Financial Performance - Revenues for Q2 2024 were RMB1,916.7 million (US$263.8 million), a 28.8% increase from RMB1,487.6 million in Q2 2023 [2][4] - Net income for Q2 2024 was RMB417.3 million (US$57.4 million), a 34.8% increase from RMB309.6 million in Q2 2023 [2][8] - Adjusted net income for Q2 2024 was RMB718.7 million (US$98.9 million), a 26.4% increase from RMB568.5 million in Q2 2023 [2][8] User Growth and Engagement - Average monthly active users (MAUs) for Q2 2024 were 54.6 million, a 25.2% increase from 43.6 million in Q2 2023 [2] - Total paid enterprise customers in the twelve months ended June 30, 2024 were 5.9 million, a 31.1% increase from 4.5 million in the same period of 2023 [2] Revenue Breakdown - Revenues from online recruitment services to enterprise customers were RMB1,892.7 million (US$260.4 million) in Q2 2024, a 28.7% increase from RMB1,470.8 million in Q2 2023 [4] - Revenues from other services, mainly paid value-added services to job seekers, were RMB24.0 million (US$3.3 million) in Q2 2024, a 42.9% increase from RMB16.8 million in Q2 2023 [4] Operating Costs and Expenses - Total operating costs and expenses were RMB1,566.6 million (US$215.6 million) in Q2 2024, a 19.5% increase from RMB1,310.8 million in Q2 2023 [5] - Research and development expenses were RMB443.7 million (US$61.1 million) in Q2 2024, a 21.3% increase from RMB365.9 million in Q2 2023, reflecting increased investments in technology [6] Cash Position and Share Repurchase - Net cash provided by operating activities was RMB868.6 million (US$119.5 million) in Q2 2024, a 13.7% increase from RMB763.7 million in Q2 2023 [10] - The company had a cash and cash equivalents balance of RMB14,281.9 million (US$1,965.3 million) as of June 30, 2024 [11] - The company authorized a share repurchase program of up to US$200 million effective from March 20, 2024 [12] Outlook - The company expects total revenues for Q3 2024 to be between RMB1.90 billion and RMB1.92 billion, representing a year-on-year increase of 18.2% to 19.5% [13] Non-GAAP Financial Measures - Calculated cash billings for Q2 2024 were RMB1,950.7 million (US$268.4 million), a 20.5% increase from RMB1,619.5 million in Q2 2023 [2][16] - Adjusted income from operations increased by 52.1% year over year, with the adjusted operating margin reaching a historical high in Q2 2024 [3]

Financial Performance - For the six months ended June 30, 2024, total revenue reached RMB 3,620,496 thousand, representing a 30.9% increase compared to RMB 2,765,161 thousand in the same period of 2023[2] - Adjusted net profit for the same period was RMB 771,642 thousand, a significant increase of 101.1% from RMB 383,740 thousand in 2023[2] - Revenue from online recruitment services for corporate clients increased by 31.0% to RMB 3.6 billion for the six months ended June 30, 2024, compared to RMB 2.7 billion for the same period in 2023[13] - Total revenue rose by 30.9% to RMB 3.6 billion for the six months ended June 30, 2024, from RMB 2.8 billion for the same period in 2023[15] - Operating profit for the six months ended June 30, 2024, was RMB 462.2 million, a significant increase from RMB 97.7 million for the same period in 2023[20] - Net profit surged by 92.5% to RMB 659.0 million for the six months ended June 30, 2024, compared to RMB 342.3 million for the same period in 2023[21] - Basic earnings per share increased from RMB 0.39 for the six months ended June 30, 2023, to RMB 0.75 for the same period in 2024, reflecting a growth of approximately 92.3%[49] User Metrics - The average monthly active users (MAUs) grew to 50.6 million, up 21.3% from 41.7 million in the previous year[5] - The average daily active users (DAUs) as a percentage of MAUs remained stable at 25.2% compared to the same period last year[5] Expenses and Profitability - The adjusted operating profit margin reached a historical high, increasing by 5 percentage points year-on-year, driven by effective cost control[6] - Research and development expenses accounted for 23.2% of total revenue, maintaining a leading position in the industry[6] - Research and development expenses increased by 30.4% to RMB 911.3 million for the six months ended June 30, 2024, from RMB 699.0 million for the same period in 2023[18] - General and administrative expenses rose by 44.6% to RMB 531.7 million for the six months ended June 30, 2024, compared to RMB 367.6 million for the same period in 2023[19] - Marketing expenses remained stable at RMB 1,124.4 million for the six months ended June 30, 2024, compared to RMB 1,100.4 million for the same period in 2023[17] Cash Flow and Financial Position - Operating cash flow for the six months ended June 30, 2024, was RMB 1.8 billion[21] - The company has no interest-bearing bank or other borrowings as of June 30, 2024[21] - Cash and cash equivalents increased from RMB 2.74 billion at the end of 2023 to RMB 3.47 billion at the end of June 2024, an increase of 26.7%[39] - The company reported a net cash inflow from operating activities of RMB 1,774.1 million for the six months ended June 30, 2024, compared to RMB 1,307.6 million for the same period in 2023, an increase of 35.7%[39] - As of June 30, 2024, the group had no borrowings, resulting in a debt-to-equity ratio of zero[24] Shareholder Returns and Repurchase Plans - The company is committed to increasing shareholder returns through ongoing share repurchase initiatives[6] - A new share repurchase plan was approved by the board, allowing the company to repurchase up to $200 million of Class A common stock starting March 20, 2024[11] - During the reporting period, the company repurchased a total of 424,437 American Depositary Shares for a total consideration of $7,994,506.16[33] - The company repurchased a total of 848,874 Class A ordinary shares during the reporting period, with a total consideration of approximately $7.99 million[34] Acquisitions and Investments - The company acquired W.D Technology Investment Group Limited in February 2024 to enhance services in the blue-collar manufacturing sector[5] - The company completed the acquisition of approximately 77% of W.D Technology Investment Group Limited for approximately $52.7 million (RMB 374.3 million) on February 6, 2024[42] - The fair value of the acquired net assets includes cash and cash equivalents of RMB 224.0 million, other receivables of RMB 37.1 million, and property, plant, and equipment of RMB 43.3 million[43] Taxation and Liabilities - The total current tax expense for the six months ended June 30, 2024, was RMB 114.69 million, compared to RMB 27.07 million for the same period in 2023[48] - The company benefits from a reduced corporate income tax rate of 15% as a high-tech enterprise in China[47] - As of June 30, 2024, the group had no significant contingent liabilities or capital commitments[26] Employee Metrics - The group employed a total of 5,429 employees, with 51.2% in sales and marketing, 24.3% in R&D, 18.8% in operations, and 5.7% in general administration[27] Other Financial Metrics - The company's total assets increased from RMB 17.94 billion as of December 31, 2023, to RMB 19.16 billion as of June 30, 2024, marking a growth of 6.8%[38] - The total amount of short-term investments increased from RMB 3,513.89 million as of December 31, 2023, to RMB 5,542.51 million as of June 30, 2024[49] - As of June 30, 2024, the group held fixed-rate notes issued by UBS AG with a subscription principal of $150.0 million, representing approximately 5.5% of the group's total consolidated assets[22] - The fair value of the fixed-rate notes as of June 30, 2024, was approximately $148.3 million, with interest accrued during the reporting period amounting to about $4.0 million[22]

Financial Performance - Revenue for Q2 2024 was RMB 1,916.7 million (USD 263.8 million), an increase of 28.8% compared to RMB 1,487.6 million in Q2 2023[4] - Adjusted net profit for Q2 2024 was RMB 718.7 million (USD 98.9 million), up 26.4% from RMB 568.5 million in Q2 2023[4] - Operating profit for Q2 2024 was RMB 358.6 million (USD 49.3 million), an increase of 104.9% compared to RMB 175.0 million in Q2 2023[7] - Net profit for Q2 2024 was RMB 417.3 million (USD 57.4 million), up 34.8% from RMB 309.6 million in the same quarter of 2023[7] - Total revenue for the three months ended June 30, 2024, was RMB 1,916,743 thousand, representing a 28.8% increase from RMB 1,487,615 thousand in the same period of 2023[16] - Net profit attributable to ordinary shareholders for the three months ended June 30, 2024, was RMB 421,733 thousand, compared to RMB 309,597 thousand for the same period in 2023, reflecting a 36.1% increase[16] - The adjusted net profit attributable to ordinary shareholders for the six months ended June 30, 2024, was RMB 813,453 thousand, compared to RMB 342,260 thousand for the same period in 2023, indicating a significant increase of 137.5%[23] User Metrics - Average monthly active users reached 54.6 million, a 25.2% increase from 43.6 million in Q2 2023[4] - Total paying enterprise customers increased to 5.9 million, a growth of 31.1% from 4.5 million in the same period last year[4] Operating Costs and Expenses - Total operating costs and expenses amounted to RMB 1,566.6 million (USD 215.6 million), a 19.5% increase from RMB 1,310.8 million in Q2 2023[6] - Marketing expenses rose to RMB 545.2 million (USD 75.0 million), up 15.6% from RMB 471.6 million in the same quarter last year[6] - The company reported a total operating cost of RMB 1,566,640 thousand for the three months ended June 30, 2024, up from RMB 1,310,808 thousand in the same period of 2023[16] Cash Flow and Liquidity - Cash flow from operating activities for Q2 2024 was RMB 868.6 million (USD 119.5 million), reflecting a 13.7% increase from RMB 763.7 million in Q2 2023[8] - As of June 30, 2024, cash and cash equivalents totaled RMB 14,281.9 million (USD 1,965.3 million)[8] - Cash and cash equivalents increased from RMB 2,472,959 thousand as of December 31, 2023, to RMB 3,472,390 thousand as of June 30, 2024[18] - The cash flow from investing activities for the three months ended June 30, 2024, was a net outflow of RMB 72,309 thousand, a significant decrease from the outflow of RMB 4,427,593 thousand in the same period of 2023[19] - The company experienced a net cash outflow from financing activities of RMB 81,847 thousand for the three months ended June 30, 2024, compared to an inflow of RMB 23,166 thousand in the same period of 2023[19] Shareholder Returns - The company has initiated and will continue to increase share repurchase efforts, reflecting confidence in long-term development amid current market conditions[4] - A new share repurchase plan was approved in March 2024, allowing the company to repurchase up to USD 200 million worth of shares over a twelve-month period[9] Earnings Per Share - Basic and diluted earnings per American Depositary Share for Q2 2024 were RMB 0.95 (USD 0.13) and RMB 0.91 (USD 0.13), respectively, compared to RMB 0.71 and RMB 0.69 in Q2 2023[7] - Adjusted basic and diluted earnings per American Depositary Share for Q2 2024 were RMB 1.63 (USD 0.22) and RMB 1.57 (USD 0.22), respectively, compared to RMB 1.31 and RMB 1.26 in Q2 2023[7] - The diluted earnings per share for the three months ended June 30, 2024, was RMB 0.46, compared to RMB 0.34 for the same period in 2023, representing a 35.3% increase[16] - The weighted average diluted earnings per share for the six months ended June 30, 2024, was RMB 1.37, compared to RMB 0.90 for the same period in 2023, reflecting an increase of 52.2%[24] Research and Development - Research and development expenses accounted for 23.2% of revenue, maintaining an industry-leading level[5] - Research and development expenses for the three months ended June 30, 2024, were RMB 443,729 thousand, an increase of 21.2% from RMB 365,907 thousand in the same period of 2023[16] Future Outlook - The company expects total revenue for Q3 2024 to be between RMB 1.90 billion and RMB 1.92 billion, representing a year-over-year increase of 18.2% to 19.5%[10] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[16]

Wall Street expects a year-over-year increase in earnings on higher revenues when KANZHUN LIMITED Sponsored ADR (BZ) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

BEIJING, Aug. 16, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced that it will report its unaudited consolidated results for the second quarter ended June 30, 2024, before the U.S. market opens on Wednesday, August 28, 2024. The Company will host a conference call on Wednesday, August 28, 2024 at 8:00PM Beijing Time (8:00AM U.S. Eastern Time) to discuss the results. Participants are required t ...

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of $19.91 per ADS, compared to the current price of $13.73 [4]. Core Views - For Q2 2024, the company is expected to achieve revenue of 1.91 billion RMB, representing a year-on-year growth of 28.4% and a quarter-on-quarter growth of 12.1%. The overall performance of the recruitment industry is below expectations due to macroeconomic pressures, leading to a contraction in enterprise recruitment demand [2][3]. - The company, as a leading online recruitment platform, continues to benefit from network effects, with a projected 5% year-on-year growth in additional services revenue for job seekers in Q2 2024 [2]. - The report anticipates that the user base will maintain a good year-on-year growth trend, with a slight decline in the number of paying enterprise clients due to macroeconomic impacts [2][3]. Financial Summary - Revenue projections for 2024 and 2025 are 7.415 billion RMB and 9.045 billion RMB, respectively, with year-on-year growth rates of 24.6% and 22.0% [2][3]. - Adjusted net profits for 2024 and 2025 are expected to be 2.581 billion RMB and 2.976 billion RMB, respectively [2][3]. - The report highlights a slight decrease in ARPU (Average Revenue Per User) by 0.3% year-on-year for Q2 2024, but a slight increase quarter-on-quarter [2].

Core Insights - BOSS Zhipin has repurchased over 2.12 million ordinary shares worth USD 15.8 million in the past week, totaling approximately 5 million shares repurchased for USD 44.0 million since March 27, 2024 [1] - The company reported a revenue of RMB 1,703.8 million for Q1 2024, a 33% increase from RMB 1,277.5 million in Q1 2023, with adjusted net income rising 117% to RMB 530.7 million [2] - For the full year 2023, BOSS Zhipin achieved a revenue of RMB 5.95 billion, a 32% year-on-year increase, with adjusted net income reaching RMB 2.16 billion [2] Company Performance - BOSS Zhipin's unique Direct Recruitment Model and strong technology capabilities have contributed to its solid performance [2] - The adjusted operating income for 2023 was RMB 1.64 billion, reflecting a 191% year-on-year increase, resulting in a 27% adjusted operating margin [2] - The company's ongoing share repurchases indicate management's long-term confidence in its growth and development [3]

Core Viewpoint - Kanzhun Limited has received an upgrade to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings potential and likely favorable impact on its stock price [1][2]. Earnings Outlook - The Zacks Consensus Estimate for Kanzhun's earnings per share (EPS) for the fiscal year ending December 2024 is projected at $0.85, reflecting a 26.9% increase from the previous year's reported figure [5]. - Over the past three months, analysts have raised their earnings estimates for Kanzhun by 23.8% [5]. Impact of Earnings Estimates - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [3][4]. - The Zacks rating system effectively utilizes earnings estimate revisions to classify stocks, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. Positioning in the Market - Kanzhun's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [7].

Investment Overview - The company is given a buy rating due to its disruptive business model, which is expected to help it continuously gain market share from incumbents [1] - The company benefits from a strong flywheel effect, enhancing its competitive advantage and allowing it to capture more market share [1] Business Description - The company is the largest online recruitment platform in China by monthly average users (MAU), with 47 million MAU in 1Q24, nearly 4x the MAU in FY19 [2] - The primary business segment is online recruitment services for enterprise customers, accounting for 99% of the business revenue in FY23 [2] Market Opportunity - Online recruitment penetration in China has significant growth potential, especially among blue-collar workers, where the company has a strong market presence [2] - Online recruitment is more cost-effective and efficient compared to traditional methods, offering wider reach, improved efficiency, and enhanced decision-making through data analytics [2] - The aging blue-collar workforce in China and the tough labor environment are expected to drive employers to adopt online recruitment solutions, intensifying competition for younger workers [2] Disruptive Business Model - The company's platform allows direct chat between hiring managers and jobseekers, improving efficiency by enabling both parties to gather more information before interviews [4] - The platform protects jobseekers' personal information by requiring permission to share complete resumes and contact details, ensuring fair chances for all candidates [4] - The company's AI system refines recommendations based on factors like desired position, salary expectations, and engagement behavior, improving customer satisfaction and attracting more employers [5] Growth Momentum - The company's revenue grew by 33% to RMB1.7 billion in 1Q24, with cash billings increasing by 15% sequentially (24% annually) to RMB2.05 billion [6] - Adjusted operating margin expanded significantly to 23% in 1Q24, up from 10.6% in 1Q23 [6] - MAUs grew by 17% year-over-year in 1Q24, accelerating to 24% in March, setting a strong base for 2Q24 [6] - The company has 5.7 million enterprise customers, with significant room for further penetration given China's over 50 million enterprises [6] Financial Performance - Revenue grew from RMB1,944 million in 2020 to RMB7,738 million in 2023, with a projected growth rate of 30% in 2024 [8] - Adjusted EBITDA margin improved from -13% in 2020 to 32% in 2023, with expectations to remain flat at 32% in the future [9] - The company trades at a premium valuation of 17x forward EBITDA, supported by its strong revenue growth compared to peers [14] Valuation and Target Price - The company's enterprise value is RMB71,136 million, with a market capitalization of RMB83,037 million [11] - The target share price is set at $25, based on the company's strong growth momentum and disruptive business model [13] Conclusion - The company's disruptive business model and strong flywheel effect are expected to drive continued market share gains in China's online recruitment industry [16] - The platform's efficiency improvements and direct interaction between employers and jobseekers contribute to its competitive advantage [16] - The company's strong growth momentum justifies its premium valuation compared to peers [16]

BEIJING, June 28, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED ("BOSS Zhipin" or the "Company") (NASDAQ:BZ, HKEX: 2076))), a leading online recruitment platform in China, today announced that each of the proposed resolutions submitted for shareholders' approval (the "Proposed Resolutions") as set forth in the notice of annual general meeting dated May 22, 2024 has been adopted at the annual general meeting (the "AGM") held in Beijing, China today. After the adoption of the Proposed Resolutions, all corporate au ...