ZipRecruiter, Inc.

Thank you for standing by. My name is Jeannie and I will be your conference operator today. At this time, I would like to welcome everyone to the ZipRecruiter Inc Q2 2024 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star 1 again. Thank you. I will now like to turn the conference over to Drew Haraldson, Investor Relations.

Thank you, Operator, and good afternoon. Thank you for joining us in our earnings conference call, during which we will discuss Zipper Crew's performance for the quarter end of June 30, 2024, and guidance for the third quarter of 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. The 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, Informed 10-Q for the quarter ended June 30th, 2024, which is 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 as 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.

Thank you and good afternoon to everyone joining us today. Since day one, ZipRecruiter has been focused on eliminating friction in the job search process. While we are proud of the progress we have made, many pain points still exist for both sides of the marketplace. We believe ZipRecruiter's brand, proprietary data, and technology uniquely position us to further disrupt the industry over the long term and accelerate the shift from offline to online recruitment. Despite the short-term challenges of navigating the post-COVID macroeconomic cycle, we believe that the advancements we are making towards transforming how the job search process works positions us to thrive through many macroeconomic cycles to come. In Q2 2024, revenue of $124 million was down 27% year over year. Net income in Q2 2024 was $7 million, while adjusted EBITDA was $28 million, equating to a net income margin of 6% and an adjusted EBITDA margin of 23%. Both revenue and adjusted EBITDA in Q2 2024 came in above the high end of guidance. As we look toward the second half of 2024, we continue to navigate challenging labor market conditions. Per the Bureau of Labor Statistics, seasonally adjusted hires have declined every month on a year-over-year basis since August of 2022. The quit rate has fallen 9% below the average rate in 2019. Despite the fact that hiring is down and employees aren't quitting, our disciplined investment strategy allows us to build on our product momentum and technology leadership. In Q2 2024, These investments contributed to another quarter of job seeker growth. Total ZipRecruiter web traffic in the U.S. grew by 22% year over year, which is 12 percentage points more than any of our largest competitors. Ongoing investments in product brand awareness paired with a number of product improvements contributed to a 30% year over year increase in organic job seeker traffic. Over time, we believe growing job seeker traffic will lead to meaningful revenue dollar shifts from both offline and online competitors. In Q2, we began the rollout of Zip Intro. Zip Intro enables the acceleration of face-to-face connection, delivering strong results so far, with over 90% of job seekers saying they are likely to use Zip Intro again, and employers who have tried it receive over three times more quality applications per job utilizing Zip Intro. In July, we acquired Break Room, a UK-based employer review site focused on frontline workers. In the coming months, we anticipate launching Break Room in the US, where approximately 70% of the workforce is concentrated in frontline roles. Our innovation is enabled by our flexible financial model and robust balance sheet, which gives us the ability to continue to build our brand and enhance our user experience throughout economic cycles. As we continue to navigate this current cycle, We are confident that our disciplined investment strategy will put us in a strong position to take advantage of the inevitable recovery in the labor market to come. With that, I will now turn the call over to Dave to review progress on our growth strategy. Dave?