NEW YORK, NY / ACCESSWIRE / August 14, 2023 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (the "Company"), an on-demand recruiting platform, today announced financial results for its second quarter ended June 30, 2023.
"We're proud of the significant strides made in the second quarter of 2023, demonstrating our commitment to a streamlined and focused strategy," said Miles Jennings, CEO of the Company. "By reducing operating expenses by over 60% from the first quarter of 2023 and benefiting from other income from government credits, we improved our net loss by over 70% and generated positive adjusted EBITDA of $39.7 thousand. This quarter marks a turning point, and we are enthusiastic about our continued emphasis on technology and AI-powered solutions. The numbers reflect our determination and success in aligning with our overall strategic plan, and I'm confident in the direction we're headed. It's a promising time for the Company as we pivot, positioning ourselves for a future filled with opportunities."
"In alignment with our strategic plan, we've embarked on a groundbreaking initiative, announcing our proposed asset acquisition of fintech assets from GoLogiq," Jennings elaborated. "Through meticulous planning and execution in the past quarters, we've made strides in this strategic transaction, forming CognoGroup, Inc. as the potential nexus for our current operating business, and entering a Securities Purchase Agreement to acquire 1,000,000 Series A Preferred Stock of Atlantic Energy Solutions, a company quoted on the OTC Markets. These well-calibrated steps signify our dedication to advancing our strategic mission, a mission we believe harbors the key to unlocking value for our stakeholders."
Second Quarter 2023 Financial Highlights (Full Results in Tables Below)
Revenue for the second quarter totaled $2.0 million, a 71% decrease compared to revenue of $7.1 million in the second quarter of 2022, due primarily to a strategic alignment away from the professional services of the Recruiters on Demand business.Gross profit for the second quarter was $437 thousand, an 85% decrease compared to gross profit of $2.9 million in the second quarter of 2022, due to lower total revenue.Total operating expenses for the second quarter were $1.4 million, a 73% decrease compared to operating expenses of $5.3 million in the second quarter of 2022, due primarily to reductions in staff and the ongoing efficiencies gained from the integration of asset acquisitions.Net loss for the second quarter was $980 thousand, an 18% improvement compared to a net loss of $1.2 million in the second quarter of 2022. The net loss in the second quarter of 2023 included interest expense and finance cost of $41 thousand, non-cash depreciation and amortization expense of $332 thousand, gain on settlement of payables of $179 thousand, and equity-based compensation expense of $220 thousand.Liquidity and Capital Resources
On June 30, 2023, Recruiter.com had $442 thousand in cash and cash equivalents, and accounts receivable, net, of $1.4 million. There were 17,792,151 common shares outstanding at quarter-end.
Jennings concluded, "While this quarter has been a period of strategic realignment, the decisions made have set the Company on a dynamic course for the future. Our focus on technology and AI-powered solutions, the formation of CognoGroup, Inc., and the careful planning behind our proposed acquisition signify more than just adaptation - they're a calculated drive toward innovation and growth. The lessons we've embraced and the paths we've chosen are aligning us with a promising and prosperous future. We believe in our direction, and I'm confident that our stakeholders will see the value we're working tirelessly to unlock."
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 and recruitment marketing automation, Recruiter.com helps businesses solve today's complex hiring challenges.
For investor information, visit https://investors.recruiter.com
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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 economic environment, 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, 2022. 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:
Corporate Communications
[email protected]
-Tables Follow-
Recruiter.com
Condensed Consolidated Balance Sheets
Recruiter.com
Condensed Consolidated Statements of Operations
(Unaudited)
Recruiter.com
Condensed Consolidated Statements Of Cash Flows
(Unaudited)
EBITDA is a non-GAAP financial measure and should not be considered as an alternative to net income, operating income, cash flow from operating activities, as a measure of liquidity or any other financial measures. It may not be indicative of the historical operating results of Recruiter.com Group, Inc. nor is it intended to be predictive of potential future results. Investors should not consider EBITDA in isolation or as a substitute for analysis of the company's results as reported under GAAP. A reconciliation of net income to EBITDA, the most comparable GAAP measure, can be found in the accompanying financial tables.
Six months Ended June 30,2023 2022SOURCE: Recruiter.com Group, Inc.
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