ZipRecruiter sees $15.96 million stock sale by institutional venture partners

MENLO PARK, CA—In a recent transaction, Institutional Venture Partners XV, L.P. and Institutional Venture Partners XV Executive Fund, L.P. divested a substantial number of shares in ZipRecruiter, Inc. (NYSE:ZIP), according to an SEC filing. The online employment marketplace, currently valued at $521 million, has seen its stock decline by roughly 41% over the past six months. The sale, executed on May 20, involved 2,984,137 shares at a price of $5.32 per share, amounting to a total of approximately $15.96 million.

The shares were part of a share repurchase agreement between the issuer, Institutional Venture Partners XV, L.P., and Institutional Venture Partners XV Executive Fund, L.P. Following the transaction, Institutional Venture Partners XV, L.P. retains 4,570,369 shares, while the Executive Fund holds 24,294 shares.

These transactions reflect the ongoing portfolio management strategies by Institutional Venture Partners, a significant stakeholder in ZipRecruiter.

In other recent news, ZipRecruiter reported its first-quarter 2025 earnings, revealing a revenue of $110 million, which exceeded forecasts but still marked a 10% decline year-over-year. The company also recorded a net loss of $12.8 million, nearly double the loss from the previous year, raising concerns among investors. Despite these figures, ZipRecruiter’s management noted a 10% sequential increase in quarterly paid employers, although this was down 11% year-over-year. The company’s cash reserves remain strong at $468 million, and it repurchased 4.6 million shares for $27.4 million.

Additionally, analysts at Goldman Sachs recently revised their outlook on ZipRecruiter, lowering the 12-month price target from $8 to $7 while maintaining a Neutral rating. This adjustment follows ZipRecruiter’s earnings report, which showed revenue guidance for the next quarter below expectations. Despite this, Goldman Sachs highlighted ZipRecruiter’s potential long-term benefits from the shift towards online recruiting. The company’s management remains cautiously optimistic about achieving year-over-year revenue growth by the fourth quarter of 2025, with expectations for full-year adjusted EBITDA margins to remain in the mid-single digits.

ZipRecruiter continues to innovate with new product features and maintains a flexible cost structure to adapt to market conditions. However, the company faces challenges such as macroeconomic uncertainty and competitive pressure in the recruitment industry. Analysts have noted the importance of ZipRecruiter’s ability to respond to changing hiring demands, emphasizing its data-driven approach and strategic investments.

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