Financial Performance - In Q4 2024, the company achieved GAAP revenue of RMB1.82 billion, a 15% year-on-year increase [4] - Adjusted net income for Q4 reached RMB720 million, reflecting a 15% year-on-year growth [4] - For the full year 2024, GAAP revenue was RMB7.36 billion, up 24% year-on-year [5] - Adjusted net income for the full year was RMB2.71 billion, a 26% year-on-year increase [5] - Adjusted operating income for 2024 was RMB2.32 billion, rising by 41% year-on-year [5] - Share-based compensation expenses as a percentage of revenue decreased by 2.3 percentage points compared to 2023 [5] - The company reported a historical high adjusted operating margin of 36.1% in Q4 [24] Business Lines and User Metrics - Average verified monthly active users (MAU) on the app increased by 28% year-on-year to 52.7 million in Q4 [4] - The company attracted nearly 49.5 million new verified users in 2024, setting a record for annual user growth [5] - Revenue contribution from blue-collar segments rose to 38% in 2024, with the manufacturing sector showing the fastest growth [8][9] - The number of paid enterprise customers reached 6.1 million, marking a 17% year-on-year growth [22] Market Data and Trends - The recruitment market showed signs of stabilization towards the end of 2024, despite challenges [21] - Post-Chinese New Year, key metrics such as active users and job postings reached historical highs [18] - AI-related job postings surged by over 50% year-on-year, indicating a revitalized ecosystem for emerging business [19] Company Strategy and Industry Competition - The company is committed to enhancing user experience through continuous product and service optimization [10] - AI implementation is a key focus, with applications aimed at improving management efficiency and reducing costs [16] - The company plans to explore AI applications further, with a roadmap for new services [41] Management Commentary on Future Outlook - Management expects total revenues for Q1 2025 to be between RMB1.9 billion and RMB1.92 billion, reflecting a year-on-year increase of 11.5% to 12.7% [29] - The company aims for a non-GAAP operating profit target of RMB3 billion for 2025, a 30% increase from 2024 [54] Other Important Information - The company repurchased approximately $229 million worth of shares in 2024, accounting for 3.7% of total outstanding shares [20] - Cash position stood at RMB14.7 billion as of December 31, 2024, supporting future growth initiatives [28] Q&A Session Summary Question: Impact of AI boom on online recruitment industry - Management noted a significant increase in AI-related job postings and active searches, indicating a shift in recruitment dynamics [32][34] Question: Future roadmap for AI product development - The company plans to continue investing in AI applications and has already established a strong computing power base [39][41] Question: Recruitment demand across different enterprise sizes and industries - Management highlighted strong sequential growth in recruitment demand, particularly in AI-related jobs [46] Question: Customer acquisition cost and marketing plans for 2025 - There are no major marketing campaigns planned for 2025, with a focus on user growth and brand awareness [52] Question: Revenue contribution from blue-collar business and client feedback - The blue-collar segment is growing, with significant contributions from the HaiLuo program [56]

Financial Performance - Revenue for the year ended December 31, 2024, reached RMB 7,355.7 million, a 23.6% increase from RMB 5,952.0 million in 2023[4] - Operating profit surged by 101.9% to RMB 1,172.9 million in 2024, compared to RMB 581.0 million in 2023[4] - Adjusted net profit (non-GAAP) for 2024 was RMB 2,710.7 million, reflecting a 25.7% growth from RMB 2,156.2 million in 2023[4] - Net profit increased by 42.6% from RMB 1,099.2 million in 2023 to RMB 1,567.0 million in 2024[31] - Basic earnings per share for the year ended December 31, 2024, was RMB 1.80, compared to RMB 1.26 for the previous year, reflecting a growth of 42.9%[62] - Net profit attributable to shareholders for the year ended December 31, 2024, reached RMB 1,584,664, a 44.1% increase from RMB 1,099,227 in 2023[62] User Engagement and Growth - Average monthly active users increased by 25.3% to 53.0 million in 2024, up from 42.3 million in 2023[8] - The average daily active users reached 24.8% of monthly active users, indicating strong engagement on the platform[8] - The platform's user base expansion is attributed to targeted strategies in the manufacturing sector and enhanced blue-collar service capabilities[8] Operational Efficiency - The adjusted operating profit margin reached a historical high of 31.5% in 2024, driven by operational leverage and improved marketing efficiency[11] - The company aims to continue exploring AI's value in enhancing operational efficiency and user experience[9] Investments and Expenses - R&D expenses grew by 17.6% from RMB 1,543.6 million in 2023 to RMB 1,815.8 million in 2024, reflecting increased technology investments[27] - Marketing expenses rose by 4.1% from RMB 1,991.2 million in 2023 to RMB 2,073.1 million in 2024, primarily due to increased employee-related costs[26] Cash Flow and Assets - Cash and cash equivalents totaled RMB 14.7 billion as of December 31, 2024, with net cash flow from operating activities amounting to RMB 3.5 billion[32] - Total assets increased from RMB 17,940,048 thousand in 2023 to RMB 19,310,672 thousand in 2024, representing an increase of approximately 7.6%[63] - Net cash flow from operating activities improved from RMB 3,047,009 thousand in 2023 to RMB 3,542,495 thousand in 2024, an increase of about 16.2%[64] Shareholder Returns - The company authorized a new share repurchase plan allowing for the repurchase of up to USD 150 million of shares, effective from August 29, 2024[17] - The company repurchased a total of 1,670,190 Class A ordinary shares at a total cost of USD 12,994,513.70 during the reporting period[56] - A special cash dividend of USD 0.09 per ordinary share was approved, totaling approximately USD 79.2 million, paid in December 2023[83] - The company did not declare any final dividend for the year ended December 31, 2024[60] Corporate Governance and Compliance - The group complies with all corporate governance codes except for the separation of the roles of Chairman and CEO, which are held by the same individual[48] Strategic Initiatives - The company launched a proprietary AI model, "Nanbei Ge," which is the first compliant AI model in the domestic recruitment industry[9] - The company plans to enhance user experience and expand service offerings, focusing on AI technology and personalized product design[20] - Marketing initiatives for the 2024 Paris Olympics and the 2024 European Championship are expected to boost brand awareness[19] Acquisitions and Market Position - The acquisition of 77% stake in W.D Technology Investment Group Limited was completed for approximately RMB 374.3 million, enhancing the company's market position in blue-collar recruitment services[68] Liabilities and Financial Health - The debt-to-equity ratio is zero as the group has no interest-bearing borrowings as of December 31, 2024[40] - The total liabilities decreased from RMB 4,510,855 thousand in 2023 to RMB 4,347,852 thousand in 2024, a reduction of about 3.6%[63] - The group does not have any significant contingent liabilities as of December 31, 2024[43] - The group has no significant capital commitments as of December 31, 2024[44] Future Outlook - The company plans to publish its annual performance announcement and annual report on the Hong Kong Stock Exchange and its official website[86]

User Metrics - The average monthly active users for 2024 were 53.0 million, a 25.3% increase from 42.3 million in 2023[11]. - The total number of paying enterprise customers for the twelve months ended December 31, 2024, was 6.1 million, a 17.3% increase from 5.2 million in 2023[12]. Revenue and Profit - Total revenue for 2024 reached RMB 7,355.7 million (USD 1,007.7 million), representing a 23.6% increase from RMB 5,952.0 million in 2023[11]. - Revenue for Q4 2024 was RMB 1,823.6 million (USD 249.8 million), up 15.4% from RMB 1,580.2 million in Q4 2023[11]. - Operating profit for the year ended December 31, 2024, reached RMB 1,172,946, up 102.1% from RMB 580,971 in 2023[40]. - Net profit for Q4 2024 was RMB 444.2 million (USD 60.9 million), a 34.1% increase from RMB 331.2 million in Q4 2023[11]. - Adjusted net profit for the full year 2024 was RMB 2,710.7 million (USD 371.4 million), up 25.7% from RMB 2,156.2 million in 2023[27]. - The adjusted operating profit for the full year 2024 was RMB 2,316.6 million (USD 317.4 million), a 41.4% increase from RMB 1,637.9 million in 2023[26]. Operating Performance - Operating profit for Q4 2024 was RMB 380.6 million (USD 52.1 million), a 71.2% increase from RMB 222.3 million in Q4 2023[11]. - Adjusted operating profit for Q4 2024 was RMB 658.8 million (USD 90.3 million), up 26.8% from RMB 519.7 million in Q4 2023[11]. - The adjusted operating profit margin reached a historical high of 31.5% in 2024, driven by operational leverage and improved marketing efficiency[13]. Cash Flow and Assets - The operating cash flow for the full year 2024 was RMB 3,542.5 million (USD 485.3 million), an increase of 16.3% from RMB 3,047.0 million in 2023[29]. - Cash and cash equivalents as of December 31, 2024, totaled RMB 14,681.1 million (USD 2,011.3 million)[21]. - Total assets increased to RMB 19,310,672 as of December 31, 2024, from RMB 17,940,048 at the end of 2023, marking a growth of 7.6%[42]. Research and Development - R&D expenses for Q4 2024 were RMB 440.4 million (USD 60.3 million), a 2.4% increase from RMB 430.2 million in Q4 2023[21]. - Research and development expenses for the three months ended December 31, 2024, were RMB 440,360, slightly up from RMB 430,164 in the same period of 2023[40]. Shareholder Information - The company repurchased approximately USD 229 million worth of shares in 2024, representing 3.7% of the total outstanding shares as of December 31, 2024[30]. - The diluted adjusted EPS for the full year 2024 was RMB 3.00, a rise of 25.6% compared to RMB 2.39 in 2023[49]. Forward-Looking Statements - The company expects Q1 2025 total revenue to be between RMB 1.90 billion and RMB 1.92 billion, reflecting a year-over-year increase of 11.5% to 12.7%[31]. - Forward-looking statements may involve inherent risks and uncertainties, as outlined in the company's filings with the SEC and the Hong Kong Stock Exchange[36]. Financial Metrics - The company uses non-GAAP financial metrics to assess business performance, excluding non-cash equity incentive expenses[34]. - Non-GAAP financial metrics are considered supplementary indicators to identify business trends and help investors evaluate operational performance[34]. - The company emphasizes that non-GAAP financial metrics should not replace the most directly comparable GAAP financial metrics[35]. - The company encourages investors to consider its financial data comprehensively rather than relying on a single financial metric[35].

Core Insights - KANZHUN LIMITED, operating the BOSS Zhipin platform, reported strong financial results for the fourth quarter and full year of 2024, highlighting significant growth in user engagement and revenue generation [1][2][3]. Financial Performance - Average Monthly Active Users (MAU) for 2024 reached 53.0 million, a 25.3% increase from 42.3 million in 2023 [2]. - Fourth quarter revenues were RMB 1,823.6 million (US$ 249.8 million), up 15.4% from RMB 1,580.2 million in Q4 2023 [2][6]. - Full year revenues totaled RMB 7,355.7 million (US$ 1,007.7 million), reflecting a 23.6% increase from RMB 5,952.0 million in 2023 [2][17]. - Income from operations for Q4 2024 was RMB 380.6 million (US$ 52.1 million), a 71.2% increase from RMB 222.3 million in Q4 2023 [2][8]. - Adjusted income from operations for Q4 2024 was RMB 658.8 million (US$ 90.3 million), up 26.8% from RMB 519.7 million in Q4 2023 [2][8]. - Net income for Q4 2024 was RMB 444.2 million (US$ 60.9 million), a 34.1% increase from RMB 331.2 million in Q4 2023 [2][9]. - Full year net income was RMB 1,567.0 million (US$ 214.7 million), a 42.6% increase from RMB 1,099.2 million in 2023 [2][22]. Customer Growth - Total paid enterprise customers increased to 6.1 million in 2024, a 17.3% rise from 5.2 million in 2023 [4]. - Average MAU for Q4 2024 was 52.7 million, a 27.9% increase from 41.2 million in Q4 2023 [4]. Operational Efficiency - The adjusted operating margin for 2024 reached a record high of 31.5%, driven by effective business models and improved operational efficiencies [3]. - Total operating costs for Q4 2024 were RMB 1,456.3 million (US$ 199.5 million), a 6.8% increase from RMB 1,363.3 million in Q4 2023 [7][18]. Revenue Breakdown - Revenues from online recruitment services to enterprise customers for Q4 2024 were RMB 1,804.1 million (US$ 247.2 million), a 15.2% increase from RMB 1,566.7 million in Q4 2023 [10]. - Revenues from other services, mainly paid value-added services for job seekers, were RMB 19.5 million (US$ 2.7 million) for Q4 2024, a 44.4% increase from RMB 13.5 million in Q4 2023 [10][19]. Cash Position - As of December 31, 2024, the company had cash and cash equivalents totaling RMB 14,681.1 million (US$ 2,011.3 million) [16]. Share Repurchase Program - The company authorized a new share repurchase program in August 2024, allowing for the repurchase of up to US$ 150 million of its shares, in addition to a previous program for US$ 200 million [26][27]. Outlook - For Q1 2025, the company expects total revenues to be between RMB 1.90 billion and RMB 1.92 billion, representing a year-on-year increase of 11.5% to 12.7% [28].

Core Viewpoint - KANZHUN LIMITED, operating the BOSS Zhipin platform, will report its unaudited consolidated results for Q4 and the full year of 2024 on March 11, 2025, before the U.S. market opens [1] Company Overview - KANZHUN LIMITED operates BOSS Zhipin, a leading online recruitment platform in China, facilitating efficient connections between job seekers and enterprises through a highly interactive mobile app [4] - The platform promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process, benefiting from a large and diverse user base [4] - BOSS Zhipin has developed powerful network effects that enhance recruitment efficiency and drive rapid expansion [4]

Group 1 - KANZHUN LIMITED Sponsored ADR (BZ) is a notable stock in the Computer and Technology sector, currently outperforming its peers with a year-to-date gain of approximately 10.5% compared to the sector average of 1.9% [4] - The Zacks Rank for KANZHUN LIMITED is 1 (Strong Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings prospects [3] - The Zacks Consensus Estimate for BZ's full-year earnings has increased by 0.7% in the past quarter, reflecting improved analyst sentiment [4] Group 2 - KANZHUN LIMITED is part of the Internet - Software industry, which has seen an average gain of 15.8% this year, indicating that BZ is slightly underperforming its industry [6] - Another stock in the Computer and Technology sector, Celestica (CLS), has outperformed with a year-to-date increase of 43% and a Zacks Rank of 1 (Strong Buy) [5] - The Electronics - Manufacturing Services industry, to which Celestica belongs, is ranked 3 and has gained 18.2% this year [6]

Core Viewpoint - Kanzhun Limited has been upgraded to a Zacks Rank 2 (Buy), indicating a positive shift in earnings estimates which is expected to influence its stock price favorably [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system highlights the importance of changing earnings estimates in determining stock price movements, as institutional investors often base their valuations on these estimates [3]. - An increase in earnings estimates typically leads to higher fair value for a stock, prompting institutional investors to buy or sell, which in turn affects stock prices [3]. Kanzhun's Earnings Outlook - Kanzhun's rising earnings estimates and the recent rating upgrade suggest an improvement in the company's underlying business, which is likely to drive the stock price higher [4]. - For the fiscal year ending December 2024, Kanzhun is expected to earn $0.80 per share, reflecting a 19.4% increase from the previous year [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates and has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988 [6]. - Kanzhun's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [9].

Investment Strategy - The individual investor employs a diversified investment approach, incorporating fundamental investing (e.g., bottoms-up analysis), technical investing (e.g., historical chart analysis), and momentum investing (e.g., share price reaction post-earnings) to refine their investment process [1] - The investor uses Seeking Alpha as a platform to track the performance of their investment ideas and connect with like-minded investors who share similar investment interests [1] Kanzhun Ltd (BZ) Analysis - The investor previously issued a buy rating for Kanzhun Ltd (NASDAQ: BZ) in September, citing strong fundamentals despite a drop in share price [3] - The investor reiterates the buy rating for BZ, maintaining confidence in the company's fundamentals [3]

Investment Rating - The report maintains a "Buy" rating for BOSS Zhipin (BZ) [1] Core Views - BOSS Zhipin's Q3 2024 performance met expectations, with revenue growth of 19% YoY to RMB 1.912 billion and adjusted net profit of RMB 739 million, up 4% YoY, exceeding Bloomberg consensus estimates [2] - The company expects Q4 2024 revenue to be between RMB 1.795-1.810 billion, representing a YoY increase of 13.6%-14.6% [2] - BOSS Zhipin repurchased USD 220 million worth of shares in 2024 [2] User Metrics and Market Trends - Q3 2024 MAU reached 58 million, up 30% YoY and 6% QoQ, hitting a record high [2] - Paid enterprise customers totaled 6 million in the 12 months ending September 30, 2024, up 22% YoY and 2% QoQ [2] - The ratio of job seekers to enterprise users improved QoQ, potentially shortening recruitment cycles and temporarily slowing enterprise customer payment growth [2] Blue-Collar Business Performance - Blue-collar recruitment revenue exceeded 38% of total revenue in Q3 2024, with manufacturing revenue up 45% YoY [3] - The "Hailuo Preferred" project saw a 45% QoQ increase in attracted enterprises and a 40% QoQ rise in contract value [3] - Large enterprise revenue grew over 30% YoY, with ARPU up 5% YoY and flat QoQ [3] Financial Performance and Projections - Q3 2024 adjusted operating profit was RMB 605 million, representing 31.7% of revenue [3] - Adjusted net profit margin was 38.7%, down 5.8% YoY due to higher tax rates [3] - 2024-2026 Non-GAAP net profit forecasts are RMB 2.6/3.2/4.1 billion, with corresponding Non-GAAP P/E ratios of 18/15/11x [4] Financial Ratios and Valuation - 2024-2026 ROE projections are 10.4%/12.8%/15.9% [10] - 2024-2026 gross margin forecasts are 83.3%/84.4%/84.9% [10] - 2024-2026 net profit margin estimates are 20.5%/25.5%/31.3% [10] - The stock closed at USD 14.58 with a market cap of USD 6.373 billion [4] Cash Flow and Balance Sheet - 2024-2026 operating cash flow projections are RMB 2.974/4.352/4.548 billion [8] - 2024-2026 net cash increase forecasts are RMB 337 million/1.634 billion/1.711 billion [8] - Total assets are projected to grow from RMB 19.096 billion in 2024E to RMB 24.175 billion in 2026E [9]

Investment Rating - The investment rating for BOSS Zhipin (BZ.O) is "Outperform the Market" [4][15][16] Core Views - The company reported stable growth in Q3 2024, with revenue reaching 1.91 billion yuan, a year-on-year increase of 19%, aligning with prior guidance [2][8] - The B-end revenue was 1.89 billion yuan, up 18.7%, while C-end revenue surged by 49% to 22.5 million yuan, indicating strong performance in blue-collar recruitment, particularly in manufacturing and logistics sectors [2][8] - The company anticipates Q4 2024 revenue growth of 13.6%-14.6%, reflecting a moderate economic recovery [3][15] - The management has initiated a share repurchase plan, demonstrating confidence in long-term growth [3][15] Summary by Sections Financial Performance - In Q3 2024, adjusted operating profit was 610 million yuan, a 9% increase, while adjusted net profit was 740 million yuan, up 4.1% [2][8] - The adjusted net profit margin decreased to 38.7%, down 6 percentage points year-on-year, primarily due to a higher tax rate [2][10] - The average monthly active users reached 58 million, a 30% year-on-year increase, with a steady rise in ARPPU to 1,172 yuan, reflecting strong customer retention [2][9] Business Segmentation - The blue-collar recruitment sector outperformed the white-collar sector, with manufacturing revenue growing over 45% year-on-year [2][8] - The number of paid enterprise clients reached 6 million, a 22% increase year-on-year, although the growth rate of paid users has slowed due to a mismatch in job demand and talent supply [2][9] Future Outlook - Revenue forecasts for 2024-2026 are set at 7.24 billion, 8.05 billion, and 9.56 billion yuan, with adjusted net profits of 2.67 billion, 3.52 billion, and 4.31 billion yuan respectively [3][15] - The company is expected to maintain a strong position in the blue-collar recruitment market, supported by favorable domestic economic policies [3][15]