Recruiter.com Group, Inc. (NASDAQ:RCRT) has announced its financial results for the second quarter ended June 30, 2022, with revenue rising to $7.1 million, up 62% year-on-year.
Gross profit for the second quarter was $2.9 million, a 107% increase compared to $1.4 million in the comparable period of 2021. The gross profit margin expanded to 41.2% compared to 32.8% a year ago, reflecting a continued shift in the company's sales mix to its faster-growing and higher-margin businesses.
"Recruiter.com delivered a strong quarter, growing revenues and margins while reducing operating expenses,” Evan Sohn, CEO of Recruiter.com said in a statement. "Strong product market fit and solid hiring demand helped grow revenues by 62% y/y to $7.1 million and achieve 3.5% organic revenue growth sequentially."
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"A sustained shift toward our software and on-demand services enabled our gross profit to more than double y/y to $2.9 million and expand our gross margin to 41.2%. During the quarter, we also focused on delivering operating efficiency, reducing our adjusted EBITDA loss to $397 thousand, a 70% sequential improvement. We are excited by the growth opportunities ahead of us and expect to cross the breakeven mark for positive adjusted EBIDTA before year-end," Sohn added.
The company said total operating expenses were $5.3 million, an increase of 36% compared to $3.9 million for the second quarter of 2021. The increase was primarily due to higher sales and marketing, product development, general and administrative expense, and higher amortization of intangibles of $917,000 compared to $675,000 in the year-ago period.
Recruiter.com had a net loss of $1.2 million in the second quarter of 2022 compared to a net income of $3.5 million in the second quarter of 2021. The net loss in the second quarter of 2022 included non-cash depreciation and amortization expense of $917,000, bad debt expense of $345,000, and equity-based compensation expense of $669,000.
On June 30, 2022, Recruiter.com had $1.7 million in cash and cash equivalents and accounts receivable, net, of $4.3 million. There were 14,915,682 common shares outstanding at quarter-end, the company said.
Recruiter.com is an on-demand recruiting platform providing flexible talent acquisition solutions that scale from start-ups to the Fortune 100.
Contact the author at jon.hopkins@proactiveinvestors.com