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SANTA MONICA - ZipRecruiter, Inc. (NYSE: ZIP) saw its stock surge 6.1% after the online employment marketplace reported fourth-quarter revenue that exceeded analyst expectations and provided an upbeat outlook for the first quarter of 2025.
The company announced revenue of $111 million for the fourth quarter, surpassing the consensus estimate of $107.77 million. This represents a decline from the same period last year, reflecting the challenging hiring environment ZipRecruiter faced throughout 2024.
For the full year 2024, ZipRecruiter reported revenue of $474 million and a net loss of $12.9 million, or a net loss margin of 3%. The company’s Adjusted EBITDA for the year stood at $78 million, translating to an Adjusted EBITDA margin of 16%.
CEO Ian Siegel expressed cautious optimism about improving revenue trends, stating, "Despite the protracted labor market downturn, we enter 2025 with cautious optimism on improving revenue trends from both internal and external indicators." He added, "Our Q1 revenue guidance of $109 million at the midpoint is down 2% versus Q4’24. By contrast, Q1 revenue declined sequentially by 13% and 10% in 2023 and 2024, respectively."
ZipRecruiter’s guidance for the first quarter of 2025 suggests a potential stabilization in its business, with the projected sequential decline significantly smaller than in previous years. The company emphasized its ability to manage operating expenses while continuing to invest in product and technology improvements.
Siegel highlighted the company’s achievements in 2024, including new product launches, advancements to existing products, and strategic M&A activities to expand its product suite. He reiterated ZipRecruiter’s commitment to its mission, stating, "Through all labor market cycles, our mission of actively connecting people to their next great opportunity remains the foundation of our strategy."
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