Q3 2023 Kanzhun Ltd Earnings Call
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[music].
Ladies and gentlemen, thank you for standing by and welcome to the.
Collin, John Limited's third quarter 'twenty to 'twenty three financial results conference call.
At this time, all participants are in listen only mode.
After the speaker's presentation, there will be a question and answer session.
Today's conference is being recorded.
At this time I would like to turn the conference over to MS. Wendy Huang head of Investor Relations. Please go ahead ma'am.
Thank you operator, good evening and good morning, everyone welcome to our second quarter to date with this REIT earnings Conference call. Joining me today from the chairman and CEO, Mr. Jonathan Zhang.
I'll, let director and the CFO Mr. Jong.
Before we start we would like to we would.
I'd like to remind you that today's discussion may contain forward looking statements, which have based on management's current expectations and observations.
Well known and unknown risks uncertainties and other factors not under the company's control, which may cause actual results performance or achievements of the company to be materially different.
The coffee pot or are you not to place undue reliance on forward looking statements 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 to non-GAAP financial results. Please see the earnings release issued earlier today.
In addition, a webcast replay of this conference call will be available well what much site at IR <unk> com.
Oh, I'll now turn the call to Jonathan our founder Chairman and CEO.
Hum.
Ladies and gentlemen.
Thank you Luigi publicly.
With that I'll also tell you Oh go ahead.
Thanks, J J tells me a moment to show them that you have.
Hello, everyone welcome to our fourth quarter it could take a mystery earnings conference call.
Our employees management team one of the answers I would like to express our sincere gratitude to all of you guys as much as we pass them support us.
So John.
Thank you Hilda.
Well.
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You can sort of hold the junior.
The total payroll.
Judy.
Yeah, well if you don't you Cheetah. He told me he says all of that.
Thank you Danielle.
Right.
I'd like to share with you our performance for the second quarter to make a history.
We recorded revenue of RMB.
RMB 116, 1 billion for this quarter. So it is six plus 2% year on year, we booked RMB, one 4 billion intercollegiate property, absolutely two 1% year on year.
Adjusted net income, which excluded share based compensation expenses increased by 18, nine 6% young year to RMB $710 million.
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Sure absolutely.
Also the charges for the yearly run rate.
Ed.
Follow on Sichuan Eli.
Thank you the basket will keep all of you and welcome.
Cool.
Susan.
Our adjusted operating income, which excludes other income such as police and returns was RMB 500, RMB 2 million.
Quarterly record high in terms of both absolute amount and muggy.
He is a genius San Diego more so of course, you start again.
Yeah. That's helpful. We'll say that she had alcohol. So this provides us a lot.
Let me jump on your side you have yes.
Let me sum up on your balance.
Sure.
Oh, Yeah, you fulfill their needs.
Our total paid enterprise customers in the 12 months ended this quarter.
One 9 million up 22, 4% year on year, and eight 4% quarter on quarter, both the total enterprise customer number and actually even paying ratio continue to improve.
Well Sheila as you.
Goes to that.
<unk> seen realized.
So that new flyer.
These and all of that.
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She was on the luxury or Chilean shallow.
Yes, that's something that you do.
He seemed a little available so you can tell us as yamana.
In the past quarter, the average number of monthly burn flying actually users on the Boston. He asked me what is well poised to Sweden.
By simply selling one 7% year on year is approximately 12 million newly added Wifi users.
Our total accumulated annuity of everybody who says for the past two quarters of this year exceeding 40 meter.
Does she Nancy.
She is a San Diego was a small felicia.
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You saw that.
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Got it.
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He was he loved Oh well at all.
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Just related to that.
Do you have other chicken.
And you do Shanghai Tang TJ Maxx.
Your saltwater and so sure Eden <unk>.
During our second quarter and they can get to.
Two earnings call in late November last year, we forecasted that the cooking Mama.
Good morning America to users in the next two years, which seems to be expected.
At the same time or use a genius, which is the average day you ask questions. They do I wish somebody who remain stable and have actually high level.
In the third quarter, yeah, more than 131 million monthly average number neutral achievements on the platform.
And you'll see the panel.
I was lucky.
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The children.
Beautiful clean more positively in the future.
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Shimon.
Second culture yourself traditional peak season for golf seeking an equivalent.
Its just a continuous increase in new equipment demand.
Well the number of average monthly active job seekers remain stable average number mostly enterprise users and monthly active into place increased significantly by more than 5% sequentially mostly to record highs.
Yeah.
Larry and Colin Yeah, Yeah sure Yeah, yeah.
Yoshi sure, allowing for yet.
Sure. Thank you Julien tools.
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Good day, and said Hey, let's do it totally valid.
In terms of industry breakdown, the blue collar industries to be among the most outstanding performance, especially in the Blue collar, rather suddenly center, which show was the largest contributor in the equivalents of both number of them. Okay and then for this quarter.
Average daily active some hosting so all of those other central exceeded 1 million.
Thanks Leila.
Yes, you know Julien.
Danny.
Queen Anne Julio.
Yeah.
Suddenly they sort of tangible you shouldn't just all you to listen to them.
Come down.
From the bundle itself will do Katja.
Well, that's taken looks at other blue collar sector. She most more young job seekers.
So supply chain logistics, and manufacturing industries, especially serbdom categories, such as transportation warehousing Walker's also posted overlooking Chris.
Turkey hotline and sure Jackie Kimble.
<unk> excuse me in the essential.
These glamorous race, the blue part of industrial revenue contribution to more easily 5%.
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And then myself Vicky Sutil Photoshop Shandong.
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Who them all into junkies, yeah. It's onshore you off on this amount of passion.
Other industries, such as consumer goods automobile aftermarket.
Internet lifestyle salary and raw materials related to machinery manufacturing fields also cool Oh, what a quota.
Corporate basis, while the overall internet industry maintaining growth momentum.
100 basis.
Some unusual you'll.
He also could hold up.
Sure.
Thank you Susan.
Kinder Jewish laptop.
Meanwhile, you had bothered she it taught us useful lucent Shanghai as they go into Asia.
In contrast to the first half of the year.
Recovery of demand from larger enterprises increased relatively more quickly in this quarter in terms of the number of newly added and I think I'm positions.
She longer Bob Your line you saw its yeah, Hello, finally, social to class.
So prices was more than 2000 employees grew the fastest.
So in terms of the shifts are.
Yes, Hello, Akshay Shan Shan Shan Shan downhaul.
So therefore, I think that shows us.
Your team within Chicago.
One of the city level perspective, second tier and lower tier cities continued to outperform with increases in both the number of job positions and income.
She had a natural wood learn from it.
But you do my own Julia in Guangdong and Zhejiang.
You called out I mean, sure GT, John Joseph Tung here and Juliet.
So in terms of corporate social responsibilities this quarterly focus and dedication in helping employment difficult group of people interested and same with workers.
Welcome to the team go into your balance at the same time, when you're traveling corridor, you'll jumping in Shanghai just yet.
So Josh.
You bet he chantal.
Hi, Doug.
Hi, Dan.
But stripping for wide provide the lifeboat costumes for such as true pumping equipment activities.
Nearly 5000 enterprises, providing more than London, and southern positions or the simple job seekers and cover more than 492000 participants.
Oh hi.
Jim will contribute Anti-drug also jostled surpass all social Shenzhen Wuxi.
Just as close to the initial team.
D P chip will dance you got a small shop.
He is an agenda to chew them work with them.
So you know with our football.
One more thing to at least the company's court approval, we declared a special special cash dividend for the first time.
Is a return to our shareholders for their firm support as our profitability continues to be stable and improving.
But sometimes you that you know they may go Pudong, who Joe My son.
You just ship me.
Yes.
Linda it's Don here.
Alicia I thought that the Pasha EMEA <unk>.
Eugenia Charlene Jim Cashman.
But maybe in a month is U S. Dollar so a part of their own nine per ordinary share, which is U S. Dollar down 0.18 idiots for aggregated data of months approximately EUR 18.
18 million. This is expected to be distributed in the mid to late December this year.
Hello, Joe.
I'm Gonna sample field Lee CSO Telegent sponsorship that's all for my part of the call I will now turn it over to our staff wholesale for a review of our financials. Thank you.
Okay.
Hello, everyone.
Let me walk you through the details on our financial results of the third quarter of 2023.
We achieved a solid financial performance in the past quarter with all key figures, beating our expectations on revenue exceeded the high end of our guidance to RMB 161 billion in this quarter represented a solid 30.
36% year on year growth in <unk>.
8% quarter on quarter.
We calculated the task release reached RMB 164 billion.
32% year on year, and 11% quarter on quarter.
The good results were mainly due to strong user growth plus healthy user engagement as well as recover on recruitment demand in the quarter.
The number of enterprise customers for the 12 months ended September 30 reached.
We reached another new high to $4 9 million, indicating.
The paying ratio level among enterprise users.
Despite the slight declining.
Overall, our TPU.
<unk> average revenue per paying user.
Which was mainly dragged down by the increased.
Revenue contribution from small size to accounts.
We are happy to see that the E. R. P. T U O T accounts showed sequential growth trend assigned us recruitment demand is improving among large enterprises.
Moving to the cost side.
Total operating costs and expenses for this quarter were RMB 136 billion up 30% year on year, excluding share based compensation or adjusted operating costs and expenses were RMB 1.07 billion.
Relatively stable with the last quarter.
Our 22% year on year.
The quarterly adjusted operating margin.
Record high improved from 25, 7% in the same period last year to 34, 2% this quarter.
Up by eight 5% oil percentage points year on year.
This strong profitability once again.
All of our efficiency already effective monetization model and the powerful operating leverage.
Our cost of revenues increased by 33% year on year to RMB 268 this quarter.
Representing a gross margin of 80.
Q3 80.
It is 3.3% up by one five percentage points quarter on quarter.
Our gross margin from.
From the first quarter of this year and achieved a sequential improvement in the past two quarters, mainly due to the recovery of the revenue growth momentum.
Paul.
Effective cost controls.
Yeah.
Our sales and marketing expenses were RMB $457 million.
15% year on year.
Adjusted sales and marketing expenses.
Was RMB $389 9 million up 10% year on year and this increase was primarily due to increase the sales.
Employee related expenses and advertising.
Advertising activities.
Notably.
Ratio of selling and marketing expenses continue to decline, while our trailing 12 months payout enterprise customers.
<unk> continued growth once again showcased our intent marketing efficiency and our superior.
Economies of scale.
Our R&D expenses in this quarter increased by 43% year on year to RMB 400.
$14 million and our adjusted R&D expenses was RMB $306 million up.
39% year on year, primarily due to our further investments in talent and technology developments, especially in areas related to our technology.
Our G&A expenses.
Expenses increased by 41% year on year to RMB $219 million in this quarter and our adjusted G&A expenses remain relatively stable with the same period last year.
Our net income was RMB 426 million this quarter more than doubled that in the same quarter last year.
And our adjusted net income set a new record reached RMB 714 million translating to an adjusted net margin of 44% up 12 percentage points year on year.
Net cash provided by operating activities grew by.
122% year on year to RMB 813 million for this quarter, mainly contributed by increased cash collection from operations as.
As of September 32023, our cash cash equivalents time deposits and short term investments or RMB.
Hey, Julien and long term investments in wealth management products were RMB, two 3 billion, which totaled RMB 15 1 billion.
Supported by our ample cash reserves and outstanding cash generation capabilities.
I will try our best to deliver sustainable returns to our shareholders and now for our business all over Poland.
Fourth quarter of 2023, we expect our total revenues to be between RMB 151 billion and RMB 155 billion.
But year on year increase of 40% to 43%.
Based upon our current progress we expect a cash build is in Q4, two continued growth sequentially, mainly due to key accounts contributions.
With that well.
That concludes our prepared remarks.
Now we would like to answer questions. Operator. Please go ahead.
Okay.
Thank you if you wish to ask a question. Please press Star then one on your telephone and wait for your name to be announced.
If you wish to cancel your request. Please press Star then two.
If you are on a speaker phone please pick up the handset to ask your question.
Yes.
Your first question will come from Eddy Wang of Morgan Stanley.
Please go ahead.
Yeah.
How long do you call them.
So how about I just told you what I shall Shanghai based I'm, considering a switch on challenging the time to go there yet.
A whole lot to Daniel when teaching charge that you guys are on top of them to chance at all times, you do that Jamie curious at home.
Florida has held true range I just showed you what kind of a question via the.
What I can tell them that you choose to ship them anywhere.
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Our whole Joshua Archie can you tease out the Shaw.
Are you buying that you gets you to essentially go to your balance sheet, you should have a huge hole shoot that shall show them that jamba Tricia should Oh gosh, it's Patricia.
Can you go into a hole that we went to a strawman hundreds or for a fan gotcha and I'm kind of going through a gypsy a shock to the shampoo lodging a posture that you are assessing ways that that should be a woman called me would trigger Apache triage gosh.
Based on a formula.
Oh wait whaler How're you all male Wichita, just depends Alco don't quite positive, let's say, what what did you find yourself. Thank you.
You management for taking my question. My first question is regarding the job.
Job market trend in the third quarter and are in the fourth quarter so far.
Is there a do you how do you see any you know continue.
Continue improving in terms of the.
Supply demand dynamic between the job seekers, and the employers and Oh or what have you see all of the recover all P. A K a N pull here in the third quarter and so far.
The second question, yes.
Especially they would then we have just announced.
What have you been consider you know too.
Just a special dividend plan.
At this time and is there any further.
Plan to increase the shareholder return in the future. Thank you.
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Thank you Lindsay.
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Okay.
Oh great.
Okay.
Thank you for your question regarding your first question.
Comment on monthly trend.
October and November we.
I'm sorry.
Cement demand is still continuing to cover that.
That's a very good observation.
The difference is that for the third quarter is traditionally high season.
Equipment, that's what we call a go live in September and October.
Hum.
This year in the third.
<unk>, especially good also for the fourth quarter Commission on East mining wise, there will be some floor back when including demand, but the overall trend if you take taking into the consideration optionality is still quite good.
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Yeah.
<unk> please.
Please with a T shirt.
That's actually helping us again.
Yes.
And.
Regarding the recovery of plateau.
With me.
Their job postings their motivation to post more jobs has been increasing.
I mean, our progress lately.
It will take some time to put in context, as we introduced before smaller companies, especially like tiny companies, Dave covered much funnier contract.
And you're still maintaining them.
Uh huh.
At this stage for the larger companies.
Recovery.
10 in common paths, but we need to take some time.
<unk> to 12, Haynesville shut down the troubled.
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Come down.
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I believe these yet thats here there you go it doesn't do a panel that is related shutdowns.
Cingal silicone goal.
Last year, I believe EBIT, Chile, hydroquinone, topping our head Congress for that Joe.
You couldn't make them go up so.
Uh huh.
I see you listening to the Cherry.
And one more point to add literally start recover of the number of the countries and job postings from the larger companies their support to the drone market will be even bigger cost for one single contracts in larger companies. They can bring more names.
Job postings and more categories of drugs.
Which also means they can't create more have comes to mind single job posting and that's something we all lately.
Pete.
And then let's add kittila immune cell banking.
She is a year.
<unk> last year to June 30.
Thank you Susana <unk> <unk>.
Talking brand.
For the full now Donald Lisa the Cingal.
To the sheet.
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A mutually danger.
And we also want to emphasize that for the second quarter average monthly upkeep. The crew member average most accurate contrast reached historical high which is a very clear sign that the overall trend over the mountains recovery.
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Just a passionate colleagues.
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Consider the saga and unknown EG or less economic future.
Constitute a saga in uncle warm enough, we don't yield based on the Eagle.
Seasonally the phone sponsorship I see.
Yeah, just one more concern.
The other thing of course is that all of them say, a woman, who said that kind of is how long does reaching well yeah. That's it.
Strategically Barco Stefan Matt.
Your boyfriend.
So even in Oklahoma and dealt with all <unk> stage, well known memorial Felicia.
She is a woman city of Jeddah.
Yeah.
So you're not hedging.
And therefore your second question.
Regarding our considerations of this dividend payment.
Alongside with our development history.
I received very strong support from our shareholders and we would like to share.
<unk> results with our shareholders and one of that is dividend payment.
So now from many other companies and we decided to take that take the turn attention and to share our results with our long term shareholders and we are very happy to do that.
Alright, I can email you the champion Israel concession that youll.
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C G HN email closer women's home.
Total so that kind of your or how will you balance either.
Sandy.
So you typically issue among clean.
John the shifting that Ashish.
And also did you say Sunday the premises.
We have very good and strong operating cash flows in the company now over more than I am.
Nathan 15 billion of cash and cash management products.
And that's why we keep we are Murray.
Turning to the dividend payment.
So for me I'm sure you saw this of course is the of course, you down yet.
Similarly on Cheetah.
Yeah.
Uh huh.
Using the traditional seasonal pattern with ethical memo yet until they get should go.
You don't achieve a benches on each sheet go.
Sure Jeff Downhole.
Bye Bye to gene Hall.
So Susan Siegel.
EMEA.
Sure.
And also I want to add that we.
We have we have already announced the two terms of share repurchase program and believe we purchased.
Some amount of shares under certain conditions in the this is a very big mistake to Hum.
<unk> continued to share on 11000 temporary shareholders on a broader view and we'll continue to do that.
Yeah. It was all sort of in the door.
That's my answer to your questions.
Okay.
Sure.
Operator. Please proceed to the next.
Yes.
The next question comes from Timothy Zhao of Goldman Sachs. Please go ahead.
Hello.
Gentlemen, that Humana Gucci Thompson.
Now with Glenn.
Sure Colin.
Hi.
Now one of them kind of needle coffee to Eni.
Sure Okay.
Thank you Shawn Duffy the company showed up yet.
Anyway.
So I need to tie up with <unk>.
Yeah, ladies human factors that can be if apple will finish and why don't I kick switch.
Sure sure.
Thanks, Tom Mitchell I mean, do you see to it that much of it yet.
Sure.
With that you don't know Casa de <unk> de <unk>.
Got it.
All women and that impacted the second Deutschland Acadian back into essentially with.
No no not she might Salomon Staten Island.
Thank you both gentlemen.
Can you comment on that.
Sure Noah.
Thank you Sean.
Thank you management for taking my question and congrats on a very strong result.
Oh look I have two questions first could management share more detailed color regarding debit community mouthful timeline with the video users including okay.
Colin or white collar college students in the third quarter and fourth quarter so far.
<unk>.
On the enterprise side, how did the job posting and payment behavior performing this quarter and what is our outlook for fourth quarter and my second question is regarding brutal counter cause I'd note that company has made in multiple programs.
Connor Calpoly revenue year to date, including agile mentioned third quarter below cutoff contribute close.
Close to 35% of the revenue.
Magnus here Oh elaborate your strategies you have older penetrating the blue collar sector and what are the potential benefit. Thank you.
Okay.
How the decision consistent Timothy.
Uh huh.
Sure.
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<unk> achieved a cheaper indicator. So your furniture is a continuing can you live with it wouldn't go to 2018 this year seeking Tonya I should say any of that.
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Which 117 trillion NGO show me last one macro ability to just shut ins yet until crude gathering and beyond.
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I know you guys you should get on.
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Genie energy wanted to our country with GTT impossible for them.
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In Chile, <unk>, Cleveland as well.
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Or Manhattan, or mitigate kind of the Shaw on for.
San Diego San Diego the courtyard.
So I think we're just really eating all familiar you've got all that.
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I'm going to go for here.
Or is it that it's related to one customer who.
<unk> on top of that.
So you don't have tightened Livingsocial Tumblebug Yorkshire.
Yeah. Thank you for your question regarding the first one is we have a rich mix than some industry has performed a preliminary budget. It did.
In the third quarter, especially in December.
Industry, which employees.
The increase because of both enterprises iPhone and colleagues.
The reason behind that is quite easy to understand because the industry's move which phase.
Phase II based communications.
Total recovery.
Compared to last year and also into <unk>.
GE is quite easy to start a new company.
<unk> recovered from their original hibernate situation Anderson.
<unk> seen people can can.
Provide service and they're based on this industry.
<unk>.
So that their recovery.
Difficult to cover essentially.
No impact at that.
Feelings.
If the current trend.
Two people.
It's been very good.
And also into it it was very easy to acquire customers and consumers squad assumption industry. So this is Jason best win in other industries preferred ratchet or better.
Transportation transportation logistics.
No doubt.
Energy environment protections in EMS.
I'd also like to share some numbers.
Cortes active online and job postings, which is in my script.
Atrix, which meet the bos neutral be more active in Cushing.
And service industries.
Online depletions for the sequential build more than 13% sequentially and now reach the restaurant and retailing and close more than two 2% sequentially.
It's highly highly of the switches.
Please proceed sir.
And locally.
The year generally and so on.
Tcf had a.
Oh, Yeah, that's essentially the fan base and on top of that the actual.
Sure Ananda convincing numbers.
Logistics industries transportation and housing in terms of uptake online job posting growth of more than 25% quarter over quarter.
Not that I can go valued and I think the judge ruled that huh.
I actually don't Saddam Besides English.
The teacher Hawley, Thomas T shirts aren't quite up to the Lasalle I'm behind.
Gotcha.
In terms of the blue collar and.
White collar industries.
One one.
One thing people, there's a lot of people have already noticed that.
It's a new energy and automotive aftermarket is true industry cognizant recover gradually nurses.
Hmm.
They are used to quantify this.
But definitely Shan Shan.
Thank you Mr. Hogan Lucianna loganwifi shortly.
Sounds out for materials.
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It's in Tokyo <unk>.
Yeah.
Another interesting observation is that people might get jobs related to artificial technology might increase which is definitely the case and also a more general top positions Suntrust them.
From demand for me in terms of Internet technology wholesale showroom in the ink.
In this country.
You can see the <unk>.
Is it a little bit and choice is a ship.
Women in.
And finally the APA.
Savage yet.
Uh huh.
You're seeing some good maytansine found its way to often be that's India.
Has it opioid stewardship act like that sound about right.
That's a challenge.
She had a path tickets and you got to bet Bob rout yet.
All of that nature. So you the parts issue.
Those events you send to the sequel for young people.
And another interesting embrace enterprise with less than 100 employees.
Weighted average diluted posting jobs in the second quarter compared to last quarter increased by around 3% well in enterprise was more than 2000 people their average daily newly added jobs increased more than eight 8%, which also shows the difference in this quarter.
So you just saw him in the incident in the Diablo adhesives and learning on the learning system.
Jim for Centaur serious shyam.
Shyam will ship.
So these all she's on women do won't be equal suit Cumulus.
Shouldn't that Sachin what I think should have been some told us two months ago.
Yes, the juggling that woman soundly hi.
Hey, gentlemen.
Email.
Arrested that shoe.
Satellite and any new judge Hudson quota Yan Chen that Johan.
Regarding your second question, so I'll refrain, our penetration strategy and demand creation model.
Color market.
In fact, we are in terms of our current penetration courage and blue collar users.
The user satisfaction rate, which of course, we are quite satisfied with current concentration.
So it doesn't have any more aggressive.
Insurance that are in this process.
Most of this album Iot is ourselves.
So I would say.
Larry.
With all of them and they have about a $4 18. So you don't say to you Lisa.
Got it.
So just drop them down into a lifestyle.
Our team with Haynesville and digest food on SEDAR.
Unfortunately, the giant in terms of the Sunshine.
And also we are we are continuously exploring these barring the salaries.
Salaries.
She chaired in Brooklyn.
For example in the manufacturing sector.
We're exploring that Commscope service to provide for the blue.
Manufacturing sector uses.
So you sound sure it was influenced by that and that's my answer.
And operator, let's proceed to next question.
The next question comes from Wayne <unk> of UBS. Please go ahead.
Hey, Glenn is Oh my God.
Got to get all the people that will go down.
Diego Glenn Engel from man, let George answer guys outside my own milk Handoff General grocery says you know Bill Heiden recorded I'll sure I'll find Zimbabwe should adelson Gladstone, Paul how should we be called preacher deal nausea stomach hand, all people questions when they become a law.
Florida dropping from Apache for its own alfalfa Golly Gee, the Xinjiang <unk>.
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I'm not aware of quad cities.
Thank you management for taking my question. My first question is regarding the competition landscape. So given the uncertain macro situation in the market conditions.
Is it the case that the existing recruiting platforms, a lack the growth potential while at the new entrants seem to make slow progress, which makes our market leadership, even more stronger and looking into next year. How do we expect the competition landscape change in the online recruiting market in a second.
I'm sharing more color on the paying ratio as well as ARPA trend or a platform, especially on the <unk> side, how is the ARPA growth trending recently thank you.
Hum.
Uh huh.
Julien good for you to acquire.
So until that time.
Oh, the shame of Orion, Yeah sure Grenada.
Your line is now.
Women <unk> childrens what angles Medina trauma.
Sandy to NATO fashion, yes.
Unless you tell me, what you said Giuliani and <unk> summary, clinical Yati Lee without good Youll ship.
Taking the once.
As you can see Gucci Shanahan mean chip in onshore more which he is at <unk>.
Though the younger students who are bashing highlights the food unknown that you've learned that Youll ship XI.
Sure.
Yes, yes.
From Goldman I think movements year to intermodal intangible resounding, yes.
Yes.
Shipments for the year.
Okay.
So could.
Could you please shed some better changeover.
So tying it to go down.
So both of them doing both at Gogo chosen.
Tissue or the junior and go through the camera.
Thank you for your question and for the first one about the competitive landscape. The overall situation is relatively stable now cleared unchanged in the third quarter.
In the past two years due to.
Kind of a pressure internally or externally.
Many actually but every company has a quite nice shipment showed there is to take advantages. For example, one company. It has very strong amongst is in a state owned company in the group Scott.
Scott ticket kinds and lately has been increased.
Competitiveness in that front number that comes in a day.
Good and providing service to mid to high intent.
Gotcha perspective also recognized by the market.
And I think every other enterprise has its unique characteristics.
We are continuing to further enhance that.
And that's my answer for that competitive landscape.
Yeah.
Regarding your second question of the RP.
Our pool or trend.
No.
I would like to comment a little bit.
We announced in the quarter we reported.
A full point 9 million booked for cleaning 12 months enterprise customers. So as you probably remember that the second quarter.
Trailing 12 months data to customers.
Number was $4 4 million so we were.
We're roughly increased.
One 5 million paid enterprise customers. So this.
Gross.
Paid enterprise customers I think the mainly reason is that the overall user growth.
At this moment is still faster.
So when the new user come to our platform when they want to pay to use our service most of them they prefer.
Purchase.
Our <unk> service.
Through the self serve the online portal to do the online purchase.
That increase the hour.
Overall pay the.
Enterprise customer number.
In terms of the.
Paying ratio.
We see improved trends for the small size of purchase and we believe that.
When they.
Familiar when they are familiar with our service.
Love our focus is definitely will use more and we definitely will.
Client to convert them to.
Heavy user usage and by the service through our offline contractor.
Okay offline contract sales and <unk>.
So we believe so.
Some of that.
And so sorry about.
The active users the active users definitely will continue to grow and the paying ratio definitely will also improving.
Right.
The the Arpus from small medium sized enterprises.
Capital.
The relatively stable situation in the quarter.
And.
It's the same trend.
Happened there with the key accounts, so basically large comp.
Cap rates are they.
<unk> also increased driven by the increasing.
Recruitment demand.
The contribution to our revenue.
The small size of the enterprises they contribute.
Higher.
Larger.
Revenue through the overall.
All of our business, so basically they're a smaller opco blended with higher alcohol led the overall land data our pool.
The decline a little bit so basically small size they maintained.
Our pool and the large accounts there are increased.
Overall blended ARPA.
Think of it. This is the current situation with applebee's in quarter three.
Okay.
And that's all for our answer to your question hopefully.
<unk> next question.
The next question comes from Robin Xu of Bernstein. Please go ahead.
Sure.
I think he is all in so long ago would have been down but once you burn through that.
What kind of question again.
I don't want to and kind of our clients. When it's just so much psychology goes Uh huh.
I'm Gonna telephone horseshoes.
Telephone the slowest in the mine told range out a mobile phone.
Quit some obscure how long does it goes to that some jobs.
So Dr. Lu in Houston.
Tissue, especially on the kind of constant Laguna Blanca whoosh.
No.
Do you mean.
The dumping that you can call them John.
Uh huh.
Do you feel like your mail Nisha Chin.
Sure Jim.
Yeah.
My first question. So how does management think about the magnitude.
The nature of growth investments were 2024, how does the company plan to balance growth versus margin expansion as we go forward.
Second question.
Hum.
The states of the hiring market going into 'twenty 'twenty four.
Renewal discussions with key accounts going into the next year and.
To the extent possible if management can share any outlook on 24.
Growth in the Arab GPU growth, a man and a retention that's all thank you.
Okay. So I'll answer the first question.
So we previously announced.
We will.
Achieve 100 million new users in next two to three years. So basically according to this year's progress.
We are you know.
On track so by the end of.
By the end of October we achieved.
<unk> 40 million verify the new users so basically this year.
The way, we like to have a very good result in terms of the.
New user growth definitely next year, we will continue.
Our growth.
For the new users and.
When we talk about the.
User growth.
You have witnessed that in third quarter, we achieved a historical high of our operating margin. So that basically we managed to grow user without spending too much marketing expenses.
We previously communicated with our strategy. So our strategy is putting more resources on Brian Atwood.
The over all traffic acquisition cost.
Basically this strategy works well.
And so next year.
We will further increase your users and we will continue to follow this strategy and the world powerhouse will find the best.
Violence points between.
<unk> kind of profitability. So what it means that the growth is apart priority for the company and all of the growth come from.
This again from the new user growth.
Will do.
Who is.
Happily and spend our marketing expenses carefully.
Although all played out in the territories.
So let me managing home hub.
Central and then there are the iron and see if you saw the rollout.
Realize the Sarnia, but <unk> seen a handful of New York.
A woman <unk> solar senior.
Joe you asked additional meaningful opinion, it's Taylor.
Yeah.
That's what we mentioned that SASSA booklet, China put something on that answer.
Again, he gained just the Shaw.
Uh huh.
Should you use I mean, you answered a bit on the Cima Hello, Please for the Sudan.
Sure John.
Gentlemen.
I would tell you on that do you see that even with the.
<unk> issued U.
Its economy, although you both.
Sheldon Athene com.
And well take your second question.
For the buildup to the next year.
Go back to our forecast the end of November to mitigate your risk.
I'm from the media.
Assign users.
By the end of September we have already achieved 40 million. Thank you.
I'm not planning to change our timing at this moment it constantly.
Based on that.
Summary.
And the enterprise side users earnings quality and uncover speak to adapt.
The condition on top secret side, which you achieved that should be better.
Gotcha.
Supply and demand.
The multibank, Georgia, increasing miano Joel mentioned that.
Mayo buffer pro tools behalf.
Trisha <unk>, who I mentioned ownership and you mentioned Angola.
Bob.
I'm not sure the magnitude or the Qimonda was actually shot up.
A woman given challenging yes, sure Vince you open yet.
<unk> Shah.
And in terms of how in the end the enterprise side of that performed well we don't have exact focus at this moment, but based on what we have observed this year.
Demand recovered every quarter and believe Sony believes in late <unk>.
Our enterprise client will perform continued momentum next year.
Taking the <unk> lawsuit is our mutual.
Say some growth whenever I'm talking back to your final point, our dosing the woman.
<unk> D genes.
In the lithium materials edge, we are thinking.
Good evening Alicia.
Here Yoga Nal GP.
Uh huh.
It becomes insurance today this evening Alicia the mortality.
Tashard, Ohio woman.
Chelsea and Xiaomi.
Tasha fleet.
Akshay.
According to third party numbers.
You can see that our monthly active users interested in October.
Ben I'm close to number one and we are already the largest in terms of daily active users and their interactions with <unk>.
We maintained the highest amount of upstairs and knew me Anthony this trend disclosing traded well continued shifts.
And Andy the doubtful Congo, Chile equals <unk> initial purchase decisions union that unchanged.
Uh huh.
<unk> generated against the tumor was you know kind of as you should.
Dr Kapoor.
Sure Mickey.
Yeah, Hey on Pandora Chen <unk>.
Children thoughtful shopping.
Jumping to essential avalanche, it judiciously and was it up.
Uh huh.
Thoughtful lunch include food until you realize that she shops agenda.
In terms of the law.
Right.
So that's renewing their contract by end of this year, that's where we are.
Are you expecting.
I know companies to spend their budget for next year and sign a contract in the coming months.
Sure.
Let me see.
So encouraging trend better steel.
What are your color on the recruitment demand for larger companies still need to take some time.
Yeah.
And our question and answer to the question Andy.
Consider the chemical change we will take one last question.
Sure.
Okay.
The next question comes from Yang by of the ICT. Please go ahead.
And how does that mean you guys have any tower to Manhattan below 10 minutes LNG Dean answer Shaun.
That's enough to Maggie niche like Shonda, that's how many households do.
How do you teach English are now they are going to get online.
How close to the claim you see champion.
Especially people short term impact.
I assume <unk> market.
Most of them coming down the pipe.
Yeah.
Or do you keep.
How do you think that you know.
Thanks.
The first thing that we have seen the company gross margin has rebounded in the two quarters.
What has the company's expectation trucks natural gross margin change.
And the second one.
The company gave you more color on that.
For Neocart and the business side.
She has a progress of smoke latch language model globalization and other new initiatives.
Thank you.
I would like to answer the gross margin question.
So basically you.
You said.
Our gross margin bottom out for converted two quarters.
Yeah.
So basically this gross margin improvement.
This is a result of faster revenue growth.
Uh huh.
Relatively.
Control and the stable costs of ultra visits.
<unk>.
Uh huh.
In the fourth quarter, so next quarter.
We expect.
Due to the seasonality.
Reason Q4 is the revenue low quarter, so the gross margin.
It is.
No.
What would be affected by the lower revenue. So a temporary the gross margin will contract the Q4.
But for 2020 for the next year because of <unk>.
Revenue growth, we expect the gross margin.
We'll return to recovery for victory.
It's because of our call. So we will maintain a milder growth, but we probably will have.
Faster revenue growth, so that will secure our.
Gross margin to recover further recover based on.
This years.
So this is a gross margin plan.
Yeah.
Woman's egg.
And so I've seen the yields.
So that one into the Shanghai This <expletive> EBITA to Williams in Yeah in General I D.
You'll consume Washington, the revenue model women and girls Shuang.
Sunday as part of the <unk> LNG Chu Jean Coutu.
Several analysts and only in name synchrony.
<unk> shown with Sangamo senior driver.
About our new initiatives.
First one is we would believe that already.
Already true.
Established user service model and also our new revenue model, we want to expand our service to other developed countries and areas and we.
Currently in progress in doing that and hopefully in the next three to five years.
Created not only revenue growth contributor.
I would say.
Starting in Los Angeles.
<unk> done a bunch of young women.
Let me just add so again neutral cash it will need that should shoot up.
Total boxer Bongo.
And so the bottom line.
We'll need us, yes, <unk> Shah.
Nonbank nonbank.
And based on the timing of margin CNS issue.
Since you don't have this issue.
Okay machine consolidated us Lisa.
In terms of lost somebody must now reaches a question investors concern a lot of today since the beginning of this year we have made.
Substantial investments into this area and we continue to focus on.
Continued chip.
Douglas Amit one thing.
As I mentioned is that one of our lab laboratory.
Bank.
Recently open source.
Models.
Well, yes.
We have seen lately so format.
Can you give us a little detail.
The EBIT is a chat motion.
The other.
That window should sundar.
Hi, Dan.
Motion downturn womens tonnage outside I say whenever.
And third when they slowed up they are downloadable add them at the top 10 of H.
That's a subject that that 15 widespread model among the same size of open source models need to be.
Among the top 10 players domestically.
Windows 10 is what he or she didn't inkjet neighborhood boondock and some other things in motion.
<unk> combo chip yet.
Because that's the future.
Good jobs, such as yet.
So its velocity.
Generally the machine.
While she does that clear channel.
Tommy.
Paul do you want all the extra seats that means again.
Yeah.
Sure totally.
Yeah.
Okay.
Okay.
Okay.
Thank you.
Yeah.
Yeah.
Okay.
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Got it.
Okay.
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Alright, thank you.
Thank you.
Thank you.
Okay.
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Okay.
Okay.
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No.
Okay.
Okay.
Thanks.
Thanks.
Uh huh.
E Commerce.
Okay.
Yeah.
Good day.
Yes.
Yes.
Okay.
Hi, Matt.
Okay.
Okay.
Alright.
Oh.
Hum.
We do this.
Good afternoon.
Yes.
Okay.
The Conference Center.
Please go ahead.
Great.
So we remain vigilant.
Sure.
No.
Yes.
Activity.
Okay.
No problem.
Yes.
Hum.
Accounting for 14.
Hello.
Yeah.
Due to time constraints that will concur.
Today's question and answer session. At this time I will turn the conference back over to one day long for any additional closing remarks.
Seeing as there are no closing remarks that concludes today's question and answer session and today's conference. Thank you for attending today's presentation and you may now disconnect.
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<unk>.
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Yeah.
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