ZipRecruiter(US:ZIP)2025-05-08 22:00Financial Data and Key Metrics Changes - Q1 2025 revenue was $110 million, a 1% sequential decline and a 10% year-over-year decline, which is consistent with typical seasonal patterns as employers resume hiring after the holiday slowdown [6][14] - Quarterly paid employers increased by 10% sequentially, marking the highest Q4 to Q1 growth since 2021, but decreased by 11% year-over-year [6][14] - Revenue per paid employer was $17.34, up 2% year-over-year but down 10% sequentially, reflecting a shift from subscription to performance revenue [15] Business Line Data and Key Metrics Changes - The company achieved Workday certified integration status, enhancing its applicant tracking system integrations, which now total 180 [9][10] - New features released in Q1 focused on improving collaboration among employers, resulting in a 9% increase in resume unlock rates among enterprise employers [11] - The ZipIntro feature saw a 16% quarter-over-quarter growth in scheduled sessions, indicating increased employer engagement [12] Market Data and Key Metrics Changes - Despite macroeconomic uncertainty, employer hiring activity remains steady, with no significant pullback observed [22][23] - The company is prepared for a wide range of scenarios, allowing for rapid adjustments in investment based on hiring demand [31] Company Strategy and Development Direction - The company aims to transform the recruitment industry through technology-driven solutions, focusing on enhancing engagement between job seekers and employers [5] - Long-term strategic initiatives will continue to be funded despite current revenue declines, with expectations of capturing market share in the recruitment total addressable market (TAM) [19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for Q2 2025, projecting revenue guidance of $111 million, a 1% increase quarter-over-quarter [7][17] - The company anticipates achieving year-over-year revenue growth in Q4 2025, contingent on maintaining current trends [18] Other Important Information - The net loss for Q1 2025 was $12.8 million, compared to a net loss of $6.5 million in Q1 2024 [15][16] - Cash, cash equivalents, and marketable securities totaled $468 million as of March 31, 2025 [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 employers have not yet pulled back on hiring [21][22] Question: What signs are SMBs and enterprises looking for to become more optimistic about hiring? - Employers are looking for certainty in the macro environment to make hiring and investment decisions [26][27] Question: How will the company manage investment trajectory amid uncertainty? - The company will let data drive decisions, maintaining flexibility to adjust sales and marketing investments based on hiring demand [30][31] Question: Are there any signs of increased hesitancy among employers? - Employers are taking slightly longer to review candidates but are still moving quickly when they decide to hire [39][41] Question: Are there new opportunities for marketing investments? - The company has seen some competitors pull back in marketing channels, presenting potential opportunities for attractive investments [42]