ZipRecruiter(US:ZIP)2025-11-05 21:10Financial Performance - Q3'25 revenue was $115 million, reflecting a 2% sequential growth and a 2% year-over-year decline, marking the second consecutive quarter of sequential growth[13]. - Adjusted EBITDA for Q3'25 was $9.2 million, with an Adjusted EBITDA margin of 8%, compared to $15 million and a margin of 13% in Q3'24[55]. - Revenue for Q3'25 was $114.982 million, a decrease from $117.084 million in Q3'24, while gross profit was $102.467 million compared to $104.702 million in the same period[69]. - The net loss for Q3'25 was $9.822 million, compared to a net loss of $2.570 million in Q3'24[69]. - Adjusted EBITDA for Q3 2025 was $9,249,000, with an Adjusted EBITDA margin of 8%, down from 13% in Q3 2024[71]. - Cash flows from operating activities provided $2,611,000 in Q3 2025, a decrease from $33,243,000 in Q3 2024[70]. - The company experienced a net cash increase of $8,353,000 in Q3 2025, compared to a decrease of $46,074,000 in Q3 2024[70]. Revenue Guidance - Q4'25 revenue guidance is set at $109 million to $115 million, indicating a return to year-over-year growth for the first time since Q3'22[16]. - Q4'25 revenue guidance is $112 million at the midpoint, representing a 1% year-over-year increase, marking the first quarter of year-over-year revenue growth since Q3'22[62]. Employer and Job Seeker Metrics - Quarterly Paid Employers (QPEs) reached 67,000, up 3% year-over-year and up 1% sequentially, representing the first year-over-year increase since Q1'22[22]. - Paid Employers grew sequentially for the third consecutive quarter in Q3'25, with year-over-year growth for the first time since Q1'22[61]. - Engagement on the platform improved, with nearly 24% more SMB jobs receiving five or more applications within the first 24 hours compared to Q3'24[15]. - Job seeker visits from generative AI engines more than doubled in Q3'25, highlighting the increasing use of AI in job searches[28]. Cash and Assets - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $411.0 million, down from $497.6 million year-over-year and $421.2 million quarter-over-quarter, primarily due to stock repurchases[59]. - Total current assets as of September 30, 2025, were $449.780 million, down from $543.673 million as of December 31, 2024[68]. - The company purchased 2.2 million shares for a total of $10.0 million under its share repurchase program in Q3'25[59]. Operating Expenses and Costs - Operating expenses for Q3'25 totaled $107.494 million, slightly down from $107.941 million in Q3'24[69]. - GAAP sales and marketing expenses increased to $59,952,000 in Q3 2025 from $54,928,000 in Q3 2024[73]. - Non-GAAP cost of revenue for Q3 2025 was $11,421,000, slightly higher than $11,231,000 in Q3 2024[72]. - The company reported a GAAP cost of revenue of $12,515,000 for Q3 2025, compared to $12,382,000 in Q3 2024[72]. - Stock-based compensation expense for Q3 2025 was $11,060,000, down from $15,033,000 in Q3 2024[71]. Strategic Focus - The company remains focused on disciplined capital deployment and sustained investment in high-ROI product and marketing opportunities to navigate the current hiring environment[64]. - The company aims for a long-term goal of 30% Adjusted EBITDA margins, demonstrating confidence in future growth despite current market conditions[18]. Business Acquisitions - The company acquired a business for $12,040,000 in Q3 2024, impacting cash flows from investing activities[70]. Other Metrics - Breakroom, a workplace rating platform, published over 10,000 employer profiles in the U.S. as of September 2025, up from 8,000 in the previous quarter[33]. - The company had a total of 94,775 fully diluted shares outstanding as of September 30, 2025[74].