Q4 2024 Kanzhun Ltd Earnings Call
miscellaneous But I deliver This is my life I've filled it with smoke But I was gone But I can't see I thought it was over If only it hadn't been Last fall
Yao Chuan Special thanks to Li Wenwei, Feng Zhao, Wenbei Wang, Liu Runqi, Wenge Li Wenwei
Speaker Change: Ladies and gentlemen, thank you for standing by and welcome to Kanzhun Limited 4th quarter and fiscal year 2020 for financial results conference call. At this time, all participants are in a listen only mode. After the speakers presentation, there will be a question and answer session. Today's conference is being recorded.
Speaker Change: At this time, I would like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.
Speaker Change: Thank you, operator. Good evening and good morning, everyone. Welcome to our first quarter and full year 2024 Ernest Conference call. Joining me today are our founder, Chairman and the CEO Mr. Jonathan Peng Zhao, and our director and the CEO , Mr. Fuyu Zhang.
Speaker Change: Before we start, we would like to remind you that today's discussion may contain forward-looking statements.
Speaker Change: which are based on management's current expectations and observations that involve more and more risks, uncertainties and other factors not under the common control, which may cause actual results, performance or achievements of the company to be matured and desperate.
Speaker Change: The camping posture you'll 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.
Speaker Change: During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only.
Speaker Change: for a definition of non-GAAP financial measures and the reconciliation of gap to non-GAAP financial results. Please see the earnings release issued earlier today.
Speaker Change: In addition, a webcast replay of this conference call will be available on our website at ir.jp.com. We said, I will now turn the call to Jonathan, our founder chairman of the CEO .
Jonathan: Hello everyone, welcome to our company's 2024 fourth quarter and full year earnings release conference.
Speaker Change: On behalf of all the employees, management, and the board of directors of the company, I would like to thank the users who have always believed in us and supported us.
Investors and friends
Speaker Change: Hello, everyone. Thank you for joining our company's fourth quarter and the four-year 2024 Ernest conference call. On behalf of the company's employee, management team and board of directors.
Speaker Change: I would like to extend our sincere gratitude to our users and the resters and friends who have continuously been living us and the support he does.
Let me first introduce the performance situation.
Speaker Change: The subsidiary company achieved a GAP revenue of 1.82 billion, with a public currency growth of 15%.
Speaker Change: After deducting equity base expenses, the adjusted net profit is 7.21%, a year-on-year increase of 15%.
Speaker Change: In the fourth quarter, the average completed MAU of the BOSS Zhipin app was 52.7 million, a year-on-year increase of 28%.
Let me first provide an overview of our financial performance.
Speaker Change: In the fourth quarter, the company achieved a gap revenue of RMB1.82 billion, up 15% year-on-year. Overadjusted net income, which includes share-based compensation expenses, reached RMB720 million, reflected on 15% year-on-year growth.
Speaker Change: In the fourth quarter, average verified monthly active users, or MAU, on the boss-gripping app, increased by 28% young years to 52.7 million.
Speaker Change: In the year 2024, the company achieved a revenue of 7.36 billion yuan, representing a year-on-year growth of 24%.
Speaker Change: After deducting equity base expenses, the adjusted net profit for the year is 2.71 billion, a year-on-year increase of 26%.
Speaker Change: Without considering financial income and other income, the adjusted operating profit for 2024 is 2.32 billion, a year-on-year increase of 41%.
In 2024, the company fulfilled its profit commitments.
Speaker Change: For the full year of 2024, the company achieved the gap revenue of RMB 7.36 billion up 24% young years.
Speaker Change: Adjective net income, which includes share-based compensation expenses, reached RMB 2.71 billion, up 26% young years.
Speaker Change: For the more, our adjusted operating income is putting other income such as worth management income.
Speaker Change: was earned the $2.32 billion for four-year 2024, rising by 41% in a year, and in 2024, we successfully delivered our profit commitment.
Speaker Change: In 2027, the share price increase cost accounted for the proportion of income.
Speaker Change: Compared to 2023, it has decreased by 2.3 percentage points and will achieve a further decline in absolute value and as a proportion of income by 2025.
Speaker Change: Share-based compensation expenses as a percentage of revenue in 2024 decreased by 2.3 percentage points compared to 2023, and they stepped it to further decline in both absolute value and the proportion of revenue in 2025.
Speaker Change: In 2024, the number of newly added complete users will be nearly 49.5 million, marking a new high in the scale of annual new users. Meanwhile, market expenses decreased compared to 2023.
Speaker Change: Thanks to the users' recognition of the company's brand
Speaker Change: and the powerful bilateral network effects that help improve customer efficiency
Speaker Change: As of December 31, the company has cumulatively provided services to over 225 million users and 16.6 million enterprises.
Speaker Change: In 2024, we attracted nearly 49.5 million newly added, verified users.
setting a new record for any of their growth.
Speaker Change: At the same time, we reduced marketing expenses compared to the industry thanks to our growing brand recognition and enhanced our lateral network effects which have significantly improved customer-quivision efficiency.
Speaker Change: As of December 31, 2024, the company has provided service to over 225 million users and 16.6 million
Speaker Change: In the entire year of 2024, the average monthly active user base of the BOSs group on the app side is 53 million, representing a year-on-year growth of 25.3%.
Speaker Change: We have provided over 1.85 billion users with the opportunity to exchange resumes based on mutual consent between job seekers and recruiters, which is what we refer to as a successful match in our operations.
Speaker Change: M.A.U. on the bus duty tab for the four year rich 53 million, representing a year-on-year increase of 25.3%.
Speaker Change: In the year, we facilitated over 1.85 billion successful resumes changes based on mutual consent between job seekers and employers, which is what we refer to as achievement in daily operation.
In 2024, the macroeconomic environment presents challenges.
However, the company's main model of growth driven by user growth remains effective.
Speaker Change: It has driven improvements in both revenue scale and profit margin levels.
Speaker Change: Despite macroeconomy challenges in 1024, the company's user growth-driven RAM-new growth model remains effective, driving notable improvement in both RAM-new scale and profitability.
Someone said we are a Beta
Speaker Change: So here I want to say that we are not just a beta.
Speaker Change: Some may argue that we are more better at doing business. However, I would like to emphasize that our business model is so much more than that.
Speaker Change: The main driving force of our village chief still revolves around Chief Ku.
Today, user expansion has remained our core girl strivers.
Speaker Change: The structural growth in revenue driven by continuous user penetration is reflected as follows: First, the contribution of blue-collar workers to revenue continues to increase. The growth of blue-collar users has led to the contribution of blue-collar revenue for the whole year further increasing to 38%.
Speaker Change: In 2024, manufacturing is the highlight of blue-collar growth and is also the fastest-growing among all industries.
Speaker Change: The structural remu-girls proven by a sustained user penetration is clearly reflected in the following key metrics.
First, increasing RAMU contribution from blue collar sediments.
Speaker Change: Blue collars use the growth to boost their RAMU contribution to overall RAMU in 2024 to 38 percent. Notably, the manufacturing sector emerged as the bright spot for blue collar growth, posting the fastest growth rate among all industries.
Speaker Change: Second, the contribution of non-first-tier cities to income continues to increase.
Speaker Change: Second, the Remnew Contribution from Mount Tier 1 cities continues to grow.
Speaker Change: Third, the contribution of ultra-small micro-enterprises to income continues to increase, and here I am referring to enterprises with fewer than 20 employees.
Speaker Change: Third, the revenue contribution from micro and small enterprises continue to rise. Micro and small enterprises are defined as business with fewer than 20 employees.
Speaker Change: These are all structural changes in user growth, leading to revenue growth, provided that the company has made progress in products and services around enhancing user experience to support these changes. Therefore, it is not difficult to know that in these recruitment service industries, blue-collar workers, especially those in the manufacturing sector,
Speaker Change: Cities with low development and ultra-small micro-enterprises are both relatively difficult user groups to serve.
Speaker Change: The breakthroughs and growth in these areas, on one hand, prove that the company's strategy of prioritizing user experience is correct, and on the other hand, indicate that the company has significant potential for user growth and revenue growth.
Speaker Change: This RAMU gas comes from structural shifts in user growth, as the core of this success is a company's commitment to enhancing the user experience, which is underpinned by our computer's product and the service optimization.
Speaker Change: It's not hard to imagine that within the online recruitment service industry, blue-collar workers, are declared as those in the manufacturing sector, lower tier cities and micro small enterprises are among the more challenging user groups to serve.
Speaker Change: Breakthroughs and growth in these areas would only invalidate our user's first strategy, but also highlight the significant potential for our future user expansion and random growth.
Speaker Change: Additionally, we have also observed the demand for recruitment of white-collar workers by large enterprises.
Speaker Change: The revenue of super-large enterprises with more than 10,000 people grew the fastest quarter-on-quarter in the fourth quarter.
Speaker Change: Additionally, we have observed that recruitment demand from white collar and large enterprises has stabilized. Enterprises with over 10,000 employees demonstrated the fastest quarter on quarter-remly growth in the fourth quarter.
On products and services, there is one thing worth mentioning.
Speaker Change: Many investors and friends have been concerned about the company's exploration in the recruitment and closure business. We have made some progress, and by 2024, the number of companies to which we have provided delivery services will be nearly 40,000.
Speaker Change: I want to highlight one more aspect of our products and services. Many investors and friends have shown interest in the company's exploration of close-loop services in these chips, which we do have some progress.
Speaker Change: In 2024, the number of enterprises which we have provided placement and lack service was near $40,000.
Speaker Change: In 2024, the number of paying enterprise clients reached 6.1 million, representing a year-on-year growth of 17.3%. The active user payment rate remained stable, and the payment amount per client, also known as Rpool, saw some growth year-on-year in the fourth quarter of the year.
Speaker Change: In 2024, the total number of paid enterprise customers reached 6.1 million, representing a young year increase of 17.3%.
Speaker Change: While the active user pain ratio remains stable, the average revenue per pain user or output achieved young year growth both for the full year and in the fourth quarter.
Speaker Change: Now introduce the usage of AI regulations in the High-Speed Direct Communication APP version 13030.
Speaker Change: Version 1303 was released in various app stores around the 7th of this month.
Speaker Change: Now let me introduce some AI implementation. We faced it all out in 13.030 of the BUSH-18 app, which was released across major app stores around March 7th.
Speaker Change: First, let me talk about some updates on our side regarding AI2C, which is the assessment for job seekers. One update is that in the interaction of job seekers' job search, a search method of asking questions to AI has been added, just as many people often use AI for searching.
At the same time, we have also retained the keyword search.
Speaker Change: In terms of the engine, we used our self-developed model Nanbei Ge.
Speaker Change: I'll start with our AI2C or AI4.secret site updates.
Speaker Change: First, on JobSecrets' interaction for job search, we have added an AI-powered question-based search function, something many of you are likely already familiar with, and also kept our conditional humor search.
Speaker Change: The search engine is powered by both our proprietary model, Quadman Bay, and the deployment of Deep6R1.
Speaker Change: The second thing AI2C did was deploy a robot to help job seekers with interview training.
Speaker Change: For the target audience, we first chose people who graduated within the last three years.
This robot has been interviewed millions of times.
Speaker Change: His basic skill is that he is very good at interviews.
Speaker Change: So it can do many things, let's take it step by step.
Speaker Change: and the second thing on the drop secret side is we have released an AI bot to help drop secrets with interview culture.
Speaker Change: This feature primarily covers those who have graduated within the past three years.
Speaker Change: This AI bot have been trained on millions of world interviews, and these core skills is that he's very good at interviewing.
Do you hear me, your agent?
Speaker Change: Recruiters who are in our gray testing can communicate with this agent.
This agent currently does the following things
First, understand the recruiter's demands
Speaker Change: Second, find candidates from our talent pool who might be suitable for each other.
Third, each candidate provides a reason for their recommendation.
Fourth, according to the time window available for the recruiter
Communicate with him about the results
Thank you.
Speaker Change: Now, let's take a look at AI2 business, which is the recruiter side.
Speaker Change: Our first application for enterprise users is the AI agent. The coaches participating in the beta testing can communicate their needs to the agent, which can perform the following tasks.
Wen, I understand the recruiter's specific requirements.
Zhu, generate a curated list of candidates from our database.
Three, over-debtification for through-combations.
Four, deliver this results according to the recruiters' available schedule.
For the second application, we mainly did a grayscale release for some blue-collar recruiters.
This is the scene.
Speaker Change: The recruiter chooses the person they find suitable and clearly expresses the intention of wanting to give it a try with this person.
The upcoming communication will be conducted by AI.
Speaker Change: Until the AI, on behalf of the recruiter, obtains confirmation from the job seeker, such as exchanging contact information with each other, or
Speaker Change: This AI represents the recruiter being rejected by the job seeker, so this process ends.
Thank you very much.
Speaker Change: For the second application, a better version has been launched to a selected group of blue-collar enterprise users.
The process unfolds as follows.
Speaker Change: One of the recruiters who met a candidate, they deemed suitable and if previously expressed their willingness to proceed by saying, I'm willing to give this candidate a try.
Speaker Change: The communication process continues until the AI either obtains a job seekers' confirmation of interest through the exchange of contact information, or the job seekers reject the outreach of the recruiter's voice represented by AI.
Speaker Change: At the operational level, AI has great potential in improving management efficiency and reducing costs. Here's an example.
Speaker Change: For example, using AI to assist with security audits can currently improve audit efficiency by more than 30%.
Speaker Change: Over the past two years, with the large-scale growth of the user base
Speaker Change: Our workload in user safety protection is continuously increasing.
Speaker Change: But we have no plans to proportionally increase the staff.
Speaker Change: On the operational front, AI has huge potential to improve management efficiency and reduced cost. For instance, leverage AI for security review has improved our audit efficiency by 30%.
Speaker Change: Over the past two years, our user base have expanded rapidly. The workload related to user security protection has increased accordingly.
Speaker Change: However, AI has enabled us to manage this without a proportional increase in staffing.
Speaker Change: Next, I will also briefly update everyone on this year's spring recruitment situation. After this year's Spring Festival, the overall job market has continued the trend of steady recovery since the end of 2024. In February this year, the number of active users and active job positions in the company...
I'm sorry, I'm sorry, I'm sorry, I'm sorry
Speaker Change: Especially the number of newly posted positions and other data have reached a historic high.
Speaker Change: Please pay attention, the number of newly released job positions and other data have reached a new historical high.
Speaker Change: After the Spring Festival, the number of new Japanese military commands increased by more than 10% year-on-year.
Speaker Change: Currently, the daily active users on the app have also reached a new high, approximately twenty million.
Speaker Change: Next, I will briefly update you on this year's Spring Comments either.
Speaker Change: Following the Spring Festival, the recruitment market continued its steady recovery trend that began towards end of 2024.
Speaker Change: Post-Chinese New Year in February , the company's key metrics, including number of active users, active job postings, and new job postings, all reached historical heights.
Speaker Change: The average daily new door post is after 20th new year, increased by more than 10% compared to the same period last year.
Speaker Change: Keep data active users on the Boston Ping app, which are approximately 20 million, which are also historical high.
A very important point is to talk about the supply and demand relationship.
Speaker Change: The ratio of new users C to B is better than the same period last year, continuing an improving trend since November 2024.
Speaker Change: A very important highlight on the supply and demand side, the job secret to enter price user ratio among new users improved compared to the same period last year, extending the poverty momentum that began in November 1994.
[inaudible]
Speaker Change: From the perspective of industry types, manufacturing, logistics, automotive, healthcare, education, and professional services are performing well.
Speaker Change: From the perspective of job types, blue-collar positions have seen faster growth driven by user increase, but white-collar positions are also showing a positive trend year-on-year.
Speaker Change: From an industry perspective, manufacturing, logistics, automotive, healthcare, education and professional services have exhibited strong performance.
Speaker Change: In terms of job type, new color provisions have growth growth factor due to our user expansion, while white color rows have also demonstrated an improving year-on-year trend.
From after the Spring Festival until now
Speaker Change: Among the new positions in the Japanese military, AI-related roles have increased by more than 60%.
Speaker Change: We feel an entrepreneurial ecosystem has been activated.
Driven by the growth of AI-related positions
Speaker Change: Many product and technology-related positions in the surrounding areas have shown a positive month-on-month trend in recruitment demand after the holiday.
Speaker Change: Multiple, Silver Spring Festival, average daily posting of AA-related draft have served by over 50% young years. Secondly, we've been telling you that life is equal system for emerging business.
Speaker Change: This growth in AI-related growth has fueled good sequential momentum in demand for product and technical positions since the Spring Festival.
Speaker Change: Finally, let me say that we are very sincere about shareholder returns. In 2024, the company will have repurchased nearly $228 million worth of stock, corresponding to 3.7% of the total shares outstanding.
Speaker Change: Of course, this also represents the company's confidence in long-term growth.
Speaker Change: That concludes my part of the presentation. Next, our CFO Phil will introduce our financial situation. Thank you.
Phil: Last but not least, we are very committed to shareholder returns. In 2024, the company repurchased approximately 229 million worth of shares, accounting for 3.7% of total outstanding shares.
This underscores our confidence in the company's long-term growth.
Phil: And that concludes my part of the call. I will now turn it over to our staff of field for the review of our financial. Thank you.
You You You You You You You
Phil: Since Jonathan, hello, everyone. Now, let me walk through the details of our financial results of 4th quarter and 4 year of 2024.
Phil: We deliver the solid financial results for the fourth quarter and the full year of 2024.
The Recruitment Marketing Environment in 2024 was challenging.
Phil: But we are pleased to see that the recruitment demand gradually stabilized towards the end of the year.
Phil: Under such conditions, our revenues grew by 15% year-on-year to R&B 1.8 billion during this quarter.
Phil: Slightly beating our expectation and a group by 24% to R&B 7.4 billion for the full year.
Phil: Our number of paid enterprise customers for 2024 extended to 6.1 million, marking a 17% year-on-year growth.
Phil: Our pool for the quarter was up by 6.8% year-on-year and 3.9% quarter-on-quarter, marking a fourth consecutive quarterly growth.
Apple for the full year reached the RB 1.2 solid.
Phil: Up by more than 5% year-on-year, it's a result of our efforts to explore customer needs and providing more valuable services.
Moving to the cast and expense is fine.
Phil: Over total operating cost and expenses increased by 7% year-on-year to RMB 1.5 billion during the full quarter and by 15% to RMB 6.2 billion for the full year.
Phil: Share-based conversations went down by 4 and 2% points, respectively, for the quarter and the fourth.
Phil: and 41% to R&B 2.3 billion respectively for the quarter and the full year.
Phil: The adjusted opening margin for the fourth quarter, which are quartered in historical height of
Phil: 36.1% while the annual adjusted operating margins improved by 4% points to 31.5% in the 2024.
Phil: continue to demonstrate our strong operating leverage and feeding our target.
Phil: Khao Zulu Revenue, increased by 14% year-on-year, to R&B 300.
Phil: 14 million during the fourth quarter and by 17% to R&B 1.2 billion for the full year.
Phil: This increase was primarily due to increases in payment processing costs, server and bandwidth costs, and other business related costs, alongside with the growth of revenue and user base.
is worth mentioning that.
Phil: Operational employee related costs asked the percentage of revenue decreased by 0.9% to each point, ear on ear.
an evidence of AI application to improve operating efficiency.
Phil: As a result, our gross margin went up by 0.9% to...
You You You You You
Phil: Sales and marketing expenses decreased by 2% year-on-year to RMB 426-minute during this quarter and increased by 4% to RMB 2.1 billion for the full year.
Phil: Our marketing expenses, including Olympic campaign sponsorship, equestify 10% a year on year, despite a higher-view user growth versus higher-year.
Phil: We believe this improving trend of user acquisition efficiencies will continue in 2025 and the lead to a further decrease of our marketing expenses on both absolute amount and as percentage
Phil: This increase was primarily driven by our further investments in AI infrastructure, which incurred of AI related to silver depreciation costs and the quality of the services fees.
Phil: GNA expenses increased by 23% year-on-year to R&B 276 minutes during this quarter and by 35% to R&B 1.1 billion for the full year.
Phil: This increase was mainly due to increase the employee release expenses and investment in new business initiatives.
Phil: Our net income reached RB 444 million in the quarter and 1.6 billion in 2024.
Phil: Our adjusted net income increased by 15% year-on-year to RMB 722 million in the fourth quarter and the 26% year-on-year to RMB 2.7 billion for the full year.
Phil: The justice in that market continued to expand in the four years and reached a historical of 20, sorry, 36.9%.
Phil: Netage provided by operating activities amounted to RMB 900.56 million during the fourth quarter and increased by 16% year-on-year to RMB 3.5 billion for the full year.
Phil: and our cash position stood at RMB 14.7 billion as of December 31, 2024, though there was a share by Backspendings.
Phil: The robots that cash reserves coupled with strong operating cash flows strategically positioned us well to support future growth initiatives and shareholder returns.
During this quarter, Wei repurchased the $6.7 million ADS.
Phil: for a total consideration of US$93. This led to a 1.1 decrease in our...
Total outstanding shares as compared to September 30th.
Phil: 2024, even after counting in shares issued for our share-based awards.
Phil: Combine with shared repurchased in the preceding quarters, we have spent a total of US dollars.
Phil: 229 billion for the share reperchuses in 2024, representing substantial progress of our share [inaudible]
and now, for our business, I'll look.
Phil: for the first quarter of 2025, as we witness the recruitment-standing autumning out from last quarter and showing up swing trajectory post a Chinese New Year.
Phil: We expect our total revenues to be between RMB 1.9 billion and RMB 1.92 billion, a year-on-year increase of 11.5% to 12.7%
with that.
Phil: That concludes our prepared remarks. Now, we will add to answer questions. Operator, please go ahead.
Speaker Change: Thank you. We will now begin the question and answer session. To ask a question, please press star 11 on your telephone. You would then hear an automated message which provides in your hand is raised.
To withdraw your question, please press star one one again.
Speaker Change: We will now take our first question from the line of Eddy Wang from Morgan Stanley . Please ask your question, Eddy.
Eddy Wang: It's also very strong. I might have two questions to ask first. The first one is, could you please elaborate on how you think the AI boom brought by DeepSeek will impact the online recruitment industry? This includes changes in industry technology and products, as well as the demand for recruitment in the entire market. Previously, Mr. Zhao also mentioned a boom in recruitment in the technology industry. What is the impact on the overall demand?
And what are the advantages of our BOSS Zhipin in this?
Eddy Wang: Then the second question is, actually we also know that we have previously invested heavily in AI.
Eddy Wang: Now that DeepSeek has emerged, what changes will there be in our strategy for investment in AI research and development? What are the company's future plans for AI products?
I will translate it for you.
Eddy Wang: and this includes the transformations in the industry technology and products as well as its influence on the market recruitment demands, for example the hiring search in the tech industry, what are our competitive advantage in this context?
Eddy Wang: The second question is, we actually has made a quite big or significant investment in
Eddy Wang: So with the emergency of deep seek, will this promote any adjustments to our AI and the maximum strategy on what is our future roadmap for AI product development? Thank you.
Thank you for your question, let me answer it. First, let me say that...
The online recruitment industry
In the short term, we have already discovered
Let's look at it from Zhang Ming's point of view.
The newly created one commanding the Japanese army
同比增长是64%
This is a very rare thing.
Besides the creation of new ones, we are also observing that old professions will become active again.
Speaker Change: The active AR-related positions in Nikkei have increased by 24% year-on-year, which is quite significant.
[inaudible]
Speaker Change: Thank you for your question. Let me first talk about the implication of the deep seek
Speaker Change: First, it's especially for the demand side. In short term, we do see some changes, for example, on the recruiter side, I said just mentioned, and daily, our age daily newly added, the AI-rated drafts surged by more than 64% which is quite rare.
Speaker Change: and also the existing jobs became more active. So the average daily online active jobs, a number of guaranteed jobs increased by more than 24%, which is also quite a big number.
From the perspective of C-class truants...
Speaker Change: Obviously, everyone is encouraged by this trend, and more job seekers want to work in AI-related fields.
Speaker Change: I'm sorry. I'm sorry. I'm sorry. I'm sorry. I'm sorry.
Job seekers actively searching for positions with the AI keyword increased by 30% year-on-year.
Speaker Change: Okay, on the job secret side, of course everyone was trying to look in for opportunities in this AI trend. So on the numbers, we found that the active search result, the active search keywords with AI increased by more than 34% year on year.
[inaudible]
I think these changes are for the future of the recruitment industry
It will definitely bring a very profound impact.
Let me first briefly mention one positive and one negative impact.
The impact of a memory is this AI now.
Speaker Change: Its ability to understand human natural language and its ability to generate natural language are the first and most fundamental abilities that were discovered.
Speaker Change: In fact, the premise for humans to find a job is that a job seeker is
Life experiences have turned into a text expression of Ratio Make and then a recruiter
sometimes referred to as a job description
So these things expressed in words are actually in front of this AI now.
Speaker Change: and I believe these changes will deeply affect the future of the recruitment industry. I will talk about one positive side and maybe one positive side.
Speaker Change: on the punitive side, this trend of AI is for initial usage, it has varied.
Speaker Change: Strong understanding of human natural language and generate human natural language.
Speaker Change: and this is first fun and can be easily the understanding. So when people start into finding a job, turning through the world will become my resume.
And when the recruiter is trying to hire someone,
You know, formatting up water will be a drug description.
Speaker Change: So in terms of expression of résumé and job description,
Speaker Change: This kind of word-informat in front of the AI is very simple and transparent and it is easy to understand this kind of very deeply affected.
So, I think that when it comes to information...
I want to express my concern with a number.
For example, there is a resume on a platform.
They are all AI-generated.
Then on the other side, there are forty million AI-generated
Joseph Kravitz, when this situation occurs
Lamar
So the people they represent behind them
What is the meaning of this?
And what is the so-called matching?
Speaker Change: I think this is actually not new, because as everyone knows, when more and more people use AI to search, organize materials, and write essays, it becomes more common.
some historical facts that have not been converted by AI.
Speaker Change: After a thousand repetitions, it becomes history that once happened.
I think a lot of our things are being polluted.
Speaker Change: Such large-scale alkali pollution and large-scale JD pollution have not yet occurred. I wonder if we should
This is about true.
Thank you.
Speaker Change: and the second one, on the next one is Kanzhun, I will express with members.
Speaker Change: For example, on the platform, there are over 200 million of AI generated resonate, and on the other side there are 14 million of AI generated job description.
Speaker Change: So, under such conditions and circumstances, what is the meaning of the people behind all those resumes and JDs and what our machines are matching for? So, this is not a new topic.
Speaker Change: One thousand times of repeat, that will become a fact. So, a lot of things have been polluted. Now, the massive pollution of resumes on the job description have not started yet, so we need to be alert and prepared for that.
Speaker Change: After the Deep Seek Moment, what are our advantages? I think I still have some advantages. One is in AI publishing, where we have actually persisted in two years of exploration.
We also have our own pre-trained machine.
Not bad
Speaker Change: We actually have a natural advantage in terms of scenarios on the AI application.
Speaker Change: After all, there is a lot of user behavior, very vertical and very unique data.
Speaker Change: Been continuously investing in the past two years, we also have our own pre trained models.
Speaker Change: Quite big.
Speaker Change: A lot of their application scenarios and accumulated a lot of you there.
Speaker Change: Hey, there already coordinating data so I think.
Speaker Change: That's something we have faith in this current moment.
Jane: Okay. Thank you Jane.
Speaker Change: Yes question man.
Jane: You can see.
Jane: Sure Joe.
Jane: Dave.
Jane: Yes.
Jane: Yes.
Jane: Okay.
Jane: Sure sure.
Jane: Scott.
Jane: Yeah.
Jane: <unk>.
Jane: So on <unk>.
Jane: Sure.
<unk> moment.
Jane: Yolanda.
Jane: General change.
Jane: <unk>.
Jane: Now on the potash.
Jane: Yes.
Jane: Sure.
Jane: <unk> China partnership.
Jane: I know you just said.
Jane: Oh in Shanghai.
Jane: Okay.
Jane: Okay.
Jane: Okay.
Jane: And your second question about <unk>.
Jane: Further investments.
Jane: Developers, which.
Jane: Interesting that recently so.
Jane: Ernie can you can history Scott.
Jane: <unk> moment.
Jane: Since Mike has been with.
Jane: So we have spent more than 1 billion purchasing.
Jane: A lot of clear, let's be a little bit.
Jane: So currently we have start enough completing tumor.
Jane: Okay.
Jane: No matter.
Jane: She began.
Jane: Sure.
Jane: Okay.
Jane: Sure.
Jane: And the highest potential.
Jane: Todd do for Germany, Australia.
Jane: Sure.
Jane: Sure Kevin.
Jane: A few minutes elements usage.
Jane: Sure.
Jane: Hi, Dan.
Jane: All of those elements fiduciary.
Jane: Okay.
Jane: Two points.
Jane: Yes.
Jane: Thank you Mike.
Jane: Yes, mainly accumulation.
Jane: And usage of input.
Jane: Okay.
Jane: Before the restrictions.
Jane: Our GPU purchasing.
Jane: A tree.
Jane: A lot of people.
Jane: You bet.
Jane: Last year under the.
Jane: Overall environment.
Jane: The need to have more and more gpus and bigger and bigger computing power on the death situations.
Jane: The awkward in Melbourne.
Jane: Alright.
Jane: Hello origin investment, so we cannot buy more than women.
Jane: Yes.
ashish: I'm Ashish <unk>.
Jane: <unk>.
Jane: Yeah.
Jane: Okay and also on order to ceasing all year.
Jane: Total China in Australia.
Jane: On the roof.
Jane: Our total is useful.
Jane: So be it.
Jane: Yes.
Michelle.
Jane: I think this coming year.
Jane: Youre changing the way that we don't ship.
Jane: Okay.
Jane: So Chris Thank you for being here.
Jane: A bushel should take three months.
Jane: That tree have.
Speaker Change: Giving us very high confidence in terms of the strategy of investment so.
Speaker Change: As each of them have said when challenges promote changes in 10 days.
Andrew: So in the past the debate is the biggest right Andrew.
Speaker Change: Money means that future that situation.
Andrew: And kind of already in the ratio.
Speaker Change: Attendees too many seats.
Andrew: Yeah.
Andrew: You can see.
Andrew: Youll TRP the current plan.
Andrew: Could you talk about some broad hotels from Cornell critical.
Andrew: Thomas you not resolved.
Andrew: <unk> caught up.
Andrew: Xeljanz.
Andrew: Sure.
Andrew: J D.
Andrew: She has less square footage.
Andrew: In that order will come with us and you need that.
Andrew: I believe patients.
Andrew: Xiaomi theme.
Andrew: Sure sure yes.
Andrew: So Jonathan Jean.
Andrew: Georgia.
Andrew: For context.
Andrew: Yeah.
Andrew: Okay.
Andrew: <unk> of <unk>.
Andrew: Seven one beach have enabled a lot of middle sized.
Andrew: <unk> companies.
Andrew: At the same level.
Andrew: Our AI capability with that.
Andrew: We are at the same starting right so in the future without.
Andrew: Many other companies, we will focus more.
Andrew: They are applications AI agents and continue however.
Andrew: Sure.
Andrew: In the AI side.
Andrew: Magellan has had.
Andrew: Sure.
Andrew: Yeah.
Andrew: So just hold on.
Andrew: Following the sale.
Andrew: <unk>.
Andrew: Yes.
Andrew: And we will challenge it.
Andrew: So if we do.
Andrew: Thank you Sean.
Andrew: Homeaway Ultra cool feature.
Andrew: Hey applications.
Andrew: Sean.
Andrew: All of the needle.
Andrew: You got to kind of play out.
Andrew: Without an archway.
Chris: Chris shortly or quantify EMEA a question.
Andrew: Uh huh.
Andrew: And then we'll jump into our financial team.
Andrew: Costco tissue that's happening in late June we duly naturally.
Andrew: From a trading should contemplate.
Matthew: Hey, Matthew.
Andrew: How much of a chunky Nicole.
Andrew: Sure.
Andrew: You saw the adults and children taller.
Andrew: <unk>.
Andrew: You are talking to us again.
Andrew: Okay.
Andrew: Goodbye.
Andrew: Yes.
Andrew: That's your question.
Andrew: And about our plans for <unk>.
Andrew: No.
Andrew: A little bit about our current.
Andrew: Product and services.
Andrew: We will continue.
Andrew: Exploration.
Andrew: The kitchen in the new RC.
Andrew: Upcoming.
Andrew: Okay.
Andrew: And on the revenue side, which you may consider more so from the AI to recruit her.
Andrew: We have one product which have been ordered.
Andrew: More than one year.
Andrew: I think people maybe interest rates to pay for that service.
Andrew: Which is can help.
Andrew: Increase.
Andrew: You can see.
Andrew: Actually our mutual consent by 60% and saving deposits.
Andrew: I think this product should be welcome to Baidu.
Andrew: Their momentum.
Andrew: Individually, what youll start to model.
Andrew: And that's my answer to your question.
Speaker Change: Operator, let's move on.
Andrew: Thank you.
Andrew: Our next question comes from the line of Timna.
Timothy Zhao: Timothy Zhao from Goldman Sachs. Please ask your question Timothy.
Speaker Change: Hey, Mike I'll Chuckle, when you Goldman <unk> guys can you just go over to Cuba, which began in your comments you Kelly Scott.
Speaker Change: Sure Sam.
Speaker Change: One on <unk> you guys have you should transact teacher holiday Thompson Conway Python there you go.
Michael: Sure Michael.
Speaker Change: Thats why its onsite congestion with Goldman Sachs, Hi, Selman <unk> Jacob Green Dot.
Michael: Sure.
Michael: Sure.
Michael: Uh huh.
Michael: Yes.
Michael: We work real hard you can dial one mascara sort out a good chance of.
Speaker Change: Hello, Doug let me introduce you to Cushing.
Speaker Change: Now Dr. Lin tissue Guangzhou women Doto go fulfill your Polish or put it you got no mcgonigle.
Speaker Change: Thank you tore Tien tsin yen.
Speaker Change: Thank you Sunday to Wednesday, Aqua hires you also with Keyshawn Johnson.
Speaker Change: Johnson Jefferies element Shlomi includes <unk> <unk> of Goldman <unk> Hydrogel Gulf of Johan.
Speaker Change: Thank you Sir.
Speaker Change: Thank you mentioned before taking my questions I have two questions here first as you have shared a lot about our recruitment trend.
Year to date, your sort of appetite skew year can management share more detailed color about the recruitment demand between different.
Speaker Change: Enterprise size and dose with different industry and more specifically how should we think about the sustainability.
Speaker Change: The demand outlook.
Speaker Change: Question I guess regarding the.
Speaker Change: The paying ratio and <unk> on the platform.
Speaker Change: For this year, how we're going to plan to increase the monetization rate our <unk> platform. Thank you.
Speaker Change: Good afternoon.
Speaker Change: Thank you.
Speaker Change: <unk> report.
Speaker Change: Yeah.
Speaker Change: Julian.
Speaker Change: <unk> cultural fit onto chunky chunky, Georgia.
Speaker Change: Janet Rachel King Antonio focus near term on the job at <unk>.
Speaker Change: Jesus.
Speaker Change: You bet.
Speaker Change: Big picture.
Speaker Change: Got it.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Speaker Change: So this year's screening recruitment season compared to last year.
Speaker Change: We find that the sequential trends have been quite strong.
Speaker Change: One memory.
Speaker Change: Alight.
Speaker Change: Steve.
Speaker Change: The 14th.
Speaker Change: Before and after the extreme heat.
Speaker Change: Growing faster so this year the sequential growth was more than 173%.
Speaker Change: Last year, 141%. So this is a big piece.
Speaker Change: Value.
Speaker Change: Hi, everyone.
Speaker Change: Yes sure.
Speaker Change: Yes, I don't know.
Speaker Change: If you put them up.
Speaker Change: And as you point out.
Speaker Change: You said it.
Speaker Change: Yes.
Speaker Change: Some of our cash day with Q4 the.
Speaker Change: Sure Jonathan.
Speaker Change: White collar and necessary.
Speaker Change: Stable stably.
Speaker Change: Recovery.
Speaker Change: Alright.
Speaker Change: The AI related jobs have been.
Speaker Change: Helping with some subsectors whatsapp in Yesterdays Internet to start here recently.
Speaker Change: These will be up to one hour.
Speaker Change: Sure.
Speaker Change: We can cut off 10 partners in China, but it's also something that can be changed.
Speaker Change: Yes, Josh.
Speaker Change: Right.
Speaker Change: One important point is that compared to.
Speaker Change: Yes.
Speaker Change: This quarter, our overall cash caffeine.
Speaker Change: Okay.
Speaker Change: Showing accelerating growth.
Speaker Change: Yes.
Speaker Change: Bob.
Speaker Change: Yeah.
Speaker Change: Whats your mail.
Speaker Change: Aggressive.
Speaker Change: Patrick the Shaw box with our country.
Speaker Change: Yes.
Speaker Change: Hello, everyone.
Speaker Change: Absolutely.
Speaker Change: How much do you charge for that.
Speaker Change: I appreciate it.
Speaker Change: Yes.
Speaker Change: Hey, Tom.
Speaker Change: Aggressive with the Shanghai.
Speaker Change: Yeah.
Speaker Change: Josh.
Speaker Change: Okay.
Speaker Change: What's your thought.
Speaker Change: Stay cool.
Speaker Change: But on the whole issue playful.
Speaker Change: You might have guessed.
Speaker Change: And finally.
Speaker Change: Uh huh.
Speaker Change: Pay ratio.
Speaker Change: Okay.
Speaker Change: And Ah.
Speaker Change: Our per site they don't have a very.
Speaker Change: Motive to increase our pool very aggressive.
Oh, I had which may see Macao, we across different industries and different size of companies. So I will give them space too.
Speaker Change: Two to improve together so last year, we saw some good growth on that side, but.
Speaker Change: And also stabilized and paying ratio I don't have really.
Speaker Change: Big aggressive path to accelerate the monetization just waiting for things to come.
Barrick's again.
Speaker Change: Sure.
Speaker Change: Doyle.
Speaker Change: Yeah sure.
Speaker Change: You mentioned the model.
Speaker Change: Good luck.
Speaker Change: Yes.
Speaker Change: Well, yes, let me Sean.
Speaker Change: Yes.
Speaker Change: So.
Speaker Change: Sure Julian Astragal mandates. These symptoms are all up.
Speaker Change: Sure.
Speaker Change: Sure.
Speaker Change: Hopefully this key element.
Speaker Change: Sure sure.
Speaker Change: And the pipeline.
Speaker Change: Mhm.
Speaker Change: I would rather to look at things.
Speaker Change: On the site, we are able to provide our service to a different kind of users, especially enterprises are memorial Ken can provide service to different kind of enterprises.
Speaker Change: There is a number.
Speaker Change: Sure.
Speaker Change: Accordingly opening in the past two years.
Speaker Change: We have accumulatively more than 6 million newly new enterprises and.
Speaker Change: And you paid enterprise customer enterprise numbers increased by $1 1 million I hope this data could mean something.
Speaker Change: Sure.
Speaker Change: Have you.
Speaker Change: Gross potential.
Speaker Change: Typically that inventory and Thats my answer to your question is.
Speaker Change: Okay.
The next question.
Speaker Change: Thank you.
Speaker Change: Next question comes from the line of Wei Cheng from UBS. Please ask your question Lee.
Speaker Change: Hey, Charles I'll ego.
Speaker Change: Gotcha.
Speaker Change: Where youll Donald Lindsay, Sean Sean Joe Andrew Fay Andre.
Michelle: Michelle Ladies gentlemen, standoff will go to Matt.
Ghansham: Hello Ghansham.
Speaker Change: No <unk>.
Speaker Change: Uh-huh Michel to either use all the helpful.
Johnson: Bulk of autonomous vehicles with Johnson <unk> Yang with Stifel. That's actually will go with you to rabobank hasn't mcauley.
Speaker Change: Policy count.
Johnson: Glen Johnson <unk> Johnson I'm on the line.
Joseph: Joseph Your line is open.
Speaker Change: Hello, <unk> with some call Nicole found quit.
Speaker Change: Yes, yes.
Speaker Change: I'll bore Pasha will do John Kita, So there's only outgrew hardest Amanda So let me add something Mark how do you land.
Speaker Change: Yeah sure sure Gabriella.
Speaker Change: With Keybanc.
Speaker Change: Thank you management for taking my question.
Speaker Change: Firstly I wanted to ask what's our current customer acquisition cost.
Speaker Change: And how does it compare to a few years ago.
Speaker Change: If we look at 2025.
Speaker Change: Are there any major marketing or promotion plans that we should be aware of.
Speaker Change: Given the continued margin expansion over the past few years.
Speaker Change: How should we think about the long term sustainable margin level for the company.
Speaker Change: Second on the Blue collar business I'm wondering if management could share the revenue contribution and client feedback from our <unk> program.
Speaker Change: Our strategic focus on planning for our Blue collar business among other new initiatives for this year and how should we think about the change in revenue mix from the Blue collar segment. Thank you.
Speaker Change: Well also to the first question.
Speaker Change: Simply speaking.
Speaker Change: There is no big marketing campaign.
Speaker Change: In 2025.
Speaker Change: We are still at a faster user growth stage, our user growth target for this year.
Speaker Change: Is set as Oh.
Speaker Change: Over $35 million.
Speaker Change: Above for 2025 in.
Speaker Change: In terms of the.
Speaker Change: Selling marketing to our business.
Speaker Change: Steel with business leverage traffic acquisition for user today.
Speaker Change: Compared with the prior years is much lower because of this is mainly because of our brand awareness. So the margin.
Speaker Change: So to the overall selling marketing.
Speaker Change: As a percentage of our total revenue we.
Speaker Change: We continue to see this percentage going up.
Speaker Change: Except a full marketing other major cost and expenses items like.
Speaker Change: Cox.
Speaker Change: Sales expense.
Expenses too.
Speaker Change: The revenue and also R&D expenses, all well under control. So we're looking at the gross margin and the operating margin.
Speaker Change: Are all expected to further improve for the full year.
Speaker Change: As we communicated.
Speaker Change: <unk> lost.
Speaker Change: Earnings call.
Speaker Change: We hope to secure.
Speaker Change: High quality Bottomline growth first then we would hope to actively look for additional upsides.
Speaker Change: We said over a full year.
Speaker Change: non-GAAP operating profit target.
Speaker Change: 3 billion RMB.
Speaker Change: For 2025.
Speaker Change: Is 30% higher than 2000.
Speaker Change: Sorry, two 3 billion.
Speaker Change: RMB.
Speaker Change: non-GAAP operating profit for 2024.
Speaker Change: Lastly, our share based compensation expenses.
Speaker Change: As I just mentioned.
Speaker Change: In the prepared remarks of this.
Speaker Change: Expenses will decline sequentially.
Speaker Change: Which makes our GAAP based our bottom line.
Speaker Change: Sure.
Speaker Change: GAAP base.
Speaker Change: Bottom line net profit.
Speaker Change: Even the higher growth.
Speaker Change: Thats all my comments to the margins at.
Speaker Change: Our financial focus is for 2025.
Speaker Change: Okay.
Speaker Change: Hi, Bob.
Speaker Change: Shifting to Q2 with us.
Speaker Change: Jacob.
Speaker Change: Sure.
Speaker Change: Yes.
Speaker Change: Hello Luca.
Speaker Change: Yeah.
Speaker Change: Yes.
Speaker Change: Helping to evolve.
Speaker Change: She shopping to can we get it.
Speaker Change: Given the volatile.
Speaker Change: Volatile accounts.
Speaker Change: Yes.
Speaker Change: Welcome to you totally got it.
Speaker Change: Amongst several deals.
Speaker Change: How about in Europe.
Speaker Change: Sundar.
Speaker Change: You bet Joe.
Speaker Change: Nonetheless homes to diesel.
Speaker Change: Neutral.
Speaker Change: Yes.
Speaker Change: Josh.
Speaker Change: Thank you John.
Speaker Change: Switching to global jet.
Speaker Change: Got it Thats helpful.
Speaker Change: So just let me know.
Speaker Change: Sure.
Speaker Change: Sure Judah.
Speaker Change: No.
Speaker Change: Hello.
Speaker Change: So far that tissue.
Speaker Change: Hey, guys.
Speaker Change: So it will be a lot.
Speaker Change: Maybe we haven't seen.
Speaker Change: Got it.
Speaker Change: Please proceed.
Speaker Change: That's it.
Speaker Change: Yes.
Speaker Change: Johan here.
Speaker Change: How are you.
Speaker Change: And with that general staffing on Adobe delivered.
Speaker Change: And that was helpful.
Speaker Change: But again shocks.
Speaker Change: You see the oil changes about commoditization.
Speaker Change: Commodity internationally.
Speaker Change: Hey, guys, just neocart without them.
Speaker Change: Thank you Sir.
Speaker Change: Can I ask you to death.
We are small.
Speaker Change: The charges.
Speaker Change: <unk> nominal GDP and therefore.
Speaker Change: Well I believe Fox renewal date.
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: <unk>.
Speaker Change: Sure sure.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you for remembering.
Speaker Change: Which we have been talking about.
Speaker Change: So for the flat conflict Hendawi Ocean project, which is paid.
Speaker Change: For those.
Speaker Change: Agents with massive hiring demand so last year, we saw under our contract.
Speaker Change: Full year contract I believe a ship more than 200 million. So I think any new business.
Speaker Change: More than 2%.
Speaker Change: Any contribution in this group.
Speaker Change: Good and valuable input so.
Speaker Change: And also in the fourth quarter accumulated agents, who have joined us.
Speaker Change: Improved by 21% sequentially.
Speaker Change: More than 40 million top secret.
Speaker Change: Okay.
Speaker Change: And we used to develop them into AI I believe since March.
Speaker Change: You had some change in the past those will trend where people bought agencies have always have their advantages.
Speaker Change: New guys, who have shorter period, which guarantees state.
Speaker Change: In the past they don't have demand today spend now please.
Speaker Change: Empowerment, AI potentially to change to be equal so.
Speaker Change: Okay.
Speaker Change: When we.
Speaker Change: <unk>, we didn't foresee this I know with potential changes.
Speaker Change: We'll keep you updated and earning progress and also <unk>.
Speaker Change: Keep our investment borrowings into postal service season placement.
Speaker Change: Related services.
Speaker Change: That's my answer.
Speaker Change: And given the 10 question I'll try to I think Thats. Our next last question for today.
Speaker Change: Thank you that concludes today's question and answer session. At this time I will turn the conference back to went back for any additional or closing remarks.
Speaker Change: Thank you once again for joining us today, if you have any further questions. Please contact our team directly.
Speaker Change: Antibodies Metro region. Thank you.
Speaker Change: Thank you for your participation in today's conference. This does conclude the program you may now disconnect.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: [music].