Kanzhun Limited (BZ) 11 Dec 242024 Q3 Earnings call transcript

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

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

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

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

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

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

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

everyone. On Hello, company's us. our of you [Interpreted] would I management third supported our extend of and sincere like users employees, who Board and Directors, behalf team the the believing investors and conference us earnings to for quarter XXXX to continuously company's our Thank call. joining gratitude have

revenue of of billion, about for income The X.XX numbers achieved this RMB financial talk a XX% first. Let's million. a year-on-year, quarter up XXX RMB net and company

year-on-year reached a share-based which operating XXX RMB million, growth. income, XX% adjusted our expenses, excludes Additionally, reflecting compensation

additional to to XXXX, Olympic in a which expenses. an the It expenditure. brand Games promotion, During company and the coincided led quarter, Euro with the one-off was marketing increase which Cup resources allocated third

Our growth on remains annual track. target firmly profit

worth primary mentioning company listed is the years. Exchange on that with secondary Hong listing NASDAQ a for for years X X.X as and Additionally, Kong on it

high decline demonstrated which basis. Reflecting third of summarized proportion a expenses, sentences. year-on-year In expenses entered quarter-on-quarter a historically quarter, of our on accounted reduction. have have relatively efforts a anticipated phase both for two the revenue, into our these can be gradual share-based Our on and compensation quarter, this

remains While drivers growth challenging, to key company's market focus on environment results. unwavering yield recruitment the the continue overall positive

Now the let's look a notable third at from take highlights the few quarter.

continued First, strong user our growth to momentum. demonstrate growth

the always XX trajectory. market we enterprises by representing posted has business reached been driver September to BOSS job million. model. newly third quarter a January added growth seeker driven an our users more number the From This the but verified XXXX, job growth app side, us. In monthly growth As increased this recruitment for by year-on-year. relatively share know, newly user to active is million, demand users XX% steady moderate increase. all important mainly positions exceeded average upward fueled quarter, expansion XX on in The a XX% from growth Zhipin year-on-year the showed by and our of user efficient Compared

quarter the slower has to continuing been to enterprise solid, pay, right job From paying thing, users to of decent fill enterprises. shortened has job period company's for willingness with trend user its July widen. Relatively growth quarter, the upward to to number may the the down, cycle supply growth a is term, reduced. time the users' it takes seekers a the ratio. ratio enterprise to demand of for more the customers last slowed In enterprise enterprises paying by the kind second growth. gap a short-term The to leading remains is recruitment affected the the third continued year and this enterprise since despite the position ratio compared the paid the That of same retention of of short affect September, experienced of in and seeker second

customers is solid. enterprise of have remains service However, have good retention recognized enterprise reaches become that XX, reached market enterprise the definitely sustained should a the up the Investors customers paying on XX that XX% observed when on side ended rate the million, is the of The we prerequisite and news annual enterprise a number analysts focus term. decisive a it of of in for and for This the who million, year-on-year. scale long X around months retention XXXX, number enterprise growth. total customers September paid

The committed manufacturing per Fourth, collar in is third purifying enterprise stable. expand continue achieve we to ARPU, remained market the while satisfactory average striving growth. revenue that and the our thing to are to sector, has blue fund the paid customers, environment namely cycle

Our on to capabilities. with customers refined with high-quality innovative algorithms combination candidates, operational connect greater a leveraging strategy focused robust recruiting providing of products, opportunities and

and quarter-on-quarter. XX% of quarter, signed business XXX by consent in from capita XX%. Fifth, In basis. this more to demonstrating mutual create increased by a and technology revenue contract based terms million rise third users value invest monthly of Conch as greater enterprise than in company total in data on between job contribution enterprises the to terms Hailuo our over interactions of increased third facilitated accumulated on average the value. continues helped helped This successful -- our a a the an the result, to of blue-collar seekers project grew continued mutual overall platform quarter, on platform, in number also In number quarter-on-quarter the revenue joining XX% nearly also the achievements of per further

value testament and this been the to has the always data long pursue. entrepreneur, world, all a to an company goal poised will that our As I this and friends, company my the of our view as

repurchased and $XXX XXX part the concludes I call. to commitment has and turn growth now our for overview company's returns, X.X% will delivering XXX Phil, last the financials. million year Thank CFO, our you. sustained shares. over our -- regarding this our worth in to of circumstances. That our Last, call shareholders prospects to for concern confidence total of representing USD in the the around my shareholder to since of repurchase total returns company our any shares million underscores million, bringing of earnings This approximately long-term

Jonathan. everyone. Thanks, Hello,

walk in in Now industries, as financial quarter revenue and was companies financial to results up generally let September small-sized me grew a billion. blue quarter a trailing by even as recruitment paid headwinds X growth market. Number cities months ended XXXX the XX% XX year-on-year facing million of well third delivered soft of this by XX, as year-on-year even overall This results continued enterprise X% Notably, the market, mainly nonstructured of further remained quarter-on-quarter. customers several expenses into and of ARPU flattish in RMB solid the set XXXX. quarter-on-quarter, of stable by the quarter despite through items X.X our expense our details this enterprise We the XX% in or with one-off were expansion penetrated including user cost we our collar driven period. of lower-tier this sequentially. industry was base operating

of is that are strong future. being can one key the our generate leverage we control, effective sustainable focus confident cost operating As in our model continue business to

metrics. financial detailed the at Looking

year-on-year year-on-year quarter, increased XX%. XXXX RMB to by adjusted quarter, processing this bandwidth reached operating employee-related XXX in level well Excluding quarter. RMB X.X share-based our flattish and billion, XX% of margin of with of operating and increased as primarily to adjusted XXX revenues RMB payment by marketing cost, this higher to the launched at XX% operating kept Olympic million the up year-on-year year-on-year last costs Paris in profit marketing million by the XXXX. the RMB Euro Gross compensation cost as mainly campaigns and Adjusted XX% by expenses server and margin by expenses expenses. during XX% as Cup same XX% Sales Games driven Cost million, by quarter-on-quarter. XXX expenses, increased driven

the our confident and a business this we in improved sponsorship continue to top along to growth. R&D our expenses, the expenses Excluding in efficiency increased network selling XXX business, will with enhanced effects strong and million XX% quarter. inherent are recognition improve our Due by RMB both line efficiency marketing powerful in witnessed year-on-year that brand marketing to our trends expenses. we leverage and

Excluding AI earlier The with XXX not expenses the compensation stabilized is in and R&D RMB year-on-year associated million. to in largely costs increase our XX% near future. adjusted has share-based to increased expenses, infrastructure expected investments by depreciation

by expenses and increased employee-related to to RMB one-off that expenses some XX% G&A year-on-year million Our XXX not higher due mainly occur in will quarter, coming expenditures year. this the in

X% And RMB XXX compensation decrease was year-on-year. this income adjusted net increased in RMB income down RMB Total by and this affected which X% and income. investment X% quarter, million Our in the the quarter-on-quarter was million reached XXX expenses by XXX year-on-year, interest net to quarter this and share-based quarter, X% up amounted by in million in year-on-year. our

downward mentioned, As Net XXX total Jonathan that continue year. same stable share-based trend period expecting million, XXXX. of expenses RMB with in just was activities cash by to last provided the operating are in relatively this compensation of we quarter the

us shareholders' As XXXX, repurchase August this our share buyback back the of XXX buy a and return long-term of and of program, March our business. And amount XXX running allows RMB an to program million confidence XXX equivalents, just approximately to time XXXX our short-term announcement consideration commitment as launched we mentioned, investments up billion the -- cash USD demonstrating billion. Since year, which our the USD August RMB and XX.X cash now in total total outlook. the of concurrently business XX.X short-term September deposits repurchased million totaled have additional shares. Jonathan XX, program, million USD of We making with in for reached

And XXXX, to questions. RMB would billion year-on-year ahead please revenues of X.XX total quarter XX.X% and XX.X% (sic) [ XX.X% remarks. the we our RMB increase expect to concludes we the between billion, answer go prepared to ]. That fourth the with For Operator, like a be X.XXX queue. now of

first with from Stanley. Instructions] [Operator Morgan Eddy Wang Our comes question

have X [Interpreted] I questions.

policy September is into is, has of any improvements The recruitment we could maintain some could you think supporting revenue witnessed metrics the in has second end. witnessed and policy Have since as signs launched macro operating we the this you The to first market how growth have one the of XXXX? given should boost well? any that the helped the which economy, uncertainty question sustain government XXXX,

you. one, of several end first I policy observations supporting [Interpreted] since the the About regarding with September. the to share have

been traditionally has season the enterprise since low Firstly, day please improving and for December added of every on we users noticed the end recruitment. basis year-on-year November note a that October. that relatively And newly are

that the level to last reached balance lower trend and is some demand. year-on-year job year actual same added improving. And last demand is thing of relatively continued to However, believe -- -- users my just the the in about a improvement high September, improvement this December. And that this this supply on understanding of since fall transfer back. our year, the despite to are year, which to period understanding continuing My now enterprise and actual is economy which within good has and a I seeker signs, October. and second into has news, have my good of into the is newly this balance recruitment means improvement improving and news, good and basis to and November July and recruiter policy -- same time that many prepared compared supporting issue takes I remarks period been in the are is of this supply is a than concerned, number low ratio, during you that enterprise discussed it

and time, some revenue, which macro, have come. About uncertainty growth drivers for patient our and can should continued growth stay factor So the is guarantee revenue take our second we the still of several question, we we trend, key this how facing unchanged. should

growth. can if overall And be better though user can we uncertainties, some still these level, all stable then the performance. can side XX% it enterprise The but first user have the growth. enterprise Even thing slower, side we expect macro at still of expect The of we least that is at have might grow.

our our maintained stable So solid. And is paying important level. most is second still user growth the important ratio quite a driver driver is still at as the

started ratio XX% like XX% at X% at along now If like reaching and zero you're or this year's looking even paying back, our improved level. to

And so trend the upward is unchanged.

and ratio the is that And of balance can the and improving, supply opinion our sign the we has another expect will growth be macro And stable to then supply paying -- actually significant our can increase marriage. is improvement. And go our that return with demand trend. to our can growth, of ARPU. If connection economy ratio as paying a and third demand some driver ratio back the the our paying experience the

a hurry which driver, have we are not we second aggressively increase and as the to first far is As got in NAV, ARPU.

and I our So growth keep which some business. at driver, improvement revenue And additional will slightly a blue-collar is it stable trend. have

of more money trend. Several driven in Our the revenue. a recruitment idea have -- get money third in I manufacturing the background XX% than with ago, blue and good collar it's quarter to important total resolve This I the bad that on contributed blue-collar want jobs. quite is good industry, the decent years problem people cannot is our which thought

the our top which can day, someday, on agree That's my the some answer coming question. is we equipment Hailuo Conch money saw hope now rules this, college with coming our real reality. of one So from we the do launched to to agents in into project have with And business good us agree to our platform. your strength the back

with Zhao Timothy next comes Our from question GS.

ARPU mentioned in is more revenue user second between in of overall quarter, more the third different sectors as well. SMEs customer key quarter, And growth. regarding is management that accounts? And -- the as question as white management question is including third stable subsectors collar ARPU first trends as the relatively regarding provide My color blue the collar and and the terms detailed sectors breakdown could between into performance and well [Interpreted] the

next I of XXX verified marketing aiming year, close added management as my in that reach the already more we about think the I and for next the newly months get to users to calculation, X marketing mentioned think the share or into should that sales into for expenses year? or in XX we users management year, Could should than growth growth expenses already room think were the they as grow? the how or XX% individual are users million. first individual about million And this

than regarding one, collar the of collar First faster white rate white is overall different still growth collar. [Interpreted] blue blue industries, and of course,

over mentioned, contribution XX%. to has I the revenue As just further increased

which same collar is have by been significantly stable. urban affected has service the last the Compared weak the slowing blue year, was period to white compared blue to collar we down, However, rate growth collar, seen revenue performance. industry relatively mainly

In terms has quarter. urban the weak of the second since subsectors, as said, industry relatively I service just been

However, in a we recent bit weeks. covered little

manufacturing three we several industries, and performed are the manufacture For industries, third and -- in industries recent better weeks. quarter the have logistics best-performing warehouse, the automobile

than XX% manufacturing the in of has growth a example, the For third industry quarter. year-on-year revenue more

of of end on size different noticed the we about And this true prices, the the market.

hyperscale the third is XX,XXX employees in enterprise First best more one performed than quarter. with the

second My micro-sized China's XXX The contribution is enterprise for leaders main also employee companies, one a our is with is this the majority small-sized a enterprises enterprises because small users. actually good than less people. -- understanding is new new of are news that which quite

accounts to most. point X% three three like which than flat accounts' more all the our quarter-over-quarter. add one the breakdown. ARPU growth, ARPU I'd accounts Among up segments, The Key improved up regards XX% is in to highest key overall year-over-year. revenue recorded year-over-year,

good growth potential, our question for [Interpreted] actually And question. user it's your second about a quite

And to to enterprise -- marketable conclusion for strong different two space double XXX our or the So planning on of but of China some is started a matter serve advantage marketable side, several that XX more and spending of China's enterprises, are have has through reasons. very even the lot even what, room suitable XX the enterprise number not model that because number No grow. space are companies methodology first says come million channel is acquisition. bigger, million. employees marketing strong XX than a large China's million to than very we we that official on or different more money a very a actually we terms which million, channels means There have industries, for which are and and of in small user enterprise even support across we are micro-sized have we users. And room to can employees

users. of spending And due campaign, network our has or to very no the we significant events accounted portion marketing more new need a technically money double-sided big natural a which First, strong speaking, on. to there effect, really very traffic second is for

And marketing spend low my will relatively as answer result, level. our a at your to question. we So a keep that's

UBS. comes Xiong next with from Our question Wei

your [Interpreted] My manufacturing is the verticals. Do for capabilities And Could strategy blue growth collar change share blue to plan have offline observed any and other recruitment. the future on service the question we around landscape collar for first management build business here? maybe we blue recruitment? collar our also, competitive in

has outlook the the commitment very on the profitability understand second, strong management uncertainties. macro year. a I to light And profitability just next protecting in shown of for

as profitability year, at do potential we look just profit any see should the is new next goal what for for there And our that major we if we So drivers investments improvement? the consider?

The talked we the about have manufacturing collar just We [Interpreted] in blue sector. is churn improvement. the

is essence minding that those actually become rules, coexist four And reality. is to idea reality, into of can these one is be business. intermediaries, concept which the idea allow game more workers So or platforms, under factories, come everyone that now the and which co-recognized efficient parties can has and

So will interest and about process. player, hard against talk this the workers long-term which again And is platforms are very the and interest. actually battling I a factories, all agents, is short-term they essence, every

quite in working X,XXX For his salary be who aware clearly range. example, the manufacturing one should worker that per RMB is month

a post XXX,XXX or resist their of submit month, he is to job quite resume. However, if someone tempt to RMB per hard

facing market his for opportunity. a And to is reach a for example around X,XXX So season, job unreal In it's working said actually RMB good a just per secure can on current workers conditions. salary potential the fight I and month. the

offline the is we question hope X,XXX. I your no range to if similar range, be compete term, the posting But can the X,XXX in to I which have have salary we RMB more I need I with Conch, I allows of is assume from with confirm answered If invest month, So doing so are difficult not questions. And and post month. position. And I have a control advantage workers' quite over XXX,XXX jobs second short can that, placement of the per lot level. continue higher a landscape, committed competitive job than because the to RMB I long that related people be able I in to this about no salary input truth two the term, how on have have than the return of strong -- may the kind platform what do job about will RMB per every the actually because

So I a continue to can clear we I that, established have very hope do which advantages. already

I hopefully, invest So term, have question, a I we will second game results. And And while short those answer. in good won't in placement give a four the short heavily the participants. our current the continuing with clear can but

thing which these need So all thing. the and right to to out is to facing profit or our guarantee difficulties, definitely do is correct we profitability we find definitely believe to

one trend But will details. So our have I quite turn we profit. we terms that in of profit And won't about This our guarantee will into need next confidence. management have much is to managing is -- leverage, quite very I very long operating and our we can have, so strong say year as our profit. which target, we as I do too clear. can thing talk strong majority

of XXXX, some margin company's offer Regarding I thoughts. in outlook our our can

to XXXX There's improved head be marketing will the actual will Regarding additional slightly next kept increase. selling near-term Sales efficiency to level decrease. hardware. spending or Absolute or year. expenses. will flat our be no leave expect R&D of margin AI count improvement will even gross amount at not gross leverage investment likely we margin,

new our spending and is, disciplined expect new -- our more business, approach. our So will thing with be one business we

further all will in margin our as improve further will So -- improve with top all, along operating our Jonathan growth. said, line

the So this margin view towards is our profit.

the In of I question. we take X can think constraint, time light last

CICC. Yanyan from comes ] [ question Zhao last with Our

my and first products, industry-wide question second business overseas two investment? My progressing like is, [Interpreted] noticed goals we towards trend And is can AI I how questions. profit business control have our AI our an how we've is that question balance overseas interviews. with

reduction current how you the recruitment the might revenue of So there scenarios view do potential be? AI or new application And in opportunities field? cost what

has the we with methodology, is in business. is your to we our have profit developer very which next means our won't big [ overseas relation This investment rabbit, first About business release the in [Interpreted] we which a ] in won't question we overseas in have certainty. thing target, of investment increase goal heavily relation see our before relation investment won't clear with we one so our business that some until year,

limited we some with do So have to cost. small experiment very

rabbit won't our so expect next So -- see clearly next that we in affect that we can our plan, year, year. won't profit

application now application, AI industries, the within is not the the of actually the real of industry terms technology high prospect or with other reality scenario. related In actually actual is

a So loud frightening, very that's but rent. very small

So But our effect. opinion explain practice. during I that's to industrial industry further want our

is, one seekers will first and equality job The we on between insist recruiters.

to use allow the other we not once in over right second any know. sight will advantage to is principle the insist side. And AI to the have advantages of We

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security the this security past of One reason we overall AI our of technology than the assist We with number efficiency. the of our our terms team protecting used have is, that in which So tens review of users, team. disclosed we our technology to important and quite the year, reputation, increased XXX our our of didn't over increased AI we been more safety we millions useful. total has increase of but in users, people

not [Technical fighting Whenever things fighting do -- do the things rapid the of platform, on to with principle is the the then he in of bad the Difficulty] actually do the history will the the platform, continue to So to that. cost. first

With increase that, it operation. questions over AI, real can the for And that's all for help that's answer the so tonight. of value your my And I questions. for actually our our create advantages we think can

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

you again Thank for joining once today. us

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

Thank program. you for participation. the your conclude This does

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