ZipRecruiter Inc. (NYSE: ZIP) reported revenue fell 29.0% year over year in the second quarter to $170.4 million but remained in line with the midpoint of guidance provided in May. Gross margin was 91%. 

The Santa Monica, California-based jobs website operator noted the number of job openings and employers’ willingness to pay for those job openings has been declining significantly from the peaks of prior years. 

“Although the over 160 million people employed in the US labor force (and the resulting 3.6% unemployment rate) remains at historically robust levels, the number of job openings and employers’ willingness to pay for those job openings has been declining significantly from the peaks of 2021 and 2022,” the company stated in a letter to shareholders. 

Both small to midsize businesses and enterprise employers are posting fewer jobs while also spending less to advertise those jobs, according to ZipRecruiter. 

“This behavior runs counter to the seasonal hiring pattern we have typically observed over the many years we have been in business,” the letter stated. “The ongoing trend of reduced demand for recruiting services continues, and we believe this is a reality that companies across the recruiting category are facing. 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.” 

In June, ZipRecruiter cut approximately 270 jobs, which represent 20% of its global workforce. In addition, CEO Ian Seigel received a 30% reduction in his base salary effective June 1. 

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Guidance 

In a conference call with investors, ZipRecruiter noted that in light of the economic backdrop, employers have continued to pull back on hiring at a “particularly noteworthy” speed, and revenue in July was down approximately 31% year over year. The company forecast third-quarter revenue of $150 million at the midpoint, representing a 34% decline year over year. The company is not providing annual guidance due to “atypical hiring patterns.” 

“We believe our technology innovation and investments, coupled with ZipRecruiter’s substantial brand awareness and strong balance sheet, are delivering great experiences to job seekers and setting us up for success when employers’ appetite for hiring recovers,” Siegel said in a press release. 

 Share price and market cap 

Shares in ZipRecruiter were down 1.73% to $15.66 as of 11:26 a.m. Eastern time today; they were 14.47% above their 52-week low, according to FT.com.