Shares of Kanzhun Limited (NASDAQ: BZ), the company behind China's leading online recruitment platform BOSS Zhipin, plummeted 6.70% in Tuesday's pre-market trading session. The sharp decline came despite the company reporting strong third-quarter financial results that surpassed analyst expectations, as investors focused on disappointing fourth-quarter guidance.
For the third quarter of 2025, Kanzhun reported impressive financial performance with revenues of RMB2,163.3 million (US$303.9 million), representing a 13.2% year-over-year increase. The company's net income surged 67.2% to RMB775.4 million (US$108.9 million). Adjusted earnings per ADS came in at RMB2.16 (US$0.30), beating the consensus estimate of RMB2.07. Additionally, the number of paid enterprise customers grew by 13.3% year-over-year to 6.8 million, while average monthly active users increased by 10.0% to 63.8 million.
However, the stock's significant decline appears to be primarily driven by the company's fourth-quarter guidance, which fell short of market expectations. Kanzhun forecasts Q4 revenues to be between RMB2.05 billion and RMB2.07 billion, representing a year-over-year increase of 12.4% to 13.5%. This outlook is slightly below the FactSet consensus estimate of RMB2.07 billion, disappointing investors who were anticipating stronger growth. The cautious guidance seems to have overshadowed the company's otherwise solid Q3 performance, leading to the pre-market selloff as investors reassess their expectations for Kanzhun's near-term growth prospects.