Kanzhun (BZ) Q3 2024 earnings summary

Executive summary

• Revenue reached RMB 1.91 billion in Q3 2024, up 19% year-on-year, with net income of RMB 463.8 million and adjusted operating income of RMB 610 million, up 10% year-on-year.

• Average monthly active users were 58 million, up 30% year-on-year, and paid enterprise customers reached 6 million, up 22% year-on-year.

• Blue-collar business contributed over 38% of total revenue, with manufacturing, logistics, and automobile sectors performing best.

• Management highlighted robust user growth, stable ARPPU, and ongoing share repurchase as key strengths.

• Innovative mobile-native direct recruitment model and expansion into blue-collar, white/gold-collar, and SME segments drive engagement and monetization.

Financial highlights

• Adjusted net income for Q3 2024 was RMB 739 million, up 4% year-on-year; adjusted operating margin was 32%; gross margin remained high at 84%.

• Revenues from online recruitment services to enterprise customers were RMB 1,889.1 million, up 18.7% year-on-year.

• Net cash provided by operating activities was RMB 812.3 million in Q3 2024.

• Cash and equivalents stood at RMB 14.6 billion as of September 30, 2024.

• Share-based compensation expenses declined 9% quarter-on-quarter and 5% year-on-year.

Outlook and guidance

• Q4 2024 revenue expected between RMB 1.795 billion and RMB 1.81 billion, up 13.6%-14.6% year-on-year.

• Management expects continued user growth of at least 15% in 2025, with stable or improving paying ratios and RPU.

• Gross margin expected to remain flat or improve slightly in 2025, with capped or reduced marketing spend and disciplined new business investment.

• Management highlights long-term ARPPU growth potential and continued user expansion.