2023-08-29 20:49Financial Data and Key Metrics Changes - The company reported a GAAP revenue of RMB1.49 billion for Q2 2023, representing a 34% year-over-year increase and a 16% quarter-on-quarter growth [5][11] - Calculated cash billings reached RMB1.62 billion, up 65% year-on-year [5][12] - Net income for the quarter was approximately RMB310 million, with adjusted net income increasing by 135% year-on-year to around RMB570 million, marking the highest quarterly record in the company's operational history [5][15] - Adjusted operating margin improved to 29.2%, up by 8.8 percentage points year-on-year [13][15] - Cash, cash equivalents, and short-term investments totaled RMB12.8 billion as of June 30, 2023 [16] Business Line Data and Key Metrics Changes - Average monthly active users (MAU) on the BOSS Zhipin app rose to 43.6 million, up 65% year-on-year [5][11] - The revenue contribution from blue-collar users increased to over 32% of total revenues for the quarter [7] - Total paid enterprise customers reached a record-high of 4.5 million, up 18% year-on-year and 13% quarter-on-quarter [8][12] Market Data and Key Metrics Changes - Recruitment demand in sectors such as catering, hotel, tourism, beauty, personal care, and logistics has significantly increased [6] - The number of active enterprise users reached a new high, indicating a recovery in recruitment demand since the beginning of August [9] Company Strategy and Development Direction - The company continues to invest in algorithms and products to enhance service capabilities, particularly targeting blue-collar workers and SMEs [8] - The strategy focuses on increasing market share and improving technology investments to adapt to changing market conditions [35] - The company aims to capture growth opportunities in lower-tier cities and blue-collar populations [8][35] Management's Comments on Operating Environment and Future Outlook - Management noted a quick recovery in recruitment demand following the graduation season in July, with a promising upward trend observed since early August [9] - The company expects total revenues for Q3 2023 to be between RMB1.53 billion and RMB1.56 billion, reflecting a year-on-year increase of 30% to 32% [17] Other Important Information - The company has initiated a share buyback program with a total size of RMB150 million, reflecting its strong cash position and commitment to shareholder returns [40] Q&A Session Summary Question: What factors will impact white-collar recruitment demand? - Management indicated that the recovery of white-collar recruitment is influenced by macroeconomic improvements and industry recovery trends [20][22] Question: Are new annual subscription enterprise users from existing platforms or new customers? - Most new annual contract customers are converted from existing users, with an increasing trend of customers switching from competitors [20][21] Question: What strategies are in place to improve ARPU and paying ratio of enterprise users? - The company is cautious about monetizing job seekers and focuses on converting more users into paid customers [26][27] Question: What is the outlook for operating margin in the second half? - Management expects operating margins to maintain a healthy level with potential for improvement, subject to seasonality [30] Question: How does the company view its competitive advantages in the blue-collar recruitment space? - The company highlighted its strong double-sided network effect and continuous investment in technology as key competitive advantages [43][44]