Recently, HR SaaS company Beisen(Chinese:北森) released its financial performance for the 2023 fiscal year (ending on March 31, 2023). According to the financial report, Beisen’s revenue for the 2023 fiscal year was CNY 750 million, an 11% increase compared to the CNY 680 million in the 2022 fiscal year. This fiscal year’s revenue is the highest in the past five fiscal years, but the growth rate has slowed down.
Beisen’s revenue comes from two divisions, including cloud-based HCM solutions and professional services.
The revenue from cloud-based HCM solutions in the 2023 fiscal year was CNY 540 million, a 16% increase compared to the previous year. The financial report stated that this revenue growth was due to the company acquiring new customers and an increase in subscriptions to its HCM solutions by existing customers. As of this fiscal year, the number of customers for this business exceeded 5,119, compared to 4,780 in the same period of the previous fiscal year. These customers come from various industries, including technology, real estate, financial services, automotive, and manufacturing.
The revenue from professional services for the company in this fiscal year was CNY 210 million, a 1% decrease compared to the previous year. The company’s professional services include implementation services for launching and operating solutions, as well as customized customer experience services.
In terms of revenue composition, the revenue from cloud-based HCM solutions accounted for 72% of the total in the 2023 fiscal year, higher than the 68% in the previous fiscal year. The revenue from professional services accounted for 28% this fiscal year, lower than 32% in the same period of the previous fiscal year.
The gross profit for the company in this fiscal year was CNY 420 million, a 4% increase compared to the previous year.
The overall gross profit margin for the company in this fiscal year was 55.3%, which is the lowest performance in the past five fiscal years. The overall gross profit margins for the company in the 2019-2022 fiscal years were 60.6%, 59.8%, 66.4%, and 58.9% respectively.
In terms of operating costs, Beisen’s sales and marketing expenses for the 2023 fiscal year were CNY 390 million with a year-on-year increase of 17%. This increase was mainly due to the increase in costs related to sales and marketing personnel.
According to the financial report, Beisen ranks first in the HCM SaaS market share in China, with a market share of 12.9% in 2022. Looking ahead, the company’s goal is to attract new customers, retain existing customers, and expand its industry influence. Beisen will strengthen the professional capabilities of its HCM solutions, introduce new features, delve into industry scenarios, and optimize its products. In terms of applying new technologies, the company stated that it is currently embedding generative AI technology into its HCM solutions, deploying AI capabilities in various functions, including job descriptions, poster creation, AI interviews, and more.
On April 13, 2023, Beisen was listed on the Hong Kong Stock Exchange (stock code: 9669.HK), becoming the “first Chinese HR SaaS listed company.” The issue price was set at HKD 29.70 per share, with a minimum lot size of 200 shares, raising a maximum of HKD 239 million.