Recruiter.com Reports Third Quarter 2020 Results

Net Income increased to $1.44M, or $0.28 per share


HOUSTON, Nov. 12, 2020 (GLOBE NEWSWIRE) -- Recruiter.com Group, Inc. (OTCQB: RCRT), a leading hiring platform with the world's largest network of job recruiters, today announced results of operations for the third quarter ended September 30, 2020.

"We continue to see the rapidly growing demand for our solutions from companies big and small," stated Evan Sohn, Chairman, and CEO. "From expanding our talented team to growing relationships with both new and established customers, our third quarter was filled with major accomplishments that have placed us in a great position for rapid growth moving into 2021."

Key Highlights:

  • Surpassed 27,000 recruiters on our Job Market platform as of September 30, 2020;
  • Launched our artificial intelligence (AI) powered candidate sourcing technology to create what we believe is the first platform in the world to offer recruiters access to both jobs and AI-matched candidates;
  • Expanded the Company's Board with an independent director, Deborah Leff, Global Leader and Industry CTO for Data Science and Artificial Intelligence ("AI") at IBM.
  • Received multiple major media appearances for the Recruiter Index®, Recruiter.com's survey of recruiter sentiment on the job market, hiring, and recruiting demand. Most notably, Evan Sohn appeared on CNBC on November 5, 2020, to discuss the conditions of the job market in the US;
  • Signed $13 million in revenue potential with numerous new clients in the mortgage and digital lending industry;
  • Signed key agreement with a Fortune 50 company, numerous healthcare companies, and experienced strong growth in Recruiters on Demand;
  • Formed a strategic partnership with Beeline, a global leader in software solutions for managing the extended workforce, to market a unique, diversity-focused network of recruiters to Beeline customers.
  • Formed a partnership with DVBE Connect, an award-winning, disabled veteran-owned recruiting and staffing company, to build a curated on-demand team of veteran recruiters;
  • Delivered innovative recruiting solutions for the healthcare industry by partnering with hospitals and leading healthcare recruiting companies to work to fill many registered nursing positions;

"We are at the epicenter of the Great Rehire," continued Sohn. "Our disruptive business model, matched with our technological prowess, has made recruiting faster, cheaper, and easier than ever before. We are on track to realize our vision of becoming one of the leading on-demand professional recruiting solutions, well-positioned to provide an essential service to both Fortune 500 companies and small and medium-sized businesses, as the great re-hiring continues."

"With a network of more than 27,000 recruiters, AI-matching technology, on-demand recruiting, video screening technology, and more, Recruiter.com is uniquely positioned to help accelerate the recruiting and hiring process during the reopening of America, and I couldn't be more excited to help drive that positive mission forward," concluded Sohn.

Third Quarter 2020 Financial Results

  • Revenue ending nine months was $6.16 million, representing a 50.9% increase year-over-year. Revenue for the quarter was $1.99 million. This increase resulted from a rise in hiring in our Permanent Placement business line, particularly in connection with the mortgage industry, as well as an increase in our Recruiters on Demand business;
  • Net income in the third quarter of 2020 was $1.44 million, or $0.28 per share, and included $4.21 million in non-cash income, primarily a result of the change in the fair value of a derivative liability;
  • Adjusted EBITDA was $(0.71) million, compared to $(0.54) million in the third quarter of 2019.
  • Please refer to our 11-12-20 10-Q filing at www.sec.gov for complete financial statements, footnotes and results of operations including management's discussion and analysis of financial condition and results of operations.

"We believe we have built a strong foundation for long-term growth," said Judy Krandel, Chief Financial Officer of Recruiter.com. "We believe our strategic investments in people and technology are primed to generate significant returns in the quarters ahead as businesses continue to move forward with reopening plans. With a dominant marketing position and increasing demand, we are well-positioned to capitalize on a wealth of opportunities."

Recruiter.com Group, Inc.

Recruiter.com is a hiring platform for the world's largest network of small and independent recruiters. We empower businesses to recruit specialized talent faster with virtual teams of recruiters and AI job-matching technology. Visit https://www.recruiter.com.

For investor information, visit https://www.recruiter.com/investors.html.

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Company Contact:

Recruiter.com Group, Inc.
Phone: (855) 931-1500

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, including but are not limited to demand for our services, revenue potential, and the economic re-opening. 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 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, 2019. 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.