ZipRecruiter, Inc. earnings

Management highlights

• Stabilization in business and accelerating innovation in marketplace are encouraging. • Focus on driving more meaningful conversations between employers and job seekers to outperform broader hiring category long term. • AI permeating every department, driving efficiencies and accelerating roadmap. • Next generation AI engine increased applications by 37% for exposed job seekers, expect all job seekers on NextGen search engine by end of Q2. • Features like Zip Intro, redesigned resume database, acquisition and deployment of Break Room contributing to strategy working as seen in job seeker reviews showing more interviews and phone calls. • Team did extraordinary job finding high roi marketing opportunities in sales and marketing this quarter leading to EBITDA margin above expectations and guidance.

Guidance

• Q2 revenue guidance: $112 million midpoint (flat year over year, 4% quarter over quarter). • Q2 adjusted EBITDA guidance: $13 million midpoint (12% margin). • 2026 expected: flat year-over-year revenue (5 percentage point improvement over 2025 decline) and adjusted EBITDA margins to expand from 9% in 2025 to 14% in 2026 (5 percentage point expansion).

Segment performance

Quarterly paid employers finished the first quarter with over 63,000, flat year-over-year and up 7% sequentially. Revenue per paid employer was $1,698, down 2% year over year and 10% sequentially. Net loss in Q1 was $4.7 million. Adjusted EBITDA in Q1 was $9.7 million (9% margin, ahead of guidance range). Cash, cash equivalents, and marketable securities totaled $393.5 million as of March 31st. Q2 revenue guidance is $112 million midpoint (flat year over year, 4% quarter over quarter). Q2 adjusted EBITDA guidance is $13 million midpoint (12% margin). 2026 expected flat year-over-year revenue (5 percentage point improvement over 2025 decline) and adjusted EBITDA margins to expand from 9% in 2025 to 14% in 2026 (5 percentage point expansion). Enterprise segment performance: performance marketing revenue up 5% year over year, 24% of revenue this quarter (doubled from Q1 2019's 12% of revenue).

Analyst Q&A

• Q: Talk about differences between SMB and enterprise segments and how behavior might change in 2026.

  A: Enterprise mainly comprises performance marketing revenue up 5% year over year, 24% of revenue this quarter (doubled from Q1 2019), expect to continue expanding. Customer base from both segments consistent with subdued but stable macro environment.

• Q: Talk about Zip app for ChatGPT and potential integrations.

  A: New app went live on ChatGPT, LLM still a tiny contributor to traffic mix but good to be there at beginning.

• Q: Upcoming rollout of next generation AI engine and market share driver.

  A: Next generation search engine increased applications by 37% for exposed job seekers, expect all job seekers on it by end of Q2.

• Q: Dynamic of productivity benefits vs rising token costs from GenAI tools and headcount needs.

  A: AI permeating every department, driving efficiencies and accelerating roadmap, not a cost-saving opportunity but an acceleration mechanism.

• Q: Margin upside and what drove it.

  A: EBITDA margins above expectations and guidance due to driving efficiency across G&A, sales and marketing, R&D, and team finding high roi marketing opportunities in sales and marketing.