ZipRecruiter, Inc. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with total revenue of $474.0 million, a decrease of 27% from $645.7 million in 2023. The company also recorded a net loss of $12.9 million, contrasting with a net income of $49.1 million in the previous year. Adjusted EBITDA fell to $78.0 million, down from $175.3 million in 2023, reflecting the impact of a challenging economic environment characterized by high interest rates and reduced hiring activity.
The decrease in revenue was primarily attributed to a lower number of Quarterly Paid Employers, which fell to 57,833 in Q4 2024 from 70,712 in Q4 2023. This decline was driven by employers moderating their hiring plans amid economic uncertainty, leading to reduced spending on ZipRecruiter's marketplace products and services. Despite these challenges, the company reported a stable Revenue per Paid Employer, which remained flat year-over-year at $1,920 in Q4 2024.
Strategically, ZipRecruiter made notable moves, including the acquisition of Breakroom, a UK-based employee review platform, for $13.3 million in July 2024. This acquisition is expected to enhance ZipRecruiter's offerings in frontline industries such as retail and hospitality. The company also continued to invest heavily in research and development, spending $134.8 million in 2024, which accounted for 28% of total revenue, to improve its matching technology and overall user experience.
Operationally, ZipRecruiter employed approximately 1,000 individuals as of December 31, 2024, maintaining a focus on enhancing its technology and user engagement. The company reported a 25% year-over-year increase in installs of its job seeker app, indicating strong user interest despite the overall market challenges. However, the company faced headwinds from macroeconomic conditions, which have led to atypical seasonal hiring patterns and a decrease in job postings.
Looking ahead, ZipRecruiter anticipates continued investment in its marketplace to drive growth and improve functionality. The company remains committed to enhancing its technology and expanding its user base, although it acknowledges the ongoing economic uncertainties that may impact its performance in the near term.
About ZIPRECRUITER, INC.
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