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ZipRecruiter Stock Drops on Wider-Than-Expected Loss

ZipRecruiter reported that its second-quarter revenue doubled but it swung to a net loss. The stock is lower.
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Shares of ZipRecruiter  (ZIP) - Get ZipRecruiter, Inc. Class A Report fell on Friday after the online employment marketplace reported a wider-than-expected second-quarter loss on a doubling of revenue. 

The Santa Monica, Calif., company swung to a net loss of 55 cents a share from a year-earlier profit of 18 cents a share. Revenue reached $183 million from $87.7 million.

Analysts surveyed by FactSet were expecting ZipRecruiter to report a net loss of 20 cents a share on revenue of $160.2 million. 

"We are seeing high levels of activity on both sides of our marketplace," Chief Executive Ian Siegel said in a statement. 

Shares of ZipRecruiter at last check were down 3.9% to $27.90. They began trading publicly in June.

The company raised its full-year revenue guidance. 

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ZipRecruiter now expects full year revenue between $651 million and $665 million, up from its previous view between $580 million and $600 million. 

Analysts are expecting full year revenue of $668.5 million, according to FactSet. 

Revenue for the third quarter is expected at $182 million to $188 million. Analysts are expecting $188.3 million. 

The company reported a more than doubling (120% increase) in the number of employers who pay to use the company's platform. The average employer paid $1,081 on the site, a 5% increase from a year earlier. 

In June, shortly after the stock made its public debut, Evercore ISI analyst Mark Mahaney initiated coverage of ZipRecruiter with an outperform rating and a $31 share price target.