ZipRecruiter, Inc. (NYSE:ZIP) Q4 2023 Earnings Conference Call February 22, 2024 5:00 PM ET

Company Participants

Drew Haroldson - Investor Relations

Ian Siegel - Chief Executive Officer

David Travers - President

Timothy Yarbrough - Executive Vice President and Chief Financial Officer

Conference Call Participants

Kunal Madhukar - UBS

Brian Fitzgerald - Wells Fargo

Ralph Schackart - William Blair

Justin Patterson - KeyBanc

Mark Mahaney - Evercore

Eric Sheridan - Goldman Sachs

Operator

Ladies and gentlemen, thank you for standing by and welcome to the ZipRecruiter Inc. Q4 2023 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded.

I would now hand today's call over to Drew Haroldson, Investor Relations. Please go ahead, sir.

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 and year ended December 31, 2023, and guidance for the first quarter 2024. 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 relating 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 annual report on Form 10-K for the year ended December 31, 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-K.

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

Ian Siegel

Thank you, Drew. Good afternoon to everyone joining us today. In 2023, demand for recruiting services dropped throughout the year for companies of all sizes. This culminated in Q4 of 2023, which had the lowest BLS reported hiring rate since 2014, excluding the onset of the pandemic. Quits and separation, some of the primary drivers of employer hiring are down to pre-pandemic levels. While in 2021 and 2022 workers left jobs for higher wages, wage inflation has abated and macroeconomic uncertainty has increasingly kept people in their current roles. With fewer job openings and lower employee turnover, the great resignation has turned into the big stay.