Boss Zhipin Faces Foreseeable Macro Concerns and Execution Risks Due to Industry Fragmentation

We expect Boss Zhipin to continue its growth in both monthly active users, or MAU, and paying enterprise customers in the near term, but there could be challenges in reaching its target. Kanzhun emphasizes that it has a differentiated algorithm and expects to reach 100 million MAU in the next three years—more than double its current users and almost 5 times that of its closest peer. However, we believe there are uncertainties over its long-term growth trajectory given peers’ performance history of usership stalling as they became more established in the market given recent sharp deceleration of users and cash billings.