Boss Zhipin Earnings: User Growth Forecast Remains Intact While Margins Continue to Expand Gradually

We maintain our fair value estimate of $16 for Boss Zhipin as third-quarter 2023 revenue of CNY 1.61 billion exceeded the top end of its guidance by 3%, driven by user growth and engagement. Users grew by 38% year on year to 44.6 million in the quarter. We believe that Boss Zhipin should reach its goal of 100 million subscribers in 2026 but still see slight execution risks given the low barriers to entry in the online recruiting industry. We are cautious given the nascent nature of the company and that other historic peers plateaued in their growth as more job platforms entered the market, but we remain encouraged by Boss Zhipin’s margin expansion progress.