Kanzhun Limited (BZ) 21 May 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited First Quarter 2024 Financial Results Conference Call. [Operator Instructions] Today's conference is being recorded.At this time, I would like to turn the call over to Ms. Wenbei Wang, Head of Investor Relations.

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

would Founder, actual performance CEO, to any company Director statements known not uncertainties comparison certain discuss today's the Mr. me or start, CFO, today call, based Peng cause discussion reliance involve and the may management's information to our be are we measures The not financial we statements, of Zhang.Before obligation non-GAAP forward-looking which other different. our and under company Joining may this today's Jonathan forward-looking management cautions contain you which that Chairman Zhao; except risks, current Phil control, company's will undertake only. factors expectations results, update Yu and and purpose for do to observations on forward-looking unknown like remind Mr. place as also are achievements that and on to and law.During materially required not you undue by and

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

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

and our the X.XX cash supported RMB and XX% quarter, [Interpreted]Hello, billings who us behalf I everyone. would in investors first year-on-year to earnings of Welcome like team achieved our up and performance. believed XXXX me calculated to Board On our have Directors, XX% of quarter-on-quarter. billion, first company's always introduce financial our the company the us.Let call. management conference first quarter and company's In of employees, thank users

The of number qualified which year-on-year.In the BOSS time, quarter-on-quarter. more newly a share-based XXX% year-on-year to In last billion, from surpassing year-on-year. representing XX enterprise of compensation growth time, quarter cumulative XX.XX reached million, was income, and with year-on-year DAU the first up XXX our verified enterprise means profit reaching first At RMB Meanwhile, XX RMB period average number platform the expenses, BOSS for exceeded net on our Zhipin reached million We the with revenue the RMB faster the the app added XXX million this of XX% XX% end app stable.As cumulative the up the which remained XX to the year, by Zhipin users April, served up XX% GAAP a year. of same million. XXX users. million, users quarter, than Our MAU ratio exceeded of is March, April XX million verified excludes on January growth. achieved a adjusted of million, net number million, X.X compared rate attracted same verified MAU company the this of of the MAU verified X%

there As past of activities some enterprise X.X more XX global than months.In very million customers months, for enterprises are more XX the March the in during trailing market. total recruitment XX, XXXX, our service million approximately This of population paid service. number even BOSS across Zhipin the than X.X terms countries. seems XXX on paid It's companies large million of exceeding contacted enterprise

enterprises, significant online number more gradually less of so for However, payment equipment calculate the as annual X,XXX companies XX in it it enormous obvious the Chinese valuable that and RMB willing like the recruitment adds situation of which vast and rise. pool Zhipin Therefore, additional enterprises pre-recruitment season. less over key growth we characteristics we there China's is future.Furthermore, ARPU.In number earnings the of is we insight becomes of to average would per for that pay some both last represents our both to and XX% is entire shared potential ARPU currently to Today, the this will This year's of online the provide enterprise only paying on see service trends. in China's is potential in to recent to means enterprises their than and call, updates million to means growth BOSS paying which for than in continue improve, the services. continue will China, industry

blue-collar of First both good time, some number shown revenue average grow industries climbing to festival year-on-year At year, daily by increased recovery.And size. surpassed logistics the has the relates of trend to first that XX% up Among sector mid-May, enterprise approximately is city in in blue-collar the the XX%.It's added last steady post-spring new industries same seen that job number tiers. by has the sector, of with positions logistics the one recruitment improvement same sentiment the white-collar users the second the still manufacturing year, contribution Driven maintaining third of growth period increased The in the newly the also recovery that demand last users revenue white-collar year. be smaller amount the the by business rapidly. with upward with compared blue-collar a a improvement and have better companies and trend.The blue-collar compared showing the enterprises, and compared and users quarter, in trend. large of users segment's white-collar segment. to this manufacturing the further to the over continued worth rate this mentioning users From

increase the showed growth revenue have Second-tier, contribution. lower-tier both cities user and in continued

exceeded million time, position XXX,XXX, finance several job have have Internet years, has recently Kanzhun In than have seekers. talent of the sub-sectors manufacturing noticed acquired in W.D and chain may delivery China job the demand At postings more that for we we which year numbers covering leading enterprises. XX the AI from Manufacturing, the shown growth recovered first have first-tier same to number cities platform [indiscernible]. the been technology, this compared running However, Technology, period better have momentum degree recently.You fast-growing trade relatively same Kanzhun of some project quarter, procurement to supply the recruitment year. and active project, job also logistics, last

exploration years the exploration combined user blue-collar continue blue-collar able Phil, Thank [indiscernible], industry of be we will to -- service in revenue.That of it BOSS than to and So more in also review over our experience I believe should app's the mature concludes and with you. and turn more explore service, manufacturing in call. Zhipin scale CFO, we now our that XX industry more service our my of to part our the financials. with for

everyone. Hello, Jonathan. Thanks,

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

year to year-over-year RMB reached XX% in growth.Calculated engagement quarter, billings expansion quarter, X.X a sustained momentum. and representing billion, happy up solid are hit cash characterized a a to the in our and new high XX% reached year-over-year growth a base revenue XX% and sequentially, continuous user report We solid RMB X.X by billion In continued and this growth. the revenues start our showing

companies. X.X Our of rate grew the demonstrated and noticed by to that indicates This due recruitment large from ended paid side. total mentioned, change the paid users.As demand trend while same of to months revenue in X.X quarter, of faster the ARPU the by customers also just accounts our is March year-over-year by to cost also operating XX% increased RMB period trend in has trailing Jonathan to enterprises The billion structure year-over-year compared expenses contribution cash downward enterprise revenue enterprise by customers compared the to we the recovery ratio growth paying XX% and XX. the up a from million last GAAP-related blended in quarter. to X.X mix been which among points XX of cost year, increased was users mitigated.Moving in key increased percentage Total this

RMB year. X.X XX% in adjusted increased this doubled Excluding operating higher this quarter and XX% and went and year-over-year period was in share-based to server thanks employee-related payment the than RMB the margin million quarter. by to that quarter compensation XX% adjusted growth. costs This bandwidth billion to same increases to compared X of costs, year, percentage Cost processing and last expenses, our was increased expenses.Gross margin by driven up operating revenues increase of revenue costs XX%, primarily expenses by in same XXX by points last in our

this enlarged by expenses, XXX X% partially in including still quarter. expenses advertising the gap revenue bonus to achieved decrease MAU marketing to this growth. with marketing increase This the million to the This high was due Notably, expenses and by despite offset has employee-related decreased RMB the quarter. our by million a the increased year-over-year investment, expenses, marketing record cash One share-based compensation. sales X is R&D associated and in XX% increased peers.Our sales and Our RMB industry and XXX mainly with disciplined year-over-year decreased reasons. year-end increased compensation we

related higher RMB million expenses. by result the increased which is including Generative expenses to share-based servers.Our reason The increased G&A to in XXX to this other even due costs development, to led year-over-year bigger expenses, compensation our investment increased mainly employee-related of quarter, AI depreciation in XX%

was quarter Our same last for RMB year. quarter income compared XX XXX in million the to million RMB net this

by year-over-year. contributed income by net activities XX XXX was cash million adjusted this adjusted billings. this to million, increased percentage Our net quarter, provided reached year-over-year.Net for grew RMB And XX% mainly for quarter XXX% XX%, operating points up by XXX cash RMB by year-over-year margin up

wealth short-term March our XX.X XXXX, long-term in XX, business outlook. our RMB and equivalents, deposits investments and RMB our cash investments and And management billion. products were X.X now time cash of time deposits and As short-term billion totaled for

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

from Bernstein. [Operator Instructions] first question Our Robin Zhu of line from the comes

more share ago SMEs, state compared the And in quarter? year? also on by will company's your to on thoughts an is, the service can the a you rates cetera, some on in months? BOSS And my and whether of Zhipin's KAs impact months? QX, white-color, share et in the recruitment rest in the the high trends the rates year [Interpreted]So demand of blue-collar, coming China growth last own versus expectations management rest on question growth could the by observations comps forward of Looking recent thoughts industry business to industry have in

that compared for this at saw of [Interpreted]Zhu, -- look demand, job year. we If we recruitment your last question. overall job postings their and to year thank growth better new the it's their the you

and -- quarter, the bosses, day, high as the blue-collar talked manufacturing to new and still on overall bosses compared have we about definitely accumulated continue this talked better the daily active the two we historical And is their different is fast base the as different that other and see sectors company the -- enterprises. high for just is an Urban On compared not and -- we companies. active about size, grew of existing service In as estimate, different of year. the active daily we logistics. -- on compared sized said, saw we active of numbers. on experience first view every just better based last to to the terms also historical we recovery have So our highlight saw year other our basis, sectors.In to a

faster enterprises another we persons, companies it with compared a expectations. a penetrated lower-tier job saw and XXX more is and number and also which into demonstrated speed, performance better started currently, will saw we we And has medium compared March our of XX% talked have talked -- So about is month-over-month.We observation the where our one companies. with of cities. that, the share then the to can the they recover, they about it will that and and cities, just started that line which added to larger-sized successfully take there have driver, the companies and the with highlight existing lower-tier activities further larger newly But And longer. pattern it with last added while other time. those postings to I larger been the about smaller grew sector, companies companies, daily in about by April, in many also manufacturing companies once cities bosses, more its our than smaller recovery for yes, by logistics bosses, show drivers different first-tier recovery newly

Normal we in overall, year's more stable recruitment this with consistent as more regions, size, and have of more situation. been it So normal and what and recently. industries market both we more balanced saw is observing terms

than bit will our was of March. CCB low-single-digit better the May, factored year-on-year better of full see in much now Its growth momentum end guidance tell.We be the performing around is quarter, still clearly be announced of moment, this on strong guidance a before Magnitude quarter-over-quarter year's XX XX percentage Around growth percentage XX%, was [Interpreted]QX out results the a points same points of days XXXX. is range period by the in last will to of quarter's the turned than estimate of end call. the second of about middle The top March CCB continue be that QX high earnings likely growth final to of QX faster to to growth. And in unchanged. early CCB will base, quarter-over-quarter. our outlook QX's rate of that XX% QX. sequential within

So second year outlook. the quarter our to this answers full is and

next And on to Thank question. question, move Okay. you the for let's your please.

from comes Morgan question Stanley. Eddy next of line Our from Wang the

questions. have X [Interpreted]I

first is The paying about ratio. the one

if as contribution of the the my share of the enterprise us rapid breakdown the growth couple past growth sized very please We different users. top paying in the season. question upcoming noticed well And share trend ratio user can second have about billings?And on you the you the has graduation the on of with the that as of us ARPU, Could company that, paying quarters? enterprise is

supply-demand So see year, the I season. during graduates at -- this the want look view the we the of on dynamic hear upcoming remember will the has to hit And summer market. search that your again? you recruitment you do actually just in happen last the the if on

for you your [Interpreted]Thank question.

million end paid revenue. talk our there using of our strategy less than First, vast XXX which more And service, growth Until are is customers XX% business I also verified, than about for that of type different will enterprise enterprises. have of XX, of March of basic the range model total our we customers. China's demonstrated our can adapt service number a initially of model, to variety our

for target growth on to strategy.Based to that to me, -- improve our premises, number will growth enterprises the key -- on us, will more will this our market and we for pay of dollar basic That's continue attract quite since But that for is focus we for enterprises. their paid recruitment. strategy improve is service low. our future So our our since share be more we my

ARPU a companies then intend be high.And accounts, a who there companies with paid is add increase to accounts. is recruiter cautious before, on then not using or there and not buying So service more we SMEs. us. using there more means based us, for our he same of larger on recruitment that, to have priority with buy online more And accounts that more will is service, those recruiter case for based will very service when are in and dealing which key recruitment the the smaller for situations wide the When be companies

saw accounts, and average service their increased in to the on maintain cash a that companies.And recovery So -- that trend think that larger company, will number is -- role, our demonstrate the of paying are of start the the we that if for our grow, companies, revenue job demand which both in is ratio, type growth to also an ARPU and related better a to basis more result which and to using within first compared and particular means for seekers, users large of in factors I demand. perspective, the quarter, and to supply we small-sized the that then charge the one of gradually every continue to every a and balanced supply recruiters which industry supply middle

that agents, job. real estate real of to of are are for companies estate seekers people where little want a very but lot lot do job recruiting For agents a example, recruiting,

estate this principle higher relatively real will to this XXX%.So that agents, down the and quite we -- to increased is of for with paying the this go for the paying have have doing while ratio related with more our the recruiters been so ratio way. we be in successful for then is been job particular Since actually the white with ARPU. type ratio and and So paying monetization a continue model, will industry

our customers. is starting second penetration to coming years X have if looking naturally X speaking increase that or question, out were window, your will season, of year, paid graduation the we relatively because of difficult, follow.About everything happens, the period summer else situation to the seen we post-COVID, enterprise in coming season. So last for jobs even short graduation And a graduation

come other. year two reasons doesn't who for that we year. want looking Last So jobs, for to There out they will each with to portion larger competing graduates are that. is are heavily compared see this also,

time spent the COVID, And at just First, were out. job the relatively home is three come also less. of of secondly, they much to they interesting job flat a find opportunities they lot opportunities the were reluctant years and and

out want come compared a So to jobs actively.We lot this for situation to expect they should to don't looking better the year last year. be

active job obviously this platform, reached to secondly, is reason just And cities, number. First job.I should historical our white-collar, large their largely compared with the postings the recovery as noticed first-tier graduates a find companies, and to we have improved discussed, that a year be highs larger the last year. on helped opening

number we posted daily actively till saw full-time the those talking jobs, after graduates. than of with XX% bosses year-on-year. spring who jobs, festival that the grew middle So the the by active May, full-time job more posting The

best BOSS of As have graduated to tried those fact, help children. a our newly Zhipin matter

let's the all wish best.That's your them to all We And one. continue my questions. the will operator, to move that next to do answer and on

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

questions. [Interpreted]I have X

think users wondering months is good, develop share management contribution just your marketing from forward? Olympics? cities year, The and secondly, the to strategies far what sector, we Paris as are Olympics Could forward?And blue-collar going Technology. thoughts the the campaign forward, given what lower-tier a year blue-collar is on especially is going away? --what is so see bigger the pretty for thoughts user becoming regarding your the how growth on is rest thoughts few share this after bigger acquired this user this around your of going of to is Could the business how sales especially serve first the and W.D. the question The I the you company kind your marketing

similar [Interpreted]So thank which -- short you actually for somehow W.D, Zhipin. your [Indiscernible] will question. we BOSS with for

XXXX in for founded both we this So have years. than industry XX with more and been

focusing Internet -- companies. manufacturing they technology first, with W.D, as we platform white-collar workers. on started And factory So focused started

I And so long for time. a have known W.D quite

definition for are them survivor the capability my W.D, So inventing a which long they manufacturing-related pioneer digitalize, which they some actually is suitable for for recruitment. with in combined are time.So

they first for seekers to the experience job for are user of improve the So users the of one helping user the prioritize or experience. and their example, concentrate

regions.So So BOSS is be this leading that's can have why platforms first they today about to certain our acquisition. the for discuss the time

strategy also that our So help the chase for I your with share to consideration cannot us we some W.D, and will which will for core cut want be our reference. to results. respectfully accumulated want to achieve better abilities our and that to own our acquire by is acquisition That's work together collaboration

and question user marketing regarding can I to Timothy's comment growth strategy. Well, second the

at many keep times. So many, is maintain mentioned a reasonable and level we a disciplined user marketing what growth expenses approach. we basically, This will

Olympic marketing efficiency, growth scale current to leverage have brand, not marketing have leading Paris better we our higher but our So heightened at environment, lead satisfactory. will is a appropriately.Within like invoices, enhance Games us means user of a platform with economy spending, to still which spend like and we to definitely, would

of year, our XX close totally million to X months target new XX half the new million growth first in XX recorded Our annual million to users. of this user

don't front. So situation, be need this to with extra we aggressive this at

So hope your question. answers my comment

answers. Okay. our And move That's our -- let's to on all of operator, question. next

of Our CICC. next the Yang question line from comes from Bai

translate for will [Interpreted]I myself.

the we sales and second the competitive recruitment? is, the for landscape this the after one have spring seen mentioned And year change marketing any first in one The we is, strategies have before.

on CapEx, including profit are that companies Have adjusted their this noticed AI-related also we increasing We year? AI expenses. our margin Internet outlook

for question. [Interpreted]Thank your you

the this recruitment have this more this of them majority our aggressively are year of one the for during first spring many So we year, season. festival regarding they spending competition, noticed spring peers or

also So the we that marketing doing noticed were we same investment. and

fierce. So more the is competition

And so spending the overall has increased.

competition competitive have why think to there of various that that in last overall this the also to landscape so opportunities that marketing spend people feel the because first they and have is -- analyzed the noticed April, the During you would more data I earnings call, stable. are that revenue.And already third-party our market very like their quarter, year all in the the after in I increase

the momentum all first events. competitive And peers' And little we believe both that's active for metrics, some improve very, way bit to of question. in metrics -- the only all DAU to good some and to maintain my or competitive and the and maybe the April, our strategies." the competitors numbers, of seekers our are our operating MAU, in data metrics.And maybe spent is quarter's of continue marketing still "marketing past, the effective operating recruiters peers. we the both still so And have all advantages. our But user and situation so our the very, we firmly terms to active answer respect we conclude below a And service in time highly we that surpassed effective operating continue in that job for

our question the to related profile second margin your regarding year. for full And

could expenses I quickly So our cost thoughts. and the mention major the run and through item

margin, the margin, our will higher line basically from slightly COGS, scale below to starting of gross that think second gross we Regarding economy so improve due the the quarter.

current will the wise, bit. a little absolute flat be will Percentage it at maintain decline. increase or will think we level, expenses, marketing mainly so And amount

sales revenue its mainly In flat compensation will to is or guys, percentage decline. in terms be of selling expense, of which

points expenses, you related related could to increased is the to which right part the the combined marketing revenue to its in you but investment that selling R&D the that the total is revenue then year. will improve -- in are spending, -- selling AI and and mentioned be So by expenses, total percentage XXXX.And full and marketing our further the AI we offset just expense,

So the G&A. compared then is And year be similar last percentage R&D full to would flat, percentage-wise, expense points year.

to increased, expect quarter, will temporarily be So for the we drop. it quarter last G&A revenue but percentage second it improved first compared year full In with year. will

So the be percentage-wise, compared full year, will better last with a year. bit

I our trend both our non-GAAP mentioned the numbers. and So just fees, for numbers GAAP adjusted

actually margin So all our for all, the in in most our improve along company. the with to revenue continued XXXX margin operating cost would the growth.So that's overall comment my and items

And Operator, the go that's answers all to ahead. of our question. please

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

Thank again us you for today. once joining

If contact directly. have team you. any Thank further our you questions, please

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

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