Kanzhun Limited (BZ) 30 Nov 222022 Q3 Earnings call transcript

Ladies and gentlemen, thank you for standing by. And welcome to the Kanzhun Limited Third 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

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

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

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

would non-GAAP non-GAAP only. and today's discuss to GAAP But During please earlier release today. -- issued measures purposes then non-GAAP that also management financial measures see the financial for of comparison earnings call certain results, reconciliation financial

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

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

billion performance quarter-on-quarter share our accorded In with for to revenue quarter, like you X%. growth GAAP with third I'd RMBX.XX the we First, this of of quarter.

RMBXXX We share-based [indiscernible] the compensation reaching to achieved adjusted increasing X% rapidly. our has our further brand expenses, our quarter-on-quarter and gross user-base quarter our in for is -- of which rapid income growth XX.X%. XX% calculated In improvement user growth sequential third improving base from maintain million. a in this been of obtain a efficiency. the which continuous quarter, and billings increase margin cash Our marketing recognition profit enhanced over net RMBX.XX billion while Benefiting

job the more verified the is verified user and achieved of operations. then X XX, at quarter. in our least posted enterprise we September one seekers our users million earnings our users we than expectation of pay call. position. million. Verified job job XX we a one XX at to with or we user And matter discussed and Compared accumulated this which posted As we then newly last Referring newly as at August growth users least more attention in continued daily within sustainable to a

reached RMBXX.X capability Our improving average user-service technology efforts of MAU have year and in started to bear constantly company's past And high. fruit. this record quarter the the million a on hit the

Let's take a at numbers. look some

enterprise job and users growth and First, communication of hit the quarter in mutual more ratio record our successful number between by seekers high grew average have stable. [ph] year-on-year. XX% remains The this year-on-year rate XX.X% DAU MAU a a representing monthly than

impression achievement, Another key or user both COVID June. in for reboot at acquire still new experienced growth. impact. At to a growth. the a There to by from is compared quarter steady we seeker started is factors. look the can start the is can of ruble. individual of concept my one that power cities that data second enterprise quarter are X an each hand to another are X we a user's many the we Overall and And that users number There factor that third end is either users job in

gratifying. blue-collar XX% the recorded And MAU cash First XX%. and of most for approximately urban aspects. quarter quarter debt sequential growth. XX% X the quarter, continued has -- performance third year-on-year more net industry the essential billing been [ph] of safety of In this The the And the the growth third sorry, improve of in increased The operation one average always increase year-over-year. urban is over -- DAU to gold-collar the calculated average net third our our our The service cornerstone was industry a quarter revenue also the service development our capabilities to by the cash achieved a compared XX.X% the of driving workers quarter. of for we company. in our billings safety recorded gold-collar the users second

data certification And and the of first first we In which online securities. user second the were technology, management of is September, by -- Communication the technique capability is security. in The Academy technical Information awarded security the China industry. the recruitment

conditions. As of Kong in early to accumulating October, have XXX,XXX more and in is And finished team about October operational submitted inspections applications security. XX, the -- X third capital a to We Hong the market field visits the sustainability than one due of our ensure companies. verification aiming

the quarter since demand. of COVID-XX negatively September, beginning and recruitment now, the business enterprise resurgence our down last up the slowed until of For impacted has

the July However, quickly controlled, we August. will decision enterprises and recruiting once to have evidenced by effectively observed is our activity recover that experience in

seen opportunities changes. industry as We undergoes some structural also have

new areas recruitment semiconductors in high strength the For as industries, And example, hunting in for short-term core supported suitable traditional in growing September long-term design industries. and technology, efficient quite network-related job confident people fact positions model. business have the is and we internet job increased by have of by automobile than Despite and active the regions The are become been that The [indiscernible] different such fast. our for extremely driving products, growth, manufacturing is industries. XX% and and year-over-year. in positions, digital energy, model in turbulence, more operations the in our and including lies our transformation high-end still efficient

first-tier in still our is with potential cities among and growth cities While continued in and workers, blue-collar white-collar service grow huge to lower-tier there users.

and Cup. covered We XXXX especially events, further can effectively through brand blue-collar those cities. World among as out expand found Qatar and this region [indiscernible] of Asia-Pacific have partner our We our official and lower-tier widely high-profile the learning

certain is always a sustainable For development. user period, historical our driver for business and growth primary long-term

accurate scale a and can a effect robust has population. Our matching larger support more platform within

We at focusing growth. still the achieving are of on rapid user stage

We expect the additional least to in XXX million users X next an at obtain years.

and confident the are that effective We driver the of it development. believe economy. will quite for be we this always business most in cycles are There our

core [indiscernible] However, good there efforts doing. to original right what with an have sincerity and no space in doing times the customers always values true and thing enterprise is we are service been staying almost are in cycles our to all aspiration, at their agility

and like so I doing We Phil, CFO, you. to have third we will going With done that, turn for forward. our the keep this of in will Thank quarter financials. the our review

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

note to a our Before this growth I the recover in RMB on by business amounts that and in unless comparisons begin, are quarter. backed are quarter, all a began year-on-year please strong all stated. In otherwise third basis user

to Our calculated cash billings recorded sequential a fast RMBX.XX rebound billion. XX% with growth over

impact various and including medium-sized accounts conditions. economy Revenues small third also X% XX more billion. total recovering being by due growth can new the when and macro paid we customers year-over-year, XX. a to in help second user performance enterprise a in RMBX.XX ended COVID both September mild revenues previous trailing and us second sequential months customer the X% are faster structure. user number to accounts, proved paid down increase macro which quarter of should higher from the by The SME X% recorded the with in quarter, total the in absorb down a our total June that contributed from companies, mixed sized mainly registration XX, facing the to impacted this of RMBX.XX the by in healthy compared in downturns to economic quarters from the base benefit quarter relative recovery our slightly other in are number quarterly-wise, It a segment increased particularly enterprise compared million enterprise environment. of specialized accounts growth it Our to and much in that and But resilient dragged due active also of accounts and balanced the RMBX.XX quarter-over-quarter accounts large small-sized to the XX%, million, resurgence more of customers small-sized decreased recovery customers suspension more in driven

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

due bandwidth costs operating and as and total recognition in decrease a XX% G&A revenues costs RMBXXX increased increased increased by server compensation, RMBXXX improved X% we driven personnel. year-over-year compensation year-over-year million, to mainly accordance traffic as growing increased million by XX% decreased marketing increased in strengthen our staff. security-related in increased to RMBXXX expenses expenses expenses brand user increased share-based increased our primarily RMBXXX employee-related to to with year-over-year marketing to and Cost result quarter. expenses to technology-related to and year-over-year RMBXXX million, and efficiencies. million, to X% by Excluding Sales million and expenses. due headcount marketing to by share-based continue primarily of by expenses R&D by of the expenses XX% increased due

under remained we conditions. human-related overall cost to current costs Our stable and market have compared enhanced the quarter control last

our RMBXXX profitability. demonstrating further back generated operating about record an with Net quarter XX% and operating our adjusted net from net to the -- was quarter, rebounded growth. adjusted last year, historical Excluding compensation expenses, million XX% for the for of sustainable the share-based third million which was income the and a RMBXXX margin representing high-quality year-on-year XX in quarter activities cash leverage

cash, the future to short-term As well our us of XX, which billion September increased investments cash position growth. would and for XXXX, equivalents RMBXX.X

revenues year-on-year resurgence a cases still across of Looking to we total high forward, recruiting in which third in -- our are affecting decrease China X%. expect X.X% demand users be to and near-term the billion RMBX.XX enterprise as of between are the level with slight a the of billion quarter, fourth at RMBX.XX COVID

December is still Given whole level are the that the still month some ahead. end, quarter of before uncertainties of there

growth However, our as business. key mentioned results, have from witnessed the Jonathan quarter just third user is as you our to and

registration facts our resumption further in months the grow. and position needs is online to China still and market-leading and in competitive Our recruitment proved room are are of accumulated users with to since recent market good strengthened the be user

resource continue our that through growth markets. confident in our China's of can intact, the prepared still With human we being are the model technology remarks. concludes and secular we effectiveness current That headwinds our ride

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

the Wang from Thank you. question first Eddy Instructions] of Stanley. comes Our [Operator from Morgan line

X I questions. have

next the will that that in believe -- acquisition and do activities the expect ambitious new how consider in in you user think terms a this -- -- or marketing and second money is quickly to expect new the our we First is their level? platform the considering of for happen acquisition happen recruitment think to you Considering post if gradually that the X to competition months the we online year, enterprise customer users costs quite we your spring, should of you have other reopening expectation what what's The so the certain plan Or that the maybe will acquire also these of sales, recruiting X time so spend do next kind we you expect some jobs? reopening before also it in fast? XXXX? all early if is, X that do And because years, to the margin we best customers. take how process the of up lead picking question the gradually

your for question. you Thank

after Regarding your the about will opening, the speed opening, recurrent enterprise what first equipment. the question for be

on And the expenses much past resources readjust take SMEs, headcount. as years, year, may plans marketing very relatively for and about marketing your revenue will they huge quick some for marketing very not our the efficiency majority decrease. my growth, also of and coverage. second some enterprises and because have the observations question mega our to market next regarding for very and their for exceptions, for limited have can enterprises But they the of a human for faster for with expectations the for a such time based So recovery the digital

at XXX we goes we marketing World everything the branding, mentioned, years. in the million already -- million the X but registered moment you this for not just are year, in for next year I we If next the users that that. major can newly consensus planning have expecting around As we brand events the new terms know that's to And or year, for have sponsored of over users -- this we pay and amount we XX are have will Cup. which And not normal, brand. any extra sponsor

year. normal will be also it So a

that stable is affect -- G&A. this [indiscernible] the will of net my for our margin revenue year next marketing and expense remain So be in not as percentage a will will

bit -- the add a about there. to little reopening And the is

up of our revenue, collections would then accounting revenue, book revenue of to First and we then catch our reopening. accounting cash the all, gradually cash like some to would need gear we our we like the time to with revenue because up those see

So there a delay effect. is

So please remember that.

beginning pay catch attention then to revenue accounting So more of cash up. to recovery, revenue at and we gradually the our should the continue the

Our next question line Goldman from Sachs. from the Timothy Zhao of comes

I have X questions.

about And some contract that Cup. recruitment behind also activities is the Cup the And activities we World And there is are should branding what on and Could or contracts? that with enterprises them potential? considering activities many around World status First big differentiation? especially the share annual you what you across think we considering other renew kind and big during some maybe is what these and similar it's compete when about share branding of our the the us. maybe now? of percentage how should may contract Could how secondly, some have we December ROI branding month with the upselling enterprises the sign color see platform

question. your Thank you for

Regarding your at first year. the annual question the about of our of signing contract end

is sponsorship fourth signalled stopped; it signing quite dollar to And the we is our of around of key amount, circumstances. have has of all your young still observed very what we happy about it the have X for It so or fact of a in company, rate our still age question that been -- we are It key we of second accounts above good. our average results past but retention because mid. Cup, in say accounts terms quarter. this continuing. basically months in XXX%. who World So under are dollar employees our we for net the of is be have already basically, historical And the witness not this are customers upsell terms the And current our

football seen X the So earth had back, probably believe on the the And from reached news data a perspective likes. I and with everybody a going of than of sport that from you our kind population billion. is And has more top all good happy we consider, those supporting and to human they support FIFA, civilization, if if doing first something for a FIFA. And and on marketing -- the relative [indiscernible] of thing channels. on are campaign is business of it other

watched than event, our can than Russia to X more So more the we XXX be be each like people have be games X billion -- X more the base Chinese have don't that to watch XXX have than should And audience exact the World million. Would during whole in Cup XXXX, it Cup, watched believe if advertisement. for the who there will XXX assume, million and the audience will then event. -- And Cup we I the World should Qatar year, audience larger, be this

advertising -- between is that for is and X cost know quite event so watch branding [indiscernible]. frequent the the our to the our person You

is you. can. give the it's my several the audience good peers who kind can is this the So a the so game to They that's considering have platforms that audience, the Thank [indiscernible]; vast watch noticed game ages but who ages customers our more of they you of our -- choice. business believe quite the of good people and did watch And answer your same business. best the what thing a our cost base, And also I we question. the can choose

I comments. have few

or acquisition more than is of the rather and also consider that like return long-lasting. expense more because traffic So better, is than cost advertisement brand its of effective item because an we investment it's cost

that's probably answer short your the very to well. So as question

on move can question. the we Operator, you. Thank to next

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

I have X questions.

for a recruitment that normally, is strong First it's look seasonality and next year at first if we market. quarter

So first margin is, growth your it macro uncertainties for peak budget should management marketing quarter? could a user the Cup we elaborate have the the in sponsorship in this may think the plans World user in acquisition, in and environment. addition And in the also, have we recruitment we target customers Do season? already, promotions second that mentioned to large compared SMEs, about to in My enterprise quarter? how the level the relatively more question seems given the resilient first

the also segment? this So your what key customer backdrop? the just shift wondering maybe company in given focus the or mid-to-high-end to towards recruitment And our thoughts what's latest and progress strategy side consider

quarter first plans first About Thank year. the your you questions. for question next on your for marketing

Cup the work, in will start. January campaign XX World between. and only there to XX Festival recruitment people go X on from are traditional our will of next back end will So And the end by where start year January, December and Spring weeks

So between the Spring and campaign there are the only in Festival. X weeks World Cup

So are strongly are World Spring the I this the assume our the Cup, that of fairly continue events intensity campaign we can may marketing to believe of effect campaign -- connected. Festival. we the X And

So Festival require -- the will not money. after for plan Spring our marketing extra

So campaign. of we benefit the Cup the And on part other World hand, our from strategy. have that's

concerned, for are that reopening is on highly we part everybody focused that. also Another are the

the [ph] focus are we on connected input, and marketing with process. efficiency our marketing to highly our So the plan, reopening

have that year. focus our are progress. we first on which marketing on focused currently, do not the will in So on of huge top market reopening our impact a next the active and to And and [indiscernible] strategy we and event quarter

accounts, key apart customers. SMEs. that question long service customers. of I resources, period also what to key [indiscernible] do doing. towards like to that account plan assure in any have customers our relationship to total would we China Regarding from our about Quite account time, can [indiscernible] our and that's increase our Currently, key we the a our But the will for not are your we whenever strengthen we on -- second resources the

We are better especially customers, SME. And to question. we including -- serve my that's of your all answer our

than companies. To of the in enterprises medium-sized more the China, XX% statistics, are small market

own company composition is the our basically, pattern. in So same also

our So are we they the enterprises. have more small than or customers enterprise XX% of medium-sized companies,

units. components peers, just area. with the more mentioned, are are specialized this in we important And our they to the compared very So as

will better well So we provide with service. try them serve to definitely and them

also accounts well. will as mentioned pay meanwhile, KA a balanced So much we have as -- definitely more they just structure to attention we but because

Okay, thanks.

on our question. to move we Now next

Thank you.

line question from International. next Our comes from the Wu Natalie of Haitong

two. have I

regarding First this is quarter. see bit a number decreased X.X million user that We the paid enterprise number. this again has to

active Or wondering the management we by that and is is change the how how of how related can company? much with the the basis? question the with [indiscernible] with blue-collar. the year-on-year ratio is Just much see change? conversion if initiative And how the cleaning action How number us natural churn. And on related And with paying related this quarter-on-quarter up did much related quarter? with that and share on should second pandemic is

revenue should under reopen, rate we help that the the see much can And the some business comes scheme that? scheme? reopen growth future white-collar understand the the for in see business how from blue-collar the management paid wondering, if us growth outgrow business? could we also of currently like Just related business MAU should how enterprise how the number, blue-collar the And and and

you. Thank Okay.

So paid enterprise first. I'll answer the question customer

enterprise months trailing was XX So million, customers. that the X.XX paid number

So reduced customer COVID sequential recovery quick the of enterprise because third quarter, that And quarter-over-quarter in in of we customers enterprise see from starting paid reduced paid the quarter. that our growth. second mainly number quarter, impact

quarter, have quarter-on-quarter number. from a months, paid the from is the the paid a the but it's total second like customer see it's the at compared the our in the some of pretty September XX impact starting sign -- if -- and recovery. if quarter in enterprise booming. all enterprise But versus so the the second quarter, And measure, number trailing very paid June-July to second did So in you active because to the third [indiscernible] at some customers' COVID like that terms measure, quarter-over-quarter, control with But we gradual impact enterprise look see -- customers, we see starting enterprise of look the business you growth. the good because customer active COVID of this customers, in we we of And see number. quarter

things the this similar business of the fourth in so also early year. And quarter with

in In October quite even very terms customers the ratio active of the stable is and ARPU enterprise paying the stable. quite paying ratio stable. And also paying and is, I think, ratio, third is overall, quarter, it’s the quarter second in November, among in

July So we the measure total active stringent, the impact highly COVID is which when is recovery. the mainly that to measure. And with in related customers COVID the see control August, is enterprise and not

customers. gone, months, So we believe back good definitely will in the active the see once a is the COVID coming for we enterprise come

So And question. with you the regarding can this first data. offer some is the blue-collar, I

terms users. of moment contribution, at blue-collar, our in the of terms total for our In of blue-collar accounts [indiscernible] like of roughly in XX% the roughly accounts terms third revenue XX% for MAU, of in this quarter. users And of it the

would on data. of sponsors, submit some top like And to I

we cash growth, And billing grew while compared service X%. industry, growth a year-on-year have by XX% of year our logistic terms cash only for billing. industry, total to for a XX% in other seen year-on-year last So

and the blue-collar sector new X we can that I X/X and confidence very a manufacturing see double cetera. years a will blue-collar logistics, workers, XXX fast the good that's all my what [indiscernible]. base. And believe total including traditional urban et acquire current including And be experienced user upcoming which increase. along for call users service we we quite And in So will have million is you has additional

Festival wise job. that to to to it's jobs. seasonality more is for after the middle for spring year of come resumed of to normally season -- And the growth find blue-collar peak also, end the the season is Normally, the in and that we've season find from not is user out the mention the blue-collar Spring the the thing one peak June --

can So of [indiscernible] we grow users. our our years, in upcoming currently because new

season Festival, So users we grow the expect in can that our further the peak customers. Spring we and of segment blue-collar

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

joining once us today. you Thank again for

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

you today's conference call. concludes Thank for participating. This

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