ZipRecruiter Acquires People-Powered Job Comparison Site Breakroom

Rhea-AI Summary

ZipRecruiter (NYSE: ZIP) has acquired Breakroom, a UK-based employer review platform focused on frontline industries. ZipRecruiter plans to launch Breakroom in the United States to provide job seekers with authentic insights about potential employers. Breakroom collects data from frontline workers on various aspects of employment, offering community-powered ratings for jobs.

The acquisition aims to empower job seekers with better information about potential employers, leading to improved job matches and outcomes. Breakroom, which will continue to operate as an independent brand, has built a platform featuring hundreds of thousands of reviews since its launch in 2020. The platform also provides employers with actionable insights and tools to improve their ratings, job offerings, and employee retention.

Positive

• Acquisition of Breakroom expands ZipRecruiter's service offerings
• Planned launch of Breakroom in the US market, potentially increasing ZipRecruiter's user base
• Addition of community-powered job ratings may enhance ZipRecruiter's value proposition
• Potential for improved job matching outcomes, which could increase platform effectiveness
• Acquisition provides access to hundreds of thousands of employer reviews

Negative

• Financial terms of the acquisition not disclosed, making it difficult to assess immediate impact on ZipRecruiter's finances
• Integration of Breakroom into ZipRecruiter's operations may require additional resources and time

Insights

Financial Analyst

ZipRecruiter's acquisition of Breakroom is a strategic move to enhance its value proposition in the competitive job marketplace sector. While financial terms weren't disclosed, this acquisition could potentially boost ZipRecruiter's market share and revenue streams. The integration of Breakroom's employer review platform may increase user engagement and attract more job seekers, potentially leading to higher subscription rates from employers.

However, the impact on ZipRecruiter's financials in the short term might be , as Breakroom will operate independently and its U.S. launch is still pending. Investors should monitor for synergies between the platforms and any significant uptick in user metrics in upcoming quarterly reports. The move aligns with industry trends of providing more transparent job information, which could strengthen ZipRecruiter's competitive position against rivals like Indeed and Glassdoor.

Market Research Analyst

This acquisition signals ZipRecruiter's focus on the growing demand for transparency in the job market, especially among younger, digitally-native workers. By targeting frontline industries like retail and hospitality, ZipRecruiter is tapping into a large, often underserved segment of the workforce. The move could potentially differentiate ZipRecruiter from competitors by offering more authentic, community-driven insights.

The emphasis on actionable employer insights and tools to improve job quality could attract more businesses to the platform, potentially increasing ZipRecruiter's B2B revenue. However, the success of this strategy will depend on Breakroom's ability to maintain data quality and user engagement at scale, especially as it expands into the U.S. market. Investors should watch for adoption rates and user growth metrics following the U.S. launch to gauge the acquisition's impact.

Tech Expert

ZipRecruiter's acquisition of Breakroom represents a technological enhancement to their existing platform. Breakroom's community-powered ratings system likely employs advanced data analytics and machine learning to provide accurate job insights. This could significantly improve ZipRecruiter's matching algorithms, leading to better job recommendations and increased user satisfaction.

The integration challenge lies in seamlessly incorporating Breakroom's features into ZipRecruiter's ecosystem while maintaining the independent brand. Success will depend on effective API integration and data synchronization between the platforms. Investors should look for updates on the technical integration process and any improvements in ZipRecruiter's job matching accuracy or user retention rates as indicators of the acquisition's technological success.

ZipRecruiter to bring the innovative employer review platform to the United States, empowering job seekers with authentic and comparable insights

SANTA MONICA, Calif.--(BUSINESS WIRE)-- ZipRecruiter®, a leading online employment marketplace, today announced that it has acquired Breakroom, a UK-based employer review platform focused on frontline industries such as retail and hospitality. In line with its mission to actively connect job seekers with their next great opportunity, ZipRecruiter plans to launch Breakroom in the United States to empower workers with the job insights they need to apply with confidence. Breakroom will continue to operate as an independent brand.

ZipRecruiter Acquires People-Powered Job Comparison Site Breakroom (Graphic: Business Wire)

Breakroom collects data from frontline workers on pay, hours, flexibility, work conditions, culture, and more to provide community-powered ratings for jobs. These ratings give an authentic and transparent view of what it’s like to work for different employers, which, in turn, helps job seekers apply for the right jobs for their individual needs.

“While traditional employer review sites have predominantly become places where workers go to voice their job dissatisfaction, Breakroom collects insights about what the day-to-day is like working for different companies,” said Ian Siegel, Founder & CEO of ZipRecruiter. “Breakroom’s ratings give job seekers a clear picture of what it’s really like to work for an employer, setting better expectations than a traditional job description. We know that when job seekers better understand the roles they’re applying for, it leads to better outcomes for both sides of our marketplace.”

Since its launch in 2020, Breakroom has built a platform that resonates with the rising digitally native workforce in an authentic way and features hundreds of thousands of reviews. These reviews also allow Breakroom to provide employers with highly actionable insights, including recommendations for how to improve their ratings, jobs, and ultimately, retention. Breakroom also supports employers in their efforts to create good jobs by providing employer branding and insights, recruitment marketing tools, and quality candidate sourcing.

“ZipRecruiter and Breakroom share a common mission to connect the right job seekers to the right employers. We believe everyone deserves a good job, and that all jobs have the potential to be good ones when both job seekers and employers are armed with objective and actionable information. We’re looking forward to teaming with ZipRecruiter to scale our platform so we can bring this powerful tool—and ultimately great employment matches—to even more job seekers and employers,” said Anna Maybank, Founder & CEO, Breakroom.

For more information, visit www.breakroom.cc.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding Breakroom’s independent operation and ZipRecruiter’s plans to launch it in the United States. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements, including our ability to attract and retain employers and job seekers; our ability to compete with well-established competitors and new entrants; our ability to achieve and/or maintain profitability; our ability to maintain, protect and enhance our brand and intellectual property; our dependence on macroeconomic factors; our ability to maintain and improve the quality of our platform; our dependence on the interoperability of our platform with mobile operating systems that we do not control; our ability to successfully implement our business plan during a global economic downturn that may impact the demand for our services or have a material adverse impact on our and our business partners’ financial condition and results of operations; our ability and the ability of third parties to protect our users’ personal or other data from a security breach and to comply with laws and regulations relating to consumer data privacy and data protection; our ability to detect errors, defects or disruptions in our platform; our ability to comply with the terms of underlying licenses of open source software components on our platform; our ability to expand into markets outside the United States; our ability to achieve desired operating margins; our compliance with a wide variety of U.S. and international laws and regulations; our reliance on Amazon Web Services; our ability to mitigate payment and fraud risks; our dependence on our senior management and our ability to attract and retain new talent; and the other important factors discussed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended June 30, 2024 that we will file with the U.S. Securities and Exchange Commission. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. ZipRecruiter does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.

About ZipRecruiter

ZipRecruiter® (NYSE:ZIP) is a leading online employment marketplace that actively connects people to their next great opportunity. ZipRecruiter’s powerful matching technology improves the job search experience for job seekers and helps businesses of all sizes find and hire the right candidates quickly. ZipRecruiter has been the #1 rated job search app on iOS & Android for the past seven years¹ and is rated the #1 employment job site by G2.² For more information, visit www.ziprecruiter.com.

¹ Based on job seeker app ratings, during the period of January 2017 to January 2024 from AppFollow for ZipRecruiter, CareerBuilder, Glassdoor, Indeed, LinkedIn, and Monster.
² Based on G2 satisfaction ratings as of December 18, 2023.

About Breakroom

Breakroom is an employer review and job marketplace platform. Featuring reviews for thousands of UK employers, Breakroom’s proprietary data on pay, hours, flexibility and culture are sourced straight from job seekers to help candidates learn about and apply to the right roles and employers. With a focus on frontline workers, employers can use their enhanced profiles to showcase what it’s really like to work for the company and attract more engaged candidates. For more information, visit www.breakroom.cc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240806110760/en/

ZipRecruiter

Claire Walsh, Press Relations

press@ziprecruiter.com

Source: ZipRecruiter, Inc.

FAQ

What company did ZipRecruiter (ZIP) acquire?

ZipRecruiter acquired Breakroom, a UK-based employer review platform focused on frontline industries such as retail and hospitality.

How will the Breakroom acquisition affect ZipRecruiter's (ZIP) US operations?

ZipRecruiter plans to launch Breakroom in the United States to provide job seekers with authentic insights about potential employers, potentially expanding its service offerings and user base.

What unique feature does Breakroom bring to ZipRecruiter (ZIP)?

Breakroom brings community-powered job ratings based on data collected from frontline workers on pay, hours, flexibility, work conditions, and culture, providing a transparent view of different employers.

How many reviews does Breakroom currently have?

Breakroom features hundreds of thousands of reviews since its launch in 2020.