Kanzhun Ltd. Sponsored Adr ((BZ)) has held its Q4 earnings call. Read on for the main highlights of the call.
Kanzhun Ltd. Reports Strong Revenue Growth Amid Operational Challenges
The recent earnings call of Kanzhun Ltd. painted a picture of robust growth and strategic advancements, tempered by some operational challenges. The sentiment expressed during the call was largely positive, with significant revenue growth, user expansion, and successful AI integration being the highlights. However, increased operational costs and challenges related to AI data management were noted, slightly overshadowing the positive aspects but still reflecting a favorable outlook overall.
Revenue Growth
Kanzhun Ltd. reported impressive revenue growth for the fiscal year 2024, achieving a GAAP revenue of RMB 7.36 billion, marking a 24% increase year-on-year. The fourth quarter alone saw a revenue of RMB 1.82 billion, up 15% from the previous year, showcasing the company’s strong financial performance.
User Growth
The BOSS Zhipin app, a key product of Kanzhun, saw its average verified monthly active users (MAU) increase by 28% year-on-year to 52.7 million in Q4 2024. For the full year, the MAU reached 53 million, representing a 25.3% year-on-year increase, highlighting the app’s growing popularity and user engagement.
Profitability
Kanzhun’s profitability also saw a significant boost, with adjusted net income for 2024 reaching RMB 2.71 billion, up 26% year-on-year. The adjusted operating income grew by 41% year-on-year, reflecting the company’s efficient cost management and revenue generation strategies.
AI Integration
The integration of AI features into Kanzhun’s app has been a strategic success, improving job seeker interaction and recruiter efficiency. The introduction of AI-driven interview coaching further enhanced the platform’s value proposition, positioning Kanzhun as a leader in leveraging technology for recruitment.
Share Repurchase
In a move that underscores confidence in its long-term growth, Kanzhun repurchased approximately $229 million worth of shares in 2024, accounting for 3.7% of total outstanding shares. This strategic decision reflects the company’s commitment to enhancing shareholder value.
Marketing and Operational Costs
While marketing expenses decreased, Kanzhun faced increased costs in payment processing, server, and bandwidth, impacting overall expenses. This highlights the challenges of scaling operations while maintaining cost efficiency.
Challenges in AI and Data Management
The potential for AI-generated resumes and job descriptions to affect data quality was highlighted as a concern. This challenge underscores the need for robust data management strategies to ensure the integrity of the platform’s offerings.
R&D and G&A Expenses
R&D expenses saw an 18% year-on-year increase due to investments in AI infrastructure, while G&A expenses rose by 35% year-on-year, driven by new business initiatives. These investments are crucial for sustaining growth and innovation.
Forward-Looking Guidance
Looking ahead, Kanzhun Ltd. provided optimistic guidance for the first quarter of 2025, with expected revenue between RMB 1.9 billion and RMB 1.92 billion, indicating an 11.5% to 12.7% year-on-year increase. The company aims to capitalize on growth opportunities in blue-collar segments, non-Tier 1 cities, and micro and small enterprises.
In conclusion, Kanzhun Ltd.’s earnings call reflected a strong performance with significant growth in revenue and user base, alongside strategic advancements in AI integration. Despite facing some operational challenges, the company’s forward-looking guidance suggests continued optimism and potential for further growth.