Aug. 1 at 12:24 AM
S&P Global Ratings downgraded ZipRecruiter's issuer credit rating to 'B-' from 'B', citing intensifying competition and the company's limited scale. The agency also lowered the rating on its senior unsecured notes to 'B-', while revising the recovery rating to '3' from '4' following a recent debt repurchase. The outlook was revised to stable from negative.
S&P expects ZipRecruiter's revenue and EBITDA to stabilize at roughly
$500 million and
$60 million, respectively, over the next several years, well below their FY2022 peaks of
$905 million in revenue and
$182 million in EBITDA. The agency said the post-pandemic normalization of the labor market and a prolonged period of weak hiring have significantly reduced growth prospects.
The ratings agency also highlighted fierce competition from LinkedIn, owned by Microsoft, and Indeed/Glassdoor, which together control more than 80% of the online recruiting market.
$ZIP