ZIPRECRUITER, INC. Q4 FY2024 earnings call

• Product improvements: Launched ZipIntro for employers to connect with vetted candidates, next-generation resume database improved satisfaction, and acquired Breakroom (UK employer rating site) with US rollout underway.
• Traffic growth: Q4 2024 web traffic grew 15% year-over-year, outpacing competitors.
• Product features: ZipIntro drives face-to-face connections, next-gen resume database boosts usage, applicant tracking system integrations like Paradox enhance application process for job seekers and employers.

In Q4 2024, revenue was $111 million, down 18% year-over-year and 5% quarter-over-quarter. Paid employers were 58,000, a 18% year-over-year decrease and 11% sequential decrease. Revenue per paid employer was $1,920, flat year-over-year and up 7% sequentially. For 2024, total revenue was $474 million, down 27% year-over-year. Adjusted EBITDA in 2024 was $78 million, a 16% margin. Net loss in 2024 was $12.9 million. Q4 adjusted EBITDA was $14.4 million, a 13% margin.

• Q1 2025 revenue guidance midpoint is $109 million, down 11% year-over-year and 2% quarter-over-quarter.
• Adjusted EBITDA guidance midpoint for Q1 2025 is $5 million, 5% margin.
• Cautiously optimistic about 2025 recovery, expecting year-over-year quarterly revenue growth by Q4 2025 if positive trends hold, with adjusted EBITDA margins in mid-single-digits for 2025.

• Labor market uncertainty impacting hiring demand.
• Potential for further erosion of hiring demand affecting revenue.
• Economic cycles posing challenges to the business.

Q: Ralph Schackart asks about positive quarter-to-date trends and reactivations.

A: Tim Yarborough and Ian Siegel discuss reactivations as high intent employers and seasonality being a factor.

Q: Josh Chan inquires about sentiment vs actionable behavior.

A: Tim Yarborough explains reactivations are high intent employers preparing to hire.

Q: Trevor Young asks about downside EBITDA and government hiring.

A: Tim Yarborough and David Travers discuss EBITDA margins in downside scenario and low government exposure.

Q: Josh Beck asks about macro data and tech vertical.

A: David Travers talks about quit rates stabilizing and tech vertical stability.

Q: Mark Mahaney asks about cost structure and recovery.

A: Tim Yarborough and Ian Siegel discuss cost levers and confidence in recovery.

Q: Eric Sheridan asks about competition and AI.

A: Ian Siegel talks about competition in job seeker traffic and AI initiatives.

Q: Jacob asks about ROI on marketing.

A: David Travers discusses ROI-focused marketing spend