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SISM Investors Initiates Coverage on Recruiter.com Group Inc. (NASDAQ: RCRT) With a Buy Rating

 

Recruiter.com Group Inc. (NASDAQ:RCRT) $3.53 September 21, 2021 

 

Recruiters AI-Powered On-Demand Platform Is Revolutionizing The Recruiting Industry

 

Recruiter.com (NASDAQ: RCRT) is poised to benefit from a transformational megatrend in the global recruiting industry. RCRT has fully integrated AI search and matching plus video screening and on-demand service, including the worldwide largest network of recruiters to assist and to recruit talent faster. While millions remain unemployed, specific industries struggle to find workers, and more than 75 million Baby Boomers retire sooner rather than later. Recruiter’s services drastically cut hiring time and cost and more than 35 million people changing jobs in the U.S.A. annually. RCRT is still in the early stage of its business development and is rapidly growing by inorganic growth by acquisitions. Year-on-year RCRT had the strongest growth rate of the entire recruiting industry. The shares trades 26.2% lower compared to 12 months ago and offers investors excellent buying opportunities. We are initiating coverage on Recruiter.com with a SPECULATIVE BUY RATING and a 12-months target price of $15. Read more

Read Our Blogs

Recruiter.com Launches New Job Platform for Recruiters

Tue, September 28, 2021, 3:00 PMIn this article: Creating the go-to resource for recruiting jobs amidst surging demand NEW YORK, NY / ACCESSWIRE / September 28, 2021 / Recruiter.com Group, Inc. (NASDAQ: RCRT) (NASDAQ: RCRTW) (“Recruiter.com”), a leading provider of recruiting solutions, today announced the launch of a new job platform for recruiters and talent acquisition professionals, to …

Recruiter.com Launches New Job Platform for Recruiters Read More »

Recruiter.com Expands Marketing Team, Appoints Angela Copeland as Vice President of Marketing

Advances Recruiter.com’s Growth Plans to Fuel Customer Acquisition NEW YORK, NY / ACCESSWIRE / September 22, 2021 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (“Recruiter.com”), a leader in on-demand recruiting solutions, today announced the appointment of Angela Copeland as Vice President of Marketing. It is expected the new hire will elevate Recruiter.com’s presence in the market as it builds …

Recruiter.com Expands Marketing Team, Appoints Angela Copeland as Vice President of Marketing Read More »

SISM Investors Initiates Coverage on Recruiter.com Group Inc. (NASDAQ: RCRT) With a Buy Rating

NEWS PROVIDED BY SISM Investors September 21, 2021, 17:24 GMT Recruiter is at the forefront of revolutionizing recruiting and talent acquisition into a rapid on-demand service and is poised to benefit from a transformational megatrend in the recruiting industry.”— Ernest C. Schlotter KLOTEN, ZURICH, SWITZERLAND, September 21, 2021 /EINPresswire.com/ — Ernest C. Schlotter, a senior …

SISM Investors Initiates Coverage on Recruiter.com Group Inc. (NASDAQ: RCRT) With a Buy Rating Read More »

Recruiter.com Enhances AI Software to Index Over 150 Million Profiles

Positioned as an early leader in an expansive new market NEW YORK, NY / ACCESSWIRE / September 20, 2021 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (“Recruiter.com”), a leader in on-demand recruiting solutions, today announced that its artificial intelligence (“AI”) software now indexes over 150 million profiles, empowering employers with the capacity to automate candidate campaigning and engagement to …

Recruiter.com Enhances AI Software to Index Over 150 Million Profiles Read More »

Substantial Stock Price Increase in Recruiter.com (NASDAQ: RCRT)

Recruiter’s Stock Price is on the Move Since starting covering the Company, the share price performed very well, from $3.81 to a high of $5.25 in yesterday’s trading support by a substantial volume of 610,890 shares vs. an average volume of 108,836. Interview with Evan Sohn, CEO Recruiter.com The full one hour interview you can …

Substantial Stock Price Increase in Recruiter.com (NASDAQ: RCRT) Read More »

Recruiter.com Acquires Flexible Talent Solutions Leader, the Novo Group

Transforming recruiting into an on-demand experience NEW YORK, NY / ACCESSWIRE / August 30, 2021 / Recruiter.com Group, Inc. (NASDAQ:RCRT)(NASDAQ:RCRTW) (“Recruiter.com”), a leader in on-demand recruiting solutions , today announced it has completed the acquisition of the Novo Group, Inc. (the “Novo Group”), a company that provides flexible talent acquisition to a wide array of customers, including life sciences, manufacturing, …

Recruiter.com Acquires Flexible Talent Solutions Leader, the Novo Group Read More »

SISM Investors Issues
Recruiter.com Summary

Recruiter’s AI-Powered On-Demand Platform Is Revolutionizing The Recruiting Industry

Company Overview

Based in New York, Recruiter.com has developed Artificial Intelligence(AI)-powered hiring and Video platform targeting the global $445 billion recruiting and staffing industry. Artificial intelligence has quickly established itself as a game-changer in the recruiting process, enabling organizations to find and hire just the right candidate for the job more readily. The Company has a network of more than 30,000 small and independent recruiters globally. RCRT operates five diversified revenue streams – Recruiters on Demand, Consulting and Staffing, Full-time Placement, Software Subscriptions, and Marketplace. Currently, the Company drives 90% of its revenue from Recruiters on Demand and Consulting and Staffing. Demand for the Recruiter services is robust; revenues for 2Q21 increased by 136.4% compared to 2Q20, gross profit by 229.70% from $435,172 to $1,434,810 in 2Q21 with a gross margin of 32.75%, respectively. Despite impressive second-quarter results and a strong growth outlook, the shares are trading on the lower-end of the 52-weeks range

INVESTMENT HIGHLIGHTS

♦️ During Covid-19, the traditional hiring process was never more difficult for recruiters and candidates, and it was not easy to adapt to a fully remote experience. Digital transformation has sped up significantly, and the way companies work has fundamentally changed due to the COVID-19 pandemic. Continuing significant shifts are underway in the process to leverage technology to drive efficiency for both recruiters and job-seeker alike.

♦️ In the first half-year of 2019, Recruiter.com started its mission to build the largest recruiter platform in the world. It launched its AI-powered candidate sourcing and matching technology to improve the functionality and effectiveness of the Company’s platform solutions. The platform augmented with artificial intelligence candidate sourcing and matching technology and video allows their clients to access the scalable sourcing power of an extensive network of independent recruiters. By the end of 2019, the company had a virtual team of over 20,000 small and independent recruiters using the innovative web platform. By the end of 2019, the Company recorded close to $6 million in revenue.

♦️ In 2020, COVID-19 had a dramatic effect on the US economy and the job market. Unemployment peaked at 14.7% in April of 2020.  Since then, the labor markets have improved significantly. Recruiter.com benefitted and increased its revenue by 41.1% to $8.5 million by the end of 2020 compared to 2019. Gross profit increased to $2.36 million. The Company attracted more than 28,000 small and independent recruiters.

♦️ There is no question that the way we work has fundamentally changed due to the COVID-19 pandemic. Through software and mechanisms, (AI) and human-like intelligence have accelerated digitization operations by three to four years. Video interview software and AI-powered platforms make hiring up to 90% faster and significantly reduce hiring costs. Recruiter.com expects continued strong growth throughout the second half of 2021 and beyond.

♦️ Recruiters.com will further grow by increasing its world-largest virtual recruiter network with hundreds of millions of candidates and expanding its relationship with clients, attracting new clients, increasing growth and earning opportunities with recruiters, and grow through further investments in technology and acquisitions. Its AI platform is capable of profiling 500+ million candidates.

♦️ RCRT reported strong second-quarter results. For the quarter ended June 30, 2021, the Company increased its revenues by 136.40% to $4.4 million, compared to 2Q20 and 38.4% to $4.38 million vs. 3.2 million in 1Q21. In the second quarter of 2021, the gross margin increased to 32.75%; the net profit was $3.5 million, or $.60 per share, fully diluted compared to a loss of $6.2 million for 1Q21. The gain is related to a change in the fair value of the derivative liability of $7.5 million. The RCRT generates 96% of its revenue in the U.S., significant opportunity for growth outside of the U.S exists.

♦️ In our Company analysis and valuation, we use EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. Over the years, the EBITDA measure has gained importance in quarterly reports, and it is employed to analyze and compare profitability between different corporations and industries. It is for this reason that EBITDA is often preferred over other valuation metrics. Subsequent Q2 the Company raised approx. $13 million in new capital. Despite impressive 2Q2021 results and a strong growth outlook, the shares are trading on the lower-end to the 52-weeks trading range. We start covering RCRT and work on an extensive research report, available within the next twenty to thirty days.

This memorandum is for informative purposes only. SISM Investors is an investment research firm without any investment banking activities and is publishing research reports with respect to the securities of its clients. The information contained in these reports is based on sources that we consider reliable but is not guaranteed by the company nor us, nor do our reports represent a solicitation to buy or sell the securities discussed therein. While the information contained has been obtained from sources believed to be reliable, we do not represent that it is accurate or complete, and it should not be relied upon as such. Risks to our valuation include sustained weakness in demand for labor and the economic health of current and prospective clients that use Recruiter’s platform and services. SISM Investors, Erlenweg 15, 8302 Kloten Switzerland. All rights reserved.♦️

Reconciliation of Net Loss to Adjusted EBITDA (unaudited)

  FY Dec. 2020 Q1 March 2021 Q2 June 2021
Net Income (loss) -17,036,837 -6,280,066 3,528,279
Interest Expense and finance cost, net 2,022,113 1,427,588 1,592,822
Depreciation & amortization 687,845 159,173 675,384
EBITDA (loss) profit -14,326,879 -4,693,305 5,796,485
Bad debt expense 12,000 16,963 41,763
Forgiveness of debt income -376,177 -24,925
Impairment expenses
Initial Derivative Expense 3,340,554 3,586,271
Change in derivative value 2,642,175
Loss on change fair value of derivative 2,658,261 -628,621 -7,574,750
Stock-based compensation 3,212,772 654,907 960,334
Adjusted EBITDA (loss) -2,837,294 -1,088,710 -776,168
       
Net income (loss) per share – basic -$0.58 -$0.17 -$0.22
Net income (loss) per share – diluted -$0.58 -$0.17 -$0.13
       
Weighted average  shares – basic 4,873,657 6,537,308 3,560,745
Weighted average shares – diluted 4,873,657 6,537,308 5,879,481

Condensed Consolidated Statements of Operations (unaudited)

  FY Dec. 2020 Q1 March 2021 Q2 June 2021
Revenue 8,502,892 3,164,545 4,380,894
Year-to-year and qtr-to qtr Growth 25.74% 35.00% 38.44%
Cost of Revenues 6,138,363 2,254,910 2,946,084
       
Gross Profit 2,364,529 909,635 1,434,810
Gross Margin Product Revenue 27.81% 28.74% 32.75%
       
Operating expenses:      
Total operating expenses 9,102,792 2,833,281 3,887,702
Operating expenses vs. Revenue % 107.06% 89.53% 88.74%
Loss from operations -6,738,263 -1,923,646 -2,452,892
Operating Margin -79.25% -60.79% -55.99%
       
Total other income (expenses) -10,298,574 -4,356,420 5,981,171
       
Net income (loss) -17,036,837 -6,280,066 3,528,279
       
 Net income (loss) per share – diluted -$3.50 -$0.96 $0.60
       
Weighted average shares – diluted 4,873,657 6,537,308 5,879,481

 

Recruiter.com Research Summary to Download in PDF August 27, 2021

August 16, 2021 -- SISM Investors starts covering Recruiter.com (RCRT)

Recruiter.com is an online hiring platform delivering on-demand recruiting technology and services to both large and small businesses. With AI and video technology, and the world’s largest network of recruiters, Recruiter.com delivers on-tap recruiting that flexes with hiring needs. To learn more, visit https://www.recruiter.com. For investor information, visit https://investors.recruiter.com

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