KANZHUN LIMITED Announces Second Quarter 2024 Financial Results
Rhea-AI Summary
KANZHUN (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, reported strong financial results for Q2 2024. Revenues increased 28.8% year-over-year to RMB1,916.7 million (US$263.8 million). Net income rose 34.8% to RMB417.3 million (US$57.4 million), while adjusted net income grew 26.4% to RMB718.7 million (US$98.9 million).
Key highlights include:
- Average monthly active users up 25.2% to 54.6 million
- Total paid enterprise customers increased 31.1% to 5.9 million
- Adjusted operating margin reached a record high, up 5 percentage points year-over-year
The company expects Q3 2024 revenues between RMB1.90-1.92 billion, representing 18.2-19.5% year-over-year growth.
Positive
- Revenues increased 28.8% year-over-year to RMB1,916.7 million
- Net income rose 34.8% to RMB417.3 million
- Adjusted net income grew 26.4% to RMB718.7 million
- Average monthly active users up 25.2% to 54.6 million
- Total paid enterprise customers increased 31.1% to 5.9 million
- Adjusted operating margin reached a record high, up 5 percentage points year-over-year
- Q3 2024 revenue guidance projects 18.2-19.5% year-over-year growth
Negative
- None.
News Market Reaction
On the day this news was published, BZ declined 21.45%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
BEIJING, Aug. 28, 2024 (GLOBE NEWSWIRE) -- KANZHUN LIMITED (“BOSS Zhipin” or the “Company”) (Nasdaq: BZ; HKEX: 2076), a leading online recruitment platform in China, today announced its unaudited financial results for the quarter ended June 30, 2024.
Second Quarter 2024 Highlights
- Revenues for the second quarter of 2024 were RMB1,916.7 million (US
$263.8 million ), an increase of28.8% from RMB1,487.6 million for the same quarter of 2023. - Calculated cash billings1 for the second quarter of 2024 were RMB1,950.7 million (US
$268.4 million ), an increase of20.5% from RMB1,619.5 million for the same quarter of 2023. - Average monthly active users2 for the second quarter of 2024 were 54.6 million, an increase of
25.2% from 43.6 million for the same quarter of 2023. - Total paid enterprise customers3 in the twelve months ended June 30, 2024 were 5.9 million, an increase of
31.1% from 4.5 million in the twelve months ended June 30, 2023. - Net income for the second quarter of 2024 was RMB417.3 million (US
$57.4 million ), an increase of34.8% from RMB309.6 million for the same quarter of 2023. Adjusted net income4 for the second quarter of 2024 was RMB718.7 million (US$98.9 million ), an increase of26.4% from RMB568.5 million for the same quarter of 2023.
Mr. Jonathan Peng Zhao, Founder, Chairman, and Chief Executive Officer of the Company, remarked, “In the second quarter, the Company’s average monthly active users grew by
Mr. Phil Yu Zhang, Chief Financial Officer, elaborated, “In this quarter, we delivered healthy and sustainable top-line and bottom-line growth. The Company’s adjusted income from operation increased by
_____________________
1 Calculated cash billings is a non-GAAP financial measure, derived by adding the change in deferred revenue to revenues. For more information about the non-GAAP financial measures, please see the section of “Non-GAAP Financial Measures.”
2 Monthly active users refer to the number of verified user accounts, including both job seekers and enterprise users, that logged on to our mobile application in a given month at least once.
3 Paid enterprise customers are defined as enterprise users and company accounts from which we recognize revenues for our online recruitment services.
4 Adjusted net income and adjusted basic and diluted net income per ADS attributable to ordinary shareholders are non-GAAP financial measures, excluding the impact of share-based compensation expenses. For more information about the non-GAAP financial measures, please see the section of “Non-GAAP Financial Measures.”
Second Quarter 2024 Financial Results
Revenues
Revenues were RMB1,916.7 million (US
- Revenues from online recruitment services to enterprise customers were RMB1,892.7 million (US
$260.4 million ) for the second quarter of 2024, representing an increase of28.7% from RMB1,470.8 million for the same quarter of 2023. This increase was mainly driven by the enterprise user growth. - Revenues from other services, which mainly comprise paid value-added services offered to job seekers, were RMB24.0 million (US
$3.3 million ) for the second quarter of 2024, representing an increase of42.9% from RMB16.8 million for the same quarter of 2023, mainly benefiting from expanded user base.
Operating cost and expenses
Total operating cost and expenses were RMB1,566.6 million (US
- Cost of revenues was RMB316.5 million (US
$43.6 million ) for the second quarter of 2024, representing an increase of17.1% from RMB270.3 million for the same quarter of 2023, primarily due to increases in server and bandwidth cost, payment processing cost and employee-related expenses. - Sales and marketing expenses were RMB545.2 million (US
$75.0 million ) for the second quarter of 2024, representing an increase of15.6% from RMB471.6 million for the same quarter of 2023, primarily due to increases in customer acquisition cost and sales employee-related expenses. - Research and development expenses were RMB443.7 million (US
$61.1 million ) for the second quarter of 2024, representing an increase of21.3% from RMB365.9 million for the same quarter of 2023, primarily due to increased investments in technology. - General and administrative expenses were RMB261.2 million (US
$35.9 million ) for the second quarter of 2024, representing an increase of28.7% from RMB203.0 million for the same quarter of 2023, primarily due to increased employee-related expenses.
Income from operations
Income from operations was RMB358.6 million (US
Net income and adjusted net income
Net income was RMB417.3 million (US
Adjusted net income was RMB718.7 million (US
Net income per ADS and adjusted net income per ADS
Basic and diluted net income per ADS attributable to ordinary shareholders for the second quarter of 2024 were RMB0.95 (US
Adjusted basic and diluted net income per ADS attributable to ordinary shareholders4 for the second quarter of 2024 were RMB1.63 (US
Net cash provided by operating activities
Net cash provided by operating activities was RMB868.6 million (US
Cash position
Balance of cash and cash equivalents, short-term time deposits and short-term investments was RMB14,281.9 million (US
Share Repurchase Program
In March 2024, the Company’s board of directors authorized a new share repurchase program effective from March 20, 2024 for a 12-month period, under which the Company may repurchase up to US
Outlook
For the third quarter of 2024, the Company currently expects its total revenues to be between RMB1.90 billion and RMB1.92 billion, representing a year-on-year increase of
Conference Call Information
The Company will host a conference call at 8:00AM U.S. Eastern Time on Wednesday, August 28, 2024 (8:00PM Beijing Time on Wednesday, August 28, 2024) to discuss the financial results.
Participants are required to pre-register for the conference call at:
https://register.vevent.com/register/BIf5b5864661284aca82692d09288ae4fb
Upon registration, participants will receive an email containing participant dial-in numbers and unique personal PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.
Additionally, a live and archived webcast of the conference call will be available on the Company's investor relations website at https://ir.zhipin.com.
Exchange Rate
This announcement contains translations of certain RMB amounts into U.S. dollar (“US$”) amounts at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the exchange rate of RMB7.2672 to US
Non-GAAP Financial Measures
In evaluating the business, the Company considers and uses non-GAAP financial measures, such as calculated cash billings, adjusted net income, adjusted net income attributable to ordinary shareholders, adjusted basic and diluted net income per ordinary share attributable to ordinary shareholders and adjusted basic and diluted net income per ADS attributable to ordinary shareholders as supplemental measures to review and assess operating performance. The Company derives calculated cash billings by adding the change in deferred revenue to revenues. The Company uses calculated cash billings to measure and monitor sales growth because the Company generally bills its paid enterprise customers at the time of sales, but may recognize a portion of the related revenue ratably over time. The Company believes calculated cash billings provides valuable insights into the cash generated from sales and is a valuable measure for monitoring service demand and financial performance. The Company defines adjusted net income and adjusted net income attributable to ordinary shareholders by excluding the impact of share-based compensation expenses, which are non-cash expenses, from the related GAAP financial measures. The Company believes that these non-GAAP financial measures help identify underlying trends in the business that could otherwise be distorted by the effect of certain expenses and facilitate investors’ assessment of the Company’s operating performance.
The non-GAAP financial measures are not defined under U.S. GAAP, and are not presented in accordance with U.S. GAAP. The non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as a substitute for most directly comparable GAAP financial measures. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure.
A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures has been provided in the table captioned “Unaudited Reconciliation of GAAP and Non-GAAP Results” at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements which are made pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. The Company may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in announcements made on the website of The Stock Exchange of Hong Kong Limited, in its interim and annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the U.S. Securities and Exchange Commission and The Stock Exchange of Hong Kong Limited. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
About KANZHUN LIMITED
KANZHUN LIMITED operates the leading online recruitment platform BOSS Zhipin in China. The Company connects job seekers and enterprise users in an efficient and seamless manner through its highly interactive mobile app, a transformative product that promotes two-way communication, focuses on intelligent recommendations, and creates new scenarios in the online recruiting process. Benefiting from its large and diverse user base, BOSS Zhipin has developed powerful network effects to deliver higher recruitment efficiency and drive rapid expansion.
For investor and media inquiries, please contact:
KANZHUN LIMITED
Investor Relations
Email: ir@kanzhun.com
PIACENTE FINANCIAL COMMUNICATIONS
Email: kanzhun@tpg-ir.com
| KANZHUN LIMITED Unaudited Condensed Consolidated Statements of Operations (All amounts in thousands, except for share and per share data) | ||||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Revenues | ||||||||||||||||||
| Online recruitment services to enterprise customers | 1,470,822 | 1,892,723 | 260,447 | 2,730,879 | 3,576,810 | 492,185 | ||||||||||||
| Others | 16,793 | 24,020 | 3,305 | 34,282 | 43,686 | 6,011 | ||||||||||||
| Total revenues | 1,487,615 | 1,916,743 | 263,752 | 2,765,161 | 3,620,496 | 498,196 | ||||||||||||
| Operating cost and expenses | ||||||||||||||||||
| Cost of revenues(1) | (270,322 | ) | (316,532 | ) | (43,556 | ) | (517,486 | ) | (611,971 | ) | (84,210 | ) | ||||||
| Sales and marketing expenses(1) | (471,593 | ) | (545,169 | ) | (75,018 | ) | (1,100,431 | ) | (1,124,439 | ) | (154,728 | ) | ||||||
| Research and development expenses(1) | (365,907 | ) | (443,729 | ) | (61,059 | ) | (698,975 | ) | (911,298 | ) | (125,399 | ) | ||||||
| General and administrative expenses(1) | (202,986 | ) | (261,210 | ) | (35,944 | ) | (367,572 | ) | (531,682 | ) | (73,162 | ) | ||||||
| Total operating cost and expenses | (1,310,808 | ) | (1,566,640 | ) | (215,577 | ) | (2,684,464 | ) | (3,179,390 | ) | (437,499 | ) | ||||||
| Other operating (expenses)/income, net | (1,776 | ) | 8,506 | 1,170 | 17,035 | 21,096 | 2,903 | |||||||||||
| Income from operations | 175,031 | 358,609 | 49,345 | 97,732 | 462,202 | 63,600 | ||||||||||||
| Interest and investment income, net | 151,278 | 153,814 | 21,166 | 278,671 | 309,870 | 42,640 | ||||||||||||
| Foreign exchange gain | 3,907 | 63 | 9 | 2,808 | 93 | 13 | ||||||||||||
| Other (expenses)/income, net | (1,113 | ) | (264 | ) | (36 | ) | 4,529 | (523 | ) | (72 | ) | |||||||
| Income before income tax expenses | 329,103 | 512,222 | 70,484 | 383,740 | 771,642 | 106,181 | ||||||||||||
| Income tax expenses | (19,506 | ) | (94,972 | ) | (13,069 | ) | (41,480 | ) | (112,668 | ) | (15,504 | ) | ||||||
| Net income | 309,597 | 417,250 | 57,415 | 342,260 | 658,974 | 90,677 | ||||||||||||
| Net loss attributable to non-controlling interests | - | 4,483 | 617 | - | 7,710 | 1,061 | ||||||||||||
| Net income attributable to ordinary shareholders of KANZHUN LIMITED | 309,597 | 421,733 | 58,032 | 342,260 | 666,684 | 91,738 | ||||||||||||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||||||||||||
| — Basic | 868,643,514 | 888,934,440 | 888,934,440 | 867,314,841 | 884,833,645 | 884,833,645 | ||||||||||||
| — Diluted | 900,111,944 | 924,052,158 | 924,052,158 | 903,757,988 | 915,678,778 | 915,678,778 | ||||||||||||
| Net income per ordinary share attributable to ordinary shareholders | ||||||||||||||||||
| — Basic | 0.36 | 0.47 | 0.07 | 0.39 | 0.75 | 0.10 | ||||||||||||
| — Diluted | 0.34 | 0.46 | 0.06 | 0.38 | 0.73 | 0.10 | ||||||||||||
| Net income per ADS(2) attributable to ordinary shareholders | ||||||||||||||||||
| — Basic | 0.71 | 0.95 | 0.13 | 0.79 | 1.51 | 0.21 | ||||||||||||
| — Diluted | 0.69 | 0.91 | 0.13 | 0.76 | 1.46 | 0.20 | ||||||||||||
(1) Include share-based compensation expenses as follows:
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| Cost of revenues | 12,352 | 11,499 | 1,582 | 22,962 | 22,416 | 3,085 | ||||||
| Sales and marketing expenses | 64,067 | 71,482 | 9,836 | 124,530 | 141,954 | 19,534 | ||||||
| Research and development expenses | 105,756 | 109,980 | 15,134 | 196,430 | 212,673 | 29,265 | ||||||
| General and administrative expenses | 76,727 | 108,482 | 14,928 | 127,271 | 213,377 | 29,362 | ||||||
| 258,902 | 301,443 | 41,480 | 471,193 | 590,420 | 81,246 | |||||||
(2) Each ADS represents two Class A ordinary shares.
| KANZHUN LIMITED Unaudited Condensed Consolidated Balance Sheets (All amounts in thousands) | ||||||
| As of | ||||||
| December 31, 2023 | June 30, 2024 | |||||
| RMB | RMB | US$ | ||||
| ASSETS | ||||||
| Current assets | ||||||
| Cash and cash equivalents | 2,472,959 | 3,472,390 | 477,817 | |||
| Short-term time deposits | 6,922,803 | 5,267,014 | 724,765 | |||
| Short-term investments | 3,513,885 | 5,542,508 | 762,674 | |||
| Accounts receivable, net | 16,727 | 29,856 | 4,108 | |||
| Inventories | - | 2,787 | 384 | |||
| Amounts due from related parties | 3,966 | 5,625 | 774 | |||
| Prepayments and other current assets | 442,697 | 535,488 | 73,686 | |||
| Total current assets | 13,373,037 | 14,855,668 | 2,044,208 | |||
| Non-current assets | ||||||
| Property, equipment and software, net | 1,793,488 | 1,909,180 | 262,712 | |||
| Intangible assets, net | 8,093 | 270,766 | 37,259 | |||
| Goodwill | 5,690 | 6,528 | 898 | |||
| Right-of-use assets, net | 282,612 | 409,314 | 56,323 | |||
| Long-term time deposits | - | 726,476 | 99,966 | |||
| Long-term investments | 2,473,128 | 986,917 | 135,804 | |||
| Other non-current assets | 4,000 | - | - | |||
| Total non-current assets | 4,567,011 | 4,309,181 | 592,962 | |||
| Total assets | 17,940,048 | 19,164,849 | 2,637,170 | |||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | 629,216 | 170,700 | 23,489 | |||
| Deferred revenue | 2,794,075 | 3,175,000 | 436,895 | |||
| Other payables and accrued liabilities | 779,046 | 614,515 | 84,560 | |||
| Operating lease liabilities, current | 155,014 | 185,661 | 25,548 | |||
| Total current liabilities | 4,357,351 | 4,145,876 | 570,492 | |||
| Non-current liabilities | ||||||
| Operating lease liabilities, non-current | 125,079 | 211,219 | 29,065 | |||
| Deferred tax liabilities | 28,425 | 26,403 | 3,633 | |||
| Total non-current liabilities | 153,504 | 237,622 | 32,698 | |||
| Total liabilities | 4,510,855 | 4,383,498 | 603,190 | |||
| Total shareholders’ equity | 13,429,193 | 14,781,351 | 2,033,980 | |||
| Total liabilities and shareholders’ equity | 17,940,048 | 19,164,849 | 2,637,170 | |||
| KANZHUN LIMITED Unaudited Condensed Consolidated Statements of Cash Flows (All amounts in thousands) | ||||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||||||||
| Net cash provided by operating activities | 763,708 | 868,556 | 119,517 | 1,307,618 | 1,774,097 | 244,124 | ||||||||||||
| Net cash used in investing activities | (4,427,593 | ) | (72,309 | ) | (9,950 | ) | (8,390,368 | ) | (595,771 | ) | (81,981 | ) | ||||||
| Net cash provided by/(used in) financing activities | 23,166 | (81,847 | ) | (11,263 | ) | 68,955 | (186,425 | ) | (25,653 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalents | 126,916 | 10,824 | 1,490 | 2,740 | 7,530 | 1,037 | ||||||||||||
| Net (decrease)/increase in cash and cash equivalents | (3,513,803 | ) | 725,224 | 99,794 | (7,011,055 | ) | 999,431 | 137,527 | ||||||||||
| Cash and cash equivalents at beginning of the period | 6,254,572 | 2,747,166 | 378,023 | 9,751,824 | 2,472,959 | 340,290 | ||||||||||||
| Cash and cash equivalents at end of the period | 2,740,769 | 3,472,390 | 477,817 | 2,740,769 | 3,472,390 | 477,817 | ||||||||||||
| KANZHUN LIMITED Unaudited Reconciliation of GAAP and Non-GAAP Results (All amounts in thousands, except for share and per share data) | ||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||
| RMB | RMB | US$ | RMB | RMB | US$ | |||||||
| Revenues | 1,487,615 | 1,916,743 | 263,752 | 2,765,161 | 3,620,496 | 498,196 | ||||||
| Add: Change in deferred revenue | 131,874 | 33,997 | 4,678 | 503,885 | 380,925 | 52,417 | ||||||
| Calculated cash billings | 1,619,489 | 1,950,740 | 268,430 | 3,269,046 | 4,001,421 | 550,613 | ||||||
| Net income | 309,597 | 417,250 | 57,415 | 342,260 | 658,974 | 90,677 | ||||||
| Add: Share-based compensation expenses | 258,902 | 301,443 | 41,480 | 471,193 | 590,420 | 81,246 | ||||||
| Adjusted net income | 568,499 | 718,693 | 98,895 | 813,453 | 1,249,394 | 171,923 | ||||||
| Net income attributable to ordinary shareholders of KANZHUN LIMITED | 309,597 | 421,733 | 58,032 | 342,260 | 666,684 | 91,738 | ||||||
| Add: Share-based compensation expenses | 258,902 | 301,443 | 41,480 | 471,193 | 590,420 | 81,246 | ||||||
| Adjusted net income attributable to ordinary shareholders of KANZHUN LIMITED | 568,499 | 723,176 | 99,512 | 813,453 | 1,257,104 | 172,984 | ||||||
| Weighted average number of ordinary shares used in computing adjusted net income per share (Non-GAAP) | ||||||||||||
| — Basic | 868,643,514 | 888,934,440 | 888,934,440 | 867,314,841 | 884,833,645 | 884,833,645 | ||||||
| — Diluted | 900,111,944 | 924,052,158 | 924,052,158 | 903,757,988 | 915,678,778 | 915,678,778 | ||||||
| Adjusted net income per ordinary share attributable to ordinary shareholders | ||||||||||||
| — Basic | 0.65 | 0.81 | 0.11 | 0.94 | 1.42 | 0.20 | ||||||
| — Diluted | 0.63 | 0.78 | 0.11 | 0.90 | 1.37 | 0.19 | ||||||
| Adjusted net income per ADS attributable to ordinary shareholders | ||||||||||||
| — Basic | 1.31 | 1.63 | 0.22 | 1.88 | 2.84 | 0.39 | ||||||
| — Diluted | 1.26 | 1.57 | 0.22 | 1.80 | 2.75 | 0.38 | ||||||
FAQ
What was KANZHUN's (BZ) revenue for Q2 2024?
How much did KANZHUN's (BZ) net income grow in Q2 2024?
What was KANZHUN's (BZ) average monthly active user count in Q2 2024?
How many paid enterprise customers did KANZHUN (BZ) have in the twelve months ended June 30, 2024?
What is KANZHUN's (BZ) revenue guidance for Q3 2024?
