On August 28th, BOSS Zhipin released its Q2 2024 financial report. In the second quarter, the company's revenue reached 1.917 billion yuan, a year-on-year increase of 28.8%; Under non GAAP accounting standards, the net profit reached 417 million yuan, a year-on-year increase of 34.8%. In the 12 months ending June 30, 2024, the number of paid corporate clients of the company reached 5.9 million, a year-on-year increase of 31.1%, setting a new historical high.
During the conference call after the financial report, BOSS CEO Zhao Peng stated that there are still structural growth opportunities in the recruitment field in the long run. In his view, China is an economy with large and active enterprises, and the trend of insufficient supply of young labor force is not easy to change in the long run. BOSS direct employment is a service model that can provide efficient matching of labor supply and demand to solve the above environment.
During non peak recruitment season,
The number of individual and corporate users continues to grow
BOSS Direct Hiring's Q2 financial report data shows that the platform's monthly active users increased by 8 million compared to the previous quarter, reaching 54.6 million people.
According to data from third-party organization Questmobile, the performance of BOSS direct recruitment in the second quarter was better than other peers, with not only an increase in monthly active users, but also an increase in the proportion of user hours. This reflects the high stickiness advantage of BOSS direct recruitment under the "direct chat+recommendation" model.
In the 12 months ending June 30, 2024, the number of paid corporate clients of the company reached 5.9 million, a year-on-year increase of 31.1%, setting a new historical high.
During the conference call after the financial report, Zhao Peng stated that in the long run, there are still structural growth opportunities in the recruitment sector.
Our confidence comes from three aspects. Firstly, the Chinese market is a huge, highly active, and largest economy with the largest number of enterprises. Secondly, there is a shortage of labor supply, especially young labor supply, which is not easy to change. Thirdly, our efficient service model is most suitable for the first and second situations mentioned above, "said Zhao Peng.
The recruitment industry is an ancient industry with low frequency of demand and sufficient longevity. Take Japan Recruit Group as an example. Since its establishment in 1960, it has experienced several rounds of financial storms and economic foam, and still has a steady growth. The ceiling of online recruitment industry is far from reaching the top.
Layout differentiated service scenarios such as blue collar job hunting
Faced with short-term fluctuations in the second quarter, BOSS Direct Recruitment is also providing differentiated and refined services for different user groups in job search and recruitment scenarios based on the direct recruitment model.
Financial report data shows that the platform's penetration rate in second tier and below cities, blue collar and other scenarios continues to steadily increase. The company will invest more resources in new growth areas, such as more opportunities for recruitment in blue collar manufacturing, "said Zhao Peng.
In his opinion, due to the complex relationship among factories, workers, platforms, intermediaries and problems left over by history, it is difficult for the Internet recruitment platform to serve the recruitment of blue collar manufacturing industry. BOSS Direct Recruitment starts with purifying the recruitment environment, protecting the job seeking process of job seekers and enabling blue collar agents and intermediary organizations to earn more money with dignity.
At present, the environment in which bad money drives out good money in this field has undergone a transformation through the efforts of the company, and the situation of excellent agents being excluded is beginning to improve. Zhao Peng revealed that the company's "Hailuo Optimal Selection" service for blue collar positions has generated over 40 million yuan in revenue in the second quarter of this year, a significant increase compared to the first quarter.
In response to the overlooked recruitment scenarios for small and medium-sized enterprises on many platforms, BOSS Direct Recruitment continues to optimize the experience and rewards for small and medium-sized enterprise recruiters. In order to address the low level of online recruitment for small and medium-sized enterprises, BOSS Direct Recruitment has made "usability" optimizations in areas such as user registration, job posting, and candidate communication, reducing the threshold for small and medium-sized enterprise employers to use it.
In response to the problem of low brand appeal for employers in small and medium-sized enterprises, the product and algorithm team is exploring how to objectively extract information and job highlights of small and medium-sized enterprise companies, and display them in a personalized manner based on job seekers' preferences. Equivalent to equipping each small and medium-sized enterprise with an "intelligent job referral assistant" to enhance their competitiveness among job seekers.
In addition, BOSS Direct Recruitment is actively expanding its overseas business.
The economy is cyclical, and the economic cycles of different countries and regions are staggered. Large enterprises with a good global layout can effectively utilize regional cycles for sustainable development. Zhao Peng said that Boss Zhipin has created the current model, which is highly likely to provide value, survival, and development space in different regional markets through localization, hybridization, and evolution. It is reported that BOSS Zhipin currently has business deployments in both Europe and Asia.
I have confidence in the annual performance,
The company continues to increase its holdings
Regarding the annual performance, Zhao Peng said, "The profit target of BOSS Direct Hiring for the whole year can be guaranteed and can be achieved through further refined management
In the second quarter of this year, BOSS Direct Hiring withstood the impact of the macro economy and steadily developed forward. The proportion of marketing expenses to revenue further decreased to 28.4%, lower than the same period in 2023. While achieving cost reduction and efficiency improvement, it also provided more flexibility for the company's future capital operation and investment expansion.
To enhance market confidence, BOSS Zhipin has been continuously conducting repurchases since March 27, 2024, and has repurchased over 11.4 million common shares worth 638 million yuan as of early August.
This confidence is not blind. From the business operations and financial data of BOSS direct recruitment, the company is building a moat with technology investment as the core and serving small and medium-sized enterprises as the basic foundation, which has been fully tested by the market.