Jobs giant ZipRecruiter has been hit by “one of the most sluggish hiring periods in recent history” which has resulted in a big fourth-quarter revenue drop.
The job listing website saw its fourth-quarter revenue decrease by 35.4 percent to $135.92 million.
In a letter to its shareholders, the Santa Monica, California-based firm expressed cautious optimism regarding the U.S. economy’s prospects for avoiding a recession in 2024, aiming for a “soft landing.”
It said: “Although many macroeconomic forecasts are optimistic about the US economy managing a ‘soft landing’ without a recession in 2024, we remain nimble and prepared to adapt to a wide range of economic scenarios.
“Our ability to adapt quickly amidst uncertainty is built upon our strong financial foundation, defined by both a historical track record of profitability and a healthy balance sheet.”
The company has also cut jobs, seeing a 35 percent drop in the number of paid employers, which was 70,700 at the end of the fourth-quarter.
There was also a slight drop in revenue per paid employer, dropping to $1,922.
Despite these challenges, ZipRecruiter pointed out employer spending trends over time remained consistent.
It did admit the the tough hiring climate of 2023 did slow the growth rate of average monthly revenue per paid employer from previous cohorts.
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The company views these disruptions as temporary, attributing them to the unique hiring slowdown, especially among larger companies.
ZipRecruiter remains optimistic
ZipRecruiter remains optimistic about its long-term potential to increase revenue from these larger clients.
Looking ahead, ZipRecruiter acknowledged the ongoing uncertainty in the macroeconomic environment but noted a more positive outlook among economists for a return to a more stable economic situation.
The company is preparing for various scenarios in 2024, with first-quarter revenue expected to be around $120 million, indicating a 35% year-over-year decline at the midpoint.
Regarding its stock performance, ZipRecruiter’s shares fell 7.47 percent to $12.76 by midday Eastern time, marking a 24.25% increase from their 52-week low, as reported by FT.com.
Here’s who’s firing in January 2024
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