Kanzhun (BZ) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 1.91 billion (CNY 1.91 billion), up 19% year-on-year, with net income at RMB 463.8 million and adjusted operating income at RMB 610 million, a 10% increase year-on-year.

• Average monthly active users for Q3 2024 were 58 million, up 30% year-on-year, with over 40 million new verified users added from January to September 2024.

• Paid enterprise customers reached 6 million in the twelve months ended September 30, 2024, up 22.4% year-on-year.

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

• Share repurchase programs authorized up to $350 million in 2024, with $220 million repurchased by year-end.

Financial highlights

• Adjusted operating margin was 32% for Q3 2024; adjusted net margin was 38.7%.

• Gross margin remained high at 84% in Q3 2024.

• Adjusted net income for Q3 2024 was RMB 739 million, up 4% year-on-year.

• Operating cash flow for Q3 2024 was RMB 812.3 million; 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 is expected between RMB 1.795 billion and RMB 1.81 billion, a year-on-year increase of 13.6%-14.6%.

• Share-based compensation expenses are expected to continue declining in 2025.

• Gross margin is projected 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.

• Guidance reflects current market and operational conditions in China, subject to change.