ZIP - Why Shares of ZipRecruiter Stock Are Plummeting This Week
Shares of ZipRecruiter (NYSE: ZIP) have plummeted by as much as 27% this week, according to data from S&P Global Market Intelligence . The online employment marketplace posted a disappointing fourth-quarter earnings result due to a softening white-collar hiring market, with many technology companies reducing hiring plans. As of 10:47 a.m. ET on Friday, Feb. 24, shares of ZipRecruiter are down 26.8% this week.
For the full year in 2022, ZipRecruiter's revenue grew 22% year over year to $905 million, while also posting a positive net margin of 7% (something not many software companies can say at the moment). However, it started to see slowing demand in the fourth quarter as many technology companies started laying off thousands of workers and implementing hiring freezes. As a marketplace that promotes job listing across various white-collar sectors, this slowdown in the technology industry will no doubt have an effect on this business.
We saw that occur in Q4, with revenue declining 4% year over year to $211 million. The company is still profitable, posting a net income margin of 9%, but declining revenue is never a good sign, especially for a young business like ZipRecruiter.
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Why Shares of ZipRecruiter Stock Are Plummeting This Week