Group 1 - The discussion focuses on the journey of building ZipRecruiter and the company's objectives moving forward [1]

Summary of ZipRecruiter Conference Call Company Overview - **Company**: ZipRecruiter (NYSE: ZIP) - **Industry**: Online Recruiting - **Conference Date**: September 10, 2025 Key Points Company Journey and Strategy - ZipRecruiter was founded with the idea of creating a "magic button" to post jobs across various platforms, effectively turning the internet into a giant job board [4] - The company shifted focus from volume to quality, utilizing machine learning and deep learning to deliver high-quality candidates [5] - The current emphasis is on engagement, ensuring that employers and candidates can connect effectively [5] Competitive Landscape - The U.S. online recruiting market is valued at over $300 billion annually, with a significant portion still offline [6] - Key competitors include LinkedIn, Indeed, and ZipRecruiter, with the latter positioning itself as a matchmaker rather than just a job board [6][9] - ZipRecruiter aims to differentiate itself through technology that enables proactive engagement between employers and job seekers [9] Product Innovations - New tools include a resume database with messaging capabilities and a product called ZipIntro, which facilitates quick video interviews between employers and candidates [10][14] - The company has acquired BreakRoom, which provides structured information for job seekers, particularly in frontline roles [14][15] AI Integration - ZipRecruiter has been utilizing AI for nearly a decade, focusing on algorithmic matching to improve candidate-employer connections [17] - Future AI applications aim to enhance engagement speed between job seekers and employers [18] - AI is also being used internally to improve operational efficiency, particularly in coding and repetitive tasks [20][21] Market Dynamics - The labor market has experienced a significant downturn over the past 30 months, but recent data shows signs of stabilization and potential growth [31][32] - The company reported a 10% increase in unique employers in Q1 compared to the previous quarter, indicating a recovery trend [32][56] - The revenue mix is currently 80% from SMBs and 20% from enterprises, with a goal to shift to a 50/50 split over time [24][26] Financial Outlook - ZipRecruiter aims for a long-term adjusted EBITDA margin of 30%, currently operating at mid-single-digit margins due to ongoing investments [48][49] - The company maintains a strong capital position, prioritizing organic investments and potential M&A opportunities [51][52] Future Focus - Key areas of focus for the next year include enhancing product engagement metrics and expanding enterprise solutions [57] - The company is optimistic about achieving year-over-year growth in Q4 2025, driven by improved market conditions and product effectiveness [33][34] Additional Insights - The company recognizes the importance of brand recognition, with over 80% awareness among both employers and job seekers [13] - The integration with third-party applicant tracking systems poses challenges for enterprise sales, but significant progress has been made [28] This summary encapsulates the essential insights from the ZipRecruiter conference call, highlighting the company's strategic direction, competitive positioning, and market outlook.

Financial Performance - ZipRecruiter, Inc. reported a quarterly loss of $0.1 per share, better than the Zacks Consensus Estimate of a loss of $0.13, and compared to earnings of $0.07 per share a year ago, representing an earnings surprise of +23.08% [1] - The company posted revenues of $112.23 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.82%, but down from $123.66 million year-over-year [2] - Over the last four quarters, ZipRecruiter has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - ZipRecruiter shares have declined approximately 44.9% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The current status of estimate revisions translates into a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the coming quarter is -$0.16 on revenues of $112.39 million, and -$0.59 on revenues of $446.17 million for the current fiscal year [7] - The outlook for the industry can significantly impact the stock's performance, with the Business - Services industry currently in the top 40% of Zacks industries [8]

Financial Data and Key Metrics Changes - ZipRecruiter's Q2 2025 revenue was $112.2 million, representing a 2% sequential increase from Q1 2025, which had revenue of $110.1 million [5][14] - The number of quarterly paid employers (QPEs) reached 66,300 in Q2 2025, marking a 4% sequential increase from Q1 2025 [14] - Revenue per paid employer for Q2 was $16.93, down 4% year over year and down 2% sequentially [14] - The net loss for Q2 2025 was $9.5 million, compared to a net income of $7 million in Q2 2024 [14] - Adjusted EBITDA for Q2 was $9.3 million, resulting in an 8% margin, down from 23% in 2024 [14] Business Line Data and Key Metrics Changes - The acquisition of Breakroom has led to the publication of over 8,000 employer pages with more than 1 million ratings as of July 2025 [7][10] - The introduction of AI-powered features in the resume database for SMBs resulted in a 12% increase in the number of SMB customers unlocking resumes in Q2 2025 compared to Q1 2025 [8][12] - The enterprise customer adoption of ZipIntro increased significantly, with scheduled sessions growing by 90% quarter over quarter [7][11] Market Data and Key Metrics Changes - The overall labor market remains soft, with a low quit rate, but signs of stabilization and momentum are emerging across both SMBs and enterprises [20][22] - Healthcare continues to show strong demand for new labor, while education is experiencing a year-over-year decline despite a sequential increase [27][28] Company Strategy and Development Direction - The company is focused on product and technology investments to enhance matching and engagement between employers and job seekers [9] - ZipRecruiter aims to lead the shift from offline to online recruiting solutions and capitalize on the labor market recovery [8][12] - The company plans to maintain disciplined capital deployment while investing in innovative product initiatives and high ROI marketing campaigns [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to modest year-over-year revenue growth in Q4 2025, driven by stabilization in the business [6][15] - Despite ongoing macroeconomic challenges, the company has maintained adjusted EBITDA profitability while investing in product and technology [16][17] - The management noted that the hiring environment remains challenging, but they are optimistic about the potential for recovery [60] Other Important Information - The company has a strong cash position, with cash, cash equivalents, and marketable securities totaling $421.2 million as of June 30, 2025 [14] - The guidance for Q3 2025 revenue is between $110 million and $160 million, with the midpoint representing a 1% increase quarter over quarter [14][15] Q&A Session Summary Question: Differences between SMBs and enterprise hiring trends - Management noted that hiring remains muted but there are signs of stabilization and momentum across both SMBs and enterprises [20][22] Question: Future hiring needs and AI's impact - Conversations with employers indicate a slight reduction in anxiety around tariffs, but overall hiring remains uncertain [26][30] Question: Generative AI's impact on traffic - The use of generative AI tools has increased traffic to ZipRecruiter, particularly for research-oriented job seeker queries [38][39] Question: AI features and compliance with hiring regulations - The company is committed to ensuring compliance with hiring laws while deploying AI technologies [45][46] Question: Impact of ZipIntro on hiring outcomes - ZipIntro has significantly improved engagement between job seekers and employers, leading to higher response rates [51][52] Question: Pricing and monetization strategies - The company is focused on delivering value first before considering price increases, especially during a period of declining demand [66][68] Question: Future of Breakroom and its impact on KPIs - Breakroom is expected to enhance employer branding and job seeker confidence, leading to increased engagement and potential monetization opportunities [74][75]

Financial Performance & Metrics - ZipRecruiter's Q1 2025 revenue reached $110.1 million[12] - The Adjusted EBITDA for Q1 2025 was $5.9 million, representing a 5% margin[12] - Revenue per Paid Employer in Q1 2025 was $1,734[12] - The company achieved a healthy 16% Adjusted EBITDA margin for FY 2024[15] Market Position & Growth - ZipRecruiter operates within a large Total Addressable Market (TAM) exceeding $300 billion in the recruiting industry[15, 16, 64, 65] - The company has amassed over 4 million businesses and over 170 million job seekers on its platform since its founding[15, 21] - ZipRecruiter delivered over 40 million "Great Match" candidates in 2024[15, 23] - ZipRecruiter has achieved 80% aided brand awareness among U S employers and job seekers[15, 42] - Online recruiting is growing faster (4 6% CAGR from 2020-2029) than the overall recruiting market (3 2% CAGR from 2020-2029)[69] Business Model & Technology - 78% of ZipRecruiter's revenue comes from flat-rate pricing (subscription plans), while 22% comes from performance-based pricing (cost-per-click)[26, 29] - 80% of employers using ZipRecruiter receive a quality candidate within the first 24 hours[23]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-40406 ZIPRECRUITER, INC. (Exact name of registrant as specified in its charter) Delaware 27-2976158 (State or other jurisdiction of incorporation or organization) (I.R.S. Emp ...

[Item 2.02: Results of Operations and Financial Condition](index=4&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) ZipRecruiter announced Q2 2025 financial results and outlook, with GAAP to non-GAAP reconciliation in accompanying documents - The company announced Q2 2025 financial results on August 11, 2025, through a press release and shareholder letter[5](index=5&type=chunk) - Non-GAAP financial information is included in the shareholder letter and earnings call, with GAAP reconciliation in the shareholder letter (Exhibit 99.2)[7](index=7&type=chunk) [Item 7.01: Regulation FD Disclosure](index=4&type=section&id=Item%207.01%20Regulation%20FD%20Disclosure) The company discloses material information through SEC filings, its investor relations website, press releases, public calls, and social media - ZipRecruiter utilizes its investor relations website, SEC filings, press releases, and social media (X, Facebook, LinkedIn) to disseminate material information to investors[8](index=8&type=chunk) [Item 8.01: Other Events](index=4&type=section&id=Item%208.01%20Other%20Events) The Board of Directors authorized an additional **$100.0 million** for the existing share repurchase program on August 8, 2025 [Share Repurchase Program Authorization](index=4&type=section&id=Share%20Repurchase%20Program%20Authorization) The Board authorized an additional **$100.0 million** for the share repurchase program, with **$39.2 million** remaining from prior authorization - On August 8, 2025, the Board of Directors authorized an additional **$100.0 million** for the company's share repurchase program[9](index=9&type=chunk) Share Repurchase Program Status | Description | Amount (USD) | | :--- | :--- | | Previous Aggregate Authorization | $650.0 million | | Additional Authorization (Aug 8, 2025) | $100.0 million | | Available for Repurchase (as of Jun 30, 2025) | ~$39.2 million | - The share repurchase program has no expiration date and does not obligate the company to repurchase a specific number of shares, with timing and volume dependent on market conditions[10](index=10&type=chunk) [Cautionary Statement Regarding Forward-Looking Statements](index=5&type=section&id=Cautionary%20Statement%20Regarding%20Forward-Looking%20Statements) The report includes forward-looking statements, especially regarding the share repurchase program, subject to risks detailed in SEC filings - The report contains forward-looking statements regarding the share repurchase program, which are not guarantees of future performance[12](index=12&type=chunk) - Actual results may differ materially due to risks and uncertainties detailed in the company's SEC filings, including Form 10-K and Form 10-Q[12](index=12&type=chunk) [Item 9.01: Financial Statements and Exhibits](index=5&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the Form 8-K exhibits, comprising the Q2 2025 earnings press release, shareholder letter, and Inline XBRL cover page Exhibits Filed | Exhibit | Description | | :--- | :--- | | 99.1 | Press Release, dated August 11, 2025 | | 99.2 | Shareholder Letter, dated August 11, 2025 | | 104 | The cover page from this Current Report on Form 8-K, formatted in Inline XBRL |

Financial Highlights - Q1 2025 revenue reached $110.1 million[12] - Q1 2025 Adjusted EBITDA was $5.9 million, representing a 5% margin[12] - Q1 2025 Revenue per Paid Employer was $1,734[12] - For FY 2024, the Adjusted EBITDA margin was a healthy 16%[15] Market Opportunity and Growth - The recruiting industry presents a Total Addressable Market (TAM) of over $300 billion[15, 63] - Online recruiting is growing faster than the overall recruiting category[65] - ZipRecruiter's revenue grew at a 15.6% Compound Annual Growth Rate (CAGR) from 2020-2023, outpacing the online recruiting market's 5.6% CAGR[70] - Flat-rate pricing accounts for 78% of revenue, while performance-based pricing accounts for 22% based on the three months ended March 31, 2025[26, 29, 30] Platform and User Engagement - ZipRecruiter connects over 4 million employers and over 170 million job seekers[15, 21] - Over 40 million "Great Match" candidates were delivered in 2024[15, 23] - 80% of employers receive a quality candidate within the first 24 hours of posting a job on ZipRecruiter[23] - ZipRecruiter has achieved over 80% aided brand awareness among U S employers and job seekers[15, 42]

Group 1 - ZipRecruiter, Inc. (ZIP) shares have increased by 43.4% over the past four weeks, closing at $6.25, with a mean price target of $8 indicating a potential upside of 28% [1] - The mean estimate consists of five short-term price targets with a standard deviation of $1.87, where the lowest estimate is $6 (4% decline) and the highest is $10 (60% increase) [2] - Analysts show a strong agreement in revising earnings estimates higher, which correlates with potential stock price movements [11] Group 2 - The Zacks Consensus Estimate for the current year has risen by 1.1% over the past month, with two estimates increasing and one decreasing [12] - ZIP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] - While the consensus price target may not be a reliable indicator of potential gains, it suggests a positive direction for price movement [13]

ZipRecruiter (ZIP) FY Conference Summary Company Overview - ZipRecruiter has been in business for fifteen years and has maintained profitability with a balance sheet of $468 million [2] - It is the number one rated employer site for recruiting and has been the top job search app for over five years on both Android and iOS [2] - The company has experienced significant job seeker traffic growth, outpacing competitors [2] Financial Performance - In the previous year, ZipRecruiter achieved over $70 million in adjusted EBITDA, representing a 16% margin [3] - Q1 revenue was reported at $110 million with adjusted EBITDA of $5.9 million [19] - The revenue per paid employer was $1,734 per quarter, showing an 11% compounded annual growth rate since 2021 [20] Market Position and Industry Insights - The recruiting industry in the U.S. has a total addressable market (TAM) of over $300 billion, with a majority of spending still directed towards offline recruiting [4][25] - ZipRecruiter, along with other online platforms, accounts for a small fraction of the overall revenue in the recruiting category [5] - The company is positioned for disruption in the recruiting market as technology solutions gain acceptance among employers [5] Strategic Initiatives - ZipRecruiter has invested over $1 billion in marketing to build brand recognition, which is crucial in the recruiting category [3][13] - The company has developed proprietary algorithms and a robust R&D center in Israel to enhance candidate matching through advanced technologies like machine learning and AI [8][10] - The introduction of "Phil," an AI personal recruiter, has improved user engagement and experience [11][12] Recent Trends and Future Outlook - There has been a noticeable stabilization in hiring trends since December, with a 10% sequential increase in paid employer numbers from Q4 to Q1 [31] - The company anticipates a return to year-over-year growth in Q4 2025, driven by improved market conditions [23] - Flexibility in operating expenses has allowed ZipRecruiter to remain profitable despite market downturns [24][28] Competitive Advantages - ZipRecruiter possesses a large proprietary dataset from interactions between job seekers and employers, providing an unfair advantage in matching capabilities [26] - The company enjoys over 80% aided brand awareness among job seekers and employers, which has helped it weather recent market challenges [27] - The platform's ability to connect job seekers and employers quickly is emphasized through innovations like "Zip Intro," which facilitates rapid interviews [47] Challenges and Market Dynamics - The recruiting industry faces challenges from entrenched behaviors and skepticism towards new solutions, particularly in offline recruiting [49] - ZipRecruiter aims to demonstrate its value by providing faster and more cost-effective recruiting solutions compared to traditional methods [50] Conclusion - ZipRecruiter is well-capitalized and strategically positioned to capitalize on the recovery of the labor market, with a focus on leveraging technology and brand strength to drive future growth [28]