Connect with us
Prague Gaming & TECH Summit 2025 (25-26 March)

Fintech

HIRE Technologies Reports Record Quarterly Revenue and Gross Margin for Q1-2021 Including 89% YoY Revenue Growth and 19 Point Gross Margin Improvement

Published

on

Reading Time: 6 minutes

Toronto, Ontario–(Newsfile Corp. – May 26, 2021) – HIRE Technologies Inc. (TSXV: HIRE) (“HIRE” or the “Company”), a company focused on modernizing and digitizing human resources solutions, announces its financial results for the quarter ended March 31, 2021.

  • Revenue growth of 89.1% in Q1-2021 versus Q1-2020.
  • Recurring contract placement revenue growth of 43% in Q1-2021 over Q1-2020.
  • Gross Margin of 42.4% for Q1-2021, the third consecutive quarter of increased margins.
  • Net income of $2.2 million, $0.04 per share ($0.03 on a diluted basis).
  • EBITDA of $2.6 million.
  • Organic Growth of 7% for this quarter more than double the growth rate achieved by industry peers (1.8%)1.

“Our business model, ability to execute, and the strength of our brands across Canada were fully demonstrated in the first quarter of 2021,” said Simon Dealy, HIRE’s Chief Executive Officer. “To date, in 2021, economic growth is evident and signals a significant rise in demand for staffing solutions. Organic growth was very strong, with our subsidiaries reporting a 219% increase in job requests, a 28% increase in client acquisitions, and a 21% increase in completed placements. We are very optimistic about the next steps in the execution of our strategic plan, with continued organic growth and profitability across our subsidiaries and a steady pipeline of acquisitions.”

Q1 2021 Financial Highlights

  • Record revenue of $5.5 million was 89.1% higher than $2.9 million in Q1-2020 with $3.1 million contributed from acquisitions made in 2020.
  • Revenue Diversification: 53% of the incremental YoY revenue from acquisitions was driven by recurring revenue contracts.
  • Recurring contract placement revenue of $3.9 million ($2.7 million in Q1-2020) comprised 71% of Q1-2021 revenue (93% in Q1-2020).
  • High margin on-occurrence placements now comprise 29% of our book (7% in Q1-2020).
  • Record Gross Margin: $2.3 million in gross profit for Q1-2021 ($0.7 million in Q1-2020). As a percentage of revenue this is an 18.6 point improvement to 42.4%. This is the third consecutive quarter of improvement and is attributable to our rebalanced portfolio mix.
  • Strong bottom line performance: EBITDA of $2.6 million exceeded Q1-2020 by over $3.2 million. This included $0.4 million in realized gains on convertible debenture derivatives and $2.5 million in unrealized gains on mark-to-market. Adjusted EBITDA of $0.05 million was in-line with the prior year. Net income of $2.2 million ($0.04 per share or $0.03 fully diluted) was $3.0 million higher than Q1-2020 (net loss of $0.7 million or $0.02 per share).
  • Adjusted net loss was $0.3 million ($0.00 per share) for Q1-2021, versus $0.03 million for Q1-2020 ($0.00 per share).
  • See notes 2, 3 & 4 below for additional details.

Outlook

  • HIRE plans to add more partners inspired to join the “Powered by HIRE Technologies” growth platform from our strong pipeline of acquisition opportunities. Our acquisition pipeline has expanded meaningfully year-to-date.
  • HIRE looks to strategically add to its technology offerings, to enhance organic growth opportunities for our partners and grow our recurring revenue streams.

Other Updates

  • On April 1, 2021, the Company acquired Pulsify, a cloud-based people management application designed around data analytics, meeting facilitation, immediate feedback, predictive insights, and the proprietary Net Manager ScoreTM.
  • On May 12, 2021, the Company announced a brokered private placement of up to $5,000,000 convertible debenture units.

Conference Call Details

HIRE will host a conference call to review its earnings results on Thursday, May 27, 2021 at 10:00 a.m. ET. The conference call will be webcast at: http://services.choruscall.ca/links/hirecompany20210527.html.

The conference call will also be available by dialing 1-800-319-4610 or 1-604-638-5340. Please dial in 10 minutes before the start of the call.

Selected Financial Highlights

Period ended >> 3 months ended 3 months ended
March 31, 2021 March 31, 2020
$ $
Net income (loss) 2,247,470 (744,965)
Interest 73,298 16,559
Amortization 124,212 22,650
Depreciation 33,291 69,452
Tax 111,271 (4,660)
EBITDA 2,589,542 (640,964)
Add:    
Restructuring & Other Non-operating items  297,058  717,531 
Realized (gain) loss on convertible debenture derivatives  (421,461)  – 
Unrealized (gain) loss on mark-to- market (2,570,662)  – 
Future contingent remuneration from acquisitions  100,534  – 
Share based compensation expense  82,956  – 
Rent expense  (27,812)  (26,548) 
Adjusted EBITDA  50,155  50,019 

 

Period ended >> 3 months ended 3 months ended
March 31, 2021 March 31, 2020
$ $
Net income (loss) for the Period 2,247,470 (744,965)
Add:      
Restructuring & other non-operating items  297,058  717,531 
Realized (gain) loss on convertible debenture derivatives  (421,461)  – 
Unrealized (gain) loss on mark-to-market  (2,570,662)  – 
Future contingent remuneration from acquisitions  100,534  – 
Share based compensation expense  82,956  – 
Adjusted net loss  (264,105)  (27,434) 
Adjusted net loss per share  (0.00)  (0.00) 

 

This earnings press release, which was approved by the Company’s Board of Directors on the Audit Committee’s recommendation should be read in conjunction with HIRE’s Annual Financial Statements and MD&A, which have been posted on SEDAR at www.sedar.com.

All financial figures are in Canadian dollars unless otherwise noted.

Advertisement

Non-IFRS Measures and Footnotes

This news release refers to certain financial measures that are not defined by International Financial Reporting Standards (“IFRS”), including earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”), adjusted net earnings (loss), and gross margin.

  1. Randstad N.V., The Adecco Group, Robert Half International Inc., Upwork Inc., ManpowerGroup, Learning Technologies Group, Kforce Inc., TrueBlue, Resources Connection Inc., and The Caldwell Partners International Inc.

  2. Gross margin is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. The Company defines Gross margin as revenue less cost of services. Gross margin should not be construed as an alternative for revenue or net earnings (loss) determined in accordance with IFRS. The Company believes that Gross margin is a meaningful metric in assessing the financial performance and operational efficiency of the Company and its subsidiaries (the “Group”).
  1. EBITDA and adjusted EBITDA are non-IFRS financial measures that do not have standardized meanings prescribed by IFRS. EBITDA is defined as net income (loss) adjusted to exclude interest, taxes, depreciation, and amortization. It provides management with insight into HIRE Technologies’ operating performance without the impact of significant accounting policies related to depreciation and amortization, financing, and taxes. Adjusted EBITDA is defined as EBITDA, excluding restructuring and other non-operating items, unrealized gains or losses on derivative financial instruments recognized as part of financings, other unrealized fair value through profit or loss mark-to-market gains or losses, earn-out payments treated as future contingent remuneration from acquisitions, and share based compensation expenses. Adjusted EBITDA also includes rent payments, which are not accounted for in EBITDA following the adoption of IFRS 16 Leases. The Company believes that EBITDA and adjusted EBITDA are useful measures in evaluating the performance of the Group.

  2. Adjusted net income (loss) is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS. The Company defines adjusted net income (loss) as net income (loss) excluding restructuring and other non-operating items, unrealized gains or losses on derivative financial instruments recognized as part of financings, other unrealized fair value through profit or loss mark-to-market gains or losses, earn-out payments treated as future contingent remuneration from acquisitions, and share based compensation expenses. The Company believes that adjusted net earnings (loss) is a meaningful metric in assessing the Group’s financial performance.

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 our clients manage change in the workplace in order to achieve success.

For further information, please contact:

HIRE Technologies Inc.
Simon Dealy, Chief Executive Officer
Phone: (647) 868-9611
Email: [email protected]
Web: hire.company

Nikhil Thadani, Investor Relations (Sophic Capital)
Phone: (647) 670-0997
Email: [email protected]

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

Forward-Looking Information

This press release contains “forward-looking statements” or “forward-looking information” (collectively referred to hereafter as “forward-looking statements”) within the meaning of applicable Canadian securities legislation.

All statements that address activities, events or developments that HIRE Technologies expects or anticipates will, or may, occur in the future, including statements about HIRE’s business prospects, future trends, plans, and strategies, including those under the heading “Outlook”, the Company’s prospects for completion of additional acquisitions and future organic growth, and expected benefits from business activities are forward-looking statements. In some cases, forward-looking statements are preceded by, followed by or include words such as “may”, “will”, “would”, “could”, “should”, “believes”, “estimates”, “projects”, “potential”, “expects”, “plans”, “intends”, “proposes”, “anticipates”, “targeted”, “continues”, “forecasts”, “designed”, “goal”, or the negative of those words or other similar or comparable words. Although the management of HIRE believes that the assumptions made and the expectations represented by such statements are reasonable, there can be no assurance that a forward-looking statement herein will prove to be accurate. In making such forward looking statements, the Company has assumed that it be able to continue to complete acquisitions on terms favorable to the Company.

Advertisement

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of HIRE to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Risks and uncertainties applicable to the Company, as well as trends identified by the Company affecting it and the staffing industry can be found in the Company’s March 31, 2021 MD&A and its continuous disclosure record available on SEDAR. Although HIRE has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, or intended.

Such cautionary statements qualify all forward-looking statements made in this press release. HIRE undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/85325

Powered by WPeMatico

Fintech

Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners)

Published

on

fintech-pulse:-your-daily-industry-brief-(plaid,-warner-bros.,-transunion,-monevo,-finvolution,-credittech,-glenbrook-partners)

 

Op-Ed: The Dawn of a Fintech Spring

As the financial technology sector continues to navigate the complex post-pandemic landscape, recent developments suggest a revitalized period of growth and innovation. Key players are making bold moves, partnerships are forming, and underserved markets are gaining attention. In this briefing, we explore the latest headlines and what they reveal about the industry’s trajectory.


Plaid Reports Growth in Revenue and Usage Rates

Plaid, the connective tissue of the fintech ecosystem, has shown remarkable resilience and growth. The company’s CEO recently highlighted a surge in both revenue and usage rates, describing the current period as a “fintech spring.” This growth comes as consumer demand for seamless financial solutions remains high, despite macroeconomic challenges.

Plaid’s ability to maintain relevance is tied to its strategic partnerships and continuous innovation. By enabling applications like Venmo and Robinhood to thrive, Plaid underscores the importance of integration in fostering user trust and utility.

Source: Bloomberg


Warner Bros. Discovery Strengthens Board with Fintech Leadership

Warner Bros. Discovery is diversifying its board by bringing in SoFi CEO Anthony Noto and outgoing IAC Chief Executive Joseph Levin. This move signals the increasing influence of fintech expertise beyond traditional financial sectors. With Noto’s leadership in digital banking and Levin’s extensive background in technology-driven enterprises, Warner Bros. Discovery is positioning itself for a future that seamlessly blends media and financial technology.

This cross-industry synergy could lead to innovative offerings, bridging gaps between entertainment platforms and fintech applications, such as micro-investing and personalized financial recommendations for content consumers.

Source: Reuters


TransUnion to Acquire Monevo

Credit reporting agency TransUnion has announced its plans to acquire Monevo, a leading credit prequalification and distribution platform. This acquisition aims to enhance TransUnion’s capabilities in the credit technology space, allowing it to offer more personalized and accessible financial solutions to consumers.

Advertisement

By integrating Monevo’s platform, TransUnion is expected to provide lenders with advanced tools to better assess creditworthiness while empowering consumers with prequalified loan offers. This development is particularly timely as consumers increasingly seek transparency and efficiency in credit processes.

Source: TransUnion Press Release


FinVolution Highlights CreditTech Opportunities in Southeast Asia

Ming Gu, Senior Vice President of FinVolution, emphasized the transformative potential of CreditTech in Southeast Asia during his address at the Asian Financial Forum. With a significant portion of the region’s population still underserved by traditional financial institutions, CreditTech presents a unique opportunity to bridge the gap.

Gu pointed out that leveraging AI and data analytics can help tailor credit solutions for diverse needs, ultimately fostering financial inclusion and economic growth in these emerging markets. FinVolution’s insights reaffirm the critical role of fintech in empowering underserved communities.

Source: PR Newswire


Glenbrook Partners Launches On-Demand Learning Program

Payments consultancy Glenbrook Partners has introduced an on-demand learning platform designed to educate professionals in the payments industry. This initiative is expected to address the growing need for skilled talent as digital payment ecosystems expand globally.

The program offers modular content covering foundational and advanced topics, catering to professionals at various stages of their careers. By equipping individuals with in-depth knowledge, Glenbrook is contributing to the industry’s sustainability and growth.

Source: PR Newswire


Analysis and Takeaways

These stories collectively highlight a few key trends shaping the fintech landscape:

  1. Resilient Growth: Plaid’s trajectory reaffirms that consumer-centric innovations drive sector resilience even during economic uncertainties.
  2. Cross-Industry Integration: Warner Bros. Discovery’s board appointments underline fintech’s permeation into traditionally non-financial domains.
  3. Strategic Acquisitions: TransUnion’s acquisition of Monevo showcases how established players are leveraging fintech to enhance service offerings.
  4. Global Inclusivity: Efforts by FinVolution and others highlight the role of fintech in addressing global financial disparities.
  5. Education and Skill Development: Initiatives like Glenbrook’s program reflect a proactive approach to fostering a knowledgeable workforce.

 

The post Fintech Pulse: Your Daily Industry Brief (Plaid, Warner Bros., TransUnion, Monevo, FinVolution, CreditTech, Glenbrook Partners) appeared first on News, Events, Advertising Options.

Advertisement
Continue Reading

Fintech

io.finnet and Cede Labs Partner to Transform Multi-Exchange Portfolio Management for Institutions

Published

on

io.finnet-and-cede-labs-partner-to-transform-multi-exchange-portfolio-management-for-institutions

 io.finnet, a leader in digital asset infrastructure, has partnered with  Cede Labs, to introduce a solution for centralized exchange (CEX) connectivity. This collaboration provides institutional clients with a streamlined, secure platform for comprehensive multi-exchange portfolio management.  Through this integration, io.finnet clients can now access leading exchanges such as Binance, Coinbase, Bybit, OKX, Kraken and more with features tailored for institutional-grade governance and operational efficiency.

Institutional digital asset management faces increasing complexity as businesses demand more secure and efficient tools to oversee diverse portfolios.  With 70% of institutional investors expecting a surge in digital asset-focused funds, the need for secure and efficient multi-exchange solutions has never been greater.

“Businesses require solutions that simplify the complexity of managing assets across exchanges while maintaining the highest standards of security.” said Jacob Plaster, CTO of io.finnet. “Through our partnership with Cede Labs, clients can seamlessly connect their exchange accounts and manage their entire portfolio within a unified, secure environment.”

Unlike traditional offerings, io.finnet’s integration with Cede Labs introduces secure account-linking capabilities, allowing clients to effortlessly connect and unlink their exchange accounts while adhering to strict governance protocols. Unified tracking capabilities further enhance this solution, enabling users to monitor their portfolios across all connected exchanges in real-time. This includes the ability to oversee spot and trading wallets, derivatives positions, and sub-accounts under a single pane of glass, a feature few competitors offer at this scale.

Pierre Ni, CEO of Cede Labs, highlighted the impact on institutional workflows: “We are proud to collaborate with io.finnet to redefine digital asset custody and management. By unlocking new use cases for corporates, market makers, liquid funds, foundations, and fintechs through CEX connectivity, we believe io.finnet can grow to become one of the top self-custody players.”

This partnership is particularly timely as market demand for interoperable solutions continues to rise. The integration will eliminate the need to navigate multiple platforms and provide institutions with real-time visibility across their digital asset holdings, enabling seamless exchange connectivity and enhanced risk management.

io.finnet is committed to enhancing its exchange connectivity capabilities with deposits, withdrawals, trades, and sub-account transfers to further streamline asset management workflows. Stay tuned for exciting updates as we expand the possibilities of our Exchange Connectivity feature.

The post io.finnet and Cede Labs Partner to Transform Multi-Exchange Portfolio Management for Institutions appeared first on News, Events, Advertising Options.

Continue Reading

Fintech

Blocks & Headlines: Today in Blockchain (

Published

on

blocks-&-headlines:-today-in-blockchain-(

 

Welcome to Blocks & Headlines, your comprehensive daily briefing on the transformative world of blockchain. Today, we explore groundbreaking partnerships, economic innovations, and blockchain-powered initiatives redefining the future.

Sony Ventures Into Blockchain With New Identity Solutions

Sony has unveiled its latest blockchain-based digital identity solution designed to enhance privacy and security in the online space. This innovative system uses decentralized technology to manage digital credentials, making identity verification seamless and secure.

Sony’s venture reflects a broader trend among tech giants exploring blockchain’s potential to reshape data privacy and authentication systems.

Source: Sony Press Release


TRON’s Daily Revenue Skyrockets 119% in 2024

TRON has reported a staggering 119% increase in daily revenue, a testament to its innovative blockchain economic models. By leveraging smart contracts and a scalable infrastructure, TRON continues to attract developers and businesses seeking cost-efficient blockchain solutions.

This growth positions TRON as a leading player in the competitive blockchain ecosystem, setting benchmarks for others to follow.

Source: Bitcoin.com


MIGMIG Partners With XT.com to Bring Blockchain Rewards

MIGMIG, a blockchain gaming and rewards platform, has partnered with XT.com to expand its reach and user engagement. This collaboration aims to deliver unique blockchain-powered rewards while enhancing the gaming experience for users worldwide.

Advertisement

The partnership highlights the increasing intersection of blockchain technology and entertainment, opening new avenues for user interaction.

Source: Bitcoinist


Nano Labs Supports the Inaugural Presidential Crypto Ball

Nano Labs has announced a partnership with the Inaugural Presidential Crypto Ball, emphasizing its commitment to fostering blockchain awareness. This high-profile event aims to bridge the gap between blockchain innovators and policymakers, paving the way for broader adoption.

The initiative underscores the importance of collaboration between the blockchain community and governmental bodies to shape the future of digital assets.

Source: PR Newswire


Bybit Card Partners With EnTravel for Luxury Travel Perks

Bybit has teamed up with EnTravel to offer its cardholders exclusive discounts on luxury travel experiences. This partnership integrates blockchain-powered payment solutions with high-end travel services, providing users with unparalleled convenience and value.

The move exemplifies how blockchain technology can enhance traditional industries, offering innovative solutions tailored to modern consumer needs.

Source: PR Newswire


Key Insights and Industry Trends

  1. Decentralized Identity: Sony’s blockchain-based solution addresses growing concerns over online security and privacy.
  2. Economic Innovations: TRON’s revenue surge highlights the profitability of scalable blockchain networks.
  3. Gaming and Blockchain: Partnerships like MIGMIG and XT.com showcase the potential of blockchain in entertainment.
  4. Policy and Collaboration: Nano Labs’ involvement in the Crypto Ball underscores the importance of industry-government dialogue.
  5. Luxury Integration: Bybit and EnTravel demonstrate blockchain’s ability to enhance traditional services.

 

The post Blocks & Headlines: Today in Blockchain ( appeared first on News, Events, Advertising Options.

Advertisement
Continue Reading

Trending