Boss Zhipin: The environment faces further pressure, but the leading recruitment platform remains steady and stable

BOSS Zhipin's Q2 performance remained steady. Due to improved scale efficiency, core profits slightly exceeded market expectations (the significant beat in adjusted net profit was mainly due to investment income from Zhipu's IPO). Despite macroeconomic pressures, the company achieved counter-cyclical growth. One reason was the timing mismatch of the spring recruitment season; another was that during the online transition of blue-collar recruitment, BOSS Zhipin leveraged its product competitiveness to grab more market share.

Specifically:

1. Billings rebounded as expected:In Q2, billings grew year-on-year by 16%. Revenue growth also rebounded to 15%, within the company's guidance range. As mentioned last quarter, due to the timing impact of the Spring Festival (which was later this year, causing the peak spring recruitment season to be delayed), Q2 revenue growth rebounded as expected despite the unfavorable environment.

2. Revenue guidance in line with expectations:The company's Q3 revenue guidance implies a growth rate of 11%–15%, slowing slightly quarter-on-quarter, mainly due to a normalized base and ongoing macro pressures, both of which were anticipated by investors.

3. B-end client numbers continue to grow:Excluding the year-on-year window period effect, the net increase in enterprise clients was 100,000 quarter-on-quarter, with the first-half total remaining in line with last year. This indicates that the Q2 rebound in billings truly resulted from adjustments in recruitment timing by enterprises around the Spring Festival holiday.

According to Sensor Tower's tracking of iOS Q2 billings, growth accelerated to 27%, compared to 14% in Q1, and accelerated further to 41% in July. This overall outpaced the platform's total billings growth, indicating that while overall recruitment budgets are still under pressure or experiencing heightened uncertainty, enterprises are moving toward more flexible, on-demand recruiting approaches.

4. Slowing growth of monthly active users on the C-end:Total MAUs in Q2 reached 70 million, mainly driven by the spring recruitment season and exposure from World Cup sponsorship, with a net increase of 9.3 million. According to QM data, BOSS Zhipin still dominates the vertical industry by scale, with MAUs far ahead and continued growth in total user time share, which has now exceeded 60%.

5. Continued release of operating leverage:Q2 core operating profit was 860 million RMB, slightly above expectations, with a profit margin of 35.7%, up 5ppt year-on-year, benefiting from economies of scale, cost optimization, and operational efficiency improvements beyond just sales expense reductions.

6. Excessive shareholder returns:At the start of the year, management raised the previously announced two-year $250 million return plan (ending September 2025) to $400 million, and promised that from 2026 onwards, 50% of adjusted net profits will be used for shareholder returns (buybacks and dividends).

Looking at Q1 and Q2 together, the total 2025 dividends plus buybacks exceeded 100% of adjusted profits, with a total shareholder return rate of 7.5%. Current cash on hand is $2.7 billion, with healthy operating cash flows. If the company continues Q3 and Q4 with the same intensity as the first half's total $300 million buybacks, a full-year optimistic scenario sees a total shareholder return reaching 12%.

7. Comparison of key performance indicators with consensus market expectations

Dolphin Analyst's Viewpoint

Although Q2 faced macroeconomic pressures, BOSS Zhipin's third-party tracked online billings data accelerated in July, and its status as a high-quality defensive asset as the opposite of AI growth, led to a notable rebound in BOSS Zhipin's share price in July after a quiet Q2.

The Q2 financial report also reflected sequential changes in billings and again showcased BOSS Zhipin as—a “small but beautiful” vertical platform with “steady growth + improved scale efficiency + strong shareholder returns.” At its core, its competitive moat remains intact and management is reliable.

Although BOSS Zhipin is a traditional mobile internet platform, since it still involves resume database storage and offline recruitment procedures, it currently benefits from AI rather than being eroded by it.

However, due to macroeconomic headwinds and concerns that further AI penetration may impact labor supply and demand, we remain relatively cautious in our outlook.

Therefore, while BOSS Zhipin still enjoys the benefits of online penetration in blue-collar recruitment and new demand for AI positions, and although macro pressures have yet to be immediately reflected in results, this still acts as a sword of Damocles—limiting BOSS Zhipin from enjoying valuation premiums as in the past. Conversely, a 7.5% to 12% shareholder return is a strong support during any correction.

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