ZipRecruiter (ZIP) FY Conference Summary Company Overview - ZipRecruiter has been in business for fifteen years and has maintained profitability with a balance sheet of $468 million [2] - It is the number one rated employer site for recruiting and has been the top job search app for over five years on both Android and iOS [2] - The company has experienced significant job seeker traffic growth, outpacing competitors [2] Financial Performance - In the previous year, ZipRecruiter achieved over $70 million in adjusted EBITDA, representing a 16% margin [3] - Q1 revenue was reported at $110 million with adjusted EBITDA of $5.9 million [19] - The revenue per paid employer was $1,734 per quarter, showing an 11% compounded annual growth rate since 2021 [20] Market Position and Industry Insights - The recruiting industry in the U.S. has a total addressable market (TAM) of over $300 billion, with a majority of spending still directed towards offline recruiting [4][25] - ZipRecruiter, along with other online platforms, accounts for a small fraction of the overall revenue in the recruiting category [5] - The company is positioned for disruption in the recruiting market as technology solutions gain acceptance among employers [5] Strategic Initiatives - ZipRecruiter has invested over $1 billion in marketing to build brand recognition, which is crucial in the recruiting category [3][13] - The company has developed proprietary algorithms and a robust R&D center in Israel to enhance candidate matching through advanced technologies like machine learning and AI [8][10] - The introduction of "Phil," an AI personal recruiter, has improved user engagement and experience [11][12] Recent Trends and Future Outlook - There has been a noticeable stabilization in hiring trends since December, with a 10% sequential increase in paid employer numbers from Q4 to Q1 [31] - The company anticipates a return to year-over-year growth in Q4 2025, driven by improved market conditions [23] - Flexibility in operating expenses has allowed ZipRecruiter to remain profitable despite market downturns [24][28] Competitive Advantages - ZipRecruiter possesses a large proprietary dataset from interactions between job seekers and employers, providing an unfair advantage in matching capabilities [26] - The company enjoys over 80% aided brand awareness among job seekers and employers, which has helped it weather recent market challenges [27] - The platform's ability to connect job seekers and employers quickly is emphasized through innovations like "Zip Intro," which facilitates rapid interviews [47] Challenges and Market Dynamics - The recruiting industry faces challenges from entrenched behaviors and skepticism towards new solutions, particularly in offline recruiting [49] - ZipRecruiter aims to demonstrate its value by providing faster and more cost-effective recruiting solutions compared to traditional methods [50] Conclusion - ZipRecruiter is well-capitalized and strategically positioned to capitalize on the recovery of the labor market, with a focus on leveraging technology and brand strength to drive future growth [28]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $110 million, a 1% sequential decline and a 10% year-over-year decrease, which is consistent with typical seasonal patterns as employers resume hiring after the holiday slowdown [7][16] - Quarterly paid employers increased by 10% sequentially, marking the highest Q4 to Q1 growth since 2021, but decreased by 11% year-over-year [16] - Revenue per paid employer was $17.34, up 2% year-over-year but down 10% sequentially [17] - Net loss for Q1 was $12.8 million, compared to a net loss of $6.5 million in Q1 2024 [17] - Cash, cash equivalents, and marketable securities totaled $468 million as of March 31, 2025 [18] Business Line Data and Key Metrics Changes - The company achieved Workday certified integration status, enhancing its applicant tracking system integrations, which now total 180 [10] - The new features released in Q1 for the resume database led to a 9% increase in the resume unlock rate among enterprise employers [12] - Employer adoption of the ZipIntro feature grew, with scheduled sessions increasing by 16% quarter over quarter in Q1 [13] Market Data and Key Metrics Changes - Despite increased macroeconomic uncertainty, employer hiring activity has remained steady, with no pronounced pullback observed [8][23] - The company anticipates Q2 revenue guidance of $111 million, representing a 1% increase quarter over quarter [9][18] Company Strategy and Development Direction - The company is focused on transforming the recruitment industry through technology-driven solutions and enhancing engagement between job seekers and employers [6] - Strategic investments are being made in product features and integrations to improve the hiring experience [10][12] - The company aims to maintain a long-term focus while being prepared for various macroeconomic scenarios [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding employer activity and the potential for year-over-year revenue growth in Q4 2025 [9][19] - The company is monitoring hiring demand closely and is prepared to adjust investments based on market conditions [23][31] Other Important Information - The company continues to invest in long-term strategic initiatives while maintaining financial flexibility [9][20] - Adjusted EBITDA for Q1 was $5.9 million, equating to a margin of 5% [17] Q&A Session Summary Question: Is the wait-and-see attitude widespread across geographies and verticals? - Management indicated that while macro uncertainty is increasing, internal data shows that employers have not yet pulled back on hiring [22][23] Question: What signs are SMBs and enterprises looking for to become more optimistic about hiring? - Customers are looking for certainty in the macro environment to make hiring and investment decisions [26] Question: How will the company manage investment trajectory amid uncertainty? - The company will let data drive decisions and maintain flexibility in sales and marketing investments [30][31] Question: Are there any signs of increased hesitancy in employer behavior? - Employers are taking slightly longer to review candidates but are still moving quickly when they decide to hire [40][42] Question: Are there new opportunities for marketing investments? - The company has seen some competitors pull back in marketing channels, presenting potential opportunities for investment [43]