ZipRecruiter's Q2 2025: Navigating Contradictions in Labor Market Trends and AI's Impact on Hiring

Labor market stability and hiring trends, AI impact on job seekers and employers, labor market recovery and stabilization, influence of AI on job seeker traffic, and AI impact on job market and employer hiring are the key contradictions discussed in ZipRecruiter's latest 2025Q2 earnings call



Stabilization and Growth in Paid Employers:
- QPEs (Quarterly Paid Employers) grew sequentially since Q4 2024, with QPEs increasing from 63,500 in Q1 2025 to 66,300 in Q2 2025.
- This stabilization and growth are a sign of early momentum despite a soft labor market, resembling pre-COVID seasonality.

Revenue Stabilization and Sequential Growth:
- Q1 2025 revenue was $110.1 million, down 1% sequentially, with Q2 2025 revenue growing 2% to $112.2 million.
- The stabilization and sequential growth are attributed to increased hiring activity and improved engagement between employers and job seekers.

Innovation in Product Offerings:
- Enterprise customer adoption of ZipIntro increased by 90% quarter-over-quarter, with interviews more than doubling.
- The adoption of AI-powered tools like ZipIntro, Breakroom, and AI matching technology streamlines the hiring process, enhancing user experience and driving growth.

Macroeconomic Challenges and Strategic Investments:
- Despite macroeconomic challenges, ZipRecruiter maintained adjusted EBITDA profitability and invested in product and technology.
- The company's flexible business model and strategic capital deployment enable it to adapt to changing hiring environments while preserving long-term goals.