In This Article:
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Revenue: $110 million in Q1 2025, a 1% sequential decline and a 10% year-over-year decline.
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Quarterly Paid Employers: 63,000, representing an 11% year-over-year decrease but a 10% sequential increase.
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Revenue per Paid Employer: $1,734, up 2% year over year and down 10% sequentially.
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Net Loss: $12.8 million in Q1 2025, compared to a net loss of $6.5 million in Q1 2024 and $10.8 million in Q4 2024.
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Adjusted EBITDA: $5.9 million in Q1 2025, with a margin of 5%, compared to $20.8 million (17% margin) in Q1 2024 and $14.4 million (13% margin) in Q4 2024.
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Cash, Cash Equivalents, and Marketable Securities: $468 million as of March 31, 2025.
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Share Repurchase: 4.6 million shares purchased, totaling $27.4 million in Q1 2025.
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Q2 2025 Revenue Guidance: $111 million at the midpoint, a 10% year-over-year decline but a 1% quarter-over-quarter increase.
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Q2 2025 Adjusted EBITDA Guidance: $7 million at the midpoint, with a 6% adjusted EBITDA margin.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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ZipRecruiter Inc (NYSE:ZIP) reported a 10% sequential increase in quarterly paid employers, marking the highest Q4 to Q1 growth since 2021.
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The company achieved Workday-certified integration status, enhancing its reach among top enterprise companies.
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ZipRecruiter's new features, such as ZipIntro and next-generation resume database improvements, are driving increased employer engagement.
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The company has a robust balance sheet with $468 million in cash, cash equivalents, and marketable securities, providing financial flexibility.
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ZipRecruiter Inc (NYSE:ZIP) is poised for growth with strategic investments in technology and product development, preparing for a labor market recovery.
Negative Points
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Q1 2025 revenue of $110 million represents a 10% year-over-year decline.
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Net loss increased to $12.8 million in Q1 2025, compared to $6.5 million in Q1 2024.
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Adjusted EBITDA margin decreased to 5% in Q1 2025 from 17% in Q1 2024.
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Revenue per paid employer decreased by 10% sequentially, reflecting seasonal patterns.
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The macroeconomic uncertainty is causing a cautious outlook, with no acceleration in hiring activity observed as of Q2 2025.
Q & A Highlights
Q: Is the wait-and-see attitude among employers widespread across geographies and verticals, or is it more focused on specific areas? A: Ian Siegel, CEO, explained that while macroeconomic uncertainty is increasing, internal data shows that employers have not yet pulled back on hiring. Employer activity remains consistent with trends observed at the start of 2025, informing their guidance and outlook for achieving year-over-year growth in Q4 2025.