ZipRecruiter (ZIP) AI Stock Analysis

• Market Cap: $491.46M
• Dividend Yield: N/A
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 225.2
• Beta (1Y): 1.51
• Revenue Growth: -20.95%
• EPS Growth: -152.29%
• Country: US
• Employees: 1,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): -0.13
• Shares Outstanding: 79,873,420
• 10 Day Avg. Volume: 1,179,821
• 30 Day Avg. Volume: 1,066,977
• PEG Ratio: 0.07
• Price to Book (P/B): 32.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.42
• Enterprise Value/Market Cap: 1.60
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.85
• Enterprise Value/Ebitda: 3.22
• 1Y Price Target: $7.20
• Price Target Upside: 36.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 43 Neutral
• 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 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 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

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

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

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.

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: Neutral
• Last Price: 5.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RCMT	71 Outperform	$192.00M	14.96	42.38%	―	8.53%	-16.64%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
HQI	68 Neutral	$145.18M	42.57	5.67%	2.31%	-7.66%	-34.08%
KFRC	67 Neutral	$815.06M	17.32	31.45%	3.56%	-6.38%	-12.32%
KELYA	55 Neutral	$435.24M	11.43	-1.60%	2.42%	-3.49%	-140.04%
TBI	50 Neutral	$198.60M	―	-36.98%	―	-16.76%	-1127.93%
ZIP	43 Neutral	$491.46M	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.