and compared to $0.7 million for the fourth quarter of 2020.

Operating expenses for the fourth quarter of 2021 totaled $8.6 million compared to $2.3 million for the 2020 fourth quarter and decreased sequentially by 3%, from $8.8 million in the third quarter of 2021. Net loss for the fourth quarter ended December 31, 2021, totaled $5.9 million; this compares to a net loss of $7.7 million for the third quarter of 2021 and a net loss of $8.1 million for the fourth quarter of 2020.

Financial Results for the Full Year Ended December 31, 2021

Revenue for the full year ended December 31, 2021, totaled $22.2 million compared to $8.5 million during the same period the year prior, an increase of 160% year-over-year, driven by favorable market conditions for recruiting and talent solution providers, acquisitions that contributed substantially to revenue, and the launch of Recruiter.com's software solution. During the year, Recruiters On Demand revenue grew to $11.4 million, legacy staffing grew to ​​$7.6 million, permanent placement grew to $1.1 million, marketplace grew to $726 thousand, and software subscriptions, launched within 2021, totaled $1.4 million.

The cost of revenue for the full year ended December 31, 2021, totaled $14.9 million compared to $6.1 million for the year prior, an increase of 142%. The components of the cost of revenue have shifted with our new product direction but are primarily comprised of labor costs for our on-demand recruiting solution.

Gross profit totaled $7.3 million for the full year ended December 31, 2021, an increase of 208% compared to $2.4 million for the same period the year prior. Operating expenses for the full year ended December 31, 2021, totaled $24.2 million, an increase of 166% compared to $9.1 million the year prior. Net loss for the year ended December 31, 2021, totaled $16.3 million, compared to a net loss of $17.0 million for 2020.

Liquidity and Capital Resources

On December 31, 2021, Recruiter.com had $2.6 million in cash, cash equivalents, and marketable securities. Total Current Assets were $8.8 million. As of March 31, 2022, there were 14,784,821 common shares outstanding.

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:

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 $934,219 and $33,000, respectively
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 $2,982 and $1,828, respectively
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 $0 and $2,719, respectively
- 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 $0 and $1,205,699, respectively
- 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, $0.0001 par value; 2,000,000 shares authorized; 0 and 527,795 shares issued and outstanding as of December 31, 2021 and 2020, respectively
- 54
Preferred stock, Series E, $0.0001 par value; 775,000 shares authorized; 86,000 and 731,845 shares issued and outstanding as of December 31, 2021 and 2020, respectively
9 74
Preferred stock, Series F, $0.0001 par value; 200,000 shares authorized; 0 and 64,382 shares issued and outstanding as of December 31, 2021 and 2020, respectively
- 7
Common stock, $0.0001 par value; 100,000,000 shares authorized; 14,566,420 and 2,201,604 shares issued and outstanding as of December 31, 2021 and 2020, respectively
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 $107,812 and $171,683, respectively)
$22,184,112 $8,502,892
Cost of revenue (including related party costs of $598,752 and $1,363,905, respectively)
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 $162,102 and $235,444, respectively)
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 $5,400,975 and $3,212,772, respectively, and related party expenses of $132,253 and $438,320, respectively)
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 $30,466 and $12,276, respectively)
(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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