Kanzhun Limited (NASDAQ:BZ) Q2 2024 Results Conference Call August 28, 2024 8:00 AM ET Company Participants Wenbei Wang - Head of IR Jonathan Peng Zhao - Founder, Chairman and CEO Phil Yu Zhang - Director and CFO Conference Call Participants Timothy Zhao - Goldman Sachs Eddy Wang - Morgan Stanley Robin Zhu - Bernstein Operator Ladies and gentlemen, thank you for standing by and welcome to the Kanzhun Limited Second Quarter 2024 Financial Results Conference Call. At this time, all participants are in a liste ...

KANZHUN LIMITED Sponsored ADR (BZ) came out with quarterly earnings of $0.22 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.17 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 10%. A quarter ago, it was expected that this company would post earnings of $0.13 per share when it actually produced earnings of $0.16, delivering a surprise of 23.08%. Over the last four quarters, t ...

[Executive Summary & Company Overview](index=1&type=section&id=Executive%20Summary%20%26%20Company%20Overview) [Second Quarter 2024 Highlights](index=1&type=section&id=Second%20Quarter%202024%20Highlights) KANZHUN LIMITED achieved significant financial and operational growth in Q2 2024, with revenue up 28.8% and strong user base expansion Key Performance Highlights for Q2 2024 | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Revenue | 1,916.7 Million | 1,487.6 Million | 28.8% | | Calculated Cash Billings | 1,950.7 Million | 1,619.5 Million | 20.5% | | Average Monthly Active Users (MAU) | 54.6 Million | 43.6 Million | 25.2% | | Paying Enterprise Customers (LTM) | 5.9 Million | 4.5 Million | 31.1% | | Net Income | 417.3 Million | 309.6 Million | 34.8% | | Adjusted Net Income | 718.7 Million | 568.5 Million | 26.4% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasizes user growth as a core driver for revenue and profit, expressing confidence in long-term development and shareholder returns - CEO Mr. Peng Zhao noted that the company's average monthly active users increased by **25.2%** year-over-year to **54.6 million**, solidifying its leading position as China's largest online recruitment platform. Despite macroeconomic headwinds, enterprise user growth is the core driver for stable revenue and profit growth. The company prioritizes shareholder returns and has initiated and will continue to increase share repurchases, demonstrating confidence in its long-term development[4](index=4&type=chunk) - CFO Mr. Yu Zhang stated that the company achieved healthy and sustainable revenue and profit growth this quarter. Adjusted operating income increased by **52.1%** year-over-year, and the adjusted operating profit margin reached a record high, increasing by **5 percentage points** from the same period last year, attributed to the company's excellent business model and effective cost control. The company continues to invest in technology R&D, with R&D expenses accounting for **23.2% of revenue**, maintaining an industry-leading level[4](index=4&type=chunk) [About KANZHUN LIMITED](index=5&type=section&id=About%20KANZHUN%20LIMITED) KANZHUN LIMITED operates BOSS Zhipin, a leading online recruitment platform in China, leveraging interactive mobile applications and network effects - KANZHUN LIMITED operates BOSS Zhipin, China's leading online recruitment platform, efficiently connecting job seekers and enterprise users through highly interactive mobile applications that facilitate two-way communication, smart recommendations, and innovative online recruitment scenarios[21](index=21&type=chunk) - BOSS Zhipin benefits from its large and diverse user base, which creates strong network effects, enhancing recruitment efficiency and driving rapid expansion[21](index=21&type=chunk) [Second Quarter 2024 Financial Performance](index=2&type=section&id=Second%20Quarter%202024%20Financial%20Performance) [Revenues](index=2&type=section&id=Revenues) Total revenue for Q2 2024 reached RMB 1.917 billion, a 28.8% increase, primarily driven by online recruitment services for enterprise clients Q2 2024 Revenue Overview | Revenue Source | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Online Recruitment Services (Enterprise Customers) | 1,892.7 Million | 1,470.8 Million | 28.7% | | Other Services (Value-added services for job seekers) | 24.0 Million | 16.8 Million | 42.9% | | **Total Revenue** | **1,916.7 Million** | **1,487.6 Million** | **28.8%** | - The growth in online recruitment service revenue from enterprise customers was primarily driven by an increase in the number of enterprise users[5](index=5&type=chunk) - The growth in other services revenue primarily benefited from an expanding user base[5](index=5&type=chunk) [Operating Costs and Expenses](index=2&type=section&id=Operating%20Costs%20and%20Expenses) Total operating costs and expenses increased by 19.5% to RMB 1.567 billion in Q2 2024, driven by higher R&D and administrative expenses Q2 2024 Operating Costs and Expenses | Expense Category | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Total Operating Costs and Expenses | 1,566.6 Million | 1,310.8 Million | 19.5% | | Share-based Compensation Expenses | 301.4 Million | 258.9 Million | 16.4% | | Cost of Revenues | 316.5 Million | 270.3 Million | 17.1% | | Sales and Marketing Expenses | 545.2 Million | 471.6 Million | 15.6% | | Research and Development Expenses | 443.7 Million | 365.9 Million | 21.3% | | General and Administrative Expenses | 261.2 Million | 203.0 Million | 28.7% | - The increase in cost of revenues was primarily due to higher server and bandwidth costs, payment processing fees, and employee-related expenses[6](index=6&type=chunk) - The increase in sales and marketing expenses was mainly attributable to higher customer acquisition costs and employee-related expenses for sales personnel[6](index=6&type=chunk) - The increase in research and development expenses was primarily due to increased technology investments[7](index=7&type=chunk) - The increase in general and administrative expenses was primarily due to higher employee-related expenses[7](index=7&type=chunk) [Profitability](index=2&type=section&id=Profitability) The company's profitability significantly improved in Q2 2024, with operating income surging by 104.9% and net income growing by 34.8% Q2 2024 Profitability Metrics | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Operating Income | 358.6 Million | 175.0 Million | 104.9% | | Net Income | 417.3 Million | 309.6 Million | 34.8% | | Adjusted Net Income | 718.7 Million | 568.5 Million | 26.4% | [Earnings Per Share (EPS)](index=3&type=section&id=Earnings%20Per%20Share%20(EPS)) In Q2 2024, basic and diluted net earnings per ADS were RMB 0.95 and RMB 0.91, with adjusted figures at RMB 1.63 and RMB 1.57 Q2 2024 Earnings Per ADS | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | | :--- | :--- | :--- | | Basic Net Earnings (per ADS) | 0.95 | 0.71 | | Diluted Net Earnings (per ADS) | 0.91 | 0.69 | | Adjusted Basic Net Earnings (per ADS) | 1.63 | 1.31 | | Adjusted Diluted Net Earnings (per ADS) | 1.57 | 1.26 | [Cash Flow from Operating Activities](index=3&type=section&id=Cash%20Flow%20from%20Operating%20Activities) Net cash generated from operating activities in Q2 2024 was RMB 869 million, increasing by 13.7% year-over-year Q2 2024 Cash Flow from Operating Activities | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | YoY Growth | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 868.6 Million | 763.7 Million | 13.7% | [Financial Position, Capital Allocation & Outlook](index=3&type=section&id=Financial%20Position%2C%20Capital%20Allocation%20%26%20Outlook) [Cash Position](index=3&type=section&id=Cash%20Position) As of June 30, 2024, the company maintained ample liquidity with cash, short-term deposits, and investments totaling RMB 14.282 billion Cash Position as of June 30, 2024 | Metric | Amount (RMB) | | :--- | :--- | | Total Cash and Cash Equivalents, Short-term Time Deposits, and Short-term Investments | 14,281.9 Million | [Share Repurchase Program](index=3&type=section&id=Share%20Repurchase%20Program) The board authorized a new 12-month share repurchase program in March 2024, allowing for up to $200 million in repurchases - The company's board of directors authorized a new share repurchase program in March 2024, effective from March 20, 2024, for a period of **12 months**[12](index=12&type=chunk) - Under this program, the company may repurchase up to **$200 million** of its shares, including in the form of ADSs[12](index=12&type=chunk) [Business Outlook (Q3 2024 Guidance)](index=3&type=section&id=Business%20Outlook%20(Q3%202024%20Guidance)) The company forecasts Q3 2024 total revenue between RMB 1.90 billion and RMB 1.92 billion, projecting 18.2% to 19.5% year-over-year growth Q3 2024 Revenue Outlook | Metric | Forecast Range (RMB) | YoY Growth | | :--- | :--- | :--- | | Total Revenue | 1.90 Billion - 1.92 Billion | 18.2% - 19.5% | - This forecast reflects the company's current view on the Chinese market and operating conditions, which are subject to change and cannot be reasonably predicted with accuracy as of the date of this release[13](index=13&type=chunk) [Additional Information](index=3&type=section&id=Additional%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) The company will host a conference call on August 28, 2024, to discuss financial results, with pre-registration and webcast details available - The company will hold a conference call to discuss its financial results on August 28, 2024, at **8:00 AM U.S. Eastern Time** (8:00 PM Beijing/Hong Kong Time on August 28, 2024)[14](index=14&type=chunk) - Participants are required to pre-register via a designated link, and a live and archived webcast of the conference call will be available on the company's investor relations website[14](index=14&type=chunk) [Exchange Rate](index=4&type=section&id=Exchange%20Rate) RMB amounts in this announcement are converted to USD using the Federal Reserve Board's H.10 rate of 7.2672 as of June 28, 2024 - For the convenience of readers, certain RMB amounts in this announcement have been translated into U.S. dollars at an exchange rate of **RMB 7.2672 to US$1.00**, the exchange rate as of June 28, 2024, as set forth in the H.10 statistical release of the Federal Reserve Board[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like calculated cash billings and adjusted net income to assess operating performance and provide business insights - The company uses non-GAAP financial measures such as calculated cash billings and adjusted net income as supplemental measures to review and assess operating performance[17](index=17&type=chunk) - Calculated cash billings are derived by adding the change in deferred revenue to revenue, used to measure and monitor sales growth, as the company typically bills paying enterprise customers at the time of sale, but related revenue may be recognized proportionally over time[17](index=17&type=chunk) - Adjusted net income is derived by excluding share-based compensation expenses (non-cash expenses), which helps identify underlying business trends that may be impacted by certain expenses and facilitates investor evaluation of the company's operating performance[17](index=17&type=chunk) - Non-GAAP financial measures are not defined under U.S. GAAP and should not be considered in isolation or as a substitute for the most directly comparable GAAP financial measures[18](index=18&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements under the 1995 U.S. Private Securities Litigation Reform Act, subject to inherent risks - This press release contains "forward-looking" statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995[19](index=19&type=chunk) - Forward-looking statements involve inherent risks and uncertainties, and the company undertakes no obligation to update any forward-looking statements, except as required under applicable law[19](index=19&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) This section presents KANZHUN LIMITED's unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2024 Unaudited Condensed Consolidated Statements of Operations (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | 1,916,743 | 1,487,615 | 3,620,496 | 2,765,161 | | Total Operating Costs and Expenses | (1,566,640) | (1,310,808) | (3,179,390) | (2,684,464) | | Operating Income | 358,609 | 175,031 | 462,202 | 97,732 | | Net Income | 417,250 | 309,597 | 658,974 | 342,260 | | Basic Net Earnings per ADS | 0.95 | 0.71 | 1.51 | 0.79 | | Diluted Net Earnings per ADS | 0.91 | 0.69 | 1.46 | 0.76 | [Unaudited Condensed Consolidated Balance Sheets](index=8&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) This section presents KANZHUN LIMITED's unaudited condensed consolidated balance sheets as of June 30, 2024, and December 31, 2023 Unaudited Condensed Consolidated Balance Sheets (Summary) | Metric | As of June 30, 2024 (RMB) | As of December 31, 2023 (RMB) | | :--- | :--- | :--- | | Total Assets | 19,164,849 | 17,940,048 | | Total Liabilities | 4,383,498 | 4,510,855 | | Total Shareholders' Equity | 14,781,351 | 13,429,193 | | Cash and Cash Equivalents | 3,472,390 | 2,472,959 | | Short-term Time Deposits | 5,267,014 | 6,922,803 | | Short-term Investments | 5,542,508 | 3,513,885 | | Deferred Revenue | 3,175,000 | 2,794,075 | [Unaudited Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents KANZHUN LIMITED's unaudited condensed consolidated statements of cash flows for the three and six months ended June 30, 2024 Unaudited Condensed Consolidated Statements of Cash Flows (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 868,556 | 763,708 | 1,774,097 | 1,307,618 | | Net Cash from Investing Activities | (72,309) | (4,427,593) | (595,771) | (8,390,368) | | Net Cash from Financing Activities | (81,847) | 23,166 | (186,425) | 68,955 | | Cash and Cash Equivalents, End of Period | 3,472,390 | 2,740,769 | 3,472,390 | 2,740,769 | [Unaudited Reconciliation of GAAP and Non-GAAP Results](index=10&type=section&id=Unaudited%20Reconciliation%20of%20GAAP%20and%20Non-GAAP%20Results) This section provides KANZHUN LIMITED's unaudited reconciliation of GAAP and non-GAAP results for the three and six months ended June 30, 2024 Unaudited Reconciliation of GAAP and Non-GAAP Results (Summary) | Metric | Q2 2024 (RMB) | Q2 2023 (RMB) | H1 2024 (RMB) | H1 2023 (RMB) | | :--- | :--- | :--- | :--- | :--- | | Revenues | 1,916,743 | 1,487,615 | 3,620,496 | 2,765,161 | | Add: Change in Deferred Revenue | 33,997 | 131,874 | 380,925 | 503,885 | | **Calculated Cash Billings** | **1,950,740** | **1,619,489** | **4,001,421** | **3,269,046** | | Net Income | 417,250 | 309,597 | 658,974 | 342,260 | | Add: Share-based Compensation Expenses | 301,443 | 258,902 | 590,420 | 471,193 | | **Adjusted Net Income** | **718,693** | **568,499** | **1,249,394** | **813,453** | | Adjusted Basic Net Earnings per ADS | 1.63 | 1.31 | 2.84 | 1.88 | | Adjusted Diluted Net Earnings per ADS | 1.57 | 1.26 | 2.75 | 1.80 |

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]