Q1 2024 ZipRecruiter Inc Earnings Call

Pam: Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Ziprecruiter Inc. Q1 2024 earnings call. All lines have been placed on mute to prevent any background noise.

Thank you for standing by my name is Pam and I'll be your conference operator today at this time I would like to welcome everyone to the ZIP Recruiter, Inc. Q1, 'twenty 'twenty four earnings call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answers.

Pam: 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 conference over to Drew Haroldson with Investor Relations. Please begin.

Drew Haroldson: 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 he would like to withdraw your question Press Star one again.

Pam: I would now like to turn the conference over to drew Haroldson with Investor Relations. Please begin.

Drew Haroldson: Thank you, operators, and good afternoon. Thank you for joining us on our earnings conference call, during which we will discuss Ziprecruiter performance for the quarter ending March 31st, 2024 and guidance for the second quarter of 2020. 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.

Drew Haroldson: Thank you operator and good afternoon. Thank you for joining us on our earnings conference call during which we will discuss it with great performance for the quarter ended March 31, 2024 guidance for the second quarter 2024.

Drew Haroldson: Joining me on the call today are co founder and CEO, David travelers can yard Brown CFO.

Drew Haroldson: Actual results could differ materially from those anticipated in these forward-looking statements. Discussion of some of these risk factors that could cause actual results to differ materially from any forward-looking statements can be found in Ziprecruiter's quarterly report on Form 10-Q for the quarter ended March 31st, 2024, which is available on our investor website and the SEC's website. The forward-looking statements in this conference call are based on current expectations as of today, and Ziprecruiter assumes no obligation to update or revise them, whether as a result of new developments or otherwise.

Drew Haroldson: While we begin please be reminded that forward looking statements made today are subject to risks and uncertainties relating to future events and the future financial performance.

Drew Haroldson: Actual results could differ materially from those anticipated in these forward looking statements.

Drew Haroldson: A discussion of some of these risk factors that could cause actual results to differ materially from any forward looking statements can be found with Geoff Curtis quarterly report on Form 10-Q for the quarter ended March 31, 2024, which is available on our investor website and the Sec's website.

Drew Haroldson: The forward looking statements in this conference call are based on current expectations as of today.

Drew Haroldson: <unk> assumes no obligation to update or revise them, whether as a result of new developments or otherwise.

Drew Haroldson: 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. Now, I will turn the call over to you.

Drew Haroldson: 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 reconciliation of the non-GAAP metrics to the nearest GAAP metrics are included in jeopardy.

Speaker Change: The shareholder letter and in our Form 10-Q, and now I will turn the call over to you.

Ian H. Siegel: Thank you and good afternoon to everyone joining us today. QN24 revenue of $122 million was down 33% year-over-year, though it exceeded the midpoint of our guidance range. We generated $2 million in operating cash flow and $21 million in adjusted EBITDA, equating to an adjusted EBITDA margin of 17%. Though results were above expectations discussed in our last earnings call, the labor market industry backdrop has remained challenging through the first few months of 2025.

Speaker Change: Thank you and good afternoon to everyone joining us today.

Ian H. Siegel: Q1 to 24 revenue of $122 million was down 33% year over year.

Ian H. Siegel: Exceeded the midpoint of our guidance range, we generated $2 million in operating cash flow and $21 million and adjusted EBITDA equating to an adjusted EBITDA margin of 17%.

Ian H. Siegel: Our results were above expectations discussed in our last earnings call. The labor market industry backdrop has remained challenging through the first few months of 2024.

Ian H. Siegel: Hiring levels continue to be subdued, and the number of people quitting their jobs also remains low as the big stay persists into Q1. However, there are also positive signs emerging as we begin the year. Q124 is the first quarter with a sequential increase in quarterly paid employers since 2022 and is a potential indicator of stabilization in the hiring market. While not yet a return to normal seasonality, where revenue ramps up from Q1 to Q2, we see this as an early sign that the labor market downturn is potentially reaching a trough.

Ian H. Siegel: Hiring levels continued to be subdued and the number of people quitting their jobs also remains low as the big stay persisted into Q1.

Ian H. Siegel: However, there are also positive signs emerging as we begin the year.

Ian H. Siegel: Q1, 'twenty four is the first quarter with a sequential increase in quarterly Cade employers since 2022, and as a potential indicator of stabilization in the higher end market.

Ian H. Siegel: While not yet a return to normal seasonality, where revenue ramps from Q1 to Q2, we see this as an early sign that the labor market downturn is potentially reaching a trough.

Ian H. Siegel: Our balance sheet remains robust, with over $510 million on hand. We are well positioned to weather this industry-wide downturn and enter an eventual recovery from a position of strength. Therefore, we continue to lean into investments in product, technology, and marketing that we expect to drive a significant long-term ROI. While we remain prepared for a wide range of scenarios as 2024 plays out, we are poised to increase investment as opportunities arise and, alternatively, are always prepared to show further cost discipline if conditions deteriorate. We have a strong conviction that technology will fundamentally change how employers and job seekers connect to one another, and Ziprecruiter will be at the forefront of that change. Why are we so confident in our long-term outlook?

Ian H. Siegel: Our balance sheet remains robust with over $510 million on hand.

Ian H. Siegel: We are well positioned to weather this industry wide downturn and enter an eventual recovery from a position of strength.

Ian H. Siegel: Therefore, we continue to lean into investments in product technology, and marketing that we expect to drive significant long term ROI.

Ian H. Siegel: We remain prepared for a wide range of scenarios as 2024 plays out we are poised to increase investment as opportunities arise and alternatively are always prepared to show further cost discipline if conditions deteriorate.

Ian H. Siegel: We have strong conviction that technology will fundamentally change how employers and job seekers connect to one another and <unk> will be at the forefront of that change.

Ian H. Siegel: Why are we so confident in our long term outlook. There are several strategic advantages is well positioned for long term growth.

David Travers: There are several strategic advantages that make CareerBuilder well-positioned for long-term growth. We have built an enduring brand, as demonstrated by the 65% year-over-year organic job seeker traffic growth in Q1 of 24. Our matching technology is constantly getting better by utilizing the high volume of proprietary data points we gather from interactions between job seekers and employers in our marketplace. Bill, our AI-driven career advisor, who introduced many job seekers to what it's like to have an ally in the job search process, continues to expand his presence throughout the Ziprecruiter experience.

David Travers: We have built an enduring brands as demonstrated by the 65% year over year organic jobseeker traffic growth in Q1 of 'twenty four.

David Travers: Our matching technology is persistently getting better by utilizing the high volume of proprietary data points, we gather from interactions between job seekers and employers in our marketplace.

David Travers: Bill our AI driven career advisor, who introduced many job seekers to what it's like to have an ally in the job search process continues to expand his presence throughout the ZIP recruiter experience.

David Travers: And finally, our 150+ integrations with applicant tracking systems are nearly a decade in the making, making it easier for large enterprises to activate our solutions. While there are many reasons we believe Ziprecruiter will win, what will drive market share gains over time are advancements in product and technology, which are the center of our investments today. There is no doubt that the post-COVID labor market backdrop has made the past few quarters challenging on the top line for us and throughout the recruitment industry.

David Travers: And finally, our 150 plus integrations with applicant tracking systems are nearly a decade in the making make it even easier for large enterprises to activate our solution.

David Travers: While there are many reasons, we believe zipper critical when what will drive market share gains over time, our advancements in product and technology, which are the center of our investments today.

David Travers: No doubt that the post Covid labor market backdrop has made the past few quarters challenging on the top line for us and throughout the recruitment industry.

David Travers: But we remain dedicated to and incredibly energized by 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?

David Travers: But we remain dedicated to an incredibly energized by our mission of actively connecting people to their next great opportunity.

David Travers: With that I will now turn the call over to Dave to review progress on our growth strategies Dave.

David Travers: Thank you, Ian, and good afternoon. As Ian mentioned, we are leaning into product and technology investments to capture the massive opportunity to transform how employers and job seekers come together. I will detail the continued progress we are making against our three strategic pillars to improve outcomes for employers and jobs. Our first strategic pillar is increasing the number of employers and the revenue per paid employer in our market. Growing revenue from enterprise employers is a massive opportunity for Ziprec. Our ongoing effort to introduce new ATS integrations and improve upon existing ones is an investment years in the making and a key strategy to growing enterprise revenue over time.

Dave: Thank you Ian and good afternoon, as Ian mentioned, we are leaning into product and technology investments to capture the massive opportunity to transform how employers and job seekers come together I.

David Travers: I will detail. The continued progress we are making against our three strategic pillars to improve outcomes for employers and job seekers.

David Travers: Our first strategic pillar is increasing the number of employers and the revenue per paid employer in our marketplace.

David Travers: Growing revenue from enterprise employers is a massive opportunity for zipper Peter.

David Travers: Our ongoing efforts to introduce new ETF integrations and improve upon existing ones is an investment years in the making and a key strategy to growing enterprise revenue overtime.

David Travers: These ATS integrations create value across our market, with job seekers and our ATS partners benefiting from a smoother application experience, and employers receiving a higher volume of applications. In Q1, we completed one of our newest ATS integrations with iFIT. With this integration, employers will be able to seamlessly tap into ZipRecruiter's marketplace and unleash our matching technology to drive talented applicants to their job opportunities. Meanwhile, jobseekers can use ZipApply, our frictionless application process, to apply to jobs in the iSEMS ATS without ever leaving the ZipRecruiter marketplace.

David Travers: These etfs integrations create value across our marketplace with job seekers, and our ETF partners benefitting from a smoother application experience and employers receiving a higher volume applications.

David Travers: In Q1, we completed one of our newest Etfs integrations with items.

David Travers: With this integration employers will be able to seamlessly tap into zip recruiters marketplace and unleash our matching technology to drive talented applicants to their job opex.

David Travers: Job seekers can use zip apply our frictionless application process to apply to jobs in the items Etfs without ever leaving the Zip recruiter marketplace.

David Travers: Click-to-Apply conversion increases by more than four times when customers move from External Apply to Zip Apply. Additionally, our automated campaign optimization solution, launched in 2023, continues to get better at improving employers' efficacy in hitting their desired campaign targets. In Q1, it was 17% more effective at achieving campaign targets than the prior quarter and nearly 40% more effective compared to the prior year period.

David Travers: Click to apply conversion increases by more than four times when customers move from external applies to Zika play.

David Travers: Our automated campaign optimization solution launched in 2023 continues to get better at improving employers efficacy and hitting their desired campaign targets in Q1, it was 17% more effective at achieving campaign targets than the prior quarter and nearly 40% more effective.

David Travers: Compared to the prior year period.

Timothy G. Yarbrough: We believe that increasing the efficiency by which we achieve customer targets will lead to growth in enterprise revenue over time. I'll now move to our second pillar, increasing the number of jobseekers in our market. We continue to see strong organic job seeker activity driven by multi-year branded campaigns. In Q1, organic visitors from job seekers grew 30 percent sequentially and over 65 percent year over year. Strong organic job seeker activity is a primary reason why we've been able to significantly reduce marketing expenses as we balance our two-sided marketplace during this period of subdued hiring activity.

David Travers: We believe that increasing the efficiency by which we achieve customer targets will lead to growth in enterprise revenue overtime.

Timothy G. Yarbrough: I'll now move to our second pillar, increasing the number of job seekers in the marketplace.

Timothy G. Yarbrough: We continue to see strong organic job seeker activity driven by multiyear brand investments in Q1 organic visitors from job seekers grew 30% sequentially and over 65% year over year strong organic job seeker activity as a primary reason why we've been able to significantly.

Timothy G. Yarbrough: We reduced marketing expenses as we balance our two sided marketplace. During this period of subdued hiring activity. Additionally.

Timothy G. Yarbrough: Additionally, downloads for our industry-leading mobile app for iOS and Android grew 23% year-over-year, and engagement has remained strong as job clicks from our mobile apps increased 19% year-over-year. Additionally, in Q1, we streamlined the user experience for job seekers who prefer to hear about jobs via text message, which resulted in nearly seven times more opt-ins than the prior process. As our matching technology continues to improve, we send job seekers a text faster about a fresh relevant job when our technology is confident in the potential match, rather than waiting to only send a text when job seekers are invited to apply to a job by an employer.

Timothy G. Yarbrough: Additionally, downloads for industry, leading mobile app for iOS, and Android grew 23% year over year and engagement has remained strong as job clicks from our mobile apps increased 19% year over year.

Timothy G. Yarbrough: Additionally, in Q1, we streamline the user experience for job seekers, who prefer to hear about jobs via text messaging, which resulted in nearly seven times more opt ins than the prior process flow as our matching technology continues to improve we couldnt job seekers attacks faster about a fresh relevant.

Timothy G. Yarbrough: When our technology is confident in the potential match.

Timothy G. Yarbrough: Rather than wait until only send a text when job seekers are invited to apply to a job by an employer.

Timothy G. Yarbrough: As a result, applications driven by text messaging grew more than three times in Q1 compared to the prior quarter. I'll conclude with our third pillar, making our matching technology smarter over time. In Q1, we rolled out an algorithm improvement for some job postings to drive more job seekers toward jobs with fewer applicants. These are great jobs for jobseekers because there's less competition from other applicants to get the job. This also benefits employers by optimizing the application volume for their jobs.

Timothy G. Yarbrough: As a result applications driven by text messaging grew over three times in Q1 compared to the prior quarter.

Timothy G. Yarbrough: I'll conclude with our third pillar, making our matching technology smarter over time.

Timothy G. Yarbrough: In Q1, we rolled out an algorithm improvement for some job postings to drive more job seekers toward jobs with fewer applicants.

Timothy G. Yarbrough: These are great jobs for job seekers, because theres less competition from other applicants to get the job.

Timothy G. Yarbrough: This also benefits employers by optimizing application volume for their jobs. These.

Timothy G. Yarbrough: These algorithmic improvements are the result of long-term technology investments, and these investments are bearing fruit. For example, these jobs saw a year-over-year increase of 19% in applications per job in Q1. Now, we'll turn it over to Tim to talk through the financial results and our guidance. Kim?

Timothy G. Yarbrough: These algorithmic improvements are the result of long term technology investments and these investments are bearing fruit. For example, these jobs so year over year increase of 19% and applications per job in Q1.

Timothy G. Yarbrough: Now I'll turn it over to Tim to talk through the financial results and our guidance Tim.

Timothy G. Yarbrough: Thank you, Dave, and good afternoon, everyone. Our first quarter revenue of $122 million represents a 33% decline year-over-year, primarily due to continued softness in hiring demand. Quarterly paid employers were 72,000, representing a 32% decrease versus Q1'23 but a 1% increase sequentially. Notably, Q1'24 is the first quarter with a sequential increase in quarterly paid employers since 2022, which is a potential sign of stabilization in the hiring market. The net loss was $7 million in Q1'24 compared to a net income of $5 million in Q1'23 and $6 million in Q4'23.

Tim: Thank you, Dave and good afternoon, everyone. Our first quarter revenue of $122 million represents a 33% decline year over year, primarily due to continued softness in hiring demand.

Timothy G. Yarbrough: Quarterly paid employers were 72000, representing a 32% decrease versus Q1, 'twenty three but a 1% increase sequentially, notably Q1 'twenty four is the first quarter with a sequential increase in quarterly paid employer since 2022, which is a potential sign of stabilization in the hiring market.

Timothy G. Yarbrough: Net loss was $7 million in Q1, 24 compared to net income of $5 million in Q1, 'twenty, three and $6 million in Q4 'twenty three.

Timothy G. Yarbrough: Q1'24 of Justin Iveda was $21 million, equating to a margin of 17%, compared to $35 million, a margin of 19% in the prior year period, and $42 million, with a margin of 31% in Q4'23. Net income and adjusted EBITDA decreases both year-over-year and quarter-over-quarter are primarily related to revenue declines. Cash, cash equivalents, and marketable securities were $513 million as of March 31st, 2024, compared to $520 million as of December 31st, 2023.

Timothy G. Yarbrough: <unk> 24, adjusted EBITDA was $21 million equating to a margin of 17% compared to $35 million or margin of 19% in the prior year period and $42 million with a margin of 31% in Q4 'twenty three.

Timothy G. Yarbrough: Net income and adjusted EBITDA decreases both year over year and quarter over quarter are primarily related to revenue declines.

Timothy G. Yarbrough: Cash cash equivalents and marketable securities was $513 billion as of March 31, 2024, compared to $520 million as of December 31, 2023.

Timothy G. Yarbrough: Moving on to guidance, our Q2-24 revenue guidance of $117 million at the midpoint represents a 31% decline year-over-year and a 4% decline quarter-over-quarter. Our adjusted EBITDA guidance for Q2-24 is $15 million at the midpoint, or a 13% adjusted EBITDA margin. While this is not a return to normal seasonality where revenue would ramp from Q1 to Q2, the midpoint of our revenue guidance would represent the lowest sequential decline we have seen since 2022.

Timothy G. Yarbrough: Moving on to guidance, our Q2, 'twenty four revenue guidance of $117 million at the midpoint represents a 31% decline year over year, and a 4% decline quarter over quarter. Our adjusted EBITDA guidance for Q2, 'twenty four is $15 million at the midpoint or a 13% adjusted EBITDA margin.

Timothy G. Yarbrough: While this is not a return to normal seasonality, where revenue would ramp from Q1 to Q2, the midpoint of our revenue guidance would represent the lowest sequential decline we have seen since 2022.

Drew Haroldson: Our adjusted EBITDA guidance reflects a modest increase in operating expenses as we continue to hire top talent to invest in product and technology. Assuming continued signs of stabilization in the hiring market referenced above, we believe it remains prudent to continue long-term product, technology, and marketing investments in our marketplace yielding low to mid-teens adjusted EBITDA margins in 2024. We are constantly assessing the state of the labor market, letting data lead our

Timothy G. Yarbrough: Our adjusted EBITDA guidance reflects a modest increase in operating expenses as we continue to hire top talent to invest in product and technology.

Drew Haroldson: Assuming continued signs of stabilization of the hiring market referenced above we believe it remains prudent to continue long term product technology and marketing investments in our marketplace, yielding low to mid teens adjusted EBITDA margin in 2024.

Drew Haroldson: We are constantly assessing the state of the labor market, leading data lead our decision, making we are poised to increase the investment as opportunities arise and alternatively are prepared to show further cost disciplined if conditions deteriorate.

Drew Haroldson: We are poised to increase investment as opportunities arise and, alternatively, are prepared to show further cost discipline if conditions deteriorate. Ziprecruiter is well positioned to take advantage of an eventual labor market recovery and emerge from this challenging period for the industry from a position of strength. With that, we can now open the line for questions, Operator.

Drew Haroldson: <unk> is well positioned to take advantage of an eventual labor market recovery and emerge from this challenging period for the industry from a position of strength.

Speaker Change: With that we can now open the line for questions operator.

Operator: Thank you. We will now begin the question and answer session. If you have dialed in and would like to ask a question, please press star 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star 1 again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press star 1 to join the queue. And your first question comes from the line of Trevor Young with Barclays. Please go ahead.

Speaker Change: Thank you we will now begin the question and answer session. If you have dialed in and we'd like to ask a question. Please press star one on your telephone keypad. Please go ahead and join the queue. If you would like to withdraw your question simply press Star one again.

Operator: If you are called upon to ask a question or listening via loud speaker on your device. Please pick up your handset and ensure that your phone is not on mute when asking a question again press star one to join the queue and your first question comes from the line of Trevor Young with Barclays. Please go ahead.

Trevor Vincent Young: Great, thanks. For the first one, can you just talk about the pace of growth throughout the quarter? I think you'd normally be expecting momentum to kind of build each month throughout the quarter and into 2Q. I don't think we saw that last year given some of the softness at that point, but I'm just wondering, kind of, in light of that implied sequential decline in revs, is that same softness playing out this year as well?

Trevor Vincent Young: Great. Thanks.

Trevor Vincent Young: First one can you just talk about the cadence of growth throughout the quarter I think you'd normally be expecting momentum to kind of build each month throughout the quarter and into two Q I don't think we saw that last year given some of the softness at that point, but I'm just wondering kind of in light of that implied sequential decline in red is that same softness playing out this year as well.

Timothy G. Yarbrough: Yeah, Trevor, this is Tim. Thanks for the question. So yeah, last quarter, we talked about signs of labor market stabilization, and what we saw throughout the course of Q1 largely reflected that. So our guidance right now is roughly flat down just a tiny bit. But it's reflective of the kind of ongoing signs of stabilization that we saw in Q1 continuing through this quarter as well. So we're encouraged by those signs.

Trevor Vincent Young: Yes, Robert this is Tim Thanks for the question so last quarter, we talked about signs of labor market stabilization and what we saw throughout the course of Q1 largely reflected that.

Timothy G. Yarbrough: Our guidance right now sequentially is roughly flat down just a tiny bit, but it's reflective of that kind of.

Timothy G. Yarbrough: Ongoing signs of stabilization that we saw in Q1, continuing through this quarter as well. So we're encouraged by those signs.

Timothy G. Yarbrough: Okay, and kind of related, you know, QPEs firming up for the first time in more than a year, that's obviously pretty encouraging. But is that kind of a good level to model off of for the rest of the year, or is it still just a fairly uncertain outlook from here on the QPE front?

Timothy G. Yarbrough: Okay.

Timothy G. Yarbrough: Kind of Relatedly, you know Q P is firming up first time quarter on quarter and.

Timothy G. Yarbrough: More than a year, that's obviously pretty encouraging.

Timothy G. Yarbrough: Is that kind of a good level to model off of for the rest of the year or is it still just a fairly uncertain outlook from here on the <unk> front.

Timothy G. Yarbrough: Yeah, I would say it could play out a couple different ways. So the lift that we saw modestly, Q4 to Q1, was again pretty encouraging, and that was largely driven by S&Bs coming back. And you see kind of the opposite effect on revenue per paid employer with that kicking down a little bit, and that's more of a seasonal trend. So for the rest of the year, it really depends on to the extent that this flattening that we've been seeing continues. To the extent that it does, then I would expect that number to remain fairly flat throughout the course of the year.

Speaker Change: Yes, I would say it could play out a couple of different ways.

Timothy G. Yarbrough: No.

Timothy G. Yarbrough: The lift that we saw modestly in Q4 to Q1 was again pretty encouraging and that's largely driven by SMB is coming back.

Timothy G. Yarbrough: And.

Timothy G. Yarbrough: And you see the kind of the opposite effect on revenue per paid employer with that ticking down a little bit and that's more of a seasonal trend.

Timothy G. Yarbrough: So for the rest of the year it really does depend on.

Timothy G. Yarbrough: That the flattening that we've been seeing continues out to the extent that it does and I would expect that that number to remain fairly flat throughout the course of the year.

David Travers: Hey, Trevor, this is Dave. Just to add to that, you're exactly right that the flat quarterly paid employer number is a really encouraging sign. And, you know, what we've seen, as we've discussed in the past, when there's a change in the macro environment, usually small businesses respond faster than large enterprises. And that quarterly paid employer number is really driven by small businesses. So we remain prepared for a wide range of scenarios, as we've said. But if that continues to be the case, and we see signs of flattening, that's great. SMB-driven quarterly paid employee numbers are a good barometer for this.

Timothy G. Yarbrough: Trevor This is Dave just to add onto that Youre exactly right.

David Travers: The quarterly paid employer number is it really.

David Travers: Encouraging sign and.

David Travers: What we've seen as we've discussed in the past what we've seen when there's a change in the macro environment, usually small businesses respond faster than large enterprises and that quarterly paid employee remember is really driven by small businesses. So we remain prepared for a wide range of scenarios as we've said, but but if that continues.

David Travers: To be the case.

David Travers: But we see signs of flattening that bet.

David Travers: F N b driven quarterly paid employee number is a good barometer for that.

Trevor Vincent Young: Okay, great. Thanks both. Hopefully, that positive momentum continues.

Speaker Change: Okay, great. Thanks, both hopefully that positive momentum continues.

Ralph Edward Schackart: Your next question comes from the line of Ralph Schackart with William Blair. Please go ahead.

Trevor Vincent Young: Your next question comes from the line of Ralph Shakur with William Blair. Please go ahead.

Ralph Edward Schackart: Yes.

Timothy G. Yarbrough: Good afternoon, thanks for taking the question. Maybe just to bolt on to the prior question, just curious what the trend line has been, I guess, post Q1, if you've, you know, observed any sort of change in pattern or if it's sort of, you know, consisted with what you observed in Q1. That's the first question.

Ralph Edward Schackart: Good afternoon. Thanks for taking the question maybe just.

Timothy G. Yarbrough: A bolt on the prior question just curious what the trend line has been.

Timothy G. Yarbrough: I guess post Q1, if you observed in any sort of change in pattern or if it's sort of consistent with what we observed in Q1. That's my first question I have a follow up.

Timothy G. Yarbrough: Yeah, I think the pattern is largely consistent with what we saw in Q1, so definitely not a return to the seasonality that we would normally expect, where Q2 would be sequentially higher than Q1, so we haven't seen that. So our guidance being down very modestly is basically showing the same signs of stabilization.

Speaker Change: Yes, I think the pattern is largely consistent with what we saw in Q1 so.

Timothy G. Yarbrough: Definitely not a return to the seasonality that we would normally expect.

Timothy G. Yarbrough: Where Q2 would be sequentially higher than Q1, so we haven't seen that.

Timothy G. Yarbrough: So our guidance being down very modestly is basically showing that same signs of stabilization.

David Travers: Great. Maybe just to follow up, I know it's really early in the year, but I have to know, you know, whether you're trending right now or if you see any further downturns. I'm just curious, is this a little bit more broad-based? Is it vertical-specific? But any color you could provide on, you know, some of the stabilization trends that you're seeing in the paid employer number. Thank

Speaker Change: Great maybe just a follow up I know, it's really early.

David Travers: Tough to know whether you're dropping right now or if you see them.

David Travers: Further downturn I'm just curious is this a little bit more broad based or is it vertical specific but just any color you can provide on some of the stabilization trends that youre seeing in the paid employee number. Thank you.

David Travers: Sure, Ralph, this is Dave. So, yeah, what we see is that there's definitely strength in government and education, which we see largely as a catch-up from being industries that struggled to keep pace with wage increases during the post-COVID boom period. But the year-over-year trends we see broadly based are encouraging as we see signs of flattening, clearly not, you know, looking across the broad scope of calling a bottom, but also very encouraging.

David Travers: Sure Ralph this is Dave.

David Travers: So yes, what we see is that there is definitely strength.

David Travers: Government and education, which we see largely as a catch up from from being industries that struggled to keep pace with wage increases.

David Travers: During the post Covid boom period.

David Travers: The year over year trends, we see broadly based are encouraging.

David Travers: As we see signs of flattening clearly not looking across the broad scope of calling a bottom, but also seeing very encouraging signs.

David Travers: Great. Maybe if I could just ask one more, Dave. Just curious, you know, just in terms of the technology of Vertical, you know, what you have observed within technology. Thank you.

David Travers: Great.

Speaker Change: That's what Martin.

Ralph: Just curious just in terms of the technology vertical and what you are.

David Travers: Observed.

Ralph: Within the technology. Thank you.

David Travers: Yeah, technology continues to be one of the hardest-hit areas of job posting and hiring activity when we look on a year-over-year basis, and it continues to be extremely impacted and is sort of an outlier on the negative end to the same extent that, or in a similar way that, government and education are on the positive end of the spectrum. Okay, it's up.

Speaker Change: Technology continues to be one of the hardest hit.

David Travers: Areas of.

David Travers: Job postings on hiring activity when we look on a year over year basis continues to be extremely impacted and as sort of an outlier on the negative end to the same extent that debt.

David Travers: In a similar way that government and education are on the positive end of the spectrum.

Ralph Edward Schackart: Okay, that's helpful. Thank you.

Speaker Change: Okay. That's helpful. Thank you.

Ralph Edward Schackart: Yes.

Ralph Edward Schackart: Yeah.

Douglas Anmuth: Your next question comes from the line of Doug Anmuth with J.P. Morgan. Please go ahead.

Ralph Edward Schackart: Your next question comes from the line of Doug Anmuth with JP Morgan. Please go ahead.

Douglas Anmuth: Thanks so much for taking the questions. Guys, if you play out the scenario that things have troughed and maybe, you know, start to turn a bit here, can you just talk more about how that informs your investment approach and what are some of the immediate steps you take as you lean back in more? And then maybe, on the product side, can you provide an update on just how your AI matching technology is evolving and improving and perhaps what kind of lift you're seeing through different versions of the products? Thanks.

Douglas Anmuth: Thanks, so much for taking the questions guys. If you play out the scenario that things are trough and maybe start to turn a bit here can you just talk more about how that informs your investment approach and what are some of the immediate steps you would take as you lean back in more and then maybe just on the.

Douglas Anmuth: Also on the product side can you provide an update on just how your AI matching technology is evolving and improving and perhaps what kind of lift you're seeing through different versions of the products. Thanks.

Ian H. Siegel: Hey, this is Ian, and I'll take this question. I think one of the advantages that we have at Ziprecruiter is that we've been doing sales and marketing for such an extended period of time that we have sensitive instruments for measuring whichever way the appetite for recruiting services is going. And what you will see from us is that we will aggressively invest in any sort of return to normal or the end of the trough and the beginning of a climb. That said, and as excited as we are about the metrics that we're seeing right now, it is not a certainty, and it is definitely too early to call. So this could go either way.

Douglas Anmuth: Hey, this is Ian and I'll I'll take this question I think one of the advantages that we have a zip brokerage areas that we've been doing sales and marketing for such an extended period of time that we have sensitive instruments for measuring whichever way the appetite for recruiting services is going and where you were.

Ian H. Siegel: See from US is that we will aggressively invest into any sort of return to normal or the end of the trough in the beginning of a climb that said and is as excited as we are about the metrics that we're seeing right now it is not a certainty and it is definitely too.

Ian H. Siegel: Early to call. So this could go either way and I think the great thing about the position. We're in is we're well prepared for either scenario. So if things go well, we will be investing into that rapidly and we will be talking to you about that investment with great detail. If things continue as they are we will continue as they are and then of course, if things were to get.

Ian H. Siegel: And I think the great thing about the position we're in is we're well prepared for either scenario. So if things go well, we will be investing in that rapidly, and we will be talking to you about that investment in great detail. If things continue as they are, we will continue as they are. And then, of course, if things were to get worse, we would make appropriate austerity cost cuts in order to address that.

Ian H. Siegel: Worse, we would make appropriate austerity cost cuts in order to address that as.

Ian H. Siegel: As far as our AI goes, we're just excited about what's happening with our AI across a wide variety of areas within our business. First of all, Phil, our AI personal recruiter, has been truly transformational for the job seeker experience, and that's measured quantitatively through the multiple engagement metric improvements that we've seen in a variety of different areas of the site. That includes everything from onboarding suggested jobs to Phil pitching these candidates to employers.

Ian H. Siegel: As far as our AI goes.

Ian H. Siegel: We're just excited about what's happening with our AI across a wide variety of areas within our business.

Ian H. Siegel: First of all sell our AI personal recruiter has been truly transformational to the job seeker experience and that's measured quantitatively suite or multiple engagement metric improvements that we've seen in a variety of different areas of the site. That's everything from Onboarding suggested jobs to fill pitching these candidates to them.

Ian H. Siegel: I mean, one of the really telling metrics and impressive things that Phil was able to achieve is that now, for new job seekers that come to the site, as we reported a couple of quarters ago, over half of them are getting direct outreach from an employer within 24 hours of first signing up on ZipRecruiter. And a lot of that is being driven by this AI matchmaker role that Phil is playing for us.

Ian H. Siegel: Players I mean, one of the really telling metrics and impressive things thats all it was able to achieve this.

Ian H. Siegel: We now for new job seekers that come to the site as we as we reported a couple of quarters ago over half of them are getting direct outreach from an employer within 24 hours. The first setting up on separate rigor and a lot of that is being driven by this AI matchmaker raw that cell is playing for us. So that's just indicative of the kind of power that this technology has.

Ian H. Siegel: So that's just indicative of the kind of power that this technology has. But then, further, you can just see the persistent drumbeat of improvement across so many of the different algorithms that we use. And we're continuing to update you guys and report on these various improvements, which individually each have a small impact. But because of the pace with which they're being delivered, our service is just getting better and better, both for small customers and for large customers.

Ian H. Siegel: But then further you can just see the persistent drumbeat of improvement across so many of the different algorithms that we use and we're continuing to update you guys and report on these various improvements which individually each of them has a small impact, but because of the cadence with which they're being delivered our services just.

Ian H. Siegel: Getting better and better both for small customers and for large customers and it was really highlighted by this last quarter, where we see a 19% improvement in the average number of applicants that SMB jobs are getting which is a truly fantastic improvement when you consider the fact that the price did not change for these smbs and theirs.

Ian H. Siegel: And it was really highlighted by this last quarter where we saw a 19 percent improvement in the average number of applicants that SMB jobs are getting, which is a truly fantastic improvement when you consider the fact that the price did not change for these SMBs, and they're just getting 19 percent more value. And it's not just money for them. It's also valuable for the job seekers who are being directed to jobs that are in need of talent, where they have a higher probability of getting hired. And it's just a win-win for our marketplace.

Ian H. Siegel: 19% more value, it's not just value for them. It's also value for the job seekers, who are being directed to jobs that are in need of talent, where they have a higher probability of getting higher than it's just a win win for our marketplace.

David Travers: And this is Dave, just to add to that, to link the two parts of your question. You know, we've talked many times about the flexibility of our cost structure and our business model, and we flexed up and down as the market, sort of backdrop, has changed. AI has really been the consistent area of ongoing investment throughout the cycle. And you can see how R&D has been the most resilient and stable part of our cost structure for the past many quarters.

Speaker Change: And then David just to add onto that to link the two parts of your question.

David Travers: We've talked many times about the flexibility of our cost structure, and our business model and we flexed up and down as market.

David Travers: Sort of backdrop has changed.

David Travers: It has really been the consistent area.

Dave: Ongoing investments throughout the cycle and you can see how R&D has been the most resilient and stable part of our cost structure over the past many quarters and that's because of the investments we've been making and continue to make like Ian just discussed. So that's that's an area, where we're going to continue to press our advantage.

David Travers: And that's because of the investments we've been making and will continue to make, as Ian just discussed. So that's an area where we're going to continue to press our advantage. And we feel very good about the results we've generated so far. And we think we're just getting started.

David Travers: And we feel very good about the results we've generated so far and we think we're just getting started.

Douglas Anmuth: Great. Thank you, Ian and Dave.

Speaker Change: Great. Thank you Ian.

David Travers: Okay.

Josh Beck: Your next question comes from the line of Josh Beck with Raymond James. Please go ahead.

Douglas Anmuth: Your next question comes from the line of Josh Beck with Raymond James. Please go ahead.

Josh Beck: Yeah, thank you so much for taking the time to answer the question. Maybe just, yeah, I wanted to kind of start off with the margins. Obviously, you know, you came in kind of ahead of that, you know, the qualitative load of mid-teen guidance and the high-teens, and you kind of left that in place, the load of mid-teens, just given the backdrop. So, you know, I guess what investments are kind of... rising to the top, and you know, what would you need to see, I guess, kind of one way or the other, you know, in terms of the macro, to kind of adjust that framework?

Josh Beck: Yes. Thank you so much for taking the question maybe just wanted to start off with the margins. Obviously you came in.

Josh Beck: Kind of ahead of that.

Josh Beck: Qualitative low to mid teens guidance in the high teens and you kind of left that in place.

Josh Beck: Low to mid teens.

Josh Beck: Just given the backdrop, so I guess, what investments are kind of rising to the top and what would you need to see I guess kind of one way or the other.

Josh Beck: In terms of the macro to kind of adjust that framework.

Timothy G. Yarbrough: Thanks for the question, Josh. This is Tim.

Josh Beck: Yes. Thanks for the question Josh This is Tammy.

Tim: Yes, so the margin structure.

Tim: <unk> came in at the 17%. So like you said a bit better than the low to mid teens, we still feel very good about that for the rest of the year there might be some puts and takes as we go through.

Timothy G. Yarbrough: Yeah, so the margin structure came in at 17%, so like you said, a bit better than the low to mid-teens. We still feel very good about that for the rest of the year. There might be some put and takes as we go through Q3 and Q4 towards the back end of the year, but overall, that all assumes, again, a relatively consistent flattening across the board. But to the extent that we see the market softening or deteriorating a little bit more, then we will take action to address that in terms of cost reductions.

Timothy G. Yarbrough: Q3, and Q4 towards the back end of the year, but overall that all assumes again relatively consistent flattening across the board, but to the extent that we see the market softening or deteriorating a little bit more then we will take action to address that in terms of cost reductions but.

Timothy G. Yarbrough: But on the other hand, if things improve substantially, then we can ramp up that investment too. And the form of that investment in the near term would most likely be sales and marketing spend. Just as we see demand on the employer side opening up, we have a highly metric view of how we pursue those employers, and so we'd be happy to deploy capital with a long-term mindset.

Timothy G. Yarbrough: On the other hand, if things improve substantially then we can ramp up that investment too in the form of that investment in the near term would most likely be sales and marketing spend.

Timothy G. Yarbrough: Just as we see demand on the employer side opening up we have a highly metrics view of how we pursue those employers and so we'd be happy to deploy capital with a long term.

Timothy G. Yarbrough: Mindset.

David Travers: Yeah, Josh, this is Dave. Our go-to-market teams are exceptionally good at this. So as we read very rapidly what the results of go-to-market investments are, as an example, we then adjust. And so in Q1, you saw that level of investment appropriate to what we were seeing in the market. And to the extent things change, we will not be hesitant to change our level of investment based on the returns we see.

Timothy G. Yarbrough: Josh This is Dave our go to market teams are exceptionally good at this so as we read very rapidly what the results.

David Travers: In our market investments are as an example, we then adjust and so in Q1, you saw that level of investment is appropriate to what we were seeing in the market and to the extent things change we will not be hesitant to change our level of investment based on the returns we see in those returns we measure those in three different ways, we think.

David Travers: And those returns, you know; we measure those in three different ways. We think about cash-on-cash returns. We think about the long-term ROI or LTV, the CAC kind of returns. And we also think about the brand value we've built over time. And so there, you know, it's been an investment of hundreds of millions of dollars or over a billion dollars over a decade that has led us to have 80 percent brand awareness on both sides of the marketplace. And we see, even as we pull back over the past few quarters on that investment, that brand investment remains enduring. And so we're measuring all those things and calibrating our level of investment based on that.

David Travers: About the cash on cash returns, we think about the long term ROI or LTV to CAC kind of returns and we also think about the brand value. We built over time and so there it's been an investment.

David Travers: Hundreds of millions of dollars or over $1 billion over a decade that has led us to have 80% brand awareness on both sides of the marketplace and we see even as we pull back.

David Travers: Over the past few quarters on that investment that brand investment remains enduring and so we're measuring all of those things.

David Travers: And calibrating our level of investment based on that.

Ian H. Siegel: I just add to that, this is Ian, that where we will persistently invest in R&D because, much like we think of our brand as one of our assets, the quality of the experience we're delivering is a huge part of the reason for the incredible surge in traffic that we're experiencing year over year this year. Our traffic is up 60%, yes, because we do a lot of advertising, but also because the experience is fundamentally improving. And I can't say enough about Phil, who has become a conversational user interface that's guiding job seekers through their entire search experience. He's really an ally for these individuals as they try to find work.

Speaker Change: Add to this is Ian.

Ian H. Siegel: Where we will persistently invest in R&D because much like we think of our brand as one of our assets.

Ian H. Siegel: <unk> of the experience, we're delivering is a huge part of the reason for the incredible surge in traffic that we're experiencing year over year. This year, our traffic is up 60%, yes, because we do a lot of advertising, but also because the experience is fundamentally improving and I can't say enough about sell who has become.

Ian H. Siegel: Conversational UI, that's guiding job seekers to their entire search experience he's really an ally for these individuals as they try to find work and I think.

Ian H. Siegel: And I think we're feeling really excited about the future. So R&D is going to continue to be an area of focused investment. And then, on top of that, if we see a market turn, we will, of course, invest in it with our sales and marketing know-how.

Speaker Change: We're feeling really excited about the future. So R&D is going to continue to be an area of focused investment and then on top of that if we see a market turn we will of course invest into it with our sales and marketing knowhow.

Josh Beck: Okay, that's all super helpful. Maybe a follow-up, you know, just around enterprise: this iSIMS partnership seems pretty substantial. I was looking up, seems like they facilitated over 5 billion hires last year, and they're a leader in the ATS space. So, you know, could that move the needle? And then maybe more broadly, like, how should we be thinking about just the pace in terms of enterprise mixing up? Thank you. Thanks.

Ian H. Siegel: Okay.

Speaker Change: That's all Super helpful.

Speaker Change: A follow up.

Josh Beck: Just around the enterprise.

Josh Beck: <unk> partnerships seems pretty substantial I was looking up it seems like the.

Josh Beck: Facilitated over $5 billion hires last year and they are a leader in the Etfs space. So could that move the needle and then just maybe more broadly like how should we be thinking about just the pacing in terms of enterprise mixing up thank you.

David Travers: Thanks, Josh. This is Dave.

Speaker Change: Thanks, Josh.

Speaker Change: Great question, yes items.

Dave: As a significant player in the applicant tracking system space well into the top 10.

David Travers: Great question. Yeah, iSIMS, you know, is a significant player in the applicant tracking system space, well into the top 10 of a very fragmented market. So they're a very significant one and have some very large, you know, Fortune 500 clients, as well as a lot of, you know, more mid-market enterprise clients. And so it's an important one for us. It's part of our overall strategy, where we have 150 and growing ATS integrations, where the software systems are really the dashboard and the starting point every day for recruiters at these large enterprises to manage their entire workflow and for hiring managers to manage theirs.

David Travers: Of a very fragmented market. So there are very significant wanted to have some very large.

David Travers: A fortune 500 clients as.

David Travers: As well as a lot of more mid market enterprise clients.

David Travers: And so it's an important one for us it's part of our overall strategy, where we have 150 and growing Ats integrations, where the software systems that are really the dashboard and the starting point everyday for recruiters that these large enterprises to manage their entire workflow and for hiring managers to manage their workflow.

David Travers: Having our candidates seamlessly show up in their workflow without ever having to leave the ZipRecruiter marketplace, which we call ZipApply, is a huge part of that integration effort. And having their jobs appear in our organic search results, so that when we knock on the door of a new enterprise prospect for the first time, we're already delivering candidates to them and showing we've already shown them value before we show up to talk to them for the first time, is a really powerful model.

David Travers: Having our candidates seamlessly show up in their workflow without ever having to leave the ZIP recruiter marketplace, which we called ZIP apply is a huge part of that integration.

David Travers: That effort and having their jobs appear in our organic search results. So that when we knock on the door of a new enterprise.

David Travers: The prospect for the first time, we're already delivering candidates to them and showing we've already showed them value before we.

David Travers: Show up to talk to them for the first time is a really powerful model. So that's that's a significant investment in these 150 integrations items is a big one and it allows us to really seamlessly in a way that's better than than you can get from other marketplaces build to integrate and also gives us an incredible amount of data that we can then.

David Travers: So that's a significant investment in these 150 integrations. iSIMS is a big one and allows us to really seamlessly, in a way that's better than you can get from other marketplaces, be able to integrate, and also gives us an incredible amount of data that we can then use, where we see how our candidates perform over time via these integrations. And then our AI tunes the algorithm and tunes the results to drive better and better candidates.

David Travers: Use where we see how our candidates perform over time via these integrations and then our AI tunes. The algorithm in terms of the results to drive better and better candidate. So the more you work with ZIP recruiter the more you invest.

David Travers: So the more you work with ZipRecruiter, the more you invest in us, the better our results will get over time. And we see that happening. The enterprise part of the market, which we view to be half of the market overall in the United States on a dollar basis, is, you know, an area where we're underpenetrated. And given our rapidly growing scale in the job seeker side of the marketplace, we're increasingly compelling, given that 65% organic traffic growth is a place that we're really increasingly bullish. The more we learn, the more excited we are.

David Travers: With us the better our results will get over time, and we see that happening the enterprise part of the market, which we view to be asked of the market overall in the United States on a dollar basis.

David Travers: An area, where we're underpenetrated and given our rapidly growing scale.

David Travers: And the job seeker side of the marketplace, where increasingly compelling given that 65% organic traffic growth is a place where we're really increasingly bullish the more we learn the more excited we are but we also know that enterprises are slower to react to macro changes Dan smbs. So as we see the <unk>.

David Travers: But we also know that enterprises are slower to react to macro changes than SMBs. So as we see the macro backdrop change, we're very confident that enterprise demand will change as well, but it'll probably be a little bit slower. If past is prologue, it'll be a little bit slower to react than the SMB part of the market.

David Travers: Throw backdrop change, we're very confident that enterprise.

David Travers: Demand.

David Travers: Will change as well, but it will probably be a little bit slower if past is prologue it will be a little bit slower to react in the SMB part of the market.

Josh Beck: Thanks so much.

Speaker Change: Thanks, so much.

Brian Nicholas Fitzgerald: Your next question comes from the line of Brian Fitzgerald with Wells Fargo; please go ahead.

Josh Beck: Your next question comes from the line of Brian Fitzgerald with Wells Fargo. Please go ahead.

Brian Nicholas Fitzgerald: Hi, this is Stan Velikov for Bren. Thanks for taking our questions. Focusing on one of the growth pillars. In your marketplace, the job seeker, can you share more about the level of job seeker activity that we're seeing on the platform? Any trends like incremental profiles created, resumes added or updated, visits, and engagement? And has job seeker activity increased in the past few months given the incremental changes in the most recent job market reports?

Brian Nicholas Fitzgerald: Hi.

Brian Nicholas Fitzgerald: This kind of value.

Speaker Change: Brian Thanks for taking our questions I.

Speaker Change: I guess.

Brian Nicholas Fitzgerald: On.

Brian Nicholas Fitzgerald: Focusing the question on the one of the growth pillars.

Brian Nicholas Fitzgerald: In our marketplace.

Brian Nicholas Fitzgerald: The job seeker. So can you share more about the level of a job seeker activity that we're seeing on the platform any trends like incremental profiles created resumes.

Brian Nicholas Fitzgerald: Our updated visits engagements.

Brian Nicholas Fitzgerald: And.

Brian Nicholas Fitzgerald: Has the job seeker activity increased in the past few months given.

Brian Nicholas Fitzgerald: Incremental changes in the most recent to jump market reports.

Brian Nicholas Fitzgerald: Okay.

Ian H. Siegel: Hi, this is Ian. And what I would say is first, broadly, top of the funnel job seeker traffic coming in, which is the 65% growth year over year that we talked about, it's just way up. And there are a variety of contributing factors to that. But what I'm very excited about is not just the top of the funnel traffic, it's the down funnel metrics, it's the number of job seekers who are being actively targeted by an employer without having to reach out to them first.

Brian Nicholas Fitzgerald: Hi, This is Ian and what I would say is first broadly top of funnel jobseeker traffic coming in which is the 65% growth year over year that we talked to you about is just way up and there are a variety of contributing factors to that but what I'm very.

Ian H. Siegel: We're excited about is not just the top of funnel traffic. It's the down funnel metrics. It's the number of job seekers, who are being actively propositioned by an employer without having to go reach out to them first it's the number of applications per job that we are delivering jobs in the SMB space.

Ian H. Siegel: It's the number of applications per job that we're delivering to jobs in the SMB space. It's the number of times job seekers are shown jobs that they actually have an interest in. And should they apply, they will, in fact, be a top candidate for that job because the algorithmic matching just continues to improve. So really, it's the engagement metrics, in addition to the top of the funnel metrics, which have all been improving, and there are a variety of inputs that have been driving these metrics up.

Ian H. Siegel: The number of times job seekers are shown on jobs that they actually have interest in and should they apply.

Ian H. Siegel: Well in fact, EAA top candidate for that job because the algorithmic matching just continues to improve so really it's the engagement metrics. In addition to the top of funnel metrics, which have all been climbing and theres a variety of.

Ian H. Siegel: Some of it is Phil and the process of having a human voice guiding the job seeker through the experience. It's been a force multiplier everywhere that we have put them. Some of it is just straight technological algorithmic improvements, and some of it is just site experience, which we also continue to improve. But across the board, it's not just top of the funnel traffic; it's also engagement metrics on our site. And you can see that in a variety of different places that we have reported on.

Ian H. Siegel: Inputs that have been driving these metrics that some of it is Phil in the process of having a human voice guiding the job seeker through the experience that's been a force multiplier everywhere that we have put in some of it is just straight technological algorithmic improvements and some of it is just site experience, which we also.

Ian H. Siegel: We need to improve but across the board. It's not just top of funnel traffic. It's also the engagement metrics on our site and you can see that in a variety of different places that we have reported on but also it's interesting to see that the.

Ian H. Siegel: But also, it's interesting to see that the number of downloads of our mobile app, which is the preferred method of search for the really serious job seeker, has also been going up pretty significantly. And so, just generally, it's been a very good season for job seekers.

Ian H. Siegel: Number of downloads of our mobile App, which is the preferred method.

Ian H. Siegel: <unk> for the really serious job seeker has also been going up pretty significantly.

Speaker Change: Generally it's been a very good season for job seekers I just want to add on to double click on what Ian said about the 65% organic job seeker growth and how we think about that so over that same year over year period, we've seen our sales and marketing investments come down by 38%.

David Travers: I just want to add on to double-click on what Ian said about the 65% organic job seeker growth and how we think about that. So, over that same year-over-year period, we've seen our sales and marketing investment come down by 38%. And so when you add up organic and paid, according to third-party data we have, you know, in March, our total U.S. visits were up 13%, despite that reduction by 38% in sales and marketing.

David Travers: So when you add up organic and pay a according to.

David Travers: Third party data we have.

David Travers: In March our total U S visits was up 13%.

David Travers: Despite that reduction by 38% in sales and marketing. So that's the power of those product investments and improvements that the yen was just talking about on those brand investments we.

David Travers: So that's the power of those product investments and improvements that Ian was just talking about, and those brand investments that are for the long term that we referenced earlier. And the net impact of that is that, you know, we're growing in March more than 10 percentage points faster than any of our largest competitors on the job seeker front in the U.S.

David Travers: That are over the long term that we referenced earlier.

David Travers: The net impact of that is that we're growing over in March over 10 percentage points faster than any of our largest competitors.

David Travers: On the job seeker front in the U S.

David Travers: Yeah.

Brian Nicholas Fitzgerald: I got it. Thank you.

Speaker Change: Got it thank you.

Brian Nicholas Fitzgerald: Okay.

Mark Stephen F. Mahaney: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Brian Nicholas Fitzgerald: Your next question comes from the line of Mark Mahaney with Evercore. Please go ahead.

Luke: Hey, this is Luke speaking on behalf of Mark. What are some key data points suggesting general market share shifts or any evidence you can offer that you're successfully gaining share versus your competitors? And then, just a kind of second question, at the peak of the cycle, how high can revenue per paid employer go? Like, what are some opportunities out there to grow revenue per paid employer over time?

Mark Stephen F. Mahaney: Hey, this is Luke on for Mark.

Luke: What are some key data points, suggesting just general market share shifts or any evidence you can offer that youre successfully gaining share versus your competitors and then just kind of second question in the peak of the cycle how high can the revenue per paid employer go like what are some opportunities out there to grow revenue per paid in <unk>.

Luke: Lawyer over time thanks.

David Travers: Thanks.

Speaker Change: Okay great.

David Travers: Great. This is Dave.

David Travers: This is Dave I'll take the first part of that so it's a two sided marketplace and so I was thinking about market share in two different ways, one I just referenced which is.

David Travers: I'll take the first part of that. So, you know, it's a two-sided marketplace, and so I would think about market share in two different ways. One I just referenced is growing the job seeker side in terms of visits year over year by 10 percentage points faster than any other major player in our space. So, clearly, and we've seen over time, a good historical correlation that, you know, when there's a major move in job seeker market share, employer dollars will follow, and we've seen that with multiple players over multiple years.

David Travers: Growing the job seeker side in terms of visits year over year by 10 percentage points faster than any other major player in our space. So clearly there and we've seen over time, a good historical correlation that when there is a major move in job seeker market share employer dollars will follow.

David Travers: We've seen that over multiple players over multiple years.

David Travers: And then on the employer side of things, you know, we've seen large public staffing firms go out of business. We don't have any pure play online comps, but large public staffing firms have released quarterly performance for Q1, and we saw, you know, U.S. permanent placement revenue as low as 40% down year over year, which we think, as we look across the market and our partners' data and our scope of the entire U.S. labor market, is a pretty good indicator of what's going on out there. And so, you know, just stepping back about where we are in the macro world and how to make sense of that.

David Travers: And then on the employer side of things, we've seen large public staffing firms.

David Travers: We don't have any pure play.

David Travers: Online comps, but large public staffing firms have released.

David Travers: Quarterly performance for Q1, and we saw.

David Travers: Permanent placement revenue as low as 40% down year over year, which we think as we look across the market and our partners' data in our scope of the entire U S. Labor market, that's a pretty good indicator of what's going on out there and so just stepping back about where we are in the macro and how to make sense of that.

David Travers: The U.S. Bureau of Labor Statistics released that in March, the total number of hires in the U.S. was 5.5 million, seasonally adjusted. And so if you look back over the last couple of recessions, in 2007, right before the global financial crisis, we were actually above 5.5 million in 2007. And then back to the previous recession, before the dot-com crash in early January 2001, we were also above 5.5 million. So, if you think back over the past 23 years, the GDP of the U.S., adjusted for inflation, in real terms, has grown 61 percent.

David Travers: The U S Bureau of Labor Statistics released.

David Travers: In March the.

David Travers: Total hires in the U S was $5 5 million seasonally adjusted.

David Travers: And so if you look back over the last couple of recessions in 2007 right before the Dfc.

David Travers: We were actually above $5 5 million in 2007, and then back to the previous recession before the dot com crash in early January 2001, we were also above $5 $5 million. So if you think back over the past 23 years.

David Travers: The GDP of the U S. Adjusted for inflation in real terms has grown 61% the labor force or the number of employed people has grown 19%.

David Travers: The labor force, or the number of employed people, has grown 19 percent. But over that same time period, the number of hires last month was down 4 percent. And so that's an extremely unusual set of backdrop conditions.

David Travers: Over that same time period, the number of hires last month was down 4% and so thats an extremely unusual.

David Travers: <unk>.

David Travers: Backdrop conditions and so when we think about how we're doing in the broad scope of that in our games with 65% growth in organic job seeker growth, we feel very good about how we're doing against the market.

David Travers: And so when we think about how we're doing in the broad scope of that and our gains with the 65 percent growth in organic job seeker growth, we feel very good about how we're doing against the market.

Timothy G. Yarbrough: And Luke, this is Tim. I'll take the second part of the question about revenue per paid employer and where we see that going. So one of the long-term trends that we've seen in this business is that revenue per paid employer has reliably trended up over time. And so that's true when you look at it on a consolidated quarterly basis. And that's also true, perhaps more interestingly, when you look at it on an employer cohort basis.

David Travers: Luke This is Tim I'll take the second part of the question about revenue per paid employer, where we see that going so one of the long term trends that we've seen in this business is that the revenue per paid employer has reliably trended up over time and so that's true when you look at it on a consolidated quarterly basis and Thats also true perhaps more interestingly when you look at.

Tim: On a.

Tim: Lawyer cohort basis. So we've disclosed this a couple of times in the past and our annual filings, but if you look at the monthly revenue per employer for annual cohort reliably those numbers trend up into the right.

Timothy G. Yarbrough: So, we've disclosed this a couple of times in the past in our annual filings, but if you look at the monthly revenue per employer per annual cohort, reliably, those numbers trend up and to the right as each cohort ages. And what we've seen in this last super cycle, and the downside is that there have been just a few exceptions, but the larger trends, I think, still hold to be very clearly true.

Timothy G. Yarbrough: Each cohort ages and what we've seen in this last super cycle and the downside is that there have been just a few exceptions, but the larger trends I think so to be very clearly true.

Timothy G. Yarbrough: Now, where do we see this number going? We have a lot of confidence that there's a lot of headroom and revenue per paid employer. And to that, we can look at the offline solutions out there right now that are often charging anywhere from 15 to even 30 percent of first year salaries. We're not in the same ballpark as that. And so, as our technology gets better and as this overall addressable market of $250 billion starts shifting more towards online solutions, we feel like we have much more pricing power as our technology gets better and better, as we continue to win share away from the offline competition.

Speaker Change: Now where do you see this number going.

Timothy G. Yarbrough: We have a lot of confidence that there is a lot of headroom in revenue per paid employer.

Timothy G. Yarbrough: That we can look at.

Timothy G. Yarbrough: Offline solutions out there right now that are often charging anywhere from 15% to 30%. So first your salary we're not in the same ballpark as that and so as our technology gets better and as this overall addressable market.

Timothy G. Yarbrough: $250 billion sort of shifting more towards the online solutions, we feel like we have much more pricing power as our technology gets better and better as we continue to win share away from the offline competition.

Luke: Great! Thank you so much.

Speaker Change: Great. Thank you so much.

Justin Tyler Patterson: Your last question comes from the line of Justin Patterson with KeyBank Capital Markets. Please go ahead.

Luke: Your last question comes from the line of Justin Patterson with Keybanc capital markets. Please go ahead.

Myles Shkubiak: Hi there, thanks for taking the question. This is Myles Shkubiak on behalf of Justin.

Justin Tyler Patterson: Hi, there. Thanks for taking the question this is miles kubiak on for Justin.

Myles Shkubiak: First, I just would love to know or hear your thoughts around visibility currently compared to the beginning of the year. And then second, I just would love to hear more about the efforts to improve uh, improve application rates now that you are seeing strong job seeker trends and the impact that can have on the business. Thank you.

Miles Christopher Jakubiak: First just would love to know or hear your thoughts around visibility currently compared to the beginning of the year.

Myles Shkubiak: And then second.

Myles Shkubiak: Just would love to hear more about the efforts to improve.

Myles Shkubiak: To improve application rates for application rates now that you have.

Myles Shkubiak: We're seeing strong job secret trends and the impact second half of the business. Thank you.

Timothy G. Yarbrough: Yeah, this is Tim. I'll take the first part of the question. So on visibility, I would say the future is still pretty murky because we haven't seen that return to seasonality that we would normally see in a year much more like 2019, for example. So while we're encouraged by this sense of stabilization and by paid employers being up modestly on a quarter for quarter basis, I wouldn't say that we're calling a trough or anything like that.

Myles Shkubiak: Yes. This is Dan I'll take the first part of the question so on visibility.

Timothy G. Yarbrough: Say features still pretty murky, because we haven't seen that return to seasonality that we would normally see.

Timothy G. Yarbrough: And you are much much more like 2019 for example.

Timothy G. Yarbrough: So while we are encouraged by these signs of stabilization in bi paid employers being up modestly on a quarter over quarter basis, I wouldn't say that.

Timothy G. Yarbrough: So I'd say our level of visibility still remains fairly low, which is why we're still guiding one quarter out. But again, there's more optimism around the trends that we've seen. And this is Ian, who will, I'll take the back of your question.

Speaker Change: We are calling a trough or anything like that so I'd say our level of visibility still remains fairly low which is why we're still guiding one quarter out but again there is more optimism around the trends that we've seen.

Ian H. Siegel: And this is Ian, who will, I'll take the back of your question and when we look at our marketplace. We're very keen to understand what drives good connections between employers and job seekers. That is where a lot of our science goes, and that manifests itself in a number of the product decisions we make, whether it's driving employers to outreach to job seekers so that it's the employer going first, which job seekers love, or it's explaining to employers in such clear terms and making it so easy to display that they have salaries in their job descriptions because that materially increases the number of applicants who will actually apply to said job.

Timothy G. Yarbrough: And this is Ian <unk>, who will I'll take the back half of your question and when so when we look at.

Ian H. Siegel: At our marketplace.

Ian H. Siegel: Barry.

Ian H. Siegel: Keen to understand what drives good connections between employers and job seekers that is where a lot of our science goes and that manifests itself in a number of the product decisions, we make whether it's driving employers to outreach to job seekers. So that it's the employer going first with job seekers.

Ian H. Siegel: Or it's explaining to employers and such clear turns and making it so easy to display that they have salary on their job descriptions because that materially increases the number of applicants who will actually apply to said job.

Ian H. Siegel: And so in our marketplace, we are always looking for different levers that we can take advantage of in order to increase that application rate. Over the last several quarters, I mean, we have launched a number of improvements that have been driving up this application rate, which has consequently been driving up job seeker satisfaction, which is now manifesting in the surge in traffic that you are seeing today. This is not just about advertising.

Speaker Change: And so in our marketplace. We are always looking for the different levers that we can take advantage of in order to increase that application rate okay.

Ian H. Siegel: Over the last several quarters I mean, we have launched a number of improvements that have been driving up this application rate, which is consequently been driving up job seeker satisfaction, which is now manifesting in the surge in traffic that you are seeing today. This is not just about advertising. This is also a.

Ian H. Siegel: This is also about actually delivering, and we feel really confident that we are already delivering an exceptional experience, but we're particularly excited about where this will go over time. And, like I said, it's not just top of the funnel traffic. It's engagement metrics that are up, and we believe that that is a trend that we can persistently drive up and to the right. Just as Tim was talking about revenue per paid employer, we think satisfaction is something where we still have headroom to grow.

Ian H. Siegel: That actually delivering and we feel really confident that we are delivering already an exceptional experience, but we're particularly excited about where this will go over time and like I said, it's not just top of funnel traffic. It's engagement metrics that are up and we believe that that is a trend that we can persistently drives.

Ian H. Siegel: Up into the right as just as Tim was talking about revenue per paid employer. We think satisfaction is something where we still have headroom to grow.

Ian H. Siegel: Thank you helpful.

Ian H. Siegel: Okay.

Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Everyone else has left the call.

Speaker Change: Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Speaker Change: Everyone else has left to come.

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