Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, good afternoon. My name is Abbie, and I will be your conference operator today. At this time, I would like to welcome everyone to the ZipRecruiter Incorporated Fourth Quarter 2022 Earnings Conference Call. Today's conference is being recorded and all lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. Instructions]. [Operator you. Thank

now Investor will conference to over And turn Haroldson, Relations. Drew I the

begin. You may

Drew Haroldson

Thank good which XXXX. operator, the for our ZipRecruiter's you, the and for year earnings us for performance and XXXX, conference in ended joining first December call, and quarter quarter during the we XX, discuss afternoon. will and Thank guidance you year full

CFO. David call Joining Ian CEO; and are the and today Travers, me Tim Yarbrough, on Co-Founder Siegel, President;

forward-looking actual statements events Before today please financial we anticipated reminded that forward-looking A uncertainties could future begin, to in subject to forward-looking performance website. results statements. the and those from differ discussion be ZipRecruiter's and/or which made cause risks materially results Actual be are available the future from found of XX-K differ these in of XXXX, our some the to related statements ZipRecruiter. and report the be ended investor of risk any SEC's on Form year will on annual for that materially can XX, factors December could website

new whether based a in no to are today, them, conference or call and current or developments obligation the forward-looking statements revise as The ZipRecruiter expectations of this assumes result otherwise. on update of as

or letter to non-GAAP discuss in included and isolation during today's the considered for GAAP call, as from shareholder financial In of be addition, non-GAAP nearest XX-K. GAAP Reconciliations metrics we non-GAAP in our measures not metrics These substitute ZipRecruiter's a should will results. financial measures. in the to, Form are addition

turn And to over will Ian. now I the call

Ian Siegel

to afternoon good joining and today. us Drew, you, Thank everyone

XXXX. our XXXX. annual revenue to calls while Revenue adjusted we headwinds guidance in from ZipRecruiter. We growth top-line marks margins margin, delivered XX% $XXX for on expect the year million. XX% XX% grew strong in EBITDA our compounded from another in up a was EBITDA revenue, XXXX. for And XX% rate strong XX% XXXX XXXX Notably, XXXX

in model business and resiliency strong matching of leaning have ZipRecruiter's achieved while demonstrate in product our profitability we investments environments, technology. volatile results the both strategic and macro long-term into

strides great together technology. with jobs world's best bringing and made matching We the both towards job employers building seekers leading-edge marketplace,

As can cohort revenue employer per with increasing remain shareholder strong this see letter, you in annual our showing year. cohorts paid each employer our

We seekers XX% also we active served from million I steady current over XXXX, in Despite job my a macroeconomic XX the will increase succeed in long-term. continue remain that the conviction to XXXX. backdrop,

us and expense ROI profile to the opportunities arrive as investments First, unique we've the gives conserve far, take advantage observed sales conditions adjust in up rapidly operating our That they or down. there. when flexible marketing XXXX ability capital of lets us not or so in is like

levers While predictable. revenue the forecasting have far to for challenging, top-line we EBITDA adjusted more XXXX driving make is

the hand paired of strong Our of us financial a position of cash puts with profitability on track record in million $XXX strength.

Second, working. on feedback seekers that be to recruiters record from own on driving for job has investment seekers data engagement amplifier, Phil levels. an personal activity our our to proven our Phil, is job job AI shows ZipRecruiter seekers in,

new can the the quarters. over drumbeat Phil the table. brings a job now Phil quarter, and job presentation. expect of This feature their of they who improve to XX% of preview last navigating face the with appear human lets this persistent employers; from edit phenomenon puts capabilities new on seekers process, high what a to Phil preview this search for of see example interaction is choose to the you Phil seekers an level As and coming how job

marketplace quarter. the all companies balanced means of Third, enterprise total That our Performance-based from continues succeed. sizes. to our is of move into in most for XX% revenue grew year-over-year accounted with XX% upmarket increasingly and recent opportunities revenue

revenue. enterprise approach believe a the SMB over that to will we long-term, split continue We and XX:XX between

over across brand and our job The XX% awareness in in employers the X believe this significant positions seekers seeker is and both we've investments off. challenging both job our balanced alike success marketing us We have of Fourth, last made now marketplace. labor for job employer on seeker the aided the side and markets. years awareness paid robust

and believe beginning together. that at employers Fifth finally, shift generational we of the in and to enables job come are how technology we a seekers

improving and the building Our matching remain funded. Phil, staffed key and strategies algorithmic fully user experiences of leveraging best modern

level technology increase Our XXXX. in of in investment will

shift. the at generational You of forefront will see us that

it the Now progress Dave of against to to our I'll talk through our pillars over strategy. turn X marketplace some of

David Travers

Ian. you, Thank

the key our XXXX, progress at made significant three Looking strategy. pillars of we against back

and the in the of on and employers how capitalizing are fundamentally early job We opportunity innings changing interact. massive market seekers

highlights that. reflect share some investments with I'm excited to you. Our

will We in pillar, paid marketplace. number and strategic is of per the first which increasing revenue our with start employers our employer

the market, XX% While XXXX the in the reduce dynamic with year far of persisted has finished tight employers jobs see number decrease This We into was began a to paid June, of continued throughout historically labor a in year-over-year. and XXXX XXX,XXX XXXX. employers quarterly we so posted. QX, balance of

and have have that with what consistent dynamic uncertainty in dramatically react cycles. is have prior we earlier macroeconomic a seen more to reacted, We SMBs seen enterprises than larger

more Employers pay effective all increasing they in investing we confidence However, to get succeed marketplace. industry-leading in could their by matching customers. our sizes to continue in delivering to technology more and of bids upsells our gain

revenue increase paid result, an XX% employer As of grew to $X,XXX a QX, year-on-year. per in

XXXX increasing year employer cohort continuing long XXXX throughout trends revenue cohort. annual trend the for employer per in The year's employer saw during Annual the than this revenue employer employers higher for cohort its each strong revenue per paid sizes, of remained first across all year. one We approximately average XXXX. of XX% was growth cohort the

to continued across grow employer cohort. annual paid per revenue Additionally, each

customers, This revenue of in increased enterprise compared by by nearly momentum in For in with XX% example, larger revenue, one. year per with XX% is Performance-based driven enterprise year-over-year continued revenue we QX in average Xx XX% XXXX XXXX. our Further, $X,XXX, monthly the has QX cohort, grown since our employer the which customers. prior. predominantly year paid growth represented

have While and persistent industry skill already marketplace. our the needs terms of level, of base of hiring more in reflects jobs geography, larger our the a with we United of marketplace growing enterprises in diversity States

the penetrating over meaningful this stages the segment long-term. for in the expect growth of are in We early opportunities enterprise area and

I'll time need. investments on for on from have a to believe increasing increase Now XX of In made job million, seekers move our grew second active ZipRecruiter our marketplace. pillar, seekers a our to We of brand in their job XX% the XXXX. that in seekers in job destination number XXXX, ZipRecruiter

positioned to improvements product well have us moment. Our also on capitalize this

an market seekers labor to our of loyalty. the it create enduring prove marketplace job value to the opportunity provides As and cools,

potential which seekers allows has work. ZipRecruiter we Phil seekers changed job through introduced jobs that quarter, on the find leads redesigned so, the flow to way opportunities. now a such process on we they feature train feedback to better by the process XX% in to when engaged of calibration job Last In reviewing prefer QX, job which prompted the of set over providing job seekers ultimately potential do our and opportunities. Phil, job calibration

matching more to Android in we preview the new are apply our feature, job is but how the invitation to we After process over the QX, both In allowing transparency with their Employer a job seekers results. over reasons not as new and bring to more stores iOS their number one XX% also who to rated control look our better for app with job a seekers job-seeking opportunity only job the more products engaging the profiles. receive why introduced search employer. of job job, to marketplace of our application seekers updated View the and would that process. This into seeker an gives feature, insight provides One data

new course fruit. seekers being place the next These have seekers share XXXX, introduced we Aided brand opportunity. QX, best to all-time among creative, find grew marketing XX% building mind awareness around investments an of high. borne great Over for to in their job job the ZipRecruiter

the matching our conclude employers billions pillar, seekers matches around from our time. bring we third using technology smarter benefits and as data We of job technology. I'll industry-leading over employers better job to matching leading and progress over together gather seekers technology interact, This points with making our time.

of with delivered great result candidates million our matching, in we advancements XXXX. a match XX over As

introduced apply giving job the seekers to to more improvements model, more to. relevant we opportunities meta QX, learning In

they intelligently example, by a shown, to up factoring our jobs For drove meta model in job are latest how learning applications the seekers. patterns from search job more influence seeker X%

to execute pages a new in in increase of our Many focused The via in forward. geographically jobs and curated us more progress on greater come engines. intelligently advertisements QX, display XX% algorithm our ability in result pages in ZipRecruiter job deployed on search specific regions. seeker we to rate. rank registration through job to In job confidence pages made occupation-targeted XXXX gives seekers job These particular we going found a

Now through I'll fourth as quarter XXXX. year to quarter for well as Tim? turn full first it guidance for the and the talk to over Tim results

Tim Yarbrough

and Dave, good afternoon, everyone. you, Thank

fourth revenue of the comparisons well X% reflective the A when This decrease in we QX Paid and feel typical combined in a decrease particularly as grew represents to November. employers other cooling facing a decline in year-over-year as QX headwinds. as and continued economy. we Our in million macroeconomic the against QX a softening provided the of the post-COVID of the versus the the 'XX. quarter and sequential XX% decrease QX 'XX, XXX,XXX, challenging exceeded $XXX.X market, 'XX high-end a expenses representing XX% hiring of operating with year-over-year is of guidance decline XX% continued reopening drove were seasonal versus rising market labor impact employers

equating million, the of XXXX. in was margin income to XXXX. EBITDA million, $XX.X net net million, GAAP a of margin $XX.X QX to a XXXX in was of income adjusted a XX% compared quarter XX% $XX.X QX to 'XX fourth QX margin million of compared 'XX $XX.X and million of XX%, QX in $XX of in

reflects expansion year-over-year expenses. and The adjusted EBITDA lower marketing sales primarily margin

allocation We long-term all are at to capital prudent stages while investments. still economic of cycle focused on committed strategic remaining the

of securities XX, was our quarter. flow $XX.X partially A offset during million repurchases the The cash and million cash, cash million decrease as of cash million equivalents equivalents compared of in operating fourth and XX, Cash, was spent securities XXXX. common primarily $XXX.X due XXXX, to Class in $XXX.X quarter-over-quarter marketable to December by under marketable on as repurchase share September $XXX.X stock program,

executing to and job online saw as postings of for tighten more willingness Rather companies the remain depressed. than the many from the difficult our In we period, in We in Turning Employers of an have of increasingly saw posted. the would persistent a to to guidance. prove decreasing with start of what their now typical backdrop. be seasonal in showing they we XXXX jobs pay a lows June layoffs rebound macroeconomic are decline holiday hires, budgets. December number beginning marketplace XXXX, been

down As was a result, January's revenue XX% approximately year-over-year.

XXXX this QX trend 'XX assumes revenue and the persists Our throughout guidance year.

'XX QX expect at year-over-year. million the We XX% XXXX full a midpoint, midpoint, $XXX implies revenue the implying compared of XXXX. year XX% to decrease revenue million a $XXX at At decrease

a $XX of while million, our in adjusted $XXX Our expansion our during at significant the midpoint. matching adjusted points. of The to QX investments margin is margin part discipline economic EBITDA to demonstrating this EBITDA full 'XX our an guidance XX% maintain XXX year million a This us adjusted margin technology. while in XXXX cycle EBITDA basis in still increase allowing the and reflects at reflects line EBITDA adjusted adjusted margin guidance our of At product EBITDA of EBITDA the XX% midpoint. equates adjusted with

and continued economic of our and flexible job expect innovation balance through business both value cycles. continue proven to sides for a delivering seekers we shareholders model, With employers, on marketplace, and profitable sheet focus to robust

that, Operator? can With line now questions. for we open the

Operator

take [Operator Raymond Aaron first will Instructions] with our question you. James. Thank We Kessler from

is open. Your line

Aaron Kessler

First guidance is QX QX guidance maybe the Obviously, of on year. for QX assumes the a the for kind recovery revenue off to the levels.

you. in that year. are primarily other the in of for secondly, today? EBITDA spend lines coming marketing well? on or also as the guide just confidence then, you assume the your I the from for And what's and OpEx Thank some slowing that's leverage Just expenses sales

Ian Siegel

cooled And the as which plainly country, as saying for across a by I among slowdown. the things is want online recruiting just some This Aaron. And macroeconomic especially question, clearly, we're to Thanks effectively Ian. start SMBs. has in is, possible,

they're that delivering correspondingly there So same what is, if to our When these a to the seeing it's And job are longer jobs, job we surge seekers. other a seekers going or today. scale, in we you expect to from in work what macro are are at would job find and less fact, seeing. take that look you message at we're similarly slowdown, companies delivering

that from on to we prediction throughout environment have that made there's available information hiring based to a We be that. XXXX. the don't backdrop, at January the time that So softer going was us better assumption the than a using

comes, told the that ability labor This you, ride in down. opportunities as to invest, we invest able is repeatedly less up. we have to early the very be and we post-COVID there in if back the to go to if As however, then to pull see get is there if period, you don't have we and saw, rapidly rapidly going we And softening up. is are back, when recovery periods going one spending of those pull a where the particular we're market, it so profitability to ROI, indication

at for it our strong. at look coming our outlook, look our cash at those outlook, yes, growth you long-term outlook, But look if you the you you is our look flow very profit outlook If top-line if our at remain if is down. revenue growing, short-term,

We over confident just to point grow to And share data continue our improving we get reiterate, long-term, I to the something want quarter, in would to employers. our that It's the am better EBITDA I expect right me fundamentally, time. margins candidates just why we delivering every feeling you, to you persistently at fact the we're XX%-plus at. to ask I with if

do and then that, XX% We million the drive market. seekers that been paying we off almost is to job their brand seen of now in serve delivered [indiscernible] the investment and after tightest to needs XX% awareness back, to look are strong awareness us in not top for seekers to historically brands. seems any they markets build $X a order have a in quarter, labor that billion the that of only strategy that's those are labor of because we've with last one X of coming to job be a employers, rebalancing, with brand as tight And that have labor able And just on was we position market work.

just the or remain would we're on AI techniques Phil, the with very And emphasize working of funded, brand existing I also innovation, initiatives recruiter, all are then our modern that it's experiences those novel together, on putting And matching personal that our we're confident size long-term. focused fact, whether marketplace all and fully long-term when of or have, up investment going this scale year. R&D staffed we you pair is that in our the and awareness in to feel the the go of I and user

As QX why let to Tim, CFO, the to you one regarding, him QX take it turn two questions. questions I'm do these our we two obviously, have climbing, to over asked, through and going

Tim Yarbrough

HI, Aaron. here. Tim

of wanted I couple a click mentioned So items that to just Ian already. on

quite macroeconomic continues year activity And assumption would the he expected guidance, what as for kind XXXX. level a we as recruiting mentioned. because this both in that full throughout our is of January So of in said, for lower unique bit QX of came that have Ian the same below well normally environment

step-down is from is otherwise this react XXXX enterprises SMBs more to expected. hiring and would changes both and we in we've needs. a SMBs while macroeconomic faster have we've significant And a seen slowdown tend bit although what The among enterprises, notably seen have to consistent that what

the that changes, be more this would revenue our bit And being pronounced. today so and means negative, impact towards SMBs, skewed positive both macroeconomic these a with mix of more

question a to OpEx jumping bit. So little and then in seasonality hit I'll of kind your on

high in QX down seen be pretty ticking And employers in roughly So then in for and QXs QX, that's with flat we would and QX. what sequentially seasonality, QX we've consistent to through expect paid probably balance we continue the employer, over will up go into have paid that's that confidence the per Revenue the of year, past. and couple factors. of a to the really right by in driven

as gradual hiring towards the revenue employers with means the that more the generally more mature paid One is, our will have orgs employer needs. would thing paid employees And those employer. shift persistent skew the have that paid comparatively that And our base, in enterprise per cohort second be a towards data, flat seen larger higher business. you've our

So last expect more be while marketing continue noted, to we year, still to going year-on-year, excited 'XX, grew we're to XX% as the growth we that business that, grow. performance in and is moderated

revenue will the those of gives throughout course shape so the per And of year, paid factors that combined up push the kind revenue of size sequential and employer and growth. the

embedded the the OpEx it This other to our from in opportunities. sales our up are when from On that of the marketing. capital extent that it and are to OpEx shaping question, capital going we're the that not for reductions ROIs to and on marketing, we're conserve simple the fact allocation. is comes And most scientists, that artists aren't guidance save

We're where to already, continue Ian noted slim technology advantage going investing SG&A. to we that our pushing on want is, plan our hiring keep we're But going as in to we down advantage. and that's because think

Operator

take Mark with Evercore. next Mahaney question We'll our from

is open. line Your

Mark Mahaney

A couple questions. of

The XX% guidance whatever, decline. quarter for First, in low the decline XXs January. the March year-over-year implies

So it quarter. to deteriorate of through the are the implies balance that things going

Just is that the dumb you're what than January? already February declining is, seeing? question more Is already

you. Ian, secondly, higher-level question, then, And for

areas do 'XX. at You the talk those you're I'll innovation? focused it in questions. And on, you two about particularly think opportunistic just accelerating leave particular innovation for now But they're that

Tim Yarbrough

first Hey, Mark. one. This is your Tim. I'll take

look So provided think of year-over-year. the that in we've down is we've that at everything zoom so quarter given to-date. we seen on the for the of XX% shape kind we and yes, Difficulty] [Technical the call, QX, When overall, noted appropriate XX% QX already out

Ian Siegel

about. the areas thanks Yes, particularly a Ian. there's This Mark, And is question. excited I'm for of couple

job information years the starts expanding with we about terms strategy proving of everywhere variety Phil. see is with in of approach. talking is interacting to been new Phil, experimenting teaching that Phil through the for now of We've It's engagement. Phil. couple Phil is clearly a that a is and And skills, them of available of Phil breadth data One records seekers, right that it fundamentally, a

Job them them better apply when they seekers like from through who seem get to to look coach guiding about career a to. jobs employers to everything is making themselves which advice having giving presented really to

hey, job. advocate to and they've see far the so my obviously to a right out reach that's even something so which for to seekers that in And lot then, where like as say, before job of the you what proactive seeker And employers Apply that job first. the happening going the will them, apply sourcing, I shift is world recruiting please now, Invite fundamentally, That's really, our to go feature. effectively big employers applied is

those on that through That's to matching that the market, are in seekers have manifest solution. the best our candidates to algorithms available the a where candidates employer ZipRecruiter's of apply to list sees selected So invite job job. their is Apply employer and Invite curated to an opportunity has then advanced

has message thumbs-up to it ever. Job They ever. has seekers a ever response from rate apply, the it. we job sent applicant that we've they employer. just highest When rate highest that I an and any of message get quality seeker do love the any mean signals it collect other

fundamentally both a of it's marketplace really, love. sides So the solution where

sourcing on should who's general, ZipRecruiter, success you if say, massive saw and look of look you look of or hires most on couple percentage If data the hiring years post-and-wait the at from coming surge really of having you any last you because versus in the I source sourcing were at at a success the overall sort proactive traditional and approach. just proactive in that

spear happen. is lot terms is can a going, tip market we're where of like which it our at like feel the pushing focus, in we that's really innovation I hires of where is the fast make of and another how So way saying the of just we're

on We as and employers are hire process seekers for time a bringing down result making to job well. laser-focused this the for simpler as

Operator

question Sachs. from We with Goldman our will next take Sheridan Eric

open. Your line is

Eric Sheridan

asked. you've terms things array customers on industry broader much would perspective. we enterprise many of industry how of either SMB Appreciate to the indicators us things be your number what Maybe vertical you're from lagging the color in read into two versus could an give versus are leading might seeing? already vertical seen follow-ups have been That one. all across Any of supposed you color exposure? of that or How be

following then, on number up there. maybe just And Mark two,

some of of capture against so theme 'XX I done a the think Thanks you do to capturing have see especially come landscape through the sector mission-critical downturns, think to most market the see that us job when who 'XX? velocity. and the investments continue companies the to those they this market of in an going that when can to of time back 'XX make of much. What exiting addressable for invested long more you as exit so into dynamic,

David Travers

Thanks, This Eric. is Dave.

yes, do first, we a verticals variance industry of the on verticals. among see little So bit

the might expect, that is and well. on breakdown. then, on the seeing. terms reasonably strong the in we're of macro backdrop and to finance are weaker the care as other be As you of and stable particularly sensitive strong industry less health And technology actually side spectrum appears side of to is things, Retail

In spread pretty across. terms well geography, of it's

So growth marketing enterprise. year-over-year a the side, in growth across revenue than huge it there. from as we we SMB that the where comes the largely year, we we noted don't last more in we're had marketing stronger performance enterprises. from From And line seeing performance 'XX in but earlier, XX% in then had economy, variance see

the on investments the majority where those of the so within realm then, And R&D mission-critical is investment side, are. yes, mission-critical

better R&D Secondarily us to go an to on matching. sales the as area the invest team referenced earlier, that enable where say Ian the continue given faster and there. I side, momentum would that, enterprise to create is things we But

of seekers we in our pulling own parties from directly announcements. both from and more several tracking systems made job third and employers means applicant where that data So sources like

that XX us year. matches more better with algorithms generate last the allows integrations give us to partners key that with new bring matching ability there, million decisions About over and data to great to better make

as size go matching over expect grow of to time the marketplace gets I our both as up and sides of technology would both So better. number the that

human. making And then more finally, process the

bit of Ian making seeker the each have but individual So is and them a massive about for marketplace a job employer Phil, and this spoke are like just and they they receptacle search they a feel working are the for little but aren't opportunity. each user they that needs rather interface technology, piece for individuals’ for seen particular the that for companies individual

Ian Siegel

Yes. mission-critical I going want move I last Like year. tag investment, on about about I'm just enterprise. to just think add. I to XX% think obviously, that. to grew upmarket when at our into We ongoing work

have share a of we momentum. We lot penetrated haven't tremendous There's still market that yet.

going So balance prospects that I optimistic I about in enterprise. of over in remain our And even it XXXX. and SMB time, marketplace XX-XX growth are think between a our more spread we for to

Operator

take will We question JPMorgan. from next our Anmuth, Doug

open. is line Your

Doug Anmuth

I two. have

bit Just are performance. are. know a like you're than feel seeing the the less maybe what first on perhaps January down you I some across It is does broad-based industry.

enterprise SMB understand more purely the to or is going that's driven That's versus trying Just if view your that's one. else in mix, company-specific on? anything by there

mentioned on kind about a of just And think frame Anything there goal And that in time that in Ian, following just Thanks. second, you then point you'd terms of target XX-XX split. enterprise. split? to or reaching up you the

David Travers

Doug. Thanks, Yes.

about freezes another. about hiring for decline, year-over-year think at future. space dampened online we the outlooks how and heard of obviously, other job weeks layoffs in players heard of the past about we've large We've terms in talked couple the the So over

seeing. that trend is a So we're this

directly In industry-wide very the numbers look terms industry, this our be many looks what I we've to But us. points them. across of of phenomenon are quantum, believe the the across for we seen much data as an January-specific don't to and

concentration higher that's that SMB concentration our little coming the to XX% probably revenue is January an of going subscription from potentially who SMBs some than us model given our we'll see. acutely others think by slowdown bit side quarter last than the make more but a more from driven are enterprise-focused, feeling I And standpoint, mainly

continue is over in talent like we're changed next to outlook. the And economy market confident for that in outlook. our take that stabilizes about and where the the online a et COVID, is and importance long-term mission-critical And recovers. where again medium our and business. you'll extremely of growing prior We're to the you've feel is continue seen from cetera, long-term, we what next medium share feel going nothing has time great see finding employers in cycles But to a nothing in TAM from off-line their about as to to

after question to sophisticated, your a more our start only ability ability touch way. experience them it's fully us, people they're the That's our or and to purchase get different of than to where customers. them how being from started, To of here online SMBs in multi-touch I with already often our enterprise, speak brand more one core and do they build a about talking to marketplace to think enterprises XX-XX our drive is like something enterprise to in more

a only and motion we're than rather old years than couple as a that's more a getting So more for sophisticated. us. sales more of And old decade

team there. that As enterprises out large we go the increasingly and continue that to cover grow will

path XX-XX, given to current our customers will from but us, it what super near-term enterprise us and are who So is using momentum that to get the increasingly in it the the path there. we I don't is increasingly a think clear space, feedback makes

Operator

take We Young question next with our from Barclays. Trevor will

open. line Your is

Trevor Young

How the look longer employers? deleverage about signs. potential brand we from awareness start the jobs of among we light fact towards you you mentioned aided of think that to future revenue much lean gain once should of see How get that kind both as the Ian, you that just in those year think term one, potentially you line? this I a back have on back you in margin in going get marketing to seekers really First and recovery.

of approach capital And repurchases just light in generation? to in have still how the for then, allocation appetite headwinds? revenue you second you flow Do one, thinking about are 'XX cash share free given

Ian Siegel

we see And your headroom say the we again. I'll is our a and we take first buy. posture opportunistic when buying is growth for in that And lot I grow. there intend question. business still Ian This think that to to opportunity, remains a part of we that Well, expect this would of in

both a in where on The those so our of see for bigger of become fundamentally scenario just have our makes marketplace. a in both marketplace our company. a scenarios, we can healthy investment, in we we product marketplace are, bigger return we invest our to better that So we the for more the liquidity will maximum sides sides

it. at Dave, So that's look second how part? we you take do the want to

David Travers

Yes.

short-term deleverage recovery, from to pick up And to the willing revenue a sharper you'll more invest the it And growth Ian's is we exactly the generate outsized times faster And in of in more the rapidly. way. to profitability we in beginning very more to into invest and find will standpoint, be the of see some point. we'll lean that and So that decisive the best long-term. that the act we're often cycles more of that growth the when that one

our allocation, changed the And of of then in business. underlying our intrinsic nothing value has own about view of terms capital

buying not when for real our we'll at it. But to rates still gives strong when do us opportunity, a of free an Our and stock ongoing creates greater greater flow is our meaningful opportunity which own see strategy. share long-term to significant ability returns, cash part generate sense per of outsized continue over we time,

price now outstanding. $XX. of view XXX our million million So about that was shares. value year, under average We just And a The have bought over changed. we intrinsic has of nothing little obviously, over last shares XX

our and balance to Our generate ability cash exceptionally sheet strong. flow remains remains strong,

to aggressive be So our posture we when see an opportunity remains exceptional aggressive.

Tim Yarbrough

Tim. I'll add bit. Yes. And this just is on little a Trevor,

priority before, allocation, has We're funded. our our about been Just And capital comes and fully and it pulling on when tech roadmap to first is investment. sales and we're as talked back we fully priorities our organic marketing, to our still but product reiterate teams. funding

about. priority second like And in have remains returns is would shareholder for M&A process was that activities, structure going priority the be third steady as we then, the Our talked it and Dave there. on capital past. But dev a just

Operator

from And will Schackart last we our take William question with Ralph Blair.

open. is line Your

Ralph Schackart

flexibility of sales the And provides of going your through to, on XXXX? going margins. committed margins? I you sort environment, the I variable stiffen on model base to forward. is philosophically would question variable? of great. will lot first continue to which guess, a protecting Just is Obviously, But to macro you guess, I to guess, a marketing spend minimum be continue Or that need how are level that there, and carry is if you

question And we flat flat for recent a QX. of paid for Aaron's QX of Tim, I sort Tim. flatten sort Or of on in most be XXXX? should clarifying question, you employers to Would off expect QX then, about last just quarter? QX out step-down talked being that QX a and in the think to

Tim Yarbrough

Yes, point Ralph. clarify the first. second I'll

I Sequentially, employers QX QX be So we'd to roughly expect flat. be, would assumption. a paid to think, reasonable

we're we're specific other in targeting margins, your very we're how dollars. margins question focusing about much not necessarily, For bottoms-up but more our

we And behind opportunities so [Technical extent out pencil the that investment. that Difficulty], going be that to means there's to return see

to the able said sales we're structure. midpoint expense our operating our in how of guidance flexibility of That lot That's at before. primarily EBITDA year. I show margins flexibility like marketing, and XX% from comes this a There's

employer flexibility need we However, to more awareness when and brand it XX%-plus comes minimum both awareness of marketing, be it's brand sides seeker aided if spend, lot on expensive enjoy that already a build maintain than both is up we where and have to our because a less it invested job to There's of of marketplace. course, of amount down. it. and That's we've capital,

and brand well from having to massively without be there. long our going increase positioned investments So to that sales recognition I the think benefit run marketing we're over to

thing point by of to XXXX, down operating go the to our QX from we of took back is, COVID operating total you structure, if flexible The expense to expenses roughly say QX our I'll other XX%.

very need And so consistent with our ability have planning on to that don't we're not think I but doing that now, if we we right guidance quickly is necessary that. to. flex

Operator

this conference for your And ladies and gentlemen, thank participation. today's concludes you And call. we

You may now disconnect.

ZipRecruiter (ZIP) 21 Feb 232022 Q4 Earnings call transcript