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1. Company Snapshot

1.a. Company Description

ZipRecruiter, Inc., together with its subsidiaries, operates a marketplace that connects job seekers and employers.Its platform is a two-sided marketplace, which enables employers to post jobs and access other features, where the job seekers are able to apply to jobs with a single click.The company was incorporated in 2010 and is headquartered in Santa Monica, California.

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1.b. Last Insights on ZIP

ZipRecruiter's recent performance was negatively impacted by a decline in earnings, as reported in its Q1 2025 earnings release. The company's loss of $0.13 per share versus the Zacks Consensus Estimate of a loss of $0.17 indicates a widening gap between expectations and reality. Additionally, the launch of Buy Now, Pay Later (BNPL) flexible payment plan option through a partnership with Zip Co. may lead to increased competition in the digital financial services market. Furthermore, the recognition as the best AI-powered hiring platform for 2025 by Better Business Advice may not necessarily translate to improved financial performance.

1.c. Company Highlights

2. ZipRecruiter's Q3 2025 Earnings: A Resilient Performance Amidst a Soft Labor Market

ZipRecruiter reported revenue of $115 million in Q3 2025, representing a 2% decline year over year but a 2% increase sequentially. The company's adjusted EBITDA in Q3 2025 was $9.2 million, resulting in an adjusted EBITDA margin of 8%. The actual EPS came out at -$0.11, beating estimates of -$0.15. The company's financial performance was driven by its enterprise strategy, with performance-based revenue growing 12% quarter over quarter, the most growth seen in the past three years.

Publication Date: Nov -29

📋 Highlights
  • Performance-Based Revenue Growth:: 12% quarter-over-quarter increase, highest growth in three years.
  • Paid Employer Growth:: 67,000 quarterly paid employers, up 3% YoY and 1% sequentially.
  • Revenue and Profitability:: Q3 revenue of $115M (-2% YoY but +2% sequentially), adjusted EBITDA of $9.2M (8% margin).
  • AI-Driven Traffic Surge:: 140% sequential rise in visits from generative AI models, quality comparable to traditional sources.
  • Product Impact on Engagement:: 24% more SMBs secure five+ candidates within 24 hours due to algorithmic matching improvements.

Operational Highlights

The company's quarterly paid employers hit 67,000, an increase of 1% sequentially and 3% year over year. Ian Siegel, Founder and CEO, stated that the company's product strategy is working, driven by the cumulative effect of several factors, including the high-rated job seeker apps, market share growth, and the campaign performance tool. The company is also seeing a significant increase in site visits from Gen AI search engines, up 140% year-over-year, with the quality of traffic on par with traditional sources.

Growth Prospects and Guidance

The company's guidance for Q4 2025 is for revenue to be between $109 million and $115 million, representing a 1% increase year over year. The adjusted EBITDA guidance midpoint of $14 million implies a full-year 2025 adjusted EBITDA margin of 9%. Analysts estimate next year's revenue growth at 4.6%. The company's product improvements are driving a strong return, with 24% more SMBs getting five-plus candidates within the first 24 hours, thanks to algorithmic matching.

Valuation and Outlook

ZipRecruiter's current valuation metrics indicate a P/S Ratio of 0.98 and an EV/EBITDA of 563.75. While the EV/EBITDA ratio appears high, it may be justified by the company's growth prospects and improving operational efficiency. As the company continues to invest in high ROI product and marketing opportunities, its adjusted EBITDA profitability is expected to be maintained. With a expected revenue growth of 4.6% next year, the stock may be worth considering for investors looking for a company with a strong product strategy and improving financial performance.

3. NewsRoom

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ZipRecruiter, Inc. (ZIP) Presents at UBS Global Technology and AI Conference 2025 Transcript

Dec -03

Source: seekingalpha.com

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New Jersey ZIP Reopens with $37.5 Million in New Funding

Nov -24

Source: prnewswire.com

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ZipRecruiter, Inc. (ZIP) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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ZipRecruiter, Inc. (ZIP) Reports Q3 Loss, Tops Revenue Estimates

Nov -06

Source: zacks.com

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ZipRecruiter Announces Third Quarter 2025 Results

Nov -05

Source: businesswire.com

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ZipRecruiter Research Finds ‘The Great Freeze' Thawing as U.S. Employers Prepare to Ramp Up Hiring

Oct -21

Source: businesswire.com

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ZipRecruiter, Inc. (ZIP) Presents At Goldman Sachs Communacopia + Technology Conference 2025 Transcript

Sep -11

Source: seekingalpha.com

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Zip shares hit three-year high on earnings beat as BNPL firm unveils US listing plan

Aug -22

Source: invezz.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.29%)

6. Segments

Subscription

Expected Growth: 3.5%

ZipRecruiter's 3.5% subscription growth is driven by increasing demand for recruitment services, expansion into new markets, and strategic partnerships. The company's AI-powered job matching technology and user-friendly interface also contribute to its growth, as well as the rising need for employers to streamline their hiring processes in a competitive job market.

Performance-based

Expected Growth: 2.5%

ZipRecruiter's 2.5% growth is driven by increasing demand for recruitment services, expansion into new markets, and strategic partnerships. The company's performance-based model, which charges clients only for successful hires, resonates with cost-conscious employers. Additionally, ZipRecruiter's AI-powered matching technology and user-friendly interface enhance the job seeker experience, driving engagement and retention.

7. Detailed Products

Job Posting

Allows employers to post job openings on multiple job boards and websites, increasing visibility and reach to potential candidates.

Resume Database

Provides access to a vast database of resumes, allowing employers to search and filter candidates based on specific criteria.

Applicant Tracking System (ATS)

Streamlines the hiring process by allowing employers to manage job postings, track applicants, and collaborate with team members.

Screening and Assessment Tools

Offers a range of screening and assessment tools to help employers identify top candidates and reduce time-to-hire.

Job Distribution

Distributes job postings to a network of job boards, social media, and other online platforms to increase visibility and reach.

8. ZipRecruiter, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ZipRecruiter's job posting services can be substituted with other job boards and career websites, but its unique features and user-friendly interface reduce the threat of substitutes.

Bargaining Power Of Customers

ZipRecruiter's customers, mainly employers and recruiters, have limited bargaining power due to the company's large customer base and diversified revenue streams.

Bargaining Power Of Suppliers

ZipRecruiter's suppliers, mainly job boards and career websites, have limited bargaining power due to the company's dominant position in the market.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the online job posting market, and the increasing popularity of job search platforms.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of established players like Indeed, LinkedIn, and Glassdoor, which creates a competitive landscape for ZipRecruiter.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.49%
Debt Cost 7.60%
Equity Weight 1.51%
Equity Cost 10.16%
WACC 7.64%
Leverage 6539.22%

11. Quality Control: ZipRecruiter, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Quality: 8.2

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ZipRecruiter

A-Score: 3.0/10

Value: 6.0

Growth: 3.6

Quality: 6.2

Yield: 0.0

Momentum: 0.0

Volatility: 2.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.36$

Current Price

5.36$

Potential

-0.00%

Expected Cash-Flows