The Motley Foolยท2025-05-22 22:31Core Insights - Kanzhun reported a 13% year-over-year revenue increase to 1.92 billion yuan and a 112% rise in GAAP net income to 512 million yuan for Q1 2025 [1] - The company achieved an adjusted operating margin of 36%, up 13 percentage points from 23% in the same period last year, indicating strong operational leverage and strategic execution [3] Financial Performance - Adjusted operating income reached 690 million yuan, supported by an 8% reduction in total operating costs and a decline in share-based compensation expenses for three consecutive quarters [2] - Sales and marketing expenses were reduced by 15% year over year, contributing to improved margins [2] User Base and Market Position - The blue-collar segment contributed over 39% to revenue, with tier 3-and-below cities accounting for more than 23% of revenue, indicating a diversified user base [4] - The company has limited exposure to export-oriented enterprises, which mitigates risks from global tariff fluctuations [5] AI Integration and Productivity - Kanzhun has invested over 1 billion yuan in AI infrastructure since 2023, with AI-driven recruitment tools managing over 9 million candidate conversations during beta testing [6] - Despite the integration of AI, the competitive landscape in the human capital industry remains stable, with no significant disruptions observed [7] Future Outlook - Management projects Q2 revenue between 2.05 billion yuan and 2.08 billion yuan, reflecting a year-over-year growth of 7.0% to 8.5% [8] - The company reaffirmed its full-year non-GAAP operating profit target of 3 billion yuan and has robust cash reserves exceeding $2 billion [8]