BZ - Earnings call 3 2023 | Kanzhun Limited

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Third Quarter 2023 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. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.

Wenbei Wang

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

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

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

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

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

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

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

Peng Zhao

[Foreign Language]

Wenbei Wang

Hello, employees, will to us. Quarter behalf our and like gratitude Welcome stress company Earnings and Board users the of Conference support Call. our On to [Interpreted] our team Directors XXXX I to sincere of trust would and and our investors management Third everyone.

Peng Zhao

[Foreign Language]

Wenbei Wang

X.XX [Interpreted] billion RMB year-on-year. XX.X% X.XX quarter billion like performance cash RMB for throughout XX.X% First, our quarter We GAAP to calculated third booked of I this would for billings, the recorded the share you with revenue history. year-on-year. in We up up

compensation Our RMB by million XX.X% adjusted increased year-on-year expenses, [ share-based XXX excluded which to ]. net income,

Peng Zhao

Language] [Foreign

Wenbei Wang

record financing amount making returns, which of excludes income, million, income high was quarterly and margin. in XXX RMB absolute terms asset as such both a Our operating [Interpreted] other

Peng Zhao

Language] [Foreign

Wenbei Wang

continue both enterprise customers ratio total reached the active the improve. and [Interpreted] paid quarter-on-quarter, X.X% X.X million Our user months customer paying enterprise up to and XX.X% year-on-year number total XX paid in

Peng Zhao

Language] [Foreign

Wenbei Wang

XX.X app the XX.X% million, million users added [Interpreted] of number monthly active approximately verified XX Zhipin In the BOSS year-on-year third with quarter, reached on newly up users. the average verified by

verified year for past newly million. accumulated this the cohort quarters of few XX Our users exceeded

Peng Zhao

[Foreign Language]

Wenbei Wang

third users our time, our user stable as percentage year, November main number high which to on pay During next with moment. at verified XXX level. monthly average activeness the a we achievements In XXX new a in than Limited the which relatively I ] be quarter, late third [Interpreted] expected recorded years, is if of average the company the the [ will forecasted million seems At X are neutral platform. you same at last more quarter, add that million the there will Kanzhun

Peng Zhao

[Foreign Language]

Wenbei Wang

[Interpreted] a in recruitment. season Third is increase recruitment continuous for quarter demand. The [indiscernible] peak conditional

the active number sequentially, significantly stable, While X% active of increased enterprise number due both seasons of user enterprise average the active drop than monthly and average monthly monthly record more by to remains sequence highs.

Peng Zhao

[Foreign Language]

Wenbei Wang

with [Interpreted] was of industry In delivered in number collar posting daily other service and of the for for sector revenue most other largest breakdown, sector the recruitment quarter blue-collar the active blue X the both postings second added million. contributor especially performance, which job service terms this the industry of exceeded outstanding job

Peng Zhao

[Foreign Language]

Wenbei Wang

set take involves seekers. logistics also which categories other as job sectors, The boosted warehousing [Interpreted] So some young workers manufacturing supply look overall and let's a more and blue-collar chain such industries at transportation, job increase.

Peng Zhao

[Foreign Language]

Wenbei Wang

the raised nearly to XX%. industry drivers blue [Interpreted] revenue These contribution collar

Peng Zhao

Language] [Foreign

Wenbei Wang

quarter-on-quarter internet, such the fairly internet basis related energy, on as aftermarket, consumer materials a momentum overall sales manufacturing industries and automobile, lifestyle Other also new industry basis. whilst raw maintaining machinery quarterly growth on [Interpreted] to grew a service

Peng Zhao

Language] [Foreign

Wenbei Wang

active enterprises of terms increased quarter from quickly of number and newly of larger year, the recovery positions. demand half contrast of in the in added [Interpreted] In to more the relatively first the this job

Peng Zhao

[Foreign Language]

Wenbei Wang

inquiries X,XXX go than prices Future faster. more [Interpreted] with

Peng Zhao

[Foreign Language]

Wenbei Wang

city From number the income. lower-tier of second perspective, positions job and level continued and [Interpreted] outperform. decrease to the both in cities tier The

Peng Zhao

[Foreign Language]

Wenbei Wang

this corporate quarter, on [ terms workers. of social dedicated blue and of group In which we collar [Interpreted] employment in focused ] people, is responsibility, of hoping typical the

Peng Zhao

Language] [Foreign

Wenbei Wang

[indiscernible] than group XXX,XXX more [Interpreted] activities. public than for seekers X,XXX Nearly enterprises cover XXX,XXX job recruitment ] of [ Provide providing the participants. and more positions

Peng Zhao

[Foreign Language]

Wenbei Wang

continues thing stable the to for [Interpreted] for improve. to our This One trends and ] more and our declared company's first add, a cash their we support Board approval, as special shareholders return time. the [ dividend to with profitability be a firm is

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] dividend per of expected distributed for this [indiscernible] to million. accredited USD amount the year. is X.XX is in approximately share [indiscernible] dividend USD is [ XX be mid ] late X.XX The an per This which December amount USD to

Peng Zhao

Language] [Foreign

Wenbei Wang

part the for over review of turn I the CFO, our financials. [Interpreted] That's Thank to our call, it you. of now will my all for

Yu Zhang

Hello, Jonathan. Thanks, everyone.

all the third Now the XXXX. solid past with of let you me of quarter walk key financial our exceeding through the figures achieved financial results expectations. quarter details our in performance We a

high billion our end to exceeded in RMB the [ quarter-on-quarter. growth Our the ] X.XX XX% of XX% [ portfolio ] representing revenues and guidance year-on-year

for RMB results to XX% growth user plus strong among high reached ratio mainly customers in an quarter-on-quarter. improved year-on-year new level users. healthy demand user were recruitment enterprise The release X.XX as X% reached X.X active quarter. XX the billion, indicating XX on to number as months the another due September cash up million paying calculated recover engagement and Our the The well of ended good

of dragged per overall mainly slight paying for which increased stands from user, A-R-P-P-U decline revenue average was ARPPU, accounts. by revenue the contribution small-sized down the Despite

find growth enterprises. key improving among happy accounts large are sequential trend, the is ARPPU We to see demand of and out recruitment that show

X.XX costs this XX% expenses Moving billion, up the and for operating year-on-year. quarter Total side. were cost to RMB

up and quarter, by were this high, costs our XX.X% margin the up keeps quarterly period with a share-based The X.XX adjusted points percentage billion, the Excluding quarter year-on-year. X.X same from year-on-year. record to adjusted expenses compensation, stable [indiscernible] operating relatively RMB year improved and in last last XX.X% operating

and proved leverage. monetization again our once operating powerful profitability strong This our model effective efficiency,

by million revenues by of increased RMB to margin XXX of quarter-on-quarter. percentage up cost quarter, year-on-year XX% a this points representing gross Our X.X XX.X%

the achieved up the first momentum effective this due quarter past improvement a of from bottomed gross Our quarters the on cost X growth control. mainly revenue and top year the to sequential an in of recovery margin

XXX expenses was marketing Our million XX% Adjusted year-on-year. XX% were expenses sales year-on-year, advertising sales, increased marketing employee-related due and XXX and activities. up RMB up million, increase to RMB sales was and and this enhanced expenses primarily

showcased marketing scale. and decline expenses Notably, our ratio superior and enhanced marketing XX paid of trailing continue again and enterprise MAU to while our once months continue to our efficiency grow of economy customers selling

by and year-on-year to quarter million, XXX increased XXX to year-on-year, Our was RMB further million, RMB areas to especially adjusted XX% R&D and due our developments investments in R&D this XX% technology talent related primarily AI expenses in our expenses technology. in up

with quarter Our in expenses stable G&A expenses increased adjusted remained XXX RMB XX% relatively this and period year. by G&A million year-on-year last sustained to

was operations. mainly up grew by RMB our Our quarter. an new RMB the net as XXX Net in million More adjusted year, income XX this to from contributed points quarter XXX increased XXX% by same that adjusted last activities this collection by set of year-on-year. percentage net income RMB a XXX cash [ net to year-on-year and consulting operating cash million quarter than doubled ] for provided record million reached margin XX%,

will shareholders. short-term long-term we XX, As and our billion time sustainable deposit cash, XX.X X.X the cash X.X in generation ample try RMB RMB and best to investments were totaled wealth outstanding and reserve cash equivalents capabilities, our investments supported by management billion, as were to XXXX, our of which deliver RMB September products billion, cash returns our

for And our now business outlook.

fourth to accounts our revenues billion to mainly the RMB progress, QX XX%. that continue concludes our between increase to Based on due XXXX, that, the current grow to we of X.XX quarter XX% remarks. expect expect our a and balance sequentially, With we billion, For of year-on-year total contributions. prepared cash key RMB in be to X.XX

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

Operator

Morgan [Operator will Eddie question of from Instructions] Your Stanley. first Wang come

Eddy Wang

quarter see the the improving what far. is quarter third of adopt any the to we market in second is special dividend this announced. [indiscernible] at seen just increase the and And demand My What the there supply plan the have of and so the In of question seeker terms special [Foreign job continue trend have is far the plan have employers. considered you fourth return time? in the in job between to and question first the regarding so the future. this dividend KA in the been further you shareholder any Language] dynamic recovery Have quarter third the and And you

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] question. Thank you for your

different bit high cover very call year, we and Regarding recruitment, and recruitment observed for trend quarter, good that's it your market question, first is traditionally quarter is continue September third will October. that that October still third in a that's to we A November, good. the and information. for what the the little recruitment demand in fairly season gold This the

for be the traditionally, still trend, will is we take if of , fourth there for [indiscernible] But the demand. quite quarter, into So coming some pullback overall [indiscernible] wise the good. consideration

Peng Zhao

Language] [Foreign

Wenbei Wang

more of the been recover. this larger their to take time need they Regarding job fully [Interpreted] job time, need we but recovery increasing, has to I companies, progress, observed a some their motivation postings, post to that

good this companies, still we especially stage. companies at Chinese before, say ] [indiscernible] and [ contract smaller As large introduced very covered maintain trend

tax common we larger For to that time. some do they recovering need trend, under companies, for the are

Peng Zhao

Language] [Foreign

Wenbei Wang

we be X And and can companies, market and job job they companies, to will more means jobs, from X to categories more of also they [Interpreted] more number single of point recruiters something the posting and the for of the larger recruiters of job expecting. single their to recruit because support with that's postings headcount regard X cover for in larger job which more post bigger numbers can are posting even add

Peng Zhao

Language] [Foreign

Wenbei Wang

very on is We a recruiters the [Interpreted] quarter, demand average which high, overall a emphasize active third the historical as monthly average want of monthly trend, for recruiters number that clear to sign recovering. overall is which also active

Peng Zhao

Language] [Foreign

Wenbei Wang

always of we your support shareholders, and results payment. history, from would for second our to dividend with our And with our regarding very this of like shareholders share is Yes. strong question and alongside [Interpreted] we dividend development our our that payment, contributions X we received

are results other to activity long-term happy decided shareholders, that. and from the companies, and other We we and many we have -- very do our our take so to to share with talent

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] And more the billion company XX had now confident are is over flows, and payment. very that and than cash we And also, do to the the related under management why very strong the products. operating good of and cash that's dividend holds this company RMB premises cash

Peng Zhao

[Foreign Language]

Wenbei Wang

good I purchased a method we we to certain X the that. return will share on amount have very conditions. our that also, and and to shares view, this continue And we repurchase terms to a and to very to want already programs, results under continue share announced is [Interpreted] do some shareholders our add And of a of broader

Operator

Timothy of The next comes Goldman from Sachs. question Zhao

Timothy Zhao

results [Foreign on well Language] the the X I strong Congrats have as strong very questions. as outlook.

progress more close mentioned, collar, posting and that had. revenue. as fourth of white First, of fourth does posting share the note demand collar far. business behavior payment strategy elaborate share blue penetrating is could for performed side, contributed or has in potential our further different collar, company your detailed the so you models to quarter what job management that made the the and what college regarding individual blue to the Kanzhun And second quarter? how blue collar, sector my quarter for third third the outlook did the and type including collar enterprise Besides including, Could collar in blue multiple quarter blue And year-to-date, question color XX% the quarter? job users, revenue regarding on are is recruitment students the in

Peng Zhao

[Foreign Language]

Wenbei Wang

Thank question. for Yes. you your [Interpreted]

last with is to relatively Regarding collars. industries is have of the the that and easy provide quite quarter face-to-face the situation year or revenue understand enterprise communications the easy good has The which industry and service very conditions some yes, growth urban we behind for new hard industry, recover some the third the to brings ] a witnessed the especially users to blue can reason company in both because also performing recovering [ which first has start better of one, compared Industries. [indiscernible] it increase quite the original same involves in from and people

trend that their so recover trend feelings, People is has to the certainly And but the the current now very good. recovery, and difficulty [indiscernible] been

services also, it for easy was customers to and And very acquire consumers industry. other

we'd environment [indiscernible] which transportation, new So quarter to very protection like in job strict very and energy, But active for this performed which best third active metrics one. other is automobile, et industry cetera. means posting, is the recruiting. online And also, industries relatively numbers share the better logistics, some

urban the more posting grew the job the sequentially, than by service XX% online restaurant grew active So than and retailing this XX% industry sequentially. for is quarter more among which

Peng Zhao

[Foreign Language]

Wenbei Wang

in Another grew convincing and that the warehousing is active quarter-over-quarter. more than terms number XX% postings [Interpreted] of industries, transportation online among job logistics

Peng Zhao

[Foreign Language]

Wenbei Wang

[Interpreted] So energy the people terms this recover already of people, new and the white-collar have demand in a industries, the automotive, [indiscernible]. that of lot industry white-collar noticed aftermarket,

Peng Zhao

[Foreign Language]

Wenbei Wang

Another and show observation quarter. also of technology Internet might significant might as technology interesting people such job in related more artificial case which [Interpreted] general is that jobs get is increase, development this a also exactly increase to the positions, a from

Peng Zhao

Language] [Foreign

Wenbei Wang

posting unit quarter, new which enterprise in by third number another job with more with more increased interesting this jobs enterprise added shows XX,XXX the quarter while difference people, X% employees the their last to average than X%, in And less [Interpreted] around than daily than average increased XXX quarter. compared also expected is

Peng Zhao

Language] [Foreign

Wenbei Wang

Regarding to for satisfaction [Interpreted] question any with in users, strategy second user is accelerate blue the have our which the plans satisfied are terms and penetration rate, your market [indiscernible] monetization [indiscernible] aggressive this in current scores, in we collar model our we coverage and of blue-collar more penetration and process. don't situation, current quite further

Peng Zhao

Language] [Foreign

Wenbei Wang

blue capability also, are But [Interpreted] exploring we users. to the continuously service the collar

For the example, the users. to sector, manufacturing provide service sector on already we are for in manufacturing cost

Operator

of The UBS. comes from Wei next Xiong question

Wei Xiong

the regarding competition first landscape. Language] [Foreign question is My

macro the market more that uncertain lack our the to stronger. platforms new market the make slow the existing growth progress, entrants leadership case the it potential, is situation recruiting given So and while which even conditions, a makes the seems

share year, next ARPPU our And change how paying as recruiting the into trending side, management expect on the online is ratio more ARPPU on the well second, in how trend could the recently? color Looking do market? KA the platform, we especially as competitive growth the on landscape

Peng Zhao

[Foreign Language]

Wenbei Wang

situation Thank you your question. the X in third competitive And relatively no quarter. for about stable, is overall the [Interpreted] the for first clear change the landscape,

has on past kinds pressure every years advantages. However, to of all in their , company quite believe due actually, X I [indiscernible] the showed internally strategic

that it company, competitive advantage group very in from and the we the seeing a plans [indiscernible] For strategic been companies own state and an in has have front.

perspective for high-end by providing continue think they its recognized I to good enterprise the company, market. service will are enhance competitive new a For And at has every my And to unique talent that and landscape. answer that. in the also characteristics to further that's

Yu Zhang

Okay.

second So trend. regarding your of the ARPU question

So I'd bit. like to come a little

So we that X.X XX of months customers. recorded enterprise the we in of million paid quarter, announced trailing

paid in months you probably as X.X the XX that customers, quarter, remember number that ] second So million. [ was

X.X million So enterprise we customers. increased roughly paid

the of So this growth enterprise paid customers.

main I growth fast. moment the the that user think reason still is overall is at this

they most new the to pay when of user a service, through purchase. to do platform, them, try our our portal service use online the So online when purchase comes to prefer self-serve they to our want or

overall customer So paid enterprise our that number. increased

and ratio, sales. by they improved more, trend to In believe that the we paying a have of are try they use service heavy usage convert our and and the well affiliates, an into with terms small for definitely user our off-line we through the size purchase. of -- familiar them see lot services And our they we contract will when

also relatively same the quarter. accounts. sized what definitely the And key ARPPU stable paid trend have at improving will users from in situation happened the the ratio grow so to small active the the with medium of paying continue And enterprises a the online definitely and and users, we active believe some and will

large ARPPU corporates, revenue overall also they our contribution larger driven increasing increased contribute the enterprises, demand. recruitment size basically, small But the by their So to to our business. of revenue, higher, the the

little ARPU basically, bit. are the smaller declined a So data higher they with overall landed than ARPU ARPU land

X. maintain their the the they increase, a lending bit. but overall small large This ARPU the basically, the in is with and little current quarter creates So size ARPU ARPU good situation ARPU accounts,

Operator

Robin of Bernstein. comes The Zhu next from question

Robin Zhu

first margin for company major [Foreign question, does Language] how My How plan XXXX. balance and magnitude growth expansion we as the does think the investments versus forward. go growth management about to so

XXXX [indiscernible] with into the 'XX discussions share renewal And and accounts state ARPPU the year? the of to question, extent if going on that Second management can key outlook next growth in possible retention. any growth

Yu Zhang

Okay.

So I'll first question. the answer

X users the we years. that new So million achieve next we X will in previously announced to XXX

basically, So this progress, to according we are year's track. on

users. achieved end new by verified we million the So October, of XX

of like Definitely, the good about historical in continue margin. folks. seen So basically, talk of terms very we I in new have you third for growth results And we that the our will a users. this achieved is have growth we our year, new the user a quarter, year, when would next user to high operating

managed we we basically, [indiscernible] that So communicated strategy. our grow with to previously, without

So our more over resources on is [indiscernible] costs. acquisition brand strategy putting

this works basically, So well. strategy

will to we best further we'll year, the next continue our balance [indiscernible] the so find try users. to we the increase best point between and new will And growth And profitability. and , follow

growth carefully company we the is do ] will users, for So all mean from from comes what carefully. those [ expenses a is and to I it -- our the spend and that growth begin new priority and market

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] Yes. I question. second will your take

our forecast will planning quality XX its September, achieve For and a better we end we and enterprise achieved is for the I current users outlook at trend to back have on state target XXX recovery -- supply by to the reason relatively moment the because based demand. [indiscernible] this to will [indiscernible] already address By balance to newly users. our , job million not of our on but to change with side acquisition million, go to [indiscernible] that side verified the we are of

Peng Zhao

Language] [Foreign

Wenbei Wang

of don't really more And focus exact continue perform next so -- what year that we every side to [Interpreted] this we terms perform we year. hope side demand and we the covered coming the in at moment. enterprise -- have in have end, the this the quarter [indiscernible] performed, based enterprise listen that on in good how the But believe to

Peng Zhao

[Foreign Language]

Wenbei Wang

And daily largest [Interpreted] already that in at been numbers, has see we to If terms active in you users. our continue of the we peers, October not among will is users percentage as highest growing which is can this and and the trend look the our may reaction a [indiscernible] quite the close of you #X, is believe monthly are active to trend maintain.

Peng Zhao

[Foreign Language]

Wenbei Wang

full of for terms In of renewing months. the the recover next companies time. budget large end the are latter this by companies still still spend encouraging to the we the so trend, a and the year, their we take as contract of in larger demand for expecting need But coming their to contract the year common companies very [Interpreted] some but see

Operator

next The from comes CICC. Yang of question Bai

Yang Bai

first company's large future progress more the for is the give products other what the and a we are have company's second plans such line the The globalization company new initiatives. color margin for margin expectations Language] rebounded on model the question gross gross seen business of language has is and in new the quarters, X as could And [Foreign change? the

Yu Zhang

to margin the would gross I question. Well, answer like

and faster and revenue growth and X bottom margin a margin so stable controlled cost gross result for This improvement. relatively the of gross quarters consecutive this our said you basically, So of basically, out business. is

quarter. reason, so the the revenue is a seasonality low fourth next QX to quarter, we quarter, in due expect So

margin lower by the revenue. would the So be gross affected

compact next we have But margin of we a gross costs, that recovery the to the the nongrowth revenue probably maintain growth. for return of gross because our in XXXX will growth, year the because margin a expect predictor will that temporarily, QX. So will faster we revenue for will

recover that year's So gross will based to base. secure this our further margin on

plan. So gross this is the margin

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] About new initiatives.

the service X created service already our to also and in to a expand are non countries and that is on model X hopefully other we established user revenue and X areas believe we currently and contributor. developed revenue years first progress proven model, to and next growth The the we want

Peng Zhao

[Foreign Language]

Wenbei Wang

to the of terms question, and a this In we continue lot is [indiscernible] year, beginning handled that. model into X have this since opened is substantial on we [Interpreted] that continue laboratory confirm have , of and of and a for a to investors made thing [indiscernible] area, focus large our ][indiscernible] on mentioning which some focus investment actually, the will One source [ good very of it. seen recently we worth really result

Peng Zhao

[Foreign Language]

Wenbei Wang

XX side business we top early domestically. the [Interpreted] believe the players models, same On of among

Peng Zhao

Language] [Foreign

Wenbei Wang

[Interpreted] [indiscernible].

Operator

conclude Due for conference there question-and-answer may conference. will the I to time Wenbei additional are any presentation, today's Thank back turn now today's remarks. that That concludes closing closing session to today's question-and-answer and time, you for constraints, disconnect. Wang At session. this no attending over will and you remarks. today's Since

Kanzhun Limited (BZ) 14 Nov 232023 Q3 Earnings call transcript