SANTA MONICA, Calif. - ZipRecruiter (NYSE: ZIP), an online employment marketplace, announced the appointment of Mike Gupta to its Board of Directors and as a member of the Audit Committee, effective July 31, 2024. Concurrently, the company disclosed the resignation of Eric Liaw from the Board.
Mike Gupta brings a wealth of experience from his finance roles in the tech industry. His previous positions include Chief Financial Officer (CFO) at Calm.com, Inc. since May 2022, and prior to that, CFO at Plenty Unlimited Inc. from March 2019 to May 2022. Gupta has also served as an Operating Advisor to DCM Ventures since October 2021 and has a history of leadership roles including his tenure as CFO at Twitter, Inc. (now known as X. Corp) from 2012 to 2015.
Ian Siegel, CEO of ZipRecruiter, expressed enthusiasm for Gupta's joining, citing his strategic leadership and financial acumen as assets that will contribute to the company's mission to transform the interaction between employers and job seekers. Siegel also acknowledged Eric Liaw's contributions to ZipRecruiter and wished him well in future endeavors.
Gupta's selection for the Board is attributed to his financial expertise and executive experience in the technology sector. He holds a B.S. in Accounting and Economics from New York University Stern School of Business and an M.B.A. from the University of Chicago Booth School of Business.
In other recent news, ZipRecruiter has revealed significant corporate developments and financial performance. The company reported a 33% year-over-year revenue decline in its first quarter of 2024 earnings call. Despite this, ZipRecruiter generated $2 million in operating cash flow and $21 million in adjusted EBITDA, achieving a 17% adjusted EBITDA margin. The firm also noted the first sequential increase in quarterly paid employers since 2022, indicating a potential labor market stabilization.
The company's stockholders have approved amendments to its corporate bylaws and elected Blake Irving and Emily McEvilly as Class III directors. Additionally, the appointment of PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending December 31, 2024, was ratified.
UBS has adjusted its outlook on ZipRecruiter shares, reducing the price target to $11 from the previous $13 while maintaining a Neutral rating. This revision reflects concerns about the near-term prospects of the U.S. employment market. Furthermore, ZipRecruiter has over $510 million in cash reserves and plans to continue investing in its product and marketing efforts. These are the recent developments concerning ZipRecruiter.
InvestingPro Insights
Amidst executive board changes, ZipRecruiter (NYSE: ZIP) investors and observers are closely monitoring the company's financial health and market performance. According to InvestingPro, ZipRecruiter boasts an impressive gross profit margin of 90.24% for the last twelve months as of Q1 2024, underscoring the company's ability to maintain profitability despite challenging market conditions. Additionally, the management's confidence in the company is reflected through aggressive share buybacks, signaling a potential undervaluation of ZipRecruiter's stock.
However, the company is not without its challenges. ZipRecruiter's revenue has seen a significant decline of 32.16% over the last twelve months as of Q1 2024, and analysts anticipate a sales decline in the current year. Furthermore, the stock is currently trading near its 52-week low, which could be a point of concern or an opportunity, depending on investor sentiment.
InvestingPro Tips further reveal that ZipRecruiter operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing a cushion for operational flexibility. While the stock has experienced a notable drop over the last six months, analysts predict the company will be profitable this year, which could offer a glimmer of hope for a rebound.
The company's market capitalization stands at $828.22 million, with a Price/Earnings (P/E) ratio of 22.14, which adjusts to 20.47 when considering the last twelve months as of Q1 2024. For investors seeking more detailed analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZIP, which can provide further insights into ZipRecruiter's financials and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.