ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $419.92M
• Dividend Yield: N/A
• Average Volume (3M): 861.49K
• Price to Earnings (P/E): 225.2
• Beta (1Y): 1.52
• Revenue Growth: -20.95%
• EPS Growth: -152.29%
• Country: US
• Employees: 1,000
• Sector: Industrials
• Sector Strength: 90
• Industry: Staffing & Employment Services
• EPS (TTM): -0.13
• Shares Outstanding: 79,873,420
• 10 Day Avg. Volume: 626,770
• 30 Day Avg. Volume: 861,487
• PEG Ratio: 0.43
• Price to Book (P/B): -38.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.14
• Enterprise Value/Market Cap: 1.78
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 1.81
• Enterprise Value/Ebitda: 4.48
• 1Y Price Target: $7.20
• Price Target Upside: 53.85% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 44 Neutral
• Price Target: $4.50 ▼(-3.85%Downside)

The overall stock score of 44 reflects significant financial and technical challenges facing ZipRecruiter. The financial performance is particularly concerning, with negative equity and profitability issues. Technical analysis further indicates bearish sentiment. Although the earnings call highlighted some technological progress, it also underscored substantial revenue and net loss challenges, contributing to a cautious outlook.

Positive Factors

Market Share

ZipRecruiter is gaining market share even in a down market, with its traffic declining less than the overall online recruiting market.

Product Performance

The company’s ZipIntro product has performed well, with extremely positive feedback from employers.

Web Traffic Growth

Continued momentum on the demand side with total web traffic up 15% year-over-year, surpassing the largest competitors by at least 10%.

Negative Factors

Financial Challenges

Management guided Q1 adjusted EBITDA significantly below expectations, indicating potential short-term financial challenges.

Macroeconomic Uncertainty

Uneasiness remains surrounding the potential impacts on the macro environment.

Pricing Outlook

The company's 12-month price target was decreased from $9.00 to $8.00, reflecting a less optimistic outlook.

ZipRecruiter Business Overview & Revenue Model

Company Description

ZipRecruiter, Inc., together with its subsidiaries, operates a marketplace that connects job seekers and employers. Its platform is a two-sided marketplace, which enables employers to post jobs and access other features, where the job seekers are able to apply to jobs with a single click. The company was incorporated in 2010 and is headquartered in Santa Monica, California.

How the Company Makes Money

ZipRecruiter makes money through a subscription-based revenue model, primarily charging employers for access to its platform and services. Employers pay fees to post job listings and gain access to a wide pool of potential candidates. The company offers various subscription plans that differ based on features such as the number of job slots and the level of exposure a job listing receives. Additionally, ZipRecruiter generates revenue through partnerships with other job boards and platforms, expanding the reach of its job postings. These collaborations enhance the visibility of listings, making them accessible to a broader audience, which in turn drives more employers to use its services.

ZipRecruiter Financial Statement Overview

Summary

ZipRecruiter is facing significant financial challenges, including declining revenue and profitability, negative equity, and high financial risk, indicating a precarious financial situation. Positive cash flow is a bright spot, but sustainability is questionable given negative trends in income and equity.

Income Statement

ZipRecruiter has been experiencing significant challenges in its financial performance. The TTM (Trailing-Twelve-Months) shows a deterioration in key profitability metrics. The gross profit margin remains strong at around 89.5%, but the net profit margin turned negative at -4.2%, reflecting a substantial decline in net income. Revenue growth has been declining, with the latest TTM revenue falling compared to previous periods. EBIT and EBITDA margins also indicate operational struggles, with EBIT margin at -2.1% and EBITDA margin at 4.2%. These figures suggest the company is facing difficulties in maintaining profitability and growing revenue.

Balance Sheet

The balance sheet reveals concerning leverage and equity trends. The debt-to-equity ratio is not calculable due to negative equity, indicating high financial risk. The equity ratio is also negative due to negative stockholders' equity, highlighting a weak financial position. Return on equity (ROE) is not meaningful with negative equity values. The continuous decline in stockholders' equity over time is a critical issue, indicating potential solvency concerns.

Cash Flow

ZipRecruiter's cash flow statement shows mixed results. The free cash flow is positive, but its growth has been declining, with a contraction in the TTM compared to the previous year. The operating cash flow to net income ratio is strong, suggesting effective conversion of net income into cash flow. However, the free cash flow to net income ratio reveals challenges, particularly given the negative net income. Despite positive free cash flow, the overall cash flow trend is worrying, considering the negative net income and declining free cash flow growth.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	474.00M	645.72M	904.65M	741.14M	418.14M
Gross Profit	423.85M	581.41M	818.35M	661.53M	363.98M
EBITDA	35.39M	111.57M	113.26M	1.10M	80.89M
Net Income	-12.85M	49.10M	61.49M	3.60M	86.05M
Balance Sheet
Total Assets	664.06M	659.50M	714.56M	398.62M	212.13M
Cash, Cash Equivalents and Short-Term Investments	505.88M	520.12M	570.36M	254.62M	114.54M
Total Debt	552.72M	555.73M	560.01M	25.29M	52.17M
Total Liabilities	650.63M	651.13M	685.94M	163.65M	262.43M
Stockholders Equity	13.43M	8.37M	28.62M	234.97M	-50.30M
Cash Flow
Free Cash Flow	44.81M	92.53M	118.26M	130.80M	80.64M
Operating Cash Flow	45.73M	103.19M	128.81M	144.14M	88.01M
Investing Cash Flow	-61.98M	106.74M	-351.13M	-13.34M	-7.37M
Financing Cash Flow	-48.36M	-154.26M	195.09M	9.28M	-1.63M

ZipRecruiter Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.68
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIP, the sentiment is Negative. The current price of 4.68 is below the 20-day moving average (MA) of 4.98, below the 50-day MA of 5.35, and below the 200-day MA of 6.95, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 37.92 is Neutral, neither overbought nor oversold. The STOCH value of 19.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZIP.

ZipRecruiter Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HQI	72 Outperform	$134.54M	39.82	5.67%	2.50%	-7.66%	-34.08%
KFRC	71 Outperform	$784.14M	17.01	31.45%	3.71%	-6.38%	-12.32%
RCMT	71 Outperform	$182.39M	14.73	42.38%	―	8.53%	-16.64%
Sector *	67 Neutral	£2.82B	10.49	4.69%	3.43%	2.40%	-24.48%
KELYA	57 Neutral	$431.37M	11.43	-1.60%	2.44%	-3.49%	-140.04%
TBI	50 Neutral	$193.52M	―	-36.98%	―	-16.76%	-1127.93%
ZIP	44 Neutral	$419.92M	225.24	-2897.28%	―	-20.95%	-152.29%

ZipRecruiter Corporate Events

ZipRecruiter Holds 2025 Annual Stockholders Meeting

On June 10, 2025, ZipRecruiter, Inc. held its 2025 Annual Meeting of Stockholders, where key decisions were made regarding the company’s governance and operations. At the meeting, stockholders elected Ian Siegel, Yvonne Hao, and Cipora Herman as Class I directors for a three-year term, ratified PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers for the fiscal year ended December 31, 2024. These decisions are expected to influence the company’s strategic direction and financial oversight.

The most recent analyst rating on (ZIP) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.

ZipRecruiter Repurchases 3 Million Shares from Investors

On May 22, 2025, ZipRecruiter, Inc. repurchased 3,000,000 shares of its Class A common stock from entities affiliated with Institutional Venture Partners at $5.32 per share. This transaction, approved by the company’s Audit Committee, is part of its ongoing share repurchase program, leaving approximately $51 million available for future repurchases. Institutional Venture Partners continues to hold over 8.4 million shares, maintaining an 11% ownership stake in the company.

The most recent analyst rating on (ZIP) stock is a Hold with a $11.00 price target. To see the full list of analyst forecasts on ZipRecruiter stock, see the ZIP Stock Forecast page.

ZipRecruiter Reports Q1 2025 Financial Results

On May 8, 2025, ZipRecruiter announced its financial results for the first quarter of 2025, reporting a revenue of $110.1 million and a net loss of $12.8 million. Despite a year-over-year revenue decline of 10%, the company noted that the sequential revenue decline was typical for the season. CEO Ian Siegel expressed cautious optimism amid economic uncertainty, highlighting continued strategic investments in product and technology to drive future growth.