Kanzhun Limited Q3 FY2025 earnings call

• Revenue growth: Total revenue in Q3 was RMB 2,160,000,000, up 13.2% y/y. Adjusted operating profit grew 949.3% y/y. GAAP net profit up 67.2% y/y with 35.8% margin. • User growth: From Jan-Oct, over 40,000,000 newly verified users acquired. Q3 average verified MAU reached 63.82 million, DAU to MAU ratio high. • Enterprise-side demand: Newly posted job positions up 25% y/y. Paid enterprise customers in twelve months grew 13.3% y/y to 8.68 million. • AI integration: AI job search assistant fully launched for job seekers, with increased user interactions. AI products for recruiters rolled out, improving matching accuracy.

In the third quarter, blue-collar revenue growth continued to lead, with its revenue contribution reaching a record high. Manufacturing industries remained the most robust sector, topping industry revenue growth for five consecutive quarters. White-collar sectors such as artificial intelligence, Internet service, lifestyle service, new retail, and gaming are experiencing leading growth. Tier 1 cities rebounded, Tier 2 cities remained stable, and revenue contribution from Tier 3 and below cities continued to rise. Among enterprises of different sizes, medium-large enterprises (500-999 employees) grew the fastest, followed by small and micro enterprises, then very large enterprises. Total revenue for the third quarter was RMB 2,160,000,000, up 13.2% year on year. Adjusted operating profit grew 949.3% year on year. GAAP net profit was RMB 2,718,000,000, up 67.2% year on year with a net profit margin of 35.8%.

• For 2025, total revenue expected to continue growth momentum, reaching between RMB 2,050,000,000 and RMB 2,070,000,000, up 12.4% to 13.5% year on year.

• Today's discussion may contain forward-looking statements which involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different. The company cautions not to place undue reliance on forward-looking statements.

Q: What is the overall recruitment demand recently? Do you think the improving unemployment rate is due to seasonal factors or a leading indicator of macro recovery? What are the driving factors behind the accelerating growth in the third quarter? What is the key account renewal willingness right now?

A: From data, enterprise recruitment activities recovered in Q3. Growth rate of enterprise-side MAU faster than job seekers. Fresh graduate job-seeking demand declined double digits y/y, while enterprise job postings for fresh graduates increased double digits y/y. Contract renewal rates improved, with company-level net dollar retention rate bottoming up in Q3.

Q: How much more share can we continue to gain over peers and how to sustain above-peers growth? What about margin trend next year and investment plan?

A: Majority of paid enterprise customers are small and micro enterprises, with ample room to grow. Profit margin is a strategic selection. Next year, pursuit of serving users and revenue growth has higher priority than sacrificing branding for profitability.

Q: Could management share more progress on exploring verticals in recruitment industry? What's the view on competitive landscape with AI companies entering recruitment?

A: Actively exploring new services in blue-collar and white-collar recruitment but cautiously. Some leading tech companies entering recruitment may bring revolution, but key bottleneck not computing power but high-quality data.