ZipRecruiter (ZIP) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $117.1 million, down 25% year-over-year, with a net loss of $2.6 million and Adjusted EBITDA of $15 million (13% margin), both above guidance.

• Revenue per paid employer rose to $1,795, reflecting a 14% CAGR since 2021, despite a 27% year-over-year decline in paid employers to 65,222.

• The company continues to invest in strategic initiatives, focusing on job seeker experience, technology, and AI-driven solutions, even amid a prolonged labor market downturn.

• Job seeker traffic outpaced competitors, with 21% year-over-year web traffic growth and 23% organic growth, supported by brand, AI, and product innovation.

• Over 4 million businesses and 150 million job seekers have used the platform since inception, with nearly 40 million Great Match candidates delivered in 2023.

Financial highlights

• Q3 2024 revenue was $117.1 million, a 25% year-over-year decline, with net loss of $2.6 million and Adjusted EBITDA of $15 million (13% margin).

• Paid employers in Q3 2024 were 65,222, down 27% year-over-year and 7% sequentially.

• Revenue per paid employer increased to $1,795, up from $1,677 in Q3 2023.

• Cash, cash equivalents, and marketable securities totaled $498 million as of September 30, 2024.

• Gross margin remained strong at 89% for Q3 2024.

Outlook and guidance

• Q4 2024 revenue guidance is $107 million at the midpoint, a 21% year-over-year and 9% sequential decline, reflecting continued labor market softness and seasonal trends.

• Q4 2024 Adjusted EBITDA guidance is $9 million (8% margin); full-year 2024 Adjusted EBITDA margin expected at 16%.

• Operating expenses are expected to decrease slightly in Q4 as marketing is moderated.

• Management anticipates the end of the 'Great Stay' as a future tailwind for hiring activity and remains nimble for 2025.

• The company believes existing cash, investments, and credit facility are sufficient for at least the next 12 months.