ZipRecruiter(US:ZIP)2023-05-13 23:33Financial Data and Key Metrics Changes - Q1 2023 revenue was $183.7 million, down 19% year-over-year, but above the high end of guidance [6][20] - Adjusted EBITDA for Q1 2023 was $35.3 million, with an adjusted EBITDA margin of 19%, exceeding guidance [6][22] - GAAP net income was $5 million in Q1 2023, compared to $8.4 million in Q1 2022 [22] - Cash, cash equivalents, and marketable securities totaled $519.1 million as of March 31, 2023, down from $570.4 million at the end of 2022 [23] Business Line Data and Key Metrics Changes - Paid employers decreased to 106,000, a 29% decline year-over-year and a 2% decrease sequentially [21] - Revenue per paid employer increased by 15% year-over-year to $1,734, but decreased by 11% sequentially [21] Market Data and Key Metrics Changes - Organic job seeker traffic increased by 40% in Q1 2023, with 56% of new job seekers receiving an invitation to apply within seven days [9][19] - Revenue in April 2023 was down 27% year-over-year, indicating a continued contraction in demand [24] Company Strategy and Development Direction - The company is focused on decreasing expenses to maintain profitability amid a softening labor market [7][9] - Investments in technology and product improvements are expected to yield long-term benefits despite current macroeconomic challenges [12][48] - The company aims to enhance its matching technology and user experience to adapt to changing market conditions [10][48] Management's Comments on Operating Environment and Future Outlook - Management noted an atypical softness in hiring demand, affecting both SMBs and enterprises [7][24] - The company is not providing full-year revenue guidance due to the uncertain economic environment [8][24] - Management remains confident in achieving adjusted EBITDA guidance despite the challenging conditions [29][30] Other Important Information - The Board of Directors authorized a $100 million increase to the share repurchase program, totaling $450 million [23] - The company is leveraging generative AI to improve job description processes and enhance user experience [14][19] Q&A Session Summary Question: Acceleration of revenue decline and confidence in EBITDA guidance - Management confirmed an acceleration in the deceleration of demand for recruiting services, with no historical precedent for current conditions [29][30] Question: Impact of work from home on business - Less than 10% of listings offer remote work, which does not significantly impact overall business [35] Question: Vertical performance and resilience - Healthcare and travel sectors show resilience, while technology is more impacted by the slowdown [36] Question: Competition and market dynamics - Competitors are also pulling back on investments, and management focuses on customer needs rather than competition [39] Question: Progress towards enterprise revenue goals - Short-term demand for hiring has decreased across all segments, but long-term needs remain strong [40][41] Question: Sustaining revenue per paid employer growth - Management expressed confidence in long-term trends for revenue per paid employer despite current disruptions [44] Question: AI investments as competitive differentiators - The company believes its early investments in AI will provide a competitive edge in the future [47][48]