BEIJING, March 12, 2024 (GLOBE NEWSWIRE) — 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 fourth quarter and full year ended December 31, 2023.
Fourth Quarter and Full Year 2023 Highlights
Revenues for the fourth quarter of 2023 were RMB1,580.2 million (US$222.6 million), an increase of 46.0% from RMB1,082.3 million for the same quarter of 2022. Revenues for the full year of 2023 were RMB5,952.0 million (US$838.3 million), an increase of 31.9% from RMB4,511.1 million for the full year of 2022.Calculated cash billings1 for the fourth quarter of 2023 were RMB1,780.4 million (US$250.8 million), an increase of 61.2% from RMB1,104.5 million for the same quarter of 2022. Calculated cash billings for the full year of 2023 were RMB6,685.2 million (US$941.6 million), an increase of 44.9% from RMB4,613.4 million for the full year of 2022.Average monthly active users (MAU)2 for the fourth quarter of 2023 were 41.2 million, an increase of 33.3% from 30.9 million for the same quarter of 2022. MAU for the full year of 2023 were 42.3 million, an increase of 47.4% from 28.7 million for the full year of 2022.Total paid enterprise customers3 in the twelve months ended December 31, 2023 were 5.2 million, an increase of 44.4% from 3.6 million in the twelve months ended December 31, 2022.Net income for the fourth quarter of 2023 was RMB331.2 million (US$46.7 million), compared to net loss of RMB184.8 million for the same quarter of 2022. Adjusted net income4 for the fourth quarter of 2023 was RMB628.6 million (US$88.5 million), compared to RMB59.5 million for the same quarter of 2022. Net income for the full year of 2023 was RMB1,099.2 million (US$154.8 million), compared to RMB107.2 million for the full year of 2022. Adjusted net income for the full year of 2023 was RMB2,156.2 million (US$303.7 million), compared to RMB799.4 million for the full year of 2022.
Mr. Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer of the Company, commented, “In the past year, facing various external challenges, we resumed our strong growth in both user scale and revenues. Our better-than-expected financial performance was primarily driven by strong user growth, particularly penetration into blue-collar industries, lower-tier cities, and small and medium-sized enterprises. This is a testament of our continued investment in technology and in-depth exploration of various user demand, which helped us seize opportunities to further consolidate and enlarge our competitive advantages.”
Mr. Phil Yu Zhang, Chief Financial Officer, added, “We are pleased to deliver a solid year of strong financial performance. The full year calculated cash billings and revenues grew by 44.9% and 31.9% year-on-year respectively, contributed by strong user growth, as well as improved paying ratio with our annual paid enterprise customer number reached historical high of 5.2 million. Noteworthy, our adjusted operating margin improved to 27.5% while we still maintained fast user growth which continues to prove the effectiveness of our business model.”
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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 and adjusted basic and diluted net income 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.”
Fourth Quarter 2023 Financial Results
Revenues
Revenues were RMB1,580.2 million (US$222.6 million) for the fourth quarter of 2023, representing an increase of 46.0% from RMB1,082.3 million for the same quarter of 2022.
Revenues from online recruitment services to enterprise customers were RMB1,566.7 million (US$220.7 million) for the fourth quarter of 2023, representing an increase of 46.5% from RMB1,069.6 million for the same quarter of 2022. This increase was mainly driven by the user growth and increased user engagement.Revenues from other services, which mainly comprise paid value-added services offered to job seekers, were RMB13.5 million (US$1.9 million) for the fourth quarter of 2023, representing an increase of 7.1% from RMB12.6 million for the same quarter of 2022, mainly benefiting from expanded user base.
Operating cost and expenses
Total operating cost and expenses were RMB1,363.3 million (US$192.0 million) for the fourth quarter of 2023, representing a decrease of 4.4% from RMB1,426.1 million for the same quarter of 2022. Total share-based compensation expenses were RMB297.4 million (US$41.9 million) for the fourth quarter of 2023, representing an increase of 21.8% from RMB244.2 million for the same quarter of 2022.
Cost of revenues was RMB274.8 million (US$38.7 million) for the fourth quarter of 2023, representing an increase of 35.8% from RMB202.4 million for the same quarter of 2022, primarily due to increases in payment processing cost and server and bandwidth cost.Sales and marketing expenses were RMB433.5 million (US$61.1 million) for the fourth quarter of 2023, representing a decrease of 36.4% from RMB682.1 million for the same quarter of 2022, primarily due to higher advertising expenses incurred in the same period of 2022 for the market campaigns during the FIFA World Cup.Research and development expenses were RMB430.2 million (US$60.6 million) for the fourth quarter of 2023, representing an increase of 46.3% from RMB294.1 million for the same quarter of 2022, primarily due to increased employee-related expenses as well as increased investments in technology.General and administrative expenses were RMB224.8 million (US$31.7 million) for the fourth quarter of 2023, representing a decrease of 9.2% from RMB247.6 million for the same quarter of 2022. This decrease was primarily due to higher professional service fees incurred in the same period of 2022 for the dual primary listing on the Hong Kong Stock Exchange, partially offset by increased share-based compensation expenses.
Income/Loss from operations
Income from operations was RMB222.3 million (US$31.3 million) for the fourth quarter of 2023, compared to loss from operations of RMB340.5 million for the same quarter of 2022.
Net income/loss and adjusted net income
Net income was RMB331.2 million (US$46.7 million) for the fourth quarter of 2023, compared to net loss of RMB184.8 million for the same quarter of 2022.
Adjusted net income was RMB628.6 million (US$88.5 million) for the fourth quarter of 2023, compared to RMB59.5 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 fourth quarter of 2023 were RMB0.76 (US$0.11) and RMB0.73 (US$0.10), respectively, compared to basic and diluted net loss per ADS of RMB0.43 for the same quarter of 2022.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders4 for the fourth quarter of 2023 were RMB1.43 (US$0.20) and RMB1.39 (US$0.20), respectively, compared to adjusted basic and diluted net income per ADS of RMB0.14 and RMB0.13 for the same quarter of 2022.
Net cash provided by operating activities
Net cash provided by operating activities was RMB926.8 million (US$130.5 million) for the fourth quarter of 2023, compared to RMB155.5 million for the same quarter of 2022.
Cash position
Balance of cash and cash equivalents, time deposits and short-term investments was RMB12,909.6 million (US$1,818.3 million) as of December 31, 2023.
Full Year 2023 Financial Results
Revenues
Revenues were RMB5,952.0 million (US$838.3 million) for the full year of 2023, representing an increase of 31.9% from RMB4,511.1 million for the full year of 2022.
Revenues from online recruitment services to enterprise customers were RMB5,889.1 million (US$829.5 million) for the full year of 2023, representing an increase of 32.0% from RMB4,461.3 million for the full year of 2022. This increase was mainly driven by the user growth and increased user engagement.Revenues from other services, which mainly comprise paid value-added services offered to job seekers, were RMB62.9 million (US$8.9 million) for the full year of 2023, representing an increase of 26.3% from RMB49.8 million for the full year of 2022, mainly benefiting from expanded user base.
Operating cost and expenses
Total operating cost and expenses were RMB5,406.4 million (US$761.5 million) for the full year of 2023, representing an increase of 16.1% from RMB4,658.2 million for the full year of 2022. Total share-based compensation expenses were RMB1,057.0 million (US$148.9 million) for the full year of 2023, representing an increase of 52.7% from RMB692.2 million for the full year of 2022.
Cost of revenues was RMB1,059.9 million (US$149.3 million) for the full year of 2023, representing an increase of 40.4% from RMB754.9 million for the full year of 2022, primarily due to increases in server and bandwidth cost and payment processing cost.Sales and marketing expenses were RMB1,991.2 million (US$280.5 million) for the full year of 2023, relatively stable with that of RMB2,000.9 million for the full year of 2022. The decrease in advertising expenses in 2023, as a result of not having similar marketing campaigns like the FIFA World Cup sponsorship in 2022, was largely offset by an increase in employee-related expenses.Research and development expenses were RMB1,543.6 million (US$217.4 million) for the full year of 2023, representing an increase of 30.5% from RMB1,182.7 million for the full year of 2022, primarily due to increased employee-related expenses as well as increased investments in technology.General and administrative expenses were RMB811.8 million (US$114.3 million) for the full year of 2023, representing an increase of 12.8% from RMB719.7 million for the full year of 2022. This increase was primarily due to increased share-based compensation expenses, partially offset by decreased professional service fees.
Income/Loss from operations
Income from operations was RMB581.0 million (US$81.8 million) for the full year of 2023, compared to loss from operations of RMB129.5 million for the full year of 2022.
Net income and adjusted net income
Net income was RMB1,099.2 million (US$154.8 million) for the full year of 2023, compared to RMB107.2 million for the full year of 2022. Adjusted net income was RMB2,156.2 million (US$303.7 million) for the full year of 2023, compared to RMB799.4 million for the full year of 2022. This increase was primarily driven by enhanced operating efficiency and increased interest and investment income with the Company’s treasury management strategy.
Net income per ADS and adjusted net income per ADS
Basic and diluted net income per ADS attributable to ordinary shareholders for the full year of 2023 were RMB2.53 (US$0.36) and RMB2.44 (US$0.34), respectively, compared to basic and diluted net income per ADS of RMB0.25 and RMB0.24 for the full year of 2022.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders for the full year of 2023 were RMB4.96 (US$0.70) and RMB4.78 (US$0.67), respectively, compared to adjusted basic and diluted net income per ADS of RMB1.84 and RMB1.75 for the full year of 2022.
Net cash provided by operating activities
Net cash provided by operating activities was RMB3,047.0 million (US$429.2 million) for the full year of 2023, compared to RMB1,003.0 million for the full year of 2022.
Share Repurchase Program
In March 2024, the Company’s board of directors authorized a new share repurchase program effective from March 20, 2024 for a 12-month period, under which the Company may repurchase up to US$200 million of its shares (including in the form of ADSs).
Outlook
For the first quarter of 2024, the Company currently expects its total revenues to be between RMB1.64 billion and RMB1.67 billion, representing a year-on-year increase of 28.3% to 30.7%. This forecast reflects the Company’s current views on the market and operational conditions in China, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.
Conference Call Information
The Company will host a conference call at 8:00AM U.S. Eastern Time on Tuesday, March 12, 2024 (8:00PM Beijing Time on Tuesday, March 12, 2024) to discuss the financial results.
Participants are required to pre-register for the conference call at:
https://register.vevent.com/register/BI727e18c038514bbcadf1f22ec8a2c673
Upon registration, participants will receive an email containing participant dial-in numbers and unique personal PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.zhipin.com.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollar (“US$”) 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 RMB7.0999 to US$1.00 on December 29, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ 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, adjusted net income attributable to ordinary shareholders, adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders and adjusted basic and diluted net income 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 and adjusted net income 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 LIMITED
Investor Relations
Email: ir@kanzhun.com
PIACENTE FINANCIAL COMMUNICATIONS
Email: kanzhun@tpg-ir.com
KANZHUN LIMITED
Unaudited Condensed Consolidated Statements of Operations
(All amounts in thousands, except for share and per share data) For the three months ended
December 31,
For the year ended
December 31,
2022 2023
2022
2023
RMB RMB US$ RMB RMB US$Revenues Online recruitment services to enterprise customers 1,069,634 1,566,722 220,668 4,461,282 5,889,101 829,463 Others 12,641 13,509 1,903 49,780 62,927 8,863 Total revenues 1,082,275 1,580,231 222,571 4,511,062 5,952,028 838,326 Operating cost and expenses Cost of revenues(1) (202,395) (274,846) (38,711) (754,861) (1,059,861) (149,278)Sales and marketing expenses(1) (682,057) (433,454) (61,051) (2,000,900) (1,991,226) (280,458)Research and development expenses(1) (294,061) (430,164) (60,587) (1,182,716) (1,543,568) (217,407)General and administrative expenses(1) (247,600) (224,787) (31,661) (719,699) (811,787) (114,338)Total operating cost and expenses (1,426,113) (1,363,251) (192,010) (4,658,176) (5,406,442) (761,481)Other operating income, net 3,350 5,272 743 17,595 35,385 4,984 (Loss)/Income from operations (340,488) 222,252 31,304 (129,519) 580,971 81,829 Interest and investment income, net 117,357 163,409 23,016 226,482 606,757 85,460 Foreign exchange (loss)/gain (1,509) (1,203) (169) 8,627 1,088 153 Other income/(expenses), net 7,724 (4,000) (563) 11,406 32,973 4,644 (Loss)/Income before income tax expenses (216,916) 380,458 53,588 116,996 1,221,789 172,086 Income tax benefit/(expenses) 32,123 (49,217) (6,932) (9,751) (122,571) (17,264)Net (loss)/income (184,793) 331,241 46,656 107,245 1,099,218 154,822 Net loss attributable to non-controlling interests – 9 1 – 9 1 Net (loss)/income attributable to ordinary shareholders of KANZHUN LIMITED (184,793) 331,250 46,657 107,245 1,099,227 154,823 Weighted average number of ordinary shares used in computing net (loss)/income per share —Basic 864,609,263 876,231,301 876,231,301 868,941,151 870,304,878 870,304,878 —Diluted 864,609,263 903,709,325 903,709,325 912,141,991 902,735,995 902,735,995 Net (loss)/income per ordinary share attributable to ordinary shareholders —Basic (0.21) 0.38 0.05 0.12 1.26 0.18 —Diluted (0.21) 0.37 0.05 0.12 1.22 0.17 Net (loss)/income per ADS(2) attributable to ordinary shareholders —Basic (0.43) 0.76 0.11 0.25 2.53 0.36 —Diluted (0.43) 0.73 0.10 0.24 2.44 0.34
(1) Include share-based compensation expenses as follows:
For the three months ended
December 31,
For the year ended
December 31,
2022 2023
2022 2023 RMB RMB US$ RMB RMB US$Cost of revenues 14,383 11,417 1,608 39,587 46,395 6,535Sales and marketing expenses 63,753 69,836 9,836 170,366 262,431 36,963Research and development expenses 99,378 113,832 16,033 284,323 418,769 58,982General and administrative expenses 66,729 102,321 14,412 197,928 329,372 46,391 244,243 297,406 41,889 692,204 1,056,967 148,871
(2) Each ADS represents two Class A ordinary shares.
KANZHUN LIMITED
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands) As of December 31, 2022 2023 RMB RMB US$ASSETS Current assets Cash and cash equivalents 9,751,824 2,472,959 348,309Time deposits 793,042 6,922,803 975,056Short-term investments 2,665,047 3,513,885 494,920Accounts receivable, net 9,862 16,727 2,356Amounts due from related parties 5,714 3,966 559Prepayments and other current assets 600,773 442,697 62,353Total current assets 13,826,262 13,373,037 1,883,553Non-current assets Property, equipment and software, net 691,036 1,793,488 252,607Intangible assets, net 10,251 8,093 1,140Goodwill 5,690 5,690 801Right-of-use assets, net 289,628 282,612 39,805Long-term investments – 2,473,128 348,333Other non-current assets 4,000 4,000 563Total non-current assets 1,000,605 4,567,011 643,249Total assets 14,826,867 17,940,048 2,526,802LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities Accounts payable 185,297 629,216 88,623Deferred revenue 2,060,892 2,794,075 393,537Other payables and accrued liabilities 633,482 779,046 109,726Operating lease liabilities, current 151,438 155,014 21,833Total current liabilities 3,031,109 4,357,351 613,719Non-current liabilities Operating lease liabilities, non-current 143,591 125,079 17,617Deferred tax liabilities 11,404 28,425 4,004Total non-current liabilities 154,995 153,504 21,621Total liabilities 3,186,104 4,510,855 635,340Total shareholders’ equity 11,640,763 13,429,193 1,891,462Total liabilities and shareholders’ equity 14,826,867 17,940,048 2,526,802
KANZHUN LIMITED
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands) For the three months ended
December 31, For the year ended
December 31, 2022 2023
2022 2023
RMB RMB US$ RMB RMB US$Net cash provided by operating activities 155,543 926,837 130,542 1,003,042 3,047,009 429,162 Net cash used in investing activities (725,495) (489,496) (68,944) (2,816,581) (9,938,645) (1,399,829)Net cash used in financing activities (627,954) (442,151) (62,276) (669,232) (417,022) (58,736)Effect of exchange rate changes on cash and cash equivalents (209,026) 33,149 4,669 892,837 29,793 4,196 Net (decrease)/increase in cash and cash equivalents (1,406,932) 28,339 3,991 (1,589,934) (7,278,865) (1,025,207)Cash and cash equivalents at beginning of the period 11,158,756 2,444,620 344,318 11,341,758 9,751,824 1,373,516 Cash and cash equivalents at end of the period 9,751,824 2,472,959 348,309 9,751,824 2,472,959 348,309
KANZHUN LIMITED
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share data) For the three months ended
December 31, For the year ended
December 31, 2022 2023 2022 2023 RMB RMB US$ RMB RMB US$Revenues 1,082,275 1,580,231 222,571 4,511,062 5,952,028 838,326Add: Change in deferred revenue 22,223 200,169 28,193 102,322 733,183 103,267Calculated cash billings 1,104,498 1,780,400 250,764 4,613,384 6,685,211 941,593 Net (loss)/income (184,793) 331,241 46,656 107,245 1,099,218 154,822Add: Share-based compensation expenses 244,243 297,406 41,889 692,204 1,056,967 148,871Adjusted net income 59,450 628,647 88,545 799,449 2,156,185 303,693 Net (loss)/income attributable to ordinary shareholders of KANZHUN LIMITED (184,793) 331,250 46,657 107,245 1,099,227 154,823Add: Share-based compensation expenses 244,243 297,406 41,889 692,204 1,056,967 148,871Adjusted net income attributable to ordinary shareholders of KANZHUN LIMITED 59,450 628,656 88,546 799,449 2,156,194 303,694Weighted average number of ordinary shares used in computing adjusted net income per share (Non-GAAP) —Basic 864,609,263 876,231,301 876,231,301 868,941,151 870,304,878 870,304,878—Diluted 897,830,249 903,709,325 903,709,325 912,141,991 902,735,995 902,735,995Adjusted net income per ordinary share attributable to ordinary shareholders —Basic 0.07 0.72 0.10 0.92 2.48 0.35—Diluted 0.07 0.70 0.10 0.88 2.39 0.34Adjusted net income per ADS attributable to ordinary shareholders —Basic 0.14 1.43 0.20 1.84 4.96 0.70—Diluted 0.13 1.39 0.20 1.75 4.78 0.67