ZipRecruiter Investor Presentation Deck
KEY OPERATING METRICS AND
NON-GAAP FINANCIAL MEASURES
This presentation includes certain key operating metrics, including Quarterly Paid
Employers and Revenue per Paid Employer, and non-GAAP financial measures, including
Adjusted EBITDA and Adjusted EBITDA margin.
We define Paid Employers as any employer(s) (or entities acting on behalf of an employer)
on a paying subscription plan or performance marketing campaign for at least one day.
Paid Employer(s) excludes employers from our Job Distribution Partners or other indirect
channels, employers who are not actively searching for candidates, but otherwise have
access to previously posted jobs, and employers on free trial. Job Distribution Partners are
defined as third-party sites who have a relationship with us and advertise jobs from our
marketplace. Quarterly Paid Employers means, with respect to any fiscal quarter, the
count of Paid Employers during such fiscal quarter. Revenue per Paid Employer is the total
company revenue in a particular period divided by the count of Quarterly Paid Employers
in the same period.
We define Adjusted EBITDA as our net income (loss) before interest expense, other
(income) expense, net, income tax expense (benefit) and depreciation and amortization,
adjusted to eliminate stock-based compensation expense. Adjusted EBITDA margin
represents Adjusted EBITDA as a percentage of revenue for the same period.
Management and our board of directors use these key operating metrics and non-GAAP
financial measures as supplemental measures of our performance because they assist us
in comparing our operating performance on a consistent basis, as they remove the impact
of some items not directly resulting from our core operations. We also use these key
operating metrics and non-GAAP financial measures for planning purposes, including the
preparation of our internal annual operating budget and financial projections, to evaluate
the performance and effectiveness of our strategic initiatives and to evaluate our capacity
for capital expenditures to expand our business.
Adjusted EBITDA and Adjusted EBITDA margin should not be considered in isolation, as
an alternative to, or superior to net income (loss), revenue, cash flows or other measures
derived in accordance with GAAP. These non-GAAP measures are frequently used by
analysts, investors and other interested parties to evaluate companies in our industry.
Management believes that the presentation of non-GAAP financial measures is an
appropriate measure of operating performance because they eliminate the impact of some
expenses that do not relate directly to the performance of our underlying business.
Proprietary and Confidential. © 2023 ZipRecruiter, Inc. All Rights Reserved.
These non-GAAP financial measures should not be construed as an inference that our
future results will be unaffected by unusual or other items. Additionally, Adjusted EBITDA
and Adjusted EBITDA margin are not intended to be a measure of free cash flow for
management's discretionary use, as they do not reflect our tax payments and certain other
cash costs that may recur in the future, including, among other things, cash requirements
for costs to replace assets being depreciated and amortized. Management compensates
for these limitations by relying on our GAAP results in addition to using Adjusted EBITDA
and Adjusted EBITDA margin as supplemental measures of our performance. Our
measures of Adjusted EBITDA and Adjusted EBITDA margin used herein are not
necessarily comparable to similarly titled captions of other companies due to different
methods of calculation.
See the tables above regarding reconciliations of these non-GAAP financial measures to
the most directly comparable GAAP measures.
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