Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Kanzhun Ltd (BZ, Financial) achieved calculated cash billings of RMB1.95 billion, up 20% year on year.
- GAAP revenue reached RMB1.92 billion, up 29% year on year, with a net profit of RMB420 million.
- Adjusted net income, excluding share-based compensation expenses, rose to RMB720 million, up 26% year on year.
- The company attracted around 28 million newly added verified users in the first half of the year.
- Total paid enterprise customers increased by 31% year on year to 5.9 million.
Negative Points
- Cash billings in the second quarter were weaker on a quarter-on-quarter basis and below expectations.
- Weaker demand from the recruitment side, with fewer enterprise users and more job seekers in the market.
- The company's share-based compensation expenses reached a peak level in this quarter.
- The macroeconomic environment remains challenging, impacting recruitment demand.
- The company is facing a high CV ratio, indicating a mismatch between job seekers and enterprise users.
Q & A Highlights
Q: How does the management view the current market share and the adverse macro environment? Are there plans to accelerate market share growth?
A: Peng Zhao, CEO: The competitive landscape is stable, and Kanzhun has a good competitive advantage. Our MAU and DAU achieved historical highs in Q2, indicating strong user activity. We aim to ensure profitability for the year and will focus on efficient resource allocation and cost management to achieve our profit targets.
Q: Have you witnessed any improvement in recruitment demand in August compared to June and July? How are different industries performing?
A: Peng Zhao, CEO: In Q2, overall willingness to pay from recruiters decreased, but blue-collar recruitment demand remained strong. The manufacturing and logistics sectors performed well. In August, the enterprise-to-jobseeker ratio improved, and daily active enterprise users increased week by week.
Q: What measures are being taken to offset macroeconomic headwinds?
A: Peng Zhao, CEO: We are concentrating resources on high-potential projects, particularly in the blue-collar manufacturing sector. We are enhancing investments in this area to generate revenue and improve our market position.
Q: Can you elaborate on recent developments regarding the WTE acquisition and investments in AI?
A: Peng Zhao, CEO: We respect WTE's expertise and have integrated their team to lead development and improve our overall environment. We are also focusing on AI applications to enhance our platform's efficiency and user experience.
Q: Given the recent weakness in the company's shares, what are your plans for share buybacks and potential dividends?
A: Peng Zhao, CEO: We have a $200 million share buyback program, with $88 million already repurchased. We are also studying the potential for regular dividends to provide consistent shareholder returns.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
