HeadHunter Group PLC (Nasdaq: HHR, MOEX: HHRU) announced today its
financial results for the quarter ended September 30, 2021. As used
below, references to “we,” “our,” “us” or the “Company” or similar
terms shall mean HeadHunter Group PLC.
Third Quarter 2021 Financial and Operational
Highlights
(in millions of
RUB(1) and USD(2)) |
Three months ended September 30, 2021 |
Three months ended September 30, 2020 |
Change(3) |
Three months ended September 30,
2021 |
RUB |
RUB |
|
USD(4) |
Revenue |
4,690 |
|
2,308 |
|
103.2 |
% |
64.5 |
Russia Segments(6) Revenue |
4,332 |
|
2,165 |
|
100.1 |
% |
59.5 |
Net Income |
1,769 |
|
585 |
|
202.2 |
% |
24.3 |
Net Income Margin, % |
37.7 |
% |
25.4 |
% |
12.3 ppts |
|
|
Adjusted EBITDA(5)(7) |
2,833 |
|
1,306 |
|
116.8 |
% |
38.9 |
Adjusted EBITDA Margin,
%(5)(7) |
60.4 |
% |
56.6 |
% |
3.8 ppts |
|
|
Adjusted Net Income(5)(7) |
2,051 |
|
891 |
|
130.3 |
% |
28.2 |
Adjusted Net Income Margin,
%(5)(7) |
43.7 |
% |
38.6 |
% |
5.1 ppts |
|
|
(1) “RUB” or “₽” denote Russian Ruble throughout this
release.(2) “USD” or “$” denote U.S. Dollar throughout this
release.(3) Percentage movements and certain other figures in this
release may not recalculate exactly due to rounding. This is
because percentages and/or figures contained herein are calculated
based on actual numbers and not the rounded numbers presented.(4)
Dollar translations throughout this release are included solely for
the convenience of the reader and were calculated at the exchange
rate quoted by the Central Bank of Russia as of September 30, 2021
(RUB 72.7608 to USD 1).(5) Adjusted EBITDA, Adjusted EBITDA Margin,
Adjusted Net Income and Adjusted Net Income Margin are non-IFRS
measures. See “Use of Non-IFRS Financial Measures” elsewhere in
this release for a description of these measures and a
reconciliation from the nearest IFRS measures.(6) Includes our
“Russia (hh.ru)” and “Russia (Zarplata.ru)” operating segments
revenue.(7) Beginning from the first quarter of 2021, we modified
the presentation of Adjusted EBITDA and Adjusted Net Income, our
non-IFRS measures, to exclude the impact of foreign exchange gains
and losses. Prior period amounts have been reclassified to conform
to this presentation. Please see “Modification of the presentation
of Adjusted EBITDA and Adjusted Net Income” and “Use of Non-IFRS
Financial Measures” elsewhere in this release.
- Revenue is up 103.2%, primarily due to the continuing high
demand for candidates driving up the number of paying customers and
average consumption, monetization improvements, and consolidation
of acquired subsidiaries.
- Net income is up 202.2%, Adjusted EBITDA is up 116.8% and
Adjusted EBITDA Margin is up 3.8 ppts year-on-year from 56.6% to
60.4%, mainly due to the increase in revenue.
(in millions of RUB
and USD) |
As ofSeptember 30,
2021 |
As of December 31, 2020 |
Change |
As ofSeptember 30,
2021 |
RUB |
RUB |
|
USD |
Net Working Capital(1) |
(5,091 |
) |
(3,849 |
) |
32.3 |
% |
(70.0 |
) |
Net Debt(1) |
2,330 |
|
4,909 |
|
(52.5 |
)% |
32.0 |
|
Net Debt to Adjusted EBITDA
Ratio(1) (2) |
0.3x |
|
1.2x |
|
|
|
(1) Net Working Capital, Net Debt and Net Debt to Adjusted
EBITDA Ratio are non-IFRS financial measures. See “Use of
Non-IFRS Financial Measures” elsewhere in this release for
calculation of these measures(2) For the purposes of calculation of
this ratio as of September 30, 2021, Adjusted EBITDA is calculated
on the last twelve months basis.
- Net Working Capital as of September 30, 2021 decreased by
₽1,242 million, or 32.3%, compared to December 31, 2020, primarily
due to an increase in sales and corresponding increase in customer
prepayments.
- Net Debt decreased by ₽2,579 million, or 52.5%, primarily due
to cash generated from operating activities, partly offset by the
payment in July 2021 of a dividend for the year ended December 31,
2020 (see “Cash Flows”).
- Net Debt to Adjusted EBITDA Ratio decreased from 1.2x to 0.3x,
due to the decrease in Net Debt and the increase in Adjusted
EBITDA.
Mikhail Zhukov, Chief Executive Officer of
HeadHunter Group PLC: “We’re very pleased to announce a quarter of
remarkably strong financial results. In Q3, we managed to double
our revenue compared to previous year thanks to the accelerated
offline-to-online transition. Our platform customer base expanded
to nearly 450 thousand clients in this year to date. Most
importantly, we remain focused on continuous product innovation. In
Q3, we enhanced our client proposition via new embedded chat
functionality, a fully re-worked mobile app for employers and a
streamlined experience for blue collar use cases. In the adjacent
areas such as recruitment automation, employer branding, and more
recently, contingent labor market, we made great progress through
tight collaboration with Skillaz, DreamJob and YouDo.”
Acquisition of Zarplata.ru and
Skillaz
In December 2020, we acquired 100% ownership
interest in LLC “Zarplata.ru” (“Zarplata.ru”), a job classified
platform with a strong footprint in certain Russian regions, such
as Siberia and Ural. From January 1, 2021, our statement of income
and comprehensive income includes results of Zarplata.ru. This
affects year-on-year comparisons of our revenue, operating expenses
and other metrics in 2021. For the purposes of analysis of our key
performance indicators, such as the number of paying customers and
the average revenue per customer (“ARPC”), we combine our “Russia
(hh.ru)” and “Russia (Zarplata.ru)” (collectively “Russia
segments”) revenue, as we believe that our combined ARPC and
combined number of paying customers allows us to assess better our
results and position on Russian online recruitment market, in which
both of these segments operate.
As of March 31, 2021, we obtained control over
LLC “Skillaz” (“Skillaz”), a Russian HR technology company that
automates and enhances recruitment processes by delivering
sophisticated and flexible software as a service (“SaaS”)
solutions, as our call option to acquire a further 40.01% ownership
interest in Skillaz (in addition to our 25.01% stake already
acquired) became beneficial. On May 26, 2021, we exercised the
option and acquired the 40.01% stake, and on June 28, 2021, we
acquired an additional 9.97% stake, thus increasing our total
ownership interest in Skillaz to 74.99%. From April 1, 2021, our
statement of income and comprehensive income includes results of
Skillaz. This affects year-on-year comparisons of our revenue and
operating expenses in 2021. For the purposes of the analysis of our
key performance indicators, such as the number of paying customers
and ARPC, we included Skillaz in our “Other segments.”
2021 RSU Plan
On July 30, 2021, we established a new
HeadHunter Group PLC 2021 Restricted Stock Units Plan (the "2021
RSU Plan") to provide a more straight-forward, predictable and
competitive long-term incentives to our key talent. Prior to this,
our management incentive programs included the 2016 Unit Option
Plan (the “2016 Plan”), which is focused mostly on our top
management level, as well as the 2018 Unit Option Plan (the “2018
Plan”). There are no awards remaining for granting under the 2016
Plan and awards outstanding under the 2016 Plan have vesting dates
through May 2023. In connection with the establishment of the 2021
RSU Plan, our Board of Directors determined that certain awards
previously granted under the 2018 Plan shall be replaced with
awards under the 2021 RSU Plan.
Under the 2021 RSU Plan, the Company shall issue
restricted stock units (“RSUs”) carrying the right to receive
either ordinary shares or ADSs representing such ordinary shares.
The maximum number of shares provided under the 2021 RSU Plan is 6%
of the fully diluted aggregate number of ordinary shares issued and
outstanding from time to time. Awards under the 2021 RSU Plan are
expected to be granted in tranches during the four-year period
expiring August 1, 2025. Each grant will be subject to approval by
our Board of Directors upon the recommendation of our management
and the Compensation Committee, based on certain selection
criteria. RSUs granted under the 2021 RSU Plan vest over four-year
period commencing on the grant date, with the first vesting
occurring on the first anniversary of the grant date. The 2021 RSU
Plan will reward, among others, our key talents in development,
product, sales and marketing teams.
We plan to fund the 2021 RSU Plan through a
combination of a buy-back program, which was recently approved by
our shareholders and that we announced on September 30, 2021, and
new share issuance and allotment.
In the third quarter of 2021, we granted 251,921
RSUs, and recorded an expense of ₽81 million in operating costs and
expenses (exclusive of depreciation and amortization) in our
statement of income and comprehensive income.
Share Buyback Program
On September 30, 2021 we announced a share
buyback program under which we may repurchase up to an aggregate of
RUB 3 billion (or its equivalent in US dollars) of its ordinary
shares represented by American Depositary Shares listed on the
Nasdaq Global Select Market over a period beginning on October 11,
2021 and continuing until the earlier of the completion of the
repurchase or August 10, 2022, when the authority of the Company’s
board of directors (the “Board”) to repurchase shares will expire
(the “Buyback Program”).The primary purpose of the Buyback Program
is to fund the Company’s long-term incentive programs.
Accordingly, we have instructed our broker to
repurchase our ADRs in an autonomous repurchase program in daily
installments over the 9-months period commencing October 2021. As
at November 8, 2021, the most recent date of broker’s report
obtainable prior to the date of this release, we have repurchased
52,147 ADRs.
Modification of the presentation of
Adjusted EBITDA and Adjusted Net Income
Beginning from the first quarter of 2021, we
modified the presentation of Adjusted EBITDA and Adjusted Net
Income, our non-IFRS measures, to exclude the impact of foreign
exchange gains and losses as the nature of such gains and losses is
not operational. We believe this revised presentation will provide
a better understanding of our operating performance and a more
meaningful comparison of our results between periods.
Prior period amounts have been reclassified to
conform to this presentation. These changes have no impact on any
of the previously reported IFRS results for any periods
presented.
The following tables present the effects of the
changes on the presentation of non-IFRS measures as reflected in
the Company's previous reports:
(in millions of RUB) |
For the three months ended September 30, 2020 |
|
Non-IFRS Prior Presentation |
Net foreign exchange loss and related income tax
effect |
Non-IFRS Revised Presentation |
Adjusted EBITDA |
1,296 |
|
10 |
|
1,306 |
|
Adjusted EBITDA Margin, % |
56.1 |
% |
0.5 |
% |
56.6 |
% |
Adjusted Net Income |
856 |
|
35 |
|
891 |
|
Adjusted Net Income Margin, % |
37.1 |
% |
1.5 |
% |
38.6 |
% |
(in millions of RUB) |
For the nine months ended September 30, 2020 |
|
Non-IFRS Prior Presentation |
Net foreign exchange gain and related income tax
effect |
Non-IFRS Revised Presentation |
Adjusted EBITDA |
3,027 |
|
(85 |
) |
2,942 |
|
Adjusted EBITDA Margin, % |
51.9 |
% |
(1.5 |
)% |
50.4 |
% |
Adjusted Net Income |
1,881 |
|
(51 |
) |
1,830 |
|
Adjusted Net Income Margin, % |
32.3 |
% |
(0.9 |
)% |
31.4 |
% |
(in millions of RUB) |
For the year ended December
31, 2020 |
|
Non-IFRS Prior Presentation |
Net foreign exchange gain and related income tax
effect |
Non-IFRS Revised Presentation |
Adjusted EBITDA |
4,187 |
|
(83 |
) |
4,104 |
|
Adjusted EBITDA Margin, % |
50.6 |
% |
(1.1 |
)% |
49.5 |
% |
Adjusted Net Income |
2,733 |
|
(50 |
) |
2,683 |
|
Adjusted Net Income Margin, % |
33.0 |
% |
(0.6 |
)% |
32.4 |
% |
Impact of COVID-19 on Our Operations and Financial
Position
The ongoing COVID-19 pandemic has affected our
financial results mostly via decrease in business activity in
Russia, especially as a result of measures taken by authorities to
curb the spread of COVID-19, such as shelter-in-place orders, the
implementation of non-working days and businesses closures. A
decrease in business activity may result in a decrease in a number
of job postings advertised by our customers and the number of CV
database subscriptions purchased or renewed, leading to a decrease
in our revenue.
The most severe restrictions in Russia were in
place from March 30, 2020 to May 11, 2020, when a nation-wide
period of non-working days was introduced, and shelter-in-place
orders were in effect in Moscow. This affected our revenue in the
end of the first quarter of 2020 and in the second quarter of 2020.
A gradual recovery of business activities followed in the third and
fourth quarters of 2020, resulting
in a recovery in our KPIs.
No such restrictions were introduced in the
third quarter of 2021. Accordingly, we have seen no measurable
impact of COVID-19 on our financial results for the third quarter
of 2021 and our financial position as of September 30, 2021.
However, as a result of the increased number of new cases of
COVID-19, the Russian government announced a new period of
non-working days from October 28 to November 7, 2021, which in some
regions of Russian started earlier, and in some regions has been
extended. We expect that these measures will, to some extent
depending on the duration of the non-working days period and its
impact on business activities, affect our revenue and net income in
the fourth quarter of 2021.
Our financial position, results and liquidity
may be affected in the future by any further adverse developments
related to COVID-19.
Operating Segments
For management purposes, we are organized into
operating segments based on the geography of our operations or
other subdivisions as presented in internal reporting to our chief
operating decision-maker (“CODM”). Our operating segments include
“Russia (hh.ru)”, “Russia (Zarplata.ru)”, “Belarus”, “Kazakhstan”,
“Skillaz” and other segments. As each segment, other than “Russia
(hh.ru)” individually comprises less than 10% of our revenue, for
reporting purposes we combine all segments other than “Russia
(hh.ru)” into the “Other segments” category.
Customers
We sell our services predominantly to businesses
that are looking for job seekers to fill vacancies inside their
organizations. We refer to such businesses as “customers.” In
Russia, we divide our customers into (i) Key Accounts and (ii)
Small and Medium Accounts, based on their annual revenue and
employee headcount. We define “Key Accounts” as customers who,
according to the Spark-Interfax database, have an annual revenue of
₽2 billion or more or a headcount of 250 or more employees and have
not marked themselves as recruiting agencies on their page on our
website. We define “Small and Medium Accounts” as customers who,
according to the Spark-Interfax database, have both an annual
revenue of less than ₽2 billion and a headcount of less than 250
employees and have not marked themselves as recruiting agencies on
their page on our website. Our website allows several legal
entities and/or natural persons to be registered, each with a
unique identification number, under a single account page (e.g., a
group of companies). Each legal entity registered under a single
account is defined as a separate customer and is included in the
number of paying customers metric. Natural persons registered under
a single account are assumed to be employees of the legal entities
of that account and thus, are not considered separate customers and
are not included in the number of paying customers metric. However,
in a specific reporting period, if only natural persons used our
services under such account, they are collectively included in the
number of paying customers as one customer.
Seasonality
Revenue
We generally do not experience seasonal
fluctuations in demand for our services and, prior to COVID-19, our
revenue remained relatively stable throughout each quarter.
However, our customers are predominately businesses and, therefore,
use our services mostly on business days. As a result, our
quarterly revenue is affected by the number of business days in a
quarter, with the exception of our services that represent
“stand-ready” performance obligations, such as subscriptions to
access our curriculum vitae (“CV”) database, which are satisfied
over the period of subscription, including weekends and
holidays.
Public holidays in Russia predominantly fall
during the first quarter of each year, which results in lower
business activity in that quarter. Accordingly, our first quarter
revenue is typically slightly lower than in the other quarters. For
example, our first quarter revenue in our “Russia (hh.ru)” segment
in 2019 was 21.6% (in 2020, this metric was not indicative due to
COVID-19).
The number of business days in a quarter may
also be affected by calendar layout in a specific year. In
addition, the Government of Russia decides on an annual basis how
public holidays that occur on weekends will be reallocated to
business days throughout the year as a requirement of the Labor
Code of Russia. As a result, the number of business days in a
quarter may be different in each year (while the total number of
business days in a year usually remains the same). Therefore, the
comparability of our quarterly results, including with respect to
our revenue growth rate, may be affected by this variance. In
addition, when a calendar layout in a specific year provides for
several consecutive holidays or a small number of business days
between holidays or holidays adjacent to weekends, HR managers of
our customers may take short vacations, further contributing to the
decrease in business activities in these periods.
The following table illustrates the number of
business days by quarter for the years 2019 to 2021. In 2021,
compared to 2020, there is one business day less in the first
quarter and in the total year, two business days more in the second
quarter, and two business days less in the fourth quarter, meaning
that a negative calendar effect is expected in each of the first
and fourth quarter, and a positive effect is expected in the second
quarter:
|
Number of business days |
As % of total business days per year |
|
2021 |
2020 |
2019 |
2021 |
|
2020 |
|
2019 |
|
First quarter |
56 |
57 |
57 |
22.7 |
% |
23.0 |
% |
23.1 |
% |
Second quarter |
62 |
60 |
59 |
25.1 |
% |
24.2 |
% |
23.9 |
% |
Third quarter |
66 |
66 |
66 |
26.7 |
% |
26.6 |
% |
26.7 |
% |
Fourth quarter |
63 |
65 |
65 |
25.5 |
% |
26.2 |
% |
26.3 |
% |
Year |
247 |
248 |
247 |
100.0 |
% |
100.0 |
% |
100.0 |
% |
There was no calendar effect in the third
quarter of 2021, as the number of business days was the same as the
number of business days in the third quarter of 2020.
Operating costs and expenses (exclusive of depreciation and
amortization)
Our operating costs and expenses (exclusive of
depreciation and amortization) consist primarily of personnel and
marketing expenses. Personnel and marketing expenses, in total,
accounted for 78.6% and 76.3% of our total operating costs and
expenses (exclusive of depreciation and amortization) for the years
ended December 31, 2020 and December 31, 2019, respectively. Most
of our marketing and personnel expenses are fixed and not directly
tied to our revenue.
Marketing expenses are more volatile in terms of
allocation to quarters and are affected by our decisions on how we
realize our strategy in a particular year, which can differ from
year to year. Therefore, total marketing expenses as a percentage
of revenue for a particular quarter may not be fully representative
of the whole year. Personnel expenses are relatively stable over
the year. However, they are also affected by other dynamics, such
as our hiring decisions. Some costs and expenses, such as
share-based compensation or foreign exchange gains or losses, can
be significantly concentrated in a particular quarter.
As an example, the third quarter segment
external expenses in our “Russia (hh.ru)” segment in 2019 and 2020
were 26.4% and 23.9%, respectively, of total “Russia (hh.ru)”
segment external expenses for the year.
Net income and Adjusted EBITDA
Even though our revenue remains relatively
stable throughout each quarter, seasonal revenue fluctuations, as
described above, affect our net income. As a result of revenue
seasonality, our profitability in the first quarter is usually
lower than in other quarters and for the full year, because our
expenses as a percentage of revenue are usually higher in the first
quarter due to lower revenue. Our profitability is also affected by
our decisions on timing of expenses, as described above.
Contract liabilities
Our contract liabilities are mostly affected by
the annual subscriptions’ renewal cycle in our Key Accounts
customer segment. A substantial number of our Key Accounts renew
their subscriptions in the first quarter but prepay us in the
fourth quarter of a previous year, as per our normal payment terms.
As a result, we receive substantial prepayments from our customers
in the fourth quarter which causes a consequential increase in our
contract liabilities at the end of that quarter. For example, our
contract liabilities as of March 31, June 30, September 30, and
December 31, 2020 were ₽2,584 million, ₽2,355 million, ₽2,323
million, and ₽2,785 million, respectively.
Net cash generated from operating activities
Our net cash generated from operating activities
is affected by seasonal fluctuations in business activity as
explained in “Revenue” and by substantial prepayments from our
customers (see “Contract liabilities”), as well as by our decisions
in regard to timing of expenses (see “Operating costs and expenses
(exclusive of depreciation and amortization)”), and to a lesser
extent by payment terms provided to us by our largest suppliers,
such as TV advertising agencies and others.
Net Working Capital
Our Net Working Capital is primarily affected by
changes in our contract liabilities. As our contract liabilities
have usually been highest in the fourth quarter, our Net Working
Capital has usually been lowest in the fourth quarter. For example,
our Net Working Capital as of March 31, June 30, September 30, and
December 31, 2020 was ₽(3,130) million, ₽(2,865) million, ₽(3,111)
million, and ₽(3,849) million, respectively.
Third Quarter 2021 Results
Our revenue was ₽4,690 million for the three
months ended September 30, 2021 compared to ₽2,308 million for the
three months ended September 30, 2020. Revenue for the three months
ended September 30, 2021 increased by ₽2,382 million, or 103.2%,
while the compound average growth rate(*) (“CAGR”) from 2019 to
2021 in the third quarter of 2021 was 48.0%, reflecting
acceleration of growth compared to historical averages and to the
43.4% CAGR for the second quarter of 2021. Increased demand for
candidates, which started in the second quarter of 2021 and
continued into the third quarter, resulted in the year-on-year
increase of the number of paying customers in our Small and Medium
Accounts by 46.1%, and in our Key Accounts – by 15.3% in the third
quarter of 2021, as well as the year-on-year increase of ARPC in
our Small and Medium Accounts by 40.9%, mostly due to the increase
in average consumption. ARPC in our Key Accounts segment increased
by 71.0% in the third quarter of 2021 on a year-over-year basis,
driven by the new monetization model for CV database access
effective from August 2020, and the increase in average
consumption. Revenue has also increased as a result of
consolidation of acquired subsidiaries.
The following table breaks down revenue by product for the
periods indicated:
|
For the three months ended September 30, |
|
Change |
|
CAGR |
|
(in thousands of RUB) |
2021 |
2020 |
2019 |
|
2021/2020 |
2021/2019 |
|
2019-2021 |
|
Bundled Subscriptions |
1,163,263 |
616,501 |
584,492 |
|
88.7 |
% |
99.0 |
% |
|
41.1 |
% |
CV Database Access |
979,379 |
504,233 |
493,409 |
|
94.2 |
% |
98.5 |
% |
|
40.9 |
% |
Job Postings |
2,043,813 |
973,618 |
879,272 |
|
109.9 |
% |
132.4 |
% |
|
52.5 |
% |
Other value-added services |
503,949 |
213,849 |
185,149 |
|
135.7 |
% |
172.2 |
% |
|
65.0 |
% |
Total revenue |
4,690,404 |
2,308,201 |
2,142,322 |
|
103.2 |
% |
118.9 |
% |
|
48.0 |
% |
|
For the nine months ended September 30, |
|
Change |
|
CAGR |
|
(in thousands of RUB) |
2021 |
2020 |
2019 |
|
2021/2020 |
2021/2019 |
|
2019-2021 |
|
Bundled Subscriptions |
2,951,593 |
1,718,711 |
1,642,467 |
|
71.7 |
% |
79.7 |
% |
|
34.1 |
% |
CV Database Access |
2,375,278 |
1,321,800 |
1,312,798 |
|
79.7 |
% |
80.9 |
% |
|
34.5 |
% |
Job Postings |
4,988,432 |
2,260,150 |
2,290,258 |
|
120.7 |
% |
117.8 |
% |
|
47.6 |
% |
Other value-added services |
1,127,399 |
531,784 |
476,860 |
|
112.0 |
% |
136.4 |
% |
|
53.8 |
% |
Total revenue |
11,442,702 |
5,832,445 |
5,722,383 |
|
96.2 |
% |
100.0 |
% |
|
41.4 |
% |
(*) Given low base effect on the back of
COVID-19 restrictions in the second quarter of 2020 and (to a much
lower extent) in the third quarter of 2020, in addition to
year-on-year growth to 2020, we present growth to 2019 and CAGR
over two years 2019-2021. We believe that these metrics are useful
to assess revenue growth in 2021. Please note that when commenting
on change drivers throughout this release, we are commenting on
year-over-year growth to 2020.
We calculate two-year 2019-2021 CAGR as
((S1/S0)½-1)*100%, where S0 and S1 are values for 2019 and 2021,
respectively.
The following tables set forth our revenue, number of paying
customers and ARPC, broken down by type of customer and region, for
the periods indicated:
|
For the three months ended September 30, |
Change |
CAGR |
|
2021 |
2020 |
2019 |
2021/2020 |
2021/2019 |
2019-2021 |
Revenue (in
thousands of RUB) |
|
|
|
|
|
|
|
Key Accounts in
Russia |
|
|
|
|
|
|
Moscow and St. Petersburg |
1,136,693 |
564,798 |
515,281 |
101.3 |
% |
120.6 |
% |
48.5 |
% |
Other regions of Russia |
398,662 |
214,301 |
178,432 |
86.0 |
% |
123.4 |
% |
49.5 |
% |
Sub-total |
1,535,355 |
779,099 |
693,713 |
97.1 |
% |
121.3 |
% |
48.8 |
% |
Small and Medium
Accounts in Russia |
|
|
|
|
|
|
Moscow and St. Petersburg |
1,441,995 |
735,865 |
731,744 |
96.0 |
% |
97.1 |
% |
40.4 |
% |
Other regions of Russia |
1,182,467 |
539,058 |
461,141 |
119.4 |
% |
156.4 |
% |
60.1 |
% |
Sub-total |
2,624,462 |
1,274,923 |
1,192,884 |
105.9 |
% |
120.0 |
% |
48.3 |
% |
Foreign customers of Russia
segment |
25,674 |
14,283 |
6,097 |
79.8 |
% |
321.1 |
% |
105.2 |
% |
Other customers in Russia |
146,629 |
96,949 |
91,774 |
51.2 |
% |
59.8 |
% |
26.4 |
% |
Total for “Russia” operating
segments |
4,332,120 |
2,165,254 |
1,984,469 |
100.1 |
% |
118.3 |
% |
47.8 |
% |
Other segments |
358,284 |
142,947 |
157,853 |
150.6 |
% |
127.0 |
% |
50.7 |
% |
Total revenue |
4,690,404 |
2,308,201 |
2,142,322 |
103.2 |
% |
118.9 |
% |
48.0 |
% |
|
|
|
|
|
|
|
Number of paying
customers |
|
|
|
|
|
|
Key
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
5,320 |
4,716 |
4,517 |
12.8 |
% |
17.8 |
% |
8.5 |
% |
Other regions of Russia |
6,136 |
5,222 |
4,570 |
17.5 |
% |
34.3 |
% |
15.9 |
% |
Key Accounts, total |
11,456 |
9,938 |
9,087 |
15.3 |
% |
26.1 |
% |
12.3 |
% |
Small and Medium
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
95,607 |
72,313 |
68,376 |
32.2 |
% |
39.8 |
% |
18.2 |
% |
Other regions of Russia |
158,007 |
101,253 |
85,525 |
56.1 |
% |
84.7 |
% |
35.9 |
% |
Small and Medium Accounts, total |
253,614 |
173,566 |
153,901 |
46.1 |
% |
64.8 |
% |
28.4 |
% |
Foreign customers of Russia
segments |
1,221 |
700 |
493 |
74.4 |
% |
147.7 |
% |
57.4 |
% |
Total for “Russia” operating
segments |
266,291 |
184,204 |
163,481 |
44.6 |
% |
62.9 |
% |
27.6 |
% |
Other segments, total |
17,068 |
11,237 |
14,013 |
51.9 |
% |
21.8 |
% |
10.4 |
% |
Total number of paying customers |
283,359 |
195,441 |
177,494 |
45.0 |
% |
59.6 |
% |
26.4 |
% |
|
|
|
|
|
|
|
ARPC (in
RUB) |
|
|
|
|
|
|
Key
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
213,664 |
119,762 |
114,076 |
78.4 |
% |
87.3 |
% |
36.9 |
% |
Other regions of Russia |
64,971 |
41,038 |
39,044 |
58.3 |
% |
66.4 |
% |
29.0 |
% |
Key Accounts,
total |
134,022 |
78,396 |
76,341 |
71.0 |
% |
75.6 |
% |
32.5 |
% |
Small and Medium
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
15,083 |
10,176 |
10,702 |
48.2 |
% |
40.9 |
% |
18.7 |
% |
Other regions of Russia |
7,484 |
5,324 |
5,392 |
40.6 |
% |
38.8 |
% |
17.8 |
% |
Small and Medium
Accounts, total |
10,348 |
7,345 |
7,751 |
40.9 |
% |
33.5 |
% |
15.5 |
% |
Other segments, total |
20,992 |
12,721 |
11,265 |
65.0 |
% |
86.3 |
% |
36.5 |
% |
In the third quarter of 2021, compared to the third quarter of
2020:
- In our Key Accounts customer segment, revenue has increased by
97.1%, or by 48.8% on a two-year CAGR basis, primarily due to the
increase in ARPC.
- ARPC in our Key Accounts customer segment has increased by
71.0%, or by 32.5% on a two-year CAGR basis. This was driven by the
increase in average consumption and by our monetization
improvements. Additional revenue received from top-up contacts
within new limited model in subscription products became the key
driver of growth in the APRC in this customer group in the third
quarter of 2021. Other drivers were increase in average
consumption, driven mostly by competition for candidates, as well
as annual price inflation and gradual reduction in discounts.
Average consumption was driven mostly by competition for
candidates, as the number of jobs advertised has increased more
rapidly than the number of job seekers in active search, which may
be a temporary effect depending on future development of job seeker
and employer activity.
- The number of paying customers in our Key Accounts customer
segment has increased by 15.3%, or by 12.3% on a two-year CAGR
basis as a result of new customer acquisitions and the addition of
customers of our “Russia (Zarplata.ru)” operating segment
.
- In our Small and Medium Accounts customer segment, revenue has
increased by 105.9%, or by 48.3% on a two-year CAGR basis,
primarily due to the increase in the number of paying customers and
the increase in ARPC.
- The number of paying customers in our Small and Medium Accounts
customer segment has increased by 46.1%, or by 28.4% on a two-year
CAGR basis. This was driven by economic recovery, simplifications
in customer onboarding requirements that we introduced in 2020,
increased adoption of online services on the back of COVID-19, and
the addition of customers of our “Russia (Zarplata.ru)” operating
segment.
- ARPC in our Small and Medium Accounts customer segment has
increased by 40.9%, or by 15.5% on a two-year CAGR basis. This was
driven primarily by the increase in average postings consumption
driven by competition for candidates, which may be a temporary
effect depending on future development of job seeker and employer
activity.
The following tables sets forth our revenue, number of paying
customers and ARPC, broken down by type of customer and region, for
the periods indicated:
|
For the nine months ended September 30, |
Growth |
CAGR |
|
2021 |
2020 |
2019 |
2021/2020 |
2021/2019 |
2019-2021 |
Revenue (in
thousands of RUB) |
|
|
|
|
|
|
|
Key Accounts in
Russia |
|
|
|
|
|
|
Moscow and St. Petersburg |
2,655,180 |
1,493,220 |
1,443,978 |
77.8 |
% |
83.9 |
% |
35.6 |
% |
Other regions of Russia |
988,460 |
578,475 |
464,018 |
70.9 |
% |
113.0 |
% |
46.0 |
% |
Sub-total |
3,643,640 |
2,071,695 |
1,907,996 |
75.9 |
% |
91.0 |
% |
38.2 |
% |
Small and Medium
Accounts in Russia |
|
|
|
|
|
|
Moscow and St. Petersburg |
3,533,567 |
1,779,545 |
1,930,182 |
98.6 |
% |
83.1 |
% |
35.3 |
% |
Other regions of Russia |
2,990,375 |
1,288,564 |
1,195,880 |
132.1 |
% |
150.1 |
% |
58.1 |
% |
Sub-total |
6,523,942 |
3,068,109 |
3,126,061 |
112.6 |
% |
108.7 |
% |
44.5 |
% |
Foreign customers of Russia
segment |
71,156 |
42,014 |
36,127 |
69.4 |
% |
97.0 |
% |
40.3 |
% |
Other customers in Russia |
348,308 |
243,153 |
227,535 |
43.2 |
% |
53.1 |
% |
23.7 |
% |
Total for “Russia” operating
segments |
10,587,046 |
5,424,971 |
5,297,720 |
95.2 |
% |
99.8 |
% |
41.4 |
% |
Other segments |
855,656 |
407,474 |
424,663 |
110.0 |
% |
101.5 |
% |
41.9 |
% |
Total revenue |
11,442,702 |
5,832,445 |
5,722,383 |
96.2 |
% |
100.0 |
% |
41.4 |
% |
|
|
|
|
|
|
|
Number of paying
customers |
|
|
|
|
|
|
Key
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
5,909 |
5,280 |
5,144 |
11.9 |
% |
14.9 |
% |
7.2 |
% |
Other regions of Russia |
6,938 |
5,938 |
5,340 |
16.8 |
% |
29.9 |
% |
14.0 |
% |
Key Accounts, total |
12,847 |
11,218 |
10,484 |
14.5 |
% |
22.5 |
% |
10.7 |
% |
Small and Medium
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
150,316 |
106,793 |
107,066 |
40.8 |
% |
40.4 |
% |
18.5 |
% |
Other regions of Russia |
258,483 |
150,950 |
138,743 |
71.2 |
% |
86.3 |
% |
36.5 |
% |
Small and Medium Accounts, total |
408,799 |
257,743 |
245,809 |
58.6 |
% |
66.3 |
% |
29.0 |
% |
Foreign customers of Russia
segments |
2,423 |
1,297 |
990 |
86.8 |
% |
144.7 |
% |
56.4 |
% |
Total for “Russia” operating
segments |
424,069 |
270,258 |
257,283 |
56.9 |
% |
64.8 |
% |
28.4 |
% |
Other segments, total |
25,613 |
19,049 |
21,665 |
34.5 |
% |
18.2 |
% |
8.7 |
% |
Total number of paying customers |
449,682 |
289,307 |
278,948 |
55.4 |
% |
61.2 |
% |
27.0 |
% |
|
|
|
|
|
|
|
ARPC (in
RUB) |
|
|
|
|
|
|
Key
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
449,345 |
282,807 |
280,711 |
58.9 |
% |
60.1 |
% |
26.5 |
% |
Other regions of Russia |
142,470 |
97,419 |
86,895 |
46.2 |
% |
64.0 |
% |
28.0 |
% |
Key Accounts,
total |
283,618 |
184,676 |
181,991 |
53.6 |
% |
55.8 |
% |
24.8 |
% |
Small and Medium
Accounts |
|
|
|
|
|
|
Moscow and St. Petersburg |
23,508 |
16,663 |
18,028 |
41.1 |
% |
30.4 |
% |
14.2 |
% |
Other regions of Russia |
11,569 |
8,536 |
8,619 |
35.5 |
% |
34.2 |
% |
15.9 |
% |
Small and Medium
Accounts, total |
15,959 |
11,904 |
12,717 |
34.1 |
% |
25.5 |
% |
12.0 |
% |
Other segments, total |
33,407 |
21,391 |
19,601 |
56.2 |
% |
70.4 |
% |
30.5 |
% |
Operating costs
and expenses (exclusive
of depreciation and amortization)
Operating costs and expenses (exclusive of
depreciation and amortization) were ₽2,005 million for the three
months ended September 30, 2021, compared to ₽1,183 million for the
three months ended September 30, 2020, representing an
increase of ₽822 million, or 69.5%.
The following table sets forth operating costs and expenses
(exclusive of depreciation and amortization) for the periods
indicated:
(in thousands of RUB) |
For the three months ended September
30, |
For the nine months ended September
30, |
|
2021 |
|
2020 |
|
Change |
2021 |
|
2020 |
|
Change |
Personnel
expenses |
(1,048,358 |
) |
(649,869 |
) |
61.3 |
% |
(2,947,616 |
) |
(1,771,614 |
) |
66.4 |
% |
Marketing expenses |
(563,698 |
) |
(234,768 |
) |
140.1 |
% |
(1,364,157 |
) |
(787,028 |
) |
73.3 |
% |
Other general and administrative expenses: |
|
|
|
|
|
|
Subcontractors and other expenses related to provision of
services |
(118,311 |
) |
(52,873 |
) |
123.8 |
% |
(280,876 |
) |
(130,701 |
) |
114.9 |
% |
Office rent and maintenance |
(82,427 |
) |
(42,390 |
) |
94.4 |
% |
(213,129 |
) |
(122,425 |
) |
74.1 |
% |
Professional services |
(86,329 |
) |
(128,178 |
) |
(32.6 |
)% |
(261,279 |
) |
(245,048 |
) |
6.6 |
% |
Insurance expense |
(40,283 |
) |
(46,354 |
) |
(13.1 |
)% |
(129,257 |
) |
(133,397 |
) |
(3.1 |
)% |
Hosting and other web-site maintenance |
(21,643 |
) |
(11,960 |
) |
81.0 |
% |
(58,876 |
) |
(34,543 |
) |
70.4 |
% |
Other operating expenses |
(43,747 |
) |
(16,428 |
) |
166.3 |
% |
(156,115 |
) |
(47,748 |
) |
227.0 |
% |
Operating costs and
expenses (exclusive of depreciation and amortization) |
(2,004,796 |
) |
(1,182,820 |
) |
69.5 |
% |
(5,411,305 |
) |
(3,272,504 |
) |
65.4 |
% |
The following table sets forth operating costs and expenses
(exclusive of depreciation and amortization) as percentage of
revenue for the periods indicated:
|
For the three months ended September
30, |
For the nine months ended September
30, |
|
2021 |
|
2020 |
|
Change |
2021 |
|
2020 |
|
Change |
Personnel
expenses |
22.4 |
% |
28.2 |
% |
(5.8 |
)% |
25.8 |
% |
30.4 |
% |
(4.6 |
)% |
Marketing expenses |
12.0 |
% |
10.2 |
% |
1.8 |
% |
11.9 |
% |
13.5 |
% |
(1.6 |
)% |
Other general and administrative expenses: |
|
|
|
|
|
|
Subcontractors and other expenses related to provision of
services |
2.5 |
% |
2.3 |
% |
0.2 |
% |
2.5 |
% |
2.2 |
% |
0.2 |
% |
Office rent and maintenance |
1.8 |
% |
1.8 |
% |
(0.1 |
)% |
1.9 |
% |
2.1 |
% |
(0.2 |
)% |
Professional services |
1.8 |
% |
5.6 |
% |
(3.7 |
)% |
2.3 |
% |
4.2 |
% |
(1.9 |
)% |
Insurance expense |
0.9 |
% |
2.0 |
% |
(1.1 |
)% |
1.1 |
% |
2.3 |
% |
(1.2 |
)% |
Hosting and other web-site maintenance |
0.5 |
% |
0.5 |
% |
(0.1 |
)% |
0.5 |
% |
0.6 |
% |
(0.1 |
)% |
Other operating expenses |
0.9 |
% |
0.7 |
% |
0.2 |
% |
1.4 |
% |
0.8 |
% |
0.5 |
% |
Operating costs and
expenses (exclusive of depreciation and amortization) |
42.7 |
% |
51.2 |
% |
(8.5 |
)% |
47.3 |
% |
56.1 |
% |
(8.8 |
)% |
Personnel expenses
Personnel expenses for the three months ended
September 30, 2021 increased by ₽398 million, or 61.3%, compared to
the three months ended September 30, 2020, primarily due to: (i)
the addition of personnel expenses of Zarplata.ru and Skillaz; (ii)
an increase in share-based compensation expense arising from
the 2021 RSU Plan; and (iii) the increase in headcount by 126
people (not including increase in personnel headcount due to
acquisition of Zarplata.ru and Skillaz) from September 30, 2020 to
September 30, 2021, primarily in our development, sales and
production teams; and (iv) an increase of our sales team bonuses on
the back of exceeding revenue targets in the third quarter of
2021.
Personnel expenses as a percentage of revenue
decreased from 28.2% in the third quarter of 2020 to 22.4% in the
third quarter of 2021 due to the increase in revenue.
Personnel expenses (excluding share-based
compensations and other items) as a percentage of revenue decreased
from 24.3% in the third quarter of 2020 to 19.3% in the third
quarter of 2021 due to the increase in revenue. See “Use of
Non-IFRS Financial Measures” elsewhere in this release for a
reconciliation of personnel expenses (excluding share-based
compensations and other items) from the nearest IFRS measure.
Our headcount increased to 1,322 people as of
September 30, 2021, from 832 people as of December 31, 2020, mostly
due to the addition of Zarplata.ru and Skillaz personnel.
Marketing expenses
Marketing expenses increased by ₽329 million, or
140.1%, for the three months ended September 30, 2021 compared to
the three months ended September 30, 2020, as we allocated
significant marketing budgets to the third quarter of 2021 to
respond to a busy autumn season, as well as due to addition of
marketing expenses of Zarplata.ru.
Accordingly, marketing expenses as a percentage
of revenue increased from 10.2% in the third quarter 2020 to 12.0%
in the third quarter 2021.
Other general and administrative expenses
Total other general and administrative expenses
increased by ₽95 million, or 31.7%, primarily due to: (i) the
addition of Zarplata.ru and Skillaz other general and
administrative expenses; and (ii) an increase in subcontractor
costs in our “Russia (hh.ru)” segment due to the increase in
revenue from other value-added services; and was partly offset by
SPO-related costs in the third quarter 2020 not occurring in the
third quarter of 2021.
Total other general and administrative expenses
as a percentage of revenue decreased to 8.4% in the third quarter
2021 from 12.9% in the third quarter 2020, due to the increase in
expenses related to the SPO transaction in the third quarter 2020,
not occurring in the third quarter 2021.
Total other general and administrative expenses
(excluding items unrelated to our core business activities) as a
percentage of revenue were 8.4% in the third quarter of 2021
relatively flat compared to 9.0% in the third quarter of 2020. See
“Use of Non-IFRS Financial Measures” elsewhere in this release for
a reconciliation of other general and administrative expenses
(excluding items unrelated to our core business activities) from
the nearest IFRS measure.
Net foreign exchange loss
Net foreign exchange loss was ₽10 million for
the three months ended September 30, 2021, compared to a
₽10 million loss for the three months ended September 30,
2020.
Depreciation and amortization
Depreciation and amortization were
P259 million for the three months ended September 30, 2021,
compared to ₽187 million for the three months ended September 30,
2020. The increase by 38.3%, or ₽72 million, mainly relates to
amortization of intangible assets of Zarplata.ru and Skillaz
measured at fair values on acquisition.
Finance income and costs
Finance income was ₽57 million for the three
months ended September 30, 2021, compared to ₽15 million for the
three months ended September 30, 2020, primarily due to an increase
in income from cash deposits due to an increase in cash.
Finance costs were ₽173 million for the three
months ended September 30, 2021, compared to ₽93 million for the
three months ended September 30, 2020. The increase of ₽80 million
was primarily due to ₽65 million interest accrued on
non-convertible bonds issued in the fourth quarter 2020 to finance
Zarplata.ru acquisition, as well as the increase in the interest
payable on our bank loan due to an increase in the key rate by the
Central Bank of Russia in the third quarter 2021.
Income tax expense
Income tax expense increased to P548 million for
the three months ended September 30, 2021 from ₽264 million for the
three months ended September 30, 2020, following an increase in
revenue resulting in an increase in taxable income.
The effective tax rate decreased to 23.7% for
the three months ended September 30, 2021 compared to 31.1% for the
three months ended September 30, 2020 mainly due to (i)
non-deductible SPO-related expense in the three months ended
September 30, 2020 not occurring in the three months ended
September 30, 2021, and (ii) a decrease in the proportion of
non-deductible expenses and unrecognized deferred tax assets
relative to profit before income tax.
Net income, Adjusted EBITDA and Adjusted Net
Income
In the three months ended September 30, 2021,
compared to the three months ended September 30, 2020, our net
income increased by 202.2% to ₽1,769 million, our Adjusted EBITDA
increased by 116.8% to ₽2,833 million and our Adjusted Net Income
increased by 130.3% to ₽2,051 million, primarily due to the reasons
described above.
Cash Flows
The following table sets forth the summary cash flow statements
for the periods indicated:
(in thousands of RUB) |
For the nine months ended September 30, |
|
2021 |
|
2020 |
|
Change |
Net cash generated from operating activities |
6,025,956 |
|
1,948,946 |
|
4,077,010 |
|
Net cash used in investing activities |
(983,290 |
) |
(180,524 |
) |
(802,766 |
) |
Net cash used in financing activities |
(2,828,672 |
) |
(2,735,530 |
) |
(93,142 |
) |
Net increase/(decrease) in cash and cash
equivalents |
2,213,994 |
|
(967,108 |
) |
3,181,102 |
|
Cash and cash equivalents, beginning of period |
3,367,610 |
|
2,089,215 |
|
1,278,395 |
|
Effect of exchange rate changes on cash |
26,380 |
|
197,821 |
|
(171,441 |
) |
Cash and cash equivalents, end of period |
5,607,984 |
|
1,319,928 |
|
4,288,056 |
|
Net cash generated from operating activities
For the nine months ended September 30, 2021,
net cash generated from operating activities was ₽6,026 million,
compared to ₽1,949 million generated for the nine months ended
September 30, 2020. The change between the periods of ₽4,077
million was primarily driven by: (i) an increase in net income
(adjusted for non-cash items and items not affecting cash flow from
operating activities), and (ii) an increase in contract liabilities
due an increase in advances received from customers.
Net cash used in investing activities
For the nine months ended September 30, 2021,
net cash used in investing activities was ₽983 million, compared to
₽181 million for the nine months ended September 30, 2020. The
change between the periods of ₽803 million was mainly due to: (i)
₽556 million (net of cash acquired) paid for acquisition of 40.01%
stake in Skillaz in the second quarter of 2021; (ii) ₽234 million
deferred consideration paid in the first quarter of 2021 for
acquisition of Zarplata.ru; (iii) ₽61 million paid in the second
quarter of 2021 for acquisition of 25% in the charter capital of
Dream Job LLC (Russia); and (iv) issue of a loan to a third party
in May 2021 in the amount of ₽74 million on arm-length basis.
Net cash used in financing activities
For the nine months ended September 30, 2021,
net cash used in financing activities was ₽2,829 million, compared
to ₽2,736 million for the nine months ended September 30, 2020. The
change between the periods of ₽93 million was primarily due to the
cash paid for additional 9.97% interest in Skillaz acquired on June
28, 2021 and the increase in the amount of dividends paid to
shareholders by ₽188 million, which was partly offset by the
decrease in regular bank loan repayments by ₽273 million as a
result of a change in a loan amortization schedule in 2020.
Capital Expenditures
Our additions to property and equipment and
intangible assets for the nine months ended September 30, 2021 were
₽805 million, compared to ₽213 million for the nine months ended
September 30, 2020, representing an increase of ₽592 million
primarily due to acquisition of intangible assets relating to
Skillaz in the amount of ₽613 million.
Dividend
In July 2021 we settled the previously announced
dividend for the year ended December 31, 2020 of $0.55 per share,
which amounted to ₽2,048 million, representing approximately 75% of
our Adjusted Net Income for the year ended December 31, 2020.
Post Balance Sheet Events
On October 28, 2021 we entered into a shares
subscription agreement and acquired a minority stake in YouDo Web
Technologies Limited (Cyprus) (“YouDo”), the leading online
on-demand service marketplace in Russia (the “Investment”), in
exchange for a cash-in investment of US$ 5 million. Founded in
2012, YouDo is one of the largest Russian horizontal online service
marketplaces matching freelance labor demand and supply in C2C and
B2B segments. The service has nearly 9 million verified users and
operates in all regions of Russia. The Investment in YouDo is in
line with our strategy to further expand beyond the core
recruitment market and enter promising adjacent segments within the
entire HR value chain. We expect that it will enable the Company to
access rapidly developing gig-economy market and provide resources
to accelerate YouDo’s expansion in the B2B segment.
Financial Outlook
The following forward-looking statement reflects
our expectations as of November 15, 2021:
We currently expect our revenue to grow in the
range of 81% to 84% in year 2021 year-over-year compared to the
year 2020.
This outlook reflects our current view, based on
the trends that we see at this time, and may change considering
market, economic and social developments in jurisdictions in which
we operate.
Third Quarter 2021 Financial Results Conference
Call
We will host a conference call and webcast to
discuss our results on November 15, 2021 at 9:00 a.m. U.S. Eastern
Time (5:00 p.m. Moscow time, 2:00 p.m. London time).
We recommend using the dial-in option only if
you would like to ask questions. In this case, please dial in at
least 15 minutes prior to the call start time and clearly state the
requested information. For listen only mode, please use the webcast
link. The earnings release can be accessed through our website at
https://investor.hh.ru/. Following the call, a replay will be
available on our website.
To participate in the conference call, please use the
following details:
Standard International: |
+44 (0) 2071 928338 |
UK (local): |
+44 (0) 8444 819752 |
UK (toll free): |
0800 279 6619 |
USA (local): |
+1 646 741 3167 |
USA (toll free): |
+1 877 870 9135 |
Russian Federation (local): |
+7 495 249 9851 |
Russian Federation (toll free): |
810 800 2114 4011 |
Conference ID: |
11105077 |
Webcast:
https://edge.media-server.com/mmc/p/u97ttpxk
Contacts:
Investor InquiriesArman ArutyunianE-mail: a.arutyunian@hh.ru
Media InquiriesAlexander DzhabarovE-mail: a.dzhabarov@hh.ru
About HeadHunter Group PLC
HeadHunter is the leading online recruitment
platform in Russia and the Commonwealth of Independent States
focused on providing comprehensive talent acquisition services,
such as access to extensive CV database, job postings (jobs
classifieds platform) and a portfolio of value-added services.
USE OF NON-IFRS FINANCIAL MEASURES
To supplement our consolidated financial
statements, which are prepared in accordance with International
Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“IASB”), we present the
following non-IFRS1 financial measures: Adjusted EBITDA, Adjusted
Net Income, Adjusted EBITDA Margin, Adjusted Net Income Margin,
Adjusted Operating Costs and Expenses (Exclusive of Depreciation
and Amortization), Net Working Capital, Net Debt and Net Debt to
Adjusted EBITDA Ratio. The presentation of these financial measures
is not intended to be considered in isolation or as a substitute
for, or superior to, the financial information prepared and
presented in accordance with IFRS. For more information on these
non-IFRS financial measures, please see the tables captioned
“Reconciliations of non-IFRS financial measures from the nearest
comparable IFRS measures”, included following the accompanying
financial tables. We define the various non-IFRS financial measures
we use as follows:
- “Adjusted EBITDA” as net income/(loss) plus: (1) income tax
expense; (2) net interest costs; (3) depreciation and amortization;
(4) expenses related to equity-settled awards, including
related social taxes; (5) secondary public offering (“SPO”) related
costs; (6) transaction costs related to business combinations; (7)
insurance expenses related to IPO; (8) (income) from the
depositary; (9) net foreign exchange loss gain; (10) (Gain) on
remeasurement of previously held interest in equity-accounted
investees; (11) net (gain)/loss on financial assets measured at
fair value through profit and loss; (12) share of (profit)/loss of
equity-accounted investees.
- “Adjusted Net Income” as net income/(loss) plus: (1) expenses
related to equity-settled awards, including related social taxes;
(2) secondary public offering (“SPO”) related costs; (3)
transaction costs related to business combinations; (4) insurance
expenses related to IPO; (5) (income) from the depositary;
(6) net foreign exchange gain; (7) (gain) on remeasurement of
previously held interest in equity-accounted investees; (8) net
(gain)/loss on financial assets measured at fair value through
profit and loss; (9) share of (profit)/loss of equity-accounted
investees; (10) amortization of intangible assets recognized in
business combinations; (11) tax effect on adjustments.
- “Adjusted EBITDA Margin” as Adjusted EBITDA divided by
revenue.
- “Adjusted Net Income Margin” as Adjusted Net Income divided by
revenue.
- “Adjusted Operating Costs and Expenses (Exclusive of
Depreciation and Amortization)” as operating costs and expenses
(exclusive of depreciation and amortization) plus: (1) expenses
related to equity-settled awards, including related social taxes;
(2) insurance expenses related to IPO; (3) transaction costs
related to business combinations; (4) secondary public offering
(“SPO”) related costs.
- “Net Working Capital” as a sum of: (1) Trade and other
receivables and (2) Prepaid expenses and other current assets; less
a sum of: (1) Contract liabilities (current); (2) Trade and other
payables (current) and (3) Other current liabilities.
- “Net Debt” as a sum of current and non-current part of Loans
and borrowings minus Cash and cash equivalents.
- “Net Debt to Adjusted EBITDA Ratio” by dividing Net Debt by
Adjusted EBITDA.
1 Denotes International Financial Reporting
Standards as issued by the International Accounting Standards Board
(“IASB”).
Adjusted EBITDA, Adjusted Net Income, Adjusted
EBITDA Margin, Adjusted Net Income Margin and Adjusted Operating
Costs and Expenses (Exclusive of Depreciation and Amortization) are
used by our management to monitor the underlying performance of the
business and its operations. Adjusted EBITDA, Adjusted Net Income,
Adjusted EBITDA Margin, Adjusted Net Income Margin and Adjusted
Operating Costs and Expenses (Exclusive of Depreciation and
Amortization) are used by different companies for differing
purposes and are often calculated in ways that reflect the
circumstances of those companies. You should exercise caution in
comparing Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA
Margin, Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) as reported
by us to Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA
Margin, Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) as reported
by other companies. Adjusted EBITDA, Adjusted Net Income, Adjusted
EBITDA Margin, Adjusted Net Income Margin and Adjusted Operating
Costs and Expenses (Exclusive of Depreciation and Amortization) are
unaudited and have not been prepared in accordance with IFRS or any
other generally accepted accounting principles.
Adjusted EBITDA, Adjusted Net Income, Adjusted
EBITDA Margin, Adjusted Net Income Margin and Adjusted Operating
Costs and Expenses (Exclusive of Depreciation and Amortization) are
not measurements of performance under IFRS or any other generally
accepted accounting principles, and you should not consider
Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin,
Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) as
alternatives to net income, operating profit or other financial
measures determined in accordance with IFRS or other generally
accepted accounting principles. Adjusted EBITDA, Adjusted Net
Income, Adjusted EBITDA Margin, Adjusted Net Income Margin and
Adjusted Operating Costs and Expenses (Exclusive of Depreciation
and Amortization) have limitations as analytical tools, and you
should not consider them in isolation. Some of these limitations
are:
- Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin,
Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) do not
reflect our cash expenditures or future requirements for capital
expenditures or contractual commitments,
- Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin,
Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) do not
reflect changes in, or cash requirements for, our working capital
needs, and
- the fact that other companies in our industry may calculate
Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin,
Adjusted Net Income Margin and Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) differently
than we do, which limits their usefulness as comparative
measures.
The tables at the end of this release provide
detailed reconciliations of each non-IFRS financial measure we use
from the most directly comparable IFRS financial measure.
We provide earnings guidance on a non-IFRS basis
and do not provide earnings guidance on an IFRS basis. A
reconciliation of our Adjusted EBITDA Margin guidance to the most
directly comparable IFRS financial measure cannot be provided
without unreasonable efforts and is not provided herein because of
the inherent difficulty in forecasting and quantifying certain
amounts that are necessary for such reconciliations, including
depreciation and amortization, expenses related to equity-settled
awards and the other adjustments reflected in our reconciliation of
historical non-IFRS financial measures, the amounts of which, could
be material.
Adjusted Operating Costs and Expenses (Exclusive
of Depreciation and Amortization)
Adjusted Operating Costs and Expenses (Exclusive
of Depreciation and Amortization) is a financial measure not
defined under IFRS. We believe that Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) is a useful
metric to assess our operating activities. We excluded expenses
incurred in connection with potential financing and strategic
transactions, including IPO and SPO- related expenses that are not
indicative of our ongoing expenses. We also excluded equity-settled
awards as these are non-cash expenses and highly dependent on our
share price at the time of equity award grants. Therefore, we
believe that it is useful for investors and analysts to see
operating costs and expenses financial measures excluding the
impact of these charges in order to obtain a clearer picture of our
operating activity. Other companies in our industry may calculate
these measures differently than we do, limiting their usefulness as
comparative measures. See the tables at the end of this release
providing the calculation of Adjusted Operating Costs and Expenses
(Exclusive of Depreciation and Amortization).
Net Working Capital
Net Working Capital is a financial measure not
defined under IFRS. We believe that Net Working Capital is a useful
metric to assess our ability to service debt, fund new investment
opportunities, distribute dividends to our shareholders and assess
our working capital requirements. Other companies in our industry
may calculate these measures differently than we do, limiting their
usefulness as comparative measures. See the tables at the end of
this release providing the calculation of Net Working Capital.
Net Debt and Net Debt to Adjusted EBITDA
Ratio
Net Debt and Net Debt to Adjusted EBITDA Ratio
are financial measures not defined under IFRS. We believe that Net
Debt and Net Debt to Adjusted EBITDA Ratio are important measures
that indicate our ability to repay outstanding debt. These measures
should not be considered in isolation or as a substitute for any
standardized measure under IFRS. Other companies in our industry
may calculate these measures differently than we do, limiting their
usefulness as comparative measures. See the tables at the end of
this release providing the calculation of Net Debt and discussion
of Net Debt to Adjusted EBITDA Ratio.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements contained in this release that
do not relate to matters of historical fact should be considered
forward-looking statements, including, without limitation,
statements regarding our expected financial performance and
operational performance for the year ending December 31, 2021, the
anticipated impact of the COVID-19 pandemic on our business and
results of operations, the sufficiency of our resources and our
ability to finance our operations for the foreseeable future, as
well as statements that include the words “expect,” “intend,”
“plan,” “believe,” “project,” “forecast,” “estimate,” “may,”
“should,” “anticipate” and similar statements of a future or
forward-looking nature. These forward-looking statements are based
on management’s current expectations. Actual results may differ
materially from the results predicted or implied by such
statements, and our reported results should not be considered as an
indication of future performance. The potential risks and
uncertainties that could cause actual results to differ from the
results predicted or implied by such statements include, among
others, significant competition in our markets, our ability to
maintain and enhance our brand, our ability to improve our user
experience and product offerings, our ability to respond to
industry developments, our reliance on Russian Internet
infrastructure, macroeconomic and global geopolitical developments
affecting the Russian economy or our business, including the impact
of the COVID-19 pandemic, changes in the political, legal and/or
regulatory environment, privacy and data protection concerns and
our need to expend capital to accommodate the growth of the
business, as well as those risks and uncertainties included under
the caption “Risk Factors” in our Annual Report on Form 20-F for
the year ended December 31, 2020, as such factors may be updated
from time to time in our other filings with the U.S. Securities and
Exchange Commission (“SEC”), each of which is on file with the SEC
and is available on the SEC website at www.sec.gov. In addition, we
operate in a very competitive and rapidly changing environment. New
risks emerge from time to time. It is not possible for our
management to predict all risks, nor can we assess the impact of
all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
that we may make. In light of these risks, uncertainties and
assumptions, the forward-looking events and circumstances discussed
in this release are inherently uncertain and may not occur, and
actual results could differ materially and adversely from those
anticipated or implied in the forward-looking statements.
Accordingly, you should not rely upon forward-looking statements as
predictions of future events. In addition, the forward-looking
statements made in this release relate only to events or
information as of the date on which the statements are made in this
release. Except as required by law, we undertake no obligation to
update or revise publicly any forward-looking statements, whether
as a result of new information, future events or otherwise, after
the date on which the statements are made or to reflect the
occurrence of unanticipated events.
Unaudited Condensed Consolidated Interim
Statement of Income and Comprehensive Income
(in thousands of RUB and USD, except per share
amounts)
|
|
|
|
|
|
|
|
For the three months ended September 30, |
For the nine months ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2021 |
|
2020 |
|
2021 |
|
|
RUB |
RUB |
USD |
RUB |
RUB |
USD |
Revenue |
4,690,404 |
|
2,308,201 |
|
64,463 |
|
11,442,702 |
|
5,832,445 |
|
157,265 |
|
Operating costs and expenses (exclusive of depreciation and
amortization) |
(2,004,796 |
) |
(1,182,820 |
) |
(27,553 |
) |
(5,411,305 |
) |
(3,272,504 |
) |
(74,371 |
) |
Depreciation and amortization |
(258,950 |
) |
(187,187 |
) |
(3,559 |
) |
(786,239 |
) |
(555,497 |
) |
(10,806 |
) |
Operating income |
2,426,658 |
|
938,194 |
|
33,351 |
|
5,245,158 |
|
2,004,444 |
|
72,088 |
|
Finance income |
56,583 |
|
14,667 |
|
778 |
|
169,199 |
|
42,437 |
|
2,325 |
|
Finance costs |
(172,589 |
) |
(92,569 |
) |
(2,372 |
) |
(480,547 |
) |
(320,066 |
) |
(6,604 |
) |
Net foreign exchange (loss)/gain |
(9,899 |
) |
(10,294 |
) |
(136 |
) |
(1,433 |
) |
84,474 |
|
(20 |
) |
Other income |
18,803 |
|
13,358 |
|
258 |
|
46,854 |
|
33,954 |
|
644 |
|
Share of loss of equity-accounted investees (net of income
tax) |
(2,708 |
) |
(14,030 |
) |
(37 |
) |
(8,353 |
) |
(38,776 |
) |
(115 |
) |
Gain on remeasurement of previously held interest in equity
accounted investees |
– |
|
– |
|
– |
|
223,308 |
|
– |
|
3,069 |
|
Profit before income tax |
2,316,848 |
|
849,326 |
|
31,842 |
|
5,194,186 |
|
1,806,467 |
|
71,387 |
|
Income tax expense |
(548,214 |
) |
(263,987 |
) |
(7,534 |
) |
(1,216,609 |
) |
(570,446 |
) |
(16,721 |
) |
Net income for the period |
1,768,634 |
|
585,339 |
|
24,308 |
|
3,977,577 |
|
1,236,021 |
|
54,666 |
|
Attributable to: |
|
|
|
|
|
|
Owners of the Company |
1,712,643 |
|
545,198 |
|
23,538 |
|
3,870,814 |
|
1,127,945 |
|
53,199 |
|
Non-controlling interest |
55,991 |
|
40,141 |
|
770 |
|
106,763 |
|
108,076 |
|
1,467 |
|
Comprehensive
(loss)/income |
|
|
|
|
|
|
Items that are or may be reclassified subsequently to profit or
loss: |
|
|
|
|
|
|
Foreign currency translation differences |
5,686 |
|
25,484 |
|
78 |
|
884 |
|
42,024 |
|
12 |
|
Total comprehensive income, net of tax |
1,774,320 |
|
610,823 |
|
24,386 |
|
3,978,461 |
|
1,278,045 |
|
54,679 |
|
Attributable to: |
|
|
|
|
|
|
Owners of the Company |
1,718,052 |
|
568,013 |
|
23,612 |
|
3,870,547 |
|
1,164,721 |
|
53,195 |
|
Non-controlling interest |
56,268 |
|
42,810 |
|
773 |
|
107,914 |
|
113,324 |
|
1,483 |
|
Earnings per share |
|
|
|
|
|
|
Basic (in RUB per share) |
33.82 |
|
10.84 |
|
0.46 |
|
76.68 |
|
22.48 |
|
1.05 |
|
Diluted (in RUB per share) |
33.01 |
|
10.57 |
|
0.45 |
|
74.60 |
|
21.88 |
|
1.03 |
|
Unaudited Condensed Consolidated Interim Statement of
Financial Position
As at
(in thousands of RUB and USD) |
September 30, 2021 |
December 31, 2020
Revised |
September 30, 2021 |
|
RUB |
RUB |
USD |
Non-current assets |
|
|
|
Goodwill2 |
10,631,711 |
|
9,881,100 |
|
146,119 |
|
Intangible assets2 |
3,495,997 |
|
3,386,265 |
|
48,048 |
|
Property and equipment |
435,529 |
|
466,725 |
|
5,986 |
|
Equity-accounted investees |
57,811 |
|
129,666 |
|
795 |
|
Right-of-use assets |
164,455 |
|
215,120 |
|
2,260 |
|
Deferred tax assets |
302,384 |
|
176,328 |
|
4,156 |
|
Loans issued |
76,196 |
|
11,541 |
|
1,047 |
|
Other financial assets |
– |
|
25,491 |
|
– |
|
Other non-current assets |
25,447 |
|
22,176 |
|
350 |
|
Total non-current assets |
15,189,530 |
|
14,314,412 |
|
208,760 |
|
Current assets |
|
|
|
Trade and other receivables |
212,058 |
|
69,120 |
|
2,914 |
|
Indemnification asset |
181,294 |
|
186,473 |
|
2,492 |
|
Prepaid expenses and other current assets |
271,973 |
|
179,118 |
|
3,738 |
|
Loans issued (current portion) |
7 |
|
8,178 |
|
– |
|
Cash and cash equivalents |
5,607,984 |
|
3,367,610 |
|
77,074 |
|
Total current assets |
6,273,316 |
|
3,810,499 |
|
86,218 |
|
Total assets |
21,462,846 |
|
18,124,911 |
|
294,978 |
|
Equity |
|
|
|
Share capital |
8,655 |
|
8,597 |
|
119 |
|
Share premium |
2,134,195 |
|
1,987,044 |
|
29,332 |
|
Foreign currency translation reserve |
(92,407 |
) |
(92,140 |
) |
(1,270 |
) |
Retained earnings |
3,236,251 |
|
1,536,137 |
|
44,478 |
|
Total equity attributable to owners of the
Company |
5,286,694 |
|
3,439,638 |
|
72,659 |
|
Non-controlling interest |
131,995 |
|
69,104 |
|
1,814 |
|
Total equity |
5,418,689 |
|
3,508,742 |
|
74,473 |
|
Non-current liabilities |
|
|
|
Loans and borrowings |
7,453,702 |
|
7,791,326 |
|
102,441 |
|
Lease liabilities |
107,907 |
|
164,245 |
|
1,483 |
|
Deferred tax liabilities2 |
539,631 |
|
611,152 |
|
7,417 |
|
Contract liabilities |
77,407 |
|
– |
|
1,064 |
|
Trade and other payables |
106,705 |
|
178,607 |
|
1,467 |
|
Provisions |
99,793 |
|
87,822 |
|
1,372 |
|
Other non-current liabilities |
150,528 |
|
142,531 |
|
2,069 |
|
Total non-current liabilities |
8,535,673 |
|
8,975,683 |
|
117,311 |
|
Current liabilities |
|
|
|
Contract liabilities |
3,622,897 |
|
2,785,402 |
|
49,792 |
|
Trade and other payables |
1,847,521 |
|
1,273,089 |
|
25,392 |
|
Loans and borrowings (current portion) |
483,940 |
|
485,100 |
|
6,651 |
|
Lease liabilities (current portion) |
82,602 |
|
77,752 |
|
1,135 |
|
Income tax payable |
572,893 |
|
401,733 |
|
7,874 |
|
Provisions (current portion) |
793,667 |
|
578,651 |
|
10,908 |
|
Other current liabilities |
104,964 |
|
38,759 |
|
1,443 |
|
Total current liabilities |
7,508,484 |
|
5,640,486 |
|
103,194 |
|
Total liabilities |
16,044,157 |
|
14,616,169 |
|
220,506 |
|
Total equity and liabilities |
21,462,846 |
|
18,124,911 |
|
294,978 |
|
2 Amounts for referenced lines do not correspond to the
consolidated financial statements for the year ended December 31,
2020 and reflect adjustments made in respect to the finalization of
the purchase price allocation related to Zarplata.ru
acquisition.
Unaudited Condensed Consolidated Interim Statement of
Cash Flows
For the nine months ended
(in thousands of RUB and USD) |
|
|
|
September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
|
RUB |
RUB |
USD |
OPERATING ACTIVITIES: |
|
|
|
Net income for the period |
3,977,577 |
|
1,236,021 |
|
54,666 |
|
Adjusted for non-cash items and items not affecting cash flow
from operating activities: |
|
|
|
Depreciation and amortization |
786,239 |
|
555,497 |
|
10,806 |
|
Net finance costs |
311,348 |
|
277,629 |
|
4,279 |
|
Net foreign exchange gain |
1,433 |
|
(84,474 |
) |
20 |
|
Gain on remeasurement of previously held interest in equity
accounted investees |
(223,308 |
) |
– |
|
(3,069 |
) |
Other non-cash items |
3,163 |
|
(4,307 |
) |
43 |
|
Management incentive agreement, including social taxes |
319,349 |
|
179,009 |
|
4,389 |
|
Share grant to the Board of Directors |
16,015 |
|
16,259 |
|
220 |
|
Share of loss of equity-accounted investees, net of income tax |
8,353 |
|
38,776 |
|
115 |
|
Income tax expense |
1,216,609 |
|
570,446 |
|
16,721 |
|
Change in trade receivables and other operating assets |
(235,302 |
) |
40,568 |
|
(3,234 |
) |
Change in contract liabilities |
743,417 |
|
(52,575 |
) |
10,217 |
|
Change in trade and other payables |
769,258 |
|
65,716 |
|
10,572 |
|
Change in other liabilities |
10,532 |
|
(29,141 |
) |
145 |
|
Income tax paid |
(1,241,740 |
) |
(570,906 |
) |
(17,066 |
) |
Interest paid |
(436,987 |
) |
(289,572 |
) |
(6,006 |
) |
Net cash generated from operating activities |
6,025,956 |
|
1,948,946 |
|
82,819 |
|
INVESTING ACTIVITIES: |
|
|
|
Acquisition of subsidiaries, net of cash acquired |
(556,208 |
) |
– |
|
(7,644 |
) |
Payment of deferred consideration for the acquisition of
subsidiary |
(233,836 |
) |
– |
|
(3,214 |
) |
Acquisition of equity-accounted investee |
(61,300 |
) |
– |
|
(842 |
) |
Acquisition of intangible assets |
(82,040 |
) |
(57,570 |
) |
(1,128 |
) |
Acquisition of property and equipment |
(111,105 |
) |
(140,255 |
) |
(1,527 |
) |
Loans issues |
(73,997 |
) |
(19,235 |
) |
(1,017 |
) |
Repayment of loans issued |
3,203 |
|
– |
|
44 |
|
Interest received |
131,993 |
|
36,536 |
|
1,814 |
|
Net cash used in investing activities |
(983,290 |
) |
(180,524 |
) |
(13,514 |
) |
FINANCING ACTIVITIES: |
|
|
|
Bank loan and other loans received |
6,300 |
|
4,615,000 |
|
87 |
|
Bank loan and other borrowings origination fees paid |
(43,615 |
) |
(52,762 |
) |
(599 |
) |
Bank and other loans repaid |
(395,107 |
) |
(5,276,447 |
) |
(5,430 |
) |
Payment for lease liabilities |
(60,202 |
) |
(41,710 |
) |
(827 |
) |
Dividends paid to shareholders |
(2,073,893 |
) |
(1,885,441 |
) |
(28,503 |
) |
Dividends paid to non-controlling interest |
(106,978 |
) |
(94,214 |
) |
(1,470 |
) |
Acquisition of non-controlling interest |
(155,177 |
) |
– |
|
(2,133 |
) |
Contribution from non-controllinq interest |
– |
|
44 |
|
– |
|
Net cash used in financing activities |
(2,828,672 |
) |
(2,735,530 |
) |
(38,876 |
) |
Net (decrease)/increase in cash and cash
equivalents |
2,213,994 |
|
(967,108 |
) |
30,428 |
|
Cash and cash equivalents, beginning of period |
3,367,610 |
|
2,089,215 |
|
46,283 |
|
Effect of exchange rate changes on cash |
26,380 |
|
197,821 |
|
363 |
|
Cash and cash equivalents, end of period |
5,607,984 |
|
1,319,928 |
|
77,074 |
|
Reconciliations of non-IFRS financial measures from the
nearest comparable IFRS measures
Reconciliation of EBITDA and Adjusted EBITDA from net income,
the most directly comparable IFRS Financial measure:
(in thousands of RUB) |
For the three months ended September 30, |
For the nine months ended September 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net income |
1,768,634 |
|
585,339 |
|
3,977,577 |
|
1,236,021 |
|
Add the effect of: |
|
|
|
|
Income tax expense |
548,214 |
|
263,987 |
|
1,216,609 |
|
570,446 |
|
Net interest costs |
116,006 |
|
77,902 |
|
345,856 |
|
277,629 |
|
Depreciation and amortization |
258,950 |
|
187,187 |
|
786,239 |
|
555,497 |
|
EBITDA |
2,691,804 |
|
1,114,415 |
|
6,326,281 |
|
2,639,593 |
|
Add the effect of: |
|
|
|
|
Equity-settled awards, including related social taxes(1) |
136,269 |
|
56,929 |
|
291,509 |
|
166,963 |
|
SPO-related costs(2) |
9,904 |
|
116,120 |
|
88,025 |
|
138,307 |
|
Transaction costs related to business combinations(3) |
(2,030 |
) |
6,115 |
|
22,613 |
|
17,390 |
|
Insurance cover related to IPO(4) |
– |
|
– |
|
– |
|
54,772 |
|
Income from depository(5) |
(15,940 |
) |
(11,636 |
) |
(41,955 |
) |
(29,141 |
) |
Net foreign exchange gain (6) |
9,899 |
|
10,294 |
|
1,433 |
|
(84,474 |
) |
Gain on remeasurement of previously held interest in equity
accounted investees(7) |
– |
|
– |
|
(223,308 |
) |
– |
|
Gain on financial asset measured at fair value through profit or
loss (8) |
– |
|
– |
|
(34,508 |
) |
– |
|
Share of loss of equity-accounted investees(9) |
2,708 |
|
14,030 |
|
8,353 |
|
38,776 |
|
Adjusted EBITDA |
2,832,614 |
|
1,306,267 |
|
6,438,443 |
|
2,942,186 |
|
(1) Represents non-cash expenses related to equity-settled
awards issued in accordance with the Management Incentive
Agreement, and equity-settled share-based awards issued to board
members and related social taxes, which are payable as a result of
us becoming Russian tax resident in June 2019.(2) Reflects legal,
accounting, and other professional fees incurred in connection with
our secondary public offering that took place in June 2020 and July
2021.(3) Reflects transaction costs mostly related to the
acquisition of Zarplata.ru in December 2020 and Skillaz in March
2021.(4) Subsequent to and in connection with the IPO, in May 2019
we purchased a one-year insurance policy for $2.7 million, of which
we allocated $2.4 million to the cover related to our IPO, which we
believe does not relate to our ordinary course of business, and
$250 thousand to directors’ and officers’ insurance in the ordinary
course of business, based on the estimate of our insurance
provider. The cost of this insurance policy is expensed over the
policy term on a pro-rata time basis and thus recurs in the
reporting periods during its term. We renew our D&O policy
annually. Due to a decrease in IPO-related risks over time, we
believe that our D&O insurance expense from the second 12-month
period commenced May 9, 2020 mostly relates to our ordinary course
of business.(5) In connection with our IPO, we have signed the
Deposit Agreement, in accordance with which we shall receive income
from our depositary over the five-year period from the date of the
IPO, provided that we meet certain covenants as specified in the
Deposit Agreement. We believe that this income does not relate to
our ordinary course of business.(6) Foreign exchange gains or
losses do not relate to our operating activities.(7) Reflects gain
on remeasurement of the previously held interest in Skillaz at fair
value as at the acquisition date as of March 31, 2021.(8)
Represents change in fair value of the call option to purchase an
additional 40.01% ownership interest in Skillaz in March 2021.(9)
We believe that share of profit or loss in equity-accounted
investees is not indicative of our core operating performance.
Reconciliation of Adjusted Net Income from net income, the most
directly comparable IFRS Financial measure:
|
For the three months ended September
30, |
For the nine months ended September
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
Net income |
1,768,634 |
|
585,339 |
|
3,977,577 |
|
1,236,021 |
|
Add the effect of: |
|
|
|
|
Equity-settled awards, including related social
taxes(1) |
136,269 |
|
56,929 |
|
291,509 |
|
166,963 |
|
SPO-related costs (2) |
9,904 |
|
116,120 |
|
88,025 |
|
138,307 |
|
Transaction costs related to business combinations(3) |
(2,030 |
) |
6,115 |
|
22,613 |
|
17,390 |
|
Insurance cover related to IPO (4) |
– |
|
– |
|
– |
|
54,772 |
|
Income from depository(5) |
(15,940 |
) |
(11,636 |
) |
(41,955 |
) |
(29,141 |
) |
Net foreign exchange gain (6) |
9,899 |
|
10,294 |
|
1,433 |
|
(84,474 |
) |
Gain on remeasurement of previously held interest in equity
accounted investees(7) |
– |
|
– |
|
(223,308 |
) |
– |
|
Loss/(gain) on financial asset measured at fair value through
profit or loss (8) |
– |
|
5,782 |
|
(34,508 |
) |
8,424 |
|
Share of loss of equity-accounted investees(9) |
2,708 |
|
14,030 |
|
8,353 |
|
38,776 |
|
Amortization of intangible
assets recognized in business combinations(10) |
159,538 |
|
103,947 |
|
496,540 |
|
311,840 |
|
Tax effect on adjustments(11) |
(18,189 |
) |
3,664 |
|
(82,861 |
) |
(28,602 |
) |
Adjusted Net
Income |
2,050,793 |
|
890,584 |
|
4,503,418 |
|
1,830,276 |
|
(1) Represents non-cash expenses related to equity-settled
awards issued in accordance with the Management Incentive
Agreement, and equity-settled share-based awards issued to board
members and related social taxes, which are payable as a result of
us becoming Russian tax resident in June 2019.(2) Reflects legal,
accounting, and other professional fees incurred in connection with
our secondary public offering that took place in June 2020 and July
2021.(3) Reflects transaction costs mostly related to the
acquisition of Zarplata.ru in December 2020 and Skillaz in March
2021.(4) Subsequent to and in connection with the IPO, in May 2019
we purchased a one-year insurance policy for $2.7 million, of which
we allocated $2.4 million to the cover related to our IPO, which we
believe does not relate to our ordinary course of business, and
$250 thousand to directors’ and officers’ insurance in the ordinary
course of business, based on the estimate of our insurance
provider. The cost of this insurance policy is expensed over the
policy term on a pro-rata time basis and thus recurs in the
reporting periods during its term. We renew our D&O policy
annually. Due to a decrease in IPO-related risks over time, we
believe that our D&O insurance expense from the second 12-month
period commenced May 9, 2020 mostly relates to our ordinary course
of business.(5) In connection with our IPO, we have signed the
Deposit Agreement, in accordance with which we shall receive income
from our depositary over the five-year period from the date of the
IPO, provided that we meet certain covenants as specified in the
Deposit Agreement. We believe that this income does not relate to
our ordinary course of business.(6) Foreign exchange gains or
losses do not relate to our operating activities.(7) Reflects gain
on remeasurement of the previously held interest in Skillaz at fair
value as at the acquisition date as of March 31, 2021.(8)
Represents change in fair value of the call option to purchase an
additional 40.01% ownership interest in Skillaz and other movements
in fair values of financial assets measured at fair value through
profit and loss in 2020 that are not indicative of our underlying
business performance.(9) We believe that share of profit or loss in
equity-accounted investees is not indicative of our core operating
performance.(10) As a result of the acquisition of 100% ownership
interest in HeadHunter in 2016, acquisition of 100% ownership
interest in Zarplata in 2020 and obtaining of the control over of
Skillaz in 2021 by increasing our shareholding to 74.99% in 2021 we
recognized the following intangible assets: (i) trademark and
domain names in the amount of ₽2,010,242 thousand, (ii)
non-contractual customer relationships in the amount of ₽2,632,081
thousand, (iii) CV database in the amount of ₽720,909 thousand,
(iv) website software in the amount of ₽648,932, and (v) other
software, licenses and other in the amount of ₽3,550 thousand which
have a useful life of 10 years, 2-10 years, 2-10 years, 3-5 years
and 1 year, respectively.(11) Represents income tax on taxable or
deductible adjustments.
Reconciliation of Adjusted Operating Costs and
Expenses (Exclusive of Depreciation and Amortization) from
operating costs and expenses (exclusive of depreciation and
amortization), the most directly comparable IFRS financial
measure:
|
For the three months ended September 30, 2021 |
(in thousands of RUB) |
Personnel expenses |
Marketing expenses |
Other G&A expenses |
Total |
Operating costs and expenses (exclusive of depreciation and
amortization) |
(1,048,358 |
) |
(563,698 |
) |
(392,740 |
) |
(2,004,796 |
) |
Add the effect of: |
|
|
|
|
Equity-settled awards, including social tax(1) |
136,269 |
|
– |
|
– |
|
136,269 |
|
Transaction costs related to business combinations(3) |
(2,030 |
) |
– |
|
– |
|
(2,030 |
) |
SPO-related costs(4) |
9,904 |
|
– |
|
– |
|
9,904 |
|
Adjusted Operating
Costs and Expenses (Exclusive of Depreciation and
Amortization) |
(904,215 |
) |
(563,698 |
) |
(392,740 |
) |
(1,860,653 |
) |
|
For the three months ended September 30, 2020 |
(in thousands of RUB) |
Personnel expenses |
Marketing expenses |
Other G&A expenses |
Total |
Operating costs and expenses (exclusive of depreciation and
amortization) |
(649,869 |
) |
(234,768 |
) |
(298,183 |
) |
(1,182,820 |
) |
Add the effect of: |
|
|
|
|
Equity-settled awards, including social tax(1) |
56,929 |
|
– |
|
– |
|
56,929 |
|
Transaction costs related to business combinations(3) |
– |
|
– |
|
6,115 |
|
6,115 |
|
SPO-related costs(4) |
31,984 |
|
– |
|
84,136 |
|
116,120 |
|
Adjusted Operating
Costs and Expenses (Exclusive of Depreciation and
Amortization) |
(560,956 |
) |
(234,768 |
) |
(207,932 |
) |
(1,003,656 |
) |
(1) Represents non-cash expenses related to equity-settled
awards issued in accordance with the Management Incentive
Agreement, and equity-settled share-based awards issued to board
members and related social taxes, which are payable as a result of
us becoming a Russian tax resident in June 2019.(2) Subsequent to
and in connection with the IPO, in May 2019 we purchased a one-year
insurance policy for $2.7 million, of which we allocated $2.4
million to the cover related to our IPO, which we believe does not
relate to our ordinary course of business, and $250 thousand to
directors’ and officers’ insurance in the ordinary course of
business, based on the estimate of our insurance provider. The cost
of this insurance policy is expensed over the policy term on a
pro-rata time basis and thus recurs in the reporting periods during
its term. We renew our D&O policy annually. Due to a decrease
in IPO-related risks over time, we believe that our D&O
insurance expense from the second 12-month period commenced May 9,
2020 mostly relates to our ordinary course of business.(3) Reflects
transaction costs mostly related to the acquisition of Zarplata.ru
in December 2020 and Skillaz in March 2021.(4) Reflects legal,
accounting, and other professional fees incurred in connection with
our secondary public offerings that took place in July 2020 and
June 2021.
We believe that Net Working Capital is a useful
metric to assess our ability to service debt, fund new investment
opportunities, distribute dividends to our shareholders and assess
our working capital requirements. Calculation of our Net Working
Capital is presented in the table below:
(in thousands of RUB) |
As of September 30, 2021 |
As of December 31, 2020 |
Trade and other receivables |
212,058 |
|
69,120 |
|
Prepaid expenses and other
current assets |
271,973 |
|
179,118 |
|
Contract liabilities |
(3,622,897 |
) |
(2,785,402 |
) |
Trade and other payables |
(1,847,521 |
) |
(1,273,090 |
) |
Other current liabilities |
(104,964 |
) |
(38,758 |
) |
Net Working
Capital |
(5,091,351 |
) |
(3,849,012 |
) |
We believe that Net Debt and Net Debt to Adjusted EBITDA Ratio
are important measures that indicate our ability to repay
outstanding debt. Calculation of our Net Debt is presented in the
table below:
(in thousands of RUB) |
As of September 30, 2021 |
As of December 31, 2020 |
Loans and borrowings |
7,453,702 |
|
7,791,326 |
|
Loans and borrowings (current portion) |
483,940 |
|
485,100 |
|
Cash and cash equivalents |
(5,607,984 |
) |
(3,367,610 |
) |
Net Debt |
2,329,658 |
|
4,908,816 |
|
We calculate our Net Debt to Adjusted EBITDA Ratio by dividing
Net Debt by Adjusted EBITDA:
(in thousands of RUB, except ratio) |
As of September 30, 2021 |
As of December 31, 2020 |
Net Debt |
2,329,658 |
4,908,816 |
Adjusted EBITDA |
7,599,972 |
4,103,715 |
Net Debt to Adjusted EBITDA
Ratio |
0.3x |
1.2x |
Calculation of Adjusted EBITDA on the last twelve months basis
as of September 30, 2021:
(in thousands of RUB) |
RUB |
Adjusted EBITDA for the year ended December 31,
2020(1) |
4,103,715 |
|
Less Adjusted EBITDA for the nine months ended September 30,
2020(1) |
(2,942,186 |
) |
Add Adjusted EBITDA for the nine months ended September 30,
2021 |
6,438,443 |
|
Adjusted EBITDA on the
last twelve months basis as of September
30, 2021 |
7,599,972 |
|
(1) Beginning from the first quarter of 2021, we
modified the presentation of Adjusted EBITDA and Adjusted Net
Income, our non-IFRS measures, to exclude the impact of foreign
exchange gains and losses. Prior period amounts have been
reclassified to conform to this presentation. Please see
“Modification of the presentation of Adjusted EBITDA and Adjusted
Net Income” and “Use of Non-IFRS Financial Measures” elsewhere in
this release.
Reconciliation of EBITDA and Adjusted EBITDA for
the year ended December 31, 2020 from net income, the most directly
comparable IFRS Financial measure:
(in thousands of RUB) |
For the year ended December 31, |
|
2020 |
|
Net income |
1,885,825 |
|
Add the effect of: |
|
Income tax expense |
685,772 |
|
Net interest costs |
350,216 |
|
Depreciation and amortization |
750,558 |
|
EBITDA |
3,672,371 |
|
Add the effect of: |
|
Equity-settled awards,
including related social
taxes(1) |
249,286 |
|
SPO-related costs(2) |
151,087 |
|
Insurance cover related to
IPO(3) |
54,772 |
|
Income from depository(4) |
(41,617 |
) |
Net foreign exchange gain
(5) |
(83,030 |
) |
Transaction costs related to
business combinations(6) |
51,665 |
|
Share of loss of
equity-accounted investees(7) |
49,181 |
|
Adjusted
EBITDA |
4,103,715 |
|
(1) Represents non-cash expenses related to equity-settled
awards issued in accordance with the Management Incentive
Agreement, and equity-settled share-based awards issued to board
members and related social taxes, which are payable as a result of
us becoming Russian tax resident in June 2019.(2) Reflects legal,
accounting, and other professional fees incurred in connection with
our secondary public offering that took place in July 2020.(3)
Subsequent to and in connection with the IPO, in May 2019 we
purchased a one-year insurance policy for $2.7 million, of which we
allocated $2.4 million to the cover related to our IPO, which we
believe does not relate to our ordinary course of business, and
$250 thousand to directors’ and officers’ insurance in the ordinary
course of business, based on the estimate of our insurance
provider. The cost of this insurance policy is expensed over the
policy term on a pro-rata time basis and thus recurs in the
reporting periods during its term. We renew our D&O policy
annually. Due to a decrease in IPO-related risks over time, we
believe that our D&O insurance expense from the second 12-month
period commenced May 9, 2020 mostly relates to our ordinary course
of business.(4) In connection with our IPO, we have signed the
Deposit Agreement, in accordance with which we shall receive income
from our depositary over the five-year period from the date of the
IPO, provided that we meet certain covenants as specified in the
Deposit Agreement. We believe that this income does not relate to
our ordinary course of business.(5) Foreign exchange gains or
losses do not relate to our operating activities.(6) Reflects
transaction costs related to the acquisition of Zarplata.ru in
December 2020.(7) We believe that share of profit or loss in
equity-accounted investees is not indicative of our core operating
performance.
Grafico Azioni HeadHunter (NASDAQ:HHR)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni HeadHunter (NASDAQ:HHR)
Storico
Da Lug 2023 a Lug 2024