ZipRecruiter Soars 14.2% on Upbeat Q3 Results

Employment marketplace ZipRecruiter, Inc. (ZIP) has reported stronger-than-expected results for the third quarter ended September 30, 2021. Following the earnings, shares of the company appreciated 14.2% to close at $30.50 in the extended trade.

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Revenue & Earnings

Quarterly revenues stood at $212.7 million and surpassed the consensus estimate of $188.16 million. The company had posted revenues of $102.9 million in the same quarter last year.

Earnings per share (EPS) during the quarter stood at $0.17, down 10.5% year-over-year. However, the figure compares favorably with the consensus estimate of a loss of $0.06 per share.

Other Operating Metrics

In other operating metrics, the company reported Revenue per Paid Employer of $1,254, which denotes a growth of 10% from the prior year.

Outlook

For the fourth quarter, the company forecasts revenue to be in the range of $203 million to $209 million against the consensus estimate of $171.25 million.

Similarly, for 2021, the company expects revenue to hover between $724 million and 730 million. The consensus estimate for the same is pegged at $667.57 million.

Management Commentary

The CEO of ZipRecruiter, Ian Siegel, said, “ZipRecruiter delivered a record revenue quarter, as macroeconomic and hiring trends are strong. With demand for talent remaining high and job seeking activity still below pre-pandemic levels, our mission of actively connecting people to their next great opportunity has never been more important.”

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Price Target

Consensus among analysts is a Strong Buy based on 4 unanimous Buys. The average ZipRecruiter price target of $39.33 implies upside potential of 47.2% from current levels. Shares have gained 26.6% over the past year.