Shares of ZipRecruiter (NYSE: ZIP), an online employment marketplace tanked more than 15% in morning trading on Wednesday as the company announced that employers were going slow on hiring.
Ian Siegel, ZipRecruiter’s CEO commented, “In the first few weeks of 2023, employers have moderated their hiring plans and reduced recruitment budgets in response to an increasingly uncertain macroeconomic backdrop.”
Siegel added that ZIP has projected Q1 revenues of $179 million, a decline of 21% year-over-year, and an adjusted EBITDA of $25 million at the midpoint. More disappointingly, even FY23 revenues are projected to drop 14% year-over-year to be between $770 million and $790 million while adjusted EBITDA is likely to be $185 million at the midpoint.
The company announced its FY22 results with adjusted EBITDA of $184.9 million and a margin of 20%. Revenues surged 22% year-over-year to $904.6 million.
Even with today’s stock plunge, ZIP stock have performed relatively well year-to-date, going up by around 39.7%.
