The earnings call presented a mixed outlook. While ZipRecruiter demonstrated notable successes in job seeker engagement and product innovations like ZipIntro and the resume database, these were overshadowed by significant revenue declines, net losses, and challenges faced by SMBs, which are major contributors to their business. The company's guidance for Q4 also suggests continued difficulties in the labor market.

Company Guidance

In the Q3 2024 earnings call, ZipRecruiter provided guidance for the fourth quarter, projecting revenue of $107 million at the midpoint, reflecting a 21% year-over-year decline and a 9% decline quarter-over-quarter. This guidance accounts for the continued protracted downturn in the labor market and anticipates a seasonally softer Q4. The company expects an adjusted EBITDA of $9 million at the midpoint, which translates to an 8% adjusted EBITDA margin, consistent with their strategy to moderate marketing expenses during this period. For the full year 2024, ZipRecruiter anticipates an adjusted EBITDA margin of 16%, aligning with their low to mid-teens margin target. Despite the challenging market conditions, the company remains focused on strategic growth drivers and is poised to leverage its healthy balance sheet and flexible operating model for future recovery in hiring activity.

Job Seeker Traffic Growth

ZipRecruiter's web traffic grew by 21% year-over-year, which is at least 13 percentage points more than any of its largest competitors, indicating strong growth in job seeker interest and engagement.

Launch and Success of ZipIntro

ZipIntro fully launched to all subscription customers in Q3, leading to over three times more quality applications per job and a significant increase in adoption after the initial rollout.

New Resume Database Rollout

The next-generation resume database launched in Q3 saw a 20% increase in average weekly candidate profile unlocks, enhancing employer access to qualified candidates.

Strong Enterprise Customer Performance

Enterprise customers demonstrated more robustness compared to SMBs, with performance marketing revenue from enterprises increasing to 22%.

Adjusted EBITDA Performance

Adjusted EBITDA was $15 million, equating to a margin of 13%, exceeding the high end of guidance and showing resilience in a challenging market.

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ZipRecruiter (ZIP) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

ZIP Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
May 17, 2021	2021 (Q1)	- / 0.10	―	―	―	―
Aug 12, 2021	2021 (Q2)	-0.20 / -0.55	0.195	-382.05% (-0.75)	―	―
Nov 10, 2021	2021 (Q3)	-0.02 / 0.17	0.212	-19.81% (-0.04)	―	―
Mar 01, 2022	2021 (Q4)	0.10 / 0.16	0.483	-66.87% (-0.32)	―	―
May 11, 2022	2022 (Q1)	<0.01 / 0.07	0.1	-30.00% (-0.03)	―	―
Aug 15, 2022	2022 (Q2)	0.06 / 0.11	-0.55	120.00% (+0.66)	―	―
Nov 09, 2022	2022 (Q3)	0.12 / 0.17	0.17	0.00% (0.00)	―
Feb 21, 2023	2022 (Q4)	0.09 / 0.17	0.16	6.25% (+0.01)	―
May 09, 2023	2023 (Q1)	-0.02 / 0.05	0.07	-28.57% (-0.02)	―
Aug 08, 2023	2023 (Q2)	0.08 / 0.14	0.11	27.27% (+0.03)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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ZIP Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 06, 2024	$9.93	$11.10	+11.78%
Aug 07, 2024	$7.25	$8.24	+13.66%
May 09, 2024	$10.81	$9.59	-11.29%
Feb 22, 2024	$13.79	$12.96	-6.02%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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