BOSS Direct surges 95.7%, total market cap reaches $14.87 billion

The IPO is just a new starting point.

BOSS Direct surges 95.7%, total market cap reaches .87 billion

On the evening of June 11, BOSS Direct was officially listed on the NASDAQ in the United States. The issue price was $19/ADS (American Depositary Receipts), which opened at $33.5 on that day and closed at $37.2, up 95.79%, with a total market value of about $14.878 billion.

It is reported that the IPO, BOSS direct employment issued a total of 48 million shares of American Depositary Shares (ADS), raising $912 million. Prior to BOSS Direct, MileagePlus, WisLinks, and Hunters have been listed one after another, with the current market value of MileagePlus at about $4.994 billion, Hunters at $11.228 billion, and WisLinks having been delisted in 2017.

Compared with Zilian Recruitment and MileagePlus, which grew up on the web end, BOSS, which was founded in 2014, has seized the mobile Internet dividend and cut into more small and medium-sized enterprises. The growth of active users and revenue of BOSS Direct Recruitment is also relatively significant.

From the prospectus data, in 2019 and 2020, the average monthly active users (MAU) of BOSS Direct Hire is 11.5 million and 19.8 million, an increase of 73.2%.

However, it is noteworthy that BOSS Direct Recruitment has not yet achieved profitability.

In 2019 and 2020, BOSS Direct Hire’s operating income is 999 million yuan and 1.944 billion yuan, and its adjusted net loss is 468 million yuan and 285 million yuan. The direct cause of BOSS’s loss is mainly the high marketing expenses and R&D investment.

During the 2018 World Cup, BOSS Direct Hire’s circular advertising was so impressive that its number of registered users exceeded 63 million in September of that year alone. Since then, BOSS has invited famous stars such as “Wonder Woman” Gal Gadot, Liu Tao and Shen Teng as spokespersons. It is reported that in 2020, BOSS direct employment only in CCTV advertising costs more than 100 million yuan.

From the data, the marketing expenditures of BOSS Direct Recruitment in the first quarter of 2019, 2020 and 2021 are 917 million yuan, 1.348 billion yuan and 619 million yuan respectively, accounting for 91.8%, 69.3% and 78.4% of the revenue respectively.

It is also worth mentioning that BOSS Direct Hire does have massive investments in R&D of digital technologies such as smart matching.

In 2019 and 2020, BOSS Direct Hire will invest 330 million yuan and 520 million yuan in R&D, accounting for 32.6% and 26.4% of the year’s revenue, respectively, which is higher than the average level of the Internet industry.

However, compared with the significant user growth brought by marketing expenditure, the effect brought by R&D investment will take a longer period to see the return. Overall, BOSS Direct’s revenue is increasing and losses are narrowing.

All along, BOSS Direct has been hoping to let more users enjoy the dividends of Internet recruitment.

At the IPO ceremony, Zhao Peng, the founder, chairman and CEO of BOSS Direct Recruitment, also said that major Internet recruitment companies have served hundreds of millions of workers over the past two decades, and technological advances have made it possible to serve SMEs on a large scale. It is reported that BOSS Direct Recruitment has served 6.3 million companies, of which more than 80%

According to CIC’s earlier forecast, China’s online recruitment market is expected to increase from 55.1 billion yuan in 2020 to 223.4 billion yuan in 2025. For BOSS Direct Recruitment, the IPO is just a new starting point, and how to consolidate its current industry position and make new breakthroughs in revenue is the key to its sustainable development.

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