51job, Inc. (NASDAQ:JOBS) Q3 2019 Earnings Conference Call - Final Transcript
Nov 14, 2019 • 08:00 pm ET
third quarter. Inline with our forecast, we saw a reduction in the number of unique employers, primarily due to limited activity or dominant behavior by smaller sized organizations. But this was largely offset by improved ARPU on the back of successful upselling efforts focused on more established companies.
We remain focused on our long-term strategic objective of driving up revenue per customer with our high quality services, product effectiveness and tangible results. It is our priority to elevate our ability to consistently serve and better monetize and let customer base, which we believe will further solidify 51job's industry leadership and longevity.
In the other HR services segment, this area stay resilient and revenue grew 16% in the third quarter. A major differentiating feature of 51job's business model is the uniqueness and diversity of our large portfolio of services to address multiple aspects of HR responsibilities. The value proposition of our training, assessment and outsourcing services has continued to resonate with employers. In using our training and assessment services, we believe companies have been able to sharpen their selection and investment in the best talent, thereby improving employee productivity and manage turnover.
By our HR outsourcing services, we are assisting customers with core operational obligations, such as payroll, processing and government compliance work, which have strict standards that always need to be adhered to by employers. Through our comprehensive suite of HR solutions and an integrated sales force with extensive domain knowledge, we are establishing more engagement points and deepening relationships with HR departments, despite this time of uncertainty and volatility.
Turning now to our current market assessment. Given the circumstances we have already navigated throughout this year and the fact that year end is traditionally a slow period for general hiring, we believe that customer demand will stay soft these last few months of 2019. However, in our experience, the dynamic nature of the China market triggers as we set each year as companies reflect on what has happened, make adjustments and adapt to the surroundings. With Chinese New Year falling on the calendar in late January, the earlier than their normal holiday, we'll provide data points on employer sentiment in hiring activity sooner in 2020. We look forward patiently to see how the market tone plays out and we will share our observations on our next quarterly call.
Periods of difficulty obviously bring business challenges, but we believe they also test and strengthen 51job's organizational DNA for continued evaluation and development. Just as in past cycles, we have stayed focused in moving ahead to lay the groundwork to capture opportunities where market conditions recover.
Our newest recruitment platform with Lagou which targets entry level frontline positions in service industries, is gaining users and building a solid reputation for information accuracy and reliability.
As Chinese companies expand outside of country's borders and become more globalized, we are working with more customers on the recruitment of overseas talent and with Chinese, conducting more than 100 events in the past year. 51job