BOSS Zhipin will release its Q2 2025 financial report on August 20, 2025. The outlook for this quarter will focus on the deepening application of AI technology in the recruitment process, the continued expansion in the blue-collar market, and the extension of cost control strategies.

Market Forecast

The market consensus for BOSS Zhipin in Q2 2025 is revenue between RMB 2.05 billion and RMB 2.08 billion, representing year-on-year growth of 6.9%-8.5%, slightly slower than the Q1 growth rate. Gross margin is expected to remain high at 83%-84%, with net profit at RMB 817 million and adjusted earnings per share (EPS) at RMB 1.117. This performance is primarily attributed to improved operational efficiency and optimized cost structure driven by AI technology. The market generally believes that BOSS Zhipin's leading position in the blue-collar recruitment market and its sustained investment in AI technology will provide strong momentum for its long-term growth.

Last Quarter Review

BOSS Zhipin achieved revenue of RMB 1.923 billion in Q1 2025, up 12.9% year-on-year; net profit attributable to shareholders was RMB 518 million, surging 111.5% year-on-year; gross margin was 83.8%; adjusted net profit was RMB 764 million, up 43.9% year-on-year. In Q1, the company's average Monthly Active Users (MAU) reached 57.6 million, up 23.6% year-on-year, with over 15 million new enhanced users added, of which blue-collar workers accounted for more than 45%. The company continued optimizing its cost structure, with sales and marketing expenses down 15% year-on-year, R&D expenses down 9%, and general and administrative expenses down 2%. Management emphasized during the earnings call that the company will continue to focus on incremental markets such as blue-collar workers, lower-tier cities, and small and medium-sized enterprises (SMEs/micro-enterprises), while deepening the application of AI in the recruitment process. In Q1, the proportion of revenue from blue-collar users increased to 39%, contributions from tier-3 and lower-tier cities exceeded 23%, and revenue share from micro-enterprises reached a record high, demonstrating significant effectiveness in the company's strategic shift.

This Quarter Outlook

Blue-Collar Market Penetration Continues to Rise

BOSS Zhipin's penetration in the blue-collar market is expected to increase further in Q2. New blue-collar users accounted for over 45% of new users in Q1, driving the blue-collar revenue share to 39%. This proportion is forecast to expand further to exceed 40% in Q2. Blue-collar recruitment demand has warmed sequentially since April, particularly in the service industry like catering and retail, while online job postings in the manufacturing sector maintained year-on-year growth. Platform features optimized for blue-collar users, such as "Instant Interview" [極速約面] and "Map-based Job Search" [地圖找工作], have proven highly effective, reducing the time from initiating contact to receiving an interview invitation to seconds and covering millions of job seekers daily. With the acceleration of urbanization, China's online blue-collar recruitment market is projected to reach RMB 152.4 billion by 2026, where BOSS Zhipin still has significant room for increased penetration. Initiatives like the "Verified Job Program" (Sea Snail) [海螺優選] to enhance trust and efficiency in blue-collar recruitment are expected to deepen further this quarter, contributing to stable revenue growth.

Steady Growth in Lower-Tier Cities' Revenue Contribution

Contributions from tier-3 and lower-tier cities rose by 3 percentage points year-on-year to exceed 23% in Q1, with expectations of this ratio climbing further to 24%-25% in Q2. The company enhances penetration in these markets through broad marketing and optimized product features. Over 45% of new users added in Q1 were blue-collar workers, who are predominantly located in lower-tier cities; this shift in user base is expected to drive revenue growth there. BOSS Zhipin has introduced features tailored to the characteristics of users in these markets, such as simplifying job posting processes and refining matching algorithms, which are likely to remain effective in Q2. Furthermore, the vast number of SMEs in lower-tier cities has strong recruitment demand but relatively low online adoption rates. By lowering usage barriers and offering flexible payment options, BOSS Zhipin stands to capture more share in this market. Lower-tier city revenue growth is expected to remain robust in Q2, acting as an important pillar for overall revenue growth.

Deepened AI Application Boosts Matching Efficiency

BOSS Zhipin continues to deepen its application of AI technology, which is expected to bring higher matching efficiency and a better user experience in Q2. In Q1, AI agent services on the recruiter side increased efficiency by 25% for users adopting the function, while the AI mock interview tool for job seekers was fully opened to students and those with less than three years' experience, providing personalized services. The test scale and penetration rate of these AI tools are expected to expand further in Q2, covering more user groups. The company's self-developed "Nange Pavilion" [南北閣] large model, integrated with DeepSeek-R1, has made breakthroughs in areas like knowledge fusion and multi-agent collaboration. Related research has been accepted by top-tier international academic conferences like KDD2025, ACL2025, and ICLR2025. AI technology not only enhances matching efficiency but also helps optimize internal management processes, such as improving security review efficiency by 30%, effectively controlling operational costs. In Q2, AI tools are expected to be deployed in more scenarios, such as smart matching recommendations for recruiters and personalized search experiences for job seekers, further enhancing platform value and user stickiness.

Continued Cost Control Enhances Profitability

BOSS Zhipin achieved significant results in cost optimization in Q1, with sales and marketing expenses down 15% year-on-year, R&D expenses down 9%, and general and administrative expenses down 2%. The company is expected to continue its cost control strategy in Q2, maintaining the expense optimization trend. The sales expense ratio is anticipated to remain low at around 26%, benefiting from increased organic traffic due to brand effects and the bilateral network effect. While R&D expenses may increase slightly due to AI investments, efficiency gains should offset some costs, keeping the overall R&D expense ratio stable. On gross margin, Q2 is expected to remain high at 83%-84%, driven by revenue structure optimization and cost control. The net profit margin is projected to improve further to 28%-31%, reflecting the combined effect of revenue growth and cost control. Management emphasized during the earnings call, "Since last year, we have focused on securing profitability while maintaining our investment in technology." This strategy is likely to be maintained in Q2, driving sustained improvement in profitability.

User Scale and Activity Maintain Growth

BOSS Zhipin's Q1 average Monthly Active Users (MAU) reached 57.6 million, growing 23.6% year-on-year; new enhanced users exceeded 15 million, with blue-collar workers accounting for over 45%. User scale and activity are expected to continue growing in Q2. Optimized product features and user experience initiatives persistently attract new users and improve retention rates. Enhancements specifically for blue-collar and lower-tier city users, like the "Instant Interview" and "Map-based Job Search" features, have proven effective and are expected to further boost user engagement in Q2. Additionally, AI-enhanced matching accuracy and user experience have the potential to attract more high-quality users. The number of paying enterprise clients reached 6.4 million in Q1, up 12.3% year-on-year, with continued growth anticipated in Q2, albeit potentially at a slightly slower pace. As the user base expands and engagement increases, the platform's bilateral network effects will strengthen, creating a virtuous cycle supporting long-term growth.

Analyst Views

Multiple brokerages maintain Buy/Overweight ratings on BOSS Zhipin, citing optimism towards its long-term potential in AI application and incremental markets. Goldman Sachs believes BOSS Zhipin's market share could rise from 3.5% in 2020 to over 10% by 2025, primarily driven by sustained penetration into the blue-collar and lower-tier city markets. Barclays highlights that optimizing matching efficiency and cost structure through AI technology could unlock greater operating leverage in the long run. Jefferies analysts note that BOSS Zhipin's "Mobile + Direct Chat + Smart Matching" model offers unique advantages in the current employment landscape, particularly for micro-enterprises and blue-collar job seekers. CIC (China Insights Consultancy) forecasts that China's online blue-collar recruitment market will reach RMB 152.4 billion by 2026, where BOSS Zhipin still has substantial penetration potential. Multiple institutional research reports indicate that the ability of AI technology to provide "low-cost, high-quality customized services" holds broad application value across the recruitment workflow, which will provide lasting growth momentum for BOSS Zhipin.