ZipRecruiter, Inc. Q4 FY2025 earnings call

• 2025 was a year of stabilization and strategic execution; achieved year-over-year revenue growth in Q4-25. - Launched Be Seen First in Jan 2026, where be seen first candidates are nearly two times more likely to have a conversation with an employer. - Optimized marketplace for generative AI discovery, site visits from AI engines more than doubled year over year in Q4. - Integrated Break Room ratings into ZipRecruiter, enhancing job postings and company pages. - Enterprise adoption of Zip Intro grew, with scheduled sessions increasing 17% sequentially and 5x year-over-year in Q4. - Launched AI-driven tool for tailored screening questions, with 93% of new employers using it in Q4. - Adoption of automated campaign performance solution increased 32% year-over-year in Q4. - Enhanced resume database to allow employers to filter by recent platform activity, with resume unlock rate 66% higher for relevant candidates.

Q4-25 revenue reached $112 million, representing 1% year-over-year growth. Performance marketing revenue increased 5% in Q3 of 2025 and 9% in Q4 of 2025. Full-year 2026 expected to have flat year-over-year revenue compared to 5% decline in 2025, with adjusted EBITDA margins expanding from 9% in 2025 to 14% in 2026. Q4-25 had 59,000 quarterly paid employers, up 2% year-over-year. Revenue per paid employer was $1,889, down 2% year-over-year and up 10% sequentially. Q4-25 adjusted EBITDA was $16.2 million, margin 15%.

• Q1 2026 revenue guidance $106 million at midpoint, down 4% year over year and 5% sequentially. - Adjusted EBITDA guidance midpoint $5 million, 5% margin, flat year over year. - For full year 2026, expect flat year-over-year revenue compared to 2025, with adjusted EBITDA margins expanding from 9% in 2025 to 14% in 2026.

Q: Eric Sheridan from Goldman Sachs asked about employer side characterization and change into Q1.

A: Dave said last quarter SMB demand slowed, but since Jan SMB demand looks better. Ongoing investments and execution in enterprise paying off, with slight sequential growth in performance marketing revenue in Q4 vs Q3.

Q: Rob Sackhart from William Blair asked about Q4 softness, SMB rebound, and LLM traffic.

A: Dave said Q4 softness mapped to job openings decline. Jan 1st saw pickup. Ian said LLM traffic is fastest growing part of mix, but still mostly from traditional sources, growing healthily.

Q: Trevor Young from Barclays asked about growth cadence and capital allocation.

A: Ian said confidence from year-to-date momentum in enterprise. Capital allocation prioritizes organic growth, then M&A, then return of capital, with consistent share repurchases.

Q: Josh Chan from UBS asked about Q4 slowdown, Q1 recovery, and Be Seen First.

A: Ian said Q1 is typical weak season, starting from lower point. Be Seen First helps job seekers stand out, resumes still in play, candidates using it selectively, employers responding positively.

Q: Kishan Patel from Raymond James asked about optimizing platform for Gen AI discovery.

A: Ian said AI is permeating the site, with many AI-driven features to come, like suggested screening questions which saw massive adoption.