In the dynamic landscape of the online recruitment industry, KANZHUN LIMITED, operating the prominent BOSS Zhipin platform in China, has recently made significant strides. The company's Q3 2024 financial results, announced on December 11, 2024, showcase a resilient business model and promising growth trajectory.

Unraveling KANZHUN LIMITED's Q3 Financial Triumph and Future Vision

Financial Performance Highlights

Revenues for the third quarter of 2024 reached an impressive RMB1,911.6 million (US$272.4 million), marking an 19.0% increase from the same period in 2023. The growth was primarily driven by a 18.7% rise in revenues from online recruitment services to enterprise customers, reaching RMB1,889.1 million (US$269.2 million). This surge was attributed to the continuous growth of paid enterprise users. Additionally, revenues from other services, such as paid value-added services for job seekers, increased by 49.0% to RMB22.5 million (US$3.2 million), benefiting from an expanded user base.Operating cost and expenses for the quarter totaled RMB1,586.9 million (US$226.1 million), representing a 16.8% increase from 2023. Share-based compensation expenses decreased by 4.6% to RMB275.1 million (US$39.2 million). Cost of revenues rose by 17.4% to RMB314.0 million (US$44.7 million), mainly due to increases in server and bandwidth costs, payment processing costs, and employee-related expenses. Sales and marketing expenses increased by 14.2% to RMB522.3 million (US$74.4 million), driven by increased advertising expenses during the Paris 2024 Olympic Games and the UEFA Euro 2024. Research and development expenses grew by 12.0% to RMB464.2 million (US$66.1 million), reflecting increased investments in technology. General and administrative expenses rose by 30.5% to RMB286.4 million (US$40.8 million), primarily due to increased employee-related expenses.Despite these cost increases, the company achieved notable income from operations of RMB330.2 million (US$47.1 million), a 26.5% increase from 2023. Adjusted income from operations was RMB605.3 million (US$86.2 million), up 10.2%. Net income for the quarter was RMB463.8 million (US$66.1 million), an 8.9% increase, and adjusted net income was RMB738.9 million (US$105.3 million), a 3.5% increase.

Share Repurchase and Outlook

In August 2024, the company's board authorized a new share repurchase program for 12 months, allowing it to repurchase up to US$150 million of its shares. This program operates in conjunction with the previous one, which can repurchase up to US$200 million. For the fourth quarter of 2024, the company expects total revenues to be between RMB1.795 billion and RMB1.81 billion, representing a 13.6% to 14.6% year-on-year increase. This outlook reflects the company's current views on the market and operational conditions in China, which are subject to change.

Operational Metrics and Investor Relations

Paid enterprise customers are defined as enterprise users and company accounts from which the company recognizes revenues. Monthly active users, referring to the number of verified user accounts that logged on to the mobile application at least once in a month, showed a 30.0% year-on-year growth. The company also provides non-GAAP financial measures, such as adjusted income from operations and adjusted net income, to help investors assess its operating performance.For investor and media inquiries, KANZHUN LIMITED's investor relations team can be contacted at ir@kanzhun.com, and PIACENTE FINANCIAL COMMUNICATIONS at kanzhun@tpg-ir.com. A conference call to discuss the financial results will be held at 7:00 AM U.S. Eastern Time on Wednesday, December 11, 2024 (8:00 PM Beijing Time). Participants can pre-register at https://register.vevent.com/register/BI637f58180286482692b41611b0e8df0a and will receive dial-in numbers and a personal PIN. A live and archived webcast of the conference call will be available on the company's investor relations website at https://ir.zhipin.com.The company's balance of cash and cash equivalents, short-term time deposits, and short-term investments was RMB14,599.5 million (US$2,080.4 million) as of September 30, 2024. Net cash provided by operating activities was relatively stable at RMB812.3 million (US$115.8 million) compared to the same period in 2023.In conclusion, KANZHUN LIMITED's Q3 2024 financial results demonstrate its strength and potential in the online recruitment market. With a focus on sustainable growth and shareholder returns, the company is well-positioned for the future.