Core Viewpoint - Giftify, Inc. has launched a Buy Now, Pay Later (BNPL) payment option for CardCash.com through a partnership with Zip Co, enhancing customer accessibility and flexibility in gift card purchases [1][2][3] Group 1: Company Overview - Giftify, Inc. operates CardCash.com and Restaurant.com, focusing on the incentives and rewards industry [1][9] - CardCash.com is a leading secondary gift card exchange platform, allowing consumers to buy and sell gift cards [10] Group 2: BNPL Integration - The BNPL option allows customers to split gift card purchases into easy payments at checkout, making it more accessible for shoppers [1][4] - This payment model is particularly appealing to Millennials and Gen Z consumers, who prefer alternatives to traditional credit [2] - The integration aims to help customers manage cash flow while maximizing savings during financial constraints [2][3] Group 3: Strategic Goals - The partnership with Zip aligns with Giftify's strategic vision to expand payment options and enhance customer experience [3] - By offering BNPL, the company aims to strengthen its position in the gift card marketplace and better serve its customers [3][5] Group 4: Customer Benefits - CardCash users can save up to 35% on everyday brands, and the new payment option further enhances the value proposition [5] - The BNPL integration is designed to empower customers to access discounts while enjoying the flexibility to pay over time [4][5]

Core Insights - ZipRecruiter has been recognized as the best AI-powered hiring platform for 2025 due to its fast time-to-hire, smart automation, and seamless integration with existing hiring systems [1][2][10] Group 1: Performance and Features - ZipRecruiter provides a measurable edge in the competitive hiring landscape through technology-driven efficiency and employer-first features [2] - Four out of five employers receive a quality candidate within one day of posting a job, highlighting its rapid hiring results [3] - The platform's Smart Matching Technology automatically distributes job postings to over 100 job boards, significantly reducing time-to-hire [4][16] Group 2: Enterprise Solutions - ZipRecruiter offers a robust enterprise hiring platform that includes one-click job distribution, smart candidate scoring, and automated outreach, making it suitable for large-scale talent acquisition [7][8] - Key features for enterprise clients include advanced hiring analytics, customizable workflows, and integration with over 40 ATS platforms [13][16] Group 3: Niche and Private Job Boards - ZipRecruiter supports niche communities through JobBoard.io, allowing organizations to create branded hiring platforms without starting from scratch [9][14] - This solution combines a scalable job board platform with AI-powered infrastructure, providing real hiring value to members [9] Group 4: Market Positioning - In a tight labor market, ZipRecruiter addresses the urgent need for smarter sourcing and better targeting, making it a go-to platform for businesses [10][11] - The platform simplifies the complexity of modern hiring, directly impacting business outcomes through quality hires [11][12]

Industry Overview - The business services industry is experiencing sustained expansion, with economic activity in the services sector growing for the 10th consecutive month as of April, indicated by a robust Services PMI remaining above the 50% threshold for the 56th time in 59 months, reflecting a post-pandemic recovery [1] - The industry is mature, with revenues, income, and cash flows now exceeding pre-pandemic levels, and it ranks in the top 19% of the Zacks Sector Rank, suggesting an expected outperformance over the next three to six months [3] Technological Impact - The rapid advancement and adoption of artificial intelligence and automation technologies are transforming the delivery of business services, promising enhanced efficiency and cost reduction while also presenting challenges such as workforce displacement and the need for continuous upskilling [2] Stock Recommendations - Five business services stocks with favorable Zacks Rank for investment are recommended: Cintas Corp. (CTAS), Thomson Reuters Corp. (TRI), Healthcare Services Group Inc. (HCSG), ZipRecruiter Inc. (ZIP), and Bright Horizons Family Solutions Inc. (BFAM), all currently carrying a Zacks Rank 2 (Buy) [4] Company Highlights Cintas Corp. (CTAS) - Cintas is well-positioned to benefit from strong momentum across its segments, with improved demand in its Uniform Rental and Facility Services segment and First Aid and Safety Services segment [7] - Expected revenue and earnings growth rates for CTAS are 7% and 10.8%, respectively, for the next year, with a 1.7% improvement in the Zacks Consensus Estimate for next-year earnings over the past 60 days [8] Thomson Reuters Corp. (TRI) - TRI operates as a content and technology company across various regions and segments, providing value-added information and technology in fields such as law, tax, accounting, and healthcare [9][10] - Expected revenue and earnings growth rates for TRI are 3.1% and 4.2%, respectively, for the current year, with a 1.3% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [10] Healthcare Services Group Inc. (HCSG) - HCSG provides management and operational services to healthcare facilities, making it a preferred choice for clients in the sector [11][12] - Expected revenue and earnings growth rates for HCSG are 5.1% and 58.5%, respectively, for the current year, with a 5% improvement in the Zacks Consensus Estimate for current-year earnings over the past seven days [12] ZipRecruiter Inc. (ZIP) - ZIP operates an online marketplace connecting job seekers and employers, offering various recruitment and hiring services [13] - Expected revenue and earnings growth rates for ZIP are 9% and 13%, respectively, for the next year, with a 3.8% improvement in the Zacks Consensus Estimate for next-year earnings over the past 30 days [14] Bright Horizons Family Solutions Inc. (BFAM) - BFAM provides employer-sponsored child care and early education solutions, managing child care centers for various organizations [15][16] - Expected revenue and earnings growth rates for BFAM are 7.6% and 18.4%, respectively, for the current year, with a significant 24.6% improvement in the Zacks Consensus Estimate for current-year earnings over the past 30 days [17]

Core Viewpoint - ZipRecruiter, Inc. (ZIP) has seen a 5.3% increase in share price over the past four weeks, closing at $5.59, with analysts suggesting a potential upside of 43.1% based on a mean price target of $8 [1] Price Targets and Analyst Estimates - The mean estimate consists of five short-term price targets with a standard deviation of $1.87, indicating variability among analysts; the lowest estimate is $6 (7.3% increase), while the highest is $10 (78.9% increase) [2] - A low standard deviation suggests a strong agreement among analysts regarding the stock's price movement direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Optimism - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases; the Zacks Consensus Estimate for the current year has risen by 1.1% over the past month [4][11][12] - ZipRecruiter holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [13]

Financial Highlights - ZipRecruiter's Q1 2025 revenue was $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 and Growth - ZipRecruiter operates in a large Total Addressable Market (TAM) exceeding $300 billion [15, 64] - The company has amassed over 4 million employers and 170 million job seekers since its founding in 2010 [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] Business Model and 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, 24]

Core Viewpoint - ZipRecruiter, Inc. reported a quarterly loss of $0.13 per share, which was better than the Zacks Consensus Estimate of a loss of $0.17, indicating a positive earnings surprise of 23.53% [1][2] Financial Performance - The company posted revenues of $110.07 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.75%, although this represents a decline from year-ago revenues of $122.24 million [2] - Over the last four quarters, ZipRecruiter has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - ZipRecruiter shares have declined approximately 26.5% since the beginning of the year, contrasting with the S&P 500's decline of 4.3% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at -$0.14 for the coming quarter and -$0.60 for the current fiscal year, alongside revenues of $110.34 million and $437.54 million respectively [7] - The estimate revisions trend for ZipRecruiter is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The Business - Services industry, to which ZipRecruiter belongs, is currently ranked in the top 21% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Another company in the same industry, Everi Holdings, is expected to report quarterly earnings of $0.11 per share, reflecting a year-over-year change of +120% [9]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $110 million, a 1% sequential decline and a 10% year-over-year decrease, which is consistent with typical seasonal patterns as employers resume hiring after the holiday slowdown [7][16] - Quarterly paid employers increased by 10% sequentially, marking the highest Q4 to Q1 growth since 2021, but decreased by 11% year-over-year [16] - Revenue per paid employer was $17.34, up 2% year-over-year but down 10% sequentially [17] - Net loss for Q1 was $12.8 million, compared to a net loss of $6.5 million in Q1 2024 [17] - Cash, cash equivalents, and marketable securities totaled $468 million as of March 31, 2025 [18] Business Line Data and Key Metrics Changes - The company achieved Workday certified integration status, enhancing its applicant tracking system integrations, which now total 180 [10] - The new features released in Q1 for the resume database led to a 9% increase in the resume unlock rate among enterprise employers [12] - Employer adoption of the ZipIntro feature grew, with scheduled sessions increasing by 16% quarter over quarter in Q1 [13] Market Data and Key Metrics Changes - Despite increased macroeconomic uncertainty, employer hiring activity has remained steady, with no pronounced pullback observed [8][23] - The company anticipates Q2 revenue guidance of $111 million, representing a 1% increase quarter over quarter [9][18] Company Strategy and Development Direction - The company is focused on transforming the recruitment industry through technology-driven solutions and enhancing engagement between job seekers and employers [6] - Strategic investments are being made in product features and integrations to improve the hiring experience [10][12] - The company aims to maintain a long-term focus while being prepared for various macroeconomic scenarios [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding employer activity and the potential for year-over-year revenue growth in Q4 2025 [9][19] - The company is monitoring hiring demand closely and is prepared to adjust investments based on market conditions [23][31] Other Important Information - The company continues to invest in long-term strategic initiatives while maintaining financial flexibility [9][20] - Adjusted EBITDA for Q1 was $5.9 million, equating to a margin of 5% [17] Q&A Session Summary Question: Is the wait-and-see attitude widespread across geographies and verticals? - Management indicated that while macro uncertainty is increasing, internal data shows that employers have not yet pulled back on hiring [22][23] Question: What signs are SMBs and enterprises looking for to become more optimistic about hiring? - Customers are looking for certainty in the macro environment to make hiring and investment decisions [26] Question: How will the company manage investment trajectory amid uncertainty? - The company will let data drive decisions and maintain flexibility in sales and marketing investments [30][31] Question: Are there any signs of increased hesitancy in employer behavior? - Employers are taking slightly longer to review candidates but are still moving quickly when they decide to hire [40][42] Question: Are there new opportunities for marketing investments? - The company has seen some competitors pull back in marketing channels, presenting potential opportunities for investment [43]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $110 million, a 1% sequential decline and a 10% year-over-year decline, which is consistent with typical seasonal patterns as employers resume hiring after the holiday slowdown [6][14] - Quarterly paid employers increased by 10% sequentially, marking the highest Q4 to Q1 growth since 2021, but decreased by 11% year-over-year [6][14] - Revenue per paid employer was $17.34, up 2% year-over-year but down 10% sequentially, reflecting a shift from subscription to performance revenue [15] Business Line Data and Key Metrics Changes - The company achieved Workday certified integration status, enhancing its applicant tracking system integrations, which now total 180 [9][10] - New features released in Q1 focused on improving collaboration among employers, resulting in a 9% increase in resume unlock rates among enterprise employers [11] - The ZipIntro feature saw a 16% quarter-over-quarter growth in scheduled sessions, indicating increased employer engagement [12] Market Data and Key Metrics Changes - Despite macroeconomic uncertainty, employer hiring activity remains steady, with no significant pullback observed [22][23] - The company is prepared for a wide range of scenarios, allowing for rapid adjustments in investment based on hiring demand [31] Company Strategy and Development Direction - The company aims to transform the recruitment industry through technology-driven solutions, focusing on enhancing engagement between job seekers and employers [5] - Long-term strategic initiatives will continue to be funded despite current revenue declines, with expectations of capturing market share in the recruitment total addressable market (TAM) [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2 2025, projecting revenue guidance of $111 million, a 1% increase quarter-over-quarter [7][17] - The company anticipates achieving year-over-year revenue growth in Q4 2025, contingent on maintaining current trends [18] Other Important Information - The net loss for Q1 2025 was $12.8 million, compared to a net loss of $6.5 million in Q1 2024 [15][16] - Cash, cash equivalents, and marketable securities totaled $468 million as of March 31, 2025 [17] Q&A Session Summary Question: Is the wait-and-see attitude widespread across geographies and verticals? - Management indicated that while macro uncertainty is increasing, internal data shows employers have not yet pulled back on hiring [21][22] Question: What signs are SMBs and enterprises looking for to become more optimistic about hiring? - Employers are looking for certainty in the macro environment to make hiring and investment decisions [26][27] Question: How will the company manage investment trajectory amid uncertainty? - The company will let data drive decisions, maintaining flexibility to adjust sales and marketing investments based on hiring demand [30][31] Question: Are there any signs of increased hesitancy among employers? - Employers are taking slightly longer to review candidates but are still moving quickly when they decide to hire [39][41] Question: Are there new opportunities for marketing investments? - The company has seen some competitors pull back in marketing channels, presenting potential opportunities for attractive investments [42]

Financial Performance - For the three months ended March 31, 2025, the company's revenue was $110.1 million, representing a 10% decrease compared to $122.2 million for the same period in 2024[104][115]. - The net loss for the quarter ended March 31, 2025, was $12.8 million, compared to a net loss of $6.5 million in the same quarter of 2024, resulting in a net loss margin of 12%[104][115]. - Adjusted EBITDA for the quarter ended March 31, 2025, was $5.9 million, with an Adjusted EBITDA margin of 5%, down from $20.8 million and 17% in the same quarter of 2024[104][106][115]. - Total revenue for the three months ended March 31, 2025, was $110.1 million, a decrease of $12.2 million or 10% compared to $122.2 million for the same period in 2024[136]. - Subscription revenue decreased by $11.2 million or 12%, while performance-based revenue decreased by $1.0 million or 4% for the three months ended March 31, 2025[136]. - Net loss for the three months ended March 31, 2025, was $12.8 million, compared to a net loss of $6.5 million for the same period in 2024[135]. - The company reported a net loss of $12.8 million for the three months ended March 31, 2025, compared to a net loss of $6.5 million for the same period in 2024[161][162]. Operational Metrics - The number of Quarterly Paid Employers increased by 10% from the previous quarter, with 63,466 Paid Employers in Q1 2025 compared to 57,833 in Q4 2024[105][108]. - Revenue per Paid Employer decreased to $1,734 in Q1 2025 from $1,920 in Q4 2024, indicating a decline in revenue generation per employer despite improvements in product offerings[105][110]. - The company experienced a moderation in hiring plans among employers due to economic uncertainty, impacting overall hiring levels compared to the previous year[115]. Expenses and Cost Management - Cost of revenue decreased by $1.7 million or 13% to $11.7 million, maintaining a gross margin of 89% for both periods[137]. - Sales and marketing expenses increased by $3.8 million or 7% to $58.5 million, representing 53% of total revenue[138]. - Research and development expenses decreased by $2.8 million or 8% to $33.3 million, remaining at 30% of total revenue[139]. - General and administrative expenses decreased by $0.7 million or 4% to $18.3 million, representing 17% of total revenue[140]. - Sales and marketing expenses are projected to remain the largest operating expense category as the company continues to expand its efforts in this area[127]. - Continued investments in research and development are deemed crucial for achieving strategic objectives, with expenses expected to vary as a percentage of total revenue[129]. Cash Flow and Investments - Cash used in operating activities for the three months ended March 31, 2025, was $9.9 million, resulting from a net loss of $12.8 million[161]. - Cash provided by investing activities for the three months ended March 31, 2025, was $39.1 million, primarily from $187.6 million received from paydowns and maturities of marketable securities[163]. - Cash used in financing activities for the three months ended March 31, 2025, was $26.5 million, mainly for the repurchase of common stock[166]. - The company experienced a net cash increase of $2.6 million for the three months ended March 31, 2025, compared to a decrease of $543,000 in the same period of 2024[159]. - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $468.2 million, with $286.6 million available in unused borrowing capacity under its credit facility[144]. - Total investments held by the company as of March 31, 2025, amounted to $302.5 million, consisting of money market mutual funds and available-for-sale debt securities[157]. Share Repurchase and Capital Management - The company has authorized a share repurchase program of up to $650.0 million, with $95.7 million remaining available for future repurchases as of March 31, 2025[154][155]. - For the three months ended March 31, 2025, the company repurchased 4.6 million shares for $27.4 million, including $14.5 million under a Rule 10b5-1 plan[154]. Other Financial Considerations - Total other income (expense), net improved by $440,000 or 18% to $(2.0) million for the three months ended March 31, 2025[141]. - Income tax expense decreased by $4.0 million or 128% to $(875,000) for the three months ended March 31, 2025, primarily due to a decrease in income before income taxes[143]. - A hypothetical increase in interest rates of 100 basis points would result in a $0.5 million decrease in the fair value of the company's investment portfolio[175]. - 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[176].

Exhibit 99.2 ZipRecruiter Shareholder Letter Features like ZipIntro have also helped speed things up. Laura says, "My team calls ZipIntro a game changer. It's made hiring faster and easier, especially for our most competitive roles." That efficiency has eliminated a significant amount of the back-and-forth and helped the team move fast when it matters most. She adds, "ZipIntro handles all the scheduling for my recruiters. They set up one session and meet a multitude of great candidates one after another." Q ...