Financial Data and Key Metrics Changes - Revenue for Q1 2022 reached $227 million, representing an 81% increase year-over-year and a 3% increase sequentially from Q4 2021 [7][25] - GAAP net income was $8 million in Q1 2022, down from $14 million in the same quarter of the previous year [27] - Adjusted EBITDA was $37 million, compared to $20 million in Q1 2021, with adjusted EBITDA margins remaining at 16% [27][32] - Cash and cash equivalents increased to $745 million as of March 31, 2022, compared to $135 million in Q1 2021 [28] Business Line Data and Key Metrics Changes - Total paid employers increased to 150,000 in Q1 2022, up from 147,000 in the previous quarter, marking a 31% year-over-year increase [15][26] - Revenue per paid employer reached an all-time high of $1,513 in Q1 2022, up 38% year-over-year [16][26] Market Data and Key Metrics Changes - The U.S. labor market added over 400,000 new jobs for 11 consecutive months, with a record low of 0.5 unemployed persons for every job opening [8][10] - High turnover rates were noted, with over four million workers quitting their jobs each month for the past nine months [10] Company Strategy and Development Direction - The company is focused on three strategic pillars: increasing the number of employers, increasing the number of job seekers, and enhancing matching technology [14][22] - Investments in technology and brand are expected to continue driving growth, with a focus on AI-driven matching through the personal recruiter, Phil [19][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued strength of the labor market despite concerns over rising labor costs, inflation, and global tensions [11][30] - The company raised its full-year revenue guidance for 2022 to $915 million, reflecting a 23% growth compared to 2021 [29][30] Other Important Information - The company has launched a Job Seeker confidence survey to track job seeker sentiment amid changing economic conditions [18] - A private offering of senior notes due in 2030 totaling $550 million at a 5% coupon rate contributed to the increase in cash reserves [28] Q&A Session Summary Question: Stronger than seasonal growth in new paid employers - Management attributed the robust demand from employers to increased investments in sales and marketing, resulting in a 11% increase in the sales force [35] Question: Long-term expectations for revenue per paid employer - Management sees significant growth potential for average revenue per paid employer, comparing it favorably against offline alternatives that charge significantly more [36][37] Question: Impact of the Russia-Ukraine conflict on hiring - Management reported no significant changes in hiring trends due to the conflict, noting a steady hiring environment [39] Question: Drivers of job market normalization - Management acknowledged various macroeconomic factors that could impact the labor market, including inflation and rising labor costs, but emphasized the ongoing tightness in the labor market [44][50] Question: Progress on AI investments - Management highlighted the ongoing integration of AI into their platform, particularly through the personal recruiter, Phil, which has shown positive engagement results [54][57] Question: Sales and marketing efforts - Management confirmed continued investments in sales and marketing, measuring returns through various metrics to ensure effectiveness [60][62] Question: Reasons behind the "Great Resignation" - Management noted that job seekers are increasingly seeking flexible work arrangements, with a significant portion prioritizing hybrid or fully remote work options [68][69]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-40406 ZIPRECRUITER, INC. (Exact name of registrant as specified in its charter) Delaware 27-2976158 (State or other ...

ZipRecruiter, Inc. (NYSE:ZIP) Q4 2021 Earnings Conference Call March 1, 2022 5:00 PM ET Company Participants Amy Garefis - Chief Accounting Officer Ian Siegel - Co-Founder and CEO David Travers - President Tim Yarbrough - CFO Conference Call Participants Mark Mahaney - Evercore ISI Eric Sheridan - Goldman Sachs Douglas Anmuth - JPMorgan Aaron Kessler - Raymond James Ralph Schackart - William Blair Trevor Young - Barclays Operator Good afternoon. My name is Emma, and I will be your conference operator to ...

Financial Performance - For the three months ended September 30, 2021, revenue was $212.7 million, a 107% increase compared to $102.9 million for the same period in 2020[133][144]. - Net income for the three months ended September 30, 2021, was $22.1 million, compared to $23.1 million for the same period in 2020[133][142]. - Adjusted EBITDA for the three months ended September 30, 2021, was $42.5 million, with an Adjusted EBITDA margin of 20%, compared to $26.7 million and 26% for the same period in 2020[133][143]. - For the nine months ended September 30, 2021, revenue totaled $521.0 million, compared to $303.8 million for the same period in 2020[133][142]. - Adjusted EBITDA for the nine months ended September 30, 2021, was $60.7 million, compared to a loss of $17.4 million for the same period in 2020[133][142]. - Total revenue for the three months ended September 30, 2021, was $212.7 million, a 107% increase from $102.9 million in the same period of 2020[168]. Employer Metrics - The number of Quarterly Paid Employers increased by 89% year-over-year to 169,535 for the quarter ended September 30, 2021[136][144]. - Revenue per Paid Employer increased by 16% from the previous quarter, reaching $1,254 despite a flat count of Quarterly Paid Employers[138]. Revenue Breakdown - Subscription revenue increased by $87.7 million, or 103%, for the three months ended September 30, 2021, driven by strong sales and marketing efforts[171]. - Performance-based revenue increased by $22.1 million, or 123%, for the three months ended September 30, 2021, due to onboarding new customers[171]. Operating Expenses - Sales and marketing expenses grew by $70.5 million, or 169%, for the three months ended September 30, 2021, primarily due to increased marketing and advertising costs[175]. - Total operating expenses for the three months ended September 30, 2021, were $172.4 million, compared to $66.8 million in the same period of 2020[168]. - The company expects sales and marketing expenses to remain its largest operating expense category for the foreseeable future[157]. - Research and development expenses are expected to increase in absolute dollars as the company invests in improvements and expansions of its marketplace[160]. - General and administrative expenses are anticipated to rise in absolute dollars due to costs associated with operating as a public company[162]. Expense Increases - Research and development expenses increased by $10.3 million, or 61%, for the three months ended September 30, 2021, totaling $27.2 million, compared to $16.9 million in the same period of 2020[178]. - For the nine months ended September 30, 2021, research and development expenses rose by $29.7 million, or 57%, reaching $82.1 million, compared to $52.4 million in the prior year[179]. - General and administrative expenses surged by $24.9 million, or 302%, for the three months ended September 30, 2021, amounting to $33.1 million, compared to $8.2 million in the same period of 2020[180]. - For the nine months ended September 30, 2021, general and administrative expenses increased by $93.6 million, or 317%, totaling $123.1 million, compared to $29.5 million in the prior year[181]. Cash Flow and Financial Position - Cash provided by operating activities for the nine months ended September 30, 2021, was $89.8 million, compared to $56.3 million in the same period of 2020[197]. - As of September 30, 2021, the company had cash totaling $204.9 million and $244.2 million available in unused borrowing capacity under its current revolving credit facility[186]. - The company recorded a net loss of $17.4 million for the nine months ended September 30, 2021, adjusted by non-cash charges of $81.9 million[197]. - Cash used in investing activities for the nine months ended September 30, 2021, was $11.2 million, primarily due to capital expenditures and capitalized software development costs[199]. - The company had no amounts outstanding under its current revolving credit facility as of September 30, 2021[193]. Tax and Accounting - The effective tax rate for the three months ended September 30, 2021, was (25)%, influenced by excess tax benefits from stock options[167]. - The effective tax rate for the nine months ended September 30, 2021, was 50%, primarily due to excess tax benefits related to stock options and RSUs[185]. - Management's financial analysis is based on condensed consolidated financial statements prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ from actual results[204]. - There have been no changes to critical accounting policies and estimates compared to those discussed in the Prospectus, except for certain stock-based compensation valuations[205]. - The company qualifies as an emerging growth company under the JOBS Act, allowing it to use an extended transition period for new accounting standards[206]. Risk Factors - The company is exposed to interest rate risk due to its Current Revolving Line, but a hypothetical 10% change in interest rates would not materially impact financial statements[210]. - Foreign currency exchange risk is present, particularly with expenses in currencies like the Canadian Dollar and British Pound, but a hypothetical 10% change would not materially impact financial statements[211].

Financial Data and Key Metrics Changes - ZipRecruiter reported a record revenue of $212.7 million for Q3 2021, representing a 107% year-over-year growth and a 16% increase over Q2 2021 [5][12] - GAAP net income for Q3 2021 was $22.1 million, slightly down from $23.1 million in the prior year [13] - Adjusted EBITDA was $42.5 million with a 20% margin, compared to $26.7 million and a 26% margin in the prior year [13][16] - The company raised its revenue guidance for Q4 2021 to $206 million, translating to 80% year-over-year growth, and increased full-year guidance to $727 million, up from $658 million [15][16] Business Line Data and Key Metrics Changes - Quarterly paid employers remained flat in Q3 2021 after a record growth of 48% in Q2 2021, while revenue per paid employer increased by 16% sequentially [12][13] - The company focused on enhancing job seeker engagement through improved technology and expanded marketing efforts [9][10] Market Data and Key Metrics Changes - There are approximately 50% more job openings now compared to pre-pandemic levels, but millions of job seekers have not returned to the workforce [6][7] - The company noted a record number of workers voluntarily quitting their jobs, indicating a competitive labor market [7] Company Strategy and Development Direction - ZipRecruiter is focused on three pillars: increasing the number of employers, increasing job seekers, and enhancing matching technology [8] - The company aims to build brand awareness among job seekers, similar to its established presence with employers [9][10] - The management believes they are uniquely positioned for long-term success in the current economic environment [7] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about returning to a more traditional macroeconomic pattern, while acknowledging the ongoing uncertainty [24][16] - The company anticipates a gradual slowdown in hiring activity as Q4 approaches, which is historically a seasonally slower period [16][29] Other Important Information - ZipRecruiter launched a new employee resource group to promote diversity and inclusion within the company [10][11] - The company has received awards for workplace happiness and work-life balance, reflecting its internal culture [11] Q&A Session All Questions and Answers Question: How is ZipRecruiter achieving high levels of revenue per paid employer despite onboarding record levels of paid employers? - Management indicated that employer willingness to pay has remained robust, and existing cohorts are becoming more comfortable with paying more as they recognize the value of ZipRecruiter [20][21] Question: Is the return to normalized macroeconomic trends something being observed in the quarter? - Management confirmed that while they experienced robust results, they see signs of a return to normal, albeit with some caution due to the uncertainty of the current environment [24][26] Question: What are the key drivers keeping quarterly paid employers at high levels? - Management noted that a sophisticated sales and marketing operation, along with the reactivation of previous customers, contributed to maintaining high levels of quarterly paid employers [27][28] Question: How long does it typically take for new sales hires to reach full productivity? - It typically takes a handful of months for SMB-oriented inside salespeople and a handful of quarters for enterprise salespeople to reach full productivity [33] Question: How is ZipRecruiter performing relative to competition in the market? - Management expressed confidence in their performance relative to competitors, emphasizing the opportunity to capture a larger share of the offline recruiting market [36] Question: What impact has the end of unemployment insurance had on hiring? - Management observed a fundamental change in job seekers' expectations and behaviors, leading to a competitive labor market with increased wages and benefits [37][38]

Financial Performance - For the three months ended June 30, 2021, revenue was $183.0 million, a 109% increase compared to $87.7 million for the same period in 2020[118][131]. - The company reported a net loss of $52.8 million for the three months ended June 30, 2021, compared to a net income of $21.3 million for the same period in 2020[118][130]. - Total revenue for the three months ended June 30, 2021, was $182.96 million, a 109% increase from $87.66 million in the same period of 2020[156]. - Subscription revenue increased by $77.3 million, or 104%, for the three months ended June 30, 2021, driven by the reopening of the economy and increased job postings[156]. - Performance-based revenue increased by $18.0 million, or 132%, for the three months ended June 30, 2021, due to more paid engagements and higher revenue per engagement[156]. Expenses and Losses - Adjusted EBITDA for the three months ended June 30, 2021, was $(1.7) million, compared to $25.6 million for the same period in 2020[118][129]. - The Adjusted EBITDA margin for the three months ended June 30, 2021, was -1%, down from 29% in the same period in 2020[130]. - Sales and marketing expenses grew by $86.1 million, or 307%, for the three months ended June 30, 2021, primarily due to an additional $64.7 million in marketing and advertising[160]. - Total operating expenses for the three months ended June 30, 2021, were $229.68 million, compared to $54.17 million in the same period of 2020[155]. - General and administrative expenses rose by $67.8 million, or 692%, for the three months ended June 30, 2021, compared to the same period in 2020, largely driven by stock-based compensation and non-recurring fees related to the Company's Direct Listing[164]. - Research and development expenses increased by $21.6 million, or 132%, for the three months ended June 30, 2021, compared to the same period in 2020, primarily due to an increase in stock-based compensation[162]. Market and Growth - Quarterly Paid Employers increased by 48% from 114,705 in March 2021 to 169,191 in June 2021[120][122]. - The U.S. labor market showed significant recovery, contributing to a 120% increase in employers in the marketplace compared to the same quarter in 2020[131]. - The economic recovery has driven a significant increase in demand for labor, positively impacting the company's performance[131]. - The company plans to continue aggressive investments in its marketplace to drive growth, focusing on expanding employer and job seeker engagement[117]. Cash Flow and Financial Position - As of June 30, 2021, the company had cash totaling $153.3 million and $243.7 million available in unused borrowing capacity under its current revolving credit facility[168]. - Cash provided by operating activities for the six months ended June 30, 2021, was $37.7 million, a significant increase from $9.9 million in the same period of 2020[181]. - Cash used in investing activities for the six months ended June 30, 2021, was $8.2 million, primarily due to capital expenditures and capitalized software development costs[183]. - Cash provided by financing activities for the six months ended June 30, 2021, was $9.3 million, consisting mainly of proceeds from the exercise of stock options[185]. - The company had no amounts outstanding under its current revolving credit facility and was in compliance with its debt covenants as of June 30, 2021[176]. Tax and Accounting - The effective tax rate for the three months ended June 30, 2021, was 23%, differing from the U.S. federal statutory rate of 21% due to various tax benefits[153]. - The effective tax rate for the three months ended June 30, 2021, was 23%, significantly higher than the 1% rate in the same period of 2020, due to excess tax benefits from stock options and RSUs[167]. - The company continues to evaluate its estimates and assumptions related to revenue recognition, stock-based compensation, and income taxes, which could affect reported amounts[188]. - There have been no changes to the company's critical accounting policies and estimates compared to those discussed in the Prospectus, except for the estimated fair value of the market condition RSU grant[189]. - The company qualifies as an emerging growth company under the JOBS Act, allowing it to use an extended transition period for compliance with new accounting standards[190]. Risks - The company is exposed to interest rate risk related to its revolving line of credit, but does not anticipate material risks from interest rate changes[193]. - The company faces foreign currency exchange risk primarily from expenses in currencies other than the U.S. Dollar, including the Canadian Dollar, British Pound, and Israeli New Shekel[194]. - A hypothetical 10% change in foreign currency exchange rates would not have a material impact on the company's consolidated financial statements[195].

Financial Data and Key Metrics Changes - ZipRecruiter reported record revenue of $183 million for Q2 2021, exceeding guidance by $23 million, representing a 109% year-over-year growth and a 46% increase over Q1 2020 [12][17] - The GAAP net loss was $53 million in Q2 2021, compared to a net income of $21 million in the prior year, while adjusted EBITDA loss was $2 million with a negative 1% margin [13][14] - The company ended the quarter with over $153 million in cash, an increase of $18 million from Q1 2021, and secured a $250 million line of credit [16] Business Line Data and Key Metrics Changes - The number of quarterly paid employers reached nearly 170,000, marking a 120% year-over-year increase and an all-time high for ZipRecruiter [12][17] - Job seeker volume has been increasing, although it remains lower than pre-pandemic levels, indicating a gradual recovery in job-seeking activity [8][10] Market Data and Key Metrics Changes - The U.S. economy experienced GDP growth exceeding 6% in Q2 2021, with almost 75% of jobs lost during the pandemic recovered [7] - The competitive labor market has led to increased demand from employers, which ZipRecruiter has capitalized on through enhanced sales and marketing efforts [12][17] Company Strategy and Development Direction - ZipRecruiter is focused on improving job matching algorithms and enhancing the user experience for both job seekers and employers, which has led to increased applications submitted by job seekers [10][33] - The company aims to maintain its growth trajectory while managing expenses, with a focus on achieving a 30% adjusted EBITDA margin over time [58][59] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a gradual return to a more traditional macroeconomic pattern by the end of the year, despite uncertainties related to the pandemic [18][25] - The company anticipates a seasonal softening of job activity in Q4, which is a trend seen prior to the pandemic [18][45] Other Important Information - ZipRecruiter has experienced record levels of interest from both new and returning employers, indicating strong market demand [63][64] - The company is currently in a market share grabbing mode, focusing on reducing the time to hire as a primary goal [64] Q&A Session Summary Question: How does ZipRecruiter manage the equilibrium between job seeker activity and employer demand? - Management highlighted the importance of their matching algorithms, which allow employers to reach out to potential candidates, giving them a competitive advantage in the current job market [23][24] Question: What is the interplay between employer growth and revenue per paying employer growth? - Management expects some return to normalcy in paid employer growth, with revenue per paid employer likely to improve over time as employers become more familiar with the platform [30][31] Question: Can you provide an update on the speed and quality of job matching? - Management confirmed that algorithmic matching continues to improve, with ongoing enhancements leading to better outcomes for both job seekers and employers [50][52] Question: What is the outlook for sales and marketing spend? - Management indicated that they will adjust marketing investments based on market conditions, with a focus on maintaining strong ROI and brand building [55][56] Question: How many of the new employers were new to ZipRecruiter versus returning? - Management reported record levels of interest from both new and returning employers, indicating strong value delivery and market resonance [63][64]