HeadHunter (HHR) 6-K HeadHunter Group PLC Announces First Quarter 2019 Financial Results

Exhibit 99.1

HeadHunter Group PLC Announces First Quarter 2019 Financial Results

NICOSIA, Cyprus, June 4, 2019 – HeadHunter Group PLC (Nasdaq: HHR) announced today its financial results for the quarter ended March 31, 2019. As used below, references to “we,” “our,” “us” or the “Company” or similar terms shall mean HeadHunter Group PLC.

First Quarter 2019 Financial and Operational Highlights

(in millions of RUB(1) and USD(2))	Three months ended March 31, 2019			Three months ended March 31, 2018			Change(3)			Three months ended March 31, 2019
	RUB			RUB						USD(4)
Revenue		1,678			1,274			31.8	%		25.9
Russia Segment Revenue		1,556			1,189			30.8	%		24.0
Net Income (Loss)		239			(14	)		n/m			3.7
Net Income Margin, %		14.2	%		—			n/m
Adjusted EBITDA		774			440			75.7	%		12.0
Adjusted EBITDA Margin, %		46.1	%		34.6	%		11.5 ppts
Adjusted Net Income		373			131			184.7	%		5.8
Adjusted Net Income Margin, %		22.2	%		10.3	%		11.9 ppts

(1) “RUB” or “P” denote Russian Ruble.

(2) “USD” or “$” denote U.S. Dollar.

(3) Percentage movements throughout the document may differ due to rounding.

(4) Dollar translations 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 March 31, 2019 (RUB 64.7347 to USD 1).

• Revenue up 31.8% primarily due to the increase in revenue in our Russia segment. Russia segment revenue up 30.8% mainly driven by the increase in the number of paying customers in Small and Medium Accounts and the increase in average revenue per customer (“ARPC”) in Key Accounts in Moscow and St. Petersburg.

• Net Income up toP239 million fromP(14) million net loss driven by the increase in revenue and timing of our marketing expenses, offset by the increase in income tax due to the increase in taxable profit.

• Adjusted EBITDA up 75.7% and Adjusted EBITDA Margin up to 46.1% from 34.6% primarily due to the increase in revenue and timing of our marketing expenses.

• Adjusted Net Income up 184.7% and Adjusted Net Income Margin up to 22.2% from 10.3% driven by the increase in revenue and timing of our marketing expenses, offset by the increase in income tax due to the increase in taxable profit.

(in millions of RUB and USD)	As of March 31, 2019			As of December 31, 2018			Change			As of March 31, 2019
	RUB			RUB						USD
Net Working Capital		(2,672	)		(2,623	)		1.9	%		(41.3	)
Net Debt		3,587			3,577			0.3	%		55.4
Net Debt to Adjusted EBITDA(1) Ratio		1.1x			1.3x

(1) For the purposes of calculation of this ratio as of March 31, 2019, Adjusted EBITDA is calculated on the last twelve months basis.

1

• Net Working Capital as of March 31, 2019 remained flat compared to December 31, 2018, as the increase in contract liabilities over the first quarter of 2019 due to an increase in sales was offset by a decrease in contract liabilities from the utilization of prepayments for annual subscriptions received from our customers in the fourth quarter of 2018.

• Net Debt remained flat as net cash generated from operating activities ofP375 million was offset by the acquisition of a 25.01% ownership interest in LLC “Skillaz” forP232 million and capital expenditures.

• Net Debt to Adjusted EBITDA Ratio declined from 1.3x to 1.1x due to an increase in Adjusted EBITDA.

“We are pleased with the operational and financial results that the Company has achieved in the first quarter of 2019,” said Mikhail Zhukov, CEO of HeadHunter Group PLC.

“HeadHunter Group’s strategy is to drive growth in Russian regions, as well as in Small and Medium Accounts. To support these priorities, the Company has recently carried out significant organizational capability upgrades. We are happy to see strong customer base expansion in both areas, while at the same time, increasing ARPC across all customer segments.

We continue making significant investments into our brand and into driving new users to our platform, which now holds over 38 million CVs. We are also introducing new solutions, allowing our clients to source candidates outside of our main platform, which gives our clients access to even more relevant candidates and makes recruiting through HeadHunter even more efficient.

The Company is delivering on its ambitious technology road map, with a particular focus on mobile platforms. In the first quarter of 2019, over 77% of our traffic came via mobile devices, and more than half of our traffic came from visitors who only used our mobile platform.

We are happy to kick off our life as a public company with this strong set of quarterly results, and we are excited to explore the opportunity ahead of us to the benefit of our shareholders.”

Operating Segments

For management purposes, we are organized into operating segments based on the geography of our operations. Our operating segments include “Russia,” “Belarus,” “Kazakhstan” and other countries. As each segment, other than Russia, individually comprises less than 10% of our revenue, for reporting purposes, we combine all segments other than Russia into the “Other segments” category.

Seasonality

Revenue

We generally do not experience substantial seasonal fluctuations in demand for our services and our revenue remains relatively stable throughout each quarter. However, as our customers are predominately businesses and use our services mostly on business days, 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 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 the quarter. Accordingly, our first quarter revenue is typically slightly lower than in the other quarters. For example, our first quarter revenue in our Russia segment in 2017 and 2018 was 21.1% and 20.9%, respectively, of total Russia segment revenue for the year.

2

The number of business days in a quarter may also be affected by calendar layout in a specific year; also, 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 the year would remain the same. This affects our revenue in a particular quarter, andyear-on-year revenue growth rate for that quarter, if the allocation of business days in the comparable period was different. In addition, when a calendar layout in a specific year provides for several consecutive holidays, or 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 2017 to 2019. In 2019, the total number of working days is the same as in 2018, but there is 1 business day more, 2 business days less and 1 business day more in the first quarter, second quarter and third quarter, respectively, and the same number of business days in the fourth quarter:

	Number of business days						As % of total business days per year
	2019		2018		2017		2019			2018			2017
First quarter		57		56		57		23.1	%		22.7	%		23.1	%
Second quarter		59		61		61		23.9	%		24.7	%		24.7	%
Third quarter		66		65		65		26.7	%		26.3	%		26.3	%
Fourth quarter		65		65		64		26.3	%		26.3	%		25.9	%
Total Year		247		247		247		100.0	%		100.0	%		100.0	%

Therefore, in the first quarter of 2019, we saw a positive impact from the additional business days in the quarter as compared to the first quarter of 2018. However, an opposite effect is expected in the second quarter of 2019 as compared to the second quarter of 2018.

Operating costs and expenses (exclusive of depreciation and amortization)

Most of our expenses are not linked directly to our revenue. Our operating costs and expenses (exclusive of depreciation and amortization) consist primarily of personnel and marketing expenses. Personnel and marketing expenses cumulatively accounted for 77.4% and 78.9% of our total operating costs and expenses (exclusive of depreciation and amortization) for the years ended December 31, 2018 and December 31, 2017, respectively.

Marketing expenses are more volatile in terms of allocation to quarters, which is affected by the decisions we make about 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. Costs and expenses, such as share-based compensations or foreign exchange gains or losses, can be significantly concentrated in a particular quarter.

The first quarter segment external expenses in our Russia segment in 2017 and 2018 were 23.0% and 25.5%, respectively, of the total Russia segment external expenses for the year.

Net income and Adjusted EBITDA

Even though our revenue remains relatively stable throughout each quarter, the seasonal revenue fluctuations 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 percentage of revenue are usually higher in first quarter due to lower revenue. For example, our Adjusted EBITDA Margin was 36.4% for the first quarter of 2018, compared to 46.7% for the full year 2018. Our profitability is also affected by our decisions on timing of expenses, as described above.

3

Contract liabilities

Our contract liabilities are 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 and prepay 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 and our contract liabilities usually increase substantially higher during the fourth quarter. For example, our contract liabilities as of March 31, June 30, September 30 and December 31, 2018 wereP1,607 million,P1,548 million,P1,553 million andP2,073 million, respectively.

Net cash generated from operating activities

Our net cash generated from operating activities is affected by seasonal fluctuations of 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 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 discussed above. As our contract liabilities are usually higher in the fourth quarter, our net working capital is usually the lowest in the fourth quarter. For example, our net working capital of March 31, June 30, September 30 and December 31, 2018 wasP(2,044) million,P(2,048) million,P(2,036) million andP(2,623) million, respectively.

First Quarter 2019 Results

Our revenue wasP1,678 million for the three months ended March 31, 2019 compared toP1,274 million for the three months ended March 31, 2018. Revenue for the three months ended March 31, 2019 increased byP405 million, or 31.8%, compared to the three months ended March 31, 2018, primarily due to the increase in revenue in our Russia segment. Revenue in our Russia segment wasP1,556 million for the three months ended March 31, 2019 compared toP1,189 million for the three months ended March 31, 2018. Revenue in our Russia segment increased byP367 million, or 30.8%. This was primarily due to the growth in the number of paying Small and Medium Accounts by 73.8% in the other regions of Russia and by 15.9% in Moscow and St. Petersburg and the increase in ARPC in Key Accounts in Moscow and St. Petersburg by 17.2%, driven by price increases and an increase in the usage of our services by this type of customer.

The following table breaks down revenue by product.

	For the three months ended March 31,
(in thousands of RUB)	2019		2018		Change
Bundled Subscriptions		503,885		421,398		19.6	%
CV Database Access		385,647		302,784		27.4	%
Job Postings		641,871		435,085		47.5	%
Other value-added services		147,034		114,409		28.5	%
Total revenue		1,678,437		1,273,676		31.8	%

4

The following table sets forth the revenue broken down by type of customer and region.

	For the three months ended March 31,
(in thousands of RUB)	2019		2018		Change
Key Accounts in Russia
Moscow and St. Petersburg		437,363		364,083		20.1	%
Other regions of Russia		133,739		107,761		24.1	%
Subtotal		571,102		471,844		21.0	%
Small and Medium Accounts in Russia
Moscow and St. Petersburg		567,219		455,813		24.4	%
Other regions of Russia		336,770		194,155		73.5	%
Subtotal		903,989		649,968		39.1	%
Foreign customers of Russia segment		14,108		10,670		32.2	%
Other customers in Russia		66,316		56,464		17.4	%
Total for “Russia” operating segment		1,555,515		1,188,946		30.8	%
Other segments		122,922		84,730		45.1	%
Total revenue		1,678,437		1,273,676		31.8	%

5

The following table sets forth the number of paying customers and ARPC, which we calculate by dividing revenue by the number of paying customers for the period, for the periods indicated:

	For the three months ended March 31,
	2019		2018		Change
Number of paying customers
Russia segment
Key Accounts
Moscow and St. Petersburg		4,694		4,581		2.5	%
Other regions of Russia		4,444		3,580		24.1	%
Key Accounts, total		9,138		8,161		12.0	%
Small and Medium Accounts
Moscow and St. Petersburg		58,999		50,904		15.9	%
Other regions of Russia		69,120		39,775		73.8	%
Small and Medium Accounts, total		128,119		90,679		41.3	%
Foreign customers of Russia segment		1,622		856		89.5	%
Total for “Russia” operating segment		138,879		99,696		39.3	%
Other segments, total		10,918		7,365		48.2	%
Total number of paying customers		149,797		107,061		39.9	%
ARPC (in RUB)
Russia segment
Key Accounts
Moscow and St. Petersburg		93,175		79,477		17.2	%
Other regions of Russia		30,094		30,101		0.0	%
Key Accounts, total		62,497		57,817		8.1	%
Small and Medium Accounts
Moscow and St. Petersburg		9,614		8,954		7.4	%
Other regions of Russia		4,872		4,881		(0.2	)%
Small and Medium Accounts, total		7,056		7,168		(1.6	)%
Other segments, total		11,259		11,504		(2.1	)%

• Our customer base has continued to expand as penetration of online recruitment in Russian regions outside of Moscow and St. Petersburg and Small and Medium Accounts continues to grow.

• In Key Accounts in Moscow and St. Petersburg, we increased ARPC by 17.2% in the first quarter of 2019, driven by the increase in prices (e.g., 10% on average for subscriptions and 18% for a single “Standard” type job posting), the increase in usage of job postings by this category of customers and reducing discounts. ARPC in other customer segments was affected by price increases discussed above and the increased usage of services per customer, offset by the accelerated intake of new customers who, as evidenced by historical statistics, initially have a lower ARPC. For example, in Other regions of Russia, in Key Accounts and Small and Medium Accounts, ARPC remained flat; however, the ARPC of customers acquired before January 1, 2018 in these customer segments has increased by 12% and 18%, respectively.

6

Operating Costs and Expenses (exclusive of depreciation and amortization)

Operating costs and expenses (exclusive of depreciation and amortization) wereP934 million for the three months ended March 31, 2019 compared toP894 million for the three months ended March 31, 2018. Operating costs and expenses (exclusive of depreciation and amortization) increased byP39 million, or 4.4%, compared to the three months ended March 31, 2018.

(in thousands of RUB)	For the three months ended March 31,
	2019		2018		Change
Personnel expenses		480,161		425,138		12.9	%
Marketing expenses		257,745		286,150		(9.9	)%
Other general and administrative expenses:
Subcontractors and other expenses related to provision of services		44,875		44,888		0.0	%
Office rent and maintenance		44,335		53,742		(17.5	)%
Professional services		80,851		62,187		30.0	%
Hosting and other website maintenance		8,712		6,638		31.2	%
Other operating expenses		16,861		15,579		8.2	%
Operating costs and expenses (exclusive of depreciation and amortization)		933,540		894,322		4.4	%

Our operating expenses were flat or decreased as percentage of revenue for the three months ended March 31, 2019 compared to the three months ended March 31, 2018:

	For the three months ended March 31,
	2019			2018			Change
Personnel expenses		28.6	%		33.4	%		(4.8	)%
Marketing expenses		15.4	%		22.5	%		(7.1	)%
Other general and administrative expenses:
Subcontractors and other expenses related to provision of services		2.7	%		3.5	%		(0.8	)%
Office rent and maintenance		2.6	%		4.2	%		(1.6	)%
Professional services		4.8	%		4.9	%		(0.1	)%
Hosting and other website maintenance		0.5	%		0.5	%		(0.0	)%
Other operating expenses		1.0	%		1.2	%		(0.2	)%
Operating costs and expenses (exclusive of depreciation and amortization)		55.6	%		70.2	%		(14.6	)%

Personnel expenses

Personnel expenses increased byP55 million, or 12.9%, for the three months ended March 31, 2019 compared to the three months ended March 31, 2018. The main factors that contributed to the increase in personnel expenses are: (i) hiring 107 people during the second, third and fourth quarters of 2018 and the first quarter of 2019 primarily in our development, sales and production teams in our Russia segment; and (ii) the indexation of wages in the first quarter of 2019. These changes were partially offset by the decrease of employee expenses under our management incentive agreement.

7

Marketing expenses

Marketing expenses decreased byP28 million, or 9.9%, for the three months ended March 31, 2019 compared to the three months ended March 31, 2018. The decrease in marketing expenses was primarily due to the decrease in TV marketing expenses as the result of a lower share of the total annual marketing budget allocated to the first quarter this year.

Other general and administrative expenses

Our office rent and maintenance expenses decreased by 17.5% toP44 million for the three months ended March 31, 2019 compared to the three months ended March 31, 2018. At January 1, 2019, we initially adopted IFRS 16, the new accounting standard that introduced a single,on-balance sheet accounting model for lessees. As a result, we, as a lessee, have recognizedright-of-use assets representing our rights to use the underlying assets and lease liabilities representing our obligation to make lease payments. We have applied IFRS 16 using the modified retrospective approach. Accordingly, the comparative information presented for 2018 has not been restated and is presented, as previously reported, under IAS 17 and related interpretations. We recognizedP18,455 thousand of depreciation charges andP8,777 thousand of interest costs from leases in the first quarter of 2019.

Our professional services increased by 30.0% toP81 million for the three months ended March 31, 2019 as a result of increasedIPO-related expenses.

Net foreign exchange loss

Net foreign exchange loss wasP23 million for the three months ended March 31, 2019, an increase ofP22 million, compared to aP1 million loss for the three months ended March 31, 2018. The net foreign exchange loss for the three months ended March 31, 2019 reflects the appreciation of the Russian ruble to U.S. Dollar during the first quarter of 2019, as we decided in 2018 to convert substantial Russian Ruble-denominated cash amount into U.S. Dollar in light of a dividend we were considering to pay at that time, which was not paid.

Depreciation and amortization

Depreciation and amortization wereP165 million for the three months ended March 31, 2019 compared toP144 million for the three months ended March 31, 2018. Depreciation and amortization increased byP21 million, or 14.6%, primarily due to a depreciation charge ofP18 million related toright-of-use assets recognized as of January 1, 2019 under the new standard IFRS 16 “Leases.” (See “Other general and administrative expenses”).

Finance income and costs

Finance income wasP26 million for the three months ended March 31, 2019 compared toP19 million for the three months ended March 31, 2018. Finance income increased byP7 million, or 34.6%, due to an increase in available cash balances that were deposited.

Finance costs wereP168 million for the three months ended March 31, 2019, and they remained flat compared toP166 million for the three months ended March 31, 2018.

8

Income tax expense

Income tax expense wasP177 million for the three months ended March 31, 2019 compared toP102 million for the three months ended March 31, 2018. The increase ofP75 million was primarily due to the increase of profit before income tax fromP88 million in the three months ended March 31, 2018 toP416 million in the three months ended March 31, 2019.

The decrease in the effective tax rate from 115.4% for the three months ended March 31, 2018 to 42.5% for the three months ended March 31, 2019 was caused mainly by the decrease in the proportion ofnon-deductible expenses and an unrecognized deferred tax asset relative to the profit before income tax. The increase of the effective tax rate from 33.0% for the year ended December 31, 2018 to 42.5% for the three months ended March 31, 2019 was primarily due to a tax expense associated with our tax restructuring.

Net income (loss)

Net income wasP239 million for the three months ended March 31, 2019 compared toP(14) million net loss for the three months ended March 31, 2018. Net income increased byP252 million compared with the three months ended March 31, 2018, primarily due to the reasons described above.

Adjusted EBITDA

Adjusted EBITDA wasP774 million for the three months ended March 31, 2019 compared toP440 million for the three months ended March 31, 2018, and it increased byP333 million primarily due to the increase in revenue, offset by the increase in operating expenses (exclusive of depreciation and amortization) and the net foreign exchange loss.

Adjusted Net Income

Adjusted Net Income wasP373 million for the three months ended March 31, 2019 compared toP131 million for the three months ended March 31, 2018. Adjusted Net Income increased byP242 million compared with the three months ended March 31, 2018, primarily due to the reasons described above.

Cash Flows

Net cash generated from operating activities

For the three months ended March 31, 2019, net cash generated from operating activities wasP375 million compared toP175 million for the three months ended March 31, 2018. The change between the periods ofP200 million was primarily driven by an increase in sales, which resulted in an increase in net income (adjusted fornon-cash items and items not affecting cash flow from operating activities) and an increase in trade payables (primarily due to increase in payables to employees and suppliers). These changes were partially offset by an increase in income taxes paid due to an increased tax base and a decrease in the movement of contract liabilities in the three months ended March 31, 2019 as compared to three months ended March 31, 2018.

Net cash used in investing activities

For the three months ended March 31, 2019, net cash used in investing activities wasP290 million compared toP52 million for the three months ended March 31, 2018. The change between the periods ofP238 million was primarily due to the acquisition of a 25.01% ownership interest in LLC “Skillaz.”

9

Net cash used in financing activities

For the three months ended March 31, 2019, net cash used in financing activities wasP574 million compared toP229 million for the three months ended March 31, 2018. The change between these periods was primarily due to a loan repayment ofP270 million to the associate of anon-controlling shareholder and an increase in the bank loan repayments fromP200 million in the three months ended March 31, 2018 toP245 million in the three months ended March 31, 2019 in accordance with the repayment schedule.

Capital Expenditures

Our additions to property and equipment and intangible assets in the three months ended March 31, 2019 wereP85 million, an increase ofP16 million compared toP69 million for the three months ended March 31, 2018, primarily due toP34 million in office renovation costs in three months ended March 31, 2019, as we are planning to redesign our offices in Moscow and Yaroslavl in 2019 and have allocated a budget ofP220 toP250 million for this purpose in this year, partially offset byP41 million acquisition of Job.ru CV database from Pronto Media Holding LLC in the three months ended March 31, 2018.

Financial Outlook

The following forward-looking statement reflects our expectations as of June 4, 2019:

Based on our recent performance, we currently expect our revenue to grow in the range of 27% to 30% year-over-year and our Adjusted EBITDA Margin to be between 48% and 50% for the year 2019.

This outlook reflects our current view based on the trends that we see at this time and may change in light of market and economic developments in the business sectors and jurisdictions in which we operate.

Dividend

Our Board of Directors has approved dividend of $0.36 per share, representing approximately 75% of our Adjusted Net Income for the year ended December 31, 2018. The dividend record date is June 14, 2019, and we intend to pay the dividend on or before July 19, 2019.

We are in the process of changing the strategic and day-to-day place of management of HeadHunter Group PLC from Cyprus to Russia, which will result in obtaining a Russian tax residency status. As a Russian tax resident, we will be subject to the Russian Tax Code requirements and withhold a tax on dividends at a generally applicable rate of 15%.

A holder of our ADSs may apply for a lower tax rate under a double taxation treaty (“DTT”) in effect, signed between a country of a shareholder and the Russian Federation. In order to apply for a lower tax rate, a shareholder will need to provide us with certain documents confirming ownership of our ADSs, its’ tax residence and other documents. We aim to advise you further in regard to dividend taxation procedures ahead of the payment date. Provisions of a DTT may include limitations on application of DTT benefits, which you shall clarify with your tax advisor.

Conference Call Information

We will host a conference call and webcast to discuss our results at 8:00 a.m. U.S. Eastern Time (3:00 p.m. Moscow time, 1:00 p.m. London time) the same day.

First Quarter 2019 Financial Results Conference Call

Tuesday, June 4th, 2019

8:00 a.m. U.S. Eastern Time (3:00 p.m. Moscow time, 1:00 p.m. London time)

To participate in the conference call, please use the following details:

Standard International:	+44 (0) 2071 928000
UK (local):	+44 (0) 844 571 8892
UK (toll free):	0800 376 7922
USA (local):	+1631 510 7495
USA (toll free):	1866 966 1396
Russian Federation (local):	+7 495 249 9849
Russian Federation (toll free):	810 800 235 75011
Conference ID:	6777247

10

Webcast:

https://edge.media-server.com/m6/p/hdiq5op3

About HeadHunter Group PLC

HeadHunter is the leading online recruitment platform in Russia and CIS 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.

11

USE OFNON-IFRS FINANCIAL MEASURES

To supplement our condensed consolidated interim financial information, which is prepared and presented in accordance with IAS 34 Interim Financial Reporting, we present the followingnon-IFRS (denotes the International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”)) financial measures: Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin. 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 thesenon-IFRS financial measures, please see the tables captioned “Reconciliations ofnon-IFRS financial measures to the nearest comparable IFRS measures,” included following the accompanying financial tables. We define the variousnon-IFRS financial measures we use as follows:

• Adjusted EBITDA as net income (loss) plus: (1) income tax expense; (2) net interest income or expense; (3) depreciation and amortization; (4) transaction costs related to business combinations; (5) gain on the disposal of subsidiary; (6) expenses related to equity-settled awards and(7) IPO-related costs.

• Adjusted Net Income as net income (loss) plus: (1) transaction costs related to the acquisition of the outstanding equity interests of Headhunter FSU Limited by HeadHunter Group PLC from Mail.Ru Group Limited (the “Acquisition”); (2) gain on the disposal of subsidiary; (3) transaction costs related to the disposal of subsidiary; (4) amortization of intangible assets recognized upon the Acquisition; (5) the tax effect of the adjustment described in (4) and (6) (gain)/loss related to the remeasurement and expiration of a tax indemnification asset.

• Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

• Adjusted Net Income Margin as Adjusted Net Income divided by revenue.

Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin are used by our management to monitor the underlying performance of the business and its operations. Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin 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 and Adjusted Net Income Margin as reported by us to Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin as reported by other companies. Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin 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 and Adjusted Net Income Margin 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 or Adjusted Net Income Margin 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 and Adjusted Net Income Margin 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 and Adjusted Net Income Margin do not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments,

• Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin do not reflect changes in, or cash requirements for, our working capital needs, and

12

• the fact that other companies in our industry may calculate Adjusted EBITDA, Adjusted Net Income, Adjusted EBITDA Margin and Adjusted Net Income Margin differently than we do, which limits their usefulness as comparative measures.

The tables at the end of this release provide detailed reconciliations of eachnon-IFRS financial measure we use to the most directly comparable IFRS financial measure.

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 historicalnon-IFRS financial measures, the amounts of which, could be material.

13

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 fiscal year ending December 31, 2019, 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, 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 final prospectus pursuant to Rule 424B filed with the SEC on May 9, 2019 as such factors may be updated from time to time in our other filings with the U.S. Securities and Exchange Commission (“SEC”), which is on file with the SEC and is available on the SEC website atwww.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.

14

Unaudited Condensed Consolidated Interim Statement of Income (Loss) and Comprehensive Income (Loss)

For the three months ended

(in thousands of RUB and USD, except per share amounts)

	March 31, 2018*			March 31, 2019			March 31, 2019
	RUB			RUB			USD
Revenue		1,273,676			1,678,437			25,928
Operating costs and expenses (exclusive of depreciation and amortization)		(894,322	)		(933,540	)		(14,421	)
Depreciation and amortization		(144,032	)		(165,104	)		(2,550	)
Operating income		235,322			579,793			8,956
Finance income		19,468			26,207			405
Finance costs		(165,866	)		(167,830	)		(2,593	)
Net foreign exchange loss		(674	)		(22,641	)		(350	)
Profit before income tax		88,250			415,529			6,419
Income tax expense		(101,809	)		(176,782	)		(2,731	)
Net (loss)/income for the period		(13,559	)		238,747			3,688
Attributable to:
Owners of the Company		(25,115	)		209,391			3,235
Non-controlling interest		11,556			29,356			453
Comprehensive income/(loss)
Items that are or may be reclassified subsequently to profit or loss:
Foreign currency translation differences		9,292			(23,925	)		(370	)
Total comprehensive (loss)/income, net of tax		(4,267	)		214,822			3,318
Attributable to:
Owners of the Company		(16,256	)		186,770			2,885
Non-controlling interest		11,989			28,052			433
(Loss)/earnings per share
Basic and diluted (in Russian Roubles per share)		(0.50	)		4.19			0.06

^*  The Group has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under the approach, comparative information is not restated.

15

Unaudited Condensed Consolidated Interim Statement of Financial Position

As at

(in thousands of RUB and USD)	December 31, 2018 *			March 31, 2019			March 31, 2019
	RUB			RUB			USD
Non-current assets
Goodwill		6,989,255			6,968,858			107,653
Intangible assets		3,154,605			3,056,811			47,221
Property and equipment		133,810			168,969			2,610
Right-of-use assets		—			332,140			5,131
Deferred tax assets		92,094			112,814			1,743
Othernon-current assets		3,304			237,452			3,668
Totalnon-current assets		10,373,068			10,877,044			168,025
Current assets
Trade and other receivables		40,718			53,337			824
Prepaid expenses and other current assets		64,386			116,118			1,794
Cash and cash equivalents		2,861,110			2,339,012			36,132
Total current assets		2,966,214			2,508,467			38,750
Total assets		13,339,282			13,385,511			206,775
Equity
Share capital		8,547			8,547			132
Share premium		1,729,400			1,734,643			26,796
Foreign currency translation reserve		(66,957	)		(89,578	)		(1,384	)
Retained earnings		1,302,981			1,512,372			23,363
Total equity attributable to owners of the Company		2,973,971			3,165,984			48,907
Non-controlling interest		29,449			9,138			141
Total equity		3,003,420			3,175,122			49,048
Non-current liabilities
Loans and borrowings		5,203,692			4,937,807			76,278
Lease liabilities		—			279,360			4,315
Deferred tax liabilities		1,070,240			1,023,091			15,804
Trade and other payables		13,967			7,487			116
Totalnon-current liabilities		6,287,899			6,247,745			96,513
Current liabilities
Contract liabilities		2,072,640			2,107,348			32,554
Trade and other payables		655,877			734,119			11,340
Loans and borrowings (current portion)		1,233,924			987,798			15,259
Lease liabilities (current portion)		—			58,242			900
Income tax payable		85,522			75,137			1,161
Total current liabilities		4,047,963			3,962,644			61,214
Total liabilities		10,335,862			10,210,389			157,727
Total equity and liabilities		13,339,282			13,385,511			206,775

^*  The Group has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under the approach, comparative information is not restated.

16

Unaudited Condensed Consolidated Interim Statement of Cash Flows

For the three months ended

March 31, 2018*			March 31, 2019			March 31, 2019
(in thousands of RUB and USD)	RUB			RUB			USD
OPERATING ACTIVITIES:
Net income/(loss) for the period		(13,559	)		238,747			3,688
Adjusted fornon-cash items and items not affecting cash flow from operating activities:
Depreciation and amortization		144,032			165,104			2,550
Net finance costs		146,398			141,623			2,188
Net foreign exchange loss		674			22,641			350
Othernon-cash items		(508	)		224			3
Management incentive agreement		26,552			8,975			139
Income tax expense		101,809			176,782			2,731
Change in trade receivables and other operating assets		(86,155	)		(64,415	)		(995	)
Change in contract liabilities		134,341			40,090			619
Change in trade and other payables		10,550			63,714			984
Income tax paid		(127,473	)		(253,881	)		(3,922	)
Interest paid		(161,484	)		(164,839	)		(2,546	)
Net cash generated from operating activities		175,177			374,765			5,789
INVESTING ACTIVITIES:
Acquisition of equity-accounted investment		—			(232,000	)		(3,584	)
Acquisition of intangible assets		(57,283	)		(31,848	)		(492	)
Acquisition of property and equipment		(11,518	)		(52,708	)		(814	)
Interest received		16,518			26,081			403
Net cash used in investing activities		(52,283	)		(290,475	)		(4,487	)
FINANCING ACTIVITIES:
Bank and other loans repaid		(200,000	)		(515,000	)		(7,956	)
Payment for lease liabilities		—			(11,391	)		(176	)
Dividends paid tonon-controlling interest		(28,525	)		(47,550	)		(735	)
Net cash used in financing activities		(228,525	)		(573,941	)		(8,866	)
Net decrease in cash and cash equivalents		(105,631	)		(489,651	)		(7,564	)
Cash and cash equivalents, beginning of period		1,416,008			2,861,110			44,197
Cash and cash equivalents included in assets held for sale, beginning of period		10,801			—			—
Effect of exchange rate changes on cash		(1,558	)		(32,447	)		(501	)
Cash and cash equivalents, end of period, including cash balance classified in assets held for sale		1,319,620			2,339,012			36,132
Cash classified in assets held for sale		(13,749	)		—			—
Cash and cash equivalents, end of period		1,305,871			2,339,012			36,132

* The Group has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under the approach, comparative information is not restated.

17

Reconciliations ofnon-IFRS financial measures to the nearest comparable IFRS measures

Reconciliation of EBITDA and Adjusted EBITDA to net income (loss), the most directly comparable IFRS financial measure:

(in thousands of RUB)	For the three months ended March 31,					For the year ended December 31,
	2018			2019		2018
Net (loss)/income		(13,559	)		238,747		1,032,845
Add the effect of:
Income tax expense		101,809			176,782		509,602
Net interest costs		146,398			141,623		553,724
Depreciation and amortization		144,032			165,104		586,131
EBITDA		378,680			722,256		2,682,302
Add the effect of:
Gain on the disposal of a subsidiary(1)		—			—		(6,131	)
Equity-settled awards(2)		19,007			5,243		68,776
IPO-related costs(3)		42,473			46,027		110,043
Adjusted EBITDA		440,160			773,526		2,854,990

(1) On March 29, 2017, the Company sold its 100% subsidiary, CV Keskus, to a third party and recognized a one-off gain on disposal.

(2) Representsnon-cash expenses related to equity-settled awards issued in accordance with our management incentive agreement.

(3) In connection with our initial public offering, we incurred expenses related to legal, accounting and other professional fees that are not indicative of our ongoing expenses.

Reconciliation of Adjusted Net Income to net income, the most directly comparable IFRS financial measure:

(in thousands of RUB)	For the three months ended March 31,
	2018			2019
Net (loss)/income		(13,559	)		238,747
Add the effect of:
Equity-settled awards		19,007			5,243
IPO-related costs		42,473			46,027
Amortization of intangible assets recognized upon the Acquisition(3)		103,947			103,947
Tax effect on adjustments(4)		(20,789	)		(20,789	)
Adjusted Net Income		131,079			373,175

(3) As a result of the Acquisition, we recognized intangible assets: (i) trademark and domain names in the amount ofP1,634,306 thousand,(ii) non-contractual customer relationships in the amount ofP2,064,035 thousand and (iii) CV database in the amount ofP618,601 thousand, which have a useful life of 10 years,5-10 years and 10 years, respectively.

(4) Calculated by applying the statutory Russian tax rate of 20% to amortization of the assets recognized upon the Acquisition.

18

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 March 31, 2019			As of December 31, 2018
Trade and other receivables		53,337			40,718
Prepaid expenses and other current assets		116,118			64,386
Contract liabilities		(2,107,348	)		(2,072,640	)
Trade and other payables		(734,119	)		(655,877	)
Net Working Capital		(2,672,012	)		(2,623,413	)

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 March 31, 2019			As of December 31, 2018
Loans and borrowings		4,937,807			5,203,692
Loans and borrowings (current portion)		987,798			1,233,924
Cash and cash equivalents		(2,339,012	)		(2,861,110	)
Net Debt		3,586,593			3,576,506

Calculation of Adjusted EBITDA for the last twelve months as of March 31, 2019:

(in thousands of RUB)
Adjusted EBITDA for the year ended December 31, 2018	2,854,990
Less Adjusted EBITDA for the three months ended March, 2018	(440,160	)
Add Adjusted EBITDA for the three months ended March, 2019	773,526
Adjusted EBITDA on the last twelve months basis as of March 31, 2019	3,188,356

19