Early look of FY25 - balancing growth and cash flow: Beisen expects its ARR to grow by 15-20% while top-line is expected to grow by ~15% in FY25. OCF should turn positive while adjusted net losses should further narrow. A weak macro continues to drag on its recruitment and assessment module, while other modules are expected to see much higher growth than the firm average.
Core HR performance sustained: Beisen's CoreHR ARR grew by 30%+ in FY24 with customers growing to 1,900+ in the year while the churn rate is very low at ~5%. Beisen continues to see CoreHR as its main revenue driver in the future. This is partially driven by localization demand from SOEs, substituting foreign vendors such as Oracle.
Milder competition leads to higher ARPU. Given most start-up peers and single module players are struggling with financing, competition is subsiding meaningfully, and Beisen can narrow its price discount, which will drive the ARPU increase. Beisen expects its overseas version of the product to be ready in September.
