• 2024 Revenue: $474 million, a decline of 27% year over year.
• Adjusted EBITDA: $78 million, with a 16% adjusted EBITDA margin.
• Net Loss 2024: $12.9 million.
• Q4 2024 Revenue: $111 million, an 18% decline year over year and a 5% decline quarter over quarter.
• Quarterly Paid Employers Q4 2024: 58,000, an 18% decrease year over year and an 11% decrease sequentially.
• Revenue per Paid Employer: $19.20, roughly flat year over year and up 7% sequentially.
• Q4 2024 Net Loss: $10.8 million, compared to net income of $5.6 million in Q4 2023.
• Q4 2024 Adjusted EBITDA: $14.4 million, with a 13% margin.
• Cash and Equivalents: $506 million as of December 31, 2024.
• Q1 2025 Revenue Guidance: $109 million at the midpoint, an 11% decline year over year and a 2% decline quarter over quarter.
• Q1 2025 Adjusted EBITDA Guidance: $5 million at the midpoint, with a 5% adjusted EBITDA margin.

• Warning! GuruFocus has detected 2 Warning Sign with WK.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ZipRecruiter Inc (NYSE:ZIP) reported a 15% year-over-year increase in total web traffic in Q4 2024, outperforming its largest competitors.
• The company launched several new products, including ZipIntro and a next-generation resume database, which have positively impacted customer satisfaction and product usage.
• ZipRecruiter Inc (NYSE:ZIP) completed the acquisition of Break Room, an employer rating site, and began its rollout in the US, enhancing its product suite.
• Despite a challenging labor market, ZipRecruiter Inc (NYSE:ZIP) maintained a resilient business model with a 16% adjusted EBITDA margin for 2024.
• The company observed positive trends in employer account reactivations and a more typical seasonal pattern in Q1 2025 revenue guidance, indicating potential recovery in hiring activity.

Negative Points

• ZipRecruiter Inc (NYSE:ZIP) experienced a 27% year-over-year decline in revenue for 2024, reflecting continued softness in hiring demand.
• The company reported a net loss of $12.9 million for 2024, compared to a net income in the previous year.
• Quarterly paid employers decreased by 18% year-over-year and 11% sequentially, primarily due to reduced demand from SMBs.
• Revenue per paid employer remained roughly flat year-over-year, indicating challenges in increasing monetization per customer.
• The labor market downturn has persisted for 28 consecutive months, surpassing the Great Recession, impacting ZipRecruiter Inc (NYSE:ZIP)'s overall performance.

Q & A Highlights

Q: Can you provide more color on the positive trends you're seeing in Q1, and are they specific to certain verticals or geographic areas? A: Timothy Yarbrough, CFO, explained that the positive trends began towards the end of Q4, with better-than-expected holiday season performance. There has been a meaningful increase in paid employers and account reactivations, which are widespread. This translates to a Q1 revenue guidance of a 2% decline at the midpoint, contrasting with larger declines in previous years. Ian Siegel, CEO, added that both internal and external indicators, like the NFIB Small Business Optimism Index, show strong sentiment, particularly noteworthy during a typically low-demand Q4.

Q: Does the Q1 guidance reflect investing in response to optimistic trends and employer feedback? A: Timothy Yarbrough confirmed that the guidance reflects increased investment in sales and marketing, driven by positive trends and data.

Q: Are the reactivations you're seeing indicative of actual hiring activity, or just improved sentiment? A: Timothy Yarbrough clarified that reactivations are from high-intent employers looking to post jobs, and the Q1 guidance reflects actual behaviors, not just sentiment.

Q: In a downside scenario, would you expect higher margins than the mid-single digits mentioned for a recovery scenario? A: Timothy Yarbrough stated that in a downside scenario, they would generate higher margins by adjusting operating expenses, consistent with their approach to managing through economic cycles.

Q: How are you viewing the competitive landscape and AI initiatives for 2025? A: Ian Siegel noted that the focus is on gaining market share with job seekers, as this predicts long-term success. AI is being used to improve matching and post-matching experiences, enhancing employer and job seeker engagement.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.