Kanzhun Limited (NASDAQ:BZ) Q3 2022 Earnings Call Transcript

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Phil Yu Zhang: Okay. Thank you. So I’ll answer the paid enterprise customer question first. So the 3.73 million, that number was trailing 12 months paid enterprise customers. So that number reduced mainly because of in the second quarter, the COVID impact reduced our paid enterprise customers in that quarter. And starting from third quarter, we see quick recovery of quarter-over-quarter sequential paid enterprise customer growth. So — but because of this trailing 12 months, so it’s — the second quarter did have some impact to our — the total paid enterprise customers, the number. But if you look at the quarter-over-quarter, if you look at all the paid enterprise customer in third quarter versus the paid customer in the second quarter, we see a very quarter-on-quarter growth.

And in terms of the active enterprise customers, that number we see starting from like June-July and in we see gradual recovery. And compared with the second quarter, it’s a pretty good sign of business is booming. But starting from September because of the COVID measure, the COVID control measure, we see some like impact to the active enterprise customers’ number. And so the similar things with also business in the early fourth quarter of this year. In terms of the paying ratio, paying ratio is, I think, it’s quite stable in second quarter, in third quarter and even in October and November, overall, the paying ratio among the active enterprise customers is quite stable. And the ARPU is also very stable. So the impact is mainly with the total active enterprise customers which is highly related to the COVID control measure.

And in July and August, when the COVID measure is not that stringent, we see recovery. So we believe in the coming months, once the COVID is gone, we definitely will see a good come back for the active enterprise customers. So this is the first question. And regarding the blue-collar, I can offer you with some data. In terms of the users of blue-collar, at this moment in terms of the MAU, it accounts for roughly 30% of our total users. And in terms of the revenue contribution, blue-collar accounts for roughly like 26% of our in third quarter.

Jonathan Zhao: And on top of sponsors, I would like to submit some data. So for logistic industry, we have seen a 20% year-on-year growth in terms of cash billing. And for other service industry, a 28% year-on-year growth, while our total cash billing compared to last year only grew by 1%. So you can see a blue-collar sector has experienced a very fast increase. And we have quite good confidence that we will acquire additional 100 million new users in the upcoming 3 years which is double the current total user base. And I believe along 2/3 will be what we call traditional blue-collar workers, including logistics, including urban service and manufacturing and et cetera. And that’s all for my .

Phil Yu Zhang: And also, one more thing to mention is that we’ve resumed the user growth from the end of June and middle of the year normally is not the peak season for blue-collar to find jobs. Normally, season — seasonality wise it’s the spring in the — after the Spring Festival that is the peak season for the blue-collar to come out to find job. So in upcoming years, because of our currently we can grow our new users. So we expect that in the peak season of the Spring Festival, we can further grow our blue-collar segment users and customers.

Operator: Due to time constraint, that concludes today’s question-and-answer session. At this time, I will turn the conference back to Wen Bei for any additional or closing remarks.

Wen Bei Wang: Thank you once again for joining us today. If you have any further questions, please contact our IR team directly or TPG Investor Relations. Thank you.

Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect.

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