SANTA MONICA, Calif.--(BUSINESS WIRE)--ZipRecruiter, Inc. (NYSE:ZIP), a leading online employment marketplace, today announced that it has entered into an accelerated share repurchase agreement (“ASR”) with Goldman Sachs & Co. LLC to repurchase $50 million of ZipRecruiter’s common stock.
Under the ASR, ZipRecruiter will make an initial payment of $50 million to Goldman Sachs & Co. LLC and will receive an initial delivery of approximately 1.8 million shares of its common stock by March 23, 2022. The final number of shares to be repurchased will be based on the volume-weighted average price of ZipRecruiter’s common stock during the term of the ASR, less a discount. The final settlement of the ASR is expected to occur by the second quarter of 2022.
The ASR transaction will be effectuated pursuant to ZipRecruiter’s previously announced $100 million share repurchase program. As of March 15, 2022, approximately $87.7 million remained available for future repurchases under this program and approximately $37.7 million will remain available after completion of the ASR. There is no expiration date for the share repurchase program, and it will continue until otherwise suspended, terminated or modified at any time for any reason by ZipRecruiter’s board of directors.
ZipRecruiter believes investing in undervalued equity is an attractive option in its balanced capital allocation approach. ZipRecruiter also believes in its ability to generate strong cash flow and invest in attractive organic and inorganic opportunities in the future.
About ZipRecruiter
ZipRecruiter® (www.ziprecruiter.com) is a leading online employment marketplace that actively connects people to their next great opportunity. ZipRecruiter’s powerful matching technology improves the job search experience for job seekers and helps businesses of all sizes find and hire the right candidates quickly. ZipRecruiter has been the #1 rated job search app on iOS & Android for the past five years1 and is rated the #1 employment job site by G2.2 For more information, visit https://www.ziprecruiter.com/.
Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, which include, without limitation, statements regarding the expected completion and completion date of the ASR, the duration of the share repurchase program and ZipRecruiter’s expected financial and operational performance. The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “propose,” “endeavor,” “will,” “should,” “future,” “transition,” “outlook” and similar expressions, as they relate to ZipRecruiter, are intended to identify forward-looking statements. These statements are not guarantees of future performance, and are based on management’s expectations as of the date of this press release and assumptions that are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to differ materially from any future results, performance or achievements. With respect to the proposed ASR transaction and ZipRecruiter’s long-term opportunities, ZipRecruiter’s ability to execute such a transaction and take advantage of such opportunities are subject to risks and uncertainties including, developments or changes in economic or market conditions, developments or changes in the securities markets, fluctuations in the trading volume and market price of ZipRecruiter’s common stock, the effects of the COVID-19 pandemic on ZipRecruiter’s business and the economy generally, and other factors identified in ZipRecruiter’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the Securities and Exchange Commission on March 3, 2022. The foregoing list of risks and uncertainties is illustrative, but is not exhaustive. Additional information will also be set forth in ZipRecruiter’s future quarterly reports on Form 10-Q, annual reports on Form 10-K and other filings that it makes with the Securities and Exchange Commission. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Except as may be required by law, ZipRecruiter undertakes no obligation, and does not intend, to update these forward-looking statements after the date of this release.
1 Based on job seeker app ratings, during the period of January 2017 to January 2022 from AppFollow for ZipRecruiter, CareerBuilder, Glassdoor, Indeed, LinkedIn, and Monster.
2 Based on G2 satisfaction ratings as of January 1, 2022.