ZIP - ZipRecruiter stock slides +20% after quarterly revenue decline disappointing guidance

Class A shares of ZipRecruiter ( NYSE: ZIP ) slid more than 20% in Wednesday afternoon trading, after the company's quarterly and annual guidance came in significantly below expectations.

The employment marketplace after hours on Tuesday reported Q4 revenue of $210.5M which beat estimates by $4.66M . However, it represented a decrease of 4% Y/Y.

ZIP said the fall in revenue was due to a softening hiring environment combined with a typical seasonal decline.

ZIP said it had over 108K quarterly paid employers in Q4, down 26% Y/Y.

The company also guided Q1 2023 revenue of $179M, which represented a fall of 21% Y/Y. The consensus revenue estimate is $193.68M.

ZIP sees FY 2023 revenue of $770M to $790M, representing a decline of 14% Y/Y. The consensus revenue estimate is $866.47M.

"With an increasingly uncertain macroeconomic backdrop, employers have moderated their hiring plans and reduced their recruitment budgets in the first weeks of this year," the company said in its quarterly shareholder letter .

"Online job postings in our marketplace remained in line with the low point of the 2022 holiday season, rather than following the longstanding seasonal pattern of beginning a run-up in January," the company added.

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