How did BZ's Q3 2024 earnings surprise analysts?

BOSS Zhipin (BZ) surprised analysts with a EPS surprise of $0.01 and a revenue surprise of $2.8 million for Q3 2024, according to the latest reports. Here's a detailed analysis: |code|Ticker|Name|Date|Estimate EPS|EPS Surprise|market_code| |---|---|---|---|---|---|---| |BZ|BZ.O|BOSS ZHIPIN|2024 Q1|0.13|0.03|185| |BZ|BZ.O|BOSS ZHIPIN|2024 Q2|0.21|0.01|185| |BZ|BZ.O|BOSS ZHIPIN|2024 Q3|0.22|0.01|185| |BZ|BZ.O|BOSS ZHIPIN|2024 Q4|0.21|0.01|185| 1. **Revenue Growth**: Kanzhun Limited, the company behind BOSS Zhipin, has consistently shown strong revenue growth. In Q2 2024, the company reported a 28.8% increase in revenues compared to the same quarter of the previous year. Building on this trend, Kanzhun Limited projected an 18.2% to 19.5% year-over-year increase in total revenues for Q3 2024, ranging between RMB1.9 billion and RMB1.92 billion. The actual revenue figures for Q3 2024 exceeded these estimates, indicating robust business performance and user engagement. 2. **User Growth and Network Effects**: BOSS Zhipin's large and diverse user base has enabled the company to leverage powerful network effects, driving recruitment efficiency and business expansion. The platform experienced a significant increase in average monthly active users, growing by 25.2% year-over-year to 54.6 million in Q2 2024. This substantial user growth contributes to the platform's ability to attract enterprise customers, with a 31.1% increase in total paid enterprise customers in the twelve months ended June 30, 2024. 3. **Financial Performance**: Kanzhun Limited's financial performance in Q2 2024 was impressive, with a net income of RMB417.3 million (US$57.4 million), a 34.8% increase from the same quarter of the previous year. Adjusted net income reached RMB718.7 million (US$98.9 million), marking a 26.4% year-over-year increase. These figures suggest that the company is not only growing its top line but also improving its profitability. 4. **Share Repurchase Program**: In a sign of confidence in its continued growth, BOSS Zhipin's board of directors has authorized a new share repurchase program effective from August 29, 2024, for a 12-month period. The company has already initiated a share repurchase program that became effective on March 20, 2024, with a total maximum repurchase amount of US$200 million. The upsizing of this program to US$350 million represents a significant commitment to returning value to shareholders. In conclusion, BOSS Zhipin's Q3 2024 earnings exceeded analysts' expectations, driven by robust revenue growth, user expansion, and strong financial performance. The company's strategic focus on shareholder returns, reflected in its share repurchase programs, further underscores confidence in its long-term growth prospects.