ZipRecruiter Lowers FY22 Outlook; Shares Down 5%

(RTTNews) - Shares of ZipRecruiter, Inc. (ZIP) are slipping over 5% in extended session on Monday after the online employment marketplace lowered its full year outlook.

For the second quarter, the company reported net income of $13.1million or $0.11 per share, compared to net loss of $52.8 million or $0.55 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.06 per share for the quarter.

Revenues for the quarter gained to $239.9 million from $183.0 million last year. Analysts had a consensus revenue estimate of $234.81 million.

"ZipRecruiter delivered another strong quarter of growth and profitability in Q2 2022. While the quarter in total was strong, in June we began to see signs of a cooling hiring environment," said Ian Siegel, CEO of ZipRecruiter.

"In response to softening demand we are lowering our 2022 revenue outlook, which at the midpoint would demonstrate growth of 20% over 2021. However, we are raising our full year 2022 Adjusted EBITDA guidance to 19% margin, at the midpoint, given the strength of our business model and our disciplined investment approach. We continue to operate ZipRecruiter with a long-term view. With an attractive end-market, strong profitability, and a robust balance sheet, we believe we are well poised to work through economic cycles," said Siegel.

Looking forward to the full year, the company now expects revenues of $883 million to $897 million and adjusted EBITDA of $163 million and $177 million. Previously, the company expected revenues of $908 million to $922 million and adjusted EBITDA of $142 million to $156 million.

Analysts currently estimate revenues of $914.56 million for the full year.

ZIP closed Monday's trading at $20.97, down $0.06 or 0.29%, on the NYSE. The stock further dropped $1.09 or 5.20% in the after-hours trading.

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