Why Kanzhun Ltd stock soared today

stock kanjun (B.Z. 18.80%) Shares of the Chinese online recruiting platform surged 18.8% on Tuesday after it reported stronger-than-expected quarterly results and announced a new share buyback program.

On Kanzhun’s blue-collar success

Kanzhun’s fourth quarter 2023 revenue increased 46% year-on-year to RMB 1.58 billion (or US$222.6 million), which translates to non-GAAP (adjusted) net income of RMB 628.6 million (or US$88.5 million). ten thousand dollars), that is, 139 yuan. (USD $0.20) per American Depositary Share (ADS). On average, most analysts were expecting sales of close to 1.54 billion yuan and earnings of just 1.18 yuan per share.

Founding Chairman and CEO Jonathan Peng Zhao attributed the outstanding performance to strong user growth, particularly strong in blue-collar industries, lower-tier cities and small and medium-sized enterprises.

In fact, Kanzhun’s calculated cash bill (a key metric that helps determine future growth) increased 61.2% year-on-year to 1.78 billion yuan, while average monthly active users (MAU) increased 33.3% to 41.2 million. was recorded. Kanzhun’s total paid enterprise customers also increased 44.4% to 5.2 million by the end of 2023.

What’s next for Kanzhun Investors?

Kanzhun issued revenue guidance of between 1.64 billion yuan and 1.67 billion yuan for first quarter 2024 revenue, which is good for continued solid growth of 28.3% to 30.7% year-on-year.

If this wasn’t enough, Kanzhun also announced a new $200 million share repurchase program, effective for 12 months from March 20, 2024. At best, that amount represents just over 2% of Kanzhun’s market capitalization of about $9.2 billion. of this article. But it’s no surprise to see Kanzhun stock soaring with today’s exceptional quarterly update.