tiprankstipranks
Trending News
More News >
ZipRecruiter (ZIP)
NYSE:ZIP

ZipRecruiter (ZIP) AI Stock Analysis

Compare
170 Followers

Top Page

ZI

ZipRecruiter

(NYSE:ZIP)

Rating:43Neutral
Price Target:
$5.00
▼(-5.48%Downside)
The overall stock score is significantly impacted by financial challenges, including declining revenue, profitability, and negative equity. Technical indicators confirm weak momentum, and valuation metrics are unattractive with a negative P/E ratio. The earnings call highlights some positive developments but is overshadowed by ongoing challenges.
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 (ZIP) vs. SPDR S&P 500 ETF (SPY)

ZipRecruiter Business Overview & Revenue Model

Company DescriptionZipRecruiter, 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 MoneyZipRecruiter 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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: -7.36%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with notable achievements in technology integrations and product improvements, suggesting potential for future growth. However, significant challenges were highlighted by revenue declines and increased net losses, reflecting a cautious market environment.
Q1-2025 Updates
Positive Updates
Sequential Growth in Employer Activity
Quarterly paid employers increased by 10% sequentially, marking the highest Q4 to Q1 growth since 2021, indicating stronger employer engagement.
Workday Certified Integration
ZipRecruiter achieved Workday certified integration status, enhancing its reach among top enterprise companies and improving application flow efficiency.
Enhanced Resume Database Features
New features in the resume database led to a 9% increase in resume unlock rates among enterprise employers, improving team collaboration and sourcing capabilities.
Zip Intro Adoption
The introduction of scheduling features in the Zip Intro tool resulted in a 16% increase in scheduled sessions quarter-over-quarter, enhancing employer-candidate engagement.
Improved Enterprise Application Delivery
A 7% month-over-month increase in applications delivered to enterprise customers was achieved due to improvements in the bidding model of the campaign optimization solution.
Negative Updates
Revenue Decline
Q1 2025 revenue of $110 million represented a 10% year-over-year decline and a 1% sequential decline, reflecting a challenging market environment.
Net Loss Increase
Net loss in Q1 2025 was $12.8 million, compared to a net loss of $6.5 million in Q1 2024, largely due to decreased revenue and increased expenses.
Decreased Quarterly Paid Employers
The number of quarterly paid employers decreased by 11% year-over-year, indicating ongoing uncertainty in the hiring market.
Decline in Adjusted EBITDA
Adjusted EBITDA was $5.9 million with a margin of 5%, compared to $20.8 million and a margin of 17% in Q1 2024, due to higher marketing and personnel expenses.
Company Guidance
In the first quarter of 2025, ZipRecruiter reported $110 million in revenue, which was a 1% decline sequentially but demonstrated a more typical seasonal pattern compared to previous years. The company saw a 10% sequential increase in quarterly paid employers, totaling 63,000, while revenue per paid employer was $1,734, up 2% year-over-year. Despite a net loss of $12.8 million, ZipRecruiter's adjusted EBITDA was $5.9 million with a 5% margin. Looking ahead, the company provided second-quarter revenue guidance of $111 million, representing a 1% increase quarter-over-quarter, and projected an adjusted EBITDA margin of 6% at the midpoint. ZipRecruiter remains cautiously optimistic about achieving year-over-year revenue growth by the fourth quarter, underpinned by its robust balance sheet and flexible business model, allowing it to navigate macroeconomic uncertainties.

ZipRecruiter Financial Statement Overview

Summary
ZipRecruiter is facing financial challenges with declining revenues and profitability. Despite a strong gross profit margin, the net profit margin was negative. The balance sheet shows high leverage and low equity, with a negative return on equity. Positive free cash flow is a bright spot, but overall financial stability is a concern.
Income Statement
42
Neutral
ZipRecruiter experienced a significant decline in revenue from 2022 to 2024, with revenue dropping from $904.6 million in 2022 to $474 million in 2024. The gross profit margin remained strong at approximately 89.4% in 2024, but the net profit margin turned negative, with a net loss of $12.85 million. EBIT and EBITDA margins also declined significantly, indicating operational challenges.
Balance Sheet
38
Negative
The balance sheet shows a weak position with a low stockholders' equity of $13.43 million and a high ratio of liabilities to equity. The debt-to-equity ratio improved marginally due to reduced debt levels, but the equity ratio remains low at 2.02%. Return on equity is negative due to recent losses, highlighting financial instability.
Cash Flow
55
Neutral
While operating cash flow decreased from 2023 to 2024, the company maintained positive free cash flow of $44.81 million. The free cash flow to net income ratio is strong, indicating efficient cash management despite profitability issues. The overall decline in cash flow metrics suggests potential liquidity challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue474.00M645.72M904.65M741.14M418.14M
Gross Profit423.85M581.41M818.35M661.53M363.98M
EBITDA35.39M111.57M113.26M1.10M80.89M
Net Income-12.85M49.10M61.49M3.60M86.05M
Balance Sheet
Total Assets664.06M659.50M714.56M398.62M212.13M
Cash, Cash Equivalents and Short-Term Investments505.88M520.12M570.36M254.62M114.54M
Total Debt552.72M555.73M560.01M25.29M52.17M
Total Liabilities650.63M651.13M685.94M163.65M262.43M
Stockholders Equity13.43M8.37M28.62M234.97M-50.30M
Cash Flow
Free Cash Flow44.81M92.53M118.26M130.80M80.64M
Operating Cash Flow45.73M103.19M128.81M144.14M88.01M
Investing Cash Flow-61.98M106.74M-351.13M-13.34M-7.37M
Financing Cash Flow-48.36M-154.26M195.09M9.28M-1.63M

ZipRecruiter Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.29
Price Trends
50DMA
5.44
Negative
100DMA
5.77
Negative
200DMA
7.16
Negative
Market Momentum
MACD
-0.14
Negative
RSI
48.60
Neutral
STOCH
73.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZIP, the sentiment is Neutral. The current price of 5.29 is below the 20-day moving average (MA) of 5.40, below the 50-day MA of 5.44, and below the 200-day MA of 7.16, indicating a bearish trend. The MACD of -0.14 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 73.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZIP.

ZipRecruiter Risk Analysis

ZipRecruiter disclosed 56 risk factors in its most recent earnings report. ZipRecruiter reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ZipRecruiter Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$192.00M14.9642.38%8.53%-16.64%
71
Outperform
¥254.55B13.008.49%3.09%6.31%12.77%
HQHQI
68
Neutral
$145.18M42.575.67%2.31%-7.66%-34.08%
67
Neutral
$815.06M17.3231.45%3.56%-6.38%-12.32%
55
Neutral
$435.24M11.43-1.60%2.42%-3.49%-140.04%
TBTBI
50
Neutral
$198.60M-36.98%-16.76%-1127.93%
ZIZIP
43
Neutral
$491.46M225.24-2897.28%-20.95%-152.29%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ZIP
ZipRecruiter
5.29
-3.69
-41.09%
KELYA
Kelly Services
12.39
-8.73
-41.34%
KFRC
Kforce
43.75
-16.19
-27.01%
RCMT
Rcm Technologies
25.98
7.66
41.81%
TBI
Trueblue
6.65
-3.18
-32.35%
HQI
HireQuest
10.37
-1.43
-12.12%

ZipRecruiter Corporate Events

Executive/Board ChangesShareholder Meetings
ZipRecruiter Holds 2025 Annual Stockholders Meeting
Neutral
Jun 11, 2025

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.

Stock Buyback
ZipRecruiter Repurchases 3 Million Shares from Investors
Neutral
May 22, 2025

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.

Business Operations and StrategyFinancial Disclosures
ZipRecruiter Reports Q1 2025 Financial Results
Neutral
May 8, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 18, 2025