WANTED Technologies Reports an increase of 16% in the Company's recurring revenue base in US dollars (23% in CAD dollars) for the Second Quarter of Fiscal 2015

Q2-2015 Highlights

• Revenues of $2,483,815, an increase of 5%, or $122,898 compared to revenues of $2,360,917 in the second quarter of fiscal 2014. Note that revenues from the second quarter of the prior year included an amount of $300,281 from a reseller partner agreement that terminated in June 2014. Excluding the revenues from this partner, revenue grew $423,179, or 21% over the prior year.
• In October, Meredith Amdur was appointed as new CEO to lead WANTED into its next phase of growth.
• Net loss of $124,188 ($0,005 per share) compared to a net income of $1,015,618 ($0,042 per share) in the second quarter of fiscal 2014, a decrease of $1,139,806 mostly explained by the combination of two non-recurring elements, including the change in management.
• Despite the termination in June 2014 of a significant reseller agreement, increase of 25% in trailing twelve-month revenues, to reach $10,334,066 for the twelve-month period ended December 31, 2014.
• Growth of 16% in the Company's recurring revenue base in US dollars (23% in CAD dollars), from an annualized value of US$7.0 million as of December 31, 2013 (excluding US$1.1 million reported in prior year as recurring revenue from a reseller partnership terminated in June 2014) to US$8.1 million as of December 31, 2014.
• In January 2015, release of the new WANTED Analytics^TM International product for the UK, China, Singapore and Australia, offering real time hiring demand and candidate supply analysis.
• WANTED continues to adapt its products and invest in direct sales to accelerate the international deployment of its solution and try to increase rapidly its global market footprint for its big data analytics solutions in the Human Capital Management sector.                                                                   

NEW YORK CITY and QUEBEC CITY, Feb. 24, 2015 /CNW Telbec/ - WANTED Technologies (TSXV: WAN), the leading supplier of big data analytics for the human capital marketplace, reported today revenues of $2,483,815 for the second quarter ending December 31, 2014, a 5% gain over the same quarter of the prior year. For the first six months of fiscal 2015, revenues increased 6% to reach $4,625,687 compared to $4,348,269 for the first six months of the previous fiscal year. Note that the revenues of $2,360,917 recorded in the second quarter of fiscal 2014 ended December 31, 2013 included revenues totalling $300,281 from a reseller partnership that terminated in June 2014. Excluding revenues from this reseller from the prior year, revenue grew by $423,179 or 21% over the prior year.

The Company also reported a net loss of $124,188 ($0,005 per share) for the second quarter of fiscal 2015 compared to a net income of $1,015,618 ($0,042 per share) in the second quarter of fiscal 2014, a decrease of $1,139,806. As the Company continues to innovate in the market and expand its customer footprint, including the recent launch of an international version of its services, the combination of two non-recurring elements totalling approximately $930,000 explain the vast majority of this negative variance of $1,139,806. While non-recurring expenses of approximately $450,000 were recorded in the second quarter of fiscal 2015 from a change in management, the second quarter of prior year benefited from non-recurring tax credits receivable amounting to $480,000 recorded against the research and development expenses. Stock-based compensation expenses of $160,199 recorded in the second quarter of fiscal 2015 also contributed to this negative variance. All amounts are in Canadian dollars, unless otherwise indicated.

"WANTED continues to deliver on its plan to expand customer reach globally and enhance its database and product value to drive long term revenue growth. The second quarter results are indicative of the steady demand among our key corporate HR and staffing customers, said Meredith Amdur, WANTED's President and CEO.  "We doubled the size of our direct sales force since the second quarter a year ago, an investment we will continue to leverage as product roll-out continues."

Excluding any revenue from the partnership that ended in June 2014 from the prior year results, quarterly revenues derived from the combined Corporate and Staffing sectors increased 57% in fiscal 2015 and represented 34% of total revenues, compared to 26% in the prior year.

"The roll-out of WANTED's international data and analytics solution continues to enhance the value of our existing talent sourcing tool. We will be expanding to 20 territories over the next 12 months, enabling the Company to better meet the needs of many multinational corporations and clients, up to a third of whose employee base is outside of North America, by offering them  a reliable global view of an increasingly cross-border market for key skills and talent."  

"Along with growing penetration of cloud-based software solutions for human capital management, we are seeing greater sophistication and demand from our corporate HR customers for data and intelligence tools that will give them an edge in the competitive market for critical skills and long term talent management and retention," Amdur said. "WANTED arms hiring managers and recruiters with employment market intelligence, competitive benchmarks and detailed skills data to better anticipate demand, cost and time required to fill jobs and optimize talent sourcing strategies."

As of December 31, 2014, contracts in hand, in US dollars, had an approximate value of 8.1 million dollars in annualized recurring revenues, an increase of 1.1 million dollars or 16% over an annualized recurring revenue book of 7.0 million dollars as of December 31, 2013 (excluding US$1.1 million reported in prior year as recurring revenue contracts from a reseller partnership terminated in June 2014).

At the end of second quarter of fiscal 2015, 70% of the recurring revenue base was supported by contracts from the Staffing, Corporate and Government sectors. This compares to 65% at the end of the corresponding quarter of the previous year (adjusted to exclude revenues associated with the reseller partner terminated in June 2014).

Operating costs for the second quarter of fiscal 2015 totalled $2,642,732, an increase of $1,410,066 over the same quarter of prior year, of which, approximately $930,000 was caused by the non-recurring fees associated with management change and the non-recurring tax credits recorded in prior year mentioned above. Excluding these two elements, the increase would have been of approximately $480,000, or 28%, for the most part due to investments in research and development and marketing and selling as the Company continues to innovate in the market and expand its footprint, both in North America and internationally. Note also that the issuance of 650,000 stock options during the quarter triggered an increase in stock-based compensation expense of $154,930.

For the first six months of fiscal 2015, operating costs totalled $4,643,242 compared to $2,640,316 for the first six months of the previous fiscal year, an increase of $2,002,926 or 76%. This significant increase is also mostly due to the combination of the non-recurring elements described above and additional investments in research and development and marketing and selling for growth. Also, during the first six months of fiscal 2015, a total of 1,530,000 stock options were issued, increasing the stock-based compensation expense by $395,602 over the corresponding period of prior year.

EBITDA for the second quarter of fiscal 2015 was a negative $35,408, compared to a positive EBITDA of $1,215,854 in the second quarter of fiscal 2014, a negative variation of $1,251,262. For the first six months of fiscal 2015, EBITDA totalled $251,367, compared to an EBITDA of $1,798,689 in the first six months of the previous year, a decrease of $1,547,322. As noted above, the EBITDA was negatively affected by the two non-recurring items totalling approximately $930,000, by stock based compensation and investments for growth. EBITDA represents the net income before net finance costs excluding gain or loss due to variation in foreign exchange, income taxes on net income, and amortization and impairment of property, plant and equipment and intangible assets. As International Financial Reporting Standards do not provide a standardized definition for this measure, it may not be comparable to similar measures used by other companies.

The net loss for the second quarter of fiscal 2015 was $124,188, or $0.005 per share. This compares to a net income of $1,015,618 in the second quarter of fiscal 2014 or $0.042 per share.

Financial position

As at December 31, 2014, WANTED had $6,369,526 in cash and monetary investments, including $4,037,852 in redeemable term deposits, compared with $6,724,870 as at June 30, 2014. This decrease of $355,344 in the Company's liquidity mostly results from investment in additional infrastructure to support the new international product offering that resulted in cash disbursements of $412,388 and payment of $93,435 on capital leases related to the purchase of computer equipment. These disbursements were however partially offset by the issuance of 392,000 common shares following the exercise of stock options for a total cash consideration of $156,800.

As at December 31, 2014, total assets stood at $11,971,886 compared with $11,955,516 as at June 30, 2014, an increase of $16,370.

Those interested will be able to access the information on the December 31, 2014 unaudited interim consolidated financial statements, the notes thereto and the management discussion and analysis via the Internet at www.sedar.com and at the Company's website, www.wantedtech.com, as of Tuesday, February 24, 2015.

About WANTED Analytics™

WANTED Analytics™ is a cloud-based, global data science tool, made up of more than one billion records that help recruiting organizations make better decisions faster with real-time business intelligence on jobs, employers, and talent. Analytics brings together, years of hiring demand and talent supply data to create a true talent intelligence platform for hard-to-fill positions. In addition to providing its own analytical products, WANTED partners with other organizations who access WANTED's data and analytics within their ATS and other CRM systems automatically through APIs.

Clients in the staffing, HR, RPO, media, and government sectors use WANTED Analytics™ to find sales leads, analyze employment trends, gather competitive intelligence, forecast economic conditions, and source hard-to-fill positions.

About WANTED Technologies Corporation

WANTED Technologies (TSX-V:WAN) provides real-time data analytics for the talent marketplace. Founded in 1999, the company's headquarters are in Quebec City, Canada, and it maintains a US-based subsidiary with primary offices in New York City. WANTED began collecting detailed Hiring Demand data in June 2005, and currently maintains a database of more than one billion unique job listings. For more information or to sample WANTED's services, visit www.wantedanalytics.com.

WANTED is also the exclusive data provider for The Conference Board's Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE WANTED Technologies Corp.

Related Links

http://www.wantedtech.com