Financial Data and Key Metrics Changes - Revenue in Q3 2025 was $115 million, representing a 2% decline year-over-year but a 2% increase sequentially, exceeding the midpoint of guidance [10] - Quarterly paid employers reached 67,000, increasing 3% year-over-year and 1% sequentially, marking the first year-over-year growth since Q1 2022 [10][11] - Revenue per paid employer for Q3 2025 was $1,717, down 4% year-over-year but up 1% sequentially [11] - Net loss in Q3 2025 was $9.8 million, with adjusted EBITDA of $9.2 million, resulting in an adjusted EBITDA margin of 8% [11] - Cash, cash equivalents, and marketable securities totaled $411 million as of September 30, 2025 [11] Business Line Data and Key Metrics Changes - Performance-based revenue grew 12% quarter-over-quarter, making up 24% of total revenue in Q3 2025, up from 22% in the prior quarter [11] - Quarterly paid employers increased by 1% sequentially and 3% year-over-year, indicating strong brand value despite a subdued hiring market [7][11] - Enterprise customer adoption of automated campaign performance optimization increased by 19% quarter-over-quarter [8] Market Data and Key Metrics Changes - Job seeker visits from generative AI models increased by 140% sequentially, indicating a growing channel of job seeker traffic [5][9] - Breakroom, a workplace rating platform, published over 10,000 employer profiles, up from 8,000 in the prior quarter, powered by over 1 million ratings from workers [9] Company Strategy and Development Direction - The company is focused on product and technology investments to drive better matching and engagement across its marketplace [7] - The strategy includes optimizing for AI-driven discovery and enhancing the job seeker application experience through tools like ZipApply [5][6] - The company aims to capture market share as the labor market recovers, leveraging its strong brand and product offerings [6] Management's Comments on Operating Environment and Future Outlook - Management noted a persistently soft labor market but highlighted consistent revenue growth and paid employer growth from Q1 to Q3 2025 [4] - The guidance for Q4 2025 anticipates revenue between $109 million and $115 million, representing a 1% year-over-year increase [11][12] - Management expects continued stability in the hiring environment, with normal seasonal slowness during the holiday periods [12] Other Important Information - The company repurchased 2.2 million shares for a total of $10 million during Q3 2025 [11] - The adjusted EBITDA guidance midpoint for Q4 2025 is $14 million, implying a full-year adjusted EBITDA margin of 9% [12] Q&A Session Summary Question: Market reception for products like automated campaign optimization and ZipIntro - Management indicated that product strategy is working, with evidence of revenue and utilization growth despite macro challenges [14][15] Question: Macro view and guidance for Q4 - Management observed a modest decline in hiring but expects the current market trend to continue into Q4 [19][21] Question: Q4 margin strength versus earlier mid-single-digit characterization - Management explained that Q4 margins reflect typical seasonal patterns in marketing investments, with a focus on high ROI opportunities [22] Question: Drivers of quarterly paid employer trends - Growth is attributed to both new paid employers and reactivations of former employers, reflecting strong customer acquisition and engagement [32][33] Question: Conversion quality from generative AI traffic - Management noted that the quality of traffic from generative AI is on par with traditional sources, with ongoing optimization efforts [34][36]

Financial Highlights - Q3 2025 revenue reached $115 million[12] - Q3 2025 Adjusted EBITDA was $92 million, representing an 8% margin[12] - Q3 2025 Revenue per Paid Employer was $1,717[12] - The company achieved a healthy 16% Adjusted EBITDA margin for FY 2024[15] Market and Business Overview - The recruiting industry presents a large Total Addressable Market (TAM) exceeding $300 billion[15, 16, 61, 62] - The company connects over 4 million employers and over 170 million job seekers[15, 20] - The company delivered over 40 million Great Match candidates in 2024[15, 22] - 80% of employers using the platform receive a quality candidate within the first 24 hours[15, 22] - The company has achieved 80% aided brand awareness among U S employers and job seekers since its founding[15, 41] Revenue Model - 76% of revenue is generated from flat-rate pricing (daily, monthly, and annual subscription plans)[25] - 24% of revenue is generated from performance-based pricing (cost-per-click on job postings)[28]

Financial Performance - For the three months ended September 30, 2025, the company's revenue was $115.0 million, a decrease of 1% compared to $117.1 million for the same period in 2024[126]. - The net loss for the three months ended September 30, 2025, was $9.8 million, compared to a net loss of $2.6 million in the same quarter of 2024[126]. - Adjusted EBITDA for the three months ended September 30, 2025, was $9.2 million, down from $15.0 million in the same quarter of 2024, resulting in an Adjusted EBITDA margin of 8%[126][136]. - Total revenue for the three months ended September 30, 2025, was $114,982, a decrease of $2,102, or 2%, compared to $117,084 for the same period in 2024[158]. - For the nine months ended September 30, 2025, total revenue was $337,279, down $25,702, or 7%, from $362,981 in 2024[159]. - The Adjusted EBITDA margin for the nine months ended September 30, 2025, was 7%, down from 18% in the same period of 2024[136]. Revenue Breakdown - The company generates revenue primarily from fees paid by employers to post jobs, with subscription revenue consisting of time-based job posting plans and upsell services[138]. - Subscription revenue decreased by $3.3 million, or 4%, while performance-based revenue increased by $1.2 million, or 5%, for the three months ended September 30, 2025[158]. - Revenue per Paid Employer for the quarter ended September 30, 2025, was $1,717, an increase from $1,693 in the previous quarter[130]. Operating Expenses - The company expects sales and marketing expenses to remain its largest operating expense category as it continues to invest in these efforts over time[148]. - Sales and marketing expenses increased by $5.0 million, or 9%, for the three months ended September 30, 2025, totaling $59,952[163]. - Research and development expenses for the three months ended September 30, 2025, were $30,854, a decrease of $2,851, or 8%, compared to $33,705 in 2024[165]. - General and administrative expenses decreased by $2.6 million, or 14%, for the three months ended September 30, 2025, compared to the same period in 2024[167]. - Total operating expenses for the nine months ended September 30, 2025, were $324,504, an increase from $319,057 in 2024[157]. Cash Flow and Investments - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $411.0 million, with $287.4 million available in unused borrowing capacity under its credit facility[174]. - For the nine months ended September 30, 2025, cash provided by operating activities was $3.2 million, resulting from a net loss of $32.2 million adjusted by non-cash charges of $44.7 million[192]. - The company held $248.5 million in total investments as of September 30, 2025, consisting of money market mutual funds and available-for-sale debt securities[189]. - Net cash provided by (used in) investing activities was $86.9 million for the nine months ended September 30, 2025, compared to $(47.1) million in 2024[190]. - For the nine months ended September 30, 2025, cash used in financing activities was $96.7 million, consisting of $94.1 million for the repurchase of common stock[196]. Share Repurchase and Debt - The company repurchased 17.1 million shares of Class A common stock for $93.9 million during the nine months ended September 30, 2025, with approximately $129.2 million remaining for future repurchases[185][186]. - The credit facility agreement was increased from $250.0 million to $290.0 million in July 2024, with a maturity date of April 30, 2026[176]. - The company had no amounts outstanding under its credit facility and was in compliance with its debt covenants as of September 30, 2025[180]. Tax and Other Expenses - The effective tax rate for the three months ended September 30, 2025, was impacted by non-deductible expenses and research and development tax credits[155]. - Income tax expense increased by $3.3 million, or 183%, for the three months ended September 30, 2025, primarily due to differences in pretax losses and a decrease in research and development tax credits[172]. - Interest expense for the three months ended September 30, 2025, was $7,406, slightly down from $7,475 in 2024[157]. - Total other income (expense), net increased by $2.1 million, or 185%, for the three months ended September 30, 2025, primarily due to a decrease related to income accretion for marketable securities[169]. Market Conditions and Company Strategy - The labor market remains subdued, impacting hiring levels, but the company reported a higher number of Quarterly Paid Employers compared to the same quarter in 2024[137]. - The number of Quarterly Paid Employers increased by 1% from June 30, 2025, to September 30, 2025, contrasting with a 7% decrease in the same period of the previous year[129]. - The company plans to continue aggressive investments in its marketplace to enhance functionality and drive growth, focusing on employer and job seeker engagement[125]. Risk Management - The company is exposed to fluctuations in foreign exchange risk, primarily related to expenses in currencies other than the U.S. Dollar, such as the Canadian Dollar and British Pound[206]. - A hypothetical increase in interest rates of 100 basis points would result in a $0.5 million decrease in the fair value of the investment portfolio as of September 30, 2025[205]. - The company has not experienced material risks due to changes in interest rates, with a hypothetical 10% change in interest rates not impacting the financial statements materially[203]. - The company did not have any relationships with unconsolidated organizations or financial partnerships through September 30, 2025[198]. - There have been no changes to the company's critical accounting policies and estimates compared to the previous year[200]. - The company aims to preserve principal, provide liquidity, and maximize income without significantly increasing risk in its investment activities[205].

Financial Performance - Q3'25 revenue was $115 million, reflecting a 2% sequential growth and a 2% year-over-year decline, marking the second consecutive quarter of sequential growth[13]. - Adjusted EBITDA for Q3'25 was $9.2 million, with an Adjusted EBITDA margin of 8%, compared to $15 million and a margin of 13% in Q3'24[55]. - Revenue for Q3'25 was $114.982 million, a decrease from $117.084 million in Q3'24, while gross profit was $102.467 million compared to $104.702 million in the same period[69]. - The net loss for Q3'25 was $9.822 million, compared to a net loss of $2.570 million in Q3'24[69]. - Adjusted EBITDA for Q3 2025 was $9,249,000, with an Adjusted EBITDA margin of 8%, down from 13% in Q3 2024[71]. - Cash flows from operating activities provided $2,611,000 in Q3 2025, a decrease from $33,243,000 in Q3 2024[70]. - The company experienced a net cash increase of $8,353,000 in Q3 2025, compared to a decrease of $46,074,000 in Q3 2024[70]. Revenue Guidance - Q4'25 revenue guidance is set at $109 million to $115 million, indicating a return to year-over-year growth for the first time since Q3'22[16]. - Q4'25 revenue guidance is $112 million at the midpoint, representing a 1% year-over-year increase, marking the first quarter of year-over-year revenue growth since Q3'22[62]. Employer and Job Seeker Metrics - Quarterly Paid Employers (QPEs) reached 67,000, up 3% year-over-year and up 1% sequentially, representing the first year-over-year increase since Q1'22[22]. - Paid Employers grew sequentially for the third consecutive quarter in Q3'25, with year-over-year growth for the first time since Q1'22[61]. - Engagement on the platform improved, with nearly 24% more SMB jobs receiving five or more applications within the first 24 hours compared to Q3'24[15]. - Job seeker visits from generative AI engines more than doubled in Q3'25, highlighting the increasing use of AI in job searches[28]. Cash and Assets - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $411.0 million, down from $497.6 million year-over-year and $421.2 million quarter-over-quarter, primarily due to stock repurchases[59]. - Total current assets as of September 30, 2025, were $449.780 million, down from $543.673 million as of December 31, 2024[68]. - The company purchased 2.2 million shares for a total of $10.0 million under its share repurchase program in Q3'25[59]. Operating Expenses and Costs - Operating expenses for Q3'25 totaled $107.494 million, slightly down from $107.941 million in Q3'24[69]. - GAAP sales and marketing expenses increased to $59,952,000 in Q3 2025 from $54,928,000 in Q3 2024[73]. - Non-GAAP cost of revenue for Q3 2025 was $11,421,000, slightly higher than $11,231,000 in Q3 2024[72]. - The company reported a GAAP cost of revenue of $12,515,000 for Q3 2025, compared to $12,382,000 in Q3 2024[72]. - Stock-based compensation expense for Q3 2025 was $11,060,000, down from $15,033,000 in Q3 2024[71]. Strategic Focus - The company remains focused on disciplined capital deployment and sustained investment in high-ROI product and marketing opportunities to navigate the current hiring environment[64]. - The company aims for a long-term goal of 30% Adjusted EBITDA margins, demonstrating confidence in future growth despite current market conditions[18]. Business Acquisitions - The company acquired a business for $12,040,000 in Q3 2024, impacting cash flows from investing activities[70]. Other Metrics - Breakroom, a workplace rating platform, published over 10,000 employer profiles in the U.S. as of September 2025, up from 8,000 in the previous quarter[33]. - The company had a total of 94,775 fully diluted shares outstanding as of September 30, 2025[74].

Zip Co Ltd (ZIP) - Zip Co Ltd's share price has increased by 61.6% since the beginning of 2025 [1] - Zip is a fintech company established in 2013, providing a buy-now-pay-later (BNPL) service that is favored by retail consumers [1] - The platform allows customers to make immediate purchases and repay in several interest-free installments [1] - Zip generates revenue through transaction fees from businesses and late fees from customers who miss payments [2] - The current price-to-sales ratio for Zip is 7.12x, higher than its 5-year average of 5.81x, indicating that shares are trading above historical averages [5] - Revenue for Zip has been growing over the last three years, which is a positive indicator despite the higher price-to-sales ratio [5] Scentre Group (SCG) - Scentre Group specializes in shopping centre real estate, operating under the Westfield brand in Australia and New Zealand [3] - The group manages a portfolio of 42 centres valued at over $34 billion, with an occupancy rate exceeding 99% and attracting over half a billion visitors annually [3] - SCG has a trailing dividend yield of approximately 4.18%, compared to its 5-year average of 4.78%, indicating a slight decrease in yield [6]

Core Insights - The current jobs market is experiencing significant challenges, particularly for college graduates, who are facing the worst job market in a decade [1][2] - Economic uncertainty is causing both employers and workers to feel stagnant, leading to a slowdown in hiring and job movement [2][3] - While layoffs remain historically low, the unemployment rate is beginning to rise, with more unemployed individuals than available job openings [5][16] Labor Market Dynamics - Employers are reducing hiring to cut costs due to rising tariffs affecting their profitability, which is contributing to a slower labor market [3][20] - Workers are exhibiting "job hugging," staying in their current positions due to economic uncertainty, which is leading to increased job tenure [6][7] - New hire surveys indicate that job seekers are focusing on long-term job satisfaction, prioritizing factors like flexibility and culture fit over pay [9][12] Gender Pay Gap - The gender pay gap is widening for the second consecutive year, with women increasingly taking lower-paying roles for better work-life balance [11][12] - Women are more likely to prioritize culture and flexibility over compensation, which may contribute to the growing pay gap [10][14] - Stability and job security are perceived to be higher among women focusing on holistic job aspects compared to men who prioritize higher pay [14][15] Future Hiring Trends - Despite current slowdowns, there are indications that businesses may increase hiring in the coming months as they adapt to economic conditions [17][18] - The Federal Reserve's potential interest rate cuts could stimulate business hiring, although high tariffs remain a significant challenge [20][21] - The direction of the labor market will depend on inflation trends and the Fed's response to economic data in the upcoming months [21][22]

Company Overview - ZipRecruiter, Inc. is a significant online employment marketplace connecting job seekers with employers, operating in a competitive landscape alongside tech-driven platforms like Squarespace, Flywire, Clear Secure, TaskUs, and FIGS [1] Financial Performance - ZipRecruiter's Return on Invested Capital (ROIC) is -5.32%, which is below its Weighted Average Cost of Capital (WACC) of 6.16%, indicating insufficient returns to cover capital costs [2][6] - Squarespace, Inc. has a negative ROIC of -0.27% against a WACC of 6.66%, resulting in a ROIC to WACC ratio of -0.04 [3] - Flywire Corporation shows a ROIC of -0.77% with a WACC of 9.88%, leading to a ratio of -0.08 [3] - Clear Secure, Inc. stands out with a ROIC of 100.50% and a WACC of 9.49%, yielding a ROIC to WACC ratio of 10.59, indicating high capital efficiency [4][6] - TaskUs, Inc. has a ROIC of 8.40% against a WACC of 12.56%, resulting in a ratio of 0.67, while FIGS, Inc. has a ROIC of 0.78% and a WACC of 9.74%, with a ratio of 0.08 [5][6]

Group 1: Side Hustle Trends - A significant 51% of Americans engaged in side hustles in 2024, indicating a strong trend towards supplementary income sources [1] - The side hustle landscape is evolving, with traditional lucrative gigs potentially losing profitability due to economic changes and AI advancements [2] Group 2: Rideshare and Food Delivery Industry - The rideshare and food delivery sectors are facing challenges due to rising living costs, leading to decreased consumer spending on services like Uber and DoorDash [3] - The average cost of a new vehicle has reached $49,740, increasing the financial burden on drivers who rely on their vehicles for income [4] - The saturation of the rideshare and food delivery market has intensified competition, resulting in lower demand and earnings for drivers, who currently make between $17 to $24 per hour [5] Group 3: Freelance Opportunities - Freelance social media managers earn between $25 to $44 per hour, while web developers make between $35 to $55, but entry-level positions are struggling to keep pace with rising costs [6] - The average pay for entry-level social media work is $26 per hour, which is impacted by tariffs on imported goods, leading to higher living expenses [7] - Food prices are projected to rise by 3.3% by year-end, exacerbated by tariffs on imports, further diminishing the purchasing power of side hustlers [7]

Core Insights - ZipRecruiter, Inc. operates as an online employment marketplace connecting job seekers with employers in a competitive landscape alongside tech-driven firms like Squarespace, Flywire, Clear Secure, TaskUs, and FIGS [1] Financial Performance - ZipRecruiter's Return on Invested Capital (ROIC) is -5.32%, which is below its Weighted Average Cost of Capital (WACC) of 6.19%, indicating insufficient returns to cover capital costs [2][6] - Squarespace and Flywire report negative ROICs of -0.27% and -0.77% respectively, with WACCs of 6.66% and 9.76%, leading to negative ROIC to WACC ratios of -0.04 and -0.08 [3] - Clear Secure, Inc. demonstrates a high ROIC of 100.50% against a WACC of 9.37%, resulting in a ROIC to WACC ratio of 10.72, indicating efficient capital utilization [4][6] - TaskUs and FIGS have ROICs of 8.40% and 0.78% respectively, with WACCs of 12.44% and 9.66%, leading to ROIC to WACC ratios of 0.68 and 0.08, showing they are closer to generating returns that meet their capital costs [5][6]

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