ZipRecruiter (NYSE:ZIP) shares fell more than 15% in early Wednesday trading after the company reported second quarter results and offered a weaker-than-expected Q3 forecast.
ZIP posted a profit per share of $0.14 on revenue of $170.4 million, topping the consensus for earnings of $0.08 on revenue of $169.5M. Revenue fell 29% year-over-year while adjusted EBITDA declined 4.7%.
“The number of job openings and employers’ willingness to pay for those job openings has been declining significantly from the peaks of prior years. Despite this dynamic we remain focused on creating new and better ways for employers and job seekers to connect to their next great opportunity,” said Ian Siegel, CEO of ZipRecruiter.
For this quarter, the company sees Q3 revenue at $150M, a big miss relative to the analyst expectations of $170.8M.
Following a poor Q2 report, Evercore ISI analysts downgraded the stock from Outperform to In Line with a price target of $18 per share.
“Fundamentals are weaker than we had anticipated, and trends are continuing to deteriorate faster than we had expected,” the analysts said.
“We acknowledge that our Outperform rating on ZIP has been wrong. We step to the sidelines and will wait for a positive inflection in ZIP fundamentals before considering becoming constructive again.”