Earnings call transcript Q4 2022

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Fourth Quarter and Full Year 2022 Results Financial Results Conference Call. At this time, all participants are in 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. of Head Wang, Bei Investor Relations. Wen ahead, go ma'am. Please

Wen Bei Wang

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

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

factors Before we involve uncertainties current management's expectations to to observations that would under remind discussion risks, that today's not on we contain are forward control materially be or other cause based and company's start, known and unknown results, may different. actual company -looking achievements like which you statements, the which and the of may performance

forward-looking cautions do required by information forward-looking not you undue place law. statements company not reliance obligation and any on these except The undertake as to update to

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

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

call at In be addition, a will our ir.zhipin.com. on available webcast replay of this conference website

that our CEO. Founder, call will Chairman to Jonathan, now With and turn the I

Jonathan Peng Zhao

and Language] quarter to express and all been to users us. tough for everyone. year XXXX The employees. Welcome year our our and a one fourth conference our has like would sincere Hello, to I of past earnings gratitude [Foreign investors call. our full

and I [Foreign quarter XXXX. performance year full our fourth Language] would the of First, like to you share for with

billion in December, our the compared past year. of effects and Over the of with particularly revenue posed RMBX.X cumulative last great quite period during COVID-XX past relatively quarters. quarter, the same fourth of normal by not the operations over resurgence, to affected quarter. Flat an outbreaks GAAP primarily the outcome, of calculated challenges The we epidemic billion, last billings the surge which the recorded RMBX.XX is cash ideal is flat

Kong by the Stock On introduction. dual way our XXnd, Hong Language] on Exchange company primary the listing we milestones. achieved significant December quarter, two successfully of [Foreign In fourth the completed of

FIFA World an sponsor Secondly, we XXXX. the of official FIFA partner became and Cup Qatar

marketing this effectively for the period, the our Although from influence our the event broad both elevated brand. exposure the sponsorship company's expenses enhanced and of expanded renowned

in fourth Despite we able in quarter. increase expense, to were the profitability achieve this still

income, which reached adjusted expenses, RMBXX.X net billion. share-based excludes compensation Our

XXXX, For the were GAAP full revenues Language] [Foreign year of billion. our RMBX.XX

Our calculated net non-GAAP billion RMBXXX million. compensation excluding reached reached billing cash RMBX.XX and adjusted our expenses, income share-based

[Foreign fourth the we Language] quarter new Nevertheless, the of in In operations, growth with off users. solid the recruitment a traditional is season momentum our industry. terms maintain

XX% User Our DAU MAUs for up year-over-year. the our stable. activities to million MAU or ratio fourth XX.XX remain quarter, reached

let Now interested [Foreign you the on we record a Language] following Spring the me Alongside which of numerous Festival, work highs. be our business drove users new an array in resurgence share some that this following the operating of user in. saw resumption many details reach Spring core Festival and to growth year, recovery may metrics

User During months XXXX, the newly The than increased XX% on of the million. quickly X for first XXXX by our average in in users with solid history enterprise the hit our level the DAU again to is growth. also record high. yet And which highest monthly year-over-year. two of app our exceeded approximately activities, February, MAU year-on-year MAUs first our a to verified average soared users more active two months

increase we monthly the The of guarantee. continued [indiscernible] achievements, enhanced are platform, user average which through of experience would the to has which growing like average we number both upgrade of seekers on and rapidly, our number deliver of still is mutual number consent While TAM is to able enterprise for total users job February. our to users an

forecast. needs platforms realising deep our user's and is and exploration capabilities and into are within the efficiencies new our double-sided we insights from our growth, our algorithm network continuously preferences this drive that To improving

robust [Foreign quarter. like share terms growth, some in now Language] would this of user keywords In our till to we

new keyword numbers first stronger and adoption rate. users Festival, their Spring white-collar growth the of showed absolute is our terms blue-collar the users, users following blue-collar. both in Among of The platform than

keyword tier is lower cities. second The

In users effectively much from the cities which regions, first second in of of grew markets. of in to number and terms tier continually lower ability expand tier the to testament number than our lower cities, a is tier users faster penetration our and

rapidly, is which time The SMEs large sized The enterprise. enterprises. faster demand recovery are SMEs The and small medium first of shows compared keyword our a keyword with recruitment from cash. the fourth is accelerated

we first collection than quarter growth more to XX% cash quick high a XXXX of an and year-over-year. witnessed recovery our have collections with all-time of sequentially and reach growth our We estimated XX% set the cash in over

and the urban in industry than industry. is bright XX% fifth this of first newly service year-over-year service face been last keyword we postings. The job a quarter The face more by to the have total Spring contact the spot seen Festival, increase Since the of characterized urban a number in year. has

[Foreign other showed and industry, sectors growth new healthcare performed well. all manufacturing as automobile retail, including such high-end as Sectors energy transportation positive the Language] the Some and also trend. as well

continued positions and estate and improvement and other in all of activities is Festival. in over that to presenting sales, first number Spring also of encouraging business The week show Real after of education stabilization showed functions marketing, recovery signs week have the the enterprises improving open procurement quarter.

medium the of large also after pick activities Spring and up recruitment The Festival. enterprises gradually

confidence sign of potential us this growth economic these overall show give trends of All year. revival and for in our a

XXX XXXX, the second inclusion was public the company. Philanthropy [Foreign Language] October XXXX shortlisted in China's undertaking for List our Enterprises committed year. consecutive We to for as Top in remain company once again responsibility social the a In

persons Persons' XXX,XXX Search The throughout service Federation the to disabilities Service a China launched jointly to Barrier-Free the Employment Disabled jobseekers cumulative company with and Assistance Administration for and Centre Service disabled Plan XXXX. Job provide

for Service, more than which also is expected college Recruitment Recruitment positions Campus Annual Ministry Spring We thousands recently of across the enterprises. hundreds XXXXX with of to students the co-organized XXXX offer of open Festival Education

one to the program up to $XXX Language] of today new share share XX long-term more over months to [Foreign And with repurchase a stability. share Board support price to million approved our thing you, Directors our repurchase next

With that for over the I financials. Phil, our to our Thank CFO, you. review a call turn will of

Phil Yu Zhang

everyone. and also Jonathan, Thanks,

through Now the our details let of me of results fourth financial go of the year full and XXXX. quarter

you me help better Let understand numbers. our

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

respectively cash the this quarter and billings billion of RMBX.X same Our stayed COVID XXXX, revenues with quarter and the impact. billion level the RMBX.XX the at despite reached calculated fourth

suspension our down the to by quarter customer X.X in of year the sized due small and XXXX, XXXX to million, XX% well grew revenues for in the full COVID second was accounts the billion. year, to mainly the X% fourth of half compared quarter. user by outbreak as paid RMBX.X enterprise XXXX, by first as For number decreases in affected registration Total

stayed maintained achieved ratio each in at good Revenues quarter and the in paying growth ARPU momentum level. the While and a key record and high both medium-sized of XXXX. steadily numbers healthy and accounts accounts

Hong in billion turn let's XX% and Kong due cost mainly costs share based related Now to the one, RMBX.X the compensation number including to to year-on-year side. related IPO. in expenses, employee increases operating expenses up quarter Total were

And number Cup World two, XXXX sponsorship.

by RMBX.X decreased higher in and operating primarily XX% RMBXXX to bandwidth total the full of user For million XXXX, expenses by expenses requirements. our and costs to server year employee quarter, to expand costs of increases driven this related as Cost base by revenues and billion. the continues in and XX% security increased

quarter the to by impacted margin, last percentage quarter by the Gross mainly because in expenses growth situation. was revenue COVID down was compensation point one the share-based excluding compared XX.X% of the for quarter

majority cost the the of still relatively was While fixed.

year margin -- an compared down full XXXX, million, to by of adjusted gross due similar of the XX% revenues RMBXXX increased three For percentage to an with XXXX XX.X% to cost increase reasons. with by points

revenue margins are We sequential of growth. gross recovery along a year gradual this our expecting with

to Sales the expenses million in XX% due to of and campaign increased marketing XXXX year-on-year Cup. World was primarily by the which FIFA marketing quarter, RMBXXX

full up year-on-year. were year sales our RMBX of expenses marketing XXXX, For and billion, X% the

in and customer and saw demonstrating efficiency acquisition costs result decline improved Excluding our the sponsorship XX% satisfaction. year-on-year a as we recognition world brand stronger in expenses, class XXXX, of user branding a marketing

continues while growth effective will strategy, be For user marketing XXXX, maintain robust. we this expecting to

monitored will under and expenses our good be control. marketing Our

Our by to year-on-year due XX% increase mainly RMBXXX increased quarter in the R&D million to expenses. this of expenses employee related

RMBX.XX primarily fees expenses Hong and the XXXX, were R&D primary for For XX% reason. G&A billion, expenses increases our by dual employee related to Kong. increased up in same RMBXXX in year this in by XXX% service quarter full related due to professional the listing year-on-year of expenses to year-on-year million,

by for IPO. (ph) this and XX% US expenses related quarter in share-based expenses compensation year our compensation share-based billion of fees, And the due recognized listing related of Hong by was G&A [RMBX.X] XX% the Excluding XXXX, G&A our to to adjusted decreased XXXX expenses in RMBXXX one-off million, full primarily up Kong year-on-year.

we calculation year and shows simple XX% XXXX. the adjusted fees this for quarter the compensation our Our listing, if sponsorship Hong margin XX% of to World and Cup the that Kong operating related professional was and service share-based our for full exclude

Net million, annual In was generated income RMBXX for quarter share-based XXXX, net RMBXXX loss our million. income we and RMBXXX this adjusted in excluding of net this million of positive quarter RMBXXX income was million. compensation, net adjusted

full Our RMBXXX this for quarter and from million year. RMBX was for net the generated operating activities billion cash

for and XX.X%. short-term be investments X.X% outlook, cash, to to As and for our first billion. to business of December a increase billion, we now between billion of year-on-year quarter our XXst our RMBX.XX XXXX, equivalents reached revenues total XXXX, And RMBX.XX expect cash of RMBXX.X the

quarter As more a quarter-over-quarter Jonathan this year. year-over-year, increase is by than just XX% billings start to mentioned, us XX% gives which the for calculated in expected good cash our over and

witnessed confident With accelerating the of the and business are growth. strive whole our improving signs we to so recovery growth year far, outlook for feel and economy for optimistic for user robust an

prepared my With concludes remarks. that

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

Operator

Please Instructions] first stand take is question Wei [Operator you. Xiong Please question. the Thank first ahead. by. of UBS. now your from line you. our from And We'll go Thank

Wei Xiong

second, margin will environment on year to for you. is step also customers? or post the the how questions. at do Year? growth versus in we versus business budget we If For on Thank target whether revenue up more Chinese My first the between competitive recovery, user a do thoughts the Language] the example, whole Thank look we could want New the you recovery the [Foreign recruiting taking customers ratio your you reopen And trends if my the for And between the in their ask we about about share growth how see do management the user question compare management the investment think landscape growth? XXXX? and color difference jobseeker how the XXXX. versus SME raise K competitors balance

Jonathan Peng Zhao

[Foreign Language] for Thank you your question.

after the our have just discussed, quarter. situation the highs MAUs significant DAUs, historical about and recorded Spring Festival, for concerns both the growth first very as -- your significant Regarding I we which in a

And a jobseekers, which stay our in a one of nine number terms active users, to good improving. one the which enterprise high, enterprise the also historical means encouraging, -- has to for enterprise customers but trend is hit not has And to XX, only or ratio recognition. still like of but

that the terms In enterprises, speed flexible and faster. witnessed SMEs the small is is of of recovery their size more we have

And because is later if not faster. it much during it but process. faster. recovery is say making XXXX. also the prudent in SMEs also this the recovered the all I about is recovery situation same the I that situation, add their large have experience it's SMEs, does the enterprises, follow large can still decisions. more for enterprises, the when bad, In them And they capability, of and we XXXX also is course that to their are would the like than further much

the [Foreign for that the year. the -- changed, new the to second predicted economy, competition, landscape of your about are users they has Language] our spending with as you question recovery to overall this -- competitive have planning currently correctly peers, more not they And acquire along to

will it our feel this follow. quarter. already what that will terms our not have kind strategy in in to of pressure do planning and we we're impact But we whether profits, that is of And

do growth our own user high our retention things will a Based We reasonable according pace and and to stickiness strategies. and strategy. on and --

affect this hoping XX million our confident are -- we acquire that reach that We -- won't XX target can million quite the have achieve to overspending and I growth without of user to to still to I'm target year. new margin. it

Wei Xiong

[Foreign Language] management. you Thank

Jonathan Peng Zhao

you. Thank

Operator

Please Thank now you. line from question. We'll next of Wang stand Please Stanley. go the And from by. take question the Eddy next Morgan our ahead. is

Eddy Wang

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

in rate especially rate. unemployment about youth February been -- the the is First high, has the quite and the January unemployment actually for

the there the the terms you university a of demand. have there I that a -- quite side, of for or supply college side, actually in think more is college the actually labor jobs blue-collar high graduates, demand do expect So -- but the

So the overall landscape China faster to this in can the mismatch will this on how leverage mismatch impact and -- our the in and on adjust of we'll year. recruitment this trying strategy

heard question the that Year Tier and labor cities. to shortage there labor X no to after back coming Chinese the more is -- we The longer second when more Tier the is the actually the X or New

Not we ground the also what sure is this as on if witnessed well.

the or be little low, long the of ChatGPT. longer a could bit in longer term, by the term about ChatGPT job you a the a are bit, lower The term. the the is it's replaced little mid white-collar third bit question that, little to about People the talking know, in

your what's you. Thank this? thought So on

Jonathan Peng Zhao

you Language] Thank question. [Foreign your for

question, your of are there users on platform. first blue-collar Regarding types two our

postings. The And within urban in as first as urban -- we both is the job well user one the fast service we growth service. the have witnessed industry, have

lack is sector. for of It issue about So is no postings. fine there job this

manufacturing, improving And the Spring compared seven the saw New the has been the the in after Chinese until eight after lower But situation to been is that this weeks the did has much growth In growth. which seeker we Year first, Festival of terms postings job job recently. Festival. week, to

platform, There look which on platform. the enterprise consent observations. and metrics achieved between means we a at interesting key which achievement, our users quite mutual a is job seekers the on is There our is

been manufacturing last has industry, seeker that some but achieve So person within has compared of year, level observed slightly but not the what efforts have per we greater. for to huge, achievement average the decreased to the achievement much job

this time metric the about have I publicly. This is first been talking

the the to achievement that has when much efforts is seekers result overall But So job the decreased need a is result bigger. little bit. put

they severity is of the result to feelings of seeking much the get. So felt, of that the have they job compared the greater to

quite for mismatching difficult find about job under for past that we lot asked, our manufacturing, the job less job which professional questions situation which job of service, of a seekers. within urban especially seen there lot the in that the platform. But flexibility and blue-collar a what quite have is So seekers a subsectors, you offerings the quite is logistics cannot this is

terms of their and in both they're and ages job the skills So working.

their of seen kinds So to between we different have the switching adaption seeking. satisfy the job seekers industries to for job need of

say. application regarding [Foreign a question. It still this interesting platform. But ChatGPT, the not Language] And to much actual to quite comment last early on -- too is there's question on of too for technology your to which is

this But technology we have create. focused it been on and and challenge highly the opportunity might

-- to a personal some and advantage advantages noticed has to we or this technology example example -- for recently generate So that the applied scenario resume already team for etcetera.

seriously and on -- and have So been this. our thinking team following

which moving the a the will like the a manufacturing of So challenge the white-collar some physical of warehouse, have industry similar within of -- jobs, replaced concern, for element valid works some very to is whether the this workers. the a blue-collar moving this -- robots impose

of the -- So the technology, be of also AI. some the some new new by might by white-collar replaced -- jobs

trend. that's potential So a

able be confident. -- hope technology. can that we we hope the tell and I'm they value Language] on our create that in now users, fast from [Foreign that what future based to for I the fast quite And from users kind -- investors would I our be AIGC can of not our

Eddy Wang

you. Language] [Foreign Thank

Operator

from now Please of from the Zhao Thank line our stand by. ahead. take go question. Please This Sachs. Timothy Goldman you. is next We'll

Timothy Zhao

solid you for my congrats outlook Thank questions. for quarter. and the Language] the taking I first on [Foreign question management the and two result strong have

think How technology about [GPT] XXXX AIGC areas for invest expenses is in planning XX% to And the which in revenue we in of the should terms First recent in R&D are XXXX. considering (ph) investments? R&D we the including account innovation, that of around technologies. about

the model And the these on campaign we efficiency think recruitment the of we the as allocation? about improving And marketing on understand and what capital from human technologies secondly online impact do the around share has that for thinking what is this outcome your and management Cup are the have we marketing anything on World marketing observed finished, FIFA you that could and you. about year? Thank pace branding

Jonathan Peng Zhao

Language] [Foreign your question R&D year. first regarding About this investment our

haven't all the As potential taken always, too consideration modeling, we but the will we model year, into and enhance continue technology of investment those application AIGC -- training scenarios etcetera. and this much to

annual that, looking actively haven't our done budgeting. that are at We but for

expense our this. will too scientists. I which more considered engineers normal and all And also said, our input been have major technologies. But increase we for much more even into those hardware, in plan, pay AIGC -- computer notice expensive as will we have we related be will -- -- and the So and we we and better about in just haven't

but enough to say a into Language] -- we do that. as have as capability -- we'll large confident further I'm And we And ambitious to and a and to company. -- that are invest and capable absolutely this technology [Foreign and invest

our sponsorship about -- question [Foreign event in result, of that is your of the the of accordance FIFA Cup, And the I regarding outcome Language] say can second World our big expectations.

in robust per year, quite we very in of the very person. marketing, have customer user cost cheap first two digital months -- the within results the is -- witnessed we efficient acquisition So growth the this which

campaign quite during successful. we or mainly find -- has technology one but year our exposure the is very last new marketing the last because out because -- the price has month, market offered for been the some marketing, last This not a have of lower more high

effect spend to been brand us digital improved. So recognition this during continue to this will our and reduce marketing our year. And benefit has --

Phil Yu Zhang

So like this add I question. to a to little expense would bit marketing

first would as growth, think in an this of we user traffic we of I approach -- acquire performance advertisement So based as branding be consider all, would that's of growth. user be that acquisition, you the good know new use year And terms XXXX a to users.

And more performance. branding resources nowadays the towards put the over we

branding ahead. there branding think other rise their overall XXXX for continue. continues expenses. related we within this will trend percentage our And percentage And the events to no branding is ahead that there looking So -- marketing expenses, big

growth overall I So overall user mention linear more need our And you affect strategy line XXXX top margin. user know, our is also or to target like that won't growth for our -- growth growth. our or related margin to more,

So margin that further we if we like higher expect can the then expansion and would revenue grow for XXXX. see to faster,

So, toward are, trend. know, views think we far so you that this we positive holding

margin should for XXXX. that believe we So be improving

Timothy Zhao

Thank you. very helpful. That's

Operator

you. or At concludes this to constraint the Wen question-and-answer for will Thank time, additional today's closing time I to back session. Due hand conference remarks. Bei any that

Wen Bei Wang

joining once you Thank again us for today.

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

Operator

Thank you participating you. conclude for Thank This disconnect. may you today. and the for now does conference

Kanzhun Limited (BZ) 20 Mar 232022 Q4 Earnings call transcript