Job aggregator ZipRecruiter Inc. (NYSE: ZIP) reported third-quarter revenue rose 106.8% TO $212.7 million, 15% above the midpoint of guidance. However, net income fell 4.5%.
The Santa Monica, California-based company also raised guidance for the full-year 2021.
“ZipRecruiter delivered a record revenue quarter, as macroeconomic and hiring trends are strong,” CEO Ian Siegel said.
|(US$ thousands)||Q3 2021||Q3 2020||% change|
|Gross margin percentage||89.5%||87.4%|
“While employers’ demand for talent remains strong, we still see the same widely reported reticence on the part of some job seekers to enter into a new job search,” the company stated in a letter to shareholders. “Demand for workers still exceeds supply, with employment levels remaining far below pre-pandemic levels.”
ZipRecruiter forecast fourth-quarter revenue between $203.0 million and $209.0 million, a year-over-year increase of between 78% and 83%. The guidance reflects an expectation for a seasonal decline during the fourth quarter, as well as a belief that macroeconomic conditions will begin to return to trends seen prior to the pandemic.
The company also raised its revenue forecast for the full year to between $724.0 million and $730.0 million, a year-over-year increase of between 73% and 75%; this is up from the earlier forecast of a 56% to 59% increase.
Share price and market cap
Shares in ZipRecruiter were up 15.4% to $30.74 as of 11:38 a.m. Eastern time today; they were 3.94% below the 52-week high set on Aug 13, 2021, according to FT.com. ZipRecruiter has a market cap of $3.08 billion.