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ZipRecruiter (ZIP)

ZipRecruiter® is a leading online employment marketplace that actively connects people to their next great opportunity. ZipRecruiter’s powerful matching technology improves the job search experience for job seekers and helps businesses of all sizes find and hire the right candidates quickly. ZipRecruiter has been the #1 rated job search app on iOS & Android for the past four years1 and is rated the #1 employment marketplace by G2.2

Company profile

Ticker
ZIP
Exchange
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
ZipRecruiter Canada Ltd. • ZipRecruiter Israel Ltd. • ZipRecruiter UK Ltd. ...
IRS number
272976158

ZIP stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$22.50
Low target
$19.00
High target
$26.00
JP Morgan
Maintains
Neutral
$19.00
29 Jun 22
Goldman Sachs
Maintains
Buy
$26.00
10 Jun 22

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

13 May 22
12 Aug 22
31 Dec 22
Quarter (USD) Mar 22 Dec 21 Sep 21 Jun 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 745.39M 745.39M 745.39M 745.39M 745.39M 745.39M
Cash burn (monthly) (no burn) (no burn) (no burn) 923.42K (no burn) (no burn)
Cash used (since last report) n/a n/a n/a 4.08M n/a n/a
Cash remaining n/a n/a n/a 741.31M n/a n/a
Runway (months of cash) n/a n/a n/a 802.8 n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
20 Jul 22 Ryan T. Sakamoto Class A Common Stock Sell Dispose S No Yes 16.88 1,787 30.16K 70,724
21 Jun 22 Ryan T. Sakamoto Class A Common Stock Sell Dispose S No Yes 17.17 1,786 30.67K 72,511
15 Jun 22 David Travers Class A Common Stock Payment of exercise Dispose F No No 15.35 23,992 368.28K 1,001,243
15 Jun 22 David Travers Class A Common Stock Conversion Acquire C No No 0 38,719 0 1,025,235
15 Jun 22 David Travers Class A Common Stock Option exercise Acquire M No No 0 6,250 0 986,516
15 Jun 22 David Travers Class B Common Stock Class A Common Stock Conversion Dispose C No No 0 38,719 0 0
15 Jun 22 David Travers Class B Common Stock Class A Common Stock Option exercise Acquire M No No 0 38,719 0 38,719
15 Jun 22 David Travers RSU Class B Common Stock Option exercise Dispose M No No 0 11,625 0 116,250
15 Jun 22 David Travers RSU Class B Common Stock Option exercise Dispose M No No 0 6,781 0 40,688
15 Jun 22 David Travers RSU Class B Common Stock Option exercise Dispose M No No 0 20,313 0 40,625
96.9% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 123 117 +5.1%
Opened positions 34 47 -27.7%
Closed positions 28 14 +100.0%
Increased positions 42 38 +10.5%
Reduced positions 28 15 +86.7%
13F shares Current Prev Q Change
Total value 1.6B 1.71B -6.5%
Total shares 84.77M 83.74M +1.2%
Total puts 228.85K 189.85K +20.5%
Total calls 2.16M 559K +286.6%
Total put/call ratio 0.1 0.3 -68.8%
Largest owners Shares Value Change
Institutional Venture Partners XIV 15.11M $0 0.0%
Institutional Venture Management XIV 15.11M $347.21M 0.0%
Wasatch Advisors 12.59M $289.4M +5.1%
Institutional Venture Management XV 7.59M $174.38M 0.0%
ArrowMark Colorado 5.13M $117.94M +50.4%
FMR 4.56M $104.78M +18.4%
Vanguard 3.77M $86.58M -10.7%
William Blair Investment Management 2.49M $57.15M +7.5%
Lord, Abbett & Co. 2.25M $51.78M -17.9%
Victory Capital Management 1.8M $41.41M -8.2%
Largest transactions Shares Bought/sold Change
Wellington Management 0 -1.99M EXIT
ArrowMark Colorado 5.13M +1.72M +50.4%
Checchi Capital Advisers 1.49M +1.49M NEW
Driehaus Capital Management 0 -1.38M EXIT
FMR 4.56M +709.03K +18.4%
Beacon Pointe Advisors 17.74K -617.51K -97.2%
Wasatch Advisors 12.59M +612.53K +5.1%
Leonard Green & Partners 0 -500K EXIT
Lord, Abbett & Co. 2.25M -491.26K -17.9%
Vanguard 3.77M -453.57K -10.7%

Financial report summary

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Competition
DHIRecruiter.comUpwork
Risks
  • We face intense competition and could lose market share to our competitors, which could adversely affect our business, operating results, and financial condition.
  • COVID-19 has caused significant uncertainty and disruption in our business operations. The ongoing effects of the COVID-19 pandemic continue to be unpredictable, and may have an adverse effect on our business, results of operations, and financial condition.
  • Our business is significantly affected by fluctuations in general economic conditions, which have been adversely affected by the COVID-19 pandemic. There is risk that any economic recovery may be short-lived and uneven, and may not result in increased demand for our services.
  • Our marketplace functions on software that is highly technical and complex and if it fails to perform properly, our reputation could be adversely affected, our market share could decline and we could be subject to liability claims.
  • Our future success depends in part on employers purchasing and renewing or upgrading subscriptions and performance-based services from us. Any decline in our user renewals or upgrades or performance-based services could harm our future operating results.
  • We have experienced growth in recent periods and expect to continue to invest in our growth for the foreseeable future. If we cannot manage our growth effectively, our business, operating results, and financial condition could be adversely affected.
  • Significant segments of the market for job advertisement services may have hiring needs and service preferences that are subject to greater volatility than the overall economy.
  • Our efforts and ability to sell to a broad mix of businesses could adversely affect our operating results in a given period.
  • Our business depends largely on our ability to attract and retain talented employees, including senior management and key personnel. If we lose the services of Ian Siegel, our Chief Executive Officer, or other members of our senior management team, we may not be able to execute on our business strategy.
  • If internet search engines’ methodologies or other channels that we use to direct traffic to our website are modified to our disadvantage, or our search result page rankings decline for other reasons, our user growth could decline.
  • Our quarterly results may fluctuate significantly and may not fully reflect the underlying performance of our business, which makes our future results difficult to predict.
  • Our success depends on our ability to maintain the value and reputation of the ZipRecruiter brand.
  • If we are not able to provide successful enhancements, and new products, services, and features, our business could be adversely affected.
  • Issues with the use of artificial intelligence (including machine learning) in our marketplace may result in reputational harm or liability.
  • The forecasts of growth of online recruitment may prove to be inaccurate, and even if the market in which we compete achieves the forecasted growth, we cannot assure you that our business will grow at a similar rate, if at all.
  • The growth of our marketplace depends in part on the success of our strategic relationships with our Job Distribution Partners and Job Acquisition Partners.
  • Our corporate culture has contributed to our success, and if we cannot maintain this culture as we grow, we could lose the innovation, creativity, and teamwork fostered by our culture, and our business may be harmed.
  • Technological advances may significantly disrupt the labor market and weaken demand for human capital at a rapid rate.
  • Our business is seasonal.
  • We track certain performance metrics with internal tools and do not independently verify such metrics. Certain of our performance metrics are subject to inherent challenges in measurement, and real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business.
  • We derive substantially all of our revenue from job advertisements.
  • Failure to effectively expand our sales and marketing capabilities could harm our ability to increase our user base and achieve broader market acceptance of our services.
  • Paid Employers may demand more configuration and integration services, or customized features and functions that we do not offer, which could adversely affect our business and operating results.
  • Any failure to offer high-quality technical support services may adversely affect our relationships with our Paid Employers and our financial results.
  • We have a history of net losses, anticipate increasing our operating expenses in the future, and may not sustain profitability.
  • We rely on Amazon Web Services, or AWS, to host our marketplace, and any disruption of service from AWS or material change to our arrangement with AWS could adversely affect our business.
  • Many people are using mobile devices to access the internet. If we cannot optimize our websites for mobile access or offer a compelling mobile app, we may not remain competitive and could lose employers and job seekers.
  • If we or our third-party partners experience a security breach, such as a hacking or phishing attack, or other data privacy or security incident, our marketplace may be perceived as not being secure, our reputation may be harmed, demand for our marketplace may be reduced, our operations may be disrupted, we may incur significant legal costs or liabilities, and our business could be adversely affected.
  • We face payment and fraud risks that could adversely impact our business.
  • Changes in laws or regulations relating to data privacy or the protection, collection, storage, processing, transfer, or use of personal data, or any actual or perceived failure by us to comply with such laws and regulations or our privacy policies, could adversely affect our business.
  • Failure to comply with anti-corruption and anti-money laundering laws, including the Foreign Corrupt Practices Act, or FCPA, and similar laws associated with our activities outside of the United States, could subject us to penalties and other adverse consequences.
  • We are subject to a wide variety of foreign and domestic laws. As we look to expand our international footprint over time and as new domestic laws are implemented, we may become obligated to comply with additional laws and regulations of the countries or markets in which we operate or have employers and job seekers.
  • We plan to expand our international operations which could subject us to additional costs and risks, and our continued expansion internationally may not be successful.
  • Privacy concerns and laws or other domestic or foreign regulations may reduce the effectiveness of our marketplace, disrupt our communication processes, and adversely affect our business.
  • From time to time, we may be subject to legal proceedings, regulatory disputes, and governmental investigations that could cause us to incur significant expenses, divert our management’s attention, and materially harm our business, financial condition, and operating results.
  • Our failure or inability to protect our intellectual property rights, or claims by others that we are infringing upon or unlawfully using their intellectual property, could diminish the value of our brand and weaken our competitive position, and adversely affect our business, financial condition, operating results, and prospects.
  • Adverse tax laws or regulations could be enacted or existing laws could be applied to us or our employers and job seekers, which could increase the costs of our services and adversely impact our business.
  • Our business is subject to the risk of earthquakes, fire, power outages, floods, public health crises, including the current COVID-19 pandemic, and other catastrophic events, and to interruption by man-made problems such as terrorism.
  • Our indebtedness could adversely affect our liquidity and financial condition.
  • We may not be able to generate sufficient cash to service all of our indebtedness, and may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful.
  • Covenants in our debt agreements may restrict our operations, and if we do not effectively manage our business to comply with these covenants, our financial condition could be adversely impacted.
  • We may engage in merger and acquisition activities, which could require significant management attention, disrupt our business, dilute stockholder value, consume resources that are necessary to sustain our business, and adversely affect our operating results.
  • We may require additional capital to support business growth and objectives, and this capital might not be available to us on reasonable terms, if at all, and may result in stockholder dilution.
  • The requirements of being a public company, including maintaining adequate internal control over our financial and management systems, may strain our resources, divert management’s attention, and affect our ability to attract and retain executive management and qualified board members.
  • Our management team has limited experience managing a public company.
  • Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States.
  • If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
  • Fluctuations in currency exchange rates could harm our operating results and financial condition.
  • Market volatility may affect the value of an investment in our Class A common stock and could subject us to litigation.
  • The dual class structure of our common stock concentrates voting control with those stockholders who held our capital stock prior to our listing, including our directors, executive officers, and 5% stockholders. This ownership will limit or preclude your ability to influence corporate matters, including the election of directors and the approval of any change of control transaction.
  • The dual class structure of our common stock may adversely affect the trading market for our Class A common stock.
  • Our share repurchase program could affect the price of our Class A common stock and increase volatility and may be suspended or terminated at any time, which may result in a decrease in the trading price of our Class A common stock.
  • If securities or industry analysts do not publish research, or publish inaccurate or unfavorable research, about our business or our future prospects, the price of our Class A common stock and trading volume could decline.
  • We are an “emerging growth company” and intend to take advantage of the reduced disclosure requirements applicable to emerging growth companies which may make our Class A common stock less attractive to investors.
  • We do not intend to pay dividends for the foreseeable future.
  • Provisions in our charter documents and under Delaware law could make an acquisition of us, which may be beneficial to our stockholders, more difficult and may limit attempts by our stockholders to replace or remove our current management.
  • Our amended and restated certificate of incorporation and our restated bylaws contain exclusive forum provisions for certain claims, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers, or employees.
Management Discussion
  • (3)Includes one-time charges related to accounting and legal expenses and other filing costs in connection with our Direct Listing totaling $0 and $2.1 million in the three months ended March 31, 2022 and 2021, respectively.

Content analysis

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