ZipRecruiter, Inc. (NYSE:ZIP) Q2 2023 Earnings Conference Call August 8, 2023 5:00 PM ET

Company Participants

Drew Haroldson - Investor Relations

Ian Siegel - Co-Founder and Chief Executive Officer

David Travers - President

Tim Yarbrough - Chief Financial Officer

Conference Call Participants

Ralph Schackart - William Blair

Trevor Young - Barclays

Wes Sanford - JPMorgan

Operator

Good afternoon, ladies and gentlemen. Thank you for standing by. My name is Erica and I am the conference operator today. At this time, I would like to welcome everyone to the ZipRecruiter Inc. Q2 2023 Earnings Call. [Operator Instructions] Thank you. At this time, I will be turning it over to Drew Haroldson with Investor Relations, Blueshirt Group.

Drew Haroldson

Thank you, operator and good afternoon. Thank you for joining us in our earnings conference call, during which we will discuss ZipRecruiter’s performance for the quarter ended June 30, 2023 and guidance for the third quarter and full year 2023. Joining me on the call today are Ian Siegel, Co-Founder and CEO; David Travers, President; and Tim Yarbrough, CFO.

Before we begin, please be reminded that forward-looking statements made today are subject to risks and uncertainties related to future events and/or the future financial performance of ZipRecruiter. Actual results could differ materially from those anticipated in these forward-looking statements. A discussion of some of the risk factors that could cause actual results to differ materially from any forward-looking statements can be found in ZipRecruiter’s quarterly report on Form 10-Q for the quarter ended June 30, 2023, which will be available on our investor website and the SEC’s website. The forward-looking statements in this conference call are based on the current expectations as of today and ZipRecruiter assumes no obligation to update or revise them, whether as a result of new developments or otherwise.

In addition, during today’s call, we will discuss non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not a substitute for or in isolation from GAAP results. Reconciliations of the non-GAAP metrics to the nearest GAAP metrics are included in ZipRecruiter’s shareholder letter and in our Form 10-Q.

And now, I will turn the call over to Ian.

Ian Siegel

Thank you, Drew. Good afternoon to everyone joining us today. Second quarter results reflect ZipRecruiter’s resilience in the face of a cooling hiring environment. Adjusted EBITDA of $43 million and adjusted EBITDA margin of 25% exceeded the high end of our guidance, while Q2 revenue of $170 million was in line with the midpoint of our guidance. Employers continue to respond to the enduring macroeconomic uncertainty with caution. The number of job openings employers’ willingness to pay for those job openings has been declining significantly from the peaks of 2021 and 2022. This trend is consistent among both SMB and enterprise customers alike across multiple industries and geographies. We see this as a macroeconomically-driven reality impacting companies across the recruiting space. This results in the continuation of an atypical hiring pattern. Therefore, we are discontinuing full year adjusted EBITDA guidance. However, we believe that the company will achieve adjusted EBITDA margins in the low to mid 20% range for the full year given our ability to respond to our environment quickly.