ZipRecruiter (ZIP) investor relations material

Company evolution and strategic focus

• Transitioned from maximizing applicant volume to prioritizing quality matches using machine learning and AI.

• Current focus is on driving rapid engagement between employers and candidates to facilitate actual hires.

• Competes primarily with LinkedIn and Indeed, emphasizing brand strength and technology as key differentiators.

• Differentiates by acting as a matchmaker, enabling employers to proactively reach out to candidates and leveraging products like ZipIntro for fast video-based fit checks.

• Acquired BreakRoom to provide structured, job-relevant information for frontline workers, enhancing candidate experience.

Technology and AI investments

• Leveraged algorithmic and AI-driven matching for nearly a decade, outperforming traditional Boolean methods.

• AI now used to accelerate engagement between employers and job seekers, aiming to improve hiring outcomes.

• Internally, AI—especially large language models—boosts engineering efficiency and automates repetitive tasks, though human interaction remains vital.

• AI is expected to provide significant efficiency gains across departments, but not necessarily lead to large-scale workforce reductions.

Business model and market expansion

• Revenue currently split 80% SMB and 20% enterprise, with a goal to reach a 50/50 mix reflecting the broader U.S. economy.

• Offers flexible purchasing models: subscriptions for SMBs and pay-per-click for enterprises.

• Enterprise growth requires deep integration with third-party applicant tracking systems and competing for budget through agencies.

• Achieved 180 integrations and continues to build relationships to increase enterprise penetration.