BZ — Kanzhun Limited

Summary of Kanzhun Limited Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: RMB 2.07 billion, up 7.6% year-on-year.
• Adjusted Operating Income: RMB 810 million, up 17.8% year-on-year, with an adjusted operating margin of 39.4%.
• Net Income: RMB 1.1 billion, with an adjusted net income of RMB 856 million, reflecting a net margin of 54.4%.
• Paid Enterprise Customers: 7.1 million, up 10.9% year-on-year and 4.4% quarter-on-quarter.
• Monthly Active Users (MAU): Average of 16.9 million, with March MAU exceeding 72 million, a 4.6% year-on-year increase.
• Cash Position: RMB 19.8 billion as of March 31, 2026.
• Share Buybacks: Over $200 million spent on share repurchases, representing approximately 3% of total outstanding shares.

2. Strategic Updates and Business Highlights

• Continued strong user growth, with over 15 million newly verified users acquired in Q1 2026.
• Increased demand for white-collar recruitment, particularly in software engineering, with active job postings up 10.9% year-on-year.
• AI-related roles saw revenue growth exceeding 100%, indicating a positive impact of AI on the recruitment sector.
• The company is focusing on AI integration into its business model, emphasizing the development of AI-powered closed-loop services that have shown rapid growth.
• Commitment to shareholder returns remains strong, with a plan to allocate at least 50% of prior year's adjusted net income to buybacks and dividends.

3. Forward Guidance and Outlook

• For Q2 2026, total revenue is expected to be between RMB 2.38 billion and RMB 2.42 billion, representing a year-on-year increase of 13.2% to 15.1%.
• Management is optimistic about revenue growth in the second quarter and for the full year, anticipating stronger performance than Q1.

4. Bad News, Challenges, or Points of Concern

• The delayed Chinese New Year impacted the peak recruitment season, resulting in a shorter window for revenue generation in Q1.
• Increased competition in the recruitment sector, particularly concerning AI integration, poses a risk to maintaining market leadership.
• The company faces challenges in balancing investments in AI and new business initiatives with margin expansion, as these investments may dilute margins in the short term.

5. Notable Q&A Insights

• Management acknowledged the impact of the delayed Chinese New Year on recruitment dynamics but noted a robust recovery in MAU and job postings post-holiday.
• There is ongoing concern about AI's potential disruption to job markets, particularly for blue-collar positions, though management believes their platform remains resilient.
• The company is focused on expanding its presence in Hong Kong, reporting 60,000 daily active users, and plans to cultivate a core team for future international expansion.
• Management emphasized the importance of providing value to enterprise users and the potential for revenue growth through increased pricing and customer acquisition.

Overall, Kanzhun Limited reported solid financial results for Q1 2026, driven by user growth and AI integration, while navigating challenges related to market dynamics and competition. The company remains committed to shareholder returns and anticipates continued revenue growth in the upcoming quarters.