ZipRecruiter(ZIP) - 2021 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2021, revenue was $183.0 million, a 109$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$87.66 million in the same period of 2020[156]. - Subscription revenue increased by $77.3 million, or 104$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$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$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].