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Kanzhun's Growth Slows: Can It Navigate a Challenging Economy?

2024-12-23 09:45:11.799000

Kanzhun Ltd., the operator of the popular recruitment platform Boss Zhipin, reported nearly 20% revenue growth in the third quarter of 2024, reaching 1.91 billion yuan (approximately $262.2 million). However, net profit saw a more modest increase of only 9%, totaling 464 million yuan. Looking ahead, the company anticipates a slowdown in fourth-quarter revenue growth to around 14% [2ff00df4].

The company has successfully expanded its customer base, with total paid enterprise customers increasing by 22.4% year-on-year to 6 million. Additionally, Kanzhun reported a significant rise in average monthly active users, which jumped 30% to 58 million. This growth is particularly notable as Kanzhun focuses on blue-collar recruitment in smaller cities, a sector that has seen increasing demand amid economic shifts [2ff00df4].

Despite these positive indicators, Kanzhun's stock has faced challenges, declining 35% from its May 2024 high of HK$88.50. Investment banks have maintained a cautious outlook, with only slight increases in profit forecasts as the economic environment remains uncertain. Kanzhun holds a strong cash position of 8.7 billion yuan with no debt, providing a buffer as it navigates the slowing economy [2ff00df4].

The mixed results reflect the broader economic challenges in China, where companies are grappling with reduced consumer spending and a cooling job market. Kanzhun's ability to adapt and maintain its growth trajectory will be closely monitored as it continues to serve the recruitment needs of blue-collar workers in a changing landscape [2ff00df4].

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