ZipRecruiter(US:ZIP)2025-11-05 21:14Financial Performance - For the three months ended September 30, 2025, the company's revenue was $115.0 million, a decrease of 1% compared to $117.1 million for the same period in 2024[126]. - The net loss for the three months ended September 30, 2025, was $9.8 million, compared to a net loss of $2.6 million in the same quarter of 2024[126]. - Adjusted EBITDA for the three months ended September 30, 2025, was $9.2 million, down from $15.0 million in the same quarter of 2024, resulting in an Adjusted EBITDA margin of 8%[126][136]. - Total revenue for the three months ended September 30, 2025, was $114,982, a decrease of $2,102, or 2%, compared to $117,084 for the same period in 2024[158]. - For the nine months ended September 30, 2025, total revenue was $337,279, down $25,702, or 7%, from $362,981 in 2024[159]. - The Adjusted EBITDA margin for the nine months ended September 30, 2025, was 7%, down from 18% in the same period of 2024[136]. Revenue Breakdown - The company generates revenue primarily from fees paid by employers to post jobs, with subscription revenue consisting of time-based job posting plans and upsell services[138]. - Subscription revenue decreased by $3.3 million, or 4%, while performance-based revenue increased by $1.2 million, or 5%, for the three months ended September 30, 2025[158]. - Revenue per Paid Employer for the quarter ended September 30, 2025, was $1,717, an increase from $1,693 in the previous quarter[130]. Operating Expenses - The company expects sales and marketing expenses to remain its largest operating expense category as it continues to invest in these efforts over time[148]. - Sales and marketing expenses increased by $5.0 million, or 9%, for the three months ended September 30, 2025, totaling $59,952[163]. - Research and development expenses for the three months ended September 30, 2025, were $30,854, a decrease of $2,851, or 8%, compared to $33,705 in 2024[165]. - General and administrative expenses decreased by $2.6 million, or 14%, for the three months ended September 30, 2025, compared to the same period in 2024[167]. - Total operating expenses for the nine months ended September 30, 2025, were $324,504, an increase from $319,057 in 2024[157]. Cash Flow and Investments - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $411.0 million, with $287.4 million available in unused borrowing capacity under its credit facility[174]. - For the nine months ended September 30, 2025, cash provided by operating activities was $3.2 million, resulting from a net loss of $32.2 million adjusted by non-cash charges of $44.7 million[192]. - The company held $248.5 million in total investments as of September 30, 2025, consisting of money market mutual funds and available-for-sale debt securities[189]. - Net cash provided by (used in) investing activities was $86.9 million for the nine months ended September 30, 2025, compared to $(47.1) million in 2024[190]. - For the nine months ended September 30, 2025, cash used in financing activities was $96.7 million, consisting of $94.1 million for the repurchase of common stock[196]. Share Repurchase and Debt - The company repurchased 17.1 million shares of Class A common stock for $93.9 million during the nine months ended September 30, 2025, with approximately $129.2 million remaining for future repurchases[185][186]. - The credit facility agreement was increased from $250.0 million to $290.0 million in July 2024, with a maturity date of April 30, 2026[176]. - The company had no amounts outstanding under its credit facility and was in compliance with its debt covenants as of September 30, 2025[180]. Tax and Other Expenses - The effective tax rate for the three months ended September 30, 2025, was impacted by non-deductible expenses and research and development tax credits[155]. - Income tax expense increased by $3.3 million, or 183%, for the three months ended September 30, 2025, primarily due to differences in pretax losses and a decrease in research and development tax credits[172]. - Interest expense for the three months ended September 30, 2025, was $7,406, slightly down from $7,475 in 2024[157]. - Total other income (expense), net increased by $2.1 million, or 185%, for the three months ended September 30, 2025, primarily due to a decrease related to income accretion for marketable securities[169]. Market Conditions and Company Strategy - The labor market remains subdued, impacting hiring levels, but the company reported a higher number of Quarterly Paid Employers compared to the same quarter in 2024[137]. - The number of Quarterly Paid Employers increased by 1% from June 30, 2025, to September 30, 2025, contrasting with a 7% decrease in the same period of the previous year[129]. - The company plans to continue aggressive investments in its marketplace to enhance functionality and drive growth, focusing on employer and job seeker engagement[125]. Risk Management - The company is exposed to fluctuations in foreign exchange risk, primarily related to expenses in currencies other than the U.S. Dollar, such as the Canadian Dollar and British Pound[206]. - A hypothetical increase in interest rates of 100 basis points would result in a $0.5 million decrease in the fair value of the investment portfolio as of September 30, 2025[205]. - The company has not experienced material risks due to changes in interest rates, with a hypothetical 10% change in interest rates not impacting the financial statements materially[203]. - The company did not have any relationships with unconsolidated organizations or financial partnerships through September 30, 2025[198]. - There have been no changes to the company's critical accounting policies and estimates compared to the previous year[200]. - The company aims to preserve principal, provide liquidity, and maximize income without significantly increasing risk in its investment activities[205].