Zip, which will trade under the ticker symbol ZIP, posted first-quarter profit of $9.5 million, or 12 cents a share, swinging from a loss of $11.1 million, or 15 cents a share, in the year-ago quarter.
First-quarter revenue climbed 11% to $125.4 million from $113.3 million a year earlier.
For the second quarter the Santa Monica, Calif., company forecasts an adjusted loss before interest, taxes, depreciation and amortization of $16 million to $22 million on revenue of $157 million to $163 million.
As for the risks, “We face intense competition from many well-established online job sites such as CareerBuilder (APO) - Get Apollo Global Management Inc. Class A Report, Craigslist, Glassdoor, Indeed, LinkedIn (MSFT) - Get Microsoft Corporation Report and Monster RANJY and may face additional competition from newer entrants such as Google (GOOGL) - Get Alphabet Inc. Class A Report or Facebook (FB) - Get Meta Platforms Inc. Class A Report,” the company said in its prospectus." Glassdoor and Indeed are held by Recruit Holdings. RCRUY
“Many of our existing and potential competitors are considerably larger or more established than we are and have larger work forces and more substantial marketing and financial resources.
"Price competition for job marketplaces such as ours is likely to remain high, which could limit our ability to maintain or increase our market share, revenue and/or profitability.”
In other jobs news, the U.S. economy added a disappointing 266,000 jobs in April. The report was “consistent with the idea that labor shortages have crimped the recovery," said Glassdoor Senior Economist Daniel Zha.
The unemployment rate rose to 6.1% in April from 6% in March.
TheStreet.com Founder Jim Cramer doesn't see an economic slowdown after the disappointing report.