KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX:
2076), a leading online recruitment platform in China, today
announced its unaudited financial results for the quarter ended
March 31, 2023.
First Quarter 2023
Highlights
-
Revenues for the first quarter of 2023 were
RMB1,277.5 million (US$186.0 million), an increase of 12.3% from
RMB1,137.9 million for the same quarter of 2022.
- Calculated
cash billings1 for the first quarter of
2023 were RMB1,649.6 million (US$240.2 million), an increase of
27.7% from RMB1,291.5 million for the same quarter of 2022.
- Average
monthly active users (MAU)2 for the first
quarter of 2023 were 39.7 million, an increase of 57.5% from 25.2
million for the same quarter of 2022.
- Total paid
enterprise customers3 in the twelve
months ended March 31, 2023 were 4.0 million, on par with that in
the twelve months ended March 31, 2022.
- Net
income for the first quarter of 2023 was RMB32.7 million
(US$4.8 million), compared to a net loss of RMB12.2 million for the
same quarter of 2022. Adjusted net
income4 for the first quarter of 2023 was
RMB245.0 million (US$35.7 million), an increase of 102.3% from
RMB121.1 million for the same quarter of 2022.
Mr. Jonathan Peng Zhao, Founder, Chairman and
Chief Executive Officer of the Company, commented, “We are pleased
to deliver a strong quarter with revenue growth starting to
re-accelerate, driven by robust user growth and a rebound of
recruitment demand post-spring festival. Our MAU, revenues,
calculated cash billings and multiple other key metrics hit record
highs in the quarter. We are confident to maintain this growth
momentum and continue delivering solid results in the coming
quarters.”
Mr. Phil Yu Zhang, Chief Financial Officer,
added, “Our adjusted net income reached RMB245.0 million,
representing a 102.3% year-on-year growth, despite the fact that
the first quarter is normally a high season for marketing expenses
related to strong user growth. This solid profitability mainly
resulted from our enhanced brand recognition and improved marketing
efficiency, which we also believe will drive our sustainable and
quality growth.”
_____________________
1 Calculated cash billings is a non-GAAP
financial measure, derived by adding the change in deferred revenue
to revenues. For more information on the non-GAAP financial
measures, please see the section of “Non-GAAP Financial Measures.”2
Monthly active users refer to the number of verified user accounts,
including both job seekers and enterprise users, that logged on to
our mobile application in a given month at least once.3 Paid
enterprise customers are defined as enterprise users and company
accounts from which we recognize revenues for our online
recruitment services.4 Adjusted net income/loss and adjusted basic
and diluted net income/loss per ADS attributable to ordinary
shareholders are non-GAAP financial measures, excluding the impact
of share-based compensation expenses. For more information on the
non-GAAP financial measures, please see the section of “Non-GAAP
Financial Measures.”
First Quarter 2023 Financial
Results
Revenues
Revenues were RMB1,277.5 million (US$186.0
million) for the first quarter of 2023, representing an increase of
12.3% from RMB1,137.9 million for the same period in 2022.
- Revenues from
online recruitment services to enterprise customers were RMB1,260.1
million (US$183.5 million) for the first quarter of 2023,
representing an increase of 11.8% from RMB1,127.3 million for the
same period in 2022. This increase was mainly driven by the user
growth and recovery of recruitment demand after spring
festival.
- Revenues from
other services, which mainly comprise paid value-added services
offered to job seekers, were RMB17.5 million (US$2.5 million) for
the first quarter of 2023, representing an increase of 65.1% from
RMB10.6 million for the same period in 2022, mainly benefiting from
expanded user base.
Operating cost and expenses
Total operating cost and expenses were
RMB1,373.7 million (US$200.0 million) for the first quarter of
2023, representing an increase of 19.9% from RMB1,146.1 million for
the same period of 2022. Total share-based compensation expenses
were RMB212.3 million (US$30.9 million) for the first quarter of
2023, representing an increase of 59.4% from RMB133.2 million for
the same period of 2022.
- Cost of
revenues was RMB247.2 million (US$36.0 million) for the
first quarter of 2023, representing an increase of 39.4% from
RMB177.3 million for the same period of 2022, primarily due to
increases in server and bandwidth cost and payment processing
cost.
- Sales and
marketing expenses were RMB628.8 million (US$91.6 million)
for the first quarter of 2023, representing an increase of 20.4%
from RMB522.4 million for the same period of 2022, primarily due to
increases in expenses related to sales employee compensations
and user acquisition.
- Research
and development expenses were RMB333.1 million (US$48.5
million) for the first quarter of 2023, representing an increase of
14.6% from RMB290.7 million for the same period of 2022, primarily
due to an increase in share-based compensation expenses.
- General
and administrative expenses were RMB164.6 million (US$24.0
million) for the first quarter of 2023, representing an increase of
5.7% from RMB155.7 million for the same period of 2022, primarily
due to an increase in share-based compensation expenses.
Loss from operations
Loss from operations was RMB77.3 million
(US$11.3 million) for the first quarter of 2023, compared to RMB3.3
million for the same period of 2022.
Net income/loss and adjusted net
income
Net income was RMB32.7 million (US$4.8 million)
for the first quarter of 2023, compared to a net loss of RMB12.2
million for the same period of 2022.
Adjusted net income was RMB245.0 million
(US$35.7 million) for the first quarter of 2023, representing an
increase of 102.3% from RMB121.1 million for the same quarter of
2022.
Net income/loss per ADS and adjusted net
income per ADS
Basic and diluted net income per ADS
attributable to ordinary shareholders for the first quarter of 2023
were RMB0.08 (US$0.01) and RMB0.07 (US$0.01), respectively,
compared to basic and diluted net loss per ADS of RMB0.03 in the
same period of 2022.
Adjusted basic and diluted net income per ADS
attributable to ordinary shareholders4 for the first quarter of
2023 were RMB0.57 (US$0.08) and RMB0.54 (US$0.08), respectively,
compared to adjusted basic and diluted net income per ADS of
RMB0.28 and RMB0.26, respectively, in the same period of 2022.
Net cash provided by operating
activities
Net cash provided by operating activities was
RMB543.9 million (US$79.2 million) in the first quarter of 2023,
representing an increase of 85.0% from RMB294.0 million in the same
period of 2022.
Cash position
Balance of cash and cash equivalents and
short-term investments was RMB13,456.1 million (US$1,959.4 million)
as of March 31, 2023.
Share Repurchase Program
In March 2023, the Company’s board of directors
authorized a new share repurchase program under which the Company
may repurchase up to US$150 million of its shares (including in the
form of ADSs) over the next 12 months.
Outlook
For the second quarter of 2023, the Company
currently expects its total revenues to be between RMB1.43 billion
and RMB1.46 billion, representing a year-on-year increase of 28.6%
to 31.3%. This forecast reflects the Company’s current views on the
market and operational conditions in China, which are subject to
change and cannot be predicted with reasonable accuracy as of the
date hereof.
Conference Call Information
The Company will host a conference call at
8:00AM U.S. Eastern Time on Wednesday, May 24, 2023 (8:00PM Beijing
Time on Wednesday, May 24, 2023) to discuss the financial
results.
Participants are required to pre-register for
the conference call
at:https://register.vevent.com/register/BI046c9777bdf4411b8a395b15e5c64a31
Upon registration, participants will receive an
email containing participant dial-in numbers and unique personal
PIN. This information will allow you to gain immediate access to
the call. Participants may pre-register at any time, including up
to and after the call start time.
Additionally, a live and archived webcast of the
conference call will be available on the Company's investor
relations website at https://ir.zhipin.com.
Exchange Rate
This announcement contains translations of
certain RMB amounts into U.S. dollar (“US$”) amounts at specified
rates solely for the convenience of the reader. Unless otherwise
stated, all translations from RMB to US$ were made at the exchange
rate of RMB6.8676 to US$1.00 on March 31, 2023 as set forth in the
H.10 statistical release of the Federal Reserve Board. The Company
makes no representation that the RMB or US$ amounts referred could
be converted into US$ or RMB, as the case may be, at any particular
rate or at all.
Non-GAAP Financial Measures
In evaluating the business, the Company
considers and uses non-GAAP financial measures, such as calculated
cash billings, adjusted net income/loss, adjusted net income/loss
attributable to ordinary shareholders, adjusted basic and diluted
net income/loss per ordinary share attributable to ordinary
shareholders and adjusted basic and diluted net income/loss per ADS
attributable to ordinary shareholders as supplemental measures to
review and assess operating performance. The Company derives
calculated cash billings by adding the change in deferred revenue
to revenues. The Company uses calculated cash billings to measure
and monitor sales growth because the Company generally bills its
paid enterprise customers at the time of sales, but may recognize a
portion of the related revenue ratably over time. The Company
believes calculated cash billings provides valuable insights into
the cash generated from sales and is a valuable measure for
monitoring service demand and financial performance. The Company
defines adjusted net income/loss and adjusted net income/loss
attributable to ordinary shareholders by excluding the impact of
share-based compensation expenses, which are non-cash expenses,
from the related GAAP financial measures. The Company believes that
these non-GAAP financial measures help identify underlying trends
in the business that could otherwise be distorted by the effect of
certain expenses and facilitate investors’ assessment of the
Company’s operating performance.
The non-GAAP financial measures are not defined
under U.S. GAAP, and are not presented in accordance with U.S.
GAAP. The non-GAAP financial measures have limitations as
analytical tools and should not be considered in isolation or as a
substitute for most directly comparable GAAP financial measures.
The Company encourages investors and others to review its financial
information in its entirety and not rely on a single financial
measure.
A reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP financial measures
has been provided in the table captioned “Unaudited Reconciliation
of GAAP and Non-GAAP Results” at the end of this press release.
Safe Harbor Statement
This press release 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 annual report to shareholders, 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 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 in this press release is as of the date of
this press release, and the Company does not undertake any
obligation to update any forward-looking statement, except as
required under applicable law.
About KANZHUN LIMITED
KANZHUN LIMITED operates the leading online
recruitment platform BOSS Zhipin in China. The Company connects job
seekers and enterprise users in an efficient and seamless manner
through its highly interactive mobile app, a transformative product
that promotes two-way communication, focuses on intelligent
recommendations, and creates new scenarios in the online recruiting
process. Benefiting from its large and diverse user base, BOSS
Zhipin has developed powerful network effects to deliver higher
recruitment efficiency and drive rapid expansion.
For investor and media inquiries, please
contact:
KANZHUN LIMITEDInvestor RelationsEmail:
ir@kanzhun.com
PIACENTE FINANCIAL COMMUNICATIONSEmail:
kanzhun@tpg-ir.com
KANZHUN LIMITED |
Unaudited Condensed Consolidated Statements of
Comprehensive Loss |
(All amounts in thousands, except for share and per share
data) |
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
Revenues |
|
|
|
|
|
|
Online recruitment services to enterprise customers |
|
1,127,318 |
|
|
1,260,057 |
|
|
183,479 |
|
Others |
|
10,562 |
|
|
17,489 |
|
|
2,547 |
|
Total
revenues |
|
1,137,880 |
|
|
1,277,546 |
|
|
186,026 |
|
Operating cost and
expenses |
|
|
|
|
|
|
Cost of revenues(1) |
|
(177,348 |
) |
|
(247,164 |
) |
|
(35,990 |
) |
Sales and marketing expenses(1) |
|
(522,374 |
) |
|
(628,838 |
) |
|
(91,566 |
) |
Research and development expenses(1) |
|
(290,739 |
) |
|
(333,068 |
) |
|
(48,498 |
) |
General and administrative expenses(1) |
|
(155,687 |
) |
|
(164,586 |
) |
|
(23,966 |
) |
Total operating cost
and expenses |
|
(1,146,148 |
) |
|
(1,373,656 |
) |
|
(200,020 |
) |
Other operating income, net |
|
5,009 |
|
|
18,811 |
|
|
2,739 |
|
Loss from
operations |
|
(3,259 |
) |
|
(77,299 |
) |
|
(11,255 |
) |
Investment income |
|
9,274 |
|
|
51,611 |
|
|
7,515 |
|
Financial income, net |
|
3,677 |
|
|
75,782 |
|
|
11,035 |
|
Foreign exchange loss |
|
(442 |
) |
|
(1,099 |
) |
|
(160 |
) |
Other (expenses)/income, net |
|
(8,854 |
) |
|
5,642 |
|
|
822 |
|
Income before income
tax expenses |
|
396 |
|
|
54,637 |
|
|
7,957 |
|
Income tax expenses |
|
(12,568 |
) |
|
(21,974 |
) |
|
(3,200 |
) |
Net
(loss)/income |
|
(12,172 |
) |
|
32,663 |
|
|
4,757 |
|
Net (loss)/income
attributable to ordinary shareholders |
|
(12,172 |
) |
|
32,663 |
|
|
4,757 |
|
|
|
|
|
|
|
|
Net
(loss)/income |
|
(12,172 |
) |
|
32,663 |
|
|
4,757 |
|
Other comprehensive
loss |
|
|
|
|
|
|
Foreign currency translation adjustments |
|
(44,243 |
) |
|
(139,928 |
) |
|
(20,375 |
) |
Total comprehensive
loss |
|
(56,415 |
) |
|
(107,265 |
) |
|
(15,618 |
) |
|
|
|
|
|
|
|
Weighted average
number of ordinary shares |
|
|
|
|
|
|
—Basic |
|
869,631,088 |
|
|
865,986,168 |
|
|
865,986,168 |
|
—Diluted |
|
869,631,088 |
|
|
907,404,032 |
|
|
907,404,032 |
|
Net (loss)/income per
ordinary share attributable to ordinary shareholders |
|
|
|
|
|
|
—Basic |
|
(0.01 |
) |
|
0.04 |
|
|
0.01 |
|
—Diluted |
|
(0.01 |
) |
|
0.04 |
|
|
0.01 |
|
Net (loss)/income per
ADS* attributable to ordinary shareholders |
|
|
|
|
|
|
—Basic |
|
(0.03 |
) |
|
0.08 |
|
|
0.01 |
|
—Diluted |
|
(0.03 |
) |
|
0.07 |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
* Each ADS represents two Class A ordinary shares.
(1) Include share-based compensation expenses as follows:
|
|
For the three months ended March 31, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
Cost of revenues |
|
7,719 |
|
10,610 |
|
1,545 |
Sales and marketing
expenses |
|
29,330 |
|
60,463 |
|
8,804 |
Research and development
expenses |
|
57,415 |
|
90,674 |
|
13,203 |
General and administrative
expenses |
|
38,762 |
|
50,544 |
|
7,360 |
|
|
133,226 |
|
212,291 |
|
30,912 |
|
|
|
|
|
|
|
KANZHUN LIMITED |
Unaudited Condensed Consolidated Balance
Sheets |
(All amounts in thousands) |
|
|
|
As of |
|
|
December 31,2022 |
|
March 31, 2023 |
|
|
RMB |
|
RMB |
|
US$ |
ASSETS |
|
|
|
|
|
|
Current
assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
9,751,824 |
|
|
6,254,572 |
|
|
910,736 |
|
Short-term investments |
|
3,458,089 |
|
|
7,201,542 |
|
|
1,048,626 |
|
Accounts receivable, net |
|
9,862 |
|
|
13,236 |
|
|
1,927 |
|
Amounts due from related parties |
|
5,714 |
|
|
11,167 |
|
|
1,626 |
|
Prepayments and other current assets |
|
600,773 |
|
|
476,080 |
|
|
69,323 |
|
Total current
assets |
|
13,826,262 |
|
|
13,956,597 |
|
|
2,032,238 |
|
Non-current
assets |
|
|
|
|
|
|
Property, equipment and software, net |
|
691,036 |
|
|
749,414 |
|
|
109,123 |
|
Intangible assets, net |
|
10,251 |
|
|
9,712 |
|
|
1,414 |
|
Goodwill |
|
5,690 |
|
|
5,690 |
|
|
829 |
|
Right-of-use assets, net |
|
289,628 |
|
|
279,463 |
|
|
40,693 |
|
Other non-current assets |
|
4,000 |
|
|
4,000 |
|
|
582 |
|
Total non-current
assets |
|
1,000,605 |
|
|
1,048,279 |
|
|
152,641 |
|
Total
assets |
|
14,826,867 |
|
|
15,004,876 |
|
|
2,184,879 |
|
LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
Current
liabilities |
|
|
|
|
|
|
Accounts payable |
|
185,297 |
|
|
108,925 |
|
|
15,861 |
|
Deferred revenue |
|
2,060,892 |
|
|
2,432,903 |
|
|
354,258 |
|
Other payables and accrued liabilities |
|
633,482 |
|
|
393,122 |
|
|
57,243 |
|
Operating lease liabilities, current |
|
151,438 |
|
|
150,458 |
|
|
21,908 |
|
Total current
liabilities |
|
3,031,109 |
|
|
3,085,408 |
|
|
449,270 |
|
Non-current
liabilities |
|
|
|
|
|
|
Operating lease liabilities, non-current |
|
143,591 |
|
|
124,963 |
|
|
18,196 |
|
Deferred tax liabilities |
|
11,404 |
|
|
27,099 |
|
|
3,946 |
|
Total non-current
liabilities |
|
154,995 |
|
|
152,062 |
|
|
22,142 |
|
Total
liabilities |
|
3,186,104 |
|
|
3,237,470 |
|
|
471,412 |
|
Shareholders’
equity |
|
|
|
|
|
|
Ordinary shares |
|
564 |
|
|
564 |
|
|
82 |
|
Treasury shares |
|
(918,894 |
) |
|
(918,892 |
) |
|
(133,801 |
) |
Additional paid-in capital |
|
15,450,389 |
|
|
15,684,295 |
|
|
2,283,810 |
|
Accumulated other comprehensive income |
|
695,184 |
|
|
555,256 |
|
|
80,852 |
|
Accumulated deficit |
|
(3,586,480 |
) |
|
(3,553,817 |
) |
|
(517,476 |
) |
Total shareholders’
equity |
|
11,640,763 |
|
|
11,767,406 |
|
|
1,713,467 |
|
Total liabilities and
shareholders’ equity |
|
14,826,867 |
|
|
15,004,876 |
|
|
2,184,879 |
|
|
|
|
|
|
|
|
|
|
|
KANZHUN LIMITED |
Unaudited Condensed Consolidated Statements of Cash
Flows |
(All amounts in thousands) |
|
|
For the three months ended March 31, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
Net cash provided by operating activities |
|
294,011 |
|
|
543,910 |
|
|
79,199 |
|
Net cash used in investing
activities |
|
(243,519 |
) |
|
(3,962,775 |
) |
|
(577,025 |
) |
Net cash provided by financing
activities |
|
9,104 |
|
|
45,789 |
|
|
6,667 |
|
Effect of exchange rate
changes on cash and cash equivalents |
|
(44,671 |
) |
|
(124,176 |
) |
|
(18,081 |
) |
Net
increase/(decrease) in cash and cash equivalents |
|
14,925 |
|
|
(3,497,252 |
) |
|
(509,240 |
) |
Cash and cash equivalents at
beginning of the period |
|
11,341,758 |
|
|
9,751,824 |
|
|
1,419,976 |
|
Cash and cash
equivalents at end of the period |
|
11,356,683 |
|
|
6,254,572 |
|
|
910,736 |
|
|
|
|
|
|
|
|
|
|
|
KANZHUN LIMITED |
Unaudited Reconciliation of GAAP and Non-GAAP
Results |
(All amounts in thousands, except for share and per share
data) |
|
|
|
For the three months ended March 31, |
|
|
2022 |
|
2023 |
|
|
RMB |
|
RMB |
|
US$ |
Revenues |
|
1,137,880 |
|
|
1,277,546 |
|
186,026 |
Add: Change in deferred
revenue |
|
153,640 |
|
|
372,011 |
|
54,169 |
Calculated cash
billings |
|
1,291,520 |
|
|
1,649,557 |
|
240,195 |
|
|
|
|
|
|
|
Net (loss)/income |
|
(12,172 |
) |
|
32,663 |
|
4,757 |
Add: Share-based compensation
expenses |
|
133,226 |
|
|
212,291 |
|
30,912 |
Adjusted net
income |
|
121,054 |
|
|
244,954 |
|
35,669 |
|
|
|
|
|
|
|
Net (loss)/income attributable
to ordinary shareholders |
|
(12,172 |
) |
|
32,663 |
|
4,757 |
Add: Share-based compensation
expenses |
|
133,226 |
|
|
212,291 |
|
30,912 |
Adjusted net income
attributable to ordinary shareholders |
|
121,054 |
|
|
244,954 |
|
35,669 |
Weighted average
number of ordinary shares (non-GAAP) |
|
|
|
|
|
|
—Basic |
|
869,631,088 |
|
|
865,986,168 |
|
865,986,168 |
—Diluted |
|
922,626,236 |
|
|
907,404,032 |
|
907,404,032 |
Adjusted net income
per ordinary share attributable to ordinary
shareholders |
|
|
|
|
|
|
—Basic |
|
0.14 |
|
|
0.28 |
|
0.04 |
—Diluted |
|
0.13 |
|
|
0.27 |
|
0.04 |
Adjusted net income
per ADS attributable to ordinary shareholders |
|
|
|
|
|
|
—Basic |
|
0.28 |
|
|
0.57 |
|
0.08 |
—Diluted |
|
0.26 |
|
|
0.54 |
|
0.08 |
|
|
|
|
|
|
|
|
Kanzhun (NASDAQ:BZ)
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Kanzhun (NASDAQ:BZ)
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From May 2023 to May 2024