ZipRecruiter Stock Is Plunging After Hours: What's Going On?

ZipRecruiter Inc ZIP shares are trading lower in Tuesday's after-hours session after the company reported financial results and warned that employers have pulled back on hiring plans and cut recruiting budgets in early 2023.

ZipRecruiter's Q4 Results: ZipRecruiter said fourth-quarter revenue declined 4% year-over-year to $210.5 million. The number came in above average analyst estimates of $206.28 million, according to Benzinga Pro. On a full-year basis, revenue was up 22% in 2022.

"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 ... We believe that the strength of our brand, nimble business model, and robust balance sheet not only position us well to navigate the current macroenvironment, but also allow ZipRecruiter to emerge as an even stronger company on the other side."

ZipRecruiter's Outlook: ZipRecruiter expects first-quarter revenue of approximately $179 million, which represents an approximate decline of 21% year-over-year. The company anticipates and adjusted EBITDA decline of approximately 14% year-over-year in the first quarter. 

ZipRecruiter sees full-year 2023 revenue in a range of $770 million to $790 million, representing a 15% decline at the midpoint.

ZIP Price Action: ZipRecruiter shares are down 20.4% after hours at $18.50 at time of publication, according to Benzinga Pro.

Photo: aymane jdidi from Pixabay.