Oct-Nov 2023 bookings were relatively muted, but December saw a good rebound, partly helped by low base. Overall demand continues to recover from 2Q23 trough. Company indicated that its FY24 ARR growth target of 17-18% is still on track, but 4Q23 bookings are back-end loaded, so revenue recognition will be slightly impacted, tracking at ~15% YoY growth. Beisen's core HR module sustained fast 30% + growth, while recruitment and assessment module demand saw only mild recovery. For FY24 (ending Mar 24), management expect a ~Rmb150mn non-IFRS net loss and ~Rmb100mn cash outflow.

For FY25, Beisen wishes to grow revenue by 20%, better than FY24. This trend is inline with the slight sequential improvement from the tough of 2Q23. It aims to sustain its market share gain trend, and some SAP/Oracle implementation partners have begun cooperating with Beisen recently. Cash flow breakeven target in FY25 remains unchanged.

Post selling down from Sequoia, management indicated that no other pre-IPO investors have communicated that they intend to sell in the near term.