The Recruiter.com's fourth quarter and year-end 2021 earnings conference call. This is Stephanie Prince from PCG Advisory. As a reminder, this call is being recorded, and all participants are in a listen-only mode. We will open the call for questions and answers following the presentation. On the call today are Recruiter.com's Chairman and CEO, Evan Sohn, and President and COO, Miles Jennings. The company would like to remind everyone that various remarks about future expectations, plans, and prospects made on today's call constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Recruiter.com cautions that these forward-looking statements are subject to risks and uncertainties that may cause their actual results to differ materially from those indicated, including risks described in the company's filings with the SEC. Any forward-looking statements made on this conference call speak only as of today's date, Thursday, March 31, 2022. Recruiter.com does not intend to update any of these forward-looking statements to reflect events or circumstances that occur after today. A replay of today's conference call will be available through the investor relations section of Recruiter.com's website at investors.recruiter.com. With that, I'd like to turn the call over to Recruiter.com's Chairman and CEO, Evan Sohn, for opening comments. Evan? Thank you, Stephanie, and I'd like to welcome everyone on the call today. By every measure, Recruiter.com had a tremendous year in 2021. We grew revenue to over $22 million, a growth of 160%. During the year, we uplisted to Nasdaq, raised approximately $14 million in new capital, closed four key acquisitions, built out our management team and a solid operational foundation, introduced several important new product segments, and transformed our revenue mix. We began the year looking more like a traditional staffing company on top of a web-based media company, and ended the year as a technology-led recruiting solutions company. Coincidentally, today is my third anniversary with the company, having joined as chairman of the board in 2019, and I couldn't be prouder of our accomplishments. Thank you to our team and everybody who has helped us get to this point. Before we get into more details, I'd like to briefly review our products and strategy for those new to recruiter.com. Recruiter.com provides software and services to solve hiring challenges for employers. We deliver talent solutions to employers, working with companies from startups to the Fortune 100. Our artificial intelligence-powered software provides employers with a steady stream of qualified candidates for their open roles, delivered to them in their manner of preference. This software works by scanning over 160 million profiles in the United States alone, matching candidates for these open roles, and then campaigning to them to get their interest. For companies that need extra help hiring, we also provide freelance recruiters on an on-demand or gig basis, paid by the hour. Think of this like Uber for talent acquisition. We have recruiters on various projects at our clients getting paid for their services with no traditional headhunter fees. These are full or part-time positions whereby the independent recruiters in our network provide talent acquisition services to these employers to help them fill their open roles. Our revenue grew throughout the year as our new products gained traction, and we ended the year on a high note with fourth quarter revenue of $8.4 million, a 34% growth from the previous quarter. For the year, revenue grew 160% to $22 million. This gross growth was primarily fueled by good overall market trends for recruiting and hiring solutions, multiple acquisitions that help drive marketplace and on-demand services, and a strong demand for our subscription-based software. Miles will go into more detail in a few minutes. Our shifting revenue mix underscores the transformation we've undergone. In 2020, Recruiter.com's revenue was largely comprised of staffing services and advertising through our Recruiter.com marketplace. It was also the year we launched our Recruiters on Demand offering. As you can see on the slide, our product composition changed dramatically in 2021, with the change most pronounced in the fourth quarter. On-demand accounted for 62% of our revenue by the end of the year. Staffing was down to under 20%. Our software subscription, which we didn't have at all in 2020, already accounts for over 9% of our overall revenue. We believe this trend toward our technology products will continue, but that doesn't mean that our other businesses didn't grow. All of our segments generated growth during the year, as you can see on this slide. Some, particularly our on-demand and marketplace revenue, were accelerated by our acquisitions. The bar chart depicts our product segment revenue graphically, illustrating the year-over-year growth for each of our product segments with the actual revenue numbers on the right. We continue to grow our customer base with a diverse mix of large and small companies across many industries. We now have 17 enterprise clients that spend over $50,000 with us monthly, ranging down to over 430 self-service customers that spend on average $400 monthly. As our investment in our software and our platform continues, we expect to see more customers using multiple services, especially the larger clients. We also expect these customer trends to continue as we start investing in marketing, raising awareness of our easy and effective on-demand services and software solutions. I'd now like to turn the call over to our COO, Miles Jennings, for a financial review. Evan, thanks very much. Next slide. There you go. Recruiter.com had a strong fourth quarter. Revenue increased from $6.3 million in the third quarter to $8.4 million in the fourth, which was 100% organic growth. Our higher margin, higher growth software and marketplace subscriptions and our Recruiters on Demand segments accounted for almost 75% of total revenue in our fourth quarter of 2021, compared to 66% of our total revenue in the third quarter. Our strongest growth was in two product lines during the fourth quarter, including software subscriptions, which grew 64% from the previous quarter sequentially. Recruiters on Demand, our largest revenue segment, was strong, too, with revenue increasing over 50%. Our gross profit dollars increased by 14% over the third quarter and 262% compared to last year's fourth quarter. The gross margin percentage in Q4 was 31% compared to 37% in the third quarter. This decrease in gross margin was primarily due to our first larger collections and a bad debt issue. Specifically, we had to expense all of the costs related to one now former client, but we couldn't recognize all of that revenue. Without this issue, our margins remain roughly steady. This collectibility issue will also affect our revenue in Q1, although to a lesser degree. With numerous acquisitions and high organic growth, we were bound to have a collections issue. We used it as an opportunity to review and tighten up our customer financial controls and checks and balances on extending our customers credit. We're confident that we've improved our credit evaluation process for the future. General and administrative expenses were up in the quarter, reflecting increases in compensation, reflecting our growth, an increase in stock-based compensation, and the one-time bad debt expense of approximately $650,000 associated with the collection issue I just discussed. Next slide. The EBITDA loss for 2021 was $5.3 million, as adjusted for stock-based compensation, interest and finance expense, depreciation and amortization, and other non-cash items. Next slide. For the fourth quarter, the EBITDA loss was $2.2 million. This loss includes the bad debt issue I just discussed, totaling $650,000. Without the one-time bad debt expense, EBITDA in Q4 would have been close to the third quarter, despite the increased G&A expenses previously mentioned. We're focused on continuing on the path to profitability. Looking at the fourth quarter, revenue grew by 34% over the third quarter sequentially, and gross profit dollars expanded by 14% to $2.6 million. We expect to continue to shift from lower-margin staffing revenue to higher-margin software on demand and marketplace revenue, combined with ongoing gross profit expansion that is trending to meet our operating expenses in the quarters ahead. Next slide. When we look back on this year, as Evan mentioned, we really went through a dramatic transformation at our company. The capital we raised last summer, in conjunction with our listing on Nasdaq, played a really essential role in helping us complete our third quarter acquisitions of the Novo Group and the technology division of Uncubed. The Novo Group acquisition helped grow our on-demand revenue in Q3, and we continued that with organic growth in Q4. The Uncubed asset purchase brought us job posting technology, which we successfully integrated into Recruiter.com, and now we operate multiple career communities with that technology software. With a dramatically expanded customer base and some completely new product offerings, we really are a very different company than we were the previous year. We've covered some of the highlights from the quarter and the year, but as a quick recap, total revenue grew by 160% year-over-year, which was fueled by acquisitions, organic growth, and a tight labor market and good hiring demand. Highest margin segments, including software subscriptions, grew at 64% sequentially. Our marketplace solutions were roughly flat for Q4 after a large growth from the Uncubed acquisition in Q3. This revenue includes primarily job posting product revenue. On-demand recruiting now makes up in total 62% of our business. Software and marketplace solutions are now over 12% of our overall revenue mix. Next slide. Some of our more recent updates from the past quarter. We released job market and hiring trends research in partnership with Revelio Labs, highlighting the growing demand for recruiters and talent acquisition professionals throughout the year. We announced a partnership with Deel, a platform that streamlines compliance and payments for international teams, allowing companies to hire contractors and employees globally. We really picked up our PR and marketing exposure this past year. We participated in a number of investor conferences and appeared in many major media outlets. Evan, who was on CNBC earlier this month and throughout the year, has been discussing changes in the job market in real time and driving a lot of really good conversation and interest to our company. This is gonna continue to be important this year to get our story better known to the market, as we are a new publicly listed company as of 2021. Also, a bit after the year-end, we were awarded trademark registration for the word mark recruiter.com. We believe it's an important protection for our brand, which we feel is an incredibly valuable asset for our company. Next slide. We were also really proud last year to launch a number of new product innovations such as our Amplify product for job posting and a revamped AI software. We continue investing in product development and brought on some key new team members in our software development and product management teams, including our CTO and a new director of product. We improved our AI software by adding to the database of candidates that we indexed and improved how we match candidates to open client jobs. Finally, we launched our career communities based on the job posting software that we brought in through acquisition last year. We launched our first career community aimed at talent acquisition and recruiting, and these career communities will be an important part of our online engagement strategy and marketplace revenue going forward. That ends my comments. I hope I've conveyed how excited we are about the opportunities for Recruiter.com this year and beyond. I'll pass the call back to Evan for some comments on industry trends and the more macro environment. Thank you, Miles. As many of you know, Recruiter.com creates its own research in addition to analyzing general market conditions. We then present this data to various outlets, like on my monthly CNBC segment before the jobs report. We see here our Recruiter Sentiment Index taken from our monthly survey of recruiters in our network. Since the beginning of the pandemic, you could see that sentiment continued to improve until Omicron hit the United States. After declining for a couple of months in the depth of winter, sentiment rebounded in March as the COVID pandemic continues to recede. It is now back to 3.7 out of 5. Now, last month, we partnered with Revelio Labs to include job demand data. Interesting to note, recruiters are now 2 on the list of the most in-demand jobs. It was 3 on our last call. There are a series of key macro industry trends that we believe will support our continued growth. These include the reopening of the economy. With an unemployment rate of 4% and over 11 million jobs open in January, there's an immediate demand for recruiting solutions. The Great Resignation is another significant trend that you've probably heard about on the news. It's continuing. An estimated 4.3 million people quit their jobs in January of 2022, and current polls show that four out of five American workers are looking to make a job change. Then there is the job hopper economy, where an estimated 60% of millennials say they're willing to leave their job within the first six months. According to economists, this trend is expected to have a lasting impact on work tenures going forward. Last is the overall demand for recruiters. According to LinkedIn, there are over 300,000 open jobs for recruiters in the United States. The Wall Street Journal actually called recruiters the hardest job to recruit for. Recruiter.com is well positioned to address these trends. These trends provide us with many opportunities that our key initiatives are focused on. We believe they'll deliver impressive returns in this environment. First is our continued drive to maximize efficiencies in our operations. We remain focused on developing excellence in our supply chain of service delivery and are increasing the use of key metrics to gauge our performance. Second, as our business grows, so does our data. We are using our artificial intelligence technology to leverage our in-house data. More specifically, we're improving our analytics to create more efficient processes and services. Our shift towards higher margin, higher growth software subscription solutions is a newer, highly scalable component of our business that leverages our platform to more fully align with market requirements, enabling us to scale up faster and bolder. Our backlog of demand increases the cross-sell opportunities. In closing, I want to take this time to thank our team and our investors for an amazing year. We're tackling some of the biggest societal issues, like growing demand for specialized talent, and have really big opportunities ahead of us. As we continue to evolve into a software and on-demand services company, our product offerings will address the biggest challenges that employers are facing right now. We believe that our products are well aligned with what the market needs and that we're ahead of the curve of where recruiting and hiring are going for the future. Thank you to everyone joining us today, and we'd like to open up the call for questions. Operator? Hi, everyone. Thanks for joining. This is the Sequire host. At this time, can you please raise your hand at the bottom of the screen if you have a question? If you are calling in on this call, you can press star nine to raise your hand. Okay, it looks like we have one question. You can go ahead and talk now. Yes. Hi, this is Allen Klee for Maxim. Nice to hear you guys and the momentum you have. Could you talk a little on the Recruiters on Demand, what the momentum you're seeing there and how you're thinking about the outlook there? Sure. Again, thank you, Allen, and I really appreciate your support, certainly over these last few months. Recruiters on Demand is really an exciting business. You know, companies of all sizes really have a choice. They can either hire on their own, they could do it themselves, or they could use a headhunter to do it for them. What we've really seen in this on-demand space are companies, large and small, wanna bring an in-house recruiter without the long-term expense of an in-house recruiter. We do this in an on-demand basis, very much like some of the freelance platforms like Upwork and Fiverr, and of course, I mentioned before, like the Uber, but for talent acquisition. What we're seeing is companies, the larger companies, the more sophisticated companies are leveraging our on-demand platform to augment their in-house teams to really address influx or increases of demand perhaps on a sporadic basis. We expect this to continue, and it's also incredibly specialized. You know, the recruiter that a pharmaceutical company requires is a different recruiter than a technology company requires. What we're doing now, Allen, is actually taking that downstream and helping companies, smaller companies, with this, with the on-demand recruiting space as well. We're very optimistic about the long-term opportunities for our on-demand platform. Okay. Operator, you wanna take the next question then? Allen, did that answer your question? That's great. Could I ask a couple more or Sure. Okay, great. For software subscription, I know that's a bigger focus. Can you talk about kind of how you've changed the resources you're putting behind that and how you're thinking about the outlook there? Sure. Look, the future of talent acquisition, you know, at the end of the day here, recruiting is still about a human interaction. We're not called No Recruiter, we're called Recruiter.com. We really believe that talent acquisition is a human interaction, but what we wanna see happen is that 80% of the time, proverbially of course, one should be spent in meaningful conversations with candidates and hiring managers, and 20% of the time sourcing and engaging those candidates. Our software, combined with our services and our on-demand services, are part of that sourcing and engaging candidate process. Companies, again, large and small, are subscribing to our software like a traditional SaaS platform, and we're delivering for them, warm and engaged candidates. Our AI software has access to over 160 million U.S. profiles. That's in the U.S. alone. Think about just every working adult in the U.S. that we have access to, and we engage our software on behalf of our clients, whether they're pharmaceutical clients, technology clients, law firms, and everything that's in between. It really is an incredible piece of technology, and I'm glad you raised it 'cause it's been a very significant focus of our investment, certainly in 2022 as we expect to drive more and more revenue through our software throughout the year. In fact, as we're shifting to a software-led company, our whole platform is going to be driven by our software itself. We're gonna see the rest of our company utilize our own software throughout the various different lines of business that we have. Again, if you think about it, Allen, we really have three major segments. We have self-service on our platform. We have a small business offering for the smaller companies or the divisions inside of larger companies. Then we have a full-on enterprise solution suite as well. Thank you, Allen. There's another call from Operator, do you wanna let that person in? 203, 4- Okay. Allen, I'm just gonna mute you here to go on to the next person. Thank you. Now I'm going to allow the 4686 number to ask their question. If you're having trouble unmuting yourself, you can also press star six. There you go. Hi there. Okay. This is too high tech for me. Sorry. Hi, guys. It's Lisa Thompson at Zacks. Oh, hi, Lisa. Could you a little bit talk about how the past year has progressed as far as demand and how you see it going forward? Is it a situation where more and more people are finding out about you and using you, and so growth just keeps increasing? Are you at a point, do you think, where you're actually gonna see seasonality in your business? It's an excellent question. Again, thank you. Let's first address the first question. More and more people are learning about us because we were a media company, so we run the largest network for recruiters and HR professionals. You know, we have 3.5 million social media touchpoints, 48,000 Twitter followers. But one of the areas that we've really invested in 2021 is really in our marketing department. Really just an incredible team doing great work. We publish articles every day, webinars, et cetera, and we're driving more and more leads through to our sales team, which we also grew throughout 2021. We're really benefiting from that exposure. We spent a lot of time and money on SEO, on ensuring that we're driving lots of traffic to our website and our various microsites, and are really able, you know, to really benefit from the URL that we have and all the traffic that we're generating. In terms of demand, not a day goes by where you don't talk about or read about the war for talent or the talent shortage or attrition rates or hiring rates, and we're part of that conversation. We are really at the epicenter of that conversation in terms of not just the articles, but the exposure that we have in various media channels and podcasts, et cetera. We're helping customers and clients really address and deal with those problems. Those problems aren't going away. These are not episodic problems. These are gonna be systemic problems. We really work with companies that have that maybe historically were only churning 15% of their employees are now churning 30% of their employees. It's a very serious number, and we're really part of that overall process. In terms of seasonality, you raise a great question. You know, we acquired four companies in 2021, and we're being very prudent in really recognizing that there could be some seasonality as some of the businesses that we acquired, and we're taking that very seriously as good stewards of capital. Thank you, Lisa. Given that. Really appreciate the question. Go ahead. Do you have a follow-up? Okay. Yeah. Given that we're at March 31 and the first quarter's over, what are your feelings of how this quarter turned out compared to this December quarter? Does everyone do this hiring at the end of the year, or everybody wait for a new budget in January? Yeah. Should we expect sequentially up revenues? At this time, we're not giving any guidance for 2022 and not for Q1 either. Our our acquisitions are not even 1 year old, and we really wanna see if there's seasonality in their business areas. That's probably what we'll talk about in terms of guidance. You know, the impact of the lost revenue that we did talk about in the call is a one-time impact, and we're quickly replacing that revenue with new clients and new software subscriptions. You know, when I look at what our growth has been, even with that revenue loss, I'm really very proud of our team's accomplishments and the solid traction that we've developed with our products. I'm looking forward to 2022. Okay. Do you have a feel at this point when you're gonna reach cash flow breakeven? Excellent. You know, we're very focused on achieving profitability and managing our operating expenses. Our monthly operating expenses have decreased over the last few months as we realize the expense synergies from our 2021 acquisitions. Our 2021 acquisitions, not that we made 21 acquisitions. From the acquisitions that we made in 2021. Our cash burn is very manageable, and we're getting more predictable with each passing month. That's a no answer. Okay. Do you have any idea what revenue level you need to reach to get there? Or does that just depend on- Yeah. You know, I think we talked about that. Yeah, we actually talked about that at the Q3 number. You know, our operating expenses are below $1.3 million on a monthly basis when you're extracting out amortization and stock-based compensation. We've been managing that really well. If our gross margins are somewhere in the 40% range, you know, you could sort of run the numbers, and we're hovering near there. We're both keeping our expenses controlled while investing in our software development and our marketing and our sales. At the same time, managing the growth of our revenue in line with ensuring that we could achieve profitability by managing our overall expenses. Okay. I don't see anyone else with their hand raised at this time. Please raise your hand if you do have a question. Okay, it looks like someone else has a question on the phone. Go ahead. Oh, hi, it's Allen again. For the bad debt that impacted Q4, you said there'll be some impact in Q1 also. Is it possible to give us a sense of what that might be? I wish Judy was on the call, our CFO. She was really close to those numbers, and she couldn't make it right now. Miles, do you wanna just take this one? Yeah, I can speak to that a little bit. Okay, great. Thanks. Yeah. With our on-demand business, it does involve the cost of labor of our recruiters and talent acquisition professionals that we're putting out on a gig basis. We did incur, you know, some, I would say, kind of non-material costs related to labor in January, and that trailed off before February. You know, non-material, but there's still some trailing impact. It would be reasonable to assume it would be less of an impact probably in 1Q than it was in 4Q? Yeah, very much so. Yeah. We're talking less than $250,000 in, you know, in cost. Thanks, Allen. Okay, it looks like no one else at this time is raising their hand for a question. Excellent. Just to conclude, just wanna thank everyone for joining the call. I've looked to how many attendees we had at this earnings call, and it's, I think twice as many as we had last call. I think that's a good trend. I wanna thank everyone for your continued support. If anyone needs additional information, you can reach me at evan@recruiter.com. You could also go check out our investor website, which is investors.recruiter.com. I wanna thank everyone for joining us today, and everyone have a good evening.