Key Takeaways
Chinese recruitment platform Kanzhun Limited reported a 119.8% surge in first-quarter net income to 1.13 billion yuan, boosted by investment gains, even as growth in its core paying customer base showed signs of slowing.
"We are delighted to report solid results for the first quarter of 2026," Jonathan Peng Zhao, founder and chief executive officer, said in a statement, citing a seasonal pickup in recruitment demand and user growth that pushed monthly active users past 72 million in March.
The company's revenue for the quarter ended March 31 rose 7.6% from a year earlier to 2.07 billion yuan ($299.9 million). While the number of paid enterprise customers in the past year grew 10.9% to 7.1 million, this marks a significant slowdown from growth rates exceeding 40% seen in early 2024.
For the second quarter of 2026, Kanzhun forecast revenue of 2.38 billion to 2.42 billion yuan. The company is betting on an AI-driven strategy to re-accelerate growth as it faces a more cautious enterprise spending environment and a maturing user base.
The dramatic rise in net income was primarily driven by a 614.1 million yuan investment gain from an investee company's initial public offering. Adjusted net income, which excludes such items, rose a more modest 12.1% to 856.2 million yuan.
Revenue from the core business of online recruitment services for enterprise customers climbed 8.2% to 2.06 billion yuan. However, revenue from other services, mainly paid features for job seekers, plummeted by nearly 50% to 11 million yuan as the company optimized its offerings to prioritize user engagement.
Kanzhun is shifting its focus toward a performance-based monetization model, aiming to charge based on hiring outcomes rather than for job postings. The company highlighted its open-sourced "Nanbeige 4.1-3B" AI model as a core part of this technological push.
The results highlight a company in transition, enjoying strong current profitability but facing a ceiling on its previous high-growth model. Investors will watch to see if the new AI-based strategy can create a sustainable revenue stream. The company plans to return at least 50 percent of its adjusted net income to shareholders over the next three years.
This article is for informational purposes only and does not constitute investment advice.
