• Q4 GAAP Revenue: RMB1.82 billion, up 15% year on year.
• Q4 Adjusted Net Income: RMB720 million, reflecting a 15% year on year growth.
• Full Year 2024 GAAP Revenue: RMB7.336 billion, up 24% year on year.
• Full Year 2024 Adjusted Net Income: RMB2.71 billion, up 26% year on year.
• Full Year 2024 Adjusted Operating Income: RMB2.32 billion, rising by 41% year on year.
• Share-Based Compensation Expenses: Decreased by 2.3 percentage points as a percentage of revenue compared to 2023.
• Newly Added Verified Users in 2024: 49.5 million.
• Total Users as of December 31, 2024: Over 225 million users and 16.6 million enterprises.
• Full Year 2024 MAU: 53 million, a year on year increase of 25.3%.
• Revenue Contribution from Blue Collar Segments in 2024: 38% of overall revenue.
• Number of Paid Enterprise Customers in 2024: 6.1 million, a year on year increase of 17.3%.
• Q4 ARPU: Up by 6.8% year on year and 3.9% quarter on quarter.
• Full Year 2024 ARPU: Increased by more than 5% year on year.
• Q4 Operating Cost and Expenses: Increased by 7% year on year to RMB1.5 billion.
• Full Year 2024 Operating Cost and Expenses: Increased by 15% to RMB6.2 billion.
• Q4 Adjusted Income from Operation: Grew by 27% to RMB659 million.
• Full Year 2024 Adjusted Income from Operation: Grew by 41% to RMB2.3 billion.
• Q4 Adjusted Operating Margin: 36.1%, a quarterly historical high.
• Full Year 2024 Adjusted Operating Margin: Improved by 4 percentage points to 31.5%.
• Q4 Net Income: RMB444 million.
• Full Year 2024 Net Income: RMB1.6 billion.
• Q4 Adjusted Net Income: RMB722 million, up 15% year on year.
• Full Year 2024 Adjusted Net Income: RMB2.7 billion, up 26% year on year.
• Full Year 2024 Adjusted Net Margin: 36.9%, a historical high.
• Q4 Net Cash Provided by Operating Activities: RMB956 million.
• Full Year 2024 Net Cash Provided by Operating Activities: RMB3.5 billion, up 16% year on year.
• Cash Position as of December 31, 2024: RMB14.7 billion.
• 2024 Share Repurchase: Approximately $229 million, accounting for 3.7% of total outstanding shares.
• Q4 Share Repurchase: 6.7 million ADS for USD93 million, a 1.1% decrease in total outstanding shares.
• Q1 2025 Revenue Outlook: Expected to be between RMB1.9 billion and RMB1.92 billion, a year on year increase of 11.5% to 12.7%.

• Warning! GuruFocus has detected 1 Warning Sign with BZ.

Release Date: March 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kanzhun Ltd (NASDAQ:BZ) achieved a GAAP revenue of RMB1.82 billion in Q4 2024, marking a 15% year-on-year increase.
• The company reported a 28% year-on-year increase in average verified monthly active users, reaching 52.7 million.
• For the full year 2024, GAAP revenue grew by 24% year-on-year to RMB7.336 billion.
• Adjusted operating income for 2024 rose by 41% year-on-year, demonstrating strong profit growth.
• The company successfully reduced marketing expenses due to increased brand recognition and improved customer acquisition efficiency.

Negative Points

• Despite revenue growth, the recruitment market environment in 2024 was challenging.
• Share-based compensation expenses, although reduced, still impact the company's financials.
• There is a concern about the potential pollution of resumes and job descriptions due to AI-generated content.
• The company faces limitations in expanding its AI infrastructure due to restrictions on GPU purchases.
• The company does not plan aggressive monetization strategies for ARPU growth, which may limit short-term revenue potential.

Q & A Highlights

Q: How might the AI boom, driven by DeepSeek, impact the online recruitment industry, and what are Kanzhun's competitive advantages in this context? A: Peng Zhao, Executive Chairman and CEO, explained that the AI boom, particularly with DeepSeek, is transforming the recruitment industry by increasing AI-related job postings and active job numbers. On the job seeker side, AI-powered search keywords have risen significantly. While AI enhances understanding and generation of human language, it also raises concerns about the authenticity of AI-generated resumes and job descriptions. Kanzhun's competitive advantage lies in its continuous investment in AI, proprietary models like Nanbeige, and accumulated user behavior data.

Q: What is Kanzhun's strategy for AI investment and product development moving forward? A: Peng Zhao noted that Kanzhun has invested significantly in AI, including purchasing GPUs, and is focusing on AI application agents. The company plans to continue exploring AI applications and expects to launch new services. A product in beta testing for recruiters has shown potential to increase efficiency and is expected to be well-received.

Q: Can you provide more details about recruitment demand trends post-Chinese New Year and the sustainability of these trends? A: Wenbei Wang, Head of Investor Relations, highlighted strong sequential growth in job postings and a stable recovery in white-collar industries. AI-related jobs are driving growth in certain internet sub-sectors. The company is witnessing recovery across various industries and company sizes, with no aggressive plans to increase ARPU, allowing for organic improvement.

Q: What are Kanzhun's plans for customer acquisition costs and marketing strategies in 2025? A: Yu Zhang, CFO, stated that there are no major marketing campaigns planned for 2025. The focus remains on user growth, with a target of over 35 million new users. Brand awareness has reduced traffic acquisition costs, and the company expects continued margin improvement. The non-GAAP operating profit target for 2025 is set at RMB3 billion, a 30% increase from 2024.

Q: What is the strategic focus for Kanzhun's blue-collar business, and how is it impacting revenue? A: Wenbei Wang discussed the Hailuo project, which targets agents with high hiring demand. The project contributed over RMB200 million in contract value, representing more than 2% of revenue. AI developments may level the playing field for less experienced agencies, and Kanzhun plans to continue investing in closed-loop and placement-related services.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.