It's been a mediocre week for ZipRecruiter, Inc. (NYSE:ZIP) shareholders, with the stock dropping 17% to US$5.76 in the week since its latest full-year results. Revenue hit US$474m in line with forecasts, although the company reported a statutory loss per share of US$0.13 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for ZipRecruiter

After the latest results, the consensus from ZipRecruiter's seven analysts is for revenues of US$452.0m in 2025, which would reflect a measurable 4.6% decline in revenue compared to the last year of performance. Losses are forecast to balloon 347% to US$0.58 per share. Before this earnings announcement, the analysts had been modelling revenues of US$465.1m and losses of US$0.25 per share in 2025. So it's pretty clear the analysts have mixed opinions on ZipRecruiter after this update; revenues were downgraded and per-share losses expected to increase.

The consensus price target fell 25% to US$7.80, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ZipRecruiter at US$10.00 per share, while the most bearish prices it at US$6.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 4.6% annualised decline to the end of 2025. That is a notable change from historical growth of 2.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 10% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ZipRecruiter is expected to lag the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ZipRecruiter. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ZipRecruiter analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - ZipRecruiter has 2 warning signs we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.