ZipRecruiter, Inc.

Thank you for standing by. My name is Mark, and I will be your conference operator today. At this time, I would like to welcome everyone to ZipRecruiter and Q3 2024 earnings 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 one again. Thank you. I would now like to turn the call over to Andrew Harrelson, Investor Relations. Andrew?

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 September 30th, 2024, and guidance for the fourth 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 quarterly report in Form 10-Q for the quarter ended September 30, 2024, which is available in 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 or nearest GAAP metrics are included in the ZIP Recruiter 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. ZipRecruiter continues to navigate a protracted labor market downturn. In Q3 2024, revenue of $117.1 million was down 25% year over year. Net loss in Q3 was $2.6 million, while adjusted EBITDA was $15 million, equating to a net loss margin of negative 2% and an adjusted EBITDA margin of 13%. Notably, both revenue and adjusted EBITDA in the quarter came in above the high end of guidance. We continue to balance financial strength with investing in strategic initiatives that we believe will drive a strong ROI, positioning ZipRecruiter for success with job seekers and employers alike. While there are many ways to measure market share in our industry, we have been acutely focused on winning share with job seekers via a superior job search experience. Our strategy around product and technology has proven effective, as ZipRecruiter has grown job seeker traffic year over year in Q3 at least 13 percentage points more than any of our largest competitors. Our multi-year investments in brand, advancements with Phil, our AI-driven career advisor, and focus on matching technology have all played a role in winning trust and loyalty with job seekers. We firmly believe that over time, revenue from employers will follow the market share shifts with job seeker activity. While each labor market cycle is distinct, by several measures, this is one of the more prolonged downturns in hiring activity. Seasonally adjusted hires have declined on a year-over-year basis every month since August of 2022, which is approaching the same duration in hiring declines as the recession of 2008. Further, the great stay continues with the currently employed leaving their jobs at the lowest rate since 2015, excluding the onset of the COVID pandemic. This persistent reduction in employee churn is further driving down hiring levels. While it is difficult to predict exactly when hiring activity will recover, we are confident in the long-term health of the U.S. labor market and see the end of the great stay as a future tailwind. Despite the duration of the hiring decline, our operating philosophy of remaining nimble, responding to the macroeconomic environment while investing in our product and technology has proven effective during this period. We believe that when businesses resume hiring, they will experience a much improved marketplace with better tools and a greater supply of candidates to find a great fit for their job opening. Through labor market cycles, we remain intently focused on our mission of actively connecting people to their next great opportunity. With that, I will now turn the call over to Dave to review progress on our growth strategies. Dave.