ZipRecruiter(ZIP) - 2024 Q4 - Annual Report

Financial Performance - For the year ended December 31, 2024, the company's revenue was $474.0 million, a decrease of 26.5% from$ 645.7 million in 2023[30]. - The company reported a net loss of $12.9 million for 2024, compared to a net income of$ 49.1 million in 2023[30]. - Adjusted EBITDA for 2024 was $78.0 million, down from$ 175.3 million in 2023, indicating a significant decline in operational profitability[30]. - Total revenue for the year ended December 31, 2024, was $474.0 million, with subscription revenue at$ 369.8 million and performance-based revenue at $104.2 million[388]. - Total revenue for 2024 decreased to$ 474,001 thousand, down 26.6% from $645,722 thousand in 2023[398]. - Gross profit for 2024 was$ 423,851 thousand, a decline of 27.1% compared to $581,413 thousand in 2023[398]. - Net loss for 2024 was$ 12,854 thousand, contrasting with a net income of $49,098 thousand in 2023[401]. - The company reported a basic net income (loss) per share of$ (0.13) for 2024, compared to $0.49 in 2023[398]. - Cash provided by operating activities decreased to$ 45.735 million in 2024 from $103.192 million in 2023[406]. - The company reported a net loss of$ 12.854 million for the year ended December 31, 2024, compared to a net income of $49.098 million in 2023, resulting in a basic net loss per share of$ 0.13[508]. Revenue Breakdown - Subscription revenue includes time-based job posting plans and upsells, with contracts typically subject to renewal and nonrefundable[388]. - Performance-based revenue is generated from customers paying per click or per application, with campaigns lasting from one to three months[389]. - Subscription revenue for 2024 was $369,823,000, down from$ 508,384,000 in 2023, while performance-based revenue decreased to $104,178,000 from$ 137,338,000[527]. Expenses and Liabilities - Operating expenses for 2024 totaled $422,589 thousand, a reduction of 15.8% from$ 501,976 thousand in 2023[398]. - Total current assets decreased to $543,673 thousand in 2024, down from$ 562,288 thousand in 2023[396]. - Total liabilities slightly decreased to $650,630 thousand in 2024 from$ 651,135 thousand in 2023[396]. - The provision for bad debts was $185 thousand in 2024, significantly lower than$ 2.736 million in 2023[406]. - Total sales and marketing expenses for 2024 were $215.8 million, a decrease of 18.7% from$ 265.3 million in 2023[442]. - Marketing and advertising expenses for 2024 were $105.9 million, down from$ 131.4 million in 2023, indicating a reduction of 19.4%[442]. Investments and Acquisitions - The company acquired Poplar Technologies Ltd. on July 23, 2024, expanding its offerings in the employee review platform sector[410]. - The Company recognized $5.8 million in developed technology and$ 0.4 million in trade names and trademarks related to the acquisition of Breakroom during the year ended December 31, 2024[491]. - The fair value of consideration transferred for the acquisition of Breakroom totaled $13.3 million, consisting of$ 12.4 million paid in cash and a liability of $0.9 million[514]. - The estimated fair value of total assets acquired from Breakroom is$ 13,527,000, with net assets acquired amounting to $13,340,000[515]. Market Presence and Brand Awareness - The company has achieved 80% aided brand awareness among U.S. employers and job seekers, reflecting strong market presence[43]. - The company utilizes a flexible pricing model tailored to customer needs, including flat rate and performance-based pricing options[36]. - The company has been recognized for its workplace culture, receiving awards such as "Best Company Culture" and "Best Place to Work"[45]. Compliance and Risk Management - The company is subject to various international laws and regulations regarding data privacy and security, which may impact its operations[50]. - The company is exposed to foreign currency risk primarily related to expenses in Canadian Dollar, British Pound, and Israeli New Shekel[372]. - The company maintained effective internal control over financial reporting as of December 31, 2024[380]. Stock and Equity - The company repurchased common stock worth$ 40.346 million in 2024, compared to $147.565 million in 2023[406]. - The weighted average shares of Class A and Class B common stock outstanding decreased from 100.730 million in 2023 to 98.588 million in 2024[508]. - The company has a share repurchase program where all repurchased shares are retired immediately, affecting the calculation of earnings per share[497]. Miscellaneous - The company employs 1,000 individuals across multiple countries, including the United States, the United Kingdom, Canada, and Israel[45]. - The company has invested in technology capabilities to enhance its marketplace for job seekers and employers, focusing on data-driven systems and machine learning[49]. - The company has a metrics-driven culture, emphasizing quantitative operating goals and innovative strategies to achieve them[43]. - The company does not currently own any patents but consistently reviews branding strategies and technology for new intellectual property[57]. - The company relies on trade secrets and confidential information to maintain its competitive position[58].