H1 revenue growth of 56% for HR management company
Among the greatest challenges for employers today is staffing. Whether it’s recruiting or retention, employers have never faced such difficulties in meeting their labour needs.
What is a serious problem for most companies is an opportunity for another.
HIRE Technologies Inc. (TSXV:HIRE / OTC:HIRRF) is “building a network of technology, staffing and HR consulting companies” that “resolve challenges of modern-day employment economies.”
HIRE is committed to filling the increasingly large and numerous holes in the labour requirements of employers.
Not surprisingly, HIRE Technologies’ business model has been generating robust and consistent growth. On August 29, 2022, HIRE announced its Q2 results for 2022: the seventh consecutive quarter of sequential record revenue.
For the first half of 2022, HIRE reported revenue of CAD$18.5 million. The $6.6 million in year-over-year growth represents a 56% increase versus 2021.
Second quarter revenue hit a new record of CAD$9.4 million. Accompanying this revenue growth was a jump in gross margin.
The 54% gross margin reported by HIRE in Q2 is a 16-point increase from the 38% gross margin reported one year ago. This translates into more than a 40% increase in margin.
The combined improvements in revenue and gross margin also showed up on the bottom line. Adjusted EBITDA (in Canadian dollars) reversed from -$0.6 million in Q2 2021 to $0.3 million in Q2 2022.
H1 comparables were similarly strong. HIRE reported a year-over-year 12-point increase in gross margin for the first half of 2022 (up to 52%).
Adjusted EBITDA for H1 reversed from -CAD$0.5 million to CAD$1.3 million. Adjusted net income for H1 also reversed. HIRE reported adjusted net income of CAD$0.2 million for the first half, versus an adjusted net loss of CAD$1.2 million for H1 2021).
CEO Simon Dealy framed the robust results for investors.
“Our brands benefitted from strong client demand in the second quarter. Demand outstripped the supply of talent in HIRE’s key industry verticals, and we were able to maintain industry leading organic growth.”
“Demand outstripped the supply of talent.”
That’s becoming a consistent refrain in the corporate world. It spells continued growth for HIRE.
After seven consecutive quarters of record revenue, it now appears that the Company is turning the corner financially. And HIRE is already positioned to continue this upward trajectory.
HIRE Technologies is the only (publicly listed) consolidator of HR consulting, technology and staffing in Canada.
Once upon a time, “headhunting” firms like HIRE were focused almost exclusively at the top of the labour pyramid: executive appointments and top-level talent for key operational positions.
Not any longer. Today, employers are facing recruiting issues from maintenance personnel all the way to C-suite executives.
Recognizing these needs, HIRE’s strategic brands cover the spectrum of recruiting needs for employers.
- Skilled trades, healthcare, general labour (Kavin Group)
- IT staffing, including cyber security, data analysis and software engineering (ProVision)
- Accounting, administrative, legal and finance (PTC Recruiting)
- Real estate and construction (Taylor Ryan)
- Executive recruitment (Leaders International, The Headhunters)
With strong, consistent revenue growth, increasingly robust margin, and an improving bottom line, this is a corporate strategy that is producing results for the shareholders of HIRE.
Over the longer term, HIRE Technologies’ vision is “to become a global leader in the transformation and growth of staffing and recruiting agencies through the integration of AI and other digital technologies, to redefine the business of talent acquisition for employers, candidates, and agency partners.”
It is a corporate strategy and a vision that is perfectly positioned for the needs of today’s economy.
Current, difficult market conditions have taken most public companies to their lows for the year. This has left many well-run companies bargain-priced for investors.
What forward-looking investors will be doing at present is identifying strong investment candidates for the next bull run in markets.
A number of increasingly challenging economic issues may limit growth opportunities for many public companies going forward. An exception to this rule can be those public companies that offer solutions to these economic issues.
HIRE Technologies offers solutions for the full spectrum of labour requirements for today’s employers. It’s a business niche that will be a nice fit in the portfolio of many investors.
FULL DISCLOSURE: This is a paid article of The Market Herald.