Shares of ZipRecruiter Inc. (ZIP) fell nearly 12% in the extended session Tuesday after the jobs platform reported its fourth quarter earnings and said employers have slowed down their hiring, cutting down on the company’s January revenue.
ZipRecruiter reported that it earned $19.4 million, or 17 cents a share, in the quarter, compared with $20 million, or 16 cents a share, in the year-ago quarter. Revenue fell 4% to $210.5 million, the company said. Analysts polled by FactSet had expected the company to report EPS of 9 cents a share on sales of $206 million.
In a letter to shareholders, ZipRecruiter said that “with an increasingly uncertain macroeconomic backdrop, employers have moderated their hiring plans and reduced their recruitment budgets in the first weeks of this year.” The company noted that online job postings in their marketplace had remained at the low point of the 2022 holiday season, rather than following the longstanding seasonal pattern of beginning a run-up in January. The company reported that the weakness was more pronounced among small- and medium businesses. As a result, January’s revenue was down 15% year-over-year.
ZipRecruiter provided guidance for the first quarter, expecting revenue to be between $176 million and $182 million, down between 23% and 20% year-on-year. For the full year 2023, the company guided for revenue between $770 million and $790 million, which would be down between 15% and 13% from 2022.
The news of the weakened hiring and revenue outlook sent shares of ZipRecruiter tumbling in the extended session. The stock had already ended the regular trading day down 2.4%, but the after-hours trading pushed the stock down even further.
The news of the weakened hiring and revenue outlook from ZipRecruiter is a concerning sign for the job market. The company’s report of moderated hiring plans and reduced recruitment budgets among small and medium businesses is a sign that the job market may be slowing down. This could be a result of the uncertain macroeconomic backdrop, with businesses concerned about the future of the economy and the potential for another downturn.
The news of weakened hiring and revenue outlook from ZipRecruiter is a concerning sign for the job market, but it’s also an indication that businesses are being cautious in their hiring. This could be a sign that businesses are being proactive in their approach to the uncertain macroeconomic backdrop, and are taking a measured approach to their hiring plans.
The news of weakened hiring and revenue outlook from ZipRecruiter is concerning for the job market, but it’s also a sign that businesses are being prudent in their approach to the uncertain macroeconomic backdrop. Businesses are taking a measured approach to their hiring plans and are reducing their recruitment budgets. This could be a sign of caution, but it could also be a sign of resilience, as businesses look to weather the macroeconomic storm and emerge in a better position.
Ultimately, the news of weakened hiring and revenue outlook from ZipRecruiter is concerning for the job market, but it’s also a sign that businesses are being cautious and prudent in their approach to the uncertain macroeconomic backdrop. Businesses are taking a measured approach to their hiring plans and are reducing their recruitment budgets. This could be a sign of resilience, as businesses look to weather the macroeconomic storm and emerge in a better position.
