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Introduction & Market Context
Kanzhun Limited, the company behind Chinese online recruitment platform BOSS Zhipin, presented its first quarter 2025 financial results on May 22, 2025, showcasing strong revenue growth and significant margin expansion. The company’s mobile-native direct recruitment model continues to disrupt the traditional job board approach, leveraging technology to connect job seekers and employers more efficiently.
The presentation highlights Kanzhun’s continued growth trajectory in the competitive Chinese recruitment market, with particular emphasis on its ability to serve both white and blue-collar segments while maintaining strong profitability.
Quarterly Performance Highlights
Kanzhun reported solid revenue growth for Q1 2025, reaching RMB 1,923.3 million, a 12.9% increase compared to RMB 1,703.8 million in Q1 2024. This growth was driven by continued user expansion, improved paying ratios, and stable average revenue per paying user (ARPPU).
As shown in the following chart of quarterly revenue growth:
The company’s profitability metrics showed even more impressive improvements, with adjusted operating margin expanding significantly from 23.0% in Q1 2024 to 36.0% in Q1 2025, representing a 76.1% increase. Similarly, adjusted net income margin grew from 31.1% to 39.7%, a 43.9% increase year-over-year.
The following chart illustrates this substantial improvement in profitability:
Business Model & Competitive Positioning
Kanzhun’s BOSS Zhipin platform differentiates itself through a mobile-native direct recruitment model that combines recommendation feeds with direct chat functionality. This approach represents a significant departure from traditional job boards that rely on one-way resume uploads and downloads.
The platform’s innovative approach is illustrated in this comparison:
A key strength of Kanzhun’s business model is its ability to serve a broad spectrum of users. The company has accumulated 211.9 million verified job seekers and 30.2 million verified enterprise users. Notably, 35% of job seekers are blue-collar workers, while 88% of enterprises on the platform are small and medium-sized enterprises (SMEs).
The following chart details the company’s market reach across different user segments:
Kanzhun’s competitive advantage is further reinforced by strong network effects, where accumulated data and advanced technology create a virtuous cycle that enhances the platform’s value proposition for both job seekers and employers.
Detailed Financial Analysis
Beyond revenue growth, Kanzhun demonstrated enhanced operating efficiency in Q1 2025. The company’s adjusted gross margin improved from 83.3% in Q1 2024 to 84.3% in Q1 2025, while maintaining disciplined cost control across all major expense categories.
The following chart breaks down the company’s operating costs and expenses:
Cash flow generation remained robust, with operating cash flow reaching RMB 1,003.1 million in Q1 2025, up 10.8% from RMB 905.5 million in Q1 2024. Free cash flow for the quarter was RMB 966.6 million.
The company maintained a strong cash position of RMB 14.79 billion as of March 31, 2025, providing ample resources for strategic investments and shareholder returns. In August 2024, Kanzhun announced a USD 150 million share repurchase program, highlighting its commitment to returning value to shareholders.
As shown in the following chart of operating cash flow:
Forward-Looking Statements
While the presentation did not include specific forward-looking guidance, Kanzhun’s strong Q1 results position the company well for continued growth. The company’s focus on technological innovation, particularly in AI-driven recommendation algorithms, is expected to further enhance platform efficiency and user experience.
According to the earnings call transcript, Kanzhun forecasts Q2 2025 revenue of RMB 2,050-2,080 million, representing 7-8.5% year-over-year growth. The company also aims to achieve a non-GAAP operating profit of RMB 3 billion for the full year 2025.
CEO Jonathan Peng Zhao expressed cautious optimism about AI monetization during the earnings call, stating, "We are still quite cautious... but [AI monetization] must be some." This suggests the company is taking a measured approach to implementing and monetizing AI technologies.
Kanzhun’s continued investment in expanding its presence in blue-collar and lower-tier city markets represents a strategic focus on underserved segments with significant growth potential. The company’s ability to maintain strong profitability while investing in these growth initiatives demonstrates the strength and scalability of its business model.
Full presentation:
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