Kanzhun Ltd 6-K, filed May 24, 2023
Kanzhun Ltd (BZ)
About this 6-K
Kanzhun Ltd filed this 6-K on May 24, 2023.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of May 2023
Commission File Number: 001-40460
KANZHUN LIMITED
18/F, GrandyVic Building,
Taiyanggong Middle Road
Chaoyang District, Beijing 100020
People’s Republic of China
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Exhibit Index
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| KANZHUN LIMITED | |||
| By | : | /s/ Yu Zhang | |
| Name | : | Yu Zhang | |
| Title | : | Director and Chief Financial Officer | |
Date: May 24, 2023
Exhibit 99.1
KANZHUN LIMITED Announces First Quarter 2023 Financial Results
BEIJING, May 24, 2023 – KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced its unaudited financial results for the quarter ended March 31, 2023.
First Quarter 2023 Highlights
| · | Revenues for the first quarter of 2023 were RMB1,277.5 million (US$186.0 million), an increase of 12.3% from RMB1,137.9 million for the same quarter of 2022. |
| · | Calculated cash billings1 for the first quarter of 2023 were RMB1,649.6 million (US$240.2 million), an increase of 27.7% from RMB1,291.5 million for the same quarter of 2022. |
| · | Average monthly active users (MAU)2 for the first quarter of 2023 were 39.7 million, an increase of 57.5% from 25.2 million for the same quarter of 2022. |
| · | Total paid enterprise customers3 in the twelve months ended March 31, 2023 were 4.0 million, on par with that in the twelve months ended March 31, 2022. |
| · | Net income for the first quarter of 2023 was RMB32.7 million (US$4.8 million), compared to a net loss of RMB12.2 million for the same quarter of 2022. Adjusted net income4 for the first quarter of 2023 was RMB245.0 million (US$35.7 million), an increase of 102.3% from RMB121.1 million for the same quarter of 2022. |
Mr. Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer of the Company, commented, “We are pleased to deliver a strong quarter with revenue growth starting to re-accelerate, driven by robust user growth and a rebound of recruitment demand post-spring festival. Our MAU, revenues, calculated cash billings and multiple other key metrics hit record highs in the quarter. We are confident to maintain this growth momentum and continue delivering solid results in the coming quarters.”
Mr. Phil Yu Zhang, Chief Financial Officer, added, “Our adjusted net income reached RMB245.0 million, representing a 102.3% year-on-year growth, despite the fact that the first quarter is normally a high season for marketing expenses related to strong user growth. This solid profitability mainly resulted from our enhanced brand recognition and improved marketing efficiency, which we also believe will drive our sustainable and quality growth.”
1 Calculated cash billings is a non-GAAP financial measure, derived by adding the change in deferred revenue to revenues. For more information on the non-GAAP financial measures, please see the section of “Non-GAAP Financial Measures.”
2 Monthly active users refer to the number of verified user accounts, including both job seekers and enterprise users, that logged on to our mobile application in a given month at least once.
3 Paid enterprise customers are defined as enterprise users and company accounts from which we recognize revenues for our online recruitment services.
4 Adjusted net income/loss and adjusted basic and diluted net income/loss per ADS attributable to ordinary shareholders are non-GAAP financial measures, excluding the impact of share-based compensation expenses. For more information on the non-GAAP financial measures, please see the section of “Non-GAAP Financial Measures.”
1
First Quarter 2023 Financial Results
Revenues
Revenues were RMB1,277.5 million (US$186.0 million) for the first quarter of 2023, representing an increase of 12.3% from RMB1,137.9 million for the same period in 2022.
| · | Revenues from online recruitment services to enterprise customers were RMB1,260.1 million (US$183.5 million) for the first quarter of 2023, representing an increase of 11.8% from RMB1,127.3 million for the same period in 2022. This increase was mainly driven by the user growth and recovery of recruitment demand after spring festival. |
| · | Revenues from other services, which mainly comprise paid value-added services offered to job seekers, were RMB17.5 million (US$2.5 million) for the first quarter of 2023, representing an increase of 65.1% from RMB10.6 million for the same period in 2022, mainly benefiting from expanded user base. |
Operating cost and expenses
Total operating cost and expenses were RMB1,373.7 million (US$200.0 million) for the first quarter of 2023, representing an increase of 19.9% from RMB1,146.1 million for the same period of 2022. Total share-based compensation expenses were RMB212.3 million (US$30.9 million) for the first quarter of 2023, representing an increase of 59.4% from RMB133.2 million for the same period of 2022.
| · | Cost of revenues was RMB247.2 million (US$36.0 million) for the first quarter of 2023, representing an increase of 39.4% from RMB177.3 million for the same period of 2022, primarily due to increases in server and bandwidth cost and payment processing cost. |
| · | Sales and marketing expenses were RMB628.8 million (US$91.6 million) for the first quarter of 2023, representing an increase of 20.4% from RMB522.4 million for the same period of 2022, primarily due to increases in expenses related to sales employee compensations and user acquisition. |
| · | Research and development expenses were RMB333.1 million (US$48.5 million) for the first quarter of 2023, representing an increase of 14.6% from RMB290.7 million for the same period of 2022, primarily due to an increase in share-based compensation expenses. |
| · | General and administrative expenses were RMB164.6 million (US$24.0 million) for the first quarter of 2023, representing an increase of 5.7% from RMB155.7 million for the same period of 2022, primarily due to an increase in share-based compensation expenses. |
Loss from operations
Loss from operations was RMB77.3 million (US$11.3 million) for the first quarter of 2023, compared to RMB3.3 million for the same period of 2022.
Net income/loss and adjusted net income
Net income was RMB32.7 million (US$4.8 million) for the first quarter of 2023, compared to a net loss of RMB12.2 million for the same period of 2022.
Adjusted net income was RMB245.0 million (US$35.7 million) for the first quarter of 2023, representing an increase of 102.3% from RMB121.1 million for the same quarter of 2022.
2
Net income/loss per ADS and adjusted net income per ADS
Basic and diluted net income per ADS attributable to ordinary shareholders for the first quarter of 2023 were RMB0.08 (US$0.01) and RMB0.07 (US$0.01), respectively, compared to basic and diluted net loss per ADS of RMB0.03 in the same period of 2022.
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders4 for the first quarter of 2023 were RMB0.57 (US$0.08) and RMB0.54 (US$0.08), respectively, compared to adjusted basic and diluted net income per ADS of RMB0.28 and RMB0.26, respectively, in the same period of 2022.
Net cash provided by operating activities
Net cash provided by operating activities was RMB543.9 million (US$79.2 million) in the first quarter of 2023, representing an increase of 85.0% from RMB294.0 million in the same period of 2022.
Cash position
Balance of cash and cash equivalents and short-term investments was RMB13,456.1 million (US$1,959.4 million) as of March 31, 2023.
Share Repurchase Program
In March 2023, the Company’s board of directors authorized a new share repurchase program under which the Company may repurchase up to US$150 million of its shares (including in the form of ADSs) over the next 12 months.
Outlook
For the second quarter of 2023, the Company currently expects its total revenues to be between RMB1.43 billion and RMB1.46 billion, representing a year-on-year increase of 28.6% to 31.3%. This forecast reflects the Company’s current views on the market and operational conditions in China, which are subject to change and cannot be predicted with reasonable accuracy as of the date hereof.
Conference Call Information
The Company will host a conference call at 8:00AM U.S. Eastern Time on Wednesday, May 24, 2023 (8:00PM Beijing Time on Wednesday, May 24, 2023) to discuss the financial results.
Participants are required to pre-register for the conference call at:
https://register.vevent.com/register/BI046c9777bdf4411b8a395b15e5c64a31
Upon registration, participants will receive an email containing participant dial-in numbers and unique personal PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhipin.com.
3
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollar (“US$”) amounts at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the exchange rate of RMB6.8676 to US$1.00 on March 31, 2023 as set forth in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all.
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as calculated cash billings, adjusted net income/loss, adjusted net income/loss attributable to ordinary shareholders, adjusted basic and diluted net income/loss per ordinary share attributable to ordinary shareholders and adjusted basic and diluted net income/loss per ADS attributable to ordinary shareholders as supplemental measures to review and assess operating performance. The Company derives calculated cash billings by adding the change in deferred revenue to revenues. The Company uses calculated cash billings to measure and monitor sales growth because the Company generally bills its paid enterprise customers at the time of sales, but may recognize a portion of the related revenue ratably over time. The Company believes calculated cash billings provides valuable insights into the cash generated from sales and is a valuable measure for monitoring service demand and financial performance. The Company defines adjusted net income/loss and adjusted net income/loss attributable to ordinary shareholders by excluding the impact of share-based compensation expenses, which are non-cash expenses, from the related GAAP financial measures. The Company believes that these non-GAAP financial measures help identify underlying trends in the business that could otherwise be distorted by the effect of certain expenses and facilitate investors’ assessment of the Company’s operating performance.
The non-GAAP financial measures are not defined under U.S. GAAP, and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for most directly comparable GAAP financial measures. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures has been provided in the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
4
About KANZHUN LIMITED
KANZHUN LIMITED operates the leading online recruitment platform BOSS Zhipin in China. The Company connects job seekers and enterprise users in an efficient and seamless manner through its highly interactive mobile app, a transformative product that promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process. Benefiting from its large and diverse user base, BOSS Zhipin has developed powerful network effects to deliver higher recruitment efficiency and drive rapid expansion.
For investor and media inquiries, please contact:
KANZHUN LIMITED
Investor Relations
Email: ir@kanzhun.com
PIACENTE FINANCIAL COMMUNICATIONS
Email: kanzhun@tpg-ir.com
5
KANZHUN LIMITED
Unaudited Condensed Consolidated Statements of Comprehensive Loss
(All amounts in thousands, except for share and per share data)
| For the three months ended March 31, | ||||||||||||
| 2022 | 2023 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | ||||||||||||
| Online recruitment services to enterprise customers | 1,127,318 | 1,260,057 | 183,479 | |||||||||
| Others | 10,562 | 17,489 | 2,547 | |||||||||
| Total revenues | 1,137,880 | 1,277,546 | 186,026 | |||||||||
| Operating cost and expenses | ||||||||||||
| Cost of revenues(1) | (177,348 | ) | (247,164 | ) | (35,990 | ) | ||||||
| Sales and marketing expenses(1) | (522,374 | ) | (628,838 | ) | (91,566 | ) | ||||||
| Research and development expenses(1) | (290,739 | ) | (333,068 | ) | (48,498 | ) | ||||||
| General and administrative expenses(1) | (155,687 | ) | (164,586 | ) | (23,966 | ) | ||||||
| Total operating cost and expenses | (1,146,148 | ) | (1,373,656 | ) | (200,020 | ) | ||||||
| Other operating income, net | 5,009 | 18,811 | 2,739 | |||||||||
| Loss from operations | (3,259 | ) | (77,299 | ) | (11,255 | ) | ||||||
| Investment income | 9,274 | 51,611 | 7,515 | |||||||||
| Financial income, net | 3,677 | 75,782 | 11,035 | |||||||||
| Foreign exchange loss | (442 | ) | (1,099 | ) | (160 | ) | ||||||
| Other (expenses)/income, net | (8,854 | ) | 5,642 | 822 | ||||||||
| Income before income tax expenses | 396 | 54,637 | 7,957 | |||||||||
| Income tax expenses | (12,568 | ) | (21,974 | ) | (3,200 | ) | ||||||
| Net (loss)/income | (12,172 | ) | 32,663 | 4,757 | ||||||||
| Net (loss)/income attributable to ordinary shareholders | (12,172 | ) | 32,663 | 4,757 | ||||||||
| Net (loss)/income | (12,172 | ) | 32,663 | 4,757 | ||||||||
| Other comprehensive loss | ||||||||||||
| Foreign currency translation adjustments | (44,243 | ) | (139,928 | ) | (20,375 | ) | ||||||
| Total comprehensive loss | (56,415 | ) | (107,265 | ) | (15,618 | ) | ||||||
| Weighted average number of ordinary shares | ||||||||||||
| —Basic | 869,631,088 | 865,986,168 | 865,986,168 | |||||||||
| —Diluted | 869,631,088 | 907,404,032 | 907,404,032 | |||||||||
| Net (loss)/income per ordinary share attributable to ordinary shareholders | ||||||||||||
| —Basic | (0.01 | ) | 0.04 | 0.01 | ||||||||
| —Diluted | (0.01 | ) | 0.04 | 0.01 | ||||||||
| Net (loss)/income per ADS* attributable to ordinary shareholders | ||||||||||||
| —Basic | (0.03 | ) | 0.08 | 0.01 | ||||||||
| —Diluted | (0.03 | ) | 0.07 | 0.01 | ||||||||
* Each ADS represents two Class A ordinary shares.
| (1) | Include share-based compensation expenses as follows: |
| For the three months ended March 31, | ||||||||||||
| 2022 | 2023 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Cost of revenues | 7,719 | 10,610 | 1,545 | |||||||||
| Sales and marketing expenses | 29,330 | 60,463 | 8,804 | |||||||||
| Research and development expenses | 57,415 | 90,674 | 13,203 | |||||||||
| General and administrative expenses | 38,762 | 50,544 | 7,360 | |||||||||
| 133,226 | 212,291 | 30,912 | ||||||||||
6
KANZHUN LIMITED
Unaudited Condensed Consolidated Balance Sheets
(All amounts in thousands)
| As of | ||||||||||||
| December 31, 2022 | March 31, 2023 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | 9,751,824 | 6,254,572 | 910,736 | |||||||||
| Short-term investments | 3,458,089 | 7,201,542 | 1,048,626 | |||||||||
| Accounts receivable, net | 9,862 | 13,236 | 1,927 | |||||||||
| Amounts due from related parties | 5,714 | 11,167 | 1,626 | |||||||||
| Prepayments and other current assets | 600,773 | 476,080 | 69,323 | |||||||||
| Total current assets | 13,826,262 | 13,956,597 | 2,032,238 | |||||||||
| Non-current assets | ||||||||||||
| Property, equipment and software, net | 691,036 | 749,414 | 109,123 | |||||||||
| Intangible assets, net | 10,251 | 9,712 | 1,414 | |||||||||
| Goodwill | 5,690 | 5,690 | 829 | |||||||||
| Right-of-use assets, net | 289,628 | 279,463 | 40,693 | |||||||||
| Other non-current assets | 4,000 | 4,000 | 582 | |||||||||
| Total non-current assets | 1,000,605 | 1,048,279 | 152,641 | |||||||||
| Total assets | 14,826,867 | 15,004,876 | 2,184,879 | |||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable | 185,297 | 108,925 | 15,861 | |||||||||
| Deferred revenue | 2,060,892 | 2,432,903 | 354,258 | |||||||||
| Other payables and accrued liabilities | 633,482 | 393,122 | 57,243 | |||||||||
| Operating lease liabilities, current | 151,438 | 150,458 | 21,908 | |||||||||
| Total current liabilities | 3,031,109 | 3,085,408 | 449,270 | |||||||||
| Non-current liabilities | ||||||||||||
| Operating lease liabilities, non-current | 143,591 | 124,963 | 18,196 | |||||||||
| Deferred tax liabilities | 11,404 | 27,099 | 3,946 | |||||||||
| Total non-current liabilities | 154,995 | 152,062 | 22,142 | |||||||||
| Total liabilities | 3,186,104 | 3,237,470 | 471,412 | |||||||||
| Shareholders’ equity | ||||||||||||
| Ordinary shares | 564 | 564 | 82 | |||||||||
| Treasury shares | (918,894 | ) | (918,892 | ) | (133,801 | ) | ||||||
| Additional paid-in capital | 15,450,389 | 15,684,295 | 2,283,810 | |||||||||
| Accumulated other comprehensive income | 695,184 | 555,256 | 80,852 | |||||||||
| Accumulated deficit | (3,586,480 | ) | (3,553,817 | ) | (517,476 | ) | ||||||
| Total shareholders’ equity | 11,640,763 | 11,767,406 | 1,713,467 | |||||||||
| Total liabilities and shareholders’ equity | 14,826,867 | 15,004,876 | 2,184,879 | |||||||||
7
KANZHUN LIMITED
Unaudited Condensed Consolidated Statements of Cash Flows
(All amounts in thousands)
| For the three months ended March 31, | ||||||||||||
| 2022 | 2023 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Net cash provided by operating activities | 294,011 | 543,910 | 79,199 | |||||||||
| Net cash used in investing activities | (243,519 | ) | (3,962,775 | ) | (577,025 | ) | ||||||
| Net cash provided by financing activities | 9,104 | 45,789 | 6,667 | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (44,671 | ) | (124,176 | ) | (18,081 | ) | ||||||
| Net increase/(decrease) in cash and cash equivalents | 14,925 | (3,497,252 | ) | (509,240 | ) | |||||||
| Cash and cash equivalents at beginning of the period | 11,341,758 | 9,751,824 | 1,419,976 | |||||||||
| Cash and cash equivalents at end of the period | 11,356,683 | 6,254,572 | 910,736 | |||||||||
8
KANZHUN LIMITED
Unaudited Reconciliation of GAAP and Non-GAAP Results
(All amounts in thousands, except for share and per share data)
| For the three months ended March 31, | ||||||||||||
| 2022 | 2023 | |||||||||||
| RMB | RMB | US$ | ||||||||||
| Revenues | 1,137,880 | 1,277,546 | 186,026 | |||||||||
| Add: Change in deferred revenue | 153,640 | 372,011 | 54,169 | |||||||||
| Calculated cash billings | 1,291,520 | 1,649,557 | 240,195 | |||||||||
| Net (loss)/income | (12,172 | ) | 32,663 | 4,757 | ||||||||
| Add: Share-based compensation expenses | 133,226 | 212,291 | 30,912 | |||||||||
| Adjusted net income | 121,054 | 244,954 | 35,669 | |||||||||
| Net (loss)/income attributable to ordinary shareholders | (12,172 | ) | 32,663 | 4,757 | ||||||||
| Add: Share-based compensation expenses | 133,226 | 212,291 | 30,912 | |||||||||
| Adjusted net income attributable to ordinary shareholders | 121,054 | 244,954 | 35,669 | |||||||||
| Weighted average number of ordinary shares (non-GAAP) | ||||||||||||
| —Basic | 869,631,088 | 865,986,168 | 865,986,168 | |||||||||
| —Diluted | 922,626,236 | 907,404,032 | 907,404,032 | |||||||||
| Adjusted net income per ordinary share attributable to ordinary shareholders | ||||||||||||
| —Basic | 0.14 | 0.28 | 0.04 | |||||||||
| —Diluted | 0.13 | 0.27 | 0.04 | |||||||||
| Adjusted net income per ADS attributable to ordinary shareholders | ||||||||||||
| —Basic | 0.28 | 0.57 | 0.08 | |||||||||
| —Diluted | 0.26 | 0.54 | 0.08 | |||||||||
9