ZipRecruiter (NYSE: ZIP) reported soft hiring demand resulted in second-quarter revenue falling 27.4% year over year to $123.7 million. The job aggregator — which ranks as the sixth-largest online job advertising firm — also announced the acquisition of Breakroom, a UK-based jobs review website.

The company noted second-quarter revenue came in above the high end of guidance.

“We’re continuing to invest in product and technology initiatives, which we believe will bear significant fruit in years to come,” CEO Ian Siegel said in a press release.

ZipRecruiter announced results after close of market on 7 August.

The number of quarterly paid employers fell 31% year over year in the second quarter to 70,458. The company noted the decline was driven primarily by reduced demand from small and midsize businesses. The quarterly paid employers metric includes all actively recruiting employers (or entities acting on behalf of employers) on a paying subscription plan or performance marketing campaign for at least one day in the quarter.

“We saw signs that we were potentially approaching a trough for much of Q2, but trends in the last few weeks of June through July make us more cautious in our expectations for Q3,” according to a shareholder letter released by ZipRecruiter.

The company forecast third-quarter revenue of between $109 million and $115 million, which represents a decline of 28% at the midpoint.

Breakroom

ZipRecruiter acquired UK-based Breakroom, an employer review website focused on frontline industries such as retail and hospitality. ZipRecruiter plans to bring Breakroom, which was founded in 2020, to the US.

“While traditional employer review sites have predominantly become places where workers go to voice their job dissatisfaction, Breakroom collects insights about what the day-to-day is like working for different companies,” Siegel said in a press release. “Breakroom’s ratings give job seekers a clear picture of what it’s really like to work for an employer, setting better expectations than a traditional job description.”

Breakroom will continue to operate as an independent brand.

ZipRecruiter - Q2 2024

Share Price

Shares in ZipRecruiter were down 0.85% to $8.17 as of 11:16 a.m. Eastern time on Aug. 9. They were 13.31% above their 52-week low.