ZIP - Earnings call transcript Q3 2024

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Operator

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to ZipRecruiter, Inc Q3 2024 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. would Haroldson, to Investor you. I over the Thank Andrew to Relations. Instructions] now turn like call [Operator Andrew?

Andrew Haroldson

Thank you, which operator September quarter joining ZipRecruiterâ€™s us XXXX. and for XX, good afternoon. our performance for conference Thank XXXX earnings and call the quarter during the we guidance discuss in will ended you fourth for

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

this uncertainties please statements be ZipRecruiter. subject reminded that to to made the statements and/or are risk materially and differ Actual materially found XXXX, to website be September the of forward-looking begin, any developments forward-looking ended to from in Form ZipRecruiterâ€™s today update future our in risks result as results discussion no A differ from on investor them, as of of in factors those or in of we statements. and report a call in can the of relating could performance or website. The ZipRecruiter the and new events obligation whether today, could future XX-Q quarter for that anticipated actual forward-looking Before financial assumes otherwise. the forward-looking current some quarterly these conference which results cause SECâ€™s are expectations available revise based is XX, statements

XX-Q. And as GAAP will over ZipRecruiterâ€™s non-GAAP In in metrics results. addition, not during for Ian. isolation turn should letter the included to metrics call substitute measures financial These considered I of Form to are in non-GAAP we be addition Reconciliations will the measures. today's non-GAAP from , our a and call or financial the in now to nearest shareholder discuss GAAP in

Ian Siegel

XXXX above adjusted to QX to Net of us an margin the afternoon net $XX in EBITDA and negative revenue loss year-over-year. downturn. both good navigate $XXX.X revenue was QX In and guidance. the everyone continues XX%. Notably while $X.X end equating joining and protracted adjusted of to X% was EBITDA of million was XX% labor you, million, came down market a margin a ZipRecruiter high EBITDA today. in in Thank loss of adjusted quarter million,

that We with drive for continue alike. seekers ROI and will strategic strong a success initiatives to financial ZipRecruiter believe positioning with investing we in strength job balance employers

While are our winning share to on been we share focused via ways there with a seekers job many search measure job in market acutely superior industry, experience. have

proven our more grown Our strategy at year-over-year in largest around of percentage technology seeker XX has than job has any competitors. points effective product traffic ZipRecruiter and QX as least

investments in seeker our matching advisor Our trust employers advancements follow brand, firmly fill, believe played multi-year in with AI winning a all job shifts share activity. market the on have with revenue job with role seekers. will We loyalty career and that overtime and driven from technology focus

While lowest of is of more great distinct each hiring downturns at in reduction measures since approaching This month XXXX Seasonally, market the currently a churn August with XXXX. Further, prolonged stay jobs as employed further employee every of declines hiring cycle continues duration declined labor driving by is leaving year-over-year the in in is same several pandemic. persistent rate onset recession the their the COVID the the down the of excluding since levels. this adjusted basis on XXXX, is activity. have hires the which one hiring

a effective of period. stay and investing has recover, that in long-term our duration technology confident the tailwind. Despite and of our marketplace the environment, remain We and their proven improved see when of cycles. better this fit We a difficult during decline, candidates hiring hiring nimble, businesses market activity opening will the in health find supply job intently resume Dave? progress operating philosophy is macro economic of the greater for our of to the mission Dave remaining connecting responding product labor while tools to with labor are over great exactly focused opportunity. With to that, on hiring will predict to believe great as call strategies. we I through on of our experience the the much they a people to market the US it growth great actively review a future their now While end turn to will when next

David Travers

each afternoon. strategic Ian three QX quarter pillars. and toward execution was out good another you, Thank strong of of building our

for confirm the rollout qualified helps is minutes saying connections over quarter strategic and to initial most revenue in to personal of per The saw talk pillar and in paid more candidate were an After the increase highlighted database, hiring, where to of search in over three the the three seekers employers subscription right contact marketplace. in unlocks ZipIntro. our cutting launch them the results receiving traction generation faster filtering times of The this smart with accelerate of for speak of is their first job initial after face XX matching And capabilities, find application customers applications an continue the seeing rollout. In over adoption ZipIntro. ZipIntro instant unlock launched back before the qualified more minutes. launch fresh early fully also of value dating x employers QX, generates average the exceptional, we they're management we job to again. ZipIntroâ€™s product ZipRecruiter' And new to info back speed use Last then launched in for the a to XX% to the to can to likely we ZipIntro QX. face in edge an and to resume XX% employers profile essentially number employers utilizing ZipIntro seekers qualified ZipIntro brings jobs love access hiring in resume with and time employers next the gained over our Our all quality under experience. results for and unlocks in marketplace. candidates over pick with increase interview next of video. Employers database candidates, In ability the a per employers first first contact info employer which candidate week our resumes ZipIntro, for features With tools. and candidates. strong full product launch and This stages workflow day. candidate increase received searching has XXXX. weekly to compared the technology

in our second our of the job Turning to marketplace. increasing seekers pillar, number

in investing mentioned, dollars. job market revenue by experience, As have activity will Ian we that in seeker employer shifts our job followed belief into seeker heavily shifts given market be share the been share

this year. gains Our

increasing continued. points employers. Notably total job In product job have green ZipRecruiter meaningful to at employers their seeker web effective competitors. in year aim hire believe jobs. These the traffic is seekers database by job a traffic smarter It largest US QX brand, investment than and their of In our web is QX, our organic will a in as XX% growth fast. We their to of advisor least are seeker like seekers applicant the call XX% career makes the job employers. I'll turn job similar that increase by our with total seekers that of measured This search multi XX%. notifications experience. AI shortly been as result update the rolled includes a we at these financial any relevant more an job based which the saw seekers organic and technology. We that grew applications job also year-over-year, ultimately clicks more feature by of with rich next making gains We posted, resume data For now increasing email it job job review a profiles an a likely resumes, who employer work technology photo, highly have Phil for the and easier a create valuable the improved resume their seeker's value results history, make helps for improves Tim. or to to products the from up notifications and believe we quickly engagement be several to information backgrounds. third about notifications posted matching present XXX% resume to product education their applications matches in using data jobs QX, by to add details driving easier Tim, pillar, employers. In pull build improvements populate from email result for a over out email sales XXX%. I'll that they creating delighting and and those populate making both to making better we by jobseeker Powering comprehensive guidance seekers and and how improvement and algorithm. best it for More their for seekers and job provide rolled other to it more content out job their profile, profiles our newly job send job after generation their conclude make overtime. we've profile date seekers profiles to for to and out enhance maintain emails upload hired more. We and review skills from we and update

Timothy Yarbrough

and afternoon good Dave you, Thank everyone.

Our in by $X.X in compared and sequential declines volatility in with QX of XXXX, margin of primarily reduced decreases demand represents margin in with of the were $XX.X revenue. Net sequentially. and equivalents securities quarter-for-quarter the was and $XXXX. and equating to increases the a market. Revenue as was XXXX demand XXXX. primarily employer decreases from a decrease while X% $X XX,XXX, per from were QX million in revenue and are year-over-year reduced XXXX. Net driven of and quarter-for-quarter XX% uncertainty QX QXXX operating market. Quarterly and QX Employers to XXXX. revenue XX% QX a was year-over-o of due $XXX.X subscription $XX.X EBITDA from continued year-over-year net of Cash, paid. XXXX million income QX XX% cash net The margin and of XXth a labor compared year SMBS and sequentially. mix million to third driven XX% due were million to the and of reflective marketable $XXX quarterly to loss declines, expenses. X% decrease slight uncertainty SMBs shift representing the volatility quarter higher performance revenue Up adjusted and $XX.X was continued primarily up X% income labor year-over-year million by The in XX% a decreases XXXX paid a are employers paid $XX income year-over-year, of versus and revenue September decline million, million, in to million adjusted

continuation XX% decline Moving while reflects on our and revenue a million QX. prolonged our year-over-year $XXX the a at QX represents downturn, decline a quarter-over-quarter year-over-year softer quarter-over-quarter. the represents the midpoint decline a seasonally X% expectation The decline labor XXXX of to guidance of guidance market of

midpoint the implies soft at Our guidance adjusted million for sequential a XXXX a On moderate we an EBITDA basis EBITDA decrease X% a this as QX to adjusted or slight marketing $X seasonally is margin. expenses operating period. during

of margins guidance within year mid-teens. to we the adjusted the implies in adjusted Our beginning XX% XXXX a fourth quarter EBITDA low outlined year full the at and off leveling margin of the expectations EBITDA

enter we challenging finish of unchanged. prepared balance flexible scenarios, As healthy to and adjust range wide and nimble maintains and operating sheet remain market remains We ZipRecruiter operating model. a while are a XXXX philosophy XXXX, and our uncertain., to a remains quickly labor the

positioned that, questions. now remain ready recovery growth Operator? hiring in our and are to for We well activity. With open line the and drivers investing continue strategic can we for

Operator

Schackart from question-and-answer the [Operator your We line comes William question begin Blair. open. with now Ralph, now the will Ralph Instructions] session. line your of And is first

Ralph Schackart

else, those a color it First anything verticals you're softness that or verticals the seeing or and add give pockets there any the early you be in cycle serve, then any maybe early terms then saw just strength of call follow-up? could I initially anything can David the cycle of highlight, on you that that verticals technology out just question you'd you a have

David Travers

Yeah, thanks Ralph. Yeah.

softness in terms looks particularly our as a despite is one has the in verticals a of that so whole. chunk at robust time, not So the concentrated of sector way and a like care economy, long healthcare of a looking significant, But fairly case representative saw verticals verticals, in compared remained we're for we obviously, to isn't the the other economy. business been as economy US whole health

in softer being early the would mid on which that XX. and those notable stronger saw things spot performance. And saw bright side of weaker side between technology travel particular weakness like on was storage, the verticals weaker terms ledger you of the leisure where the negative the health side. and beginning know and where we and in of in back transportation you particular, being They the saw So I on the about, the in things in is storage of book transportation, more on then downturn finance being talked care middle, we say little were this very at we bit a ends of

Ralph Schackart

be Just customers? you continue SMBs like you're what just on if from a follow-up sounds cyclically so update seeing to can your an challenged, enterprise get

Ian Siegel

Yeah.

to our areas a major quarter. as mentioned shortages I areas I'm needs we've part. nurses represent structural go has difficult customers as is our really up Enterprise combination on like been driven What our by from ticked couple is here there little potential and by enterprise fact continue execution long look the revenue were So SMBs but that strong And pleased also than enterprises. hiring a seen optimism market the for care in our of have very a that what really still which robust good doing, some centers environment terms of a there comes XX%. is things got growth we've a less performance marketing, more evidenced that bit the as of we're way enterprises to customers percentage the roughly with enterprise optimistic customers there and with particular at were we're of what that further where the in that opportunity we like in of the execution XX% than in us teams to years, for medical of during health remains XX% like

Operator

from of line comes Josh Josh now your question UBS. with the open. next Your line Chan is

Joshua Chan

color remarks would open and but kind in will the end know know if what you question unfold. wondering, guess day. was it's, just how ended mentioned of I any any view house it great I you on I appreciate there's to that there. cause

Ian Siegel

have of definitely as Yeah. a where is students substantial are row question. Ian our and year-over-year basis for declined Hey, labor the This the a enter of thanks hires and in a market we just in a what from portion on we that months they substantial the the fundamentally are quitting portion much coming is And decline the that fact, overall did. in people previously US. is than drives hiring of that fact lower a rate at XX

month, If to back was you if of look under it was you rate go most X%. quit the January And XXXX, the X%. recent at

of salaries, record than extremely either even top are things market combination there from people causing more included by and of it stay. the perks, falling of a rehiring And A people seems opening are that to now of rates. bonuses got further economy it's So or when like post-COVID home And benefiting low in of then a lot number lot a one-third. above people are was factors that into at the benefits. market up including jobs like interest back

at, or its the be to and And the work resume. through way pattern so economy is with hiring if where and here to to going you were steady-state everybody a the normal the as to and a and a future is normal. time go in you resume we economy term I system more This will believe those duration would our for what that are see of were will starts came think here. returns in ask hiring to look to previous best that we to XXXX entering back there back you to is that questions the there over balanced bet recession, period going like labor go house close that XXXX you territory more the record were structural natural say of the recessions, a health of the ask internally of US at look this And view long will in just to the is particular been every terms we if has of the recession. that in you we to change

David Travers

on add to to Just that.

quit this seeking that huge Dave, much portion of rate quitting activity. The is a the other -- about is would thing the dropped so having say people I job is

XX basis strength the any the for us an points competitors makes gain seekers, and outperformance feel And large growth or with about relative on of about of been that talking we've that performance, of both job so absolute our quarters stronger in the percentage which context, several of now. seen we've even share

Joshua Chan

follow question Dave. And market a then seasonally. about -- a maybe every I with the that understand labor the up can QX guidance bit slows down QX, little

slowdown that So amount in you any QX typical a I guide color of just your wondering was could mind, there. seasonal does give wondering, just content

Timothy Yarbrough

takes be One a market that labor would Hi, that we things. the expect to decline, a but decline and pattern, the Josh. X Yes, be SMBs be account Tim. This would would also soft. guide that QX typical seasonal more is into still from remains recognizing primarily

dynamics it And of takes consideration. into so those both

Joshua Chan

you, QX. Thank time. Good in thanks, and your everybody, Tim, for luck

Operator

Your next Doug, Doug line your question is now Anmuth comes of open. from the line with JPMorgan.

Maggie Hoffman

on is the the wondering any there taking the in can for This Breakroom about more think Doug. how you Maggie the then US? broadly over out for products question. was I as provide we just and of sort And monetization around features there's you timeline Thanks if should Hoffman roll color maybe opportunity the launch time? of for new just

David Travers

Maggie. Thanks, Yeah.

months the very we a Breakroom, the we're few into ago acquired excited over about we to continue months integration a So obviously summer. be since few them

First a of They're young they're great all, UK. business. performing in the

the where US. material employer in and see side, is the this both underway Breakroom on our and side, they're well in work So we launch growth portion on they're But point. at where building well know it's revenue job the a not strong to very seeker of performing you UK the

comes several done that look XXXX the So you and that's in launch to we in forward updating the know on been as you US. that of together components work already have

Ian Siegel

I new this will Ian, -- then, just And add will products. I on

We already have products Resume that new is multiple been new deployed. One have Database. the

a cognizant the that are of like ZipIntro. this which these is is we're meeting do the And monetize also the number and with then we in are to it, over try we're I to full that both a feedback course XXXX, from other we many they hit in now revenue, in about delivering, be need products, over providing. value and and of phase of the again getting the customers. what what And of now, it. requests. they is -- are But overly like not we market are that material value going of is the over played year results. over pattern right we the our We're value about have feature the The contribute the maximize strong customers years, to but really think products those to they And we and what will are new has contribute situations we business maximization magnitude out is our that getting

However, just satisfaction. we to the these overall we of which to be time, first an be many. part portfolio of just customer be And contributors. And innovations, out, think we bringing of are our it material and them larger will larger are over expect should what

we And on we also and we particularly and focused fully towards are seekers acquiring that for for are our once employers. working that have on So site very value experience the monetizing improving value. really job deployed,

Operator

now James. [Operator with Glenn, your your Glenn is Instructions] comes the Shell line open. line Raymond next question of from And

Glenn Shell

thinking wondering to balancing how you just maintaining about profile. for mid-teens was margin investments I are low

Timothy Yarbrough

Yes.

been a environment it respond changed. and couple in pretty of that as environment the for hasn't really comes. the dynamic we -- We've philosophy our So to years, last

to year. year, the the adjusted back of the trends especially trend flat relatively over be of towards end we've front so accordingly. year, this And then seen to towards we've soften course And that and the start the of part hiring

lens we're margins we quarter's So primary long-term any that over to in in of year But terms But mid-teens, the provided the year, not of the that all or of performance. to with course single long. doing That's the performance. low in in that we consistent delivering response direction use. feedback the we're

Glenn Shell

do employer obviously job really see that? I conversations, time. traffic more good coming better from matching What we momentum if you like have growth. progress this tailwinds then, one whether anything have new you're And follow-up making seeker on

David Travers

Yes. This is Dave.

So, obviously, zoom all on front our marketplace job but two way out, side We the a here. marketplace. that the the the employers we're job sided seekers employer are monetize brings foundational on the of entirely to element seeker

of to grow to that the competitors, keeping matching to we on proposition to and front possible month retention business absolute the to happy, intent makes customers very, come indicator, now gives compounding keeping hiring of market customers the businesses seeker case And a our everything this in as future major which lot changes. dollars that the the trend their by but of or is business, has enterprise customers hiring case move move space better, in as us needs as space not small share. only job fastest keeping employer return as robust we number been growing month as relative job as job keeps preceded the share work highest as seeker very line and value their new robust from the seeing in job view a major So confidence needs. In the back and that forward-looking grow of our our in acquisition our we're the of but optimistic technology in our their it's of seeker destination single business jobseeker possible. of us it's terms in in for online history the of environment makes And macro momentum this market job every revenue being as a

Ian Siegel

of been of reality is seekers. that see market for we measure Ian. and not the in where employers. years the peers. hiring is steady we over successful how job job just year most in with just confronted by place we an seeker two our with The the have the in marketplace every is in last say apparent And player in of not but one is space feel traffic increase we improving I would environment from where have winner demand steps can how where And reduced to quarter, recruiting the share is fight been all relative our a the made disproportionate in the I this clearly think

Glenn Shell

back should into side, we that is employers that are And models? growing then employer said marketing to you're you without more our factor ZipRecruiter some the a that And How on trend effort. that seeing? coming a

David Travers

so great Yes, question.

brand extremely excited driving above the seeker employer on the side and marketplace. we're So, both XX% about awareness of job the

So start major that's you a over in little go forward. a we a the we said from been standing ago decade know we're as this see of a that a to early significant as where marketplace. investment. stages in today we growth we And believe are asset ongoing That and building still being

So bit I over significant a are every needs back see that as to true invest small numbers segment do in needs that we continue especially us hiring time often that little cohort come their in plan But mentioned that brand. back. of hiring intermittent. where earlier to business And to we single that's their come

If five not you're you single it XX every employees, have necessarily second. hiring or XX or

in job mind where is so us and so is being brand for staying critical of mind searches top top of And and having awareness important. that's between

current kind down you -- we've continue cross marketplaces, as that, their confidence reaching our studied businesses and every two what virtually a to we're single studied of cycle. But very business, decade seeker over going And times. no jobs online as formula life marketplaces countries, our job to is online in and you know often us current we're year this other our have every age know in and high marketing it seen we've gives with time invest as there's multiple the but as come that. given scale at of messaging into that studied awareness, job single sales in already and marketing brand employer magic in So we've we've at other

scale the our we because long we revenue, have as going on revenue as the our adjusted so is to reason go not we're EBITA to have to market target scale scales. term XX% in confidence And side

Ian Siegel

And really back about certain the I that careful having yet the But when postcovid we marketing top were of becomes recovery advantage and when into go we name to without money not spending have come back we as dollars, of really appreciate being saw manifested add of mind where the increasing recognition that business brand the would said organic if it of still because a operating to that's investment apparent just on the surge persistence demand Dollars we recovery. so you hiring leverage is to or steadiness marketing. in were initial much.

I employers of America So most should ready for mind answer positioned obvious job? we're Zip like post of as a recruiter top still well think to the in my go of one is solutions. where I the is

-- that's a in real real where that's demand So a scenario advantage increase. hiring the we see start to

Operator

joining. for time this and all call. today's There's you question concludes Thank at no further that

You disconnect. may now

ZipRecruiter (ZIP) 6 Nov 242024 Q3 Earnings call transcript