ZipRecruiter, Inc.

The year-over-year decrease was driven by a soft hiring environment, while the sequential decline reflects post-holiday seasonality, where employers join or return our platform over the course of the quarter. We finished the first quarter with over 63,000 quarterly paid employers, which was flat year-over-year and represented a 7% increase sequentially. Quarterly paid employers remaining flat year over year in spite of macroeconomic volatility demonstrates the stability of our employer base. The sequential growth is consistent with our historical seasonal patterns where quarterly paid employers typically grow over the course of Q1 after the holiday slowdown in Q4. Revenue per paid employer was $1,698, down 2% year over year and down 10% sequentially. The year-over-year decrease reflects more muted hiring demand. The sequential decrease was primarily driven by seasonal growth in the number of quarterly paid employers as they ramped up their hiring campaigns over the course of Q1. Our net loss in the first quarter was $4.7 million. Adjusted EBITDA in Q1 was $9.7 million, representing a 9% margin coming ahead of the high end of our guidance range. This compares to an adjusted EBITDA margin of 5% in Q1 of 25. Cash, cash equivalents, and marketable securities totaled $393.5 million as of March 31st. During the first quarter, we repurchased 3.5 million shares, totaling $9.4 million. Moving on to quarterly guidance, our Q2 revenue guidance of $112 million at the midpoint represents a return to flat revenue year over year. and 4% growth quarter over quarter, demonstrating the impact of our hiring solutions despite underlying macro headwinds. Our adjusted EBITDA guidance for Q2 is $13 million at the midpoint, representing a 12% margin. Looking beyond Q2, we continue to expect hiring demand to follow a typical seasonal cadence throughout 2026, albeit at subdued levels. Under this scenario, we expect to achieve flat year-over-year revenue in 2026, which is a 5 percentage point improvement over the 5% decline in 2025. In this scenario, we also believe adjusted EBITDA margins can expand by 5 percentage points from 9% in 2025 to 14% in 2026. This margin expansion reflects our commitment to operational efficiency alongside targeted investments aimed at capturing growth. The stabilization in the business and accelerating pace of innovation we've seen in our marketplace are encouraging. We remain confident that our focus on driving more meaningful conversations between employers and job seekers will position ZipRecruiter to outperform the broader hiring category over the long term. With that, we can now open the line for questions. Operator?

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Good afternoon. Thanks for taking the question. First question, maybe if you could talk about the differences you might be observing between SMB and enterprise segments. Sounds like you're making some good traction within enterprise. And then as 2026 progresses, you know, how would you expect perhaps the behavior within each of these segments to perhaps change? And then I have a follow up.