ZipRecruiter Inc is 17% lower in pre-market trading after warning that employers are becoming more reluctant to pay for job ads while the number of vacancies has slumped.
The warning took the gloss off better-than-expected second-quarter results with the job site earning $14.4 million, or 14 cents a share, compared with $13.1 million, or 11 cents a share, the year prior.
Revenue dropped 29% to $170.4 million, the company said. Analysts polled by FactSet expected earnings of 8 cents a share on sales of $170 million.
Ian Siegel, chief executive said: "The number of job openings and employers’ willingness to pay for those job openings has been declining significantly from the peaks of prior years.
"Both [small and medium businesses] and enterprise employers are posting fewer jobs while also spending less to advertise those jobs," ZipRecruiter said.
That runs counter to the seasonal hiring pattern ZipRecruiter has seen, the company said.
"The macroeconomic backdrop continues to impact our business (and the recruitment category) materially as it has throughout the ups and downs of the COVID and post-COVID period," it said.
ZipRecruiter guided for third-quarter revenue of $150 million, which would represent a 34% decline year over year.