Shares of Kanzhun Limited (BZ), a leading online recruitment platform in China, tumbled 6.98% in pre-market trading on Thursday following the release of its first-quarter financial results and second-quarter guidance. Despite reporting in-line Q1 revenues, the company's Q2 outlook fell short of analyst expectations, sparking a sell-off.
Kanzhun reported Q1 revenues of 1.92 billion Chinese Renminbi, matching analyst estimates. However, the company's Q2 revenue guidance disappointed investors, projecting total revenue to be in the range of 2.05 billion to 2.08 billion Chinese Renminbi, below the FactSet consensus estimate of 2.11 billion Renminbi.
While Kanzhun did show some positive results in its Q1 report, including a 12.3% year-over-year growth in total paid enterprise customers to 6.4 million and a 23.6% increase in average monthly active users to 57.6 million, these positives were overshadowed by the weaker-than-expected Q2 outlook. The company also reported a significant improvement in profitability, with adjusted income from operations rising 76.1% to 691.5 million Renminbi. However, investors seemed to focus more on the future guidance, leading to the pre-market sell-off.
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