This was the first quarter of positive EBITDA for the Company. Revenues for the second quarter of 2001 were $16.5 million, up from $9.8 million in the second quarter of 2000.
Headhunter.net grew its resume database to 2.3 million resumes, up from 1.3 million resumes at the end of the first quarter 2001, through its agreement with Yahoo!(R)Careers and various other consumer marketing programs. Job searches jumped to more than 100 million in the second quarter, a 66% sequential increase from the first quarter of 2001.
We achieved positive cash flow in the second quarter and increased our cash position to $14 million, stated Robert M. Montgomery, chief executive officer of Headhunter.net. Our positive results were due to more efficient spending on sales and marketing as we transitioned our online advertising to support our alliance with Yahoo!(R)Careers. We are very pleased with our second quarter’s financial and operating performance in light of the soft economy and its effects on corporate hiring demand, concluded Mr. Montgomery.
We continue to be effective in targeting job markets with growing demand, stated Ronald T. Self, president and chief operating officer of Headhunter.net. We focused our sales and marketing efforts on small and medium enterprises (SME) during the second quarter and found this market had strong growth potential as many companies in this range had not yet been exposed to online job advertising. In response to market demand, we more than doubled our SME sales staff during the quarter.
Our growth in the healthcare market continued to accelerate due to increased industry alliances and our dedicated healthcare unit. Since the first of this year, healthcare jobs rose to one of the top five leading job categories on Headhunter.net’s site. We believe this shift in markets highlights both the success of our sales and marketing strategy and the continued broadening demand for our services, stated Mr. Self.
Revenue for the second quarter of 2001 rose 69.5% to $16.5 million compared with revenue of $9.8 million in the second quarter of 2000. Second quarter 2001 revenues declined 2.7% sequentially from $17.0 million in the first quarter of 2001. The decline in sequential revenues was primarily related to soft demand from the corporate market, particularly in the IT and telecom sectors, offset somewhat by higher revenue from the small business and healthcare segments.
In response to the changing job markets, Headhunter.net further diversified its customer base beyond the traditional IT market and focused its efforts on categories with greater hiring demand such as healthcare and sales. As a result, the top job categories on the web site at the end of the second quarter were: IT, Healthcare, Accounting, Administrative, Customer Service and Engineering. None of the top categories represented more than 15% of total job postings.
Based on the changes in the marketplace and state of the economy, we have redirected our sales force to leverage the Yahoo! alliance and Headhunter.net corporate marketing to increase market share in sectors of the economy with high growth prospects, continued Mr. Self. Given our successes in the second quarter, we intend to grow the sales force in the third quarter.
Headhunter.net improved its spending efficiency on sales and marketing expenses by consolidating online advertising with several leading portals. Sales and marketing expenses declined to 79% of revenues in the second quarter, down from 114% in the same quarter of 2000, while traffic and job searches reached record levels.
EBITDA for the second quarter was $788,000 ($0.04 per share) compared with an EBITDA loss of $2.1 million ($0.10 per share) for the first quarter of 2001 and an EBITDA loss of $3.6 million ($0.33 per share) for the second quarter of last year. Non-cash expenses for the latest quarter included $4.4 million in depreciation and amortization expense, up from $535,000 in the second quarter of 2000. The increase in depreciation and amortization expense was primarily due to goodwill acquired through the purchase of CareerMosaic.com and MiracleWorkers.com in 2000. The Company reported a net loss of $3.8 million ($0.19 per share) for the second quarter of 2001 compared with a net loss of $4.2 million ($0.38 per share) for the second quarter 2000.
Headhunter.net’s cash position rose to $14.0 million in cash and cash equivalents at June 30, 2001, up from $7.5 million at the end of the first quarter. During the second quarter, the Company secured a fully-funded $5 million term loan and a $2.5 million revolving line of credit, which has not been drawn. The remaining $1.5 million in cash growth was generated through operations. This provides cash and availability of $16.5 million at June 30, 2001.
