Why ZipRecruiter Shares Are Trading Lower Today

ZipRecruiter ZIP shares are trading lower on Wednesday after the company reported a 4% year-over-year decrease in Q4 revenue and warned that employers have pulled back on hiring plans and cut recruiting budgets in early 2023.

ZipRecruiter reported quarterly sales of $210.50 million which beat the analyst consensus estimate of $206.28 million. This is a 4.38% decrease over sales of $220.14 million the same period last year.

"2022 was a year of strong, profitable growth for ZipRecruiter. Even amidst a volatile jobs environment we were able to deliver 22% revenue growth, net income margin of 7% and Adjusted EBITDA margin of 20%," said Ian Siegel, CEO of ZipRecruiter. "In the first few weeks of 2023, employers have moderated their hiring plans and reduced recruitment budgets in response to an increasingly uncertain macroeconomic backdrop.”

For 2023, ZipRecruiter expects first-quarter revenue of approximately $179 million, which represents an approximate decline of 21% year-over-year. The company also sees FY2023 revenue in a range of $770 million to $790 million, representing a 15% decline at the midpoint.

Analyst Changes:

• Raymond James analyst Aaron Kessler downgraded ZipRecruiter from Strong Buy to Outperform and announced a $26 price target.
• Barclays analyst Trevor Young maintained ZipRecruiter with an Overweight and lowered the price target from $25 to $22.

ZipRecruiter is an American employment marketplace for job seekers and employers.

ZIP Price Action: ZipRecruiter has a 52-week high of $25 and a 52-week low of $13.78.

ZipRecruiter shares are down 24.9% at $17.42 at the time of publication, according to Benzinga Pro.