NYSE$ZIP

ZipRecruiter Inc. · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

ZipRecruiter's revenue declined due to a challenging industry backdrop, but Adjusted EBITDA exceeded expectations.

ZipRecruiter reported a 19% year-over-year decrease in quarterly revenue, totaling $183.7 million. Net income was $5.0 million, representing a 3% net income margin. Adjusted EBITDA reached $35.3 million, with an Adjusted EBITDA margin of 19%. The company also announced a $100 million increase to its share repurchase program authorization.

  • Revenue for the quarter was $183.7 million, a 19% decrease year-over-year.
  • Net income was $5.0 million, resulting in a net income margin of 3%.
  • Adjusted EBITDA was $35.3 million, with an Adjusted EBITDA margin of 19%.
  • The company increased its share repurchase program authorization by $100 million.

Headline financials

Total Revenue

$184M

Previous: $227M-19.1%
EPS (adj)

$0.05

Previous: $0.07-28.6%
Adjusted EBITDA

$35.3M

No prior period
Adjusted EBITDA Margin

19.0%

No prior period
Capital Expenditures

-$414K

Previous: -$986K+58.0%
Free Cash Flow

$4.6M

Previous: $7.43M-38.1%
Net Income

$5.01M

Previous: $8.42M-40.5%
Operating Income

$11M

Previous: $14.2M-22.9%
Gross Profit

$163M

Previous: $206M-20.7%
Cash & Equivalents

$215M

Previous: $745M-71.2%
Total Assets

$657M

Previous: $902M-27.1%
Stock-Based Comp

$21.6M

Previous: $20.5M+5.3%

Revenue & EPS history

ZipRecruiter · Revenue · Quarterly

$184M

Q1 2023-19.1%vs Q1 2022
Beat estimate in 14 of 14 quarters(100%)
ActualEstimate

Forward guidance

The company maintains its full year Adjusted EBITDA guidance of $185 million at the midpoint, despite a softening in online job postings.

Tailwinds

  • Company is able to maintain full year Adjusted EBITDA guidance.
  • The company has a nimble business model.
  • The company has a strong brand.
  • The company has strong technology.
  • The company has a strong financial model.

Headwinds

  • Macroeconomic environment remains highly uncertain.
  • Online job postings have softened further in 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-4.1%

Avg return

Earnings day

-5.6%

Avg return

5 days after

-5.1%

Avg return

30 days after

38%

9 / 24 earnings

Positive

+18.7%

Q3 2024

Best reaction

-24.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+18.9%+1.6%
Q4 2025-24.5%-29.5%-31.5%
Q3 2025+4.9%+13.5%+31.7%
Q1 2025-23.6%-9.6%+9.5%
Q4 2024-15.9%-17.7%-14.1%
Q3 2024+18.7%+17.9%-12.8%
Q2 2024+7.0%-1.2%+18.3%
Q1 2024-11.6%-8.4%-13.4%
Q4 2023-7.2%-10.8%-15.3%
Q3 2023-2.0%+0.3%+15.5%
Q2 2023-8.6%-3.4%-12.6%
Q1 2023-4.4%-13.6%-6.6%
Q4 2022-24.4%-27.1%-36.8%
Q3 2022+14.6%+9.1%+9.0%
Q2 2022-5.7%-21.6%-9.1%
Q1 2022+5.8%+9.7%-4.4%
Q4 2019-5.0%-8.5%+8.0%
Q4 2021+7.8%+2.4%+15.0%
Q3 2020+3.2%+5.7%-11.7%
Q3 2021+3.8%+7.1%-8.4%
Q1 2021-10.6%-18.3%-13.7%
Q2 2020-10.6%-18.3%-13.7%
Q4 2020-10.6%-18.3%-13.7%
Q2 2021+0.6%-12.9%-12.8%
Q1 2020

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