ZipRecruiter stock soars on revenue beat, optimistic outlook

Published 25/02/2025, 22:28
ZipRecruiter stock soars on revenue beat, optimistic outlook

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."

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.