ZipRecruiter Inc. (ZIP) rallied 6.32% in the pre-market session on Wednesday, as the online employment marketplace company's Q4 2024 results showed signs of recovery in the hiring market and positive traction from its new product launches.

Despite a challenging labor market environment, ZipRecruiter reported a few encouraging trends in the quarter, including a meaningful increase in paid employers and account reactivations towards the end of Q4. This momentum carried into Q1 2025, with the company's revenue guidance for the current quarter reflecting only a 2% sequential decline, in contrast with larger declines in prior years.

ZipRecruiter attributed these positive signals to improving sentiment among employers, backed by external indicators like the NFIB Small Business Optimism Index posting its highest reading since October 2018. The company's CEO, Ian Siegel, expressed cautious optimism that the prolonged labor market downturn may be nearing an end.

During the challenging market conditions, ZipRecruiter stayed focused on enhancing its product offerings. The company launched several new products in 2024, including ZipIntro, which allows employers to talk face-to-face with vetted candidates within 24 hours of posting a job, and a next-generation resume database. These offerings have positively impacted customer satisfaction and product usage, driving engagement from both employers and job seekers.

ZipRecruiter's strategy has been to gain market share with job seekers, as this is seen as a predictor of long-term success in the employment marketplace. The company is leveraging AI to improve its matching algorithms and enhance the post-matching experience, aiming to drive more meaningful connections between employers and job seekers.