BZ - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited Second Quarter 2024 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. ma'am. ahead, go Please

Wenbei Wang

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

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

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

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

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

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

Peng Zhao

you Thank everyone. Second our joining Conference Call. Hello, [Interpreted] Quarter XXXX company's Earnings for

X.XX achieved with I quarter, up company In of financial calculated year-on-year. billion, RMB cash the our the XX% billings second numbers. will start

XX% share-based RMB excludes reached compensation RMB a net expenses XXX XX% to X.XX profit year-on-year. revenue GAAP which year-on-year. rose Our XXX of net adjusted million. up billion, We up million, income, recorded Meanwhile, RMB our

in million, XX XX, months the added XX XX% June year-on-year year, January users. XXXX, quarter, this million MAU second to Zhipin XX% by From around growth. enterprise ended reached total year-on-year company paid verified the In million. grew the newly attracted X.X customers The the average XX.X representing the verified on BOSS to app June

decent year-on-year cash in a still the second growth. billings have Our quarter

quarter. the relatively was the due market, high a more the half on of we side job and our seekers weaker hire. in it most recruitment were the basis than as later and mainly a ratio. to fewer demand CPL this There to found weaker expectation. in lower second what case, is little quarter-on-quarter easier to users a which bit This In from However, users enterprise refer enterprise

team a positions fill past months, that reducing to all only project users' spend on X the takes example, now in more recruitment. took months enterprise the desire to For money X

the that still trend noticed good. enterprise proofs. growth is X We There users of are

in the year. same enterprise First, of quarter, higher the users last second than added period newly number that the of was

by company. year-on-year. Second, the the a long have the second good of core average increased XX% monthly revenue growth. have that growth quarter. for users enterprise a Investors growth good user been for users following who us growth news active still enterprise know is We a user of driver our This in is

opportunities is performance quarter growth structural second the temporary believe strong. We situation. a remain Long-term

Our grounded X confidence is in factor.

economy the Chinese highest largest the and medium-sized First, market is and number a of small- with activities huge enterprises. the enterprise

unlikely of the Second, labor particularly near there younger is future. change a persistent which generation, in shortage is among to supply

the by is efficient to X first address presented our the service model suited challenges Third, best factors.

the On suited X what we team company's the current for do believe Today, about things. will the management should situation, talk I is moment. best

achieved can tough is than to crucial times, more gold. investors target the for challenging year times, company, be is and profitability employees matter during is ensure potential help Ensuring sustain further will co-investors, confidence thing full prospective valuable in or which confidence the our management. first year The everyone, profit confidence of through co refinement the for In to no talents.

The drivers. second on thing growth is to invest new resources more

new industry, may manufacturing some dollars. there For example, in the blue collar be

we industry workers, complex The platforms and means between factories, relationship the blue-collar talked agents. background review before. manufacturing briefly To have the

blue-collar it manufacturing challenging many to issues addition serve made the have industry. online to In historical for platforms

has The years the call intuition purifying Conch this we ago, Hailuo. project by initiative history job-seeking The X recruitment of through and is, we what two. the started environment

protect First the to job seeking overall is job seeker. process of the

Second guys situation platform to salary receiving after details beginning or the of good day, recruitment money low-quality has posting already happened. improve. tough positive current shift was better agents, is This are driving is job blue-collar integrity, authentic commit job and now long-standing issue seekers agents to decently. The a across organizations treating to results. make Good out ones and online bad help who with information

second higher this make [indiscernible] the generated the much quarter. our me platform-certified as [indiscernible]. The trustworthy are in XX persistence few that in is revenue first data the over agent project correct. past These quarter, the latest We named feel years than strategy our is that have which signs in in and RMB million good

The is overseas thing our business. third

to model As with we different all regional economy strong particular, are through pioneered This model and economies to evolution. current are survival provide And and space across sustainable Large out hybridization companies and a cyclical. in this development support presence localization, sync regions. shift has know, also likely regional globally. cycles countries Zhipin can various this very effectively of big utilize growth. markets BOSS our the value for In gained global is and

on seeing results. we are Europe While still it's and too in progress early report Asia, the promising to

again, to supported returns have since in Last for address of important not us the constantly particularly IPO. terms our but who our least, shareholders, it's strengthening confidence

continue increase will our we example, share buyback efforts. For to

million We our to all in valuable help have of the the X confidence This will management. bought over and reinforce USD months. shareholders past repurchased XX

you. of financials. part it over now of my call. turn will to I for Phil concludes That CFO, our our overview the Thank an

Yu Zhang

Hello, Jonathan. everyone. Thanks,

you Now through let the walk XXXX. of of the second results quarter financial our details of me

a by we grew growth. enterprise the and line by respectively, monthly sustainable cash year-on-year. healthy enterprise and users quarter, mainly and in by delivered Calculated XX% bottom quarter top billings users. revenues year-on-year, this the and our line of In XX% growth XX% access grew Average driven

medium-sized enterprises sectors, users lower-tier and We continued blue-collar cities. small categories to of penetrate in users into different from especially

contributions revenue a As continue increase. to result, from sectors those

XX, in the June higher was kept year, XX% ended customers XXXX, The to ratio Paid year-on-year increased but by months stable. XX million. last X.X paying sequentially than enterprise

average of ARPPU paid that per quarters. paying middle-sized year-on-year the high-quality importantly, products paying and see the targeted revenue of to increased user happy accounts, but that reason highest Part reaching accounts to X small sequentially and offering past are key outgrew X% services. our more client the was by and effort was around We X% in from level users increase usage and

to and expenses the Moving cost side.

adjusted in operating to by XX.X%, the and last points same reached up XXX to all-time billion hit percentage up compensation, by X.X increased million quarter, the to RMB of margin operating XX% an led expenses share-based compared RMB Excluding operating Adjusted and XX% profit and year-on-year X.X cost quarter adjusted year-on-year. part. year

this mainly year-on-year million XXX XXX RMB in XX.X%, Cost of XX% by by to margin investment XX% continued increase this was increased trend. Sales driven upward increased of quarter our to gross This million XXX conditions. a quarter. year-on-year RMB customer expenses representing as revenues XX% quarter. and its RMB expenses by well increased in in year-on-year million acquisition by as this sales in to enhanced R&D higher marketing

AI primarily XXX XX% R&D expenses our compensation, investments cost. million. depreciation infrastructure, expenses, in which by increase to RMB year-on-year driven a by generated adjusted share-based This was earlier higher increased Excluding

increased RMB year-on-year expenses million by this in to XXX quarter. XX% G&A Our

million, expenses due mainly adjusted expenses. G&A Our RMB to by increased to increased XXX XX% employee-related year-on-year

our net XXX million XXX in reached quarter an this in quarter, million, adjusted up income year-on-year. XX% net XX% was income Our increase year-on-year. this RMB by and RMB

We expenses the decline gradually expect coming that compensation quarter in in share-based our this quarters. peak level the reached and will

and selling compensation process. stock scheme are even some reviewing We now the accelerate which might schemes

to year-on-year Net this for by cash quarter. XXX provided by the operating XX% RMB activities grew million

As past of have short-term of long-term return of a totaled which our X short-term months, commitment we Notably, and and business. our XXXX, in repurchased total time as deposits consideration the June investments XX.X XX cash shareholder cash RMB billion. in XX, USD our confidence million equivalents demonstrated and

outlook. And our now business for

the XXXX, answer ahead revenues RMB expect prepared That our would increase billion, XX.X% we to to and remarks, X.X to billion and the For with XX.X%. like quarter of concludes questions. X.XX of Operator, go be please year-on-year between our queue. we RMB third total

Operator

[Operator Instructions].

first question Timothy Goldman from comes Our with Sachs. Zhao

Timothy Zhao

[Interpreted]. have here. questions I two

How adverse and share is first to mentioned, share and measure? And are And we market considering does detailed to is year your team growth full of the The the OpEx what currently, we the this market currently again? ensure the this share. second, environment market as share accelerate management the is your what profit SBC year? your regarding including the year, macro management in further rest user could for trend view

Peng Zhao

[Interpreted].

your Thank question. for you Okay.

our the one are rather And as we'd say of relatively the many to landscape advantages. own have good For is have first competition, relatively there and stable now current competitive we that. or prove data a data competitive third-party regarding

Timothy Zhao

[Interpreted].

for a MAU ratio the and our quarter. high mentioned and the example, second a MAU DAU level. very user high For The all example, just at remain historical we activeness, DAU in achieved still

the same for is TAM. user So case usage the

all proved as our trend. competitive platform those recruitment landscape on So every online stable of a perspective, a good data continued is leading and in really that

Peng Zhao

part testify full very and for terms of have and core critical is strong. confidence so whether is the in employees this for guarantees, stable And our This believe [Interpreted]. of target, very firm profit year is target. this our our we to management

we the And have So year X one XX our in first RMB on is million. million a full to XX the already achieved of target first RMB first this million. gross half user strategic months, year, perspective, is RMB XX the

us grow, only there should million it be RMB are relatively XX achieve. million easy RMB XX left to So to for to

target. So we overall control to marketing achieve on spending can our profit appropriately our

resources of its Second, rate [indiscernible]. overall believe with target be product through on to importance achieved internal our the higher the usage management and reducing we prioritize and resource and and lower priority of it's high current better level move circumstances, those postpone to the use very the and cost, to want we of can success this initiatives

I can more detailed In color. some terms data, of give think you Phil

Yu Zhang

RMB our results. and top regarding item, roughly and I'll cost is of would mention expenses non-GAAP operating which last secure of our target the bottom our profit. major full to operating year's The adjusted So as year-over-year try like line is our target X.X our just for -- adjusted Jonathan profit. XX% year to mentioned, we set on best up operating billion, -- non-GAAP profit quickly at

improve due our of Jonathan as quarters relatively mentioned, will our flat terms in be a to of higher our low third or scale. and stay gross slightly level. in So expenses, or marketing controlled quarter following economy will margin, at And will margin gross

items and the expenses expenses of will will G&A And because infrastructure situation. expenses, our things. priority of like in -- selling in probably R&D all investments the those Our we moderate some AI-related and shift be expenses, from other reasonable terms into a

second or the will this half, quarter from third part, expenses from So decrease.

year last So altogether, will also half and margin second be increase the versus better. full operating year margin will versus our operating

Peng Zhao

the for dollar we on And users. secrets lot asked the which [Interpreted] a year's current situation that concerned every we more lot enterprise investors and we -- after are have experiencing actually I a job and less of past, market share, be will about, there spend, the noticed

is the is who is platforms the and currently both the on So balance a CP challenge sides. of for ratio supply demand based

this need perspective, actually to from my too spend CP money keep view don't we to So the that's balanced ratio, to and share. aggressively,

to increase overall strong. not on the enterprise the user share addition, of side, the dollar desire enterprise paying In the are currently, market as

not even most is view is share. our tough, that's is do to I'm market war. to time and my I meaningful currently, it think enlarge is to share start a at our it the situation. that. this take a by effective And planning lowering do current thing don't price. best And shares enterprise way But more So price to to to

Operator

Morgan Our Stanley. with next Eddy question comes from Wang

Eddy Wang

situation understand been second macro that weak. since quarter We [Interpreted]. the relatively has

view the -- is want And and to in August that performance different the July? -- versus an hear the just is you skills? June recruitment when industries of So improvement in different your -- and have demand improving different enterprise how

in the And business offset continues macro if question we the relatively strategy to be macro impact? is, have to the second change the any weak, will

Peng Zhao

[Interpreted].

website which we we share talk cannot situation, from we our our macro, and the observed about app. this can but First, own

with it's overall from pay lowering. we let's to First still are blue-collar. second in secondly, observations share fair. And the several one quarter, to are is growth the still There can why And than looking blue-collar better willingness That's further white is, the you. recruiters collar.

the subsectors, is quarter. in the historical a very industries. is industry sector. peak there factoring after is observation detailed which overall spring all a recruitment quarter. Even terms in good other And high recruitment relatively that just of blue-collar in logistics first quarter, among faster one see The back year-on-year fall highlight, the festival But relatively that growth second the is reached revenue in the outperform the continue in season. demand second blue-collar we fallback second And the still faster to

are there X other And worth sharing. also observations

tier the of a better first that have third size in continued fourth the to grow second, there is enterprise quarter's recruiter tier compared larger the cities, discussed and better. the in faster the And First, cities. last trend, is enterprise the already is user the we which growth second results and one

enterprise For over employees the the faster example, XX,XXX with at with or companies rate. the big growth fastest

about blue-collar. a talk recent situation to in And we'll the continue August, about

the in all number the the manufacturing among we continue blue-collar, second the continued is August to So enterprise go than week see fairly industries situation quarter. improvement. enterprise And to up supply [indiscernible] And best still overall and better others. by demand active user are observed week. And ratio

strategy question we second doing, are we -- because headwinds. business which concentrate The the to to. can give limited to against outlook, the what the we and monetization first resources faster currently department, of our longer we use resources to -- And things kind macro is about it's

project and input to For manufacturing are the from example, this on area. generate investment contract currently to industry, our we on revenues, enhancing and Hailuo we Conch blue-collar

that to I And the manufacturing industry quarter we real corporation to make year. from question. believe so cannot my say online blue-collar money. . in answer have of this third change fourth to be with and big this the and the into go recruitment for very manufacturing is our platform very your will certain [indiscernible] But the that's the project real first actual chance some blue-collar industry revenue

Operator

with comes Our Zhu Robin next from question Bernstein.

Robin Zhu

[Interpreted].

So a to I developments on seas could the One, in recent thoughts have in dividend. given buybacks. weakness regards would some on and could the management the the management acquisition. whether If will instituting X on questions. regular in us with recent times, AI. elaborate more the go-forward the investments company And shares second, management in W.D give over company company's color share And consider

Peng Zhao

Thank you question. your for [Interpreted].

have become your peers was question because and XXXX technology. I first [indiscernible] conference #X mentioned CEO The that own areas. a and very their until on the they is Jason respectful and of now, in W.D be to the the call ours before in in able

the Jason, the develop So recognition not this area and likely out is area. his shareholder difficult and further the the of to team purchase of stake our ourselves the respect is of is in it's me majority just W.D technology ourselves. into to more CEO; to of with work which expansion And add some capabilities for

working team, And has and knowledge, the us Jason things. recognize currently, and fully his manufacturing he's in knowledge industry. his know-how the X and fully recognized we model with for And their industry actually

under the forward maybe at W.D moment [indiscernible] publicly the First forward in the new service, together the is third and leading Jason more thing which the under Conch currently to project team we that, all, that the technology. they one, looking plan in experience advantages the second independently quarter. publish commercial and improvement of were their the to simple not to of our R&D development And commercial part technology project together traffic lead discuss the this of WD fully operational of is . And and to rather team and to of are our details next the help -- is but to which push know-how overall or product combine industry combine company monetization, environment the project. to the the

how take then the we this years. our And the users recruiters to decent first a Kong months, think on and [indiscernible] have might a whether for our will the serve maybe the revenue which accelerate -- of initially take some to business, X development react, in to more of Hong X from This we early, service achieved made terms platform. business. bit than Hong the our decide And it's Kong have might X we X behave and revenue, business, can published little Kong Hong and next see initiatives, overseas I progress in

countries, is -- I satisfied to that and the confident. and local with have on Asia some we quite long And Europe And area, current we have recruited, we I'm the in team take time and the date, [indiscernible]. a say developed we are can

some third regarding thoughts I the shared our and as And AI. one have some maybe here. mood of the generative before a

are two there So points.

more research know doing. to to First, what we affordable not the that guys area in is not that. a understand are and actually to guys, perspective, tail -- we're we our do scientific planning can are is for developed project, our to But invest they to in technology which a what resources. most we tech excluding are light do Actually, this

we what are So they and technology. know most just with the advanced up doing kept

our application On technology, strategy something priority then is are so that. happening emerge if not level, still of the are AI to the before we give generative

So under have that some we good application the level. industry in strategy,

it So using are internally now. we

been shareholder have basic company, our I return insisted the always good And returns, about shareholders, long providing which shareholder on to we the attach importance and we is asset for that. a believe to

So for and a -- a strong maintain which true core our -- we it confidence. at because the problem employees crucial very shareholders point to the is are

return to So a important shareholder good essential very do project. and it's

the last size we is act of and that. our This do So million we a X of a have our already buyback to for and company $XX And share -- have done continue we size, USD we number, XXX real months, program. have in bought million. for will we

time your to that I call a dividend are And that's on [indiscernible], start the we plan, that's about still question I think for say the research. question. can operator. last And potential answer payer constraints, And for given my the

Operator

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

Wenbei Wang

once you again Thank us joining for today.

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

Operator

Thank Thank you. you.

Good disconnect. now day. may You

marked transcript spoken [Portions are were on interpreter the that [Interpreted] live present this of by call.] an

Kanzhun Limited (BZ) 28 Aug 242024 Q2 Earnings call transcript