Slides
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KANZHUN LIMITED 3Q 2024 Results Presentation
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1 1 The following document has been prepared by KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) solely for informational purposes and should not be construed to be, directly or indirectly, in whole or in part, an offer to buy or sell and/or an invitation and/or a recommendation and/or a solicitation of an offer to buy or sell any security or instrument or to participate in any investment or trading strategy, nor shall any part of it form the basis of, or be relied on in connection with, any contract or investment decision in relation to any securities or otherwise. This document does not contain all relevant information relating to the Company or its securities, particularly with respect to the risks and special considerations involved with an investment in the securities of the Company. Nothing contained in this document shall be relied upon as a promise or representation as to the past or future performance of the Company. Past performance does not guarantee or predict future performance. You acknowledge that any assessment of the Company that may be made by you will be independent of this document and that you will be solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the business of the Company. This document contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited, in its interim and annual reports to shareholders of the Company, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. All information provided herein is as of the date of this document, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law. This document also contains non-GAAP financial measures, the document of which is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America. In addition, the Company’s calculation of these non-GAAP financial measures may be different from the calculation used by other companies, and therefore comparability may be limited. The reconciliation of those measures to the most comparable GAAP measures is contained within this document or available at our website https://ir.zhipin.com. Disclaimer
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Company Overview
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3 3 Strong growth momentum, far outpacing the industry Notes: 1. In terms of Average MAU and online recruitment revenue s, CIC & QM data 2. Average MAU lines before 2019 are for illustrative purpose only and do not reflect actual performance 3. Enterprise users and company accounts from which we recognize revenues for our online recruitment services for the 12 months ended September 30, 2024 4. Excluding the impact of share -based compensation expenses We are the Largest Online Recruitment Platform1 in China Our Fast Growing MAU2 58.0MM Avg MAU in 2024Q3 30.0% YoY Growth RMB 1.91BN Revenues in 2024Q3 6.0MM Paid Enterprise Customers3 RMB 738.9MM Adjusted Net Income4 in 2024Q3 3.5% YoY Growth 38.7% Adjusted Net Margin4 MAU MM
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4 4 We introduce a disruptive mobile-native direct recruitment model with better convenience, accuracy, efficiency and transparency A New Way of Hiring – the Next Gen Online Recruitment Platform… Download ResumeWeb Platform Job Seekers Employers Submit Resume Traditional Job Board Model One-way Resume Upload & Download Service Recommendation-based Direct Chat & Engagement Job Seekers Boss/ Professional Employers APP Our Direct Recruitment Model Two-way Communication Platform Convenience Accuracy Efficiency Transparency + = Communication Chat between job seekers and employers, like using WeChat and WhatsApp BOSS Zhipin Information Browse feed-streams of job opportunities and candidates, like using Facebook and Toutiao A disruptive model Combine instant messaging with recommendation feeds, powered by big data and AI technologies Recommendation Feeds Direct Chat Mobile-native Search for Candidates Search for Jobs
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5 5 We capture incremental market opportunities and serve more users in the online recruitment industry … Result in Reaching Full-spectrum of Job-seekers and Employers 24.5MM Verified Enterprise Users1,2 166.8MM Verified Job Seekers1 Recruiting Professionals White and Gold-collar Blue-collar College Students Focus of Traditional Players Notes: 1. As of December 31, 2023 2. Enterprise users include professional recruiters and bosses in enterprises 3. SMEs are small and medium size enterprises with fewer than 100 employees Bosses SMEs Incremental Market Previously Underserved 33% of Job Seekers are Blue-collar1 Accurate job and candidate recommendation Massive scale Fairer traffic distribution Expanded user reach capturing underserved market 67% of Enterprise Users are Bosses1 87% of Enterprises are SMEs1,3
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6 6 Our Innovative Technology Reinforces Strong Network Effects Innovative Technology Superior Services More Choices More Opportunities More Interaction Higher Accuracy Better Experience More Job Seekers More Data Insights More Employers Double-sided user ecosystem, accumulated data and advanced technology enhance our competitive advantage
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Financial Highlights
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8 8 1,606.6 1,911.6 4,371.8 5,532.1 2023Q3 2024Q3 2023.1-9 2024.1-9 Our Solid Revenue Growth Revenues RMB MM Long-term Growth Drivers Notes: 1. Average revenue per paying enterprise user 2. Representing year-on-year growth rate Driven by continued user growth, improved paying ratio and stable ARPPU1 Robust enterprise user growth supported by our strong network effect and full spectrum of user coverage Improved paying ratio back by our highly efficient monetization model Long-term ARPPU growth potential with best value for money 19.0%2 26.5%2
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9 9 119.6 192.4 359.9 510.7 305.9 361.5 808.5 1,060.1 389.3 454.8 1,365.2 1,437.2 255.5 303.2 750.0 892.7 2023Q3 2024Q3 2023.1-9 2024.1-9 … with Enhanced Operating Efficiency… Adjusted Operating Cost and Expenses1 RMB MM Note: 1. Excluding share-based compensation expenses Improving operating efficiency testifies the effectiveness of our business model Adjusted gross margin1 84.1% 83.9% 24.2% 19.0% 7.4% Adjusted cost of revenues Adjusted sales and marketing expenses Adjusted research and development expenses Adjusted general and administrative expenses as % of Revenues 15.9% 84.1% 82.8% 23.8% 18.9% 10.1% 15.9% 31.2% 18.5% 8.2% 17.2% 26.0% 19.2% 9.2% 16.1%
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10 10 549.4 605.3 1,118.3 1,657.9 2023Q3 2024Q3 2023.1-9 2024.1-9 714.1 738.9 1,527.5 1,988.3 2023Q3 2024Q3 2023.1-9 2024.1-9 … Lead to Improving Profitability Capability Adjusted Income From Operations1 RMB MM Adjusted Net Income1 Notes: 1. Excluding share-based compensation expenses 2. Representing year-on-year growth rate Proven and continuously improved profitability RMB MM 30.0%34.2% Adjusted operating margin1 Adjusted net margin1 10.2%2 35.9%44.4% 3.5%2 31.7% 25.6% 48.3%2 38.7% 34.9% 30.2%2
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11 11 812.6 812.3 2,120.2 2,586.4 2023Q3 2024Q3 2023.1-9 2024.1-9 Our Robust Operating Cash Flow and Strong Cash Position Operating Cash Flow RMB MM Strong cash generation capability and ample cash on hand Notes: 1. Representing year-on-year growth rate 2. Including cash and cash equivalents, short-term time deposits and short-term investments 3. Defined as operating cash flow less capital expenditures RMB 14.60BN Cash Position2 as of September 30, 2024 RMB 1.75BN Free Cash Flow3 for the nine months ended September 30, 2024 USD 200MM USD 150MM Share Repurchase Program Announced in March and August 2024 Cash Position & Cash Management Capital Allocation 22.0%1 (0.0)%1 USD 135.8MM Total Consideration for Share Repurchase for the nine months ended September 30, 2024
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Appendix
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13 13 Unaudited Selected Income Statement Data For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 (All amounts in thousands, except for percentages) RMB RMB RMB RMB Revenues 1,606,636 1,911,575 4,371,797 5,532,071 Operating cost and expenses Cost of revenues (267,529) (314,026) (785,015) (925,997) Sales and marketing expenses (457,341) (522,268) (1,557,772) (1,646,707) Research and development expenses (414,429) (464,151) (1,113,404) (1,375,449) General and administrative expenses (219,428) (286,432) (587,000) (818,114) Total operating cost and expenses (1,358,727) (1,586,877) (4,043,191) (4,766,267) Income from operations 260,987 330,183 358,719 792,385 Net income 425,717 463,827 767,977 1,122,801 Gross margin 83.30% 83.60% 82.00% 83.30% Operating margin 16.20% 17.30% 8.20% 14.30% Net margin 26.50% 24.30% 17.60% 20.30% Non-GAAP Financial Measures Adjusted operating cost and expenses Cost of revenues (255,513) (303,190) (750,037) (892,745) Sales and marketing expenses (389,276) (454,763) (1,365,177) (1,437,248) Research and development expenses (305,922) (361,492) (808,467) (1,060,117) General and administrative expenses (119,648) (192,365) (359,949) (510,670) Total adjusted operating cost and expenses (1,070,359) (1,311,810) (3,283,630) (3,900,780) Adjusted income from operations 549,355 605,250 1,118,280 1,657,872 Adjusted net income 714,085 738,894 1,527,538 1,988,288 Adjusted gross margin 84.10% 84.10% 82.80% 83.90% Adjusted operating margin 34.20% 31.70% 25.60% 30.00% Adjusted net margin 44.40% 38.70% 34.90% 35.90%
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14 14 Unaudited Selected Cash Flow Data For the three months ended September 30, For the nine months ended September 30, 2023 2024 2023 2024 (All amounts in thousands) RMB RMB RMB RMB Net cash provided by operating activities 812,554 812,290 2,120,172 2,586,387 Net cash used in investing activities (1,058,781) (698,000) (9,449,149) (1,293,771) Net cash (used in)/provided by financing activities (43,826) (753,763) 25,129 (940,188) Effect of exchange rate changes on cash and cash equivalents (6,096) (16,759) (3,356) (9,229) Net (decrease)/increase in cash and cash equivalents (296,149) (656,232) (7,307,204) 343,199 Cash and cash equivalents at beginning of the period 2,740,769 3,472,390 9,751,824 2,472,959 Cash and cash equivalents at end of the period 2,444,620 2,816,158 2,444,620 2,816,158
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15 15 Unaudited Selected Balance Sheet Data As of December 31, 2023 September 30, 2024 (All amounts in thousands) RMB RMB ASSETS Current assets Cash and cash equivalents 2,472,959 2,816,158 Short-term time deposits 6,922,803 5,757,701 Short-term investments 3,513,885 6,025,604 Other current assets 463,390 547,652 Total current assets 13,373,037 15,147,115 Non-current assets Property, equipment and software, net 1,793,488 1,804,596 Long-term investments 2,473,128 1,235,774 Other non-current assets 300,395 625,933 Total non-current assets 4,567,011 3,666,303 Total assets 17,940,048 18,813,418 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 629,216 81,438 Deferred revenue 2,794,075 3,071,565 Other current liabilities 934,060 836,721 Total current liabilities 4,357,351 3,989,724 Total non-current liabilities 153,504 189,941 Total liabilities 4,510,855 4,179,665 Total shareholders’ equity 13,429,193 14,633,753 Total liabilities and shareholders’ equity 17,940,048 18,813,418
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16 16 THANK YOU! Contact Us: ir@kanzhun.com https://ir.zhipin.com BOSS直聘