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ZipRecruiter (ZIP)
NYSE:ZIP
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ZipRecruiter
(NYSE:ZIP)
Rating:46Neutral
Price Target:
$5.50
▼( -1.61% Downside)
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.
Technology and Product Improvements
Recent improvements in matching technology have driven job seeker engagement metrics to the highest levels in four years.
Negative Factors
Financial Guidance
Management guided Q1 adjusted EBITDA significantly below expectations, indicating potential short-term financial challenges.
Macroeconomic Pressures
Macro pressures impacting broader hiring demand and leading to a cautious approach by employers is currently weighing on ZIP and top-line growth.
ZipRecruiter (ZIP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$519.33M
Dividend YieldN/A
Average Volume (3M)1.15M
Price to Earnings (P/E)225.2
Beta (1Y)1.49
Revenue Growth-20.95%
EPS Growth-152.29%
CountryUS
Employees1,000
SectorIndustrials
Sector Strength90
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)-0.13
Shares Outstanding79,873,420
10 Day Avg. Volume1,521,888
30 Day Avg. Volume1,150,286
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)32.01
Price to Sales (P/S)0.00
P/FCF Ratio12.42
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue0.37
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda3.22
Forecast
1Y Price Target
$7.20Price Target Upside28.80% Upside
Rating ConsensusHold
Number of Analyst Covering7
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 targeting employers. Companies pay for job posting services and access to ZipRecruiter's extensive resume database, which allows them to find potential candidates. The company offers various pricing plans based on the level of service and features, such as the number of job postings and the duration of access to the platform. Additionally, ZipRecruiter may generate revenue through strategic partnerships and alliances with other companies in the human resources and recruiting industries, enhancing its reach and service offerings. Significant factors contributing to its earnings include the demand for efficient hiring solutions and the increasing adoption of online employment platforms by businesses seeking to optimize their recruitment processes.
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.42
Neutral
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.38
Negative
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.55
Neutral
| 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 | EBIT |
| 1.26M | 79.44M | 97.23M | -8.36M | 64.43M | EBITDA |
| 35.39M | 111.57M | 113.26M | 1.10M | 80.89M | Net Income Common Stockholders |
| -12.85M | 49.10M | 61.49M | 3.60M | 86.05M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 505.88M | 520.12M | 570.36M | 254.62M | 114.54M | Total Assets |
| 664.06M | 659.50M | 714.56M | 398.62M | 212.13M | Total Debt |
| 552.72M | 555.73M | 560.01M | 25.29M | 52.17M | Net Debt |
| 334.29M | 272.68M | 332.63M | -229.33M | -62.37M | 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
Neutral
5.59
Price Trends
5.54
Positive
6.21
Negative
7.63
Negative
Market Momentum
-0.03
Negative
53.45
Neutral
79.82
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 5.59 is above the 20-day moving average (MA) of 5.31, above the 50-day MA of 5.54, and below the 200-day MA of 7.63, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 53.45 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 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 1 New Risks
1.
Our business uses AI Technologies, and the deployment, use and maintenance of these technologies involve significant technological and legal risks. Q4, 2024
ZipRecruiter Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $167.91M | 12.93 | 42.38% | ― | 8.53% | -16.64% | |
66 Neutral | $129.64M | 38.01 | 5.67% | 2.53% | -7.66% | -34.08% | |
65 Neutral | $765.13M | 16.26 | 31.45% | 3.77% | -6.38% | -12.32% | |
64 Neutral | $4.39B | 11.81 | 5.17% | 249.38% | 3.98% | -12.17% | |
52 Neutral | $417.09M | 11.43 | -1.60% | 2.53% | -3.49% | -140.04% | |
47 Neutral | $169.03M | ― | -36.98% | ― | -16.76% | -1127.93% | |
46 Neutral | $519.33M | 225.24 | -2897.28% | ― | -20.95% | -152.29% |
* Industrials Sector Average
Performance Comparison
ZIP
ZipRecruiter
5.43
-4.45
-45.04%
KELYA
Kelly Services
11.85
-9.88
-45.47%
KFRC
Kforce
40.36
-19.51
-32.59%
RCMT
Rcm Technologies
22.62
0.99
4.58%
TBI
Trueblue
5.74
-5.03
-46.70%
HQI
HireQuest
9.25
-3.34
-26.53%
ZipRecruiter Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: -2.10%|
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 Corporate Events
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.
Business Operations and StrategyFinancial Disclosures
ZipRecruiter Reports Strong 2024 Financial Results
Positive
Feb 25, 2025
On February 25, 2025, ZipRecruiter announced its financial results for the fourth quarter and full year of 2024, reporting a quarterly revenue of $111 million and a full-year revenue of $474 million. Despite a challenging hiring environment, the company achieved a full-year adjusted EBITDA of $78 million, reflecting a 16% margin, and managed to reduce operating expenses while continuing to invest in product and technology. CEO Ian Siegel expressed cautious optimism for 2025, highlighting improved revenue trends and a strong balance sheet to capture market share when hiring activity rebounds.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.