Recruiter.com Group Inc. posted third-quarter results showing a 43% revenue jump from the previous quarter as significant tailwinds in the bustling post-pandemic world created surging demand for recruiters in a “job hopper” economy.
For the period ended September 30, 2021, the New York-based recruiting solutions platform, reported revenue of $6.3 million, compared to the second quarter of 2021.
The company attributed the increase to a jump in the company's Recruiter on Demand business and the introduction of several new subscription-based products with higher gross margins. In fact, Recruiter.com’s gross margins improved 36.8% in 3Q to reflect the shift in the company's sales mix to higher growth, higher margin operations.
READ: Recruiter.com prepares investors for strong 3Q and 4Q revenue growth
Recruiter.com said total stockholders' equity increased to $18.6 million in the quarter, up from a stockholders' deficit of $6.5 million at the end of the 2Q, thanks to the company’s up-list offering.
Apart from the closing of its upsized $12 million public offering and the Nasdaq listing, and the additional $1.8 million closing of underwriters' exercise of over-allotment options, the company said other accomplishments for the quarter include completing two acquisitions, including the Novo Group and Uncubed's technology solutions group, and integrating those businesses and products into its recruiting solutions.
It launched two new recruiting product offerings: Amplify, an artificial intelligence-powered email outreach solution, and the Recruiter.com recruiting jobs platform, which uses Uncubed's proprietary software.
The firm also launched Jobs.Recruiter.com, a new career community for recruiters and talent acquisition professionals. It said it also expanded its AI software index to include “over 150 million profiles of potential candidates” found on the Internet and other proprietary sources.
"Compared to the second quarter of 2021, our highest margin segments, software subscriptions, and marketplace solutions grew 165% and 360%, respectively, while our largest revenue segment saw strong demand with Recruiters on Demand growing by over 91%," said Miles Jennings, President, and COO of Recruiter.com in a statement. "This strong performance is expected to continue as we benefit from a series of supportive macro trends that provide significant tailwinds, including the continued reopening of the economy, the "Great Resignation," a growing "job hopper" economy, and an overall growing demand for recruiters."
Meanwhile, Recruiter.com CEO Evan Sohn said that with a “high backlog of demand,” the company has “an incredible opportunity to scale operations,” replicate its successes and cross-sell customers.
"I believe we are now on a clear path to profitability in the near term. We look forward to continuing our strong trajectory of organic revenue growth as macro conditions continue to improve and as more employers learn of our successful client outcomes,” added Sohn. “The foundation we have laid positions Recruiter.com as the go-to solution for solving dynamic and complex recruiting and hiring challenges. We look forward to growing into our incredible brand and unlocking its potential as a leader in a $120 billion market."
During the quarter, the company also launched the "Enterprise Plan" for Recruiters on Demand, a program designed to help employers hire multiple full-time recruiters to respond to the demand for talent.
The company will host a conference call on November 15, 2021 at 4:30 pm. ET to discuss its financial results.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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