BZ - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Second Quarter 2022 Financial Results Conference Call. [Operator Instructions]. Today's conference is being recorded. At this time, I would like to turn the conference over to Ms. Wen Bei Wang, Head of Investor Relations. ma'am. ahead, go Please

Wen Bei Wang

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

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

start, actual performance or achievements to cause and materially information, remind that forward-looking undertake the control, Before different. uncertainties reliance forward-looking as known unknown not these observations not statements except may that undue of you we today's 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 discussion by to we you contain current the factors expectations and

discuss will financial During also for call, certain today's purpose 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.zhipin.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

quarter the Hello, sincere I support. our conference to your trust second behalf for our ongoing users of to earnings and gratitude everyone. like On to company Welcome call. employees, our our and XXXX would express and investors

quarter. In we would share performance quarter, First, the with this to like second GAAP our I RMBX.XX revenue you recorded billion. of for

cities experienced severe certain the And and new extent, solely a of suspension both been users and XX.X we MAU user during this factors to reached increase China past almost was revenue average quarters. achieved a Major on users. have have, million, X based These affected X%, outbreak growth. for unfavorably quarter. under representing our two sequential a registration COVID-XX existing Our in

activation headwinds increasing evidenced our improving proved by effective persistent the have user our MAU. of MAU achievements and in capabilities average DAU despite as per However, efforts to the service

adjusted net of demonstrating In terms profitability, in million RMBXXX our exclude second continuously efficiency. reached the income operating enhanced expenses, our compensation share-based quarter,

some reopened Now new user On we new that many updates that registration on I XX, about. of to months. until June from like may within you which the XX, care is August would users, share X.X our date

XX DAU compared Our both XX% in average more reached platform in The highs MAU recorded and than with user new June. July million XXXX MAU increasing record July registrations. by with

newly of the looking At the proportion region of that user of users Starting Let's end the are higher fresh school end since July, and -- registered distribution. period. and during the June type led students beginning to of continue user the the July, From gradually user contribute cities of white the perspective picked the users first- grow to tiers, and numbers have blue second-tier of quarter. majority collar to steadily. for growth up this city the collar and graduates

double the COVID hunting enterprise, professionals industries terms users of following on basis. than the SMEs digits The blue-collar manufacturing number In of consultants proliferating scale and active daily in increased by outbreak sequential of recovery. of in July a head high-end average selling more intermediaries quickly the

hand, compelling innovative our established With growth job-seeking has the reputation market and also model we these metrics, one other proved and hand, on Moreover, see a they that potential. users. among brand recruitment on massive influence

trend, and estate, has shown especially sales all high-end in sequential as daily blue has urban recruitment robust health XX% increased further growth in new the industries, such August, the implicates newly in during number increased posting platform service of environment in collar relatively manufacturing, basis. as drops including on number July, clear X the the as marketing expansion. first the business urban improvements Among also posted have industry monetization in a a sequential the of and weeks the active In August medical enterprise media, well sector. seen sector better of growth revived momentum users. The with a positions, overall with basis. industries more on We more continuous growth clearly real on energy, XX% job In that a than our

to job recent a cooperating is holding for challenges, COVID-XX hunting them great the fares affecting As through online and algorithm the years to inhabit job number of graduates, historical create including Extreme impact, for with temperatures with a severe of enterprise of effort experience customers and all we various needs fresh large job made environment achievements. Danube XXXX, faced participating for persisted swept Jiangsu, more for In human which that uncertainties recommendation job platform in has our employment improve we both looking summer Furthermore, Poyang and utilizing Serbia, creating many channel. broadcast water those and live beings. opportunities levels X.X and lows the short-term has rare high news their of the by deep on in more CCTV life internship Lake our potential Earth for into for college still by we may for part-time explored world of optimized you accept River students us. in natural and our initiated jobs, have Europe the The parts the China. in the opportunities

I is strength understand with July, their achievements share have evolution. Many XXX do. X,XXX able and as employees average. deeply in should opportunity has our one worthwhile. we platform believe what the of July, each ordinary in people our people may of over people the initial history, number one-on-one These XXXx by the dreams. view of that recruiters more days able these our million are, XXX,XXX greater to context which more resume our more employees loss of the find In means considering following job as their periodicity worked the present seekers The well to of you. times fully then more difficult prove in to the confirmation the times convinced and like test the X,XXX on these of that we and we new support the and However, completes aggregate, of each would the be longer of There must on changes and helped of families fulfill exchange their team day intentions. than efforts jobs, us more of be since than In to value of

do we of people CFO, I Thank and so things of minds, our Some few, up the ordinary our along and journey. of work many lift important we, ordinary for power others. such the do. the will our This the for financials. other people helping that, make leveraging By us the review incredibly to technology can life eases proud our you. With spirits Phil, experience turn market,

Phil Yu Zhang

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

our please of decrease mainly revenues and that macro offset quarter all slightly paid due COVID-XX, from by in which Before a total the decreased X.X% note to small-sized and partially increased RMBand accounts I in while X% Total quarter, COVID-XX midsized reason. accounts, million decreased in otherwise are by top-tier to key of all X.X to are decreased X% also to cities, quarter-over-quarter same main to our on uncertainties negative comparisons to year-on-year are accounts, due due resurgence from enterprise contributors billion the basis amounts cash for begin, RMBXXX by past XX% Despite the customers the the increases the business. stated. outbreak revenue revenue million, by respectively. by unless the impact primarily XX in several the year-on-year, RMBX.XX Calculated billings to revenue months

temporary and be just we the half believe second starting up expect will decline year. However, to bottom it this

Total operating side. XX% second and to quarter Moving RMBX.XX costs for the cost on year-over-year decreased to the by expenses billion.

for in Cost RMBXXX year-over-year revenues mainly in by of compensation, and costs operating server quarter. XX% million, decreased Excluding and million RMBXXX costs. as by the by higher driven share-based second headcount half security-related staff total to well year, bandwidth X% last as the increased increase expenses especially to

million mainly in Our in R&D-related RMBXXX the level the customer XX% gross Sales reduced G&A due But XX% expenses year-over-year we hiring and issuance which up to talents. B by stable expenses RMBXXX in by Limited as of XX% meanwhile, by million RMBXXX X%. quarter Class attributable to R&D to invest the recorded healthy quarter-over-quarter, our up related at as activities. of remained to quarter. was shares decreased to XX%, quarterly decline one-off the MAU a acquisition at marketing costs by compensation the in marketing Wolf increased to expenses year-over-year held quarter continue million, to resulting decreased from expenses margin same ordinary XXXX. last the to share-based Tech second

the compensation resulting share-based increased G&A expenses, year-over-year, XX% expenses headcount. increased by Excluding from our

Looking ahead for our headcount overall budget.

the product we'll and costs of recruiting will of at confident with efficiency. like of above, year. RMBX.XX said leverage. and critical business last algorithm reopening with are operating the growth for in same million continue we HR net more future a registration user With to our on other for compared Despite industries, loss decrease managers to personnel-related billion same a net achieved revenue, in gradual Having engineers high-profile income we recovery the the areas overall period our pay time, we invest RMBXXX attention and showing

for adjusted our operating once RMBXXX net adjusted an generated our margin from RMBXXX business net proved of net The income quarter compensation, quarter. the model. this share-based was XX%, the representing resilience million, for Excluding million of again cash was activities

equivalents and which increased June the short-term term. of billion, XXXX, RMBX-X support As cash to long investments sustainable will our cash, billion, our growth in XX, RMBXX

difference we revenue. I service, a take is GAAP basis. GAAP cash some the be service, discuss our nature receive the for business revenue enterprise into to between the will before as later time an a our revenue to recognized like accrued outlook starting payment to cash fast our Before -- would on and while go like Being quarter, next

timely our As growth. metrics view a cash main following management as company's a operating in a and manner growth collections result, momentum reflect user

calculated to around for our RMBX.XX business expect total as tax. cash which or billings, RMBX.X So we quarter, billion, third billion cash after collections be is the

with calculated We expect and a last collection to billings sequential growth the the and back XX% same third with quarter quarter-over-quarter cash this year. cash level

lower affected revenue previous between is a to cash collection billion, to decrease the of X.X% be X.X%. quarters RMBX.XX from billion GAAP slight by estimated to RMBX.XX X Our year-on-year

back as being are our business pleased with we user track growth be on key to Lastly, driver.

the our our in growth external No believe will our good changes, further how year. strengthen the trends drive user scale environment model we recently following efficient of an that and business this continue expect experience capabilities. the superior matter we user monetization and quarters to We continued witnessed

long-term confident are concludes prepared our in We development. remarks. our that, With

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

Operator

Instructions]. [Operator

from will take now the Timothy it stand by. from Zhao And Goldman Sachs. of line We Please first comes the question.

Timothy Zhao

I have two questions.

some strategic focus management the sales, customer versus First level, half the streaming half? year. acquisition what about to management in platforms collar? blue expenses streaming how the we sales, the of the customer live this monetization? white in question pace some And about in role And thoughts our expenses share recruitment. other second And of is in secondly outlook streaming acquire format or will our strategy, the on and customers? the marketing can climate Could marketing at how play different be our Could second how look And acquisition? industry, is -- should how in from share, especially or in collar live entry live terms the is

Jonathan Peng Zhao

Thank you for question. your

expenses. question Regarding first your on marketing

million in all, more But this -- to normal XX June much We too or and that overall, with are July, on a spent we achieve marketing are first expenses. or more expecting users haven't half compared of newly of -- expense under we year, are input. later marketing June than the expecting on verified than we

is more jobs, certain believe multiple effective And And I means the mutual detail are be discussed would the more be not July more your the regarding and the I your now prediction that will which expenses. seeing expectation that trend, rare live brand, recovery our one-on-one will promised And our industry on will give used recruitment on actually a like has this means discussed, preferred for pattern job we to high which one has my a communication recovery for job achieve of precious buy for but reputation. that gradual in streaming from the now matter what seeker. confident we recruiters seeker to trend. the under edge, and recommendation, increased seeing can agree multiple both And the are and August, people circumstances to versus one won't streaming. hiring, has terms extra have And technology, in questions my person the I take and because person the seekers requirement -- we especially need recruiter that according on we pattern, very future. the second market But to recruiting which a In more in on we with will And form one been and we on successful be reasonable a each spend, will common and and past, it's but will and and we that in on you which person of industry, better existing We earnings I won't buy our be and meet job based what certain regarding and a -- multiple to in are need have and with other spend a the a to users recruitment future, just we since branding revenue. opinion in very money the have streaming. it or pattern. web live the question live to consent revenue, that's suitable

Phil Yu Zhang

Okay.

So regarding but I'll point July spend marketing Since add July a extra in healthy the achieved resumption in registration time August. did we one in very of most the we new user user money, of the July, not the in registrations, expenses. dollars early and numbers marketing

talk July, spend marketing actual dollars, spend the in time we not So when did money, in we to our -- money. most of

consider important So as we would criteria. the efficiency to like overall an

message we money like would our half. key the money wisely, is overspend So second we to and spend won't in that

Operator

Instructions]. [Operator

stand Please will from now Wei question. the Xiong next it And from comes the of by. line take We UBS.

Wei Xiong

user user registration. growth first post question the is resumption trends around My the of

than growth. seems enterprise started like So it to job the growth, when resume we faster growth the first user user is seeker

users seen when second, the to trends conversion we And strategy we and want collar enterprise accelerate rapid What's blue the the in as of our this business? have for recruitment. users? revenue a as growth So of years, of for business just the the few August near-term well the what's enter we what's into be? goals our blue If And from growth strategy collar paying similar and long-term in on achieve terms could to next and users month? contribution

Jonathan Peng Zhao

you job environment, question. user back want are actually, About are and have your smart the state first noticed from less macro have were for you at of coming who But Thank to our Okay. recovery of registration at of current -- quite trend opens hire there beginning decent. that the relatively sensitive on and your users people. current question enterprise And that will the seekers or to August, sooner. July the be people early quite that we been our witnessed the

large which jobs posted the indicator. relatively by discussed, XX%, enterprise in of compared the just clear increased user of feel terms have have our number in through our enterprise question. we in users a job technology increased that's user people by their have both the of quite have ecosystem And we and And pool, higher to XX% experience already July and As achievements. better newly capable to trend to -- adjust your to posted make those for terms first June. we users is we ratio who recovery a seekers their because are jobs And

Okay.

penetration our asking. blue question a collar And of next a you Currently, and our users number is white this. even what's and customer around of our And means and from quick we last For to we the within for revenue. year and you're small million. relying which year the the your quite collar the growth. achieve on stopped million collar I that portion we contribution -- regarding plan have answer users, rate XX growth months quite relatively still blue low. have second how after for XXX paid detailed our that, enterprise which around is a user X can accumulated paid support recovery is That's revenue can't

cetera. that's we We more more potential collar see huge answer users to still terms lower further So can white strategic blue question. strategy that's point. half our of industries, our growth. my for the And on about into our that to quite et a and tiers And have not your diversified in first penetrate view either collar growth

currently, existing all, ecosystem those all the of which is have lot into step blue are to are we it monetization better, we where transaction. the pursue regulate platform, the revenue we make forcing to before meaningful between the -- which early, frictions and a in priority, has as potential -- on our blue-collar each of for will still a industry we -- continue a users do too First there which agencies been to our quite collar If long intermediary continue will can we with a is trick, growth. for time,

have on our So many we talking first, that, clear projects so need for my the Thank for you. That's grow environment we current of revenue. what we the and that's to And then answer. will been times. basis

Operator

the question. question will Wu. now line of next the And the next comes take Natalie from We

Natalie Wu

resumption the come And congratulations I questions. results back on two of -- Hope have normalization. registration. and all to user

so the better the including with share of could chance macro sense? related The in is be I'm to regarding decline just the that July the can related mentioned how from first first You a we declined XX-month million non-lockdown is June, position the with in how enterprise metric the July. pandemic in could estate attributable X.X August, lockdowns? number this of issue decline, stuff? much month-over-month total growth one wondering And us get paid quarter. yield to real which also And the million you and XX% X.X much customers is

highest enterprise enterprise as the latest And recently my the related you mix that second the is growth Internet with industrial paying the and contribution, real the and customers wondering witnessed with related and similar is also which I'm the number industries just customer well? prices paid related And regarding growth the -- question estate customers. the number? contribution? wondering, Just for what's pay

Phil Yu Zhang

Thank Okay. Natalie, you, questions. for the

first enterprise So the I'll paid users regarding decline. answer your question

paying verified the at you our you bit showed in in if enterprise online was the versus business the paying not Basically, mean, look Maybe the -- dropped as situation quarter with in overall enterprise ratio the of users, little a enterprise So real ratio that like most online the little understand decrease. users, quite -- the was our quarter. a time. users But paying stable the I past that. paid bit active ratio paying that the users, second ratio

So second the business number the because customers enterprise And users the of that's in dropped. quarter paid drop mainly total dropped. dropped user, that second online or of pay, quarter the overall the active -- enterprise

we second our so the users, on some COVID review under So were enterprise no and users, quarter, grow didn't meanwhile, they we up business can users platform. our added cybersecurity in the platform. But of so cannot because outbreak, -- be means that new because show of onto

So was second ratio customers That caused that, on But because paying paid overall dropped. in online the platform quarter relatively dropped. of the business our users stable.

think the should reason registration. main partially So user the I outbreak impacted be new the with COVID and

the cannot -- -- we grow June around the of users to our that total in that's the the were able users. users drop. because new like was second for active from past starting like users. lowest And after enterprise new second we nearly XX, X And grow situation quarters business level at online quarter, were time, So paid we quarter,

overall So July, users, of the at was that online at lowest level. means the business beginning number

witnessed on by day that week drops. business from day, we starting week, So the by user point

first further after acceleration August, the of we So mid accelerated growth. July, we business of see see in And two of weeks especially users.

that overall through growth, enterprise ratio as recently. paid and healthy our And from mentioned, August of users, with base the So quite paid as along starting so that of users is our enterprise trend stable. quite was active the as grow increase or online means paying well. just business And users July

the in to and quarters, that are following better probably So continue, trends we quarter next the achieve see quarter. would help let confident quarter even and very us like the can to in even that we in third growth revenue to fourth and

situation So of side the business that's growth the recently.

Jonathan Peng Zhao

will your in recruitment answer industry. regarding I Okay. recovery second trend question the

collar sector. has Internet our on in and recovery help like urban momentum recovery have for in Internet that for pace the First ecosystem focusing our And because service trend whole with sector, worth of the portion in of witnessed to will collar and growth. the logistics line users users for sector, blue all, this certainly we is saw like service we faster continue a the overall which manufacturing we sector, expand. sector, subsector especially have And healthy, much is large quite to is accumulated we urban the blue

manufacturing, have like industry, care industries emerging other vehicle, recovery, and we use traditional electronic a consumer. real can And word for better some like high-end health we And new growth. the energy, like witnessed like and electronic estate

our So in customer the view that's industry the trend side. enterprise of

Operator

the We'll now Capital. take TH from And comes Tian question. the please. it One Hou moment, next line from

Tian Hou

at So we the When in we more of look downturn, cycle picture it's if question. look at have job market the we is economy. to much economies the much this is the the in And and balance. today, ratio so business-to-consumer bigger market, related more

give what And value beyond company the else expansion? any kind -- company job to seeker point, can this have finding wonder -- for seekers' them and business job the job life? does I for of has a those at to the company comfort, some add if So any the do plan

Jonathan Peng Zhao

have and like being. development to doing. question. invested are in, your the seeking. team in critical to still to people of of what, solve focus the on development And have on you for that our of lot front. a X,XXX have power utilize and resolve that's is the large most job believe extend to that seekers at stage, you things we to Thank technology, and the still their human though even need employees we is do we And of And we technology for of but I people, the current so capabilities firm are of would a currently, to things help we focusing to something very career heavily which job to

graduates -- majority to need this the for, reality. of that's do try do, what or what year, they million they they fresh For know the doesn't and them can graduate industries what XX.XX

available we supply viewing will have Shanghai for potential area potential in are present. jobs, recruiters and those urgent that's we figure better their severe personal and all in of outbreak to encouraging post potential And their opportunities to since sectors, jobs match platform, Jilin. those we to help Beijing, terms recruiters substantially power for So the how well, skills job of posting for terms help to utilizing with that drops best are we their try technology areas job and our and them they fresh we to that relationships are turn -- the of area, of kind the cetera and the in tried our the to social need And COVID-XX et within all achieve increase can to out on fix most which in we suited and graduates at like jobs encourage is that the job them, into to many free those are of the seekers. of postings

We products. operating, our subsidize through also through try to our

at but And to our cannot guide but -- can and we're we increase on fresh still how our continually by from find stage, experienced example, exploring operating can by professionals until we some For achieve those graduates time, seekers. out basis, revenue, seekers revenue that's that. substantially do. job with job a not to we might still secure value able are volunteering capability then, Maybe help more to certainty, currently, some And that they we exploring. job seekers. but And can an someday, to that what current we to job. And find we more that's the improve be

Operator

At turn participating. additional for you to will the That Thank or time, conference remarks. conference today. back the for Wen you. closing this concludes any Thank I Wen for Bei? Bei

all You disconnect. may

Kanzhun Limited (BZ) 23 Aug 222022 Q2 Earnings call transcript