Ladies and gentlemen, thank you for standing by, and welcome to the Kanzhun Limited First Quarter 2022 financial results conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a Q&A session. Today's conference is being recorded. At this time, I will turn the conference over to Ms. Wenbei Wang, Head of Investor Relations. Please go ahead, ma'am.
Thank you, operator. Good evening and good morning, everyone. Welcome to our first quarter 2022 earnings conference call. Joining me today are our Founder, Chairman, and CEO, Mr. Jonathan Peng Zhao, and our Director and CFO, Mr. Phil Yu Zhang. Before we start, we would like to remind you that today's discussion may contain forward-looking statements, which are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance, or achievements of the company to be materially different. The company cautions you 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. During today's call, management will also discuss certain non-GAAP financial measures for comparison purpose only.
For a definition of non-GAAP financial measures and the reconciliation of GAAP to non-GAAP 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.zhipin.com. That said, I will now turn the call to Jonathan Peng Zhao, our Founder, Chairman, and CEO.
[Foreign Language]
Hello, everyone. Welcome to our first quarter 2022 earnings conference call. First of all, on behalf of the company, I would like to express our sincere gratitude to our users and investors for your ongoing trust and support. In the first quarter of 2022, we achieved a solid performance. The company recorded GAAP revenue of RMB 1.14 billion, with a year-on-year growth of 44%.
Our adjusted net income, excluding share-based compensation expenses, reached RMB 120 million, with a sustained profitability in the first quarter, when typically the highest level of expenses are booked throughout the year. In the first quarter this year, without any new user registration, solely relying on the existing users, our average DAU increased by 8.2% year-over-year, with peak DAU reaching 9.7 million, surpassing that for the same period of last year. Our average MAU reached 25.23 million, with a year-on-year increase of 1.3%. To further talk about our users' activeness, the point is our DAU to MAU ratio continues its encouraging growth trend.
[Foreign Language]
Another important observation is that for both job seekers and enterprise users in this quarter, their average achievements per MAU, which is the average number of times of mutual consent on contact information exchange with the counterparty in the first quarter, increased by more than 20% year-over-year. In the past several earnings calls, we have several times promised to you that we will better serve our existing users. In today's call, the 20% year-over-year growth in achievements per MAU is a solid proof of our unremitting commitment.
以上一些运营数据的提升，主要是因为我们持续加大产品和技术的投入，挖掘用户的深层次需求，聚焦在服务老用户上，从而取得的。
The improvements of the above-mentioned operating data mainly coming from the increasing investment in technologies and products, cultivation of the in-depth user demand, and the concentration on serving the existing users.
借此机会，我也对于做出了价值、解决了问题的公司产品和技术团队深表感谢。
Taking this chance, I'm truly grateful to our product and R&D teams who have created value and solved problems.
在深耕不同类型的用户、提供更有针对性和更全面的服务方面的尝试，我们也进展顺利。分两个方面说一下。
We made solid progress in developing more targeted and comprehensive services to diversified user groups. I will elaborate from two perspectives.
第一，说一下蓝领，这次主要说蓝领制造业方面，我们的海螺计划进展顺利。海螺计划是一个为蓝领工人提供真实职位和安全求职体验，搭建更符合蓝领制造业行业生态的审核认证体系的项目。
First of all, in terms of blue-collar, we are talking about the manufacturing industry. It is encouraging to see that Hailuo Project has been progressing well. Hailuo Project is a campaign specifically undertaken to provide blue-collar workers in the manufacturing industry with credible job positions and a safe job-seeking experience, as well as to eventually establish an assessment and verification system in line with the blue-collar recruitment ecosystem.
从我们的进度看，能够完全接受BOSS直聘平台对信息的真实性和诚信履约的要求的中介组织和企业的数量，自年初以来成倍地增长。
The number of blue collar intermediary agencies and enterprises who have signed up in full to our platform's requirements of information authenticity and integrity increased exponentially since the beginning of this year.
第二个人群，我们看一下高收入的白领和金领人群。我们已经推进了一年多的一个猎头顾问服务品牌，叫职猎帮。也取得了相当重要的进展。
The second group of users is the high income white collar and gold collar users. Our headhunter consultant brand, Zhi Lie Bang, established for more than one year, also made remarkable progress.
职猎帮这个品牌，我们做了将近两年时间。借此机会也告诉大家，这件事情的进展也到了可以说的时候。
This Zhi Lie Bang brand we have been working on for almost two years, and we think it is time to tell you some progress.
说三个数字吧。猎头企业接受并且认同BOSS直聘平台的用户保护规则，签订合作协议的猎企已经达到数千家规模。
Let me share three numbers with you. For headhunter enterprises, thousands of them have accepted and agreed to our user protection rules and signed cooperation agreements with us.
第二个数字是猎头顾问。活跃的猎头顾问人数每个月已达数万人之多。
The second number is headhunter consultants. There are tens of thousands of monthly active headhunters working on our platform.
第三个数字就是以上猎头顾问服务的高收入白领和金领人群。求职者的规模每个月已达百万以上。
The third number is the high-income white-collar and gold-collar users. The above-mentioned headhunter consultant are serving. For job seekers of this kind, our platform providing services to more than millions of targeted users each month.
接下来我也分享一下最近大家非常关注的疫情对我们业务影响的一些情况。
Next, I would like to share some information about the pandemic's impact that everyone has been very concerned about.
3月下旬以来，疫情在中国多个主要城市出现扩散，我们也看到出现了整体招聘需求下降的现象。
Since mid-March, the resurgence of COVID-19 across major cities, we have also witnessed the decline in the overall recruitment demands.
在几个疫情严重的城市及周边，活跃的招聘者和他们发布职位的数量都有较大的减少。
The number of active enterprise users and job postings plummeted in the cities and areas with severe outbreaks.
从收入的角度看，上海跟北京都是我们提供重要收入贡献的城市。
From the revenue perspective, Shanghai and Beijing are both important contributors to our revenues.
四五月份上海的收入同比下降超过50%。
From April to May, cash revenues in Shanghai dropped by more than 50% year-over-year.
北京五月份也受到了较大影响。
Beijing was also significantly impacted since May.
这些对我们在二季度的业务是造成了一定压力的。
Which has generated a certain amount of pressure on our business in the second quarter.
然而，从我们的业务数据看，疫情的影响是相对短暂的。
However, our operating data shows that the impact is relatively short-lived.
总体上，我们观察到疫情带来的影响能够比较迅速地得到恢复。
Overall, our observation is that the impact of the pandemic can recover rapidly.
比如早些时候受疫情影响较重的深圳、西安、长春等城市，在疫情得到控制之后，两周到一个月之内，在该城市我们的业务收入情况可以基本恢复到疫情前的水平。
For example, in the earlier cities which have been affected, like Shenzhen, Xi'an, Changchun and other cities, our revenue can return to almost the same level as those prior to the outbreak within two-four weeks once the situation were under control.
从六月初开始，上海的疫情影响减轻了。两周之后，我们的业务数据恢复到疫情之前的80%。
Since the beginning of June, the impact of the pandemic in Shanghai has been eased, and we have seen the operating data recover to 80% of the pre-pandemic levels two weeks later.
现在看来，北京在快速地恢复，比如我们在服务业上面的业务数据已经出现了明显的回升。
As of now, Beijing has also shown significant recovery, such as for the urban service industry. Our operating data has shown a clear rebound.
众所周知，当前的就业形势比较严峻。作为较大的招聘平台之一，我们也做了一些积极的应对。
Everybody knows that the current employment situation is quite challenging. As one of the major recruitment platforms, we are proactively responding.
主要的措施可以从我们对求职者和对招聘者两个角度来看。
Our major actions can be demonstrated from the perspective of enterprise users and job seekers.
对招聘者来说，我们主要是给予疫情影响严重的地区和行业进行补贴。
For enterprise users, we provided subsidies to cities and industries which have been severely affected by the outbreak.
举个例子，3月以来，我们在七个城市对于上万个职位进行了免费开放的政策。
For example, since March, we have opened over tens of thousands of job postings on our platform free of charge in seven cities.
对求职者，我们主要是针对应届毕业的大学生，举办了一个为期六周的春招节活动。
For job seekers, especially the fresh graduates, we held a spirit of spring recruitment festival for six weeks.
期间，我们联合近千家企业为大学生提供了上万个工作岗位。
Together with nearly 1,000 enterprises, we have been providing tens of thousands of additional job openings for college students.
还有一件事说一下。三月份我们宣布了一项回购计划，在这期间，在合理的价格上，我们进行了回购的操作，这也代表了我们对公司长期发展的信心。
One more thing to add, we announced a repurchase program in March. Since then, we have executed this program in a reasonable price range, which have been reflecting our confidence in the sustainable development of our business and our commitment to delivering long term value for our shareholders.
我的介绍就到这里。接下来由我们的CFO Phil为大家介绍我们的财务情况。谢谢。
With that, I will turn to our CFO, Phil, for the review of our financials. Thank you.
Thanks, Jonathan. Hello, everyone. Thank you for joining our earnings call today. Before I begin, please note that all amounts are in RMB and all comparisons are on a year-over-year basis unless otherwise stated. Despite the continued suspension of new user registrations, our solid financial performance in this quarter once again demonstrated our model resilience and sustainability. In this quarter, our total revenues increased by 44% to RMB 1.14 billion, beating the high end of our guidance range. Our calculated cash billings reached RMB 1.29 billion in the quarter. Facing various macro uncertainties, we have been further focusing on providing better services to our users, which we believe will deliver increasing values in the long term. Continuing to benefit from sustainable growth of our user base, our paid enterprise customers for the twelve months ended March 31st, 2022, grew steadily to 4.1 million.
Moving on to the cost side. Total operating costs and expenses for the first quarter increased by 18% year-over-year to RMB 1.15 billion. Excluding share-based compensation, total operating costs and expenses increased by 10% year-over-year to RMB 1.01 billion in the quarter. Our cost of revenues expanded by 66% to RMB 177 million this quarter, mainly driven by the increased headcounts, especially security-related staff, as we continued to improve our platform's security capabilities, as well as the higher server and bandwidth costs caused by the increased user traffic. Sales and marketing expenses were RMB 522 million in the quarter, representing a year-over-year decrease of 16%.
Against the high base last year, such decrease was mainly due to the reduced marketing activities during the new user registration suspension period. However, as the Spring Festival is the traditional peak season for the recruiting, we undertook a marketing campaign to sponsor the Beijing Winter Olympics and the Paralympic event, leading to higher brand-related sales and marketing expenses quarter-over-quarter. We believe this investment will help enhance our brand recognition and benefits us in the long run. Research and development expenses increased by 77% year-over-year to RMB 291 million in the quarter. The general and administrative expenses increased by 91% to RMB 156 million. The increases were primarily due to the increased personnel costs, reflecting our commitment to strengthen our core competitiveness in technology.
Our net loss for this quarter was RMB 12 million, compared with net loss of RMB 176 million for the same period last year. Excluding share-based compensations, our adjusted net income for the quarter was RMB 121 million, compared with an adjusted net loss of RMB 128 million in the same period last year, representing an adjusted net margin of 11%. Normally, first quarter every year is a seasonal low for margin due to increased marketing and advertising activities around Spring Festival. We will see an improved margin in the coming quarters. Our net cash generated from operating activities was RMB 294 million for the first quarter of 2022. As of March 31st, 2022, our cash equivalents, and short-term investments totaled RMB 12.4 billion.
We believe this healthy cash reserves and sustainable operating cash flows will provide us with a solid foundation for the long-term growth and generate sustainable returns for our shareholders. Now for our business outlook, as Jonathan has just mentioned, the resurgence of the COVID-19 in many cities since late March and the responding control measures have adversely affected business activities, resulting to decline recruitment needs and impacted our business for the second quarter in short term. With regards to this, we expect our total revenues for the second quarter to be between RMB 1.09 billion and RMB 1.1 billion, representing a year-on-year decrease of approximately 6.7%-5.8%.
However, we believe the impact is temporary. As we have witnessed a rapid recovery in previously affected cities, we are optimistic and confident in our business development in the long run, which is underpinned by our effective and resilient business model, massive and stable user base, as well as continually improving user experience. That concludes our prepared remarks. Now we'd like to answer questions. Operator, please go ahead.
Thank you. To ask a question at this time, please press star then one on your touchtone telephone. To yourself in the queue, please press the pound key. Please stand by while we compile the Q&A roster. Our first question from Eddy Wang with Morgan Stanley. Your line is open.
谢谢赵总、宇哥、文蓓接受我的问题。我这边两条问题，第一个还是就是赵总之前提到的这个蓝领制造业海螺计划。我想问一下，就是说过去其实这么多年大家也都明白，就说制造业蓝领的线上化率其实挺低的，但是也不同，有不同的这个互联网公司，包括在在线招聘的平台和一些非，就是招聘，专业的平台想做这个，最近可能也有其他包括直播平台也在做这个。所以想问一下，就是说您认为过去这么多年线上化率低的一个主要的原因是什么？因为您前面提到了，就是我们的这个真实的职位、审核的认证、咱们对企业审核认证等等，这是行业的一个非常关键的一个痛点嘛。就是说如果这个问题不解决的话，其他的这个企业其实很难，就算有流量也很难去把这块业务做起来嘛。或者就是说这个是，包括其他的专业平，就是这个平台想做，想做这个认证等等的，它也是没有办法做嘛。其实就想问一下，就说这个蓝领、制造业蓝领方面的真正的痛点是什么？为什么这么多年来，其实包括很多企业都想做都做不起来，这是第一个问题。 然后第二个问题可能是关于就是说其实我们这个新增用户，暂停也就接近一年了。在过去这一年中，我们看到就是说其他的类似的这个招聘平台吧，他们也是在很积极地获客，在这个C端的用户上的确看到有不少的增长。但是反过来，如果我们看它的这个用户的这个收入的增长方面，那我想就是反映一个B端用户的增长吧，或者付费吧，就是说这个增速明显要比我们慢很多。就是我想知道一下，就是我们给了差不多一年的时间，就是为什么其他的平台在就是在C端能获客的情况下，在B端还是不能，就是说，做出一个比较好的收入增长的，这跟他们就是有什么东西，就是说在这么一年的时间里可能还是不能拉近差距，就这个最主要的这个问题是在哪里？因为赵总之前也是在这个传统的招聘平台上，有非常长的这个经验，能否再请您谈一下？那我自己可能简单地翻译一下。
Thank you management for taking my question. My first question is about the manufacturing blue-collar recruitment.
We have launched the Hailuo Project for quite a long time, so we have also noticed that other platforms even including some of the live streaming, you know, the platforms, they also initially are new to the business of the blue-collar recruitment. Just want to, you know, hear your thoughts on what's the real pain point in the, you know, the blue-collar online recruitment sector is, because of the, you know, not a lot of, you know, platforms they are trying to, you know, do the difficult, you know, process of, you know, to verify the real positions, postings as well as the verification of the, you know, the enterprise or is there any other pain point, you know, to stop this blue-collar, you know, the online recruitment online penetration to be sustainable to be low in the past, you know, few years. The second question is about the competition.
I think, we have been suspended for new user registration for almost one year. At the same time, I think a lot of, you know, peers, they have been able to spend a lot of sales and marketing to acquire new job seekers. At the same time, we witness that their revenue growth actually is sustainable lower than, BOSS Zhipin. Just want to know, they have almost one year to catch more the, you know, the enterprise users, but, seems that the results are not so far is not so good. What's the differentiation, so far, you know, you know, can tell the difference between BOSS Zhipin and the other, you know, online platform and how, they cannot able to increase them, you know, many, enterprise users during the one year we are not able to increase new users. Thank you.
谢谢你的问题。第一个问题，关于蓝领制造业的问题。实际上这个问题我想先给两个词，再给一个数。第一个词就是非常复杂，第二个词是非常坚固。那么我如果不说剩下的数，那也说不清是什么意思。这个数是四，四个人，第一个人是中介组织，第二个人是工厂，第三个是平台，第四个是工人。这四个人之间长期的游戏变得非常复杂，且非常的坚固，许多地方出现了劣币驱逐良币的局面。
First of all, thank you for your question. For your first question about the blue-collar manufacturing industry, I would like to explain it by two words and one number. The two words are comprehensive or complicated and firm, and the one number is four, which I need to give you this number to further elaborate. The four means there are four parties. The first one is agencies. The second one is factory. The third one is platform, and the fourth one is workers. For a long time, the four parties have making this game very, very complicated.
有一个著名的中国的一个小说叫《三体》，Three Bodies。所以数学上如果三颗星球围绕互相旋转，迄今为止这是一个难解的数学命题。我们看到的中国蓝领制造业求职招聘市场是Four Bodies，所以非常非常难做这件事情。我再解释一下。
You should know there is a very famous Chinese novel, The Three-Body Problem, which they have presented a very difficult math questions. Where three planets, they are spinning around each other is quite difficult to sort out. We are facing a problem with Four Bodies, which is even more difficult.
所以解这个题的话，我大概知道怎么解，以前也是困难在此。第一，我们在这四个人里找出来谁是那个最重要的人，我们找出来的这个人就是工人，就一切围绕这个工人去解这个题。
I have thought for a long time on how to solve this problem, and I know how to do that. The important thing is to find out who is the most important party in the Four Bodies, and it is the workers, and we need to do everything around workers.
互联网平台跟工人站在一起是天然有欲望的，这就是传说中我们认为的把用户摆在第一位。
For internet platforms to stand together with workers, which is very naturally and is what we have been saying, to put our users at first.
随着新增年轻劳动力的不足，工厂难招人的局面已经存在好几年，并将继续存在，所以越来越多的工厂也会把工人摆在非常重要的位置。
With the lack of newly increased young employees, it will be more and more difficult for the factory to recruit workers. In the future they will place the workers as the most important thing.
当平台和工厂都围绕工人，跟工人站在一起的时候，中介组织是没有其他选择的。
When both platforms and factories choose to stand together with workers, there is no other way left for the intermediaries.
刚才介绍过，愿意按照诚信履约的要求与平台签订合约，共同来服务工厂跟工人的中介组织，在今年年初以来成倍地在增长。
As I have just introduced, all those intermediaries who have agreed to our rules and requirements and fully signed up with our platform have been growing exponentially since earlier this year.
所以解这个题就找到工人这个词。这个题我觉得假以时日一定可以解开。
By finding the keyword workers, I believe this problem can be solved in short term.
这是关于第一个问题。第二个问题。
That's the answer for your first question. For your second question.
其实我看到用户增长这个词，我们一直坚持用户存留才是真正的用户增长。花钱买新用户是实现用户增长的一个手段，但绝对不是全部。
You mentioned the word about user growth. I have long believed that the retention, user retention is the key for growth. You can pay money to acquire new users, but it's not everything.
关心到竞争格局的话，我的观察是竞争格局暂时没有变化。
Regarding the competitive landscape, my observation is, nothing has been changed.
我就回答这么多。
That's my answer.
谢谢。
Our next question comes from Timothy Zhao with Goldman Sachs. Your line is open.
好的，感谢赵总、宇哥和文蓓接受我的提问。那我这边有两个问题，第一个是我们看到二季度在疫情和宏观的影响下面，想请教一下我们平台上面的企业的付费率，包括ARPU的趋势，和我们之前几个季度有哪些变化？那特别考虑到我们平台上面有超过80%的中小企业的企业用户，那这部分用户在受到疫情影响的地区和目前宏观的大环境下面，他们的这个付费率和ARPU的趋势有什么特别的我们需要注意的？
那第二个是关于新业务，特别是我们刚刚介绍的这个金领业务相关的一些进展，那包括职猎帮，那可否请贵司再介绍一下我们对于这部分高收入白领金领业务的一个展望，包括我们和竞争对手有哪一些区别，那我们应该怎么去看这部分的业务的一个收入预期，以及它未来可能做到的一个利润率。那我很快地翻译一下。Thank you very much for taking my question.
I have two quick question. First one is concerning the impact of COVID resurgence and also the weaker macro in the second quarter. What is the latest trend, in terms of the paying ratio and ARPU on the platform and how that, how does that compare to the previous quarters? Is there considering that, we have over 80% small, medium enterprise users on the platform, what is their trend in terms of paying ratio and ARPU, especially for those, under the impact of the COVID resurgence. Secondly, it's about the new business, especially as we introduce the business related to the high income white collar and the blue collar and the gold collar users, including the Zhiliebang brand.
Could management share any outlook for this part of the business and what is our differentiation versus competitors and what kind of the revenue or margin outlook that we should have for this part of business? Thank you.
I'd like to answer the first question. Overall, during the pandemic and weak macro conditions, we continue to see healthy operating metrics. Regarding the overall paying ratio and ARPU, those numbers also maintain at a stable situation as a whole. I think the pandemic and macro impact mainly reflected at you know total number of active enterprise users. We see some declining trend during the pandemic stage.
Compared with the large enterprises, smaller enterprises see stronger impact during the pandemic. We think overall the total number of small enterprises, small and medium sized enterprises are huge and they are quite resilient in the economy. We expect that overall the SME they will see recovery backed by the better macro conditions in upcoming, probably like weeks or month. We have already witnessed such kind of signs, early signs. In terms of their paying ratio and ARPU, like the large enterprises, their paying ratio and ARPU are also in a stable situation. Their impact mainly due to the total number of active smaller number of active enterprises from small medium sized segment. That's the situation.
你的第二个问题还是关心我们在金领领域的发展。
呃。
经过两年的发展，目前我们在加大力度，可以简单讲，通过职猎帮这个项目，大力地发展平台上面猎头顾问、猎企和金领人才的这样一个生态。目前超过三千家签约的猎头企业，每个月的活跃猎头顾问有几万人，每个月服务超过一百万的高端用户。
For your second question regarding the development of our gold collar business, during past two years of development, we have been now increasing our efforts in this area. Through this Zhiliebang brand, we have established a very good and healthy ecosystem for the headhunter enterprises, the headhunter consultant and gold collar users. Currently we have over 3,000 contracted headhunter enterprises, tens of thousands of active headhunters and more than 1 million active high-end users.
可以说今天，BOSS直聘已经围绕金领用户的服务和猎头顾问的服务建立了一个用户生态。
We can say that as of today, BOSS直聘 has established a user ecosystem surrounding gold collar users and headhunter consultant.
回顾发展BOSS直聘平台生态的过程，我们坚信能够给用户带来更高的效率和实际的价值。在此基础上，一定有机会探索更有效的收入模式。
Looking back to our own ecosystem development process.
We truly believe that with higher efficiency and higher value proposition to our users, we should have a better chance to explore a proper, monetization model.
谢谢。
Thank you.
Our next comes from Wei Zhang with UBS. Your line is open.
谢谢赵总与各位，感谢管理层接受我的提问。那我这边有两个问题想要follow up一下，首先是关于宏观和疫情对咱们业务的影响，想请教一下管理层能不能帮忙量化一下，二季度以来我们观察到的这些宏观压力给咱们的收入带来了多少的影响，那么基于现在的这个宏观的恢复趋势，因为之前咱们也谈到复苏的节奏还是比较快的，那我们应该怎么去想这个下半年业务增长的情况。那另外呢，也是想从另外一个角度来跟进竞争的这个方面，因为咱们也聊到，就是其他的在线招聘平台在过去一年里这个市场投入也做了一些加大的动作，那这个可能会怎么影响咱们未来的市场策略，然后包括可能影响咱们的利润率。
Um, thank you management for taking my questions. First I want to follow up on the macro impact of our business. Could management maybe help to quantify the macro impact pressure we've seen on the second quarter revenue outlook? Also given the current macro trends, how should we think about the business growth in the second half of the year? Second, just to revisit the topic of competition from a different angle, we've talked about other online recruitment platforms may have stepped up their marketing spend over the past year. How could this affect our marketing or user acquisition strategy going forward? Any implication that might have on our margins? Thank you.
Okay. I like to answer the first question and Jonathan will reply to you for the second part. Basically regarding our like impact, financial impact from the pandemic, we think that the pandemic and weak macro, as I just mentioned, have some material impact on our business.
It's reflected as, most of the businesses, they during the, you know, pandemic and during the weak, macro like conditions, they reduced their business activities and they reduced their, recruiting like, recruitings as well. We did some analysis and the number shows that, pandemic and weak macro totally had around like 10%-15%, to our overall revenue in the second quarter of this year. This is pretty much the, you know, the overall impact in the second quarter. We think that given we have seen some early signs of a recovering in early June, we think that, day by days, we have witnessed some improving situations. We think that, in upcoming third quarter things could improve. We think that will support our business recover as well. Jonathan can give you some color regarding the, you know, the industry, like view towards the overall recruiting markets demand.
好，我说三个数吧，就是我看到的数。第一个数据就是六月份的前两周，平台的DAU环比增长10%，其实主要的原因就是疫情之后对五月份来说的一个快速复苏带来的影响。所以关键词就是六月份前两周DAU环比10%。
Okay, I will say three numbers. First one is for the first two weeks of June, our DAU increased by 10% month-over-month, which we have been in this rapid recovery.
第二个数呢，就是一百。在六月份，一百人以下的企业在我们平台中看到它的回暖速度更快，它的恢复速度是最快的。
The second number is 100. In July, for those enterprises has less than 100 person, we have seen that their recovery speed is much faster than the rest of enterprises.
第三个数呢，就是三，六月份的上旬跟三月份的下旬，就是传统的招聘旺季哈三月份，相比的话，服务业的新增职位的数量，六月上旬是三月下旬的104%。
The third number is for the first half of June compared to the later half of March, which is the traditional peak season. The urban service intra-industry within the urban service industry, the newly posted jobs is 104% compared to the later half of March.
所以我们在以上这三个数中看到的是我们的客户，包括我们非常大的中小客户。
From those three numbers, we believe that our customers, including big enterprises and SMEs, they are quite resilient and have a very strong power to recovery. I will add to Phil's answers with these three numbers.
Also regarding the question related to the margin. As just mentioned in the prepared remarks that first quarter, due to seasonality reason, it was with a lower margin. In upcoming quarters, we would like to see improve the situation. Having said that, because the second quarter is, you know, already seeing some impact from the COVID-19 pandemic. The margin improving, there will be improving, but might not be, you know, as high as third quarter last year and fourth quarter last year. Overall, for the margin of 2022, we think that we should be able to maintain our previous view regarding the yearly margin.
Pretty much as close to 20% of our total revenue for the whole year. We still believe this is the situation. I think for comparison reason I probably need to update one number, which I gave during last earnings call. That is the failed registration like a total number of failed registrations. By the end of May 31, the total number of failed registration was 46 million.
That's our answer to your question. Thank you, Wei Xiong.
Very clear. Thank you.
Due to time constraint, that concludes today's question and answer session. At this time, I will turn the conference back to Wenbei Wang for any additional closing remarks.
Thank you once again for joining us today. If you have any further questions, please contact our IR team directly or TPG Investor Relations. Thank you.