Kanzhun Limited (Nasdaq: BZ), whose core product is Chinese job board Boss Zhipin, yesterday reported its unaudited financial results for the third quarter ended 30 September 2022. Revenue fell 2.7% to RMB 1.17 billion (USD 166.3 million).

Revenue was down in both online recruitment services to enterprise customers and in the ‘other services’ segment. Net income fell 26.0%.

The group said revenue fell due to challenging market conditions.

Adjusted net income for the third quarter of 2022 was RMB 376.6 million (USD 53.1 million), a decrease of 2.2% from the same quarter of 2021.

Income from operations was RMB 137.9 million (USD 19.4 million) for the third quarter of 2022, representing a decrease of 55.7% from the same period of 2021.

The group noted that calculated cash billings for the third quarter of 2022 were RMB 1.24 billion (USD 175.0 million) an increase of 1.4% compared to the same quarter of 2021.

Average monthly active users for the third quarter of 2022 were 32.4 million, an increase of 12.5% from 28.8 million for the same quarter of 2021. Average monthly active users refers to the number of verified user accounts, including both job seekers and enterprise users, that logged on to the platform’s mobile applications in a given month at least once.

Total paid enterprise customers in the twelve months ended 30 September 2022 was 3.7 million, a decrease of 7.5% from 4.0 million in the twelve months ended 30 September 2021. Paid enterprise customers are defined as enterprise users and company accounts from which the group recognises revenues for its online recruitment services.

“In the third quarter, we achieved solid profitability, while our revenues exceeded the topline of the company’s guidance,” said Phil Yu Zhang, Chief Financial Officer of the Company. “Due to the challenging market condition, our total revenues in the quarter decreased slightly by 2.7% year over year, but picked up by 6.0% quarter over quarter. Calculated cash billings achieved a 26.4% increase compared to the prior quarter. Both our net income and adjusted net income recorded sequential growth along with our strong user growth, driven by our improved brand recognition and marketing efficiency. The strong performance we achieved in the quarter demonstrated not only our business’s resilience and operational efficiency but also our capabilities to swiftly respond to the market recovery opportunity as we strive for growth in the long term.”

“We delivered solid results in the quarter despite the challenging macro environment, once again demonstrating the resilience and effectiveness of our business model,” said Jonathan Peng Zhao, Founder, Chairman and Chief Executive Officer of the Company. “Our user base growth has rebounded back to its fast momentum. Average monthly active users for the quarter hit a record high of 32.4 million, propelling the quick recovery of our business. Looking ahead, we will stay true to our original aspiration to better serve our users. Despite the near term uncertainties, we are confident that the strong user growth, combined with our efficient services and technical capabilities, will continue to drive the sustainable business growth in the years to come.”

Revenue by segment

For the fourth quarter of 2022, the company currently expects its total revenues to be between RMB 1.05 billion (USD 148.2 million) and RMB 1.09 billion (USD 153.8 million), representing a year-on-year decrease of 3.8% to 0.0%.

Kanzhun said its forecast considers the impact of the Covid-19 resurgence in certain cities which adversely affected recruitment needs, as well as 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.

Kanzhun shares closed yesterday at USD 16.47, up 9.2% on the day. The company has a market cap of USD 7.16 billion.