ZipRecruiter(ZIP) - 2021 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2021, revenue was $212.7 million, a 107$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$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$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$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$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$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].