ZipRecruiter, Inc. Q2 FY2025 earnings call

• QPEs have shown sequential growth since Q4 2024, with Q1 2025 up 10% from Q4 2024 and Q2 2025 up 4% sequentially. • Revenue has stabilized, with Q2 2025 up 2% sequentially and Q3 guidance indicating a 1% sequential increase. • Product improvements: Breakroom has over 8,000 employer pages with over 1 million ratings; ZipIntro adoption by enterprise customers up 90% QoQ; new AI feature in resume database for SMBs led to 12% increase in SMB customers unlocking resumes. • Focus on product investment, strong brand, and financial stability to capitalize on labor market recovery.

Quarterly paid employers (QPEs) grew sequentially since Q4 2024. In Q1 2025, QPEs were 63,500, up 10% from Q4 2024, and grew another 4% sequentially in Q2 2025 to 66,300. Revenue in Q1 '25 was $110.1 million, down 1% sequentially; Q2 '25 revenue was $112.2 million, up 2% sequentially. The midpoint of Q3 2025 revenue guidance implies a 1% sequential increase.

• Q3 2025 revenue guidance: $110 million to $116 million, midpoint represents 1% sequential increase, first Q2 to Q3 growth since 2021. • Adjusted EBITDA guidance for Q3 '25: $6 million midpoint, 5% margin. • Expect return to modest year-over-year revenue growth in Q4 with full-year adjusted EBITDA margins in mid-single digits.

• Macro-economic challenges persisting. • Compliance risks related to hiring regulations with AI deployments.

Q: Differences between SMBs and enterprise in stabilization; broad-based or sector-focused?

A: Ian says hiring is muted but there's momentum spanning SMB and enterprise, with sequential revenue growth projections for Q3 indicating broad-based recovery.

Q: Impact of AI overviews on traffic?

A: Ian says AI overviews impact job seeker research traffic, with highly engaged users coming from these methods, though it's still an emerging channel.

Q: How quickly margins can lever improved revenue trends?

A: Tim says it depends on 2026 macroeconomics and progress on initiatives, with historical context of margins in 20% range in '22 and long-term goal of 30%.