ZipRecruiter (ZIP) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $123.7 million, down 27% year-over-year but up 1% sequentially, with net income of $7.0 million and Adjusted EBITDA of $27.8 million (23% margin).

• Revenue per paid employer was $1,755, continuing a multi-year trend of increasing value delivered to employers.

• Quarterly paid employers totaled about 70,000, reflecting a 31% year-over-year decline due to reduced SMB demand.

• Investments in product and technology, including AI-powered marketplace and new product launches, drove growth in job seeker traffic and product innovation.

• The company maintains #1 ratings for its job search app and employment site in the U.S., with over 80% aided brand awareness among employers and job seekers.

Financial highlights

• Q2 2024 revenue was $123.7 million, with Adjusted EBITDA of $27.8 million (23% margin) and net income of $7.0 million (6% margin).

• Revenue per paid employer increased to $1,755, up 5% year-over-year and 3% sequentially.

• Cash, cash equivalents, and marketable securities stood at $523 million as of June 30, 2024.

• Operating expenses decreased across all categories, reflecting lower headcount and reduced marketing spend.

• Gross margin remained strong at 90% for Q2 2024.

Outlook and guidance

• Q3 2024 revenue guidance is $112 million at the midpoint, a 28% year-over-year and 9% sequential decline.

• Q3 2024 Adjusted EBITDA guidance is $10 million at the midpoint, or a 9% margin.

• Management remains cautious due to recent softening labor market trends and expects continued macroeconomic headwinds.

• Plans to maintain long-term investments in product, technology, and marketing despite market volatility.

• Focused on strengthening AI-powered technology, expanding the employer and job seeker base, and optimizing performance-based pricing.