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ZipRecruiter - AI Stock Analysis
Analysis generated April 25, 2024
ZipRecruiter is a popular online employment marketplace that connects millions of job seekers with companies of all sizes. The platform allows employers to post job openings and uses AI-driven smart matching technology to effectively find the best candidates. The company was founded in 2010 and has since grown to become a significant player in the online job search and recruitment industry.
Fundamental Analysis
ZipRecruiter's recent financials raise areas of concern. Revenue in the last quarter was $129M, down 12.95% from the prior quarter and a substantial drop of 36.65% from the same quarter last year. Net income also saw a sharp decline, with the last quarter's figures at $5.6M, which is 76.61% lower than the previous quarter and down 70.99% compared to the same period from the last year. EBITDA was $24M, a decrease of 39.84% from the previous quarter and 33.47% from the same quarter the previous year. The current P/E ratio stands at 22.65, which suggests a moderate valuation relative to earnings. It is, however, worth noting that there has been some insider selling in recent months, which could signal a lack of confidence in the company's near-term prospects.
Technical Analysis
The technical indicators for ZipRecruiter present a bearish case. The stock price today is $10.45, an 8.01% decrease from a month ago, and a 37.31% decrease from the same time last year. The Short-term moving average (SMA10) is down slightly from 10.47 to 10.46. The RSI (Relative Strength Index) is at 47.7, which points to a neutral momentum in the current market conditions. However, the overall trend suggests a bearish sentiment among investors.
Alternative Data Analysis
Alternative data presents a mixed picture. On the concerning side, ZipRecruiter has only 25 open positions, reflecting a 59% decrease in the number of jobs listed by the company in the past couple of months, along with a 7% decline in business outlook. This might suggest the company is cutting costs or consolidating operations. Conversely, there are positive indications from customer acquisition and engagement perspectives. Website traffic has increased by 31%, with an estimate of 49M visitors in recent months. Mobile app downloads are up 48%, with 6,900 users downloading their app daily. On social media, there's a small increase of 4% on Instagram, with the platform now having 26,000 followers. However, Twitter followers have remained stagnant at 21,000.
Conclusion and Recommendation
Based on the provided data, ZipRecruiter is exhibiting signs of struggle in its core financial metrics, as seen by declines in revenue, net income, and EBITDA. The technical analysis suggests bearish sentiment among investors, which aligns with the fundamental analysis. On the positive side, alternative data shows the company is making some headway in customer acquisition and engagement, which if sustained, could potentially drive future revenue growth.
Given these conflicting signals, investors should approach ZipRecruiter with caution. The company has potential in a robust job market, but current financials and market sentiment point to possible continued short-term decline. Thus, it may be suitable for risk-averse investors to wait for signs of a turnaround in its fundamental performance before considering an investment. Risk-tolerant investors might see this as a contrarian opportunity, but should do so with a clear understanding of the potential volatility and downside risk.
