KANZHUN LTD - ADR (NASDAQ:BZ) reported its third-quarter 2025 financial results, delivering a performance that presented a mixed picture for investors. While the company demonstrated significant profitability growth and robust user metrics, its top-line revenue fell short of market expectations, which appears to be influencing early market sentiment.
Quarterly Performance Versus Estimates
The Chinese online recruitment platform reported revenues of RMB 2.16 billion (approximately $303.9 million) for the quarter ended September 30, 2025. This represents a solid 13.2% year-over-year increase but came in below analyst estimates of RMB 2.23 billion.
On the profitability front, the company delivered stronger results relative to expectations:
- Non-GAAP EPS: RMB 2.16 per ADS, slightly above estimates of RMB 2.13
- Net Income: RMB 775.4 million, a significant 67.2% increase year-over-year
- Operating Income: RMB 687.1 million, more than doubling (up 108.1%) compared to Q3 2024
The market's initial reaction appears to reflect this mixed outcome. In pre-market trading, the stock experienced downward pressure, declining approximately 1.6%. This suggests investors are weighing the revenue miss against the substantial improvements in profitability.
Key Operational Highlights
Beyond the headline financial figures, Kanzhun demonstrated strong operational growth during the quarter, reinforcing its position in China's competitive recruitment market.
- Total Paid Enterprise Customers: Reached 6.8 million in the twelve months ended September 30, 2025, growing 13.3% from the previous year.
- Average Monthly Active Users (MAUs): Increased to 63.8 million, up 10.0% year-over-year.
- Cash Position: Maintained a strong balance with cash and cash equivalents, short-term deposits, and investments totaling RMB 19.2 billion (approximately $2.7 billion).
The company's improved profitability was driven by effective cost management, particularly in sales and marketing, which decreased by 24.6% year-over-year, demonstrating improved marketing efficiency.
Forward-Looking Guidance
Management provided revenue guidance for the fourth quarter of 2025, projecting revenues between RMB 2.05 billion and RMB 2.07 billion. This represents a year-over-year increase of 12.4% to 13.5% and aligns closely with analyst estimates of RMB 2.14 billion for the upcoming quarter.
The company's outlook reflects confidence in sustained growth, citing continued recovery in enterprise recruitment demand and the ongoing integration of AI technologies across its platform. CEO Jonathan Peng Zhao emphasized that benefits from AI implementation are "gradually being realized on both the job seeker and enterprise user sides."
Market Context and Strategic Positioning
Kanzhun's performance occurs against the backdrop of evolving conditions in China's employment market. The company's ability to grow its paying enterprise customer base at a double-digit rate, even as it substantially improves profitability, indicates successful execution of its strategy. The reduction in marketing spend coupled with user growth suggests the platform is benefiting from stronger network effects and brand recognition.
The company also completed its annual dividend distribution in the third quarter and extended its share repurchase program, authorizing up to $250 million in buybacks through August 2026, signaling commitment to shareholder returns.
For a detailed breakdown of historical earnings performance and future analyst estimates, readers can review the earnings and estimates page for BZ.
Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any particular security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.
