Financial Data and Key Metrics - Q3 2024 revenue was $117.1 million, down 25% year-over-year [6] - Net loss in Q3 was $2.6 million, compared to net income of $24.1 million in Q3 2023 [25] - Adjusted EBITDA was $15 million, equating to a margin of 13% [6] - Cash, cash equivalents, and marketable securities totaled $498 million as of September 30, 2024 [26] - Q4 2024 revenue guidance is $107 million at the midpoint, representing a 21% decline year-over-year [27] Business Line Performance - Quarterly paid employers were 65,000, a 27% decrease year-over-year and a 7% decrease sequentially [23] - Revenue per paid employer was $1,795, up 3% year-over-year and 2% sequentially [24] - ZipIntro, a new hiring product, saw over 90% of job seekers likely to reuse it and employers received over three times more quality applications per job [14][15] - The next-generation resume database saw a 20% increase in average weekly candidate profile unlocks in the first week of launch [16] Market Performance - Total ZipRecruiter web traffic in the US grew by 21% year-over-year, with organic job seeker traffic growth of 23% [17] - Job seeker engagement increased, with clicks from email notifications rising by 100% and applications from those emails increasing by 120% [21] Company Strategy and Industry Competition - The company is focused on increasing the number of employers and revenue per paid employer, growing job seeker traffic, and improving matching technology [13][17][20] - Investments in brand, AI-driven career advisor (Phil), and matching technology have contributed to job seeker trust and loyalty [9] - The company believes that employer revenue will follow job seeker market share shifts [9] Management Commentary on Operating Environment and Future Outlook - The labor market downturn has been prolonged, with seasonally adjusted hires declining year-over-year every month since August 2022 [10] - The "Great Stay" phenomenon, where employees are leaving jobs at the lowest rate since 2015, is further driving down hiring levels [11] - The company remains confident in the long-term health of the US labor market and sees the end of the "Great Stay" as a future tailwind [11] Other Important Information - The company launched Breakroom in the UK and is working on its US launch, expected in 2025 [48] - New products like ZipIntro and the next-generation resume database are in the value maximization phase and are expected to contribute revenue in 2025 [49][50] Q&A Session Summary Question: Vertical performance and early-cycle verticals - Healthcare remained robust, while transportation, storage, travel, and leisure were weaker [31][32] - Finance and technology, early-cycle verticals, were in the middle of the performance spectrum [33] Question: Enterprise customer performance - Enterprise customers were more robust than SMBs, with performance marketing revenue ticking up to 22% [35] Question: The "Great Stay" and its potential end - The quit rate has fallen by more than one-third since January 2022, driven by factors like above-market salaries, perks, and low mortgage rates [39][40] - The company expects hiring to resume as the economy returns to a steady state [41] Question: Q4 guidance and seasonal slowdown - Q4 guidance accounts for both seasonal decline and continued labor market softness [45] Question: Breakroom launch timeline and monetization - Breakroom is performing well in the UK, with a US launch expected in 2025 [48] - New products like ZipIntro and the resume database are in the value maximization phase and will contribute revenue in 2025 [49][50] Question: Balancing investments and margin profile - The company maintains a low to mid-teens margin profile by responding dynamically to the labor market environment [54] Question: Job seeker traffic growth and its impact - Job seeker growth improves new business acquisition, matching technology, and customer retention [56] - The company has seen steady increases in job seeker traffic over the past two years, outperforming competitors [58] Question: Employer return trends and marketing impact - Brand awareness above 80% drives organic employer returns, especially among SMBs with intermittent hiring needs [59] - The company expects marketing and sales expenses to decrease over time as the business matures [59]

Core Viewpoint - ZipRecruiter, Inc. reported a quarterly loss of $0.03 per share, outperforming the Zacks Consensus Estimate of a loss of $0.10, marking a 70% earnings surprise [1] - The company generated revenues of $117.08 million for the quarter ended September 2024, exceeding the Zacks Consensus Estimate by 4.27%, but down from $155.63 million year-over-year [2] Financial Performance - Over the last four quarters, ZipRecruiter has surpassed consensus EPS estimates two times and topped revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is -$0.12 on revenues of $111.07 million, and for the current fiscal year, it is -$0.21 on revenues of $469.29 million [7] Stock Performance - ZipRecruiter shares have declined approximately 32.7% since the beginning of the year, contrasting with the S&P 500's gain of 21.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Business - Services industry, to which ZipRecruiter belongs, is currently in the top 23% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact ZipRecruiter's stock performance [5]

CORPORATE PRESENTATION November 2024 1 Proprietary and Confidential. © 2024 ZipRecruiter, Inc. All Rights Reserved. LEGAL NOTICE This presentation has been prepared by ZipRecruiter, Inc. ("we," "us," "our," the "Company," or "ZipRecruiter"). The information set forth herein does not purport to be complete or to contain all relevant information. Statements contained herein are made as of November 6, 2024 unless stated otherwise. This presentation contains "forward-looking" statements within the meaning of th ...

Financial Performance - For the three months ended September 30, 2024, the company's revenue was $117.1 million, a 25% decrease compared to $155.6 million for the same period in 2023[129][143]. - The company reported a net loss of $2.6 million for the three months ended September 30, 2024, compared to a net income of $24.1 million for the same period in 2023[129][142]. - Adjusted EBITDA for the three months ended September 30, 2024, was $15.0 million, down from $54.4 million in the same period of 2023, resulting in an Adjusted EBITDA margin of 13%[129][142]. - Total revenue for the three months ended September 30, 2024, was $117,084, a decrease of $38,546 or 25% compared to $155,630 for the same period in 2023[169]. - Total revenue for the nine months ended September 30, 2024, was $362,981, a decrease of $146,819 or 29% compared to $509,800 for the same period in 2023[170]. - Subscription revenue decreased by $31,300 or 26% for the three months ended September 30, 2024, while performance-based revenue decreased by $7,200 or 22%[169]. - Subscription revenue for the nine months ended September 30, 2024, decreased by $118,500 or 29% compared to the same period in 2023[170]. - The company experienced a net loss of $2.1 million for the nine months ended September 30, 2024, compared to a net income of $43.5 million in the same period of 2023[205][206]. Revenue and Cost Analysis - The cost of revenue is expected to correlate directly with revenue changes, influenced by factors such as payment processing fees and personnel-related costs[152]. - Cost of revenue for the three months ended September 30, 2024, was $12,382, a decrease of $2,151 or 15% compared to $14,533 for the same period in 2023[172]. - Cost of revenue decreased by $12.2 million, or 24%, for the nine months ended September 30, 2024, compared to the same period in 2023, with a gross margin of 89%[173]. - Gross profit for the three months ended September 30, 2024, was $104,702, compared to $141,097 for the same period in 2023[165]. - Gross margin was 89% for the three months ended September 30, 2024, down from 91% in the same period in 2023[172]. Operating Expenses - Total operating expenses for the three months ended September 30, 2024, were $107,941, compared to $108,431 for the same period in 2023[165]. - Research and development expenses increased to $33,705 for the three months ended September 30, 2024, compared to $32,136 for the same period in 2023[165]. - Sales and marketing expenses decreased by $55.1 million, or 25%, for the nine months ended September 30, 2024, primarily due to a $32.3 million decrease in marketing and advertising costs[175]. - General and administrative expenses decreased by $12.7 million, or 19%, for the nine months ended September 30, 2024, primarily due to a $6.6 million decrease in stock-based compensation[180]. - Research and development expenses increased by $1.6 million, or 5%, for the three months ended September 30, 2024, driven by a $1.5 million increase in personnel-related costs due to the acquisition of Breakroom[177]. Cash Flow and Investments - As of September 30, 2024, the company had cash, cash equivalents, and marketable securities totaling $497.6 million, with $287.6 million available in unused borrowing capacity[187]. - For the nine months ended September 30, 2024, cash provided by operating activities was $33.2 million, down from $68.8 million in the same period of 2023[205][206]. - The company reported a net cash used in investing activities of $47.1 million for the nine months ended September 30, 2024, compared to a net cash provided of $89.4 million in the same period of 2023[207][209]. - Cash used in financing activities for the nine months ended September 30, 2024, was $43.6 million, significantly lower than $142.2 million in the same period of 2023[210][211]. - The company invested $480.1 million in marketable securities during the nine months ended September 30, 2024[207]. Future Outlook and Strategic Initiatives - The company plans to continue aggressive investments in its marketplace to enhance functionality and drive growth[128]. - The company aims to improve its datasets and machine learning capabilities to enhance employer and job seeker engagement[128]. - The company expects to continue investing in research and development activities, with expenses varying as a percentage of total revenue for the foreseeable future[178]. - The company has authorized a share repurchase program of up to $550.0 million, with $25.8 million remaining for future repurchases as of September 30, 2024[199][200]. Market Conditions and Risks - The decline in hiring levels is attributed to high interest rates and reduced churn among employees, leading to a moderation in employer hiring plans[134]. - A hypothetical increase in interest rates of 100 basis points would result in a $0.6 million decrease in the fair value of the company's investment portfolio[222]. - The company is exposed to foreign currency risk primarily related to expenses in currencies other than the U.S. Dollar, with a hypothetical 10% change in exchange rates not expected to have a material impact on financial statements[223][224]. Taxation - The effective tax rate for the nine months ended September 30, 2024, was not meaningful due to a low level of loss before income taxes recorded for the period[184]. - Income tax expense decreased by $13.4 million, or 87%, for the nine months ended September 30, 2024, primarily due to a decrease in income before income taxes[186].

Share Repurchase Program - ZipRecruiter announced a share repurchase program authorizing up to an additional $100.0 million of its Class A and Class B common stock, in addition to the previous authorization of $550.0 million[7]. - As of September 30, 2024, approximately $25.8 million was available for future repurchases under the existing share repurchase program[7]. - The share repurchase program has no expiration date and will continue until modified or terminated by the Board[8]. - The share repurchase program allows for various methods of repurchase, including open market transactions and block purchases[8]. - The Company’s ability to execute the share repurchase program is influenced by market conditions and other investment opportunities[11]. - Forward-looking statements regarding the share repurchase program are subject to risks and uncertainties that may affect actual results[11]. Financial Results Announcement - The Company plans to hold a conference call on November 6, 2024, to announce its financial results for the quarter ended September 30, 2024[3]. - The Company has not yet disclosed specific financial results for the quarter ended September 30, 2024, but will provide updates during the upcoming earnings call[3]. Non-GAAP Financial Information - ZipRecruiter is referencing non-GAAP financial information in its shareholder communications, with reconciliations provided in the Shareholder Letter[5]. - The Company encourages investors to review material information disclosed through various channels, including its website and social media[6].

Core Viewpoint - ZipRecruiter (NYSE: ZIP) is set to report its Q3 financial results on November 6th after market close, prompting a review of the company's expected performance. Company Overview - The company is focused on providing job recruitment services and is preparing for its upcoming earnings report, which is anticipated to provide insights into its financial health and operational performance [1]. Investment Perspective - The analysis suggests a long-term investment horizon, typically ranging from 5 to 10 years, with a preference for a diversified portfolio that includes growth, value, and dividend-paying stocks, although there is a noted inclination towards value stocks [1].

Investors might want to bet on ZipRecruiter, Inc. (ZIP) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Sinc ...

Kitinut/iStock via Getty Images Investment thesis ZipRecruiter (NYSE:ZIP) is an online job marketplace that uses AI to match jobseekers and employers. Slower hiring and reduced quit rates in the US labor market have posed significant headwinds for the company, leading to a continued decline in revenues since the end of 2022. Until now, the company has managed to maintain solid profitability by paring back its marketing spend as it waits for the market to improve. However, recent guidance from management ind ...

ZipRecruiter, Inc. (ZIP) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 187.50%. A quarter ago, it was expected that this company would post a loss of $0.07 per share when it actually produced a loss of $0.07, delivering no surprise. Over the last four quarters, the compan ...

ZipRecruiter, Inc. (NYSE:ZIP) Q1 2024 Earnings Conference Call May 9, 2024 5:00 PM ET Company Participants Drew Haroldson - Investor Relations Ian Siegel - Co-Founder and CEO David Travers - President Tim Yarbrough - Chief Financial Officer Conference Call Participants Trevor Young - Barclays Ralph Schackart - William Blair Doug Anmuth - JPMorgan Josh Beck - Raymond James Stan Velikov - Wells Fargo Justin Patterson - KeyBanc Capital Markets Operator Thank you for standing by. My name is Pam, and I will be y ...