Kishan Patel

Kishan Patel asked about ZipRecruiter's strategy for optimizing its platform for GenAI discovery and agentic search or engagement by job seekers.

Answer

Co-founder and CEO Ian Siegel highlighted ZipRecruiter's long-standing identity as an AI-powered marketplace, leveraging billions of interactions for matching. He pointed to recent AI-driven features like suggested screening questions, which have seen massive adoption and fundamentally changed application processing by providing employers with better signals. He anticipates many more AI-driven enhancements to the platform in the coming years, enhancing the marketplace.

Kishan Patel from Raymond James asked about ZipRecruiter's strategy for optimizing its platform for agentic search and job seeker engagement, building on its GenAI discovery efforts.

Answer

Ian Siegel, Co-founder and CEO of ZipRecruiter, emphasized the company's long-standing AI focus, citing its matching engines and the high adoption of new AI-driven features like suggested screening questions, anticipating more AI enhancements in the future.

Kishan Patel asked about the potential impact of agentic legal tools and software on LegalZoom's core workflows and human expert network, and trends in AI search impacting traffic and conversions.

Answer

Jeffrey Stibel, Chairman and Chief Executive Officer of LegalZoom.com, views the proliferation of agentic legal tools as an accelerant, both internally for scaling human-in-the-loop strategy more cost-effectively and externally for increasing the serviceable addressable market (SAM). He noted that while it's early, trends show less traffic from traditional search engines and more from AI queries, which LegalZoom sees as a key opportunity. Noel Watson, Chief Operating Officer and Chief Financial Officer, added that AI-driven traffic tends to be higher qualified and converts better.

Kishan Patel asked about the potential impact of agentic legal tools and software on key workflows and billing terms, and trends in how AI search is affecting traffic and conversions.

Answer

Jeffrey Stibel, Chairman and Chief Executive Officer, views agentic legal tools as an accelerant, both internally for cost-effective scaling of the human-in-the-loop strategy and externally for increasing the serviceable addressable market (SAM). Regarding AI search, Stibel noted that while it's early, trends show a shift from traditional search engines to AI queries, which LegalZoom sees as a key opportunity. Noel Watson, Chief Operating Officer and Chief Financial Officer, added that AI-driven traffic tends to be higher qualified and converts better.

Kishan Patel, on for Josh Beck, asked for an overview of the competitive environment, including SMB players like ZenBusiness and competitors on the consumer side. He also questioned management on the macro environment, customer spending patterns, and the outlook for a rebound in new business formations.

Answer

CEO Jeff Stibel stated that the primary competition is not other online players but the vast market of traditional small law firms, positioning LegalZoom's tech and legal network as a key advantage. COO & CFO Noel Watson described the macro environment as softer year-over-year but structurally higher than pre-pandemic levels, citing tailwinds like remote work but maintaining a cautious 'middle-of-the-road view' on a potential rebound.

Kishan Patel asked what changes are needed for the Restaurants, Retail & Other (RR&O) advertiser base to stabilize and improve, and how Yelp prioritizes these changes. He also sought clarification on Hatch's margin trajectory goals post-acquisition and its impact on the full-year Adjusted EBITDA outlook.

Answer

COO Jed Nachman attributed RR&O headwinds to a weakened consumer and high input costs, but expressed confidence in Yelp Assistant's ability to position the company for a return to in-restaurant dining. He also highlighted the success of Yelp Host, which will soon offer food ordering. CFO David Schwarzbach stated that for Hatch, the immediate focus is on driving top-line growth rather than margin, which is reflected in the Adjusted EBITDA guidance, with an expectation for margins to converge with typical SaaS profiles over time.

Kishan Patel from Raymond James asked what changes are necessary for Yelp's Restaurants, Retail, and Other (RR&O) advertiser base to stabilize and improve, and how Yelp prioritizes these changes for the upcoming quarters. He also requested more color on the margin trajectory goals for Hatch post-acquisition and its impact on the full-year Adjusted EBITDA outlook compared to the core business.

Answer

Jed Nachman, COO of Yelp, acknowledged headwinds in RR&O due to a weakened consumer and high input costs for restaurants. He expressed belief in the eventual return of in-restaurant dining and highlighted Yelp Assistant's cross-category expansion as a key investment for future positioning. Nachman also pointed to the success of Yelp Host, with plans to add food ordering, as an AI-based SaaS tool to drive opportunities in this segment. David Schwarzbach, CFO of Yelp, stated that for Hatch, the immediate focus is on driving top-line growth due to its rapid expansion, rather than immediate margin expansion. He expects Hatch's margin profile to converge with typical SaaS margins over time and confirmed that Hatch's operating expenses are reflected in the full-year Adjusted EBITDA guidance, with retention amounts being added back to EBITDA.

Kishan Patel, on behalf of Josh Beck, asked about traffic driven by AI platforms like Perplexity and the nature of conversations with other GenAI companies. He also inquired about the company's advertising budget and priorities for 2025, following the reduction in paid search spend.

Answer

CEO Jeremy Stoppelman described traffic from Perplexity as immaterial currently but confirmed active conversations with various companies interested in Yelp's trusted content. CFO David Schwarzbach reiterated that Yelp's marketing approach remains highly disciplined and return-focused, and the company continues to experiment and spend efficiently across various marketing channels.