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 at a 13% margin.

• Revenue per paid employer was $1,795, up 3% year-over-year, despite a decline in paid employers to 65,222.

• Job seeker traffic grew 21% year-over-year, outperforming competitors by at least 13 percentage points.

• The company acquired Breakroom, a UK-based employee review platform, in July 2024 for $13.3 million.

• Management continues to invest in product and technology to drive growth and marketplace improvements.

Financial highlights

• Q3 2024 revenue was $117.1 million, with Adjusted EBITDA of $15 million and a 13% margin.

• Net loss for Q3 2024 was $2.6 million, or a net loss margin of 2%.

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

• Paid employers declined to 65,222, down 27% year-over-year.

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

Outlook and guidance

• Q4 2024 revenue guidance is $107 million at the midpoint, a 21% year-over-year and 9% sequential decline.

• Q4 Adjusted EBITDA guidance is $9 million, or an 8% margin.

• Full year 2024 Adjusted EBITDA margin expected at 16%, in line with prior expectations.

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

• Growth strategies focus on AI, brand, global expansion, and deepening engagement with existing cohorts.