ZipRecruiter, Inc. ((ZIP)) has held its Q3 earnings call. Read on for the main highlights of the call.
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ZipRecruiter’s recent earnings call presented a balanced sentiment, reflecting both achievements and challenges. The company celebrated significant strides in enterprise strategy and performance-based revenue growth, alongside promising developments in generative AI traffic and quarterly paid employers. However, these positives were tempered by a decline in overall revenue and a reported net loss, painting a nuanced picture of the company’s current standing.
Performance-Based Revenue Growth
ZipRecruiter reported a notable 12% quarter-over-quarter growth in performance-based revenue, marking the largest sequential increase in over three years. This growth underscores the company’s successful strategies in enhancing revenue streams, despite broader financial challenges.
Enterprise Strategy Success
The company saw a 19% increase in enterprise customer adoption of automated campaign optimization quarter-over-quarter. This uptick has driven stronger campaign performance, highlighting the effectiveness of ZipRecruiter’s enterprise strategies.
Generative AI Traffic Increase
Site visits from generative AI models surged by 140% sequentially, showcasing a burgeoning channel of job seeker traffic. This development indicates ZipRecruiter’s innovative approach to leveraging AI for expanding its user base.
Quarterly Paid Employers Growth
The number of quarterly paid employers reached 67,000, marking a 1% sequential and 3% year-over-year increase. This represents the first year-over-year growth in this metric since Q1 of 2022, signaling a positive trend in employer engagement.
ZipIntro Momentum
Enterprise customer interviews and scheduled sessions increased by 80% sequentially, building on a previous 90% growth in Q2. This momentum highlights the growing traction of ZipIntro among enterprise clients.
Revenue Decline
Despite these successes, ZipRecruiter faced a 2% year-over-year decline in revenue, totaling $115 million for Q3 ’25. This decline reflects ongoing challenges in the company’s financial performance.
Revenue Per Paid Employer Decrease
Revenue per paid employer fell by 4% year-over-year to $1,717 in Q3 ’25. This decrease indicates a need for strategies to enhance revenue generation per employer.
Net Loss
The company reported a net loss of $9.8 million in Q3 ’25, highlighting financial hurdles that ZipRecruiter must address moving forward.
Forward-Looking Guidance
Looking ahead, ZipRecruiter projects Q4 2025 revenue between $109 million and $115 million, with a midpoint suggesting a 1% year-over-year increase. This would mark a return to year-over-year revenue growth for the first time since Q3 2022. The company anticipates a 3% sequential revenue decline due to typical seasonality and a subdued macroeconomic environment. ZipRecruiter expects an adjusted EBITDA midpoint of $14 million, implying a full-year 2025 adjusted EBITDA margin of 9%, surpassing previous expectations.
In summary, ZipRecruiter’s earnings call painted a picture of both progress and challenges. While the company made significant strides in enterprise strategy and performance-based revenue, it continues to face financial hurdles with declining revenue and a net loss. The forward-looking guidance offers a cautiously optimistic outlook, suggesting potential revenue growth and improved EBITDA margins in the coming quarters.