Kanzhun's Strong Quarter Overshadowed By Broad Sell-Off In Chinese Stocks: Details

Chinese online recruitment platform Kanzhun Ltd BZ reported a fiscal first-quarter 2024 revenue increase of 33.4% year-over-year to 1.70 billion Chinese yuan ($235.97 million), beating the analyst consensus estimate of $229.64 million.

Adjusted EPADS of $0.16 beat the analyst consensus estimate of $0.13. The stock price declined after the print in sync with other Chinese stocks following a record surge in bearish bets against China ETFs, Bloomberg reports.

Revenues from online recruitment services to enterprise customers were $233.2 million, up by 33.6% Y/Y.

Calculated cash billings were $284 million, up 24.3% Y/Y. Average monthly active users (MAUs) were 46.6 million, an increase of 17.4% Y/Y.

In the twelve months ended March, total paid enterprise customers increased by 42.5% Y/Y to 5.7 million.

Income from operations improved to CNY103.6 million ($14.3 million) versus CNY77.3 million Y/Y.

Kanzhun generated cash from operating activities of $125.4 million and held cash and cash equivalents of $1.65 billion as of March 31, 2024.

Q2 Outlook: Kanzhun expects total revenues of CNY1.91 billion – CNY1.96 billion, versus the consensus of RMB1.95 billion.

Kanzhun stock gained 30% in the last 12 months. Investors can gain exposure to the stock via Vanguard Total International Stock ETF VXUS and IShares Core MSCI Emerging Markets ETF IEMG.

Price Action: BZ shares traded lower by 1.46% at $22.30 in the premarket session at the last check Tuesday.

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