ZipRecruiter, Inc. ($ZIP) Earnings (Q2 FY22)

 ZipRecruiter, Inc. ($ZIP) Earnings and Opinion:


ZipRecruiter is a company in the Industrials sector and operates in the Staffing and Employment Services sector. The company operates a marketplace that connects job seekers and employers. ZipRecruiter was founded in 2010 and is currently headquartered in Santa Monica, California. The company made its debut on the stock market in 2021. 

ZipRecruiter Earnings Results:

  • Revenue of $240M beating expectations $235M
  • Adjusted EBITDA of $45M beating expectations $38M
  • EPS of $0.11 beating expectations of $0.07
  • Revenue guidance missed expectations for both next quarter and for the full fiscal year
Opinion:
ZipRecruiter is currently moving lower after reporting earnings after the closing bell today. The stock made its IPO last year in May and saw one pop towards the end of last year. However, it has stayed relatively close to its IPO price ever since. The company was able to beat on all three categories against expectations. The think that is dragging the stock down in the after hours is the guidance that they gave. They expect guidance to be lower for both the upcoming quarter and changed the guidance of the revenue for the full entire fiscal year. They were able to achieve a profit in this quarter, but it is something that is lingering right now and they are back and forth with it right now. As far as valuation goes, the company is trading at a P/S ratio of 2.93 and has some pretty solid revenue growth. They have a high current ratio, which means they can cover their upcoming liabilities and overall have more cash than debt. It will be interesting to see where this company will end up due to so many changing landscapes in this field. As far as my opinion, I have never been a big fan of them. I have never fully understood the business model, and don't see them being a long term sort of gig. I can see them being swooped up by a bigger company in an acquisition if they achieve a reoccurring profit. For now, I am a little skeptical and will stay away, especially with the guidance coming in lower than the expected amounts.


*Information from Yahoo Finance, CMLVIZ, and Consensus Guru

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