In This Article:
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Revenue: $117.1 million, down 25% year over year.
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Net Loss: $2.6 million, equating to a net loss margin of negative 2%.
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Adjusted EBITDA: $15 million, with an adjusted EBITDA margin of 13%.
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Quarterly Paid Employers: 65,000, a 27% decrease year over year.
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Revenue per Paid Employer: $1,795, up 3% year over year.
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Cash, Cash Equivalents, and Marketable Securities: $498 million as of September 30, 2024.
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Q4 Revenue Guidance: $107 million at the midpoint, a 21% decline year over year.
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Q4 Adjusted EBITDA Guidance: $9 million at the midpoint, with an 8% adjusted EBITDA margin.
Release Date: November 06, 2024
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) exceeded the high end of guidance for both revenue and adjusted EBITDA in Q3 2024.
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The company has seen a 13% year-over-year increase in job seeker traffic, outperforming its largest competitors.
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Zip Intro, a new product, has been fully launched and is gaining strong traction, with employers receiving over three times more quality applications per job.
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The new resume database has shown a 20% increase in average weekly candidate profile unlocks since its launch.
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ZipRecruiter Inc (NYSE:ZIP) maintains a healthy balance sheet with $498 million in cash, cash equivalents, and marketable securities as of September 30, 2024.
Negative Points
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Q3 2024 revenue of $117.1 million represents a 25% decline year-over-year, primarily due to reduced demand from SMBs.
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Net loss in Q3 was $2.6 million, compared to net income of $24.1 million in Q3 2023.
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Quarterly paid employers decreased by 27% year-over-year, reflecting reduced demand and labor market volatility.
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The company anticipates a 21% year-over-year revenue decline in Q4 2024, indicating continued labor market challenges.
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The prolonged downturn in hiring activity, similar in duration to the 2008 recession, continues to impact ZipRecruiter Inc (NYSE:ZIP)'s performance.
Q & A Highlights
Q: Can you provide insights into the verticals ZipRecruiter serves and any notable trends? A: David Travers, President, noted that ZipRecruiter's business reflects the overall US economy without concentration in any single sector. Healthcare remained robust despite some softness, while transportation, storage, travel, and leisure showed weaker performance. Early cycle verticals like finance and technology, which initially showed weakness, were in the middle range of performance.
Q: How are enterprise customers performing compared to SMBs? A: David Travers highlighted that enterprise customers were more robust than SMBs, with performance marketing revenue from enterprises increasing to 22%. This growth is attributed to hiring needs in sectors like healthcare and effective execution by ZipRecruiter's teams.