Kanzhun Ltd. Sponsored Adr ((BZ)) has held its Q1 earnings call. Read on for the main highlights of the call.
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Kanzhun Ltd. Earnings Call Highlights Strong Growth Amidst Cautious AI Monetization
The recent earnings call for Kanzhun Ltd. presented a largely positive outlook, highlighting strong revenue and net income growth, improved margins, and significant advancements in AI technology. The company reported robust user growth and engagement metrics, maintaining a strong cash position. However, concerns were raised regarding the ongoing tariff war and a cautious approach to AI monetization, which may limit potential revenue growth. Despite these concerns, the positive aspects significantly outweigh the negatives.
Strong Year-on-Year Revenue Growth
Kanzhun Ltd. reported a GAAP revenue of RMB 1.92 billion for the first quarter of 2025, marking a 13% year-on-year increase. This growth reflects the company’s successful strategies in expanding its market reach and enhancing its service offerings.
Significant Net Income Increase
The company achieved a remarkable 112% increase in net income year-on-year, reaching RMB 510 million in the first quarter. This substantial rise underscores Kanzhun’s effective cost management and operational efficiency.
User Growth and Engagement
Kanzhun added over 15 million verified new users, with monthly active users reaching 57.56 million, a 24% increase year-on-year. This growth was driven by a significant increase in new blue-collar users and expansion into lower-tier cities.
Improvement in Operating Margin
The adjusted operating margin improved to 36%, up 13 percentage points year-on-year. This improvement highlights the company’s ability to optimize its operations and enhance profitability.
AI Technology Advancements
Kanzhun has made significant advancements in AI technology, with tools like interview robots and recruitment assistants showing promising results. These innovations have improved efficiency and user experience, contributing to better recruitment outcomes.
Robust Cash Position
The company reported net cash provided by operating activities of RMB 1.0 billion, with a total cash position of RMB 14.8 billion. This strong cash reserve supports Kanzhun’s growth initiatives and potential shareholder returns.
Ongoing Tariff War Concerns
While the impact of the tariff war has not intensified, it remains a concern for Kanzhun, particularly in recruitment for export-related industries. The company continues to monitor these developments closely.
Limited AI Monetization
Despite advancements in AI technology, Kanzhun remains cautious in monetizing these features. This cautious approach may slow potential revenue growth from AI innovations, but it reflects a prudent strategy to ensure sustainable growth.
Forward-Looking Guidance
Looking ahead, Kanzhun Ltd. anticipates second-quarter revenues between RMB 2.05 billion and RMB 2.08 billion, representing a year-on-year growth of 7.0% to 8.5%. The company expects continued user growth, particularly in blue-collar segments and lower-tier cities, with AI integration playing a crucial role in enhancing recruitment efficiency and user engagement.
In summary, Kanzhun Ltd.’s earnings call highlighted a strong financial performance with significant growth in revenue and net income, robust user engagement, and advancements in AI technology. While concerns about the tariff war and AI monetization persist, the company’s positive trajectory and strategic initiatives position it well for future growth.