ZipRecruiter, Inc. Q3 FY2025 earnings call

• Despite a soft labor market, ZipRecruiter showed momentum with consistent sequential revenue and quarterly paid employer growth. Enterprise performance-based revenue grew 12% q/q, the most in 3 years. - Product investments like over 180 ATS integrations, programmatic campaign optimization tools, and Zip Apply have improved enterprise and job seeker experiences. - On the job seeker side, generative AI drove a 140% sequential increase in visits, and Breakroom launched with over 10,000 employer profiles powered by over 1 million worker ratings.

In Q3 2025, revenue was $115 million, a 2% year-over-year decline but a 2% sequential increase. Quarterly paid employers reached 67,000, up 3% year over year and 1% sequentially. Performance-based revenue grew 12% quarter over quarter, accounting for 24% of total revenue in Q3.

• Q4 2025 revenue guidance is $109M-$115M, midpoint $112M (1% year-over-year increase, first y/y growth since Q3 2022). - Adjusted EBITDA guidance midpoint $14M implies full-year 2025 adjusted EBITDA margin of 9%, exceeding mid-single-digit scenario from earlier in the year.

• Forward-looking statements are subject to risks and uncertainties in ZipRecruiter's quarterly report on Form 10-Q. - Macroeconomic uncertainties could materially affect actual results vs. forward-looking statements.

Q: How should we think about product innovation influencing growth against a still weak macro?

A: Ian Siegel said product strategy is working, taking market share with enterprise success due to ATS integrations, campaign tools, and Zip Apply.

Q: What's the macro view informing Q4 guidance?

A: Ian Siegel said macro showed continued modest decline in hiring, guidance assumes continuation of current market trend.

Q: What's enabling Q4 margin strength?

A: Tim Yarbrough said Q4 margin strength reflects typical seasonal marketing investment patterns.

Q: What's behind 12% sequential growth in enterprise performance-based revs?

A: Dave Travers said it's cumulative effect of market share take and campaign performance tool.

Q: What's driving quarterly paid employer trends?

A: Tim Yarbrough said driven by new paid employers and reactivations; Ian Siegel added on platform engagement and algorithmic matching.

Q: Surprises on conversion quality from Gen AI traffic?

A: Ian Siegel said Gen AI traffic quality is on par with other sources, being optimized for continued growth.