ZipRecruiter(US:ZIP)2026-02-25 23:02Financial Data and Key Metrics Changes - Q4 2025 revenue reached $112 million, representing a 1% year-over-year growth, marking the first year-over-year growth since Q3 2022 [13][20] - Adjusted EBITDA in Q4 2025 was $16.2 million, equating to a margin of 15%, higher than 13% in Q4 2024 and 8% in Q3 2025 [22] - Cash, cash equivalents, and marketable securities totaled $409.1 million as of December 31, 2025 [23] Business Line Data and Key Metrics Changes - Performance marketing revenue increased by 9% in Q4 2025, up from 5% growth in Q3 2025, driven by enterprise-focused strategies [18] - The number of quarterly paid employers was over 59,000 in Q4, a 2% increase year-over-year but a 12% decrease sequentially, consistent with historical seasonal patterns [21] Market Data and Key Metrics Changes - Job openings declined by 10% year-over-year in Q4 2025, reflecting a soft hiring demand [6][9] - The company noted that hiring demand in Q4 2025 was below normal seasonal expectations, with a notable slowdown in SMB demand [28] Company Strategy and Development Direction - The company launched "Be Seen First," a product aimed at enhancing job seekers' visibility to employers, which has shown promising results [6][15] - ZipRecruiter is focused on leveraging AI technology to improve hiring processes and enhance user engagement, with significant investments made in AI-driven features [10][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate a challenging macroeconomic environment, expecting flat year-over-year revenue in 2026 compared to a 5% decline in 2025 [8][25] - The company anticipates Adjusted EBITDA margins to expand by 5 percentage points in 2026, reflecting cost discipline and targeted investments [25] Other Important Information - Tim Yarbrough, the CFO, announced his departure after over a decade with the company, with Dave Travers stepping in as interim CFO [11][12] - The company has initiated a search for a permanent CFO to ensure a seamless transition [12] Q&A Session Summary Question: Demand environment characterization between large enterprises and SMBs - Management noted a slowdown in SMB demand during Q4 but observed a rebound in early Q1 2026, indicating a stable overall macro environment [28][29] Question: Clarification on Q4 slowdown and Q1 recovery - Management explained that the Q4 slowdown was consistent with government job openings data, while the Q1 recovery is starting from a lower baseline due to the holiday period [34][52] Question: Traffic behavior from LLMs and its impact - Management indicated that while LLM traffic is growing, traditional sources still dominate in terms of engagement, but LLMs are becoming an important part of the traffic mix [37][38] Question: Growth cadence throughout the year and capital allocation - Management expressed confidence in growth acceleration based on year-to-date trends and enterprise performance, while also prioritizing organic growth and potential M&A opportunities in capital allocation [44][46]