KANZHUN LIMITED Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-28
KANZHUN LIMITED Reports Second Quarter 2024 Financial Results
KANZHUN LIMITED ("BOSS Zhipin" or the "Company") (NASDAQ: BZ, HKEX: 2076), a leading online recruitment platform in China, has announced its unaudited financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Financial Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $263.8M | $204.7M | 28.8% | $269.59M |
| Earnings Per Share (GAAP) | $0.13 | $0.10 | N/A | $0.21 |
| Adjusted Net Income | $98.9M | $78.2M | 26.4% | |
| Net Income (GAAP) | $57.4M | $41.6M | 34.8% | |
| Adjusted Earnings Per ADS (Non-GAAP) | $0.22 | $0.19 | 15.8% | |
| Net Cash from Operating Activities | $119.5M | $105.2M | 13.7% |
Interpretation: The company's revenue for Q2 2024 was slightly below the consensus estimate. Despite the miss, the firm showcased a robust year-over-year growth across key metrics such as total revenue, net income, and cash flow from operations.
Segment Revenue Performance
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Online Recruitment Services | $260.4M | $202.4M | 28.7% |
| Value-added Services | $3.3M | $2.3M | 42.9% |
Interpretation: Revenue from online recruitment services was the major contributor, reflecting a strong demand driven by enterprise user growth. The value-added services segment also exhibited impressive growth, mainly attributed to an expanded user base.
Key Developments and Operational Highlights
- Average Monthly Active Users (MAUs) : 54.6 million, a 25.2% YoY increase.
- Total Paid Enterprise Customers : 5.9 million, a 31.1% YoY increase.
- Adjusted Net Income : $98.9 million, a 26.4% YoY increase.
- Adjusted Operating Margin : Reached an all-time high, up 5 percentage points YoY.
- R&D Investment : 23.2% of revenues, maintaining an industry-leading level.
Management Commentary
Mr. Jonathan Peng Zhao, Founder, Chairman, and CEO, stated, "We solidified our leading position with a 25.2% increase in average MAUs, reaching 54.6 million. Despite macro headwinds, our continued user penetration has driven steady revenue and profit growth. Our increased share repurchase effort underscores our confidence in the company's long-term trajectory."
Chief Financial Officer Mr. Phil Yu Zhang added, "We've achieved historical highs in adjusted operating margin this quarter, illustrating successful cost control and robust operational efficiency. Continuously investing in technology and R&D remains a cornerstone of our strategy."
Share Repurchase Program
In March 2024, the board authorized a share repurchase program, allowing the company to buy back up to $200 million worth of shares over a 12-month period.
Forward Guidance
For Q3 2024, the company anticipates total revenues to be between $261.7M and $264.2M, projecting a YoY increase of 18.2% to 19.5%.
Stock Price Movement
Following the earnings release, the company's stock experienced a -5.77% decline.
Conclusion
In summary, KANZHUN LIMITED demonstrated solid financial performance and operational efficiency in Q2 2024. Key metrics showed positive growth trends, and strategic investments in technology have fortified its market position. Despite a minor shortfall in revenue compared to expectations, the company remains well-positioned for future growth, reinforced by strong guidance and a proactive share repurchase program.
