Kanzhun Limited (NASDAQ:BZ) Q2 2023 Earnings Call Transcript

This comment is more like a mid- to long-term comment, where we expect the operating margin to steadily improve along with good top-line growth. But in short-term, it will subject to seasonality and other one-off events.

Wenbei Wang: Thank you. That’s all of our answer to your question. And operator, please proceed to the next question.

Operator: Thank you. Our next question is from the line of Yu Bai with Haitong International. Your line is now open.

Yu Bai: [Foreign Language] Thank you management for taking my questions. I actually have two for today. The first one is regarding our recent recovery trend. Like Jonathan has just mentioned, we’ve witnessed some encouraging trends from enterprise users in August. So, I would like to further understand, does that comply to our normal seasonality, or is there something that’s quite unusual for this year? And then within that, what is the recovery momentum out there for our [KA] (ph) accounts? If management could share any operating metrics like engagement ratio, paying ratio and ARPU and et cetera, that would be much appreciated. So that was my first question. And then my second question is a little bit broader. We all acknowledge that this year, it seems that macro environment has been a little bit weaker than we thought it would be.

So I’m just wondering under such a condition, what is our top strategic priority for now or maybe for the remaining couple of months this year and for next year as well? So, at the same time, what are the things that we might just want to lay back a little bit to wait for better opportunities in the future? So that was the second question. Thank you, management.

Jonathan Peng Zhao: [Foreign Language] [Interpreted] Thank you for your question. For your first question, whether we are focusing the trend [indiscernible] for the online recruitment market, there are two keywords: first one is the Golden March and Silver April; next — second one is Golden September and Silver October, which both means a market condition. And the second one, for Golden September and Silver October, which is definitely starting from August. And this has more relation to the larger companies. For all those good — for all those graduates from top universities who will graduate in July 2024, many larger companies will be starting to do the recruiting for the top talent during September to November this year. On top of the seasonality, another factor is that I believe the recruitment demand is gradually recovering alongside the economy and which will be shown in the data as follows.

In August, the daily active enterprise users number have reached a historical high. Enterprises in all kinds of sizes, large companies, mid-sized and small-sized, all size of companies have shown a very fast recovering trend improvement. To be honest, I cannot clearly distinguish which part is from seasonality, which part is from a recovering economy, but we still need to take some time to observe. But at least the current trend is quite encouraging. For the recovery of KA customers, the number is quite simple, but we have saw that enterprises with more than 500 employees is newly posted — number of newly posted jobs, the growth rate — the sequential growth rate is faster compared to enterprises with less than 500 employees. And in terms of the company strategy, I would like to share with you several forward — several things we have been calling to all this year.

The first one is based on the NPS, we are continuing to increase our market share. As we said, we have trailing 12-month paid enterprises nearly over 2 million, which is a small portion compared to 15 million enterprises in China. We still have a very long way to go. And our second strategy, which is also something we have been doing for quite a long time, which is to continue to invest in technology not only for application technology, but also career science — fundamental science. Actually, for the second quarter, which is a relatively tough time, we captured the growth in the blue-collar and lower-tier cities, I believe which is the result of all these years of continuous investment in technology, which help us to capture the opportunity when the environment allows.