What guidance did ZipRecruiter's management provide for the next earnings period?

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What does ZipRecruiter do and what are its main business segments?

- **Revenue Resilience**: Q3 revenue of $115M exceeded guidance, with first YoY growth in paid employers since 2022, driven by enterprise AI tools adoption.
- **AI Growth Engine**: Generative AI visits surged 140% QoQ, with ZipIntro enabling 80% QoQ growth in enterprise interviews.
- **Profitability Signal**: Q4 guidance shows +1% YoY revenue growth and stable margins, with $411M cash to fuel strategic investments.
- **Long-Term Vision**: Targeting 30% EBITDA margin through high ROI product innovations like Breakroom (10K employer profiles, 1M ratings) and generative AI optimization.

**【CEO Summary Section】**
- Q3 2025 revenue of $115 million exceeded guidance, with sequential growth of 2% despite a 2% year-over-year decline. This marks the first year-over-year increase in quarterly paid employers since Q1 2022.
- Enterprise strategy success: Performance-based revenue grew 12% quarter-over-quarter, the highest in 3 years, driven by automated campaign optimization adoption (up 19% QoQ) and ZipIntro adoption (interviews up 80% QoQ).
- Generative AI traffic surged: Site visits from AI models increased 140% sequentially, reflecting ZipRecruiter's optimization for next-gen job discovery.
- Breakroom launch: Over 10,000 employer profiles published with 1 million worker ratings, enhancing job seeker decision-making.

**【President's Business Highlights】**
- Quarterly paid employers reached 67,000 (3% YoY growth, 1% QoQ), with SMB resume unlocks up 11% QoQ due to enhanced resume database tools.
- Enterprise customers are prioritizing ZipRecruiter due to superior job seeker engagement (5+ candidates within 24 hours for 24% more SMBs).
- Generative AI-driven visits now account for a growing share of traffic, with conversion quality matching traditional channels.

**【CFO Financial Commentary】**
- Adjusted EBITDA of $9.2 million (8% margin) reflects disciplined spending despite macro challenges.
- Q4 2025 guidance: Revenue $109-$115 million (midpoint +1% YoY), with adjusted EBITDA margin expected to exceed mid-single digits.
- $411 million cash balance supports share buybacks ($10M in Q3) and strategic investments.

**【Q&A Highlights】**
- **Product Innovation Impact**: Enterprise adoption of AI tools like automated campaign optimization is driving market share gains despite weak hiring (hires/quits rates near 2015 lows).
- **Generative AI Strategy**: Optimizing for AI-driven traffic is a key growth lever, with ZipIntro enabling rapid employer-candidate connections post-AI discovery.
- **Margin Outlook**: Q4 margin strength reflects seasonal marketing efficiency, but long-term goal remains 30% adjusted EBITDA margin through high ROI investments.


ZipRecruiter, Inc. (ZIP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

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Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

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ZIP

ZIP fundamentals

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