BZ - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Third Quarter 2021 Financial Results Conference Call. At this time all participants are in a listen-only mode. After the speakers’ presentation, there will be a Q&A session. Today’s conference is being recorded. At this time, I would like to turn the conference over to Ms. Investor of Head Wang, Relations. Wendy ma’am. Please go ahead,

Wendy Wang

morning Thank our to good conference you, Good evening operator. everyone. third Welcome call. and quarter earnings XXXX

Jonathan Zhang. are and Director Joining Founder, CFO, Peng Mr. and Yu today our Zhao; Phil me Mr. and our CEO, Chairman

we actual performance or achievements to cause and materially information to remind forward-looking undertake the control, start, different. uncertainties, reliance forward-looking as known unknown not this observations not statements except may that undue of you today’s you any on based required be results, update and law. like company which obligation not and do may risks, company’s The statements, involve which to company place forward-looking are to would on under other cautions management’s we by that discussion Before contain current the factors expectations or

discuss will financial During also for call, certain today’s purposes comparison non-GAAP only. management measures

financial to issued please a For and reconciliation of definition today. GAAP earlier the non-GAAP see of a results, measures earnings financial non-GAAP release

addition, I conference our CEO. With Founder, webcast and ir.jpn.com. will the at website be available that, on Chairman In of now to call Jonathan, replay call our turn will this a

Jonathan Peng Zhao

our behalf [Foreign sincere I Welcome XXXX everyone. your and to call. for our trust users On to quarter support. thanks Language] like conference to of Hello, earnings company, entire our our third would express and investors

it first is is quarter the reporting public complete special also a period company period. and third The our after went

the Zhipin since X, with July As review. the compliance many know, suspended been of app XXXX has registration you user BOSS already new in on cybersecurity

has suspension to establishment, team. of grown has which brought As a company, its since our the new challenges registration great user rapidly

can of company have strong, go for a better of decent In to billion RMBX.XX this reinforcing an XXX% our taken our our the the our adjusted year-on-year made also I numbers. quarter, of some focus over big We [Foreign third which total to revenue impact users last average quarter MAU increase BOSS aspire an progress chance not and recorded our month. which key stronger quarter, on able this bigger. a the believe app results with the and registration year. have XX.X%. Language] to on us existing a to third in was this an necessarily has reached net the enterprise suspension new throughout The might expense indeed but business. core share-based managed start improving opportunity million, be competencies that of excluding of rate million. had we year-on-year our become quarter, substantial XX.X third which entire However, Zhipin We become as representing RMBXXX in on an and compensation user to development of grow Let’s definitely growth [Foreign Language] achieve service income the

the we believe our by of was indicators. remains performance However, that the model many robustness of business effectiveness key which and our proven unchanged,

decreasing our monthly quarter-over-quarter. stable digits numbers user in MAUs only remained with Firstly, active relatively mid-single

recruiting platform is cases. Language] over users, and long-time valuable to built our the those efficient with seeking remain as in July deliver seven was recommendation to new cause of user service provide retention this a of commercial believe our program we suspension to user which registration. truly we of In especially I a more will during stronger initiated MAUs is BOSS the seekers, the fundamental [Foreign business model, the we many have user the effective is percentage them and engagement and directed our and go taken for activeness platform which the efforts DAUs Secondly, both briefly for immediately stable. and share which refined for the our effectiveness early a on for reason customers. rate job mobile-native service better is years our and functionalities and to job presented service SMEs with and Zhipin that We period optimization past have

also an on user where launched two plan we focused protection things. existing We

was more senior seekers serving job work We serve a with job greater to higher and seeking have experience, cycle to job first senior advisors searching working The job together seekers. who them cost. more resources devoted the better headhunter longer support

the is Second, and platform. the and to market relatively and who achieved blue-collar the labors micro service not fairness team’s but most. benefit work support among enterprise recommendation [Foreign consistency resource College a job small and confidence Office and bilateral with user students progress also in algorithm our opportunities. recruiters Leverage to of groups job seekers enhance we folks [indiscernible] the areas, to and advantages help powerful Language] recruiters and from development only which with are expertise project the our launched our the of and Meanwhile, allocation core seekers pursuing of service. better capabilities, have industry our we strategic are our we in together. one on

advantages increase. service resulting contribution in enlarge sector revenue continue We in to its urban continuing to

co-intermediaries, begun also in seekers on user sector, optimizing the our making have actively manufacturing focusing posting the and governance to comprehensive work the We around experience. blue-collar authentication job improvements to EOD job

we our users. reliable confident management in increasingly blue-collar and and invest our continued We of to that technology for in heavily a selective seeking create and investment [Foreign infrastructure. technology job through team, verification Language] offline classified safe continue platform are blue-collar will platform and our We intermediaries and

to classic. We down we online Our in of restrictions XX% offline security with cover recruitment have of are increasingly saw our situation. XX orthodox view and extended more non-standard to algorithms, authenticity enterprise verification than routines our for able the strong cracked verify Combined cities.

We review. cybersecurity platform. of have Let reduced We seeker common effectively about user job online experience is the now protecting Language] talk and progress of lifeline the that rates. compound the an firmly ongoing [Foreign me believe the safety of

security privacy ongoing capabilities protection is first privacy with company’s At as This well doing after company Here, heavily users, have during in The of maintain our and work invested era. industry, communication. releasing. necessary necessary extremely users foundation viewers strengthened company responsibility building period and also but greatly competence the regulator ability for data is for the personal data platforms enterprise, has and say regulations same a investors on and core period, is kind the protection. have confidently we accordance field. standard internet with not extremely cooperating this of series a this truly believe value security actively are for will time, sustainable responsibility an that We this high area. for as data the and evolution quarter we reporting development. this the and of for sociality, any can only privacy We [Foreign for and on protection, improved in also long-term in security the Language] our I for in create this investors our

During of and such of under cybersecurity the of we and be situation, to enterprises kind reinforcement review technology the a technical the we team for that committed team training our and effectiveness of our and capabilities securely technology, validated. and business Phil development this is social user special continues serve. of recruitment make of to have to we we this financials. for valuable model a base. public contribution necessary CFO, team, to quarter, believe always full still [Foreign that, both have power to I confidence our are prosperity individuals I sales and as of and is clearly able we’re turn and been see company, responsibility and security Under internal been meaningful. Language] the The the take for steadily the that not a growing of our I to you. review can the grow our the With Thank leverage future. team will

Phil Yu Zhang

overview like everyone. Thanks call will a you for results. Jonathan. quarter quarter. of the today, our give financial I would XXXX I our And joining our next then Hello third earnings discuss outlook to Thank brief for

Before on otherwise basis, RMB and are are a comparisons all amounts all in note I began, year-on-year please unless stated. that

and quarter, the performance end the our once our business improving XXX% the reached of in beating user third guidance new up quarter leverage. our high again, total demonstrated Our of Despite billion suspension model in range. the RMBX.X year-on-year effective revenues registrations,

billings to accounting XX% revenues. billion, for RMBX.X than total online with services, of Our revenue XX% recruitment calculated by our more increased cash

reached We are pleased new with record XX paid which X.X our a XXXX. of months million the in the customers, rapid enterprise growth XX, of September ended

in for of cost a the an side. Total to income positive operating on resulting XX%, quarter, Moving of and operating RMBXXX were increase expenses million. RMBXXX costs the million

quarter, which in Our that expenses XXX% robust increased is by and headcount What due RMBXXX percentage down cost enhanced in million to and our the the RMBXXX and by and a to marketing of both our XX%. and registrations. continue from represented quarter, also by in to activities. XX% increased noteworthy increased XX% was XX% expenses quarter, brand gross revenues marketing increased primarily be million, to due new suspended result expenses to development a as and as RMBXXX of we it result continuing expenses Research partly million. was by the XX% compensation headcount in a expenses. efficiency, of revenue RMBXXX marketing Sales remaining year-on-year, General points but increased share-based primarily margin at marketing improvement reduced to our expenses million with is accepting sales user of advertising the administrative to XX.X%, by increased our

continued to sales sequentially the grow quarter. headcount R&D in Our and for

We to in enhance invest are core firmly to further our competences. technology and to talent committed continuing top

the reached the income year. same third quarter million quarter million RMBXX to in last net in Our RMBXXX compared

quarter, an percentage adjusted adjusted net third of improvement. compensation, share-based a our was Excluding to representing RMBXXX in net translating point million the margin income XX XX.X%,

the we our the third as future. core of our showcase matures in recruitment the and healthy online profile business business our business robust in numbers that Our can achieve margin believe can quarter

cash RMBXXX RMBXX.X cash Our generated XXXX, net XX, of And sorry, quarter. million net September – from and activities short-term we billion. of this investments had was margin our equivalents and operating as cash

for we Our return cash in to the of and yield long-term. revenue gives the has quarter, strategy, had confidence between a users. XXXX, in revenues, The last our will real expect a now of to rate next of will for until review cybersecurity based quarter at our our RMBX.XX the XX% outlook, reserve end review first last the December. on we The to guidance our directly least on quarter growth be us our approximately RMBX.XX which impact believe assumptions representing correlate business to revenues is ability execute as billion total the that the for And billion, considerable XX%. growth our great year-on-year

just user ratio the and healthy also Jonathan operating healthy and data our we mentioned, base ratio stable. customer still remains have a paying and retention paid a that shows As that our

previous our growth we With the as business concludes faith have in affected, and future. registration soon the monetization we as track user still on new the we remarks. be model our can prepared that resume That our back

with would we to please go questions. like answer questions. ahead Now Operator,

Operator

Thank Please question you. Eddy [Operator comes first question. your Your ask from Morgan from Stanley. Wang Instructions]

Eddy Wang

[Foreign question. Thank questions. for Language] you I have my two taking

the XXXX? do is be about is any second if you likely when will about any segment in recruitment cybersecurity quarter investigation Firstly macroeconomic online and overall you the the line? fourth registration our impact completed question And time think our the any new Do the in impact business when in – there’s it’s to and China. slowdown resume user have visibility on in we and there’s of

Jonathan Peng Zhao

a registration. I The cybersecurity But just we mentioned, I are review finish or answer second your time company have about question can when the of have user can [Foreign we first will do. line there doesn’t as things two today. as Language] resume clear will

regulators as one end the this with cooperate The actively maintain is and of review soon to communication cooperate first hope can in as proactive possible. we

under laws that issued valid. second the Okay. is The myself I to the definitely are theory and [Foreign your to personal the we we the have security are and our several the recruiting economy opinion. protection enhance privacy Language] regulations. data business, macro on of regulators, the To is answer according have impact – actively would But provision question, first recent an

hires totality which tens have enterprises. millions the a than has is no that relatively There years. of first is of strong. impact of more lots which have company I is of one small which are one The and financial macro on millions people, for crisis micro China tens I industry the is companies has seen and characterize is and XXXX in they this for small people. working are and – normally market been if that They company enterprises, micro quite And the small. hundreds of And cooled down. XX the in of

use to big five hammer together and the – our the But altogether. to two top rest economy example safe. beat that’s hammer X-pound the and broke the X-pound damaged we to X,XXX them, need will box with we economy, which to might demonstrate And beat our and be put together compromised with between So will same my balls micro difference the I we be it, key ping-pong if we the theory compromised use that small balls is ping-pong customers and box use is enterprises. but put

So when the market, more I down, [Foreign And provide. the macroeconomic two Language] will the goes latter opinions. have for

gradually with delay, smooth. a the much the combined is ourselves, suit continued the take industry And majority micro the hundred there a that small to when small spending which recover, level economy Language] recruiters Average than a no is can The down, better. the and the limited more up so the month which enterprise quite first as one can for my RMB. go is that and [Foreign are is market certain second service down industry because is enterprises of several platforms our if offering one going we and micro opinion of

current question. money, to the for had money. my value their we paying to we attract And platform, Even down, for better goes still when that’s situation this want for value budgets when can for the macroeconomic a in people service. users we lots the recruiting So cut our of opinion as best down

Operator

comes ask question. from UBS. Please Xiong your [Foreign of Language] Our question next Wei

Wei Xiong

for management you, questions. [Foreign my Language] taking Thank

can in in remains your Have that to about the maintain been that months. next with the the ability the the and want recruitment areas you. for be target market? in new given past to has margin that early your side, new online marketing I second, few landscape user in expenses the And management the any users what user user is impact your on in growth longer-term? And next be and year. associated year? for to just First, And the outlook are competitive ask would the year, impacted strategy Thank next in seen and on what grow on acquisition the what competition focused user growth we growth selling next assume advantages the we If resumed the meantime, changes the order competitive your that year?

Phil Yu Zhang

question question, the will to and Thank have you for your more first question. the part have I what can first then of add competition. first answer Jonathan your your we – about with done

third-parties that for think the or from regarding can of past in big you So competitive couple no we there was see change. basically that’s months, landscape, quarter data, a

the still So head active active users users. daily largest our with and monthly appears service

still So our is gap large peers the enough. with

using And And to like of so among third-party you daily market chat data the engagement can research fact. level, – app peers. with like tracking highest user the in are find frequency still some terms we time-span

we retention, been regarding suspended affected user suspended – even very not situation, our company were data thirdly, our we retention healthy or user have that the quarter. shows healthy. during for the with past not registration and the very users keeps The in stable by And our were cybersecurity ratio user still basically review. So own is have

of in very still situation. very we all [Foreign robust a good are Okay. those So healthy shows that Language] and

what review, I you. we for help of part of down will into with details question have second during type security your the For done,

very four have been For And fast. it the nine had surveys jumble provided we time, seven have we all seen during that has we our months, days. years, growing

the quarter. growth $XXX, infrastructure, For for on the I $XX and our put and cannot entire users $XX we things had the go our example, will if I on

in $XXX put infrastructure. I So, the

is you. what part have I two for infrastructure? So,

one The data protection. and is, to personal currently continue our improve first privacy to we

user months, We are lose be on achievements, in heavily to will long-term end, platform? from identified, to the overall of proving is part have our company. have and second has in system investing our our in value several and who experts, technology, for and We some And the capabilities kind users. this easiest two we for

period. way for a have those first job-seeking is longer who The

a and work and they might don’t a working switch cannot higher have have So, higher might income. job, when find period cost go a longer and they a they

seekers, So work a just lot provide NPS. efforts because better and and of job headhunters service together we resources put as they’ll senior for job their seekers said, those have I to improve with to senior to

resources growing And – The service do second we those funny that thing our has team fast, competencies for is our our the efforts can have in on is circumstances way, project who on the a kind are those market. they and have part. our platform. all are we those when better better of focus if efforts, have people. of And provide under if jobseekers some are we for the user that group but our two people. all focused not can do disadvantages and relatively and we a ecosystem currently, recruiters, very provide we for our all to on service and is kinds them value progress jobseekers our senior The better substantial This on people some

can believe should group show those jobseekers. for social have more might relatively that who the moment. at not need that They kind this them enterprises of for a a value great of as have responsibilities senior users, – disadvantages, public they economic So second And them. a more but they we company, for are attract we

value. social more have they So

ourselves – society. economic the social my period for and believe that’s answers they were both the question. for we should all our values the your to And during So this and – for do and to have

Phil Yu Zhang

for to users. grow not is clear will target year, growth moment, because second we hard your this allowed the when this at are our regarding be to answer user next So we question, question

our operation. it can normal only we do So during

think today, time I and from effective. maintain – what it’s the understand is very can jobseekers And our a can healthy our model platform. say still business is I is and above, users of groups third whole quarter, discussions largest that the as on still you valid So served but engagement and we the the employers not that during very level

four XX So they were the during platform. review failed And records of process, since like the beginning they from past users. cybersecurity the like million registration our months,

users So million we as recorded. XX

huge a was that So number.

couple it do they So our a they want platform, users, lot past register to of months. cannot the during but of

So thing once this allowed that do we were can lost we what speed. is that so grow where to – say users – will users, full regain at at it moment only our the our we we’ll

Wei Xiong

[Foreign Language] Thank you, management.

Operator

Your next Please Renaissance. ask Colin question. of question comes your from Liu China

Colin Liu

two for [Foreign Language] have management. questions So I

The potential want of senior if we in to business. model workers. any positive first regarding opportunities there’s just I gold-collar one terms compared revenue and from this call difference other from which is the jobseekers normally ask with segment

Beijing cybersecurity has new management the [Foreign check will the continue out practical New and some we which any other The Language] question want to if as company first acquisition. Olympics the the which Winter rose make review can to impact such about just Year if year user Chinese quarter is windows such to counter I impacts. very further other the next well, meet measures negative you to time to

Jonathan Peng Zhao

you question. And Thank understanding a the you gold have your of our industry. do sound for regarding very collar,

revenue how internally. we very terms team seekers of still of do coincidently, what And have service. kind which But So of blue contract we is some senior collars. kind our content model, question, the do in our as have we same call job

for will job those The on the provide job enterprises how currently, to our will first for who openings to senior seekers, ecosystem. one headhunters, focus for better we optimize post senior those service is

that will this ongoing, done the enterprises the senior we continuing clear good service But – belief a standard for the have and we model, we The to of don’t model create don’t past, as a still job through users clue products have that peak model. now. user and fund those in currently, same right second acquire years, we all now. second harder Year which after the to purchase Winter happen. registration as see cannot revenue is we the ways can we seekers, But And marketing provide recruiting what have who price acquire is If are is spring and Olympics, that we a long clear a the the your users If one they provide question seven to past festival revenue for answer a season for will we new that have of we – new if our additional is not the revenue which user our the to regarding And the how can by New event screen recruiting. we normally, the value any regarding we then, thinking users. after registration. opportunity, are festival new currently Chinese we new cannot for is regarding new a we even have resume

what whether to user continue thinking not the the very for way the Language] still And infrastructure. do do to a improve view in continue normal, have registration marketing plan and our aggressive question. what for resumes, invest as will see you by and to we we clearly, finished was think are now. You we But that’s day, that service [Foreign will our I’m will my if answer And properly not them. in or that that do of is continue one I that is

Operator

At That question-and-answer to As Wendy due conference for closing turn to additional today’s will this any time, time the I concludes constraints. remarks. back session. or

Wendy Wang

us today. thank And joining Operator. again for you you, once Thank

questions, any or you. our have further you If contact IR Relations. team directly Investor please Thank TPG

Operator

conclude Ladies does for today. our Thank you. and for conference gentlemen, participating. Thank you that

all You may now disconnect.

Kanzhun Limited (BZ) 23 Nov 212021 Q3 Earnings call transcript