Financial Data and Key Metrics Changes - ZipRecruiter's Q2 2025 revenue was $112.2 million, representing a 2% sequential increase from Q1 2025, which had revenue of $110.1 million [5][14] - The number of quarterly paid employers (QPEs) reached 66,300 in Q2 2025, marking a 4% sequential increase from Q1 2025 [14] - Revenue per paid employer for Q2 was $16.93, down 4% year over year and down 2% sequentially [14] - The net loss for Q2 2025 was $9.5 million, compared to a net income of $7 million in Q2 2024 [14] - Adjusted EBITDA for Q2 was $9.3 million, resulting in an 8% margin, down from 23% in 2024 [14] Business Line Data and Key Metrics Changes - The acquisition of Breakroom has led to the publication of over 8,000 employer pages with more than 1 million ratings as of July 2025 [7][10] - The introduction of AI-powered features in the resume database for SMBs resulted in a 12% increase in the number of SMB customers unlocking resumes in Q2 2025 compared to Q1 2025 [8][12] - The enterprise customer adoption of ZipIntro increased significantly, with scheduled sessions growing by 90% quarter over quarter [7][11] Market Data and Key Metrics Changes - The overall labor market remains soft, with a low quit rate, but signs of stabilization and momentum are emerging across both SMBs and enterprises [20][22] - Healthcare continues to show strong demand for new labor, while education is experiencing a year-over-year decline despite a sequential increase [27][28] Company Strategy and Development Direction - The company is focused on product and technology investments to enhance matching and engagement between employers and job seekers [9] - ZipRecruiter aims to lead the shift from offline to online recruiting solutions and capitalize on the labor market recovery [8][12] - The company plans to maintain disciplined capital deployment while investing in innovative product initiatives and high ROI marketing campaigns [15][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to modest year-over-year revenue growth in Q4 2025, driven by stabilization in the business [6][15] - Despite ongoing macroeconomic challenges, the company has maintained adjusted EBITDA profitability while investing in product and technology [16][17] - The management noted that the hiring environment remains challenging, but they are optimistic about the potential for recovery [60] Other Important Information - The company has a strong cash position, with cash, cash equivalents, and marketable securities totaling $421.2 million as of June 30, 2025 [14] - The guidance for Q3 2025 revenue is between $110 million and $160 million, with the midpoint representing a 1% increase quarter over quarter [14][15] Q&A Session Summary Question: Differences between SMBs and enterprise hiring trends - Management noted that hiring remains muted but there are signs of stabilization and momentum across both SMBs and enterprises [20][22] Question: Future hiring needs and AI's impact - Conversations with employers indicate a slight reduction in anxiety around tariffs, but overall hiring remains uncertain [26][30] Question: Generative AI's impact on traffic - The use of generative AI tools has increased traffic to ZipRecruiter, particularly for research-oriented job seeker queries [38][39] Question: AI features and compliance with hiring regulations - The company is committed to ensuring compliance with hiring laws while deploying AI technologies [45][46] Question: Impact of ZipIntro on hiring outcomes - ZipIntro has significantly improved engagement between job seekers and employers, leading to higher response rates [51][52] Question: Pricing and monetization strategies - The company is focused on delivering value first before considering price increases, especially during a period of declining demand [66][68] Question: Future of Breakroom and its impact on KPIs - Breakroom is expected to enhance employer branding and job seeker confidence, leading to increased engagement and potential monetization opportunities [74][75]

Financial Data and Key Metrics Changes - In 2024, revenue was $474 million, a decline of 27% year-over-year [12] - Adjusted EBITDA was $78 million, equating to a 16% adjusted EBITDA margin, towards the higher end of expectations [12] - Net loss for 2024 was $12.9 million, compared to a net income of $5.6 million in Q4 2023 [13][25] - Q4 2024 revenue was $111 million, representing an 18% decline year-over-year and down 5% quarter-over-quarter [23] - Cash, cash equivalents, and marketable securities totaled $506 million as of December 31, 2024 [26] Business Line Data and Key Metrics Changes - Total web traffic in Q4 2024 grew by 15% year-over-year, significantly outpacing competitors [10] - Quarterly paid employers were 58,000, an 18% decrease versus Q4 2023 [24] - Revenue per paid employer was $1,920, roughly flat year-over-year and up 7% sequentially [24] Market Data and Key Metrics Changes - The labor market has faced a decline in hiring for 28 consecutive months, with the quit rate near its lowest level since 2015 [11] - The NFIB Small Business Optimism Index posted its highest reading since October 2018, indicating potential recovery in hiring plans [13] Company Strategy and Development Direction - The company aims to grow market share by improving job seeker traffic and enhancing product offerings [7][8] - New product launches include ZipIntro and a next-generation resume database, aimed at improving customer satisfaction and engagement [9][19] - The acquisition of Breakroom is part of the strategy to expand the product suite and enhance employer ratings [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, citing positive internal and external indicators [13][29] - The company plans to increase investment in sales and marketing initiatives as hiring activity recovers [15][29] - Management acknowledged the uncertainty in the labor market but remains confident in long-term growth opportunities [30][31] Other Important Information - The company has made substantial improvements in its marketplace despite a historic labor market downturn [16] - The focus remains on connecting job seekers with employers effectively, leveraging proprietary data and technology [7][95] Q&A Session Summary Question: Positive trends observed in Q1 - Management noted that positive trends began towards the end of Q4, with an increase in paid employers and account reactivations [34][35] Question: Q1 guidance and margin implications - The guidance reflects investments in response to positive trends, indicating a strategic approach to sales and marketing [39][41] Question: Reactivations and hiring activity - Reactivations indicate high intent employers preparing to post jobs, aligning with observed positive sentiment [44] Question: Revenue trajectory and growth expectations - Management indicated that year-over-year growth is likely to be achieved by Q4 2025, with less chance of growth before then [46] Question: Cost structure and flexibility - The company has flexibility in its cost structure, particularly in sales and marketing spend, allowing for adjustments based on market conditions [78][79] Question: Competitive landscape and AI initiatives - The competitive focus is on gaining market share among job seekers, with AI being leveraged to enhance matching and engagement [92][95]