Record Quarter of $7.7 Million Revenue TORONTO, ON / ACCESSWIRE / November 23, 2021 / HIRE Technologies Inc. (TSXV:HIRE.V) (" HIRE " or the " Company "), a company focused on modernizing and digitizing human resources solutions, announces its financial results for the quarter ended September 30, 2021. All financial figures are in Canadian dollars unless otherwise noted.
- Revenue growth of 203% in Q3-2021 versus Q3-2020.
- Organic Growth 1 of 35% in Q3-2021 over Q3-2020.
- Gross margin of 44% in Q3-2021 versus 35% in Q3-2020.
- Positive adjusted EBITDA of $0.3 million in Q3-2021 versus an EBITDA loss of $0.1 million for Q3-2020.
- Cash balance of $2.4 million as at September 30, 2021 versus $0.4 million as at June 30, 2021. HIRE raised a total of $4.8 million in the third quarter for acquisitions and general corporate purposes.
- The Company completed the acquisition of Leaders and Co., Consulting in Governance and Leadership Inc. (" Leaders "), expanding HIRE's services into Montral, Canada's second largest employment centre.
- HIRE was named one of Canada's Top Growing Companies by The Globe and Mail (No. 39 of 448).
"HIRE achieved another record quarter, driven by the organic growth of our portfolio companies as talent recruitment remains strong across practically all sectors," said Simon Dealy, HIRE's Chief Executive Officer. "The past year has brought about many catalysts in human capital management, including a surge in demand for labour, competition for quality talent, a focus on diversity, equity and inclusion, and steady growth across many industries. Looking ahead, we are encouraged by positive market dynamics into the fourth quarter and 2022. We are delivering industry leading growth rates and are confident in our ability to continue the growth trajectory of our business."
Q3-2021 Financial Highlights
- Record revenue for the quarter at $7.7 million, an increase of $5.2 million over Q3-2020, with $4.0 million contributed from acquisitions made since the start of 2020. Hiring activity continues to be strong across most sectors in both the recurring contract and on occurrence permanent books.
- Industry leading year-to-date revenue growth of 144% for the nine months ended September 30, 2021 exceeds the weighted average of 16% for the Company's industry peers 2 .
- Gross margin increased to $3.4 million for Q3-2021, $2.5 million higher than Q3-2020. Gross margin was 44% as a percentage of revenue, a 9-point improvement over Q3-2020 and a sequential improvement of 6 points over Q2-2021. This was driven by a changing business mix, with higher on-occurrence permanent revenue relative to recurring contract revenue, 33% for the quarter, up significantly versus 16% for Q3-2020. This change was a result of the Company's rebalanced portfolio as a result of its two most recent acquisitions, Leaders and Taylor Ryan Inc., both of which specialize in executive search.
- Selling, general and administrative expenses were lower on a percent of revenue basis to 48% for Q3-2021 from 75% in Q3-2020, a 27-point improvement that demonstrates the value creating properties of the Company's shared services platform as well as the synergies being realized from the reorganization carried out in 2020.
- Positive adjusted EBITDA of $0.3 million in Q3-2021 versus an adjusted EBITDA loss of $0.1 million in Q3-2020 was due to favourable market conditions across most of HIRE's portfolio companies with recurring contract orders and on-occurrence permanent orders up 70% and 46%, respectively. Of note, recurring contract revenue was up 139% for Q3-2021.
- Net loss of $0.9 million ($0.01 per share) was improved against a net loss of $4.1 million ($0.09 per share) for Q3-2020. Adjusted net loss for Q3-2021 was $0.2 million ($0.00 per share), flat versus Q3-2020. Of note, this was the third consecutive quarter where HIRE's portfolio companies demonstrated bottom line profitability from operations in aggregate across the portfolio.
Outlook
With favourable prevailing market conditions, HIRE expects organic and acquisitive growth will continue to positively influence financial performance. HIRE's key areas of focus are as follows:
- Organic growth: maximize revenue through cross-selling, geographic expansion, and service diversification.
- Acquisitions: focus on identifying and pursuing accretive acquisitions.
- Financial performance: continue to strengthen balance sheet and optimize operating performance through synergies and scale.
- Technology: expand SaaS technology solutions to deliver on a technology-first strategy.
- Investor relations: enhance investor relations program to increase visibility and shareholder engagement.
About HIRE Technologies Inc.
HIRE is investing in and shaping the future of human resource management with a technology-first focus, by consolidating and modernizing the staffing marketplace. The Company owns and operates staffing firms as well as platform technology that it uses to help those firms become more technologically advanced. The Company is a disciplined capital allocator due to its technology DNA and extensive experience in building and growing staffing companies of all types. HIRE has a large recurring revenue base and helps clients manage change in the workplace in order to achieve success. For more information, visit hire.company .
https://www.accesswire.com/674534/HIRE-Technologies-Reports-Record-Quarter-of-77-Million-Revenue-with-Organic-Growth-of-35