ZipRecruiter(ZIP) - 2024 Q4 - Annual Results

Financial Performance - Q4 2024 revenue was $111.0 million, down 18% year-over-year and down 5% quarter-over-quarter, primarily due to continued softness in hiring demand [40]. - Full year 2024 revenue totaled $474.0 million, representing a 27% decline year-over-year [12]. - The number of Quarterly Paid Employers decreased to 57,833 in Q4 2024, down 18% year-over-year and down 11% sequentially, reflecting reduced demand from small and medium-sized businesses (SMBs) [41]. - Adjusted EBITDA for Q4 2024 was $14.4 million, equating to a 13% Adjusted EBITDA margin, while full year Adjusted EBITDA was $78.0 million, equating to a 16% margin [20][13]. - Revenue per Paid Employer remained stable at $1,920 in Q4 2024, consistent with the prior year but up 7% sequentially [27]. - Q1 2025 revenue guidance is projected at $107 - $111 million, reflecting cautious optimism for an improving labor market [21]. - Revenue per Paid Employer for Q4'24 was $1,920, flat year-over-year and up 7% sequentially, with performance-based revenue representing 23% of total revenue [43]. - Gross profit for Q4'24 was $99.5 million, down 19% year-over-year and down 5% sequentially, while gross margin increased slightly to 90% [45]. - Total operating expenses for Q4'24 were $103.5 million, a decrease from $109.2 million in Q4'23, primarily due to lower stock-based compensation [47]. - Net loss in Q4'24 was ($10.8) million, or (10)% net loss margin, compared to net income of $5.6 million in Q4'23 [57]. - Cash, cash equivalents, and marketable securities totaled $505.9 million as of December 31, 2024, down from $520.1 million a year earlier [60]. - Q1'25 revenue guidance is $109 million at the midpoint, representing an 11% decline year-over-year [62]. - Adjusted EBITDA guidance for Q1'25 is $5 million at the midpoint, or a 5% Adjusted EBITDA margin [63]. - The company remains cautiously optimistic about the outlook for 2025, anticipating potential recovery in hiring activity [64]. - Revenue for Q4 2024 was $111,020,000, a decrease of 18.4% compared to $135,922,000 in Q4 2023 [71]. - Gross profit for Q4 2024 was $99,516,000, down from $122,444,000 in Q4 2023, representing a decline of 18.7% [71]. - Total operating expenses for Q4 2024 were $103,532,000, a decrease of 5.7% from $109,157,000 in Q4 2023 [71]. - Net loss for Q4 2024 was $10,793,000, compared to a net income of $5,631,000 in Q4 2023 [73]. - Adjusted EBITDA for Q4 2024 was $14,389,000, down 66.1% from $42,382,000 in Q4 2023 [74]. - Non-GAAP cost of revenue for Q4 2024 was $10,340,000, a decrease from $12,247,000 in Q4 2023 [75]. - Non-GAAP operating expenses for Q4 2024 were $51,944,000, compared to $45,814,000 in Q4 2023, an increase of 13.5% [77]. - Cash and cash equivalents at the end of Q4 2024 were $218,432,000, down from $283,043,000 at the end of Q4 2023 [73]. - The company repurchased $2,711,000 of common stock in Q4 2024, compared to $8,412,000 in Q4 2023 [73]. - Total fully diluted shares outstanding as of December 31, 2024, were 109,356,000 [78]. Operational Highlights - Total web traffic grew by 15% year-over-year in Q4 2024, significantly outpacing competitors [11]. - The next-generation Resume Database launched in Q3 2024 has seen double-digit percentage increases in both new users and average resume unlocks [31]. - ZipIntro, a new feature for job seekers, has improved hiring speed, with most employers receiving their first application in under 20 minutes [32]. - The company has begun the initial rollout of Breakroom in the U.S., providing job seekers with data on pay, hours, and work conditions [35]. Financial Metrics and Guidance - Management utilizes key operating metrics and non-GAAP financial measures to assess performance consistently, aiding in internal budgeting and strategic evaluations [84]. - Non-GAAP measures such as Adjusted EBITDA and Adjusted EBITDA margin are used to evaluate operating performance, but should not be viewed as superior to GAAP measures like net income [85]. - The company cannot provide a reconciliation of Adjusted EBITDA for Q1'25 or fiscal year 2025 to GAAP measures due to unpredictability of certain excluded items [87].