Jobs website operator ZipRecruiter (NYSE: ZIP) reported first-quarter revenue fell 33.5% to $122.2 million as market conditions remain challenging. Still, there are signs the labor market woes could be bottoming out.

“Though results were above expectations discussed in our last earnings call, the labor market industry backdrop has remained challenging through the first few months of 2024,” according to a letter to shareholders signed by CEO Ian Siegel, President David Travers and CFO Tim Yarbrough.

However, second-quarter guidance calls for revenue to decline by 31% year over year and 4% sequentially at the midpoint of $117 million. It’s the lowest sequential revenue decline the company has seen since the third quarter of 2022.

“While this does not mark a return to ‘normal’ seasonality, where revenue would ramp up from Q1 to Q2, we see this as an early sign that the labor market downturn is potentially reaching a trough,” the letter stated.

ZipRecruiter also noted a 65% year-over-year increase in organic job-seeker traffic growth in the first quarter.

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Share price

Shares in ZipRecruiter were down 9.53% to $9.78 as of 11:51 a.m. Eastern time today. They set a new 52-week low during today when they reached $9.08.