Quick Look
- Kanzhun Ltd (NASDAQ: BZ) shares jumped 18.8%, reaching $20.79.
- Q4 revenue hit 1.58 billion yuan, up 46% year-over-year.
- Non-GAAP net income reached 628.6 million yuan.
- Guidance for Q1 2024 forecasts revenue between 1.64 – 1.67 billion yuan.
- Announced a $200 million share repurchase program starting March 20, 2024.
Kanzhun Ltd, a leading player in the online recruitment sector, recently disclosed its financial achievements for the fourth quarter of 2023. The announcement, made just before the stock market opened on Wednesday, reveals significant strides in the company’s financial health and operational growth. Kanzhun’s shares surged by 18.8% on Tuesday, indicating strong investor confidence ahead of the announcement.
Q4 Revenue Hits 1.58B Yuan, Net Income at 628.6M
Kanzhun reported a remarkable 46% increase in revenue year-over-year, totalling 1.58 billion yuan (USD 222.6 million). This growth exceeded analysts’ expectations, who had forecasted earnings of 1.18 yuan per share on revenue of approximately 1.54 billion yuan. Furthermore, the company’s non-GAAP net income stood at 628.6 million yuan, with earnings per ADS at 1.39 yuan (USD 0.20).
User Base Grows 33.3%, Paid Customers Up 44.4%
The company also saw a significant uptick in its user base and paid enterprise customers. Average monthly active users (MAUs) increased by 33.3% to 41.2 million. The number of paid enterprise customers also grew by 44.4% to 5.2 million. Additionally, calculated cash billings witnessed a 61.2% growth year over year, reaching 1.78 billion yuan.
Q1 2024 Revenue Forecasted at 1.64-1.67B Yuan
Kanzhun provided an optimistic revenue forecast for the first quarter of 2024, ranging between 1.64 – 1.67 billion yuan. This projection indicates a year-over-year growth of 28.3% to 30.7%. To further bolster investor confidence, the company announced a $200 million share repurchase program, set to commence on March 20. This initiative represents over 2% of Kanzhun’s current market capitalization, underscoring the firm’s robust financial health and commitment to shareholder value.
“Moderate Buy” Rating with Targets Up to $20
The market’s response to Kanzhun’s financial achievements and growth metrics has been overwhelmingly positive. Analysts have given the company a “Moderate Buy” consensus rating, with a consensus price target of $18.38. Notably, JPMorgan Chase & Co. initiated coverage with an “overweight” rating, setting a price target of $20.00. Macquarie upgraded Kanzhun to an “outperform” rating, further endorsing the company’s market position.
Institutional Ownership Hits 60.67%, Goldman Ups Stake.
Institutional investors have demonstrated their confidence in Kanzhun’s trajectory through significant investments. Notably, the National Pension Service increased its stake by 423.1%, owning 6,800 shares valued at $179,000. Goldman Sachs Group Inc. also upped its stake by 40.7%, owning 5,144,794 shares valued at $135,205,000. Institutional ownership is 60.67% of the stock, underscoring the strong institutional belief in Kanzhun’s potential.
Kanzhun Ltd’s impressive Q4 2023 financial results and positive growth outlook for Q1 2024, coupled with the announced share repurchase program, have solidified investor confidence. As the company continues to navigate its path forward, its strategic initiatives and strong market positioning suggest a promising future for shareholders and customers.
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