Q3 2025 Kanzhun Ltd Earnings Call
Speaker #1: Presentation will be followed by a question-and-answer session. Today's conference is being recorded. At this time, I'd like to turn the conference over to Ms. Wenbei Wang, Head of Investor Relations.
Speaker #1: Please go ahead, ma'am.
Speaker #2: Thank you, Operator. Good evening and good morning, everyone. Welcome to our third quarter 2025 earnings conference call. Joining me today are our founder, chairman, and CEO, Mr. Jonathan Zhang Zhao, and our director and CFO, Mr. Phil Zhang.
Speaker #2: Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on maintaining current expectations and observations that involve long-term and unknown risks, uncertainties, and other factors not under the company's control. These factors may cause actual results, performance, or achievements of the company to be materially different.
Speaker #2: The company's culture is not to place undue reliance on forward-looking statements and does not undertake any obligation to update its forward-looking information. Except as required by law, during today's call, management will also discuss certain non-GAAP financial matters for comparison purposes only.
Speaker #2: For that mission of non-debt financial matters and the reconciliation of debt to non-debt financial results, please see the earnings release issued earlier today. In addition, a webcast replay of this conference call will be available on our website at ir.jping.com.
Speaker #2: Now, I will turn the call to Jonathan, our Founder, Chairman, and CEO. Hello, everyone.
Speaker #3: 大家好，欢迎参加我们公司2025年三季度业绩发布会。不仅代表公司全体员工，管理层和董事会向长期信赖我们的用户持续支持我们的投资人致以诚挚谢意。
Speaker #2: Thank you for joining our company's third-quarter 2025 earnings conference call. On behalf of the company's employees, management team, and board of directors, I would like to extend our sincere gratitude to our users, investors, and friends who have continuously believed in and supported us.
Speaker #3: 我想简要介绍本季度的主要经营成果与业务进展。包括三个方面：第一，需求回暖带动三季度业绩加速增长；第二，在不同维度上，招聘需求的变化特点；第三，从产品技术等角度看，AI融入公司业务的进展。
Speaker #2: I will briefly walk through our key operational results and business progress this quarter, focusing on three areas: first, recovery in demand through an accelerated growth in our third quarter performance; second, the evolving characteristics of recruitment demands across different dimensions; third, progress in integrating AI into our products, technology, and overall business operations.
Speaker #3: 先说一下业绩的数据。三季度公司实现收入21.6亿元，同比增长13.2%。增速较上季度有所提升。扣除股权激励费用及理财等非经常性收益后，经调整营业利润为9亿元，同比增长49.3%。
Speaker #2: Let's start with the financial performance. In the third quarter, we generated a total revenue of RMB 2.16 billion, up 13.2% year on year, with growth accelerating from the previous quarter.
Speaker #2: Excluding share-based compensation expenses and other incomes, such as investment gains, adjusted operating profit reached RMB 900 billion, up 49.3% year-on-year.
Speaker #2: Our GAAP net GAAP净利润为7.8亿，同比增长67.2%。净利润率达到35.9%。其中一部分原因是受益于股权激励费用的下降。本季度股权激励费用为2.2亿元，已经连续三个季度环比减少。同比降幅也达到21%。 profit was RMB 780 billion, up 67.2% year on year, with a net profit margin of 35.8%. Partial of this improvement was attributable to a decrease in share-based compensation expenses, which was RMB 220 million this quarter, marking the third consecutive quarter of sequential decline and the year-on-year drop of 21%.
Speaker #3: 三季度业绩的增长主要来自于两个驱动因素：首要因素仍然是公司渗透率和市场份额持续提升。而带来的用户增长。
Speaker #2: The growth in the third quarter was driven by two key factors. The first and most important driver was continued user growth, supported by our increasing penetration and spending market share.
Speaker #3: 一到十月累计新增的完善用户超过四千万人，三季度BOSS直聘APP端平均的月活跃用户规模即MAU达到了6,382万。
Speaker #2: From
Speaker #2: From January to October, we acquired over 40 million newly verified users. In the third quarter, the average number of verified monthly active users reached 63.82 million on the BOSS?? app.
Speaker #3: 在用户规模增长的同时，用户活跃度也非常好。根据第三方数据，DAU跟MAU的比例关系始终保持在一个较高的行业领先水平。
Speaker #2: While the
Speaker #2: Users are growing, and user activities are also strong. According to third-party data, our DAU to MAU ratio has maintained a high, industry-leading level.
Speaker #2: The second driver was the rebound in enterprise-side demand, which has also helped improve data in the monetization side. In Q3, the newly posted job positions increased 25% year on year, while both the number of recruiters posting new jobs and the average number of new positions posted per recruiter grew steadily, compared to the previous quarter and the same period last year.
Speaker #3: 七月到九月，招聘者一侧的日均活跃用户环比增幅超过了在求职者一侧。这在过去的三年是首次出现。
Speaker #2: From July to September, the average number of daily active enterprise users grew at a faster pace sequentially than job seekers, marking the first time this has happened in three years.
Speaker #3: 平台的供求关系，也就是招聘者跟求职者之间的比例关系，从而得到了进一步改善。
Speaker #2: The supply-demand balance on our platform, meaning the ratio of enterprise users to job seekers, continued to improve.
Speaker #2: By September 30, the number of paid enterprise customers in the 12 months grew 13.3% year on year to 8.6 million.
Speaker #3: 整个三季度付费的用户的付费率在同比跟环比上都有增加。
Speaker #2: Over the entire quarter, the paying ratio among quarterly active users increased both year-on-year and quarter-on-quarter.
Speaker #2: The second agenda item focuses on observing enterprise current demand in this quarter from multiple perspectives.
Speaker #3: 从行业的维度看，蓝领的收入增速持续领跑。三季度蓝领的收入占比创历史同期的新高。其中制造业的景气程度最好。已经连续五个季度在收入增速的维度看，居于我们细分各行业的首位。
Speaker #2: From the industry perspective, blue-collar revenue growth continued to lead, with its revenue contribution reaching a record high in the third quarter. The manufacturing industry remains the most revised sector, topping the industries in revenue growth for five consecutive quarters.
Speaker #3: 借此机会，我想稍微回顾一下三年前公司服务于制造业求职者跟招聘者的整个战略，在优先级上分为三个阶段。
Speaker #2: Taking this opportunity, I would like to do a brief review. Three years ago, the company's strategy for serving manufacturing job seekers and recruiters was divided into three stages in terms of priority.
Speaker #3: 第一个阶段，首先要改善蓝领工人网络求职环境。
Speaker #2: The
Speaker #2: The first stage is to improve the online job search environment for blue-collar workers.
Speaker #3: 在先污染后治理还是先治理后经营，我们选择了先治理后经营的路子。
Speaker #2: Between the passage of pollution-first and managed second, our managed-first and profitable second, we choose the second path.
Speaker #2: The second stage is to 第二个阶段就是发展整个平台的制造业招聘者和求职者双端的用户规模。第三个阶段就是在合理的时候寻求商业利益。 develop the user scale of double-size users on the platform, and the third stage is to pursue commercial benefits in a reasonable scale.
Speaker #3: 2022年到现在，我们启动了净化蓝领工人求职环境的海螺计划，追求求职者职位待遇等真实性，打击虚假信息，增进用户的信任。三年以来，这个过程非常艰苦，它的成效也逐步地显现。
Speaker #2: In
Speaker #2: In 2022, we launched the Coach project to purify the job search environment for blue-collar workers, pursuing the authenticity of recruiters' job positions and compensation, combating false information, and increasing user trust.
Speaker #2: Over the past three years, the process has been extremely challenging, and the results have gradually emerged.
Speaker #2: ??????????????????????????????????????????????????????????????Transportation, logistics and warehousing, and service industries also delivered solid overall performance. Among the white-collar sectors, industries such as artificial intelligence, internet service, lifestyle service, new retail, and gaming are experiencing leading growth.
Speaker #3: 其中白领这部分有一件事值得提一下，就是中小企业的参与明显增多。即付费用户数的快速的增加，客单价的趋稳，呈现出与往常不太一样的特点。这反映出这在一定程度上反映出白领创业的生态有正在恢复的迹象。
Speaker #2: One
Speaker #2: One thing worth mentioning among the white-collar segment is the notable increase in participation from small and medium-sized enterprises in the white-collar industry.
Speaker #2: With paying user numbers growing quickly, while the average spending per customer remains stable, this reflects an opposite trend to previous patterns. This, to a certain level, reflects a revival of the white-collar entrepreneur ecosystem.
Speaker #3: 从城市的县级跟企业的规模来看，一线城市的需求回暖，二线城市比较稳定。三线及三线以下的城市的收入占比仍然在持续提升。 在不同的规模的企业中，中大型企业在三季度增速最快，也就是我们统计500人到1万人之间的这个企业规模。其次的增速是小微企业，再其次的是超大规模的企业。
Speaker #2: From the perspective of city tiers and company size, demand in cheaper cities is rebounding. Tier 2 cities remain stable, and the revenue contribution from Tier 3 and Tier 3 below cities continues to rise.
Speaker #2: Among enterprises of different sizes, mid to large enterprises, which means employees between 500 to 900, are growing the fastest, followed by small and micro enterprises, and then very large enterprises.
Speaker #3: 第三个报告事项是从产品技术等角度看一下AI融入公司业务后的一些进展。为求职者服务侧有两件事值得说一下。
Speaker #2: The third agenda item will use...
Speaker #2: The progress we made since AI was integrated into the company's business from a product and technology perspective. On the job seeker service side, there are two things worth mentioning.
Speaker #3: 首先是经过一段时间的持续迭代，一个AI求职助手已经面向所有求职者，全量上线服务。
Speaker #2: First, after a period of continuous iteration, an AI job search assistant has been fully launched for all job seekers.
Speaker #3: 目前它可以为用户推荐职位，解答疑问，也可以为用户提出关于如何优化简历的一些建议。
Speaker #2: Currently, it can recommend positions for users, answer questions, and also provide suggestions on how to optimize their resumes.
Speaker #2: In the third quarter, not only was the full rollout of this product achieved, but the number of interactions per user with this AI job search assistant also showed a significant increase.
Speaker #3: 然后是我们也在持续的优化做了一段时间的AI模拟面试。三季度的话完成模拟面试的求职者数量变得更多，与此同时，这些求职者在活跃度和他们的达成量的环比上也持续的在提升。
Speaker #2: And then we have
Speaker #2: We have also been continuously optimizing the AI interview coaching feature. In the third quarter, the number of job seekers who completed the mock interviews showed further improvement, and their activity level and conversion rates continued to improve compared to the previous quarter.
Speaker #3: 对招聘者的服务侧有多个AI产品逐步落地提供服务。今天来说四个方面。
Speaker #2: On
Speaker #2: On the recruiter service side, multiple AI products have been gradually launched to provide services. There are four aspects to mention.
Speaker #3: 第一个是，一项名为沟通助手的AI产品，正在逐步的嵌入现有的商业产品道具当中。从结果来看，这些道具在平均的达成效率提高了7%。
Speaker #2: First, the AI communication assistant feature is being gradually integrated into existing commercial value-added products. As a result, the average mutual achievement conversion ratio of these products has increased by 7%.
Speaker #3: 第二个是，一项名为AI塑胶的产品，经过持续的优化，目前已经处在一个灰度测验当中。实验表明，这个产品不仅可以帮助平台，更好的理解招聘者的意图，而且可以在全平台的求职者当中进行比对，从而提高了匹配的准确度。目前参与灰度测试的招聘者，他们的重复使用率在不断的提升。
Speaker #2: Second, a product called AI Quick Hiring, after continuous optimization, is currently under phased rollout. Experiments show that this product not only helps the platform better understand recruiters' intentions but also allows for comparison among all job seekers on the platform.
Speaker #2: Thereby improving matching accuracy. Currently, the reuse rate among recruiters participating in the phased rollout testing is steadily increasing. Third, we have extended.
Speaker #3: 第三，我们为一部分在校园招聘侧的知名客户拓展了AI面试的功能，比如说可以支持多轮的追问，比方说可以定制面试官形象等等。这些客户对学生的吸引力非常强，在短时间内投递量非常大。而作为雇主侧，他们在校园招聘活动中的压力就很大。这些发展了的AI服务缓解了压力。
Speaker #2: the AI interview feature to a number of well-known customers from the Tampa recruitment side. For example, the AI interview can support multiple rounds of follow-up questions and customized interviewer profiles.
Speaker #2: This client has a very strong appeal to students, leading to a high volume of applications in a short time. This significantly increases pressure for recruiters during the Tampa recruiting activities.
Speaker #2: The developing AI services have alleviated this pressure. Fourth, we are
Speaker #3: 第四，我们在高端白领以及精领和蓝领餐饮业、制造业等等不同的招聘场景，分散的谨慎的探索偏AI托管形态的招聘服务，以及探索AI支持下的批量交付服务。目前也取得了一些收益。
Speaker #2: Cautiously exploring AI hosting recruitment services and AI-powered bulk placement solutions in diverse recruitment scenarios, such as high-end white-collar and gold-collar positions, as well as low-collar roles in the catering and manufacturing industry.
Speaker #2: These initiatives are gradually generating benefits.
Speaker #2: Among all those 在以上的招聘者侧的AI服务当中，我们都非常注意的要告知求职者，你正在以及将与一个AI进行沟通。那么我们给求职者提供了选择关闭的入口按钮，实际上有一些求职者会选择拒绝跟机器人进行沟通，也有求职者愿意跟机器人进行沟通。这方面的例子我们也正在不断的收集。 enterprise side AI services, we have been quite cautiously which we allow the job seekers to know whenever they are communicating with an AI service, and they have the option to close the service they have the button.
Speaker #2: And sometimes someone might choose to close, but someone may choose to continue the communication, and we are continuously collecting related examples.
Speaker #3: 我们也不仅是简单的请求职者对于是否与AI进行沟通做一个选择，来保障他的权利。不止如此，我们也持续观察在AI的介入之后，究竟对于双边的匹配会发生怎样的影响。尤其是不仅是发生在招聘者跟求职者个体之间，而是当双边大规模的使用了AI的帮助，究竟对招聘和求职这两侧的生态关系会产生什么影响。我们也在保持着谨慎的观察和数据的收集工作。
Speaker #2: We not only provide job seekers with the option to communicate with AI to guarantee their interest, but we are also continuously observing, with the intervention of AI, what kind of impact this will have on mutual matching. This analysis is not only from the individual job seeker or recruiter perspective, but also from a scalable dual-side situation.
Speaker #2: And what kind of impact will this have on our ecosystem from a job-seeking and recruitment perspective? We are continually observing and collecting data.
Speaker #3: 总结来看，三季度的业绩保持了高质量的增长，在用户增长、商业化与AI技术落地方面都取得了扎实的进展。公司在10月份完成了一个约8,000万美元的年度派息，未来我们还会继续聚焦在核心业务能力的提高上，并且积极履行对股东的回报责任。我的部分就介绍到这里，接下来由我们的CFO Phil为大家介绍我们的财务情况。
Speaker #2: In summary, in the third quarter, we delivered high-quality growth with solid progress across user growth, commercialization, and AI technology implementation. In October, the company completed an annual dividend payment of approximately $80 million.
Speaker #2: Looking ahead, we will continue to focus on strengthening our core business capability while actively fulfilling our commitment to shareholders. That concludes my part of the call.
Speaker #2: I will now turn it over to our CFO, Phil, for the review of our financials. Thank you.
Speaker #2: you. Thanks, Jonathan.
Speaker #3: Hello, everyone. Now, let me walk through the details of our financial results for the third quarter of 2025. In this quarter, we delivered high-quality and sustainable top-line and bottom-line growth.
Speaker #3: Our revenue reached R&B 2.2 billion this quarter. With growth accelerating to 13% year on year, the faster revenue growth this quarter was primarily driven by higher enterprise user growth, as well as improved monetization levels due to the recovering hiring demand.
Speaker #3: Our commercialization strategy, grounded in ecological balance, enabled us to effectively and sustainably improve the user payment ratio within a relatively better hiring environment. The growth in paid enterprise customers grew by 13% to 6.8 million for the 12 months ended September 30, demonstrating our capability and potential to enhance monetization levels.
Speaker #3: Revenue from middle-sized accounts showed continued growth momentum, with revenue contribution in this quarter up by 2.2 percentage points, while key accounts growth remained stable.
Speaker #3: As a result of the structural mix shifting, the overall ARPPU remains stable. Moving to the cost side, total operating costs and expenses decreased by 7% year on year to RMB 1.5 billion in this quarter.
Speaker #3: Share-based compensation expenses dropped by 21% year-on-year and 6% quarter-on-quarter to RMB 216 million, shrinking for the third consecutive quarter on both absolute amount and percentage of revenue.
Speaker #3: Excluding share-based compensation expenses, adjusted income from operations grew by 49% to R&B 904 million and our adjusted operating margin reached 41.8% up by 10.1 percentage points year on year and a relatively flat quarter on quarter.
Speaker #3: Cost of revenues decreased by 2% year-on-year to RMB 308 million in this quarter, mainly due to the decrease in operational employee-related expenses as a result of improved operational efficiency. This improvement comes as we continue to engage AI in our daily operations.
Speaker #3: Gross margin increased by 2.2 percentage points year on year and 0.4 percentage points quarter on quarter to 85.8%. Sales and marketing expenses decreased by 25% year on year to R&B 394 million during this quarter.
Speaker #3: As we don't have sports events or marketing campaigns this year, even if we exclude the sports sponsorship costs, our adjusted sales and marketing expenses in this quarter decreased 15% year on year.
Speaker #3: While we still maintain robust user growth, we have double confirmed our sustainable increase in marketing efficiency due to our strong brand recognition and network effect. Our R&D expenses decreased by 12% year on year to RMB 408 million in this quarter.
Speaker #3: Excluding share-based compensation expenses, our adjusted R&D expenses decreased by 8% year-on-year to RMB 331 million in this quarter, and they remained relatively flat sequentially.
Speaker #3: Our G&A expenses increased by 28% to R&B 367 million in this quarter, primarily due to a one-off impairment of intangible assets, partially offset by a decrease in employee-related expenses.
Speaker #3: Excluding the impairment, our G&A expenses decreased both year on year and sequentially. Our interest and investment income in the quarter increased by 43% year on year to R&B 228 million this year.
Speaker #3: Primarily due to a partial disposal of an equity investment and the increased interest from HK$2.2 billion Hong Kong share offering proceeds in early July.
Speaker #3: Our net income increased by 67% to R&B 775 million in this quarter, with adjusted net income increasing by 34% to R&B 992 million. Net margin improved by 11.6 percentage points year on year to 35.8%, while adjusted net margin reached 45.8%, up 7.2 percentage points year on year.
Speaker #3: Both of them have maintained sustainable improvement over the past six consecutive quarters. Net cash provided by operating activities reached RMB 1.2 billion in this quarter.
Speaker #3: Up 45% year-on-year. As of September 30, 2025, we continue to maintain a strong cash position of RMB 19.2 billion. And now for our business outlook.
Speaker #3: For the fourth quarter of 2025, we expect our total revenue to continue the growth momentum and reach between R&B 2.05 billion and R&B 2.07 billion, with a year-on-year increase of 12.4% to 13.5%.
Speaker #3: With that, we conclude our prepared remarks. Now we would like to answer any questions. Operator, please go ahead with the call.
Speaker #2: Thank you. We will now begin the question-and-answer session. To ask a question, please press *11 on your telephone and wait for your name to be announced.
Speaker #2: To withdraw your question, please press star 11 again. We will now take our first question from the line of Eddie Wang from Morgan Stanley.
Speaker #2: Please go ahead, Eddie.
Speaker #1: ???????????????????????????????????????????????????????????9?10???????????????????????????????????????????????????????????????????????????????????????????????????????????????????KA?????????????????????????????????????????????????????????????????????? Thank you, management, for taking my question. I have two questions. First, what's the overall recruitment demand recently? We noticed that the unemployment rate in September and October is improving.
Speaker #1: Do you think this is mainly due to the seasonal factors, or is the improving trend a leading indicator of macro recovery? What are the driving factors behind boss accelerating growth in the third quarter?
Speaker #1: My second question is that, as we are approaching the end of the year, what's your perception of the KA renewal willingness right now? Are there any noticeable trends in customer renewal rates or the renewal amounts?
Speaker #1: Thank you. 从我们的数据看，企业的招聘行为在今年三季度确实有较好的恢复。
Speaker #3: From our data perspective, the recruitment activities from enterprises indeed recovered in the third quarter.
Speaker #3: ?????????MAU????????????The rate of monthly active users of the enterprise side is faster compared to the job seeker side. The pressure from
Speaker #1: 实际上求职者这一侧的压力给平台带来的压力也在减缓。
Speaker #3: The job seeker side of our platform has been alleviated.
Speaker #1: 我们大家如果还记得的话，实际上21年22年这两年有一些毕业生不好找工作，疫情期间遇到困难。如果我们记得的话，23年我们所期待的某种reopening没有如愿发生。有一些年轻人继续遇到困难。
Speaker #3: If we can recall that back in 2021 and 2022, it was a bit difficult for fresh graduates to find a job. In 2023, the reopening that everybody was expecting did not happen as we anticipated.
Speaker #3: So people, young people, especially young people, it's a little bit difficult to find a job. This.
Speaker #3: This year, since July for 今年7月份为例，应届生在平台表达找工作的需求跟去年比有两位数的下降。 example, the fresh graduates, their expression for job seeking demand compared to the same period last year has declined by double digits.
Speaker #1: 与此同时，企业侧发布职位愿意招应届生跟去年同期比有两位数的百分比的提高。
Speaker #3: 另外，
Speaker #3: From the enterprise side, the number of companies that have posted job openings for fresh graduates has increased by double digits. Double digits.
Speaker #1: 所以我们从BC两端的情况，特别是看了关于应届生的招聘和求职情况，我们比较明确地感到我们比较明确地感到积累了几年的压力，在今年的Q3看到了很大的好转。
Speaker #3: The situation from both the job seeker and recruiter side, especially from the fresh graduates, shows that we quite clearly felt the pressure, which has been accumulating for several years, is reduced a lot in the third quarter.
Speaker #1: 那么整个三季度不仅是活跃的用户的BC比比往年好，而且新增用户的BC比也持续改善。因为往年好，而且三季度好于二季度。所以这些信号我觉得都是让我们非常有信心。
Speaker #3: In the third quarter, returning the ratio between job seekers and recruiters among active users improved compared to last year. The newly added user ratio also improved and also the third quarter is better than the second quarter, which gives a lot gives us continued confidence.
Speaker #1: 很容易理解这样一个供求关系的变化对于我们来说实际上公司看到企业的招聘需求在恢复，付费的情况在变好，付费率在变好。所以实际上这样的恢复对于写作生意肯定是有帮助的。
Speaker #3: So we quite easy
Speaker #3: To understand that, based on the improving change in the supply and demand balance, there has been a recovery on the enterprise side, along with an improvement in the pay ratio, which has also helped with our overall business operation.
Speaker #1: 许多同仁都知道去年的三季度，尤其是七八月份的时候，实际上情况比较差，不太一样。所以我们还专门的也跟23年的情况审慎起见，跟23年的情况也做了一些比较。
Speaker #3: So the third quarter last year was a relatively low base. From a cautious perspective, we also compared 2023 to the same period.
Speaker #3: It was worth 值得一说的就是白领的新增职位的情况，今年的三季度跟二季度的环比要显著的快于23年。 mentioning that the recovery of the white collar for example, the newly added number of job postings for the white collar position in the third quarter increased significantly compared to the second quarter compared to 2023 same period of 2023.
Speaker #1: 所以经过这样的观察跟对比，我才在刚才的报告当中才可以说才可以说这样一个结论，叫做需求回暖带动三季度业绩加速增长。我是有这个依据的ID。
Speaker #3: So based
Speaker #3: On all these observations and comparisons, I have the confidence to conclude in my map that the improved hiring demand drove our accelerated revenue growth.
Speaker #3: That's where my confidence comes from.
Speaker #3: And now Phil will give you answers regarding the retention. O Phil, please go ahead.
Speaker #3: situation that you confirmed. 你关心的那个续约四季度了是吧？你关心的续约的这个情况，我觉得我们请我们CFO
Speaker #1: So, companies renew their annual contracts individually at different points in time, not only at the year-end, starting from the year we have witnessed an improving contract renewal rate, particularly in the third continuous quarter.
Speaker #1: For the first time in the past two years, the company-level net dollar retention rate started to bottom out. This signals a potential turning point from a previous downward trajectory.
Speaker #1: We believe this is driven primarily by improved company retention rates and their higher renewal spending. We observe that this situation is not only present at key account customers but also among small and medium-sized enterprises. Simply speaking, the companies' annual contract renewal situation improved sequentially and annually.
Speaker #1: This once again proved that the hiring demand in the economy has been recovering healthily.
Speaker #3: And that's our answer to your questions.
Speaker #3: Question, Eddie. Open to our last move on Y.
Speaker #3: to the next. Thank you.
Speaker #4: Thank you. Our next question comes from Wei Xiong from UBS. Please ask your question, Wei.
Speaker #5: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????Thank you, Man Xiong, for taking my question. Firstly, we observe that our company has continued outgrowing peers for the past few years. So if we look at the enterprise recruiting budget allocation, how much more share can we continue to gain over peers?
Speaker #5: And how do we sustain that above peers' growth going forward? And looking at next year, if the macro situation improves, will we continue to solidify our leadership?
Speaker #5: Or is it possible to see higher competition pressure because the peers may step up investments? And secondly, on the margin side, given the high base this year, how do we think about the trend for our margin next year?
Speaker #5: What are the major investment areas? For about the spending plan there? And previously, given the macro uncertainty, we said we want to, for example, in terms of sales and marketing, how do we think about prioritizing profitability?
Speaker #5: So looking at next year, are we going to continue prioritizing profitability? Or are we leaning towards investing a little bit for growth? Thank you for taking my question.
Speaker #1: 我们刚才报告过，过去12个月公司的付费客户数量增长13.3%，达到680万。我想从这儿说起。
Speaker #3: I would like to start with our number of paid enterprise customers, which grew by 13.3% to 6.8 million by the 2012 month.
Speaker #1: 实际上，这些付费客户的绝大部分是小微客户。小微企业是我们用Boss直聘自己的模式和Go to Market的策略与努力逐步发展成我们的使用者和付费者。
Speaker #3: In In a matter of fact, t, majority or nobody over 80% of these paid enterprise customers are small and micro our we use our own business model enterprises, which and go to market strategy developed over the years.
Speaker #3: ??????????????????????????????????????????????????????????????The main paid customers are developed by our own, rather than gaining the shares from our peers.
Speaker #3: Two concepts. First, I would like to clarify on is the majority of our.
Speaker #3: ??????????????????4000?????????????????????????????????????????????????????????????????????The second concept is that public data about China indicates there are over 14.4 million small and medium-sized enterprises. Our number of paid enterprise customers still represents a small percentage of that.
Speaker #3: That's why even under a relatively tight macro situation, we still have ample room to grow and transform our market share. And the logical conclusion is:
Speaker #1: 当然了，可以得出一个逻辑上的一个结论，就是当市场变好，需求回暖的时候，我们的增速会变得更好。我们的市场渗透的策略会变得更加有成效。收入也会变得更好。
Speaker #3: that when the market recovered, and when the demand improved, we can enjoy better revenue and business growth rates.
Speaker #3: But,????????????????????????????????????????????????????????????????????????????????????????????????????????????????????But on a competitive landscape perspective, we need to admit that for the customers, both we and our peers are serving, especially under economic pressure situations, then the client normally will tend to service providers who have better ROI and higher service capability.
Speaker #3: And we do have some advantages over that. And about the...
Speaker #1: 那么您也很关心利润率的事情。利润率这个事情的话，跟我们目前比较好的利润情况有关的公司层面的策略呢，回顾的话，就是在去年的时候，我们做了这么一个决定，面对一大堆的不确定性，想先拿住一个确定性，就是要保证利润。那么这一年当中呢，执行力得到了验证，所以现在看到一个不错的结果。
Speaker #3: Profitability, which you are concerned about a lot, is reflected in the current profit margin we observed. This is actually a strategic selection from our company level. Last year, we decided that facing all of these uncertainties, we wanted to ensure that the only certainty is guaranteed profit. This year, you have seen our very strong implementation capability and the realized profit number.
Speaker #1: 从本质上，公司现在的利润率水平体现了所体现的是公司的双边网络效应，是公司对于用户心智的渗透以及公司在内部运转上形成了比较高效顺畅的一个水平。这是一个综合的体现。
Speaker #3: Essentially, this very strong margin profile actually reflects our effective double-sided natural effect: our further penetration into user mindset and very efficient and smooth internal management and operation.
Speaker #3: And all those result in this high margin profile. As a result, I...
Speaker #3: can predict that the 因此我可以预测到，明年公司的利润率应该是一个继续提升的过程。 profit that the margin for next year will continue to improve. But we will not
Speaker #1: 但公司不会牺牲增长，明年的新增用户数量我觉得仍然要在3500万加这样的水平。
Speaker #3: We will sacrifice our revenue growth to achieve this profitability. So for the next year, we still want to guarantee at least 35 million newly verified users.
Speaker #3: Our pursuit of better serving users and achieving higher revenue growth actually has a higher priority compared to our pursuit of profitability.
Speaker #1: 这些是我们对于利润率这件事情的一些策略级的看法和初步的一些预测。我觉得希望能够对熊总还有对我们投资人让你们能够更清楚地看到利润率对我们来说意味着什么。
Speaker #3: That's our strategic-level view on our profitability, and we hope you and our investors can better understand your work with what profitability means to us.
Speaker #1: 这个供你参考，熊总。
Speaker #3: For your reference, and that's all of our answer to your question. Let's move on to the next one.
Speaker #2: You. Our next question comes from Timothy Zhao from Goldman Sachs. Please, go ahead.
Speaker #1: ??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????AI????????????OpenAI????????????????????????????????Merkur????????????????????????????Boss??????????????????AI?????????????????????????? Thank you, Madam, for taking my question and congrats on the solid results. Two questions from my side. First, as Zhao Zong just mentioned that we are going to explore more in the different verticals within the recruitment industry, could Madam share more progress and updates on this?
Speaker #1: potential impacts to our And what are the services and monetization into a longer term? Secondly, it's on the AI-related question. We noticed that OpenAI recently announced to enter the recruitment industry at some other AI startups like Mercer, also has been evolving its business model.
Speaker #1: Could Madam share your view on the competitive landscape between platforms, as well as the traditional recruitment and the general AI companies in the recruitment industry?
Speaker #1: Thank Kanjun? And you. 在我们尝试着把AI跟人结合起来，在业务当中做科学实验的过程中，有一些很有意思的事。我借此机会我说两件事吧。第一件事就是，有些用户他很生气的时候，他会控制不住自己，他会说一些话伤害客服人员。但是当他知道对面是AI的时候，基本没有用户会骂人，就是人类会骂人类，但是人类知道对方是AI的时候，人类就不骂了。那么最狠的一句话，嗯，就是我们的AI在跟人的交互中，被训斥的最狠的一句话就是："你这个傻AI，这是最厉害的一句。"那么这是一个我们在一些场景上用AI跟用户进行沟通的场景上的一个例子。
Speaker #3: we are trying to So when combine AI and human activities, we have some very interesting findings under our scientific example, when a customer who is quite angry and cannot contain his temper, when he is facing a customer service people, normally they could be quite aggressive, but when the customer knows that the experiment.
Speaker #3: Counterpart is AI; normally, they receive some very harsh words. So, the biggest complaint from the customer to AI is: "You are very stupid, AI." For the second example...
Speaker #1: 然后我们做这个，我们做这个AI面试，这个辅助工具来train求职者如何在不同的情况下面试，也有一个有意思的发现。就是有些求职者呢，他会一遍又一遍地跟这个机器人对话，然后他会得到不同的scores。那么当他的下一个得分小于或者等于上一个得分的时候，很多人就会停止这个不再重复这个过程了。
Speaker #3: This is for our AI interview coaching product. So a lot of services repeatedly train their interview skills. Job seekers who have used this once again, but we find out that when the job seeker's second scoring is below the first one, then they will stop this repeat.
Speaker #1: 所以你看，我平时遇到的很多例子，我说两个给你们听。一个就是人其实骂人的时候，他可能会把他的那个不好的情绪得到宣泄，但是这个功能在面对AI的时候，好像不存在了。另一个就是，一个人如果麻烦一个他的coach，两遍三遍可能还行，但是20遍的同样的事情去麻烦一个coach，他做不到，但是他可以很好意思地去麻烦一个AI20次。
Speaker #3: So So you can see the some very interesting findings I actually in our daily experiment. So people can control well control his temper once they are facing some AI, and also people who do not want to bother a real human coach very frequently, but he can do that to AI.
Speaker #1: 这是我们在过去的尝试当中遇到的一些事。这些事实际上是告诉我们说，用机器人用AI技术在非常非常古老，但是又跟我们特别相关，跟我们每个人都相关的人跟岗位的配置，上级跟下级的配置的这样一件非常serious的事上做事。我觉得我们确实需要像面对一个全新的事情那样，极为谨慎地去尝试。
Speaker #3: All these results are telling AI technology to very old, very ancient people and job matching subordinate matching for this older the superior. In this scenario, we need to be very cautious while using the new technology.
Speaker #1: So now, exciting terminology in our large model that we haven't been able to generate a killer application in our industry for three years.
Speaker #1: Actually , we are very We are not not . a hurry and in actually gave us more time to way to find a coexist with how all these new development and new technologies .
Speaker #2: In Chile . You . Can the for the dropping . A woman you you are in the different so far you easier Yu Zhang have .
Speaker #1: I think that we are certainly seeing both a narrowing in blue color and white collar recruitment, such as host cycle service or semi-cycle service.
Speaker #1: We have been hosted actively very to try out services , but quite , so , so full have far we some also cautiously achievement but still .
Speaker #1: Not in in a a stage to massively roll out this new features .
Speaker #2: So, your... your view is dropping due to... out.
Speaker #1: We also noticed that leading some who have been by who has companies their expressed interest in recruitment entering into industry technology
Speaker #1: . Synergy
Speaker #1: . Synergy empowered .
Speaker #2: Coming . So tissue you the now . Boss model .
Speaker #2: .
Speaker #1: new technology So the with
Speaker #1: level
Speaker #1: Like the mobile network and just recommendation technology combined with recruitment, the demand has generated a vast new traditional generation online recruitment model.
Speaker #2: The AI then dropping the.
Speaker #1: till Up today , my thinking of the that AI and recruitment service . The key bottleneck is not computing power .
Speaker #2: Local a women .
Speaker #1: A will have a lot of macro professionals to do the tagging, actually showing the value of the high-quality data.
Speaker #2: Without your help, we are dropping out.
Speaker #1: If high-quality data is very critical and important, then it is very important that with the foster team and other peers within our industry, we have a certain level of advantages.
Speaker #2: So, you should do it.
Speaker #1: Just question . I leverage your want to some observations . We we are noticed from our data operations express and that's that's all of our answer to your question you .
Speaker #1: . Thank
Speaker #3: you Thank .
Speaker #4: Due to time , that concludes today's constraints question and answer session . At this time , I'll turn the conference back to Wenbei Wang for any additional or remarks .
Speaker #1: Thank you
Speaker #1: If you have any further questions, please contact us. Again, for direct contact, please reach out to us. Thank you.