BZ - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Kanzhun Limited Fourth Quarter and Full Year 2021 Financial Results Conference Call. [Operator Instructions]. Today's conference is being recorded. At this time, I'd like to turn the call over to Ms. Wendy Wang, Head of Capital Markets and IR. ma'am. ahead, go Please

Wendy Wang

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

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

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

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

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

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

Jonathan Peng Zhao

fourth trust conference and our to support. our your to the Welcome XXXX sincere and thanks earnings our express everyone. Hello, company, I year and users call. for investors full of behalf like On quarter entire would to our

of GAAP end XX% the quarter X.XX performance during recorded high exceeding The revenue achieving RMB period, revenue of the review a Let's for guidance. fourth growth the the billion, company our year-on-year of first.

maintained profitability RMB reached compensation consecutive we income, over quarters. and net X adjusted Our share-based million, expenses, excluding the last XXX

the maintained business to our traditional is not peak our throughout our we performance recruitment for our abilities. challenges to cultivate data relentless forward through the While company Despite with faced performance propelled key XXXX, market, stable has metrics. season the we fourth our China's drive a quarter successfully improvements

million, and to our in more a XXX%. than [X.XX] verified billion representing rose users XXX XXXX, RMB grew GAAP of accumulated Our to revenue growth year-on-year

billion, XX%. reached year-on-year billings cash of a representing RMB growth calculated Our X.X

Our time initial reached our a progress the expenses, compensation We adjusted non-GAAP our areas across since made XXX the achieved first is many positive excellent business. net income, million, full profit excluding establishment. which year share-based company RMB of

the experience business Let's start and seeking with capabilities of enhance services. company's overall to recruitment the improvement efficient user more our which service provide and of is platform, core job

We needs and have the increased ability relentless product levels. through efforts users' in-depth technical our to on understand our

been seeking personal found our job for we changes opportunities or combined users exploration professional optimizing and less in put, example, irrelevant user interruptions. conditions. recommendation fluctuating algorithm to By and For of and improving that to present strategy, and more our we to cross able users more further new demand career understanding abundant recommendation with industry, results more able generate due are across reasonable their science, with Simply level. satisfaction achieve many users situation, have families market with

stickiness. same still proof of peak XXXX and the strong high our see the XXXX, As suspension user example, the Spring ecosystem record remain To key platform since on period of the indicators even our a registration Festival half the result, in following pleased give year, new is user of are achievements later to robust. last DAU and we number a and for remain exceeded which engagement the that our stable an user with still of

needs taking of deepened existing new serving aspect existing mentioned a in in on deep users. of I users' is users. our good a registrations, about developing fundamental I absence our better As focus the we call, in What user earnings have just previous understanding the true of care said

On serving base, are, continuous will the has that see, Therefore, in our we platform's can will very user and continue run. our we'll channels collar be broadened increasing existing so. create serve operational we been to growth it users to the the refine and for our proven different effective. groups with for have you do golden openings Along level, better and of users, cultivate we an white important strategy the user on platform. the services our As continue source values our job long to

driven and recruitment more cetera, et consultants provide job in total with We opportunities and among the have job-seeking campus as Moreover, them high-income on as users our the because, on the tools. active engagement has user as one have on high-income the increased retaining into proportion our the other cooperation users existing powerful to platform users' high-income on is headhunting operations the so the the bracket. sophisticated many by well platform of with users folding salaries hand, This increase. refined to And them hand, continued increased. of

We are sincerely them. happy for

person rule manufacturing companies means of phenomenon we transparent the listed [indiscernible] the collar in of and with good in our sector. than more and investors the many restrain agencies positions views top verified the under efforts, we believed agencies to intermediary game. blue-collar progresses agencies the Project. platform intermediary and agencies can earn the these rules dishonesty Throughout agencies then the jointly screen same whereby quarters, have made dishonesty and to call negative blue The solution to internal workers, a standing the money manufacturing workers salute agencies we English reduce premises establishment have name rules, collar have covering Mr. among effectively is have our of for job By high-quality to selected. this phenomenon witnessed of our irregularities industry. from to harm After technologies, in let that have network to which all leading the of the product we of agencies years, [indiscernible], job because the acknowledged and which off-line fall, word for to into platforms solidly service recruitment our manufacturers also the to and will behaviors manufacturers, seekers. in by and which Mr. announce like [indiscernible] to share model. by We I'd project, [indiscernible] platforms. change [indiscernible] industry verification, market fast been today, and At X, protecting is irregularities And first more manual a our have the is the XX,XXX established be the We with the our employers The recruitment they the believe leveraging on seekers, to the and [indiscernible] In blue of asked the regulated and for team number we in protect results. screened and seekers, feelings the as alias, previous interest this to some dignity. have parties caused is involving be a changed. industry have provided job secured time, firmly new combined agencies with established a the and

We so will continue to I industry far. work what introduced on some the helping achievements reform just as intact

feelings. talk our about very platform. our the We of ability capabilities to to represents protect its the let's a the made users law compliance basic we have improvements believe business, with while Now is willingness security and that law on our

must enterprise to put in capabilities serves. beneath to based between than make it an protection as the and egg the of grow me enterprise, be work. profitability We between to our relationship lower capabilities should on is, is user growth money its security, standing protect also the growth can represents its to users in our lag Let our daily profitability. the it users also spending our chicken, philosophic protect another business ability seen putting priorities protection. subject of way of user which This behind of our problem our understanding It and be and instead

security solid greatly X foundation platforms our aspects, our of capabilities improved for and a the sustainable from business have We long-term development. laying

is personal first information The protection.

in protection compliance become regulations a laws benchmark attributes comprehensive enterprises of by the of will human platform, further have hope own with in relevant information which and among We resources and we personal business a requirement service established the both China. enhanced our mechanism,

user's and user focus The is protection, protecting which feelings. the interest second platform measure on safety

the and online cities high positions Combined and and have online screening we offline. XX enterprise in can businesses we with verify security first identify Here, security process, risk addresses, relationships enterprise industry's established team. AI recruiter

is of third people and capabilities over And expand. by security have the and technology data our XXX. talent. in than comprehensive investment leading our security-related In teams increased headcount safety-related to X,XXX The the increased the will improvement to currently, we XXXX, continue more

in participated corporation visible donations responsible active construction victims social both We a throughout In highly major public company to assist projects. XXXX, a the and the disasters, taken endeavors, of an disabled the have the in and as practiced and natural and students job-seeking college part as concerted responsibility to we has integrated provided assist company, company. green

Regardless company our of XXXX named improve of fighting -- cooperate Education We to sincerely the XXX financials. long-term from prepare Employment users. moment true enterprises repurchase joy for remain and this plan $XXX XXXX, our the been I will to the of will Charity students. to it earlier Winter our CFO, with issued announced measures mission also employment XXX outstanding were security of services we XXXX continue Beijing, the Forum. were as and donation the future pride and human we is official us in XXXX [resultant] as business contributions. sincerely headquartered China X have awarded and we the and a the were by our support scrutiny our XXXX exclusive Excellent our values in Thank and first how were turn Olympics our We contributions our China share cyber the residents confidence for for We faith Partner of We The the company also [Philosophy] investors Ministry of which years management to for College growth. with actively deliver thanks a that, With Chinese of establishment, college Winter to Enterprise since appreciation in you. works. the in Students and from believe million top future review in great Phil, testament investors, the resources a top as be of honored of enterprises ability the recognized the development named team's support was Both Chinese the Beijing Paralympics, and for value for to in I employees. our our of provider and Beijing a our certificate the support our XXXX, to and and month of we will and

Phil Yu Zhang

you Thank for everyone. joining call our Hello, earnings Jonathan. today. Thanks,

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

end high solid services And of our close this increased to revenue our results. with online with full financial growth X.XX X.XX of the for We beating to XXXX about XX% In to revenues for RMB quarter, by revenues and revenues. are year accounting the recruitment total range. XX% RMB our total guidance XXXX XXX% pleased our [billion], of billion, total achieved

Our X.XX billion calculated RMB to billings the by by up in quarter XXXX. and was XX% to cash X.XX increased billion XX% RMB in

Now June, we newly recorded in strong line, from among I on suspended verified growth. new would like X.X of sustainable to XX.X and further half in a are for which million user represents we growth were users. were million first top July, user quality registrations There the to elaborate January XXXX. which Despite users the enterprise early

users, see and enterprise model a Our pay better resilient a products, and pace X.X to to our of willingness an well controlled and monetization. XX% we growth. user Meanwhile, paid XX.X XX% half, customer first continued users both serve growth, the to reached total total that users enterprise innovative existing experience are guarantee million to high a revenue maintained, in contributor verified year-on-year to our our provide key from retention, Benefiting our with XXXX commercial but which growth. by million user resulted demand we accumulated year-over-year

Moving on cost side. to the

look the fourth numbers quarter Let's first. at

of translating operating an total compensation, XX% XX%. expenses and operating adjusted million, XXX RMB margin share-based to costs to Excluding grew by

in increased margin gross Our our the increased million RMB primarily security in personnel, to by year-over-year, percentage XX% by estimate XX.X%, decreased expenses R&D during result quarter, marketing quarter by our administrative a XX% the RMB XX% talents. to RMB RMB as efficiency same as enhanced improve and of activities million, compensation XXX revenue, and XXX to XXX points the marketing RMB since increased improving testimony especially by revenue and stable and headcount, expenses B TECHWOLF LIMITED with were quarter million in this in million, General driven of our XX% at shares total cost representing platform primarily and in security mainly down by related increased development hiring remained due user recognized to suspension. registration to reduced investments XX% a quarter, marketing user expenses XXXX. safety. Class -- to our trend of ordinary share-based issuance to due continued which Research XX.X efforts expenses, Sales of operation of million to last of XXX XXX of to by the

expenses adjusted increased a headcount. Excluding increased by primarily share-based result compensation our of as G&A expenses, XX%,

reached income net the net XXX quarter XXX of Our RMB compared to last year. same million RMB million loss

Excluding net to share-based robust of compensation, core an our margin income XXX margin XX%, net this profile our the of translating demonstrating million healthy business. adjusted RMB was adjusted quarter, in and

points margin percentage robust of compensation, compared to For B increased with costs XXXX, RMB grew expenses year, cost due our an XXXX, our XX% primarily expenses revenue X.X TECHWOLF billion, by efficiency, increased issuance of X.X -- compensation XX% marketing billion among XX% resulting representing compensation, X.X to XXX to of operating improving an share-based from administrative RMB and the increased were billion, to increase margin of to expenses of excluding our by Including which by expenses, XXX increased and to XX% at expenses total XX Class million. gross expense XXX%. G&A by relating to for million. RMB RMB LIMITED. billion remains X.XX adjusted XX%, general the RMB operating XX% the share-based Sales one-off R&D by RMB share operating cost and to share-based and

net for year loss RMB Our was billion. X.XX the

of compensation, we net the profit for share-based million non-GAAP year Excluding -- year. XXX a for RMB achieved the whole

quarter XXXX, investments cash billion. the short-term billion for cash, XX.X activities our RMB full RMB Our fourth totaled RMB and generated of and cash net XX, from end was operating December million XXX the And X.X as the year. for equivalents year, as of

for remarks. operating reserve X.X for to year-over-year growth answer total XX%, would With please That of robust, and long-term is our sustainable our cash now growth. cash the confident a RMB we our expect rate remains outlook, Our effective now model. and X.XX for representing RMB be will concludes our to between our quarter engagement testament of set to billion, of a first And and we flows robust solid foundation business our revenues approximately XXXX, further full the ahead. business are monetization user of a and we expedite ready. growth recovery XX% go a time data Operator, prepared And when like billion questions.

Operator

Instructions]. [Operator

comes line from question of first from Stanley. the Wang Morgan Our Eddy

Eddy Wang

is We that Q-on-Q resilient expect question the guidance. My been first regarding guidance growth. noticed has and we the still quarter very

your So X want just I hear thoughts on questions. to

as been in have what's lockdown. quarter? First first weakness sentiment the is COVID-related the affected the hiring the by that, hiring sentiments as well The macro

of on to we what the that, -- we the the sector. -- efficiency quarter? is effort this know want SMEs is recently. there or about what operation. about heard third the cut in first TMT headcount is if question revenue sentiment first of top the secure the TMT in in any I solid And the the Have this incremental, our just have did from hiring been impact Second have quarter very that operation in some -- question guidance.? first there's quarter industry the have we China been to And

Jonathan Peng Zhao

to our us? Can regarding every season your guidance Year that big answer New quarter recruiting quarter would first for will of first year question Chinese I [indiscernible] because first XXXX. you I the is Okay. hear of after like [indiscernible]. for a the the

Operator

Yes.

Jonathan Peng Zhao

Can continue? I Okay.

Eddy Wang

Yes. voice is can little the bit you Yes, volatile. a speak, but

Jonathan Peng Zhao

little ongoing. problem Sorry, we a have

minute. Just us now? one hear us Can you give

Eddy Wang

Yes.

Jonathan Peng Zhao

I will continue. Okay.

of job Year their they looking New rewards, lots cash and festival, received So job after the for switch. employees, year-end again, they were Chinese

seen very said So -- for we recruiting the market I Internet your lots lay the of out have question is that first quarter second season, just robust regarding is season, fourth peak mentioned heavy on season the but you of impact, quarter not market. off just for news employees. a And come the peak the

Internet have active. are such middle very still small-sized observed recruiting. Internet the they the the But very are we people. whole noticed for industry sector, lot They of a are still and that active the We not that as wise, hiring [indiscernible], companies big within in enterprises

perspective, did overall the from very So changes. Internet we notice industry significant

Eddy Wang

of COVID-XX. you about the impact there X And the And are situation. talked this of observed we that impacts

impacting their the severe one thing more people to seeking saw social naturally to very impact time, the -- First they from stay some observed online service shut where impact other we last want to is of chat material And we some were increase overall, of for no cities blue more lots distance impact to is where this industries, sector collars, year-to-date, goes impact keep COVID-XX in but so in the down. quitting But, the year, functions need activities a some -- the hiring to because that at hiring temporarily, more been has They some -- use down And this quarter of long several the cities restaurants we their to not activities. home, and for a the that they and need has lots year, second efficiency. and and first that they industries, where saw job seriously. coming the us. a had people impact direct especially their are in several

Jonathan Peng Zhao

platform, characteristic are an SME, they always enterprises. [indiscernible] interesting small quite try survive. and a second On and the This topic. medium-sized to have And our very XX% more mentioned of SMEs, question, you is about than

to so immediately, on. hire need live left So when person people the they company, to another

which big X important, months headcount more people year because off a and market. that's overall might answer, they And very a or resilience So lot of this big they will lay job unlike to the to hire the and individual positions business from market, their hiring And these as only to in Phil the from openings maybe lose economy, of number they pass but provides grows. my And will enterprises, decrease many not Chinese is needs, or to to confidence very after now. the their this X accumulated hope again overall economy I even a because overall people and macro level, bring recruitment point for... not

Phil Yu Zhang

some with you I can information. offer additional

first quarter the So area. our mean, did does and some – last during year, first example, all, certain that impact in education we fourth of online notice quarter I the the of industries, of macro like guidance, consideration include in number like quarter estate for in area real weakness last

areas, sector, retailing decline. And that retailing declining service, some revenue noticed advanced contribution. example, like for a little – live after those did like growing Festival, we e-commerce show the industry, there we was we’ve of bit also, there retail been some So type online noticed with also, and like see Spring some weakness. was retail of new But we for And like type some that Internet of noticed manufacturing. sector,

number just a -- And impact companies. I of with mentioned, have the And like like we as base, and the have industries we economy demand high-quality because online macro a medium-sized service. So think base catched to high-quality very -- we overall, from of area. we customer does small, broad-based resilient broad recruitment customer service our enterprises. a our But have huge the we Jonathan have

our impact is the business is macro limited, that to controllable. So overall, we think

the their last healthy. and revenue Internet lower area, And the nice their small. digits. the growth recorded slightly total top so overall months is also revenue in growth, companies, our growth technology like still overall like companies in around major our Internet, technology of in although And contribution XXX than within or like to very, they contribution is mid-single contribution, very Top numbers XXXX, the one their year, their of this top X still overall. IT is quarter And is our and of revenue first and the

of from So all of industries all revenue contribution we have companies. a the diversified the and

the of of they key those like all the last third have layers companies that spending impact. macro reason what previously platform. One last And as received their quarter, X your So and we business. probably the to is enhanced our terms achieved question accounts, of with how we funnel growth? reduced Because do – regarding fourth higher-quality quarter, communicated, we last quarter – of in that did our the our we during the and

we have of lot our small they users basically, employers, a So we offline with purchase. more a service amount and for number we contract free, signing have purchase, medium-sized of and use have our service of large use a

contract and development. continued our effectively users basically, free experience high-quality the the good service those purchaser into and during those quarter, the amount help us continuously past So those into offline with and – user third our convert And this small fourth convert quarter buyer. we

all So overall, that remained revenue our to paying business. to a contribution platform our users business contributes And the of with stable. healthy ratio on our

So that’s picture. basically full the

Operator

next Timothy Sachs. from Zhao Our comes Goldman from question

Timothy Zhao

industry. the in strong the My online Congrats the competitive will about on recruitment results. question be first landscape

expenses what we past amount in of have is of will should we a latest As going as at and how R&D new collar our the areas has decline second as including how And And blue as graduates. also -- expect kind 'XX? on your invest initiatives, well growth look significantly. question some in are college and share about new the evolve features? percentage my Could launched absolute that we this any quarters X [indiscernible] new of year? management percentage the see in? And R&D product view we the it in revenue Can over the expenses share to management or the of been some landscape will competitive segment peers the in shall

Phil Yu Zhang

can first. question second your So I answer

R&D the regarding expenses. So

we growth couple of headcounts R&D past engineer with quarters. our maintained steady basically, the So during

was number now first R&D, number total was last XXX. by last of was third of end number -- that that of quarter, year, X,XXX. number number our that And the like X,XXX, by half engineer, year, So that by and

So see. that, can from you

quarter, although our were third we of and Cybersecurity year, Review the like limitation, steadily the but people. during still our R&D the quarter in some revenue increased still last we last during got So

area So invest will to we this this further continue think in pace. that we

Jonathan Peng Zhao

I'd the money. which spend will our too something our about how R&D add is like to question, second on expenses, we

to expensive engineers We more to will hire continue and capability. product more people, our managers improve

my we just to operations in now, to and to more existing them and to increase refined make reach and the interruptions in-depth speech help in have mentioned overall very on less switching very platform achievements our understand user's difficult our users order their to I As greater needs experience. This is positive.

will do I your first To -- question answer We like would points to about some to I several competitive to that. continue make landscape, make. have

The there blue in -- year, other either is past or collar in our within had industry, one some collar during the have actions noticed they that enterprises half white first taken the are services. we

are and fully fully uncomplete industry. have industry, we them. that competition these within and lots According this enterprises our respect very We to institutions of are noticed lots statistics, there of,

there ahead naturally some us something we will doing noticed or people have we very that. So thinking normal, them. that respect in some it's of are be ideas, and It's

user million focus, a and we by in States, grow view we and we you our a data, peers our over protecting all till very the already that we number, I X activities, According paid XXX of see, steadily. been DAU have existing is MAU of reason achieved which There our there user million to able we is number. that point are And ahead our focused on second accumulated our about have to our there in are The China. and But X large or are already amount. is have the And third-party can users, users over XXX ahead spending attention them haven't still XXX United and user months. believe time of the million and now lot the a [non-farm] employees user that users. workforce, that our

have them, we to enough users them. do something So serve better to for

we have our actions. and our our their But last their we products market. what question been users confidence or our for innovation for and So have the peers we position. and serve can tell the market fully better doing respect to competitors can And we free new about maintain your

We of we should have today. think nothing, a lot future the nothing think done it's mature. might -- was on discussed aspects. when be many and we We release research in But initiatives

we there population As are [non-farm] served of over million XXX them. China, only said, I just XXX and million working in

So we should refine needs service their the in-depth understand best is -- is industry another today to very products knowledges to our and way there's to believe we still and we competitive to continue just service continue more to go. of supplement to provide what this long which view, users, will users. And to accumulate a do is to our

Phil Yu Zhang

the to opportunity, quarter this the in number given So provided last update we I'd like third year.

failed user number during to the we So the that of failed we registrations -- due the users third grow number quarter results, Cybersecurity Review because mentioned process are not time. to around allowed

end the million number recorded we XX, the of registration of by as So users. XX accumulated March user failed

deliver because So that's best of strong a very user a a we and we believe still user capabilities, have strong very we number, And there's huge experiences. and market demand. service --

users. So to can we allowed our definitely were grow, once grow we

Operator

the comes Xiong last Our question from from Wei UBS. line of

Wei Xiong

also Cybersecurity in on is of want we've we have trend ask, quickly and margin behind quarter to I to about company question, wondering first the margin should And the as is, that still we're First think Review And plan seen XQ second, once momentum the user Review, the under restore the any impact if growth Cybersecurity just the us? just the how again, solid. very XXXX? the trend, margin

Jonathan Peng Zhao

after begin with I our I user -- our growth your will question will about registration. answer strategy first

notice grow jobs, there And to we looking to Firstly, the high, our they they allowed thank is increase when that. once our you will expenses come we they is we When notice their has wishes. important characteristics that to for is first thing user when increase history of And jobs, were need -- for for people seekers. very it's they serving. your platform, looking because good they're start but to are the users, job base to to need proven first significance marketing platform very and the do

we So and answer. my very our that's cautious spend will money smartly. And

Phil Yu Zhang

offer bit So a can more. I little

were to First Jonathan just our to user money and as said the driver our because with we the mentioned, growth try stage right of we of that, core activities as the do all, profitability. user the grow, allowed what definitely we balance – and will spend but line that and we best during top will and to having will growth, growth we increase current thing consider once so our definitely marketing wisely,

we what during number have already last we our number about. first that XXXX, investors that profit of think margin. And showed nice to – the that’s quarter, the a quarter So

that’s we so year, high-spend -- X, more basically, activities marketing consider like X, our said last year, the But X. that quarter grow. least last having first during to the marketing quarter of this in growth you full have And the XXXX can normally, of our at first to maintain in the is year XXXX see from full that, From game seasonality for situation. And number to spend And number And we the quarter. X, normally quarter need try with would number our year because number campaign. modern in we first quarter Olympic to only like the strategy would last, we XXXX the once think like profile. were we is allowed to the that, core first quarter, margin we

seasonality So continue that the means we will pattern.

recover the starting quarter but low, of the quarter, – normal first after second situation. would will from margin be that, the recover to XXXX, margin will So

of So that’s the the because much situation. That’s issue. pretty mainly seasonality

Operator

to conference constraint, this remarks. time, any the session. Wendy today's or that for turn time to concludes additional I'll question and answer closing back Due At

Wendy Wang

signal we joining Thank call. you Investor once today again if Relations. interruption our and directly the apologize us for IR this sincerely you further you. have for any And TPG please or Thank during questions, contact team

Operator

our That for you. conference Thank today. you participating. for Thank does conclude

disconnect. You may all

Kanzhun Limited (BZ) 23 Mar 222021 Q4 Earnings call transcript