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 worse, we would make appropriate austerity cost cuts in order to address that. As far as our AI goes, we are 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 to the job seeker experience and that’s measured quantitatively through the multiple engagement metric improvements that we have seen in a variety of different areas of the site that’s everything from onboarding to suggested jobs to Phil pitching these candidates to employers.
I mean, one of the really telling metrics and impressive things that Phil was able to achieve is, we now for new job seekers that come to the site, as we reported a couple 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. 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 are 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 are being delivered, our service is just 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 they are just getting 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 hired and it’s just a win-win for our marketplace.
David Travers: And this is Dave, just to add on to that, to link the two parts to your question. We have talked many times about the flexibility of our cost structure and our business model, and we flexed up and down as 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 over the past many quarters and that’s because of the investments we have been making and continue to make, like Ian just discussed. So that’s an area where we are going to continue to press our advantage and we feel very good about the results we have generated so far and we think we are just getting started.
Doug Anmuth: Great. Thank you Ian and Dave.
Operator: 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 question. Maybe just, wanted to kind of start off with the margins, obviously, you came in kind of ahead of that, kind of qualitative, low- to mid-teens guidance and in the high-teens and you kind of left that in place, the low- to mid-teens, 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, in terms of the macro to kind of adjust that framework?
Tim Yarbrough: Thanks for the question Josh. This is Tim. Yeah. So the margin structure 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 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 than we will take action to address that in terms of cost reductions. 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 would be happy to deploy capital with a long=term 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. And those returns, we measure those in three different ways. We think 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 of hundreds of millions of dollars or over a $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 over the past few quarters on that investment, that brand investment remains enduring and so we are measuring all those things and calibrating our level of investment based on that.
Ian Siegel: I will just add to that. This is Ian. That where we will persistently invest is in R&D because much like we think of our brand as one of our assets, the quality of the experience we are delivering is a huge part of the reason for the incredible surge in traffic that we are 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 UI that’s guiding job seekers through their entire search experience. He’s really an ally for these individuals as they try to find work and I think we are 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 just around enterprise. This iCIMS partnership seems pretty substantial I was looking up, it seems like they facilitated over 5 million hires last year and they are a leader in the ATS 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.
