ZipRecruiter beats by $0.06, reports revs in-line; guides Q3 revs below consensus
- Reports Q2 (Jun) earnings of $0.14 per share, $0.06 better than the FactSet Consensus of $0.08; revenues fell 29.0% year/year to $170.4 mln vs the $169.56 mln FactSet Consensus.
- Co issues downside guidance for Q3, sees Q3 revs of $147-$153 mln vs. $170.75 mln FactSet Consensus.
- Annual guidance:
- The atypical hiring patterns observed through the first half of 2023 give us limited visibility beyond Q3. Q4 has typically been a seasonally softer period for hiring and we do not yet have a clear view of when employers' confidence will recover. Given this continued uncertain macroeconomic environment, we are not providing annual revenue guidance, consistent with the prior quarter.
- Last quarter, we discussed our view of a path to Adjusted EBITDA of $178 million to $192 million in the majority of topline scenarios we could reasonably foresee. The rapidity and inconsistency of the cooling hiring environment has reduced this confidence. Therefore, we are withdrawing our prior full-year Adjusted EBITDA guidance. However, as displayed by our Q2'23 financial results, in which we exceeded the high end of our Adjusted EBITDA guidance range, we will continue to respond to our environment quickly. Given the wide range of revenue scenarios, we believe that the Company will achieve Adjusted EBITDA margins in the low to mid-20% range for the full year. This reflects the financial flexibility in our model and an ROI-informed propensity to conserve capital during downturns while we also continue investing for long-term growth.
