Group 1 - The article focuses on the investment service "Asia Value & Moat Stocks," which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The service emphasizes deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The rating for Kanzhun (NASDAQ: BZ) has been upgraded from Hold to Buy, indicating a positive outlook based on the preview of its Q1'24 earnings [1]

Financial Performance - In Q4 2024, the company's GAAP revenue reached CNY 1.82 billion, a year-on-year increase of 15% [2] - The adjusted net income for the same quarter was CNY 720 million, also reflecting a 15% year-on-year growth [2] - For the entire year of 2024, GAAP revenue totaled CNY 7.36 billion, marking a 24% increase year-on-year [3] - Adjusted net income for 2024 was CNY 2.71 billion, up 26% year-on-year, with adjusted operating income rising 41% to CNY 2.32 billion [3] Cost and Expense Situation - Total operating costs and expenses in Q4 increased by 7% to CNY 1.5 billion, while annual costs grew by 15% to CNY 6.2 billion [4] - Stock-based compensation expenses as a percentage of revenue decreased by 4 and 2 percentage points for the quarter and the year, respectively [4] - Sales and marketing expenses in Q4 decreased by 2% to CNY 426 million, while annual expenses increased by 4% to CNY 2.1 billion [4] Cash Flow and Share Buyback - Net cash provided by operating activities in Q4 was CNY 956 million, with a 16% increase for the year to CNY 3.5 billion [5] - As of December 31, 2024, cash reserves stood at CNY 14.7 billion, with approximately USD 229 million in shares repurchased, accounting for 3.7% of total outstanding shares [5] User Growth and Market Trends - In 2024, the company attracted nearly 49.5 million new verified users, setting a record for annual user growth [6] - The average monthly active users (MAU) reached 53 million, a 25.3% year-on-year increase, with Q4 MAU growing 28% to 52.7 million [6] - The blue-collar user segment contributed 38% to overall revenue in 2024, with manufacturing being a key growth area [7] Product and Service Innovation - The new version of the BOSS Zhipin app introduced AI-driven search features and interview coaching for recent graduates [8] - AI applications for employers include an AI agent that assists in candidate selection and communication, improving efficiency by 30% [8] Business Outlook - For Q1 2025, the company expects total revenue between CNY 1.9 billion and CNY 1.92 billion, representing a year-on-year growth of 11.5% to 12.7% [9]

Core Viewpoint - BOSS Zhipin's quarterly report shows mixed results with some key indicators performing well while others lag behind, but the company's internal strengths remain intact, making macroeconomic conditions the primary focus for future performance [1][7]. Group 1: Financial Performance - Q4 revenue reached 18.2 billion CNY, a 15% year-on-year increase, slightly exceeding expectations [14]. - The company aims for a Non-GAAP operating profit of 3 billion CNY this year, with an implied profit margin of approximately 37% [22]. - The core operating profit for Q4 grew by 69% year-on-year, although higher costs slightly impacted net profit expectations [2][22]. Group 2: User Engagement and Market Dynamics - Monthly active users (MAU) fell to 52.7 million in Q4, a decrease of 5.3 million from the previous quarter, which is below market expectations [3][11]. - Despite the decline in user activity, BOSS Zhipin's user growth rate remains higher than that of competitors [12]. - The company has set a target to increase MAU by 40 million over the next three years, but current progress is lagging [13]. Group 3: Business Segments and Clientele - The number of paid enterprise accounts increased to 6.1 million, with a 1.7% rise in average payment per enterprise, indicating a shift towards larger clients [15][4]. - The company is focusing on expanding its client base in sectors where it has historically been less active, such as emerging markets [4][19]. Group 4: Cash Flow and Shareholder Returns - BOSS Zhipin reported a healthy cash flow with 9 billion CNY in operating cash flow for Q4, and a year-end cash reserve of 14.7 billion CNY [6][4]. - The company has approved a share buyback plan totaling 350 million USD for 2024, with a significant increase in buyback activity noted in Q4 [4][6]. Group 5: Market Outlook and Strategic Positioning - The macroeconomic environment remains challenging, but there are signs of recovery in certain sectors, such as manufacturing and logistics [17][18]. - The company is leveraging its strong business model and management team to maintain profit growth and enhance shareholder returns despite external pressures [9][8].

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]

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]

Financial Data and Key Metrics Changes - In 2024, revenue was $474 million, a decline of 27% year-over-year [12] - Adjusted EBITDA was $78 million, equating to a 16% adjusted EBITDA margin, towards the higher end of expectations [12] - Net loss for 2024 was $12.9 million, compared to a net income of $5.6 million in Q4 2023 [13][25] - Q4 2024 revenue was $111 million, representing an 18% decline year-over-year and down 5% quarter-over-quarter [23] - Cash, cash equivalents, and marketable securities totaled $506 million as of December 31, 2024 [26] Business Line Data and Key Metrics Changes - Total web traffic in Q4 2024 grew by 15% year-over-year, significantly outpacing competitors [10] - Quarterly paid employers were 58,000, an 18% decrease versus Q4 2023 [24] - Revenue per paid employer was $1,920, roughly flat year-over-year and up 7% sequentially [24] Market Data and Key Metrics Changes - The labor market has faced a decline in hiring for 28 consecutive months, with the quit rate near its lowest level since 2015 [11] - The NFIB Small Business Optimism Index posted its highest reading since October 2018, indicating potential recovery in hiring plans [13] Company Strategy and Development Direction - The company aims to grow market share by improving job seeker traffic and enhancing product offerings [7][8] - New product launches include ZipIntro and a next-generation resume database, aimed at improving customer satisfaction and engagement [9][19] - The acquisition of Breakroom is part of the strategy to expand the product suite and enhance employer ratings [9][18] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, citing positive internal and external indicators [13][29] - The company plans to increase investment in sales and marketing initiatives as hiring activity recovers [15][29] - Management acknowledged the uncertainty in the labor market but remains confident in long-term growth opportunities [30][31] Other Important Information - The company has made substantial improvements in its marketplace despite a historic labor market downturn [16] - The focus remains on connecting job seekers with employers effectively, leveraging proprietary data and technology [7][95] Q&A Session Summary Question: Positive trends observed in Q1 - Management noted that positive trends began towards the end of Q4, with an increase in paid employers and account reactivations [34][35] Question: Q1 guidance and margin implications - The guidance reflects investments in response to positive trends, indicating a strategic approach to sales and marketing [39][41] Question: Reactivations and hiring activity - Reactivations indicate high intent employers preparing to post jobs, aligning with observed positive sentiment [44] Question: Revenue trajectory and growth expectations - Management indicated that year-over-year growth is likely to be achieved by Q4 2025, with less chance of growth before then [46] Question: Cost structure and flexibility - The company has flexibility in its cost structure, particularly in sales and marketing spend, allowing for adjustments based on market conditions [78][79] Question: Competitive landscape and AI initiatives - The competitive focus is on gaining market share among job seekers, with AI being leveraged to enhance matching and engagement [92][95]