Kanzhun Ltd. Sponsored Adr ((BZ)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Kanzhun Ltd. Earnings Call Highlights Strong Growth Amid Challenges
The recent earnings call for Kanzhun Ltd. showcased a predominantly positive sentiment, underscored by robust financial performance, advancements in AI integration, and strategic shareholder return initiatives. Despite facing challenges such as a decline in verified graduate users and a temporary slowdown in blue-collar manufacturing, the company’s achievements in key areas significantly outweighed these hurdles.
Strong Financial Performance
Kanzhun Ltd. reported impressive financial results, with total revenue reaching RMB 2.1 billion, marking a 9.7% increase year-on-year. The company’s net income soared to RMB 710 million, reflecting a remarkable 70.4% growth and achieving a net profit margin exceeding 33%. These figures underscore the company’s strong financial health and operational efficiency.
User Growth and Engagement
The company experienced substantial user growth, adding over 30 million verified new users. The BOSS Zhipin app saw its average verified active users rise to 63.56 million, a 16.5% increase year-on-year, highlighting Kanzhun’s ability to attract and retain users effectively.
AI Integration and Innovation
Kanzhun made significant strides in AI integration, with applications such as AI-assisted job recommendations and interview training robots enhancing user experience and operational efficiency. These innovations are pivotal in maintaining the company’s competitive edge in the market.
Shareholder Returns
The company completed a successful secondary share offer in Hong Kong, raising HKD 2.2 billion. It also announced an annual dividend policy with a USD 80 million dividend and a new share repurchase program of up to USD 250 million, demonstrating its commitment to returning value to shareholders.
Improved Margin and Cost Management
Kanzhun’s adjusted operating profit reached RMB 880 million, up 33% year-on-year, with an adjusted operating margin of 41.9%, an increase of 7.5 percentage points. This improvement reflects the company’s effective cost management strategies.
Decline in Verified Graduate Users
Despite overall user growth, the company faced a decline in verified graduate users, with numbers dropping over 20% year-on-year in June and July. This trend indicates a moderation in job-seeking demand among graduates.
Challenges in Blue-Collar Manufacturing
The blue-collar manufacturing sector experienced a short-term slowdown due to tariffs, although it resumed year-on-year growth from May onwards. This sector’s recovery is crucial for the company’s continued success.
Forward-Looking Guidance
Kanzhun Ltd. provided optimistic forward-looking guidance, projecting third-quarter 2025 revenues between RMB 2.13 billion and RMB 2.16 billion, representing a year-on-year increase of 11.4% to 13%. The company remains focused on enhancing user growth and leveraging AI advancements to drive future success.
In summary, Kanzhun Ltd.’s earnings call painted a positive picture of the company’s current performance and future prospects. With strong financial results, innovative AI applications, and strategic shareholder initiatives, Kanzhun is well-positioned to navigate challenges and capitalize on growth opportunities.