Nixxy, Inc. Q3 FY2021 earnings call

• Successfully closed a $13.8 million uplift round in early July and completed two key acquisitions. - Appointed new team members such as Xuan Smith as CTO and Angela Copeland as VP of Marketing. - Expanded the technology lead recruiting solution. - Improved customer diversity with technology being the largest vertical at 20% and healthcare as the second largest. - Saw significant growth in new customers from over 60 to over 300, with average spend still over $8,000 per client. - Launched the AI powered solution Amplify, improved the AI scoring engine, and launched jobs.recruiter.com career community.

Revenue increased 43% sequentially from the second quarter of 2021 to $6.3 million. The higher margin software and marketplace subscriptions, as well as the Recruiter on Demand segments accounted for over 60% of the total revenue in the third quarter. Marketplace solutions saw a 360% growth, software subscriptions grew by 165% over the second quarter, and permanent placement fees increased by 114% over the second quarter. Gross margins improved to over 36% in the third quarter, up from under 33% in Q2. The revenue mix changed significantly with on demand recruiting comprising over 50% of the overall revenue mix for the first time, while software and marketplace solutions were around 12% of the overall revenue.

• Expect continued extraordinary growth trajectory. - While average dollar spend per customer may fall as marketplace solution offerings with lower average cost but higher margins expand, the number of overall clients is expected to continue increasing. - Confident in the ability to continue growing organically.

• Forward looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated, including risks described in the company's filings with the SEC.

Q: How do you guys plan to approach sales and marketing?

A: Certainly, the sales and marketing team has tripled in size. The company has a strong brand with significant SEO traffic to the website, runs four of the 10 largest LinkedIn groups, and has a community of over 850,000 recruiters and HR professionals. They are tracking customer acquisition cost closely as customer count has grown from over 60 to over 300 since the NASDAQ listing.