Shares of ZipRecruiter Inc. ZIP dropped more than 8% in the aftermarket Tuesday after the job-posting site reported quarterly earnings above expectations but said employers are more reluctant to pay for job ads and the number of job openings has dwindled. ZipRecruiter earned $14.4 million, or 14 cents a share, in the second quarter, compared with $13.1 million, or 11 cents a share, in the second quarter of 2022. Revenue dropped 29% to $170.4 million, the company said.
“Although the over 160 million people employed in the U.S. labor force 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 said. “Both [small and medium businesses] and enterprise employers are posting fewer jobs while also spending less to advertise those jobs.” That runs counter to the seasonal hiring pattern ZipRecruiter has seen, it said.