KANZHUN LTD Earnings Results: $BZ Reports Quarterly Earnings

Kanzhun Ltd ($BZ) reported Q1 2025 earnings of $1.73 per share, beating estimates by $0.12, while revenue of $1.923 billion missed estimates by approximately $45 million. Institutional investor activity showed significant portfolio adjustments, with Capital World Investors and UBS AM substantially increasing their holdings, while Brilliance Asset Management and HSG Holding reduced theirs. Analyst ratings are predominantly positive, with UBS, Morgan Stanley, and Santander issuing buy or overweight ratings and a median price target of $16.50.

Analysis

Kanzhun Ltd. ($BZ) reported mixed financial results for Q1 2025, with earnings per share of $1.73 surpassing analyst estimates of $1.61 by $0.12, while revenue of $1.923 billion fell short of the $1.968 billion consensus by approximately $45.1 million. This juxtaposition of a bottom-line beat against a top-line miss presents a nuanced operational picture. Institutional investor activity during the quarter further underscores this complexity: while 146 firms increased their holdings, 126 reduced them. Notably, Capital World Investors added 16.57 million shares (+119.8%) and UBS AM increased its position by 8.95 million shares (+1474.7%), demonstrating significant new conviction from some large players. Conversely, substantial divestitures included Brilliance Asset Management reducing its stake by 5.47 million shares (-75.0%) and Dragoneer Investment Group exiting its 4.04 million share position entirely (-100.0%). Despite the revenue miss and mixed institutional flows, Wall Street analyst sentiment remains predominantly positive, with three firms (UBS, Morgan Stanley, Santander) issuing buy-equivalent ratings in recent months and no sell ratings reported. Price targets issued within the last six months include a $18.00 target from Bernstein (March 2025) and a $15.00 target from Morgan Stanley (November 2024), contributing to a median target of $16.50.

Key Decisions for Investors

• Investors should carefully evaluate the contrasting signals of Kanzhun Ltd.'s earnings beat against its revenue shortfall, seeking clarity on the drivers for the revenue miss before adjusting positions.
• The significant divergence in institutional capital flows, with major new investments by some funds and complete exits by others, suggests a need to closely monitor ongoing institutional sentiment and potentially re-evaluate the conviction of remaining large holders.
• Consider the median analyst price target of $16.50, and the range of $15.00 to $18.00, in relation to the current stock price to assess potential valuation disparities and inform buy, hold, or sell decisions based on individual risk appetite and investment horizons.