Employment marketplace company ZipRecruiter, Inc. (NYSE: ZIP) has reported better-than-expected results for the first quarter ended March 31, 2022.
Following the upbeat results, shares of the company rose 6.4% to close at $17.55 in Wednesday’s extended trading session. However, the stock was down more than 7.5% during the normal trading hours.
Revenue & Earnings
Revenues for the quarter stood at $227 million, up 81% year-over-year, and surpassed the consensus estimate of $220.95 million.
Earnings of $0.07 per share declined 30% from the year-ago quarter but surpassed the consensus estimate of $0.00.
Other Operating Metrics
ZipRecruiter’s gross margin improved 400 basis points from the previous year to 91%. Its adjusted EBITDA margin remained unchanged from the previous year at 16%.
Further, the revenue per paid employer witnessed a rise of 38% year-over-year to $1,513.
Outlook
For the second quarter, the company forecasts revenue to hover between $231 million and $237 million. The consensus estimate for the same is pegged at $224.65 million.
For full-year 2022, revenues are anticipated between $908 million and $922 million versus the consensus estimate of $892.98 million.
Stock Rating
Consensus among analysts is a Strong Buy based on three unanimous Buys. ZIP’s average price target of $38.33 implies upside potential of 132.4% from current levels. Shares have declined 21.9% over the past year.
Conclusion
The strong employment market and the company’s robust quarterly results, along with its upbeat revenue outlook, are likely to drive the company’s growth.
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