Kanzhun Ltd Q3 FY2024 earnings call

• User growth: Average monthly active users on BOSZETING app reached 58 million, a 30% year-on-year increase; newly added verified users from January to September 2024 exceeded 40 million. • Enterprise recruitment demand: Newly posted job positions in the third quarter increased by 18% year-on-year. • Paid enterprise customers: Total number of paid enterprise customers for the twelve months ended September 30, 2024, reached around six million, up 22% year-on-year. • ARPU: Remained stable. • Blue-collar business: Revenue contribution from the overall blue-collar business further increased to more than 38%. • Share-based compensation: Expenses declined both year-on-year and quarter-on-quarter, entering a phase of gradual reduction. • Marketing expenses: Increased due to campaigns during the Olympic Games and Euro Cup 2024, but it was a one-off expenditure.

The company achieved a revenue of RMB 1.91 billion, up 19% year-on-year, and a net income of RMB 460 million. Adjusted operating income, excluding share-based compensation expenses, reached RMB 610 million, reflecting a 10% year-on-year growth. The blue-collar business contributed more than 38% to the total revenue in the third quarter.

• For the fourth quarter of 2024, total revenues are expected to be between RMB 1.795 billion and RMB 1.81 billion, a year-on-year increase of 15.6% to 14.5%. • Anticipates share-based compensation expenses to continue the downward trend in 2025.

• Macro-economic uncertainty may affect enterprise recruitment demand. • Supply-demand imbalance could impact the growth of the company's paying ratio. • Potential challenges in overseas business expansion if not managed properly.

Q: Future growth strategy for blue-collar business and profitability outlook for next year?

A: Blue-collar business aims to resolve industry issues; profitability improvement driven by operating leverage, gross margin flat or slightly improving, sales efficiency improvement, capped marketing spending, disciplined new business spending.

Q: Overseas business and AI application in recruitment?

A: No big investment in overseas business next year; AI application should ensure equality, right to know, and avoid wasteful use; AI used for user safety verification to increase review efficiency.