ZipRecruiter Rises Sharply in Stock Market Debut

This article was originally published on this site

ZipRecruiter  (ZIP) – Get Report soared Wednesday as the online job site kicked off its first day of public trading.

Shares of the Santa Monica, Calif., company were surging nearly 17% to $20.97 at last check. Trading opened at $20 a share.

ZipRecruiter had been assigned a reference price of $18 a share on Tuesday by the New York Stock Exchange, which is intended as a guide for investors and to allow trading to begin.

Stocks Rise as Fed Moves to Soothe Inflation Fears, Treasury Yields Steady

If the stock does trade near its reference price, it would have a fully diluted valuation of about $2.4 billion based on the shares listed in a statement, Bloomberg reported. The company’s Class B shares were trading privately during the first quarter at $9 apiece.

The company’s first-quarter revenue climbed 11% from a year ago to $125.4 million. For the second quarter, the company forecast an adjusted loss before interest, taxes, depreciation and amortization of $16 million to $22 million on revenue of $157 million to $163 million.

“Twenty years after moving online, the job market remains painfully inefficient,” ZipRecruiter said in its prospectus. “Job seekers are required to navigate on their own in order to find the right jobs to apply to, usually across multiple sites, and without effective tools for monitoring new opportunities.”

Unlike traditional online job sites, ZipRecruiter said it “works like a matchmaker curating job opportunities for job seekers, and candidates for employers.”

April Jobs Report Crash: 266,000 Added Against 1 Million-Plus Forecast

“Since the founding of our company in 2010, over 2.8 million businesses and 110 million job seekers have come to ZipRecruiter for their hiring and job search needs,” the prospectus said.

The company noted that “COVID-19 dramatically suppressed the job market and put an end to a 10-year run of job growth.”

“We believe distribution of vaccines for COVID-19 will drive a broad-based and extended recovery in the hiring market on both sides of our marketplace,” the prospectus said. “We further believe that the future of work, and by extension recruiting, has been irreversibly changed.”

Cramer Doesn’t See Economic Slowdown After Jobs Report Disappoints

ZipRecruiter acknowledged that it faces “intense competition from many well-established online job sites,” including CareerBuilder, Craigslist, Glassdoor, Indeed, Monster RANJY, and Microsoft’s  (MSFT) – Get Report LinkedIn. The company may face additional competition from newer entrants such as Google  (GOOGL) – Get Report or Facebook  (FB) – Get Report.

Alphabet and Facebook are holdings in Jim Cramer’s Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells GOOGL or FB? Learn more now.