ZipRecruiter(US:ZIP)2025-05-08 20:15Financial Performance - For the three months ended March 31, 2025, the company's revenue was $110.1 million, representing a 10% decrease compared to $122.2 million for the same period in 2024[104][115]. - The net loss for the quarter ended March 31, 2025, was $12.8 million, compared to a net loss of $6.5 million in the same quarter of 2024, resulting in a net loss margin of 12%[104][115]. - Adjusted EBITDA for the quarter ended March 31, 2025, was $5.9 million, with an Adjusted EBITDA margin of 5%, down from $20.8 million and 17% in the same quarter of 2024[104][106][115]. - Total revenue for the three months ended March 31, 2025, was $110.1 million, a decrease of $12.2 million or 10% compared to $122.2 million for the same period in 2024[136]. - Subscription revenue decreased by $11.2 million or 12%, while performance-based revenue decreased by $1.0 million or 4% for the three months ended March 31, 2025[136]. - Net loss for the three months ended March 31, 2025, was $12.8 million, compared to a net loss of $6.5 million for the same period in 2024[135]. - The company reported a net loss of $12.8 million for the three months ended March 31, 2025, compared to a net loss of $6.5 million for the same period in 2024[161][162]. Operational Metrics - The number of Quarterly Paid Employers increased by 10% from the previous quarter, with 63,466 Paid Employers in Q1 2025 compared to 57,833 in Q4 2024[105][108]. - Revenue per Paid Employer decreased to $1,734 in Q1 2025 from $1,920 in Q4 2024, indicating a decline in revenue generation per employer despite improvements in product offerings[105][110]. - The company experienced a moderation in hiring plans among employers due to economic uncertainty, impacting overall hiring levels compared to the previous year[115]. Expenses and Cost Management - Cost of revenue decreased by $1.7 million or 13% to $11.7 million, maintaining a gross margin of 89% for both periods[137]. - Sales and marketing expenses increased by $3.8 million or 7% to $58.5 million, representing 53% of total revenue[138]. - Research and development expenses decreased by $2.8 million or 8% to $33.3 million, remaining at 30% of total revenue[139]. - General and administrative expenses decreased by $0.7 million or 4% to $18.3 million, representing 17% of total revenue[140]. - Sales and marketing expenses are projected to remain the largest operating expense category as the company continues to expand its efforts in this area[127]. - Continued investments in research and development are deemed crucial for achieving strategic objectives, with expenses expected to vary as a percentage of total revenue[129]. Cash Flow and Investments - Cash used in operating activities for the three months ended March 31, 2025, was $9.9 million, resulting from a net loss of $12.8 million[161]. - Cash provided by investing activities for the three months ended March 31, 2025, was $39.1 million, primarily from $187.6 million received from paydowns and maturities of marketable securities[163]. - Cash used in financing activities for the three months ended March 31, 2025, was $26.5 million, mainly for the repurchase of common stock[166]. - The company experienced a net cash increase of $2.6 million for the three months ended March 31, 2025, compared to a decrease of $543,000 in the same period of 2024[159]. - As of March 31, 2025, the company had cash, cash equivalents, and marketable securities totaling $468.2 million, with $286.6 million available in unused borrowing capacity under its credit facility[144]. - Total investments held by the company as of March 31, 2025, amounted to $302.5 million, consisting of money market mutual funds and available-for-sale debt securities[157]. Share Repurchase and Capital Management - The company has authorized a share repurchase program of up to $650.0 million, with $95.7 million remaining available for future repurchases as of March 31, 2025[154][155]. - For the three months ended March 31, 2025, the company repurchased 4.6 million shares for $27.4 million, including $14.5 million under a Rule 10b5-1 plan[154]. Other Financial Considerations - Total other income (expense), net improved by $440,000 or 18% to $(2.0) million for the three months ended March 31, 2025[141]. - Income tax expense decreased by $4.0 million or 128% to $(875,000) for the three months ended March 31, 2025, primarily due to a decrease in income before income taxes[143]. - A hypothetical increase in interest rates of 100 basis points would result in a $0.5 million decrease in the fair value of the company's investment portfolio[175]. - The company is exposed to foreign currency risk primarily related to expenses in currencies other than the U.S. Dollar, with a hypothetical 10% change in exchange rates not expected to have a material impact on financial statements[176].