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ZIP (ZipRecruiter) Financial Strength : 3 (As of Mar. 2025)


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What is ZipRecruiter Financial Strength?

ZipRecruiter has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

ZipRecruiter Inc displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

ZipRecruiter did not have earnings to cover the interest expense. ZipRecruiter's debt to revenue ratio for the quarter that ended in Mar. 2025 was 1.25. As of today, ZipRecruiter's Altman Z-Score is 1.96.


Competitive Comparison of ZipRecruiter's Financial Strength

For the Internet Content & Information subindustry, ZipRecruiter's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ZipRecruiter's Financial Strength Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, ZipRecruiter's Financial Strength distribution charts can be found below:

* The bar in red indicates where ZipRecruiter's Financial Strength falls into.


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ZipRecruiter Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

ZipRecruiter's Interest Expense for the months ended in Mar. 2025 was $-7.4 Mil. Its Operating Income for the months ended in Mar. 2025 was $-11.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $550.2 Mil.

ZipRecruiter's Interest Coverage for the quarter that ended in Mar. 2025 is

ZipRecruiter did not have earnings to cover the interest expense.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

ZipRecruiter's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(2.085 + 550.212) / 440.26
=1.25

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

ZipRecruiter has a Z-score of 1.96, indicating it is in Grey Zones. This implies that ZipRecruiter is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.96 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


ZipRecruiter  (NYSE:ZIP) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

ZipRecruiter has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


ZipRecruiter Financial Strength Related Terms

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ZipRecruiter Business Description

Traded in Other Exchanges
Address
604 Arizona Avenue, Santa Monica, CA, USA, 90401
ZipRecruiter Inc is an online employment marketplace. It connects millions of job seekers with companies of all sizes. It is a two-sided marketplace for work that simplifies the job market for both job seekers and employers. Unlike traditional online job sites, ZipRecruiter works like a matchmaker curating job opportunities for job seekers, and candidates for employers.
Executives
Boris F. Shimanovsky officer: Chief Technology Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
Institutional Venture Management Xv, Llc 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Institutional Venture Management Xiv, Llc 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Ryan T. Sakamoto officer: General Counsel and Secretary 604 ARIZONA AVE, SANTA MONICA CA 90401
Amy Garefis officer: Principal Accounting Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
Ian H. Siegel director, 10 percent owner, officer: Chief Executive Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
Timothy G. Yarbrough officer: Chief Business Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
Lora Bartolome officer: VP, Accounting & Controller C/O ZIPRECRUITER, INC., 604 ARIZONA AVENUE, SANTA MONICA CA 90401
David Travers officer: Chief Financial Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
Qasim Saifee officer: Chief Marketing Officer 604 ARIZONA AVE, SANTA MONICA CA 90401
J Sanford Miller 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Todd C Chaffee 10 percent owner 3000 SAND HILL ROAD, 2-250, MENLO PARK CA 94025
Jules A. Maltz 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Somesh Dash 10 percent owner 3000 SAND HILL ROAD, BUILDING 2, SUITE 250, MENLO PARK CA 94025
Stephen J Harrick 10 percent owner 3000 SAND HILL ROAD, 2-250, MENLO PARK CA 94025