Kanzhun Limited (BZ) Q2 FY24 Earnings call transcript Aug 28, 2024
AInvestThursday, Aug 29, 2024 8:34 pm ET
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Kanzhun Limited, a leading provider of online recruitment services in China, recently held its second quarter 2024 earnings call, highlighting a robust financial performance and strategic focus for the future. The call, led by Founder, Chairman, and CEO, Jonathan Peng Zhao, and Director and CFO, Phil Yu Zhang, provided valuable insights into the company's growth strategies, financial health, and market positioning.

Financial Performance and User Growth

Kanzhun reported a notable increase in cash billings and revenue for the second quarter, reaching RMB 1.95 billion and RMB 1.92 billion, respectively, representing a 20% and 29% year-on-year growth, respectively. The company also recorded a net profit of RMB 420 million and an adjusted net income of RMB 720 million, showcasing a strong financial performance. The number of verified monthly active users (MAU) on the BOSS Zhipin app surged by 25% year-on-year to 54.6 million, underscoring the platform's growing popularity and user base.

Strategic Focus and Challenges

CEO Peng Zhao emphasized the company's strategic focus on ensuring profitability, investing in new growth drivers, and expanding overseas. Despite a slight decline in quarter-on-quarter growth, Peng expressed confidence in the long-term structural growth opportunities, citing the vast Chinese market, persistent labor shortage, and the company's efficient service model as key growth drivers.

Peng also addressed the challenges faced by the company, including the high cost-per-lead (CPL) ratio, which has led to a decrease in enterprise users' willingness to spend on recruitment. However, he noted that the growth trend of enterprise users remains positive, with an increase in newly added enterprise users and a rise in the average monthly active users.

Future Outlook and Investments

Looking ahead, Kanzhun is focusing on enhancing its market share in the face of a weak macroeconomic environment. The company plans to concentrate resources on specific business areas, such as the blue-collar manufacturing industry, and is exploring opportunities in overseas markets, particularly in Europe and Asia. Kanzhun also announced a share buyback program of over USD 88 million, highlighting its commitment to enhancing shareholder confidence and returns.

Analyst Questions and Management Responses

During the Q&A session, analysts probed into Kanzhun's user growth, market share, profit targets, and strategic initiatives. Management provided detailed insights into the company's competitive landscape, user growth strategies, and financial projections, underscoring a confident and strategic outlook.

In conclusion, Kanzhun Limited's second quarter earnings call painted a picture of a company on a strong growth trajectory, with strategic initiatives aimed at addressing challenges and capitalizing on opportunities in the Chinese recruitment market. The company's focus on profitability, innovation, and expansion into new markets positions it well for future growth and success.

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