ZipRecruiter Inc. (NYSE: ZIP) reported first-quarter revenue rose 81.3% to $227.3 million, 3% above the midpoint of guidance. The job aggregator also raised its guidance for full-year 2022 revenue.
However, net income fell at the Santa Monica, California-based company.
“Employer demand for talent remains strong and the team continues to execute against our mission of actively connecting people to their next great opportunity,” said CEO Ian Siegel. “Our long-term investments in technology and brand continue to pay off, and we’re pleased to raise our full year 2022 guidance, which calls for continued profitable growth in the coming year.”
| (US$ thousands) | Q1 2022 | Q1 2021 | % change |
| Revenue | $227,260 | $125,372 | 81.3% |
| Gross profit | $205,654 | $109,411 | 88.0% |
| Gross margin percentage | 90.5% | 87.3% | |
| Net income | $8,417 | $13,398 | -37.2% |
“While rising labor costs, inflation rates and global tensions remain a concern among employers, we believe that the combination of surging demand for talent, high turnover, and low unemployment means hiring will remain a top priority for employers in the months to come,” Siegel stated in a letter to shareholders. “Employers’ willingness to pay has never been higher, and reflects the ever-increasing value ZipRecruiter continues to deliver.”
Guidance
ZipRecruiter forecast second-quarter revenue of $231 million to $237 million, a year-over-year increase of 28% at the midpoint.
For the full year 2022, ZipRecruiter now forecasts revenue to be $908 million to $922 million — up from its prior estimate of $878 million to $892 million and representing year-over-year growth of 23% at the midpoint. The new guidance reflects ZipReruiter’s belief that headwinds and tailwinds affecting the labor market — including increasing inflation, labor costs and interest rates — will have a moderating effect, bringing US hiring numbers to more traditional levels.
Share Price and Market Cap
Shares in ZipRecruiter were up 17.22% to $19.33 as of 11:39 a.m. Eastern time today; they set a new 52-week low during today’s trading session when it reached $16.27, according to FT.com. ZipRecruiter has a market cap of $2.10 billion.