Q3 2022 Kanzhun Ltd Earnings Call
The conference will begin shortly.
Raise your hand during Q&A, you can dial star one one.
Speaker 2: The conference will begin shortly. To raise your hand during Q&A, you can dial star 11. Ladies and gentlemen, thank you for standing by and welcome to the Kunzhan Limited third quarter 2022 Financial Results Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded.
[music].
Okay.
Ladies and gentlemen, thank you for standing by and welcome to the Convention Ltd third quarter 2022 financial results conference call.
At this time, all participants are in listen I need might after the speaker's presentation, there will be a Q&A session.
Today's conference is being recorded at this time I would like to turn the conference that you missed.
MS Wendy Huang head of Investor Relations. Please go ahead ma'am.
Speaker 2: At this time I would like to turn the conference over to Ms Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.
Thank you operator.
Good evening and morning, everyone welcome to our second quarter compete on day two earnings conference call.
Speaker 3: Thank you operator. Good evening and good morning everyone. Welcome to our third quarter 2022 earnings conference call.
Joining me today.
Our chairman and CEO , Mr. Jonathan Shaw.
I want to walk through it understand it just you know John .
Speaker 3: Joining me today are our founder, chairman, and CEO , Mr. Jonathan Peng-Chao, and our director and the CFO , Mr. Phil Yu-Chang.
Before we start we would like to remind you that today's discussion may contain forward looking forward looking statements, which are based on management's current expectations and observations that you won't mind, although risks uncertainties and other factors not under the company's control, which may cause actual results performance or achievements.
Speaker 3: Before we start, we would like to remind you that today's discussion may contain for one look at overlooking statements which are based on management's current expectations and observations that involve known and unknown risks, uncertainties and other factors may not under the company's control which may cause actual results, performance or achievements of the company to be materially different.
The company to be materially different.
The company cautions you not to place undue reliance on forward looking statements and does not undertake any obligation to update this forward looking information except as required by laws.
Speaker 3: The counseling culture will not replace undue reliance on forward-looking payments and do not undertake any obligation to update this forward-looking information, except as required by law.
During today's call management will also discuss certain non-GAAP financial measures for comparison purpose, only well that niche of non-GAAP financial measures and a reconciliation of GAAP to non-GAAP financial results. Please see the earnings release issued earlier today.
Speaker 3: During today's call, management will also discuss certain non-dive financial measures for comparison purposes only. For a definition of non-dive financial measures and a reconciliation of gap to non-dive financial results, please see the earnings release issued earlier today.
In addition, a webcast replay of this conference call will be available on our website.
Speaker 3: In addition, a webcast replay of this conference call will be available on our website at ir.jipin.com.
Bunch of people come.
With that I will now turn the call to Jonathan our founder Chairman and CEO .
Speaker 3: With that, I will now turn the call to Jonathan, our founder, chairman, and CEO .
Yeah.
Yeah.
Ladies and gentlemen.
Speaker 4: studied here and did a lot at and studied here and did a lot at it was wonderful to see you-all equation it was great to see you-all equation it was wonderful to see you-all equation and thank you very, very much. thank you very, very much. machines. 26 33 33 85
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Jose Garcia.
Hello, everyone welcome to our subcontract 2022 earnings conference call on behalf of the company and our.
Speaker 3: Hello everyone, welcome to our 3rd quarter 2022 earnings conference call. On behalf of the company and our employees, I would like to express our sincere gratitude to our users, investors and friends for your ongoing trust and support.
All of our employees I would like to express our sincere gratitude to our users electric and.
Well your ongoing trust and support.
Yes, yes, yes sure.
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So the issue there.
Speaker 4: Thank you for your attention.
Finally as Shanghai.
Speaker 4: Thank you for your attention.
Neil.
But first I'd like to share with you almost for the third quarter in this quarter. We recorded GAAP revenue of RMB 118 billion, we used a quote unquote showed growth of 6%.
Speaker 4: One day, I did it once and I saw you.
Speaker 3: First, I would like to share with you our performance for the third quarter.
Speaker 3: In this quarter, we recorded gap revenue of RMB 1.18 billion with a quarter-on-quarter growth of 6%.
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Speaker 4: Jim is Tan she, ning. So guang shaa, and see fang be shanganma ad indjurorash gilin.
Oh, well calculated attached buildings reached RMB at 1.24 billion, a sequential increase of 26, 4%.
Speaker 3: Our calculated cash billions reached RMB 1.24 billion, a sequential increase of 26.4%.
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Sure.
Speaker 4: Thank you for watching.
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Speaker 4: So quite all
San Diego called Hugel, Cherokee DFM dual Jamie.
Speaker 4: Be aware of all these incidents that have been surprise and
<unk> children for the junior Sundance Cte.
Speaker 4: Thank you for your attention.
On the Shandong and Jiangsu.
Speaker 4: Thank you for your attention.
Danny features from our you have to go on with competition and continuous improvement in marketing efficiency.
Speaker 3: Benefiting from our enhanced brand recognition and continuous improvement in marketing efficiency, we maintain the rapid growth in our user base while further improving our profit margin to attain a solid level. Our adjusted net income for the third quarter, which excludes share based on compensation expenses, achieved a quarter on quarter growth of 55%.
They tend to watch a growth in our user base, well certainly improving our profit margin to obtain a funny one.
Adjusted net income for the southern contract, which excludes shampoo.
<unk> achieved a quarter on quarter growth.
Two 5%, reaching RMB 300, that's interested in media.
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Speaker 3: reaching RMB 377 meters.
Cool good launch tissue classes and job.
Julia Central Hall <unk>.
Speaker 4: Thank you very much.
It seems that a larger pool.
Got it.
Speaker 4: Thank you for your attention.
In this quarter, our user base has been increasing actually as of September 30, the newly married Baidu search achieved 14 million.
Speaker 3: In this quarter, our user base has been increasing rapidly. As of September 30, the newly verified users achieved 14 million.
Uh huh.
Well I'm sorry of course, there you go.
Speaker 5: Thank you.
Speaker 6: hosts can support.
Consider it.
Speaker 4: A..
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Speaker 4: This is another virtual world-sky using the mobile phone system that does its most important work. talking to you.
Sure Doug.
Just how are you going to unleash a choppy job.
Well, if I didn't know if there is a major and we pay more attention to our daily operation, referring to job seekers, who posted at least one job expectation well enterprise users, we posted at least one job position.
Speaker 3: Verified users is a measure we pay more attention to in our daily operations, referring to job seekers who posted at least one job expectation or enterprise users who posted at least one job position.
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But theyre good homework digital audio short haul.
Speaker 4: Thank you for your attention.
So the key to that.
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I'll tell you what I've asked you about that later.
Speaker 4: Jai Gurudev!
Compare that we accumulated more than 8 million newly modified that use our August Chi, which we discussed during our last earnings call.
Speaker 4: Support our Heil
Speaker 3: Compared with the accumulated more than 8 million newly verified users as of August 15, which we discussed in our last earnings call.
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Speaker 4: Alright. their follow-up link.
Oh, sorry.
Thank you Luke.
Walk in more suicides opex desire to see the leisure shingle.
Speaker 4: Thank you for your attention.
And then we continued our user growth and sustainable, but we think it's cort.
Speaker 3: And then we continued our user growth at Sustainable and in the back formation within this quarter.
Average and maybe for this quarter reached 22 24 million tons record hot.
Speaker 3: Our average MAU for this quarter reached 32.4 million feet at record highs.
Convenient low cost to put our CTO mckee for local food and Amit.
Speaker 4: Thank you for your attention.
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Currency therefore.
Speaker 4: Thank you for your attention.
The company's efforts on constantly improving this technology and there's always a capability in the past year.
Speaker 6: All right.
Speaker 3: The company's efforts on constantly improving its technology and user service capability in the past year have started to bear fruit. Let's take a look at some numbers.
To bear fruit lets take a look couple of members.
Sometimes you will notice on the chart.
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Speaker 4: You could have seen her some truna shego go to suusu nural fishing the to the to be sound down trouble by an parture.
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First the average months a number of successful mutual communication between Jobseekers on enterprise users have had to walk a heightened culture.
Speaker 4: Thank you for your attention.
Speaker 3: First, the average monthly number of successful mutual communication between job seekers and enterprise users has hit a record high in this quarter, representing a more than 20% year-on-year growth rate, and our MAU grew by 2012.5% year-on-year.
Our more than two 2% year on year Gold Street, and our amazing grew by 12, 5% year on year.
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Speaker 4: Oh my god, it's Jia Yu- believed to be a company of a company that is only ENECHEll homes
Oh, the day, you too Emil ratio remained stable.
Sure sure.
Speaker 3: The DAU2-MUL ratio remains stable.
What does it show digital Harsha jogging jobs, how the team has done a lot of engineers.
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Another number is that each individual users achievement, either our job seeker or enterprise user is a steady growth.
Speaker 3: Another number is that each individual user's achievement, either a job seeker or an enterprise user, experienced a steady growth.
So Keith I'll ask for the San Diego, Yes.
Understood.
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Total tons out so you could send us samples.
For the quarter.
Overall my impression for the third quarter is that we still have a reboot in both user and they run would go.
Speaker 3: Overall, my impression for the third quarter is that we experienced a reboot in both users and the running group.
Yoga two auto useful.
There are two key factors.
Speaker 4: You under our use
You will see some good signs you shouldn't be argued too.
Speaker 3: There are two key factors.
She also initiated should each user.
Speaker 4: Even So jungers's, you know, shall we hard to do? uh should those sho, sure should I each, in the use of joho, a qu fooded.
Paul.
Got it.
On one hand compared to the second quarter mainland cities started to recover from the Covid impact.
Speaker 3: On one hand, compared to the second quarter, many cities started to recover from the COVID impact.
How are you going to introduce you will notice is home.
To.
First of all please from Jim Sheehan will hold up.
Speaker 4: Please consider the subscription assistant.
And then other factories that weekend started too.
Speaker 6: will Yes.
Speaker 4: as I have now shown you are traveled from different cities.
But by the end of June .
Speaker 3: And another factor is that we can study to acquire new users by end of June .
Well, it's only on those figures.
Uh huh.
Hardly at all changed.
Speaker 4: Thank you.
And yet you guys should answer the Shenzhen, So Columbia argue to Shandong toggle button Asheville.
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There are two data then we can look back in the concept of a reboot firstly, our calculated cash building achieved $26 four increased compared to the second contract.
Speaker 3: There are two data that we can look at in the concept of a reboot. First one is our calculated cash buildings achieved 26.4% increase compared to the second contract.
I'll tell you there is a.
I know you told about 90 to one be.
Speaker 4: I'll tell you, I just...
Speaker 1: Thank you.
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Speaker 4: wholesome So happy flat Cage
No matter how is our average in the third quarter recorded a sequential growth of over 20%.
Speaker 4: See you next time,B Presents
Speaker 3: And the next data is our average MME in the third quarter, recorded as sequential growth of over 20%.
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The performance of Blue collar, and Coca Cola users with more gratifying.
Speaker 4: Yes, please do.
Speaker 4: So, thank you very much.
It all for years are suddenly do the singing solo.
Speaker 3: The performance of blue-collar and gold-collar users was more gratifying.
Toby Turndown total abandon Josh Bob.
Speaker 4: You're being watched by this one,
The revenue and service industry.
Speaker 4: Pongbí zhìng zhào chóguo le bám n? zhì a shìbá.
The cash building up the other sort of industry for the French contract recorded at 28% of younger vehicles.
Speaker 3: The revenue of urban service industry...
Speaker 3: Sorry, the cash bidding of the urban service industry for the third quarter recorded a 28% year-on-year growth.
Our gymnasium for the whole outside of San Diego, the Tianjin for home depot.
This past year.
Speaker 4: Thank you for your attention.
The average day you go call on Walker for this quarter also increased by approximately 40% year over year.
Speaker 3: And the average DAU of our Gold-Cola workers for this quarter also increased by approximately 30% year-over-year.
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Killing other tissue.
Speaker 4: Theprefer than
The city operation has always been the most essential cornerstone driving down just under one.
Speaker 3: The safety operation has always been the most essential concept of driving the sustainable development of our company.
Of our company.
San Diego.
Sandler O'neill.
Jean Jacques.
Sure.
Speaker 4: Thank you for your attention.
Right.
In the third quarter, we continued to improve our SMT capabilities in three assets.
Speaker 4: Thank you very much.
Speaker 3: In the third quarter, we continue to improve our safety capabilities in three aspects.
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Speaker 4: a good and fun party!
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Seven seats installed.
Speaker 4: Thank you for your attention.
The first of which is technical technicals encourage you in September we were awarded by the China Academy of information and communication technology. The first data security management capabilities certification in the online recruitment.
Speaker 3: The first of which is technical security. In September , we were awarded by the China Academy of Information and Communication Technology, the first data security management capability certification in the online equipment industry.
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Speaker 3: and the system needs to use those securities.
It's an infection to accumulated more than 500 companies.
Speaker 3: As of October 31, our verification team has finished a few visits and inspections to accumulate more than 500,000 copies.
Our highly versus $30 or such as Eugene Lee and Joanne chip.
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And the third one is about the accretion not encourage you resubmitted due primarily to an application.
Speaker 4: uh che all her home Su to B should trumble changing the one being Shake.
Speaker 3: And the third one is about the operational security. We submitted a new primary listing application in Hong Kong in early October , planning to ensure the stability of the capital market conditions.
He already October aiming to ensure the stability of the type of market conditions.
Johan <unk> Ahmad.
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Speaker 4: We'll come to
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For the last quarter up to now.
Speaker 4: W carved in the Brian
Since the beginning of September the resurgence of COVID-19 has naturally impacted our business and slowdown enterprise recruitment demand.
Speaker 3: For the last quarter up to now, since the beginning of September , the resurgence of COVID-19 has negatively impacted our business and slowed down enterprise recruitment demand.
She along with the Sierra club you done each meetings out yet.
Speaker 4: Thank you for your attention.
But what she had a dozen Sheila if you look at niche agricultural.
However, we have observed that recruiting activity pizza enterprises will recover quickly once the.
Speaker 4: Thank you very much.
Speaker 3: However, we have observed that recruiting activities of enterprises will recover quickly once the resurgence is effectively controlled, evidenced by our experience in July and August .
It's actually come Trump evidenced by our experience in July and August .
But when we have carved out each geography in Kampala G.
We have also seen some opportunities.
Speaker 4: And these carriage
Alright, such as industry undergoes structural changes.
Speaker 3: We have also seen some opportunities such as industry undergo structural changes.
It all is usually Q4 sure shoot on widow, who are our CFO timetable.
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Central to our triangle Jorge.
Sure Zafar Khan huge disposal.
Well, its uncle Internet and network related positions.
Technology product design and operations have become infrastructure is driving digital transformation for traditional industries.
Speaker 3: For example, internet and network-related positions, including technology, product, design, and operations, have become infrastructural roles in driving digital transformation for traditional industries.
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She could go up a lot here.
Well, we said on the call down all year.
Speaker 4: This guy ages addition or downgrade.
So that will change soon.
So we are starting to pop Colombia, Chile, some got trouble about this issue.
Speaker 4: With that Godi decide on your gondola, so thank you Really?heart Is she
Yeah, Hi, and my Name's Doctor industries, such as new energy automobile.
Many conductors have been going flat.
Speaker 3: The high-end manufacturing industries such as new energy, automobiles, and semiconductors have been growing fast.
Uh huh.
Cheap.
Have a good position in September .
By more than 40% year over year.
Speaker 3: And the active job positions in September increased by more than 40% year over year.
So you've seen a bunch of pudong, Telemundo a posture to indulge other yield more ship.
Speaker 4: So ry, you seemed by your Tan. See the bohoom, that woman. Do you passst your me gaou the your moisture?
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Chunky some that ran for one season.
Despite the short term turbulence, we are still quite confident in our long term growth.
Speaker 4: I hope to see you in the next video.
Speaker 3: Despite the short-term turbulence, we are still quite confident in our long-term growth supported by our high-efficient business model.
Despite our high efficiency mono.
Okay.
Familiar names.
Orlando more cereal and Delta.
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Speaker 4: Good morning, sir.
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The cost of liking. The fact that our model is extremely efficient in the areas of job hunting and recruitment and is suitable for people in different regions and industries.
Speaker 4: His June 19th WooSept. version shows that the only time to take care of the
Speaker 3: The core strength lies in the fact that our model is extremely efficient in the areas of job hunting and recruitment and is suitable for people in different regions and industries.
Our surveys continue to grow in first tier cities and the mom white collar workers. There is still huge growth potential in lower tier cities and with blue collar users.
Speaker 3: While our surveys continue to grow in first-tier cities and among white-collar workers, there is still huge growth potential in lower-tier cities and with blue-collar users.
Well, let's see are there.
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Speaker 4: You are soheads up!
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Bundled the adult program in Guangdong John .
Sure Yes.
Speaker 4: Thank you.
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Caught up and stood up Shanghai into lead.
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Speaker 4: Go h Tob Honor team John that means you as well
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Sounds like we have no official Asia Pacific, leading smartphone the teenagers into Qatar would cost.
Speaker 3: We have sponsored, we are the official Asia Pacific region smart set of the 22-bit JUCA-TAR One World cup!
We can further and they said to me extend our brand awareness through these high profile and widely covered.
Speaker 3: We can further and effectively expand our brand awareness through this high profile and widely covered event, especially among those blue collar and lower chia cities.
Especially among those blue color on the lower tier cities.
So you just hit on Downhole, Canada, you'll bottomed out sort of women you know when the law says.
He found out there so.
Speaker 4: If you like this video, please give a thumbs up and subscribe to our channel.
Shouldn't lead.
Speaker 4: Pray that during the fight it will beIf you answer it will change your life.
Women, who had Cuba from telco and mortality.
So good balance in the.
Speaker 4: We'll see you next time.
Gingerly.
Speaker 4: This your clear jual conanutan ch the K ING on the youagum had.
Or is that kind of historical periods.
Our goal is always the primary driver for our business long term and sustainable.
Speaker 3: For a certain historical period, user growth is always the primary driver for our business long term and sustainable development.
Our platform has a little bump scaling effect.
More accurate matching receive a larger population.
Speaker 3: Our platform has a robust scale effect and can support more accurate matching within a larger population.
Well Tien concern around four years.
This will come down the funnel agenda Saturday last time, there were minimal belch it.
Speaker 4: Mo champong soono ianam choo Yong khoo ki roum jama you IL financial an travel asexthanna and about the number ground shoir.
So that's what she Eaton Corp.
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Speaker 4: Thank you for your attention.
We are still under stage of focusing on achieving rapid user growth.
Speaker 4: Thank you for your attention.
We expect to obtain at least an additional 100 million users over the next three years, we're quite confident of this and believe that it won't be the most effective driver our business development.
Speaker 3: We are still at the stage of focusing on achieving rapid user growth.
Speaker 3: We expect to obtain at least an additional 100 million users in the next three years. We are quite confident of this and believe that it will be the most effective driver for our business development.
That's your EBIT. This year you call Tony you called coupon E call cause your tissue chief volume pool finish it puts injectable cheap.
Speaker 4: Thank you for watching.
Speaker 4: Thank you for your attention.
There are always cycles EBIT economy. However, there are no known Frank Orsini, our enterprise efforts to service the customer with sincerity and agility that really defined on technology.
Speaker 4: financial person that told you
Speaker 3: There are always cycles in the economy. However, there are no cycles in an enterprise effort to service their customers with sincerity and agility, rather it is science and technology.
But you are close to hold too much from year two for sure.
Sure.
Speaker 4: But you already know how to generate a bit of action.
Sure.
So it sounds it along with the John Paul can hold me at <unk> Com the agenda, that's what helps you.
Speaker 4: Thank you for your attention.
So that's why it's always stay true to our core values and aspiration.
Speaker 3: Success rests on always staying true to our core values and original aspirations. Doing the right thing in group space at all times is what we have been doing. We have done like this in the third quarter and we'll keep doing so moving forward.
Right.
At all times.
We have been doing we have done like this in the third quarter and we will keep doing so moving forward.
Our job is all I had.
The warm enough sample field without yourselves that's housing partnership.
Speaker 4: uh what the womanment do you joug? Just are like ch woman. The sample field with done case of the H oching conscies.
I'll now turn to our CFO .
I'm not sure. Thank you.
Speaker 3: I will turn to our CFA for the review of our financials. Thank you. Thank you.
Thanks, Jonathan Hello, everyone. Thank you for joining our earnings call today before I begin. Please note that all along.
Speaker 7: Thanks Jonathan. Hello everyone. Thank you for joining our talk today. Before I begin, please note that all amounts are in RMB and all comparisons are on a year-on-year basis and otherwise dated.
In RMB and all comparisons are on a year.
Year on year basis.
Otherwise stated.
In this quarter, our business has begun to recover backed by our strong user growth in the third quarter.
Speaker 7: In this quarter, our business began to recover backed by a strong user growth in the third quarter.
Our calculated billings.
Call it a faster rebound with over 26% sequential growth to RMB 144 billion.
Speaker 7: Our calculated cash billions recorded a fast rebound with over 26% sequential growth to RMB 1.24 billion.
Our total revenues being dragged down by the impacted performance in the previous quarters due to new user registration suspension on the Covid resurgence in second quarter recorded.
Speaker 7: Our total revenues being dragged down by the impacted performance in the previous quarters due to new user registration suspension and COVID resurgence in second quarter recorded 6% quarter growth to RMB 1.18 billion.
6% a year over year six.
6% quarter over quarter growth to RMB one.
18 billion.
The number of total paid enterprise.
Enterprise customers in trailing 12 months ended September 30 slightly decreased to 3.7.
Speaker 7: The number of total paid enterprise customers in 12 months ended 30 September slightly decreased to 3.73 million, down 1% from 3.77 million of June 30, 2018.
73 million.
1% from $3 $77 million of June 30.
Quarterly wise, the number of total paid and across customers in the third quarter increased by 15% one five.
Speaker 7: But quarterly wise, the number of total paid enterprise customers in the third quarter increased by 15% month-by-month compared to the second quarter.
Compared to the second quarter.
Mainly due to the increase in small side.
Driven by our enterprise user growth and the relative mild recovery macro conditions.
Speaker 7: mainly due to the increase in small-sized accounts driven by our active enterprise users' growth in the relative mild of recovering macro conditions.
Revenues from small size account.
<unk> also contributed a higher sequential recovery compared to other accounts.
Speaker 7: Revenues from small size accounts also contributed a higher sequential recovery compared to other accounts.
Which proved that this <unk> segment of business customers last week, particularly specialized in.
Speaker 7: which proves that this SME segment of business customers that we particularly specialized in are more resilient in the economy.
A more resilience in the economy.
And our customer base mix of with various sized companies, including both large.
Speaker 7: And our customer base, mixed with various size companies, including both large accounts and small-medium sized accounts, are in a much balanced and healthy structure.
And the small medium sized accounts.
<unk> is a much balanced and healthy structure.
It should help us absorb more impact when facing economic downturn.
Speaker 7: It should help us absorb more impact when facing economic downturns and it can also let us benefit more and faster from the recovery of a macro environment.
Also let up benefiting more and faster from the recovery of our macro environment.
Moving on to the cost side.
Total operating costs and expenses for the third quarter increased by 16% year over year to RMB, one 4 billion.
Speaker 7: Moving on to the cost side.
Speaker 7: Total operating costs and expenses for the third quarter increased by 16% year-over-year to RMB 1.04 billion.
Excluding share based compensation total operating costs and expenses increased by 9% year over year to RMB $879 million in the quarter.
Speaker 7: excluding share-based compensation, total operating costs and expenses increased by 9% year-over-year to RMB 879 million in the quarter.
Cost of revenues increased by 30% year over year to RMB $201 million.
Speaker 7: Cost of revenues increased by 30% B over year to RMB 201 million.
Primarily driven by increase of silver and bandwidth costs.
In accordance with growing the user traffic and increased employee related expenses as we continue to strengthen our security related personnel.
Speaker 7: primarily driven by increased server and bandwidth costs.
Speaker 7: in accordance with growing user traffic and increased employee-related expenses as we continue to strengthen our security-related personnel.
Sales and marketing expenses decreased by 5% year over year to RMB 397 million, mainly due to decrease in.
Speaker 7: Sales and marketing expenses decreased by 5% year over year to RMB 397 million, mainly due to decrease in marketing expenses.
In marketing expenses.
As a result of our improved brand recognition and marketing efficiency.
Speaker 7: as a result of our improved brand recognition and mapping efficiency.
R&D expenses increased by 39% year over year to RMB $219 million due to increased technology related to stop.
Speaker 7: R&D expenses increased by 39% year over year to R&D 219 million due to increased technology-related stop.
G&A expenses increased by 27% to RMB $156 million.
Speaker 7: GN8 expenses increased by 27% to RMB 156 million.
Primarily due to increased headcount and an increase of share based compensation expenses.
Speaker 7: primarily due to increase the headcount and increase the share-based compensation expenses.
Our overall human related costs remained stable compared to last quarter and we have a has the cost control under current market conditions.
Speaker 7: Our overall human-related costs remain stable compared to last quarter and we have enhanced the cost control under current market conditions.
Excluding share based compensation expenses.
Our adjusted net income for the quarter was RMB $377 million with an adjusted net margin of.
Speaker 7: Excluding share-based compensation expenses, our adjusted net income for the quarter was RMB 377 million with an adjusted net margin of about 32%, which responded back to the historical record in the third quarter last year.
About 20, or 32%, which rebounded back to the historical record.
In the third quarter last year.
Further demonstrating our high quality and sustainable operating leverage on our profitability.
Speaker 7: further demonstrating our high quality and sustainable operating leverage and profitability.
Net cash generated from operating activities was RMB 306, 367 million for the quarter representing.
Speaker 7: Net cash generated from operating activities was RMB 367 million for the quarter, representing 36% year-on-year growth.
36% year on year growth.
As of September 32022, our cash cash equivalents and short term investments increased to RMB 13 9 billion.
Speaker 7: As of September 30, 2022, our cash, cash equivalent and short-term investment increased to RMB of RMB 9 billion, which would position us well for the future growth.
Which further position us well for the fuel.
For growth.
Looking forward at the near term resurgence of Covid cases are still at a high level across China, which are affecting the liquidity demand enterprise users.
Speaker 7: Looking forward, as the near-term resurgence of COVID cases are still at a high level across China, which are affecting the recruiting demand of enterprise users.
I expect our total revenues to be between RMB 1.05 billion and RMB one zero in mind.
Speaker 7: We expect our total revenues to be between RMB 1.05 billion and RMB 1.09 billion in 2020.
In the fourth quarter.
With a slight year on year decrease of three point.
Speaker 7: in the fourth quarter.
8% to zero percent.
Speaker 7: with a flight year-on-year decrease of 3.8% to 0%.
Given that their steel the whole month of December before the quarter and some level of uncertainties still ahead.
Speaker 7: Given that there is still the whole month of December before the quarter ends, some level of uncertainties are still ahead.
However, as Jonathan just mentioned and as you have witnessed from our third quarter results user growth is the key to our business our market leading position and the competitive lease cost further strengthened since the resumption of user registration in recent months and.
Speaker 7: However, as Jonathan just mentioned and as you have witnessed from our third quarter results, user growth is the key to our business. Our market leading position and competitiveness got further strengthened since the resumption of user registration in recent months.
And our user osteo accumulated fast and in the online recruitment market in China is proved to be with good room for growth.
Speaker 7: And our users are still accumulated fast and the online equipment market in China is proved to be with good will to grow with the effectiveness of our model being still intact.
With the effectiveness of our model.
Impact we are confident that we can ride through the current headwinds and <unk>.
Continue our secular growth in China, human resource technology market.
Speaker 7: We are confident that we can rise through the current headwind and continue our secular growth in China's human resource technology market.
That concludes our prepared remarks now we would like to also questions operator.
Speaker 7: That concludes our prepared remarks. Now we would like to answer questions. Operator,
Please go ahead.
Thank you can I ask a question you will need to press star one and one on your telephone and wait for your name to be announced.
Speaker 7: Please go ahead.
Speaker 2: Thank you. To ask a question you will need to press star 1 and 1 on your telephone and wait for your name to be announced.
Please standby, while we compile the Q&A Keith.
Okay.
Speaker 2: Please stand by while we compile the Q&A queue.
Our first question comes from the line of Eddy Wang from Morgan Stanley . Please go ahead. Your line is open.
Speaker 2: Our first question comes from the line of Eddie Wang from Morgan Stanley . Please go ahead your line is open.
Okay.
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Takeaway two.
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What does your level that you a whole lot since you're finding yourself.
Thank you management for taking my question I have two questions first.
If we consider that to the reopening process to gradually happened yet.
Speaker 4: First, if we consider that the reopening process gradually happened in the early spring, how do you think the recruiting activities to picking up quickly, fast, or do you expect that it will take maybe one or two months lead time before these enterprise users to post their jobs? How is that going to beside you and SUMM demolish your organization growing and human beings for this
Early spring.
So how do you think.
Recruiting activities picking up.
Quickly.
Or do you expect that will take maybe one or two months of lead time before this the enterprise of users to post to get jobs.
The second question, yes.
If we expected that to be reopening to gradually happened in next year. So what I'll watch the patient in terms of the sales and marketing.
Speaker 4: The second question is, if we expect that the reopening to gradually happen next year, so what's our expectation in terms of the sales, marketing and customer acquisition cost because we believe that some of the other online recruitment platform will also spend some money to acquire new customers?
Customer acquisition costs.
Because we.
We believe that some of the.
Either on a recruitment platform we're also.
Spending some money to acquire new customers.
Considering all this competition in concert and data we also have a quite ambitious.
With Atlas we plan in the next few years.
Speaker 4: considering all this competition and the concern that we also have a quite ambitious, you know, the new use acquisition plan in the next three years. How do you think the expense level and what kind of the margin should we expect for the 2023? Thank you.
How do you think the expressed level and what kind of the margin shall we expect for the Tennessee. Thank you.
Sydney events.
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Could you work with you to announce anything greenhouse Sheila.
Speaker 8: Thank you for your attention.
The WMC at equivalent suitable conquest.
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Speaker 8: Thank you for listening to me, and see you soon!
So the related issue.
Well see some balance here see how now that she had huh.
Speaker 8: Thank you to Julio again.
Speaker 8: That's all for now.
Uh huh.
And that's a show Nash again so.
Speaker 8: Thank you very much.
In children.
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Total Acs heart it creates headroom how that.
Speaker 8: If you're 132 years old, we'll all receive a newarrett Tomato.
<unk> Bancorp.
Speaker 8: Come down
Max images.
Speaker 8: Thank you for your attention.
And somebody with digital.
Was it a push out here this year.
Speaker 8: Thank you for listening.
What's your kind hydrogen hundreds at Havas group with us.
Speaker 8: I hope you have a wonderful day.
Sure.
Speaker 8: I want to thank you all for your time. Thank you for your time.
Mailing and shipping.
Speaker 8: If you're coming to sleep with us, we have a plan. Yes, sir.
Thank you for your question regarding your first question.
Speaker 8: of life is valuable,
Okay.
Speaker 3: Thank you for your question. Regarding your first question about the opening, what will be the recovery speed for the Enterprise recruitment?
One thing I'll be able to recover.
Enterprise recruitment so.
From my observation for the party is.
Majority.
Enterprises right.
Speaker 3: Based on my observations for the past years, the majority of enterprises can have a very quick recovery, with some very limited exceptions, such as very huge mega enterprises, because they need to take some time to re-adjust their expectations for their growth, for their revenue, and also for their expenses.
Quick recovery.
Some of our limited function.
That's not a huge mega enterprises, because they may take some time to.
The jacks their expectations for the growth from a revenue per day.
Thank you.
Martin.
Some of your thoughts.
Thanks, Paul.
We all have to be much faster recovery.
Speaker 3: for the MACTIN and human results and head count at the time. But for SMEs, they have learned to be much faster recovery.
The whole greening, the Java language so sure.
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Speaker 8: right you for it.
Maxine shopping dasa.
She is a woman digital marketing some of it is xiaomi should reach.
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Speaker 8: Sharon, can you tell us more about global marketing in China?
So it a lot.
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Speaker 8: and how eating an egg is used in theESS we shall be able to study just a little bit
Jamba Hudson digital modern with Shanghai Tang Gypsy return type of projects Wishy washy.
Gotcha.
Speaker 8: And that's it for today. More time will time, we can consume more alpha 2s, That's all for today. Thanks for watching.
Meanwhile, the Hudson branding talk on our clients.
He entitled to dollars.
Speaker 8: You want to part in branding the job.
Got it.
Uh huh.
Sure.
Speaker 8: So, thank you very much.
Uh huh.
The other day, the <unk> human liver.
Speaker 8: If you have any questions, please feel free to contact me.
Let's see.
Uh huh.
So that kind of World War.
I don't know better bargaining fail.
Speaker 8: It may still be a technical language, but rather directly in theke filling the short line towards the proper direction.
Steve I don't know that you go to China.
Or was it is clear that she led the assumptions. So you can that bleeds off while the medical market.
And regarding your second question about our path forward.
Speaker 8: from the Jager market.
Speaker 3: And regarding your second question about our plan for the marketing of next year, our marketing efficiency for the digital market will not decrease. As I just mentioned, we are planning for over 100 million new users in the next three years. If everything goes normal, we are expecting around 40 million users.
Sure.
Oh Wow.
Our marketing efficiency for them to get to market 12 months to quit.
As I just mentioned we are planning for over 100 more new leases in the next three years. If everything goes normal we are expecting around 14 million, mainly what you say.
Sure.
That's a that's just a normal circumstances are we I'm not pay extra money for that.
In terms of branding.
Our CTO you have I don't know Dan Moorhead.
And we have not making any.
<unk>, which we can sponsor I'll give brent to pan out there might have been Paul so.
Speaker 3: events which we can sponsor or do brand-new brands at Whitehead in Seoul. So it also will be a normal year.
Talk about the anomaly.
So my.
Oh yeah.
That's my two cents.
I think it opened one for next year will be Oh.
Speaker 3: The question is that the market's percentage of revenue for next year will remain stable and it will not affect our margins in a natural way.
Remains stable.
We're not perfect our market.
And that to me.
And.
I'd like to add a little bit about the.
When the re opening is.
Speaker 7: I'd like to add a little bit about when the reopening is there. First of all, our cash revenue would like to...
There first of all our cash revenue.
We will add to it.
Europe , and then our accounting revenue because us we need some time to book the revenue there.
Speaker 7: gear up and then our accounting revenue because we need some time to prove the revenue, then we would like to see our accounting revenue gradually catch up those cash collections with the reopening. So there is a delay effect. So please remember this. At the beginning of the...
We would like to see our accounting revenue gradually catch up those cash collections.
With the reopening so there is a delay so please.
Remember that so at the beginning of the recovery, we should pay more attention to the tag revenue and then.
Our accounting revenue continue gradually Petra.
Speaker 7: recovery, we should pay more attention to the cash revenue, and then our accounting revenue can be gradually petrified.
Okay.
Thank you Doug.
Gotcha Gotcha.
Sure.
Susan.
Speaker 4: Thank you for your time.
Speaker 6: childrenan.
We will now move on to our next question.
Speaker 2: We'll now move on to our next question.
Please standby.
Speaker 2: Please stand by.
Our next question comes from the line of Timothy <unk> from Goldman Sachs. Please go ahead. Your line is open.
Speaker 2: Our next question comes from the line of Timothy Zhao from Goldman Sachs. Please go ahead your line is open.
Got it.
And when you go then Danielle.
I'll go and see how challenging this thing.
Speaker 8: Thank you for your attention.
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Thank you management for taking my question I have two question.
Speaker 8: Thank you for taking my question. I have two questions. First is considering that December is the month when many big enterprises sign a new contract with us. Could management share some color on what kind of status that we see across the big contracts and what percentage of
First is considering that December is the months when many big enterprises.
Annual contract renew contract with us.
Let me share some color on what kind of data is that we see across that'd be contracts and.
What percentage of the.
Enterprise SaaS may have some offsetting potential and secondly is about the branding activities around the World Cup.
Speaker 8: enterprises may have some upsetting potential. And secondly, it's about the branding activities around the World Cup. Coolment management shared the rationale and how should we think about ROI behind these branding activities. And especially considering there are some other recruitment platform also do similar branding activities during the World Cup and how should we compete with them and what is our differentiation. Thank you.
MS Chair duration now and how should we think about the ROI behind this brand deactivate Hess and especially considering.
Auto Mcmahon platform also.
Todd.
Similar Brian you have to go to hit during the World Cup and how should we compete with them and what is our differentiation.
Susan <unk> regarding short literature women.
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Speaker 6: If you have any questions, please feel free to contact me.
Credit issue.
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Speaker 6: and especially within the same sane and
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Speaker 6: clical whole year and how much you is like had you much oally.
Thank you for your question.
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Speaker 3: Thank you for your question. Regarding your first question about our...
Hi, Amit.
Pat.
Yeah. So it has already been.
Two months.
Speaker 3: of any contract at the end of the year. So it has already been two months passed for the fourth quarter. And what we have observed in terms of the refining of key accounts, we are happy to see that basically we have seen most very, very seldom customer.
For the fourth quarter, and what do we have upside in terms of that.
Uh huh.
We are happy to see that basically we have now.
There's a certain customer.
Hi, Scott.
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Basically quite deep in terms of the <unk>.
Speaker 3: who have stopped the resigning with us. So it is basically quite big. And in terms of the upsell or dollar amount, the net dollar retention rate of all of our key accounts have still continued, should be about 100%. It is not the fact of our historical results, but it's still, we are satisfying under current circumstances.
And number two some rate.
Still continued shift there.
Uh huh.
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Speaker 6: Thank you very much.
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And about your second question.
All of our transactional work.
Speaker 3: And about your second question for our sponsor show, the Board Cup.
Because we are a young company average age of our employees.
So on the supply.
Speaker 3: Because we are a very young company, the average age of our employees is around 20. So, football is a sport every life.
The pharmacy support everybody lives.
You had companies.
On the news.
I'll go next.
Population.
Speaker 3: You have probably seen from the news several days ago that the population on Earth has reached more than 8 billion. And I believe that from a perspective of human civilization, if something is a very few items things will be left and football is definitely should be one of them. It's a very good thing and we are happy to support it.
Has reached more than $8 billion.
I believe that.
From our perspective.
In some cases.
You said that a few items.
And football.
Is that it should be one of them.
I had been more happy.
Yes.
Yes.
So it just seems like the chief Michel alone side.
Does it have or should have.
It should also the Baja holds up well, let's just see the doctrine of jobs to the Wassa Shari.
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Speaker 6: or 356 So there will be all our 3800 threes there. Three dollars and
Cut out actually a bigger loss this year based on what's it shortly.
Speaker 9: Namah
<unk> enjoyed up.
Speaker 6: Please watch other videos also.
Perhaps for the year was the top of the.
Hollywood, Okay that one kind of area.
Speaker 6: on what we can unpack so in order to reach the reality of what y'all started EGeorge Thank you for your attention.
With that she shops.
Sure.
This year was done.
Or sudden downward over the top.
And on top of supporting feedback. The first thing is that recently is a good business.
Speaker 6: Thank you very much.
Speaker 3: On top of supporting CIFAM, the first thing we consider is that we think it's good business for doing all those matching campaigns and advertisements on the other channels. So in 2018, Russia broadcast more than 650 million Chinese audience have watched the event.
Are those multi component.
Thank you Julien.
So in 2018, the Russia what caught.
More than 650.
Two long term with Audi.
And therefore, the Capex one this year, we don't have the February and March.
I believe the people.
Speaker 3: And for the contact workup this year, we don't have the set number now, but I believe the people should be, the audience base will be larger, should be more than 700 to 800 million.
Sure.
The latter.
Martin.
Good morning.
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So you had some waste from all sides out I don't want Sujit. Thanks to the Jabil taught us from much of data.
Speaker 6: Thank you for your attention.
Speaker 6: So, it made very western-ovember, more than humbling to see a Thank you very much to that wonderful shuts. Alhamdulillah.
And.
If we assume each oddone watch like four to five.
Speaker 3: If we assume each audience can watch four to five games during the whole work hard event, then there will be more than 4 billion people and time who have watched our advertisement. You know that our advertisement is quite frequent between the games.
There is a whole.
Our population.
I'll be more than for Bon.
Tom will have watched.
Okay.
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Right.
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Speaker 6: Thank you very much.
As home Jacob.
Yes.
<unk>.
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Speaker 6: It may look likeakurahen.
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So we thought it had been.
Alright.
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Speaker 3: So it's a good business if you consider the vast audience base, the age of people who are interested in the craft, it's a quite good business.
Right.
The agents or watch the game.
Got it.
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Speaker 3: And you notice that several of our peers have also done the same thing. But I believe this is a good thing so we can give our audience, our customers more choice. They can choose what kind of platform they are using best.
But I believe.
So we can feed our own.
Our customers more choice they can choose on what kind of platform.
Yes.
Thank you good dinosaur later.
And that's my answer to your question. Thank you.
Speaker 6: Thank you very much.
I just have a fire side comment.
Speaker 3: And that's my answer to your question. Thank you.
So we would also consider that right out of our Titan.
Speaker 7: I have five comments. We also consider that brand advertisement is more like an investment rather than a cost or expense item. Because of the return it's better, because it's more effective than traffic acquisition call and it's long lasting.
More like.
Rather than them.
You know cost or expense items.
The return is better because of it's more effective than traffic acquisition cost and long lasting so that's probably the very short answer to your question as well.
Yes.
Speaker 7: So that's probably the very short answer to your question as well.
Speaker 7: That's probably the very short answer to your question as well. Thank you. That's very helpful.
Thank you that's very helpful.
Okay, we can move onto the next one.
Thank you, we'll now move on to our next question.
Speaker 3: That's it. We can move on to the next question.
Please standby.
Yes.
Speaker 2: Thank you. We'll now move on to our next question.
Speaker 2: We'll now move on to our next question. Please stand by.
Our next question comes from the line of Wei Zhang from UBS. Please go ahead. Your line is open.
Speaker 1: Thank you.
Speaker 2: Our next question comes from the line of Wei Zhong from UBS. Please go ahead, your line is open.
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No you're fine.
Yeah.
Thanks management for taking my questions.
Two questions first is that if we look at first quarter next year and normally it is a strong seasonality for Rick from a market. So in addition to the World Cup sponsorship that we mentioned already could management elaborate your plans in user acquisition marketing and promotions in the first quarter do we have a target for user growth in this.
Speaker 8: Thanks, Management, for taking my questions. I have two questions. First is that if we look at first quarter next year, and normally it's a strong seasonality for recruitment market, so in addition to the World Cup sponsorship that we mentioned already, could Management elaborate your plans in user acquisition, marketing, and promotions in the first quarter? Do we have a target for user growth in this peak season? And also, how should we think about the margin level in the first quarter?
Susan and also how should we think about the margin level in the first quarter of my second question is it.
It seems that the the large enterprise customers, who may have relatively more resilient.
Come on budget compared to the Smes given the uncertainties in the macro environment. So just wondering what would the company consider to maybe shift or.
<unk> towards the <unk> side, given this backdrop and also what's your latest thoughts and progress in the mid to high end recruitment segment. Thank you.
Oh sure hearing in earnest in the hall.
and our recoupling segment. Thank you.
<unk> should get better campaigns, Covanta solutia that Shire ship, IHOP, such as <unk> and <unk>.
Ah, she didn't understand. The whole...
The campaign summit heats up about 200 festivities this Prison Street TV So, thank you very much.
And the trend yesterday actually I'm.
So from the end of December with dose should yet.
Covanta, so thats umbrella.
The DBMS community stays focused. If there are some areas to test back, whether there are actual
I still have essential.
So they should use our leadership position until that triggered holder charger them dumping launch it.
Thank you Simon.
So, if you have any questions, please feel free to contact me. if you have any questions, please feel free to contact me.
Sure <unk>.
Sure.
T K vantage ago campaign.
Just hold the Jacob Jim Pate Bothers me about campaign to Jan <unk> Shukla neutral, what youll creature that hydrogen and chatted about.
There are also many organizational issues for the company development agency.
Thank you for your question.
Your first question.
Thank you for your question about your first question on our marketing plan for the first quarter next year. So our World Cup campaign will end on December 18th. And the spring festival starts on January 22nd next year. And there are only five weeks in between. And by the end of January , people will go back to work.
That's it for the first quarter next year, so our work from home.
On December 18th when the Spring Festival starts on January 22nd next year.
Okay.
<unk> and by England generally people will go back to work variable traditional equipment.
So now let me think.
In between.
where the transition of recruitment pick season will start. So there are only six weeks in between the World Cup campaign and the Spring Festival, so I can assume these two events are clearly connected.
And Thats pretty pretzel, so I can assume that two ways actually connected.
That's a G. G. So did vacate the campaign Chocolate-box colonial there late last.
Gotcha.
Thank you for watching.
And would that suggest you should see clear Richard our cash and balance sheet.
And assuming those went in.
Told the suentces secreia introduct ES land val ina.
And the intensity of our marketing team who worked hard.
And the intensity of our marketing campaign of the World Cup, we strongly believe that this campaign effect can continue to the spring of 2021.
Yeah.
I think in fact home continued its perpetual.
Instead, the hot Ginger to hold up.
Jumping showed you want cheetah.
Here's what is in the special recording field.
<unk> had two long in Chicago.
<unk> goes up.
Jao ping shi wo zhi wang ji de.
Todd Please see golar possible churn the shifting.
We hope they will talk about how to solve problems for witchers with our
P on sho shop. Go for top top. Who got your girl possible about chender Ting. Top five who show you she's a bit topile.
So it's so easy to compete at wholesale.
So our marketing plan for this data.
We have not.
So our marketing plan for the big season after spring festival will not require extra money. So on the other hand, we benefit from the World Card Campaign.
So.
I'm not hung up on the stage from the World Cup component.
Now just as a woman, though just sort of important yet highly registry.
So, now, our exam was held at 20 hours a day. However we only selected the two TE appropriately. Weoroed the M
Covid plateaued adult she doesn't do that.
Reopening to get ship would you let me ask you bacci, the Gulf with the potential number of womens marketing shop.
Hi, Chad.
Two.
Shell should you touched upon the pricing that you're irrelevant needs against your team.
Sure. She got issued a memo standout warm until Buffy there'll be a link quarters got it.
Thank you for listening.
And that part was on the study not a party.
Thank you for your attention.
For the reopening of revenue.
And that's part of our strategy. Another part is that for the reopening everybody is concerned, we are also highly focused on that. So our marketing plan, the efficiency and the industry on our marketing input, we are highly connected to the reopening process. So currently we will stay focused on the progress.
We are also highly focused on that so our marketing efficiency.
You too.
Okay.
Input.
Highly connected to the reopening process.
So currently we are.
Focused on the progress.
No it's actually a slow with it so it is very relevant in the Guangzhou, that's useful shop halfway.
<unk> Sunday shedding this shoal bleed soil.
Now with that to whe the cleers the re ING a quad digical shoar. Happy some day tring str and P toil.
While the <unk> arguably the vaccine data et cetera.
And.
On top of Fovista, when we're talking something ultimately.
All right.
Hi.
Anything that we were not.
Stu and Mark too.
Huge enough to impact on margin.
Got it.
But even if you are willing to negotiate or move.
Uh huh.
Some of the K Cup product portfolio.
People question, what's I'm still not so sure that mail or email jumpy huge CFO .
Sure.
Jen do you do your SME either.
Well I'm sure our chief Judge found a cohort of bundle ownership meal soybean oil.
But since you did answer that says that a woman does some of the three year old enough OCI Youll do you heard that our John Chandler shovel of home, but you should see on the total.
Fluids, Anatol jazz pharmaceuticals will mental well being.
The U K coupled up.
Lastly, before.
Oh God.
Second question about color relationship.
Uh huh.
One has improved.
Tom I'll, let you respond.
Okay.
Our platform.
Uh huh.
Well I think sure.
Never.
I'd like to state that our total.
Total resurface when the autos pushback.
Okay.
So soma polishing anymore.
Sure shoot out of SME cohort two.
So shell women to shoot local harvest for sure.
So one quick.
And somehow travelers should any of our agent retention.
We have quite a long period of time, a massive huge number.
In China.
And that's what you're asking.
Great.
Patrick.
Hudson.
Especially.
And Michael I'm, sorry, Paul.
And to the market.
<unk> in China more than 90% of the enterprises are small medium size.
You know companies, so basically all of them.
Sure.
Our own.
Company.
Composition is also.
In the same pattern, so we have more than 80% of our hedges.
Enterprise customer all companies. They are the small medium sized enterprises. So they are a very important component to our visit.
Mentioned.
Comparator with.
Peers, we are more specialized.
So we definitely will.
Certainly well try to provide them with better estimates.
No.
Meanwhile, we're definitely will also pay more attention to page eight.
So we have a much balanced.
Structure, that's a submission as well.
Got it thank you management.
Okay.
Now we know one follow up question.
Thank you.
Please standby.
Okay.
Our next question comes from the line of Steve Lee from Haitong International. Please go ahead. Your line is open.
Yes.
And with a hub.
Oh God when basically I just want to know when you go to slide this is Glenn you forgot yes sure.
Hi, I'm sure you've got you're welcome does it sound like the tissue.
What are you doing.
Yeah.
Yes sure.
For February to Bill Pate.
Tony Hooper and do something that I can ship.
No just that does shake them tours out Sheila.
So those have seen way.
So it sounds like Youre going to see when someone does choose way Hale you scheduled about Seattle yoga they'll ship sadly that shortly.
Oh, theyre going tissues that way.
Canada showed consistent yeah.
Just you watch everybody through all of the Guy who heard you call out the deferred sure I hope that you're going to open it up to what you've done there.
She had a blending capacity and I think so.
Sure.
Let me quickly translate myself.
No.
Good evening, Thanks for taking my questions I have two.
First is regarding the paid and the question you were saying that we see that.
This number has decreased.
Again to point 7 million this quarter, just wondering if management can share with us now.
Active anti tumor cells.
And how did that change yeah, yeah, I'll quote unquote a basic.
Or how should we see the pain.
Gotcha very shallow change how much of that is related with the pandemic and how much is related to the west to initiate this cleanup action by the company.
How much is related with the natural channel.
And second question is related with the group.
Blue collar.
I'm just wondering can management help us understand how much revenue currently comes round up with call it better and then that.
They like it and they view and paid and the price number.
Some metrics like that and how shall we see the future growth for that business.
So I'm done.
Oh.
Or how should we see that go straight.
Uh huh.
So carla.
That's what's cuda outgrow the white collar business in the Wednesday. Thank you.
Okay. Thank you it's also the.
<unk> enterprise customer question first.
No.
So the three points.
73 million.
<unk>.
That number was trailing 12 months paid enterprise customers so that number.
Sure.
We deal with mainly because in second quarter, the Covid impact.
<unk> reduced our paid up enterprise customers in that quarter and starting from third quarter, we see.
Quicker recovery of.
The quarter over quarter sequential.
<unk> enterprise customers World So.
But.
Because of its trailing 12 months.
So it's.
The second quarter did have some impact to our you know.
The total total pay to enterprise customers.
But if you look at the quarter over quarter. If you look at all the paydown across customer in third quarter versus the peer customer in second quarter, we see a very you know.
Yes.
Our corporate growth.
In terms of the active for enterprise customers.
That number.
We see starting from.
June July and then all of those so we see a gradual recovery and <unk>.
Compared with the second quarter.
Sure.
It's a it's a pretty good.
Final vote.
Business, a booming, but starting from September because of.
The COVID-19.
Sure the Covid control measure.
See some impacts to the active with enterprise customers number and.
So the similar things.
Auto business in the early.
Fourth quarter of this year in terms of the.
In terms of the.
Paying ratio paying ratio.
Is it I think is quite stable.
The second quarter, and third quarter and even in October and November overall, the paying ratio among the app to enterprise customers.
It is quite stable and the RFP is also very stable. So the impact is mainly with the total active enterprise customer, which is highly related to the COVID-19 control measure and in July and all of those when the Covid measure.
<unk> is not that screen.
Stringent.
We see recovery so we believe.
I'll come in months.
Covid it's Carl.
That the annuity will see a good.
Ill come back.
FTE for enterprise customers.
And so this is the first question regarding the Blue color I can offer you with something like a data in terms of the users of our blue collar at this moment in terms of the Mou.
Accounts for roughly 30% of our total users and in terms of the revenue contribution blue collar accounts for roughly about 26% of our.
That rapidly.
The third quarter.
Okay.
Got it thank you.
Okay.
Challenging in San Diego, then Shinhan kind of.
Our newest Hollywood eligibility.
Solar funded Sundar talk about the auction.
Now I'll give you an answer as shown urban services, particularly new on the solo two will be sending out all of that back to you Bob.
Industrial tightening of Kashi and our culture.
So the higher TCE in and what kind of Covid.
John .
<unk> will.
Sure well, Michelle yes, you've seen that with that Danielle and look what are you to human.
Sure.
Hello, Michelle what I, what I tell you what were shut down double.
So I think that you can launch out what you'd had yet.
San Juan Jarrah soundly in the whole equation Wyman channel saw the money.
Ballpark.
Urban service Bogo twos, all yet alcohol what else on air coach selling the.
ETE loud on wage or the Hyatt, which are there.
The indigestion.
City that you ship.
Do you think you got a played out work, which means a meter.
Thanks.
Oh I'm sorry.
To supplement some state on so Paulo did take industry, we have seen a 20% year on year.
Okay in terms of cash bleed and other service industry on Tuesday, 8% yeah.
While our total cash billing compared to last year. When it grew by 1%. So you can see a blue collar sector.
Is that true.
There is the very fast.
Right.
Uh huh.
We have high confidence that we will require additional 100 million users.
The upcoming three years, which is double the current total user base.
I believe around two sites will be what we call traditional blue collar workers, including logistics, including urban salaried and many factory manufacturing.
Rob.
Yes.
And Thats all format.
And also one more thing to mention is that will.
We will resume the user growth.
The endo.
And the end of June and the mid of the year normally is not the peak season for blue collar to find job anomaly in both businesses.
Obviously wide.
The spring.
In the after that brief festival that is the peak season for the Blue collar come out fine job. So.
Four in upcoming years, because of our well you know hardly a week.
For all of our new users so they expect for that.
In the peak season after spring festival because further.
Grow our who color segment users and customers.
Due to time constraint that concludes today's question and answer session. At this time I will turn the conference back to N bass for any additional or closing remarks.
Thank you once again for joining us today, if you have any further questions. Please contact our IR team telephony or TPG Investor relations. Thank you.
This concludes today's conference call. Thank you for participating you may now disconnect.
Please standby.
Yeah.
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[music].