Benzinga | Sep 24, 2021 07:33AM EDT

51job Q2 Earnings Beat Estimates

* 51job, Inc. (NYSE:JOBS) reported second-quarter FY21 revenue growth of 32.6% year-over-year to $170.2 million (RMB1.1 billion), beating the consensus of $133.33 million.

* Online recruitment services revenues increased 17.4% Y/Y to RMB590.6 million ($91.5 million), and Other human-resource-related revenues increased 56.2% Y/Y to RMB508.1 million ($78.7 million).

* Adjusted EPS declined to RMB3.64 ($0.56) from RMB5.28 in 2Q20, beating the consensus of $0.47.

* The gross margin contracted by 550 bps to 61.8%, reflecting higher employee compensation expenses, staff additions, and higher direct costs.

* The operating income decreased by ~34% Y/Y to RMB109.3 million, and the margin contracted by 1,010 bps to 9.9%.

* 51job had cash and equivalents of RMB10.8 billion (~$1.67 billion) as of June 30, 2021.

* The company anticipates a continued recovery in its online recruitment business in 2021 but warned that the recruitment outlook might be affected by uncertainty in the ongoing global pandemic and occasional restrictions instituted by authorities to contain outbreaks in China.

* Price Action: JOBS shares closed higher by 0.98% at $72.48 on Thursday.