HHR - Earnings call transcript Q1 2021

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Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2021 Financial Results Conference call. At this time, all participants are in listen-only mode. After the speaker presentation, there will be the question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now speaker hand today would to conference I first your Roman Instructions] like the to over [Operator Safiyulin. Please, go ahead, sir.

Roman Safiyulin

everyone, call. Thank quarter Hello, and HeadHunter to you. Group XXXX earnings welcome first

Zhukov, at a On today issued XXXX website Moiseev, Chief through release Strategy Officer; the Financial results containing copy earlier obtained Chief Executive Dmitry our our A we Mikhail was our Sergienkov, call and may Officer. Officer; be our investor.hh.ru. have our Grigorii and Chief today press quarter first

will results I through results obligation these to Safe materially today. Now speak such walk quickly the or today to statements. update contain publicly the made by only Harbor you of will We discussion our statements. undertake forward-looking statements. statements as revise And predicted from may no Today's or implied statements. forward-looking Actual differ expectations

the a year Factors the factors risk that some could in see Form section for of our on For actual please XXXX. Risk to December Report XX, XX-F discussion differ of results cause ended Annual the

most is During be earnings and the non-IFRS website in comparable we referring These non-IFRS on measures. investor.hh.ru. not financial are slide to measures the measures the each issued financial our with at will call, measures the financial is presentation, IFRS. IFRS available Reconciliation accordance we non-IFRS provided to of which in some this today directly release prepared of

Please, go Now, I remarks. will turn to ahead. opening the call for over Mikhail

Mikhail Zhukov

crisis. and of business how Roman, our good A much ago point imagine this great emerge you, Thank couldn't the everyone. from would were and year we afternoon, uncertainty at stronger

to beyond trends up, year operating budgets a tech company ever-increasing towards recruitment this solid our for resulting X we right results. labor. skills, platform active of HR employers keep effective to driving the we we ownership further today, Positive result vacancies of job now. set deliver have business in consolidated confidence Recently, advertising. is supply, over why see expansion So financial short believe especially in million environment In allocate would And we on in channels. competition business' happy that and our this most market job our are which of

upgrading as trends and paid reward Finally, XXXX a be would XX% guidance are also I our significantly fundamental seen net to growth profits like shareholders strengthening, our we in we with have of dividends. to

Now, I'll of key through the you Dmitry, quarter. to walk to highlights turn it first the

Dmitry Sergienkov

call. to Thanks, QX. very afternoon excellent this in thank Overall, you results we’re us of Good Mikhail. Mikhail report for happy and said, joining on an as set

the a FX up limited was all despite year-on-year, product QX Growth across and to base revenue XX% set low year. relatively rates even significantly client Our for quarter accelerated categories. last compared

our margin Our adjusted at business XX%. EBITDA margin reached XX%, core Zarplata including excluding Zarplata came EBITDA while

strong the to by CapEx a of just contributing quarter. Our X.X% revenues flow comprised over generation cash

added relatively revenue revenue though Even access a small. consumption key accounts explained business clients subscription virtual already Value-added XXXX differentiated a Our key and media the small generally growth new outperformance performance for ads trend by per over the medium is by expect contract XX% services XX% growth year the on users as to in quarter. monetization and of accounts. our were We use consuming and growth allocated growth on driven of we this the ACV of said. them is accelerate by consistent included it businesses. migrated HeadHunter came key part all demonstrated as contacts XX%, Almost all their up model, or product at over small into and stage and strongest subscription the from year-on-year. as mainly, demonstrated and quarter, well QX, to to regional And start base categories customers, growth products previous from heavy all businesses, monetization solid and Bundle respectively, growth. client of The we impact dynamic growth with in in accounts basic medium small unique the subscription intake medium Job Zarplata. revenue medium price at redundantly the of basis. strong first big of solid small key rapid gradually and growing in by XX% applied the usage recruiter both managed organic I new businesses. back on posting is Apart a across as of accelerate customers

customer in businesses So per acquired medium the combined in and dynamics who to key their category. increased small during growth more almost business those more and customers are not its medium than with accounts Core increasing and XXX% XXXX HeadHunter accounts QX than remain key regional has XX%. spend average significantly and doubling strong revenue unique small by

in account growth new share the by the its potential. customer. quarter growth Our the our RPC of high in XX% versus year-on-year. first key Small you clients. account primarily first pricing in revenue and medium really all is in just to limited monetization driven number reached of actual give the and and ago. monetization revenue power substantial year quarter, increased XX% XX% both adjustment by the consumption see moves to by XX% consumption increased key segment revenue enhancement a XX% of The nice of due mainly to attributable per a impressive sense despite growth It's XXXX The very

up of Moscow XX% Moscow share revenue a online marketing increased generated in XX%, XX% compared by regions year Petersburg outside and keeps Our other interest diverse Revenue ago. more a In becomes business while XX% to impressive reached Russia of on year-on-year. we from of St. Petersburg revenue growing. by and QX, St. and of went

of still we this So the us. think already indicate of well potential that strategic as as is growth across evidence is number ahead great traction areas

talk to Grigorii flow. cash let and profitability Now about

Grigorii Moiseev

of quarter increased related is and of to to XX.X% Thank costs first Yes. Dmitry the our and this first half compared Zarplata. In increase expenses you, by consolidation hello, the XXXX, total Almost XXXX. everyone. of operating quarter of

Going this we our in bucket of by XX our the quarter XX.X% increased bucket over business last from circa our months. increased where the the by XXXX. first X% by headcount the compared came personnel people growth expenses each to XX or Most main

As and our sales mostly functions. usual, in this hiring development new was

smaller However, same in than COVID-related year it period last XXXX. was the in due freeze to hiring

We circa wages XXXX. XX% of by also the have increased second half in

in personnel Additionally, of in of Zarplata first segment quarter expenses growth one-third has the driven approximately our XXXX. the

the which had in also and is initiative the personnel XXXX thus and XX us to occurring COVID-related first contributes the -- not our XXXX, which in of quarter quarter RUB in We growth bonuses also through first in reduction approximately of saved cost-cutting expenses. million the

segment first higher of of percentage XXXX business percentage of expenses a as point excluding other first as the offset circa additional As as by as increased well in higher personnel in which XXXX items in revenue as first This and personnel expenses our was of share-based as revenue, XX.X%. of to the expenses COVID-related in well the our was revenue the not percentage Zarplata in result which a one main in by savings a COVID-related quarter of is first of quarter compensations XXXX. occurring in decrease a personnel have a quarter percentage savings

by were increase to personnel marketing compared a percentage partly our by consolidation. was as result offset spend in in in More compared revenue our business, a general was marketing of of towards Marketing the expenses a in to expenses first of quarter XXXX. decrease the expenses revenue a main which of slight this quarter of XX.X% Zarplata in first in segment, similar XX% and of to attributable as than decrease additional first XXXX. of increased higher to skewed revenue, was on, this particular. This XX% Moving expenses the in which half also marketing percentage a Zarplata quarter year is

XX.X% general XXXX other first Zarplata expenses back RUBXXX mostly and of the our on by the of Our aiding expenses. to million, quarter segment in administrative increased

few margins. a words Now, on

segment was this not one why which lower more due points saw timing a revenue Our in half by seasonality sizeable in adjusted is this marketing full decreased margin segment accentuated XX.X%. indicative in Zarplata EBITDA think results. main of XXXX which business, quarter the in to offset first the circa and increase by margins our percentage is margin We our and a in the expenses XXXX, quarter year to we decrease a of first of

Zarplata's will full that profitability leverage main continue our in have dilutive year a in business. impact absorbed be on lower impact the expect will operating this We to margins, but embedded by our

XXXX. XXXX because capital in RUBXXX completed compared of expenditure fit-out a to first RUBXX quarter million office quarter was in project acquisition was primarily other the approximately XXXX X% indicators, million of on to first sharp decrease or our was revenue Skillaz excluding which the our in key Moving

to the RUBX.X capital in primarily compared XXXX working due increase quarter quarter million to in RUBX.X the billion net and received Our of as decreased we XXXX year acquisition of of end payables for to Skillaz. RUBXXX consideration payable an due first minus first end, the by to other customer advances billion

RUBXXX was million of the quarter million compared first the first which in expense in increase. tax XXXX income XX% is RUBXXX XXXX, Our of quarter to circa

quarter effects Our in excluding include the various XXXX quarter first excluding same was as various effective short-term XX% of short-term of -- the effects. first in tax rates also XXXX

increase a of in the XXXX. periods RUB billion to of first of in of relation XX the the primarily due due million repayment was XXXX, RUB use the in of acquisition in cash in due activities nonworking billion and In first of the the we Now, to XXXX the of X million RUB as compared We sales. completed for turning by This our we of XXX metrics. fees to XXXX. other XXXX to in in quarter Net compared in of quarter RUB first XXXX of XXXX, Yaroslavl RUB which the in decrease partly XX in was activities the first change million the the XXX circa RUB issue paid million as offices activities Zarplata, paid of between second RUB XXX quarter in quarter and period quarter was in COVID-related XXXX, XXX generation consideration XXX XXX mainly approximately to the acquisition the by occurring was days, XXXX. nonconvertible in driven RUB first million well quarter This with million Zarplata. to as loans in of compared quarter offset assets acquisition was the primarily growth of an to first quarter renovations This fourth XXXX. RUB to first quarter of X the Moscow quarter bond used XXXX, fixed in the million in million in amount almost cash the generated not RUB operating quarter first from increase finance investment of bank financing first

debt Our and an cash leverage XXXX. X.X to balances net and decreased due from cash in decreased generated compared quarter times circa from operating December XX, has times XXXX, to X.X X.X of billion to by RUB first the EBITDA in activities primarily increase

Now, us XX% are moving like record process evaluate year-to-date, for the a performance turn our We XXXX and The XXXX. XXXX. Thank to they of word this for dividend. discuss strong considering this representing RUB see approximately And year this treaties eligible details to I June Mikhail year announce is income back X.XX to adjusted rates provide consolidation of year XXXX. believe July taxation per XX, Dmitry the net under to lower time full as to earnings to double payment XXXX you. market and would date said, dividend investors, Please took date withholding release. are and to share, to tax rate. relevant is submit the dividend for some to lower X, on apply for encourage the our We situation. updated And documentation now, to the we glad who in guidance Skillaz

Dmitry Sergienkov

acquired final the expanded This Thank received to revenue announce We're time help ago. excited stake our two or base by rights over company XX% time you, investors XX% we evolve HeadHunter we from revenue decision SaaS XX% at in of circa one transaction their We almost RUB to XX planned various original had million, and Skillaz a without Grigorii. platform convenient from X.X leading promising times a market. Skillaz RUB We technology in multiple. XXX discount acquisition pretty additional pretty which line the that of financial billion years in the at for to building of week, the Skillaz. the finally and start-up the triggered

speed and remaining of So XX% a own software implied you, per customization the to target It's large business quite the to company hire. the CEO. recruitment due the allowing significantly a Skillaz and many structured is leading Post-closing, average automate we complex the processes Skillaz SaaS the duration to recruitment strategy, and HCM will high it price the integral attractive with and attractive To parts way visibility. X enterprises founder improved years This develops process X, cost while stay HeadHunter product XX%, highly contract model scalable. The Co-option. with cloud-based perfectly [ph] with will operates demands. high remind revenue of

areas also high Now recruitment road. you our the client growth. pricing system HeadHunter our and as believe us allow retention for grow. future take to getting down control into our are to important And enjoying effect various guide, expected is expand Strategically Skillaz this leverage product when increase we is HR strategy basic they very development that

company enterprise of demonstrated revenue. expansion, base facilitated now diversification and traction, exposure to segments. In portfolio sound client different SaaS That the terms of the industry strong heading growing Skillaz share over inter of an recurring contract operating XX

A to taken we modern solution words is majority this compete vast least over still is the at market RUB exceeding of systems build year, year be the their as of outdated only the currently The company enterprise XXXX. about to revenue with of use billion XX home few full For double market lacking expect which opportunity to-date ATS solutions. market smaller revenue Skillaz the and estimated X% already cloud to for legacy or XXXX competitors. prebooked addressable revenue their base by

in impact markets real This now. almost ATS of years, XX% KPIs. over CAGR of posting SaaS since a recoupment XX% has faster. So company's Skillaz We believe doubled XXXX. facilitates core share overall in the But over SaaS penetration reaching even over on rapid terms growing platform, ATS last been the two

sourcing and of benefit represent platform Going our proposition grab total as unique bigger share the that we a gradually help XX a RUB integrated should with market. billion forward structural and being seamlessly customer them from Skillaz trends this

One this excited of we're why general and profitable in about presidents successor that's of sizable building business and globally space this opportunity. really

to consolidation, our XX% our to we'd Skillaz year-to-date, to guidance business XXXX. the reflect To is as by That growth as turning Finally core XX% like to it of revenue outperformance guidance. increase well range for impact QX, year-on-year. X%

We are opening now the questions. floor your for

Operator

from your comes question from of Instructions] the Degtyarev ask Sachs. [Operator Please line The first Vyacheslav Goldman question.

Vyacheslav Degtyarev

for questions. very you Yes, much of thank the presentation. Couple

Firstly, can in how structural your the XX like vacancies of problems or of my elaborate question digitalization back thoughts And spike much is example? how you. the demographic you the approached for be, the for temporary is happening definition to if recent can you this Skillaz? market the COVID? a developments the you the attributed share -- factors, addressable one-off lack industry of like of like on much in second across basically Russia opportunity would And RUB billion that how Thank migrants

Dmitry Sergienkov

Thanks these questions. take Slava. I'll

outperformance in first last right? of circa debt in basis decompose one of general that our is was consolidation. of view largely labor kind intensifying is for in that on end weeks is gaining growth. The market happen is kind to around consolidation, our due trying QX. On growth this by just X% growth caused said And is all driven and low March. competition XX% the year by Zarplata And -- to first the online estimate of Well two the rest

shortage really lasting. up and the that the well of driven balances. confidence on we generally and existing You now market would misbalanced activity. fundamental believe by that they actually entrenched growing of rightfully I of rollout employer mentioned vaccination say, quite, consumer Because back of We general is the lease kind see candidates, -- at the are long not the and just going market unprecedented and the course, is moment, of reactive business has activity kind and

demand of labor, low-skilled from drivers, a cetera. especially lot economy, et such for So, new colliers,

demography last in same the kind by activities like activity we quite our decline So and by age of lockdowns employment why is And grew in behind candidate kind alterations major circa right? the trend XX% a That kind is current so, single-digit of employer circa grew negative in the Russia while the prevailing kind this that January believe, it's XX%, estimate and fundamental the population, over by in years. certain over XX age declined XX-XX years. situation, of was the of by categories XX%. whopping XX-XX, by caused amplified XX especially was In the time,

mentioned, the And actually is that are from new the economy, And million in obviously, job new is you this So, four the also contraction that in you now, economy. circa also all target the this all these demand of of decline. force, core We labor e-commerce, the the They're adding hit but environment. as employees. a industry mobility see the from the coming you're categories -- And this there's also, in that sharp the mostly first e-commerce. general target to of immigrants right? and

it So kind macro a of the probably probably entering time. And back situation, overall and I over just of, demographic candidate-centric will that phase kind change. don't will think roll very But we're market. of the

is online large and bigger use expedite channels immediate that of kind companies manner. more forcing intensely of kind of advertise new so, And a vacancies to in turning its number

so And tailwinds. kind structural see this of we

again, at of situation over That's the of addressable profiles. And years. for profile of it to target bottom-up did kind for like the kind We We their market. a research. second systems We first Skillaz look their in the the created market actually question. actually to certain vast as course, And more And caters. companies but employees of the willing kind disappear time answer some the stay may more normalizes, some of leave, the will right? majority -- become

K potential at quite we biggest enterprises. right. smaller then these having pay So kind And costs higher look companies, circa check kind the but could existing of just solutions be at their somewhat of industry, best big for Skillaz we list, how effects as in Because XXX the we average and companies improves the up that every company. and the X,XXX actually from see example ended still the

believe suite. that just So we others the follow would

just did it bottom-up, number we strictly clients check. the So of multiplying average by

So applied we this pretty recruitment a having our view RUBXX would it's cost. conservative we billion. further this spend believe small check. We up estimate a that In end to quite grow total

the think big I would check even time. be over

Vyacheslav Degtyarev

very much. you Thank

Operator

line of comes Suisse. you. the your Thank The Credit from question next Stephen Ju Please question. from ask

Stephen Ju

you so Thank much. Okay.

overlap HeadHunter client? salespeople you Skillaz well? among like you will of seems sell will It I the as about client perhaps Thank So anticipate your an that talk you. -- be accounts. to overlap larger from versus Skillaz your the when And guess the the begin do integration perspective, the also should key the product

Dmitry Sergienkov

This Stephen. Thanks here is again. Dmitry

in terms actually its they all clients. overlap, actually blue the We And it's overlap exemptions. really In XXX% that of very entirety. because market think serve target small chip we

shape differences we actually any later us using It's product good So clients Skillaz of access terms selling years between don't think versus a the of been understanding actually working right? in services. the product basic We maybe quite over rather to in the not I because for with to quite actually two. Skillaz SaaS We HeadHunter expect for our months upsell product. Skillaz client requires or already work for product marketplace two automation lot and and more

automated requires but actually customer very I it's still success the said, team. even as side on a it a lot of Although Skillaz technically strong

SaaS very We then Skillaz. a Skillaz right, transfer their to up be we sales would dialogue. deep Skillaz, force identified understand pretty And it the first. think generation I as end need very see mostly, rather to needs. have for sales force perspective build we professional, focused we that that by capability own from because up to lead We So our and to that client

think and side what been have and roll out upsells we'll some that's doing just successful it I we already on our further.

Stephen Ju

Okay. Thank you.

Operator

Please from Thank Ivan your Kim you. the from Xtellus question comes of question. The next line ask Capital.

Ivan Kim

hi. Yes,

year what So to is but do a the before, been it's or this So just next That's upside guess your cannot or see further so one increase talking talk you So But term over number? reached here? question. on about can million you longer next job from significant building platform. what impressive I -- to risk say? on significantly you these the outlook? postings can Just you've first

you what lastly, expense, just and EBITDA expect second on Skillaz, that so reach XX% And do it The state was question the marketing EBITDA could in to the margin that positive business? when of be revenue. steady

year, So just comfortable I to in we you're should just whole? expect as some marketing the sales providing wondering was or Thank for a what the year if the of of you. estimate remainder

Dmitry Sergienkov

Ivan. Thanks, Yes.

always revising here. clearly targets, Grigorii we're -- then the Look, moment think and two longer-term the saturate. was kind of in potential it kind going market a the comment the medium small I'll Dmitry especially take will I bit is our think this zone at on and of marketing. penetration first Because is businesses and a where I of right? unknown to where

actually and that be should the see that even we last kind And of examples with because believe set important. of or definitely most by the pace just European US that digitalization interaction have of revised year level with of been among like some half population. we candidate Russia is -- the be at companies absorbed of which in the moment Now this adoption benchmarks in the We should the exceeding StepStone kind dynamics upwards. target

And our key kind should growth I big it's I I accelerated to of businesses, chunk execute result environment think of and entering amortization kind is the adoption, it's of of and a right? especially that upside. think accounts we think from that This strategy. So -- in on medium more general are much small in the said, monetization. I as -- favorable kind

in third perspective, other now kind the of but also we're of spur that I And of one, that process. HR. the entering think just processing pillar plan is the increasing the the third I And in that only of towards candidate, moment the high also the the growth kind not that is acceleration. of from -- of monetization should then also overall the revising situation our So and our efficiency areas I sourcing the happening think demand think at

highly in that HR beneficial benefit for longer we others. like solutions that's the Skillaz also that's think I think the why I and that market. should run, And

kind be long-term some I right, think -- targets, we be of at EBITDA may -- longer-term it course as of So kind normalized. a few -- of We we'll course steps Skillaz see growth ahead I of of experiencing as a dilutive years sales. R&D answer. we year think kind type that points they quick hiring is it's on to products, But lot point, but and this two developing think that, of in for our ago. of of focused own a small -- we so on really the are think will for actually plans I percentage And quarter-over-quarter said going I and of Skillaz, market I two not terms from achieving be their probably deceleration be this

group now don't kind to of of it growth and material their squeeze EBITDA time. front. margin potential level. it's right But the really even on about short-term. two said Skillaz models from in concerned we think on kind will are over this next on some even as less not Mail.Ru job on is will a X% They've go I profitability -- further the the Because bit great But I Group done our just actually I years level And as the over last a so a they per break-even. internal the last year feed think

comment Grigorii hand on over marketing. Here to to I’ll

Grigorii Moiseev

Yes. Hello, Ivan.

that of that full year think marketing expect the of the in I the Basically, probably right? the of essentially the main decrease at marketing we the I during in same consolidated We last time flat business. percentage percentage as in if – a compared question. than first presentation I as marketing as year. revenue kind it understand decrease your we quarter, the in know don't do our a higher of in in kind revenue mentioned Zarplata, the the for same level, to I But business of core slightly will in on think see HeadHunter. answers is the a percentage be revenue the

Ivan Kim

you. Thank Yes.

Operator

Kurbatova ask [Operator from line Alfa-Bank. the Instructions] question The next from question. of Please comes Anna your

Anna Kurbatova

Yes. the everyone and for for great call Good you much, Thank questions. have three line performance. top afternoon. actually I a

share market The chart XX% XX% there is total share. than you on all remaining or with big times the three – bigger more one, market rival less the your and addressable Skillaz share which is for another Skillaz first the indicate has that participants. And with

your correctly it guidance? results and years would player XXXX? you. giving So would us or if of IPO not you ago be – guidance. and that great growth to of – was EBITDA from right financial be preserves is and after – question when P&L disadvantages? I from this both a parts in the understand two top strong April, is Skillaz And will be, common or Thank line understand that the consolidated now you second who business what strong practice the Because that statement gave guidance just third question The Xst I'm advantages mistaken, you technical Did one. profitability

Dmitry Sergienkov

entirely market kind player a special we the one. performance. CTS Anna. Thanks, second the that Yes, company. called [indiscernible] is obviously carve-out is I'll company private-owned their tracking first the answer of in We

the that enterprise I in they view are more are our think solutions assets. at we end market, the comment actually scalable now just time more most the more when see obviously the after their we question. probably on in ago, both are equal hand or to these like the answers easily Skillaz a consolidation. bit the the complex And years market kind than because the Skillaz. And And of our that the much point strong If within struggling go a they demand they're say in Grigorii addressing it the budgets seems over five best – that delivering because of their for part really considering advanced And not few positioned easier less is horse profitability of are there of – ago. now, reached bet the kind of when as such most. I is – HR the were we to to accept kind of actually – lower companies in kind kind decided capabilities -- it enterprise years they enterprises size. of your Skillaz on the more of of market. And

Grigorii Moiseev

kind of open of kind Anna, QX, this expenses in right our terms Yeah. as saw options business target conceptual can saw on year labor of what the -- question, turbulent. business quite Dmitry margin, expansion, Grigorii. in expansion market it -- I because rest do as the not as profitability. we I first on EBITDA and we from in we're results, for And of focused is think. so probably QX EBITDA about we said margin right this XXXX. more in This see kind Thank this specific demand tremendous our But see And go on kind the before on of right? we in adjusted Frankly, our the you. expect you market force the keep is year, We year. to of main kind the to like would of in

effect, business operating to fully dilute said, leverage a absorbed be this the have we Skillaz in of kind main we plus dilutive by will will dilution this, the also smaller quarter expect this but As right.

looking adjusted right, ballpark EBITDA slight the basically, could it less, above a be of the for last be could which call of ballpark full it's more. XX% quarter, a the the is said on But overall So margin. kind as XXXX again, we slightly we're in year, slightly margin at

Anna Kurbatova

you. And consolidation Thank very date the exact Thank you Yes. of of Skillaz? on much.

Grigorii Moiseev

consolidate right. Yeah. the X company the second The quarter. the Yeah, it's totally you're -- will April from we -- from

Skillaz results for have we'll the the fourth quarter, second full quarter. So

Anna Kurbatova

you, much. Grig. you Thank very Thank

Operator

John ask your from Please The you. next Thank from line UBS. the of question Kim comes question.

John Kim

any Two April Secondly, you velocity in the questions a place Hi, new sustainable you everybody. there months? on here? comment Thanks. please. competitors innovative Are Can is are time business of in bit products? from anything or March the those seeing for on you, of or core in levels and

Dmitry Sergienkov

from market We existing voice. to base are front on they I and competitive significant think John. we see the is Well that start kind obviously benefited product vacancies in vacancy this second. will -- see kind Generally, of of also the exploit trying market is with Hi, growing. the see the we -- vacancy whole -- I changes don't are the situation any opportunities. the the

kind of traffic the on the struggle between side, you us competitors, market is both candidate the in growing I at side that the going disproportionately. and to of kind environment, for look gap whole also at dynamics. look candidate you if Again, two and think this content number against the but Although, was if gap on

of addressing you and perspective up the more also share market product-wise, traffic don't is It's John, Because unique And our that that of coming growing. now But believe competitors kind we we that the could audience that see repeat? keeps hardly. market. coming please up very of so perspective. is client that really for to any the first hearing one, the really kind the in very I from market And – to is was anything you

John Kim

Sure.

the seem sense? growth about to May, I that out sustainable? be to just Does business So XX% backing April make XX%. is that around And rates in velocity and

Dmitry Sergienkov

the less of of the we or time I met relaxed There are moment. especially and may maybe they right, of we into that market more be -- kind the quarter, kind behavior helping, kind coming active some change that will we features that year. there our you -- very in numbers candidate continue over kind in I we're consistently But of are is and quarter, may short are think the expect low There because not moment first QX of of can seeing too the are believe confidence some of kind -- the at the see don't market accelerate high more the say this think question a a what before, the with were Because we the of at double-digit be pace. the really kind how sector the discussed back resolved this situation. second over time. end of kind that And demographic as the were right? in at drives in growth in low base may were business In last right, sectors

of the obviously, long already in they're included I So are for subscriptions, from change year because as think monetization, growth remain driver limited from a very I you really factor. impact of. quite migrated our strong using will subscription And kind was last time. in that just also perspective, numbers, And see that a new of our but to still of basis the packages model, right, said clients most that the

the So three they review months. saw of kind these revenue preceding the that contacts in April, for exceeded we example, for from the

It's fourth. monetization would will I effect the very environment that say for accelerate a improvement. strong So

enhance level we even time. current so that believe from And may over

John Kim

you. Thank Okay.

Operator

of from Thank Kim the Please comes your you. [Operator Ivan line question The ask next Capital. Xtellus question. Instructions] from

Ivan Kim

wanted be high. margin Thank the percentage sure margin. I it it's I on for a Skillaz. going just opportunity. not point to seems It heard dilution right. I'm three little on you impact follow-up to effect from That a the

be ARPC. So And you key just the if then on would on could great? accounts secondly, elaborate that

significant the acceleration effect in was contact Thank mentioned before later? what first also is as price the the paper kicks So that in which quite before even you. which in driving April, this quarter, and was in year increase Dmitry

Grigorii Moiseev

is Grigorii. this Ivan,

here I think, is your percentage Ivan lower, No, actually one think and on there question. full second first maybe actually results. the the I'll major on year Yeah. two point, much maybe estimate RPC, around take question on I centers. potentially our on are the

-- rolled think kind who initiatives lot right, does that's accounts. I we that out first added so essentially that but not not were a The ours, required of those because last year. if but you're of key the of major. the consolidation shouldn't quite the was is uniquely really major actually top regional acquired there And of one on The technical. Zarplata we That a and

if And you ago they're from all, first accounts the key a starting the the approach all started of posting I lends competition. were of differentiated right? we remember, sort major the job discussing delayed year was right the that given in key dynamics obviously, First driver, kind market, having especially proposing in the And are And of rewards. accounts reaping think our we the effect. of towards was intensified probably maybe initiatives kind January, because, I that

our don't and And replacing started subscriptions, contacts see optimize new posting revenue. consuming impact our demand of of budget side more trying are on on the their incremental also they with job and So contract at But a job revenues. to the they kind because effect same see we postings. time, real and side we

Ivan Kim

All right. very you Thank much.

Operator

The ask of question Thank Please [Operator BCS. Instructions] comes from the question. from Maria you. your next Sukhanova line

Maria Sukhanova

Hello. Yes.

-- about Is growth would or now? assumptions, say, you revenue based one, what message conservative quick it's a what you on Thank the guidance? you. is that Just reflects see it your risen think you

Dmitry Sergienkov

all situation not not range strong won't would said signs or from X% And yet. We any kind And popular Hi, current upgraded Maria Yeah. X% there over nonworking kind And this results. Remaining second bear quarter-to-date say of our a its we kind I Skillaz right? of we this safe pretty business well in consolidation. that half, this see on it the from would very year-to-date of days, time. of the to much But that from be of in that stems point. confident sudden. added be at outperformance. Dmitry. And the no -- lockdown, is the over We're of we're by We're actually announcement potential I at are expect point mind, X%. deceleration guidance remaining as

we to of in this confident. the later we reserve range. And also hit it, much So pretty I think review point year. at time And the we're right this

Maria Sukhanova

Thank you.

Operator

There at [Operator you. time. questions Please Instructions] further continue. are this no Thank

Dmitry Sergienkovd

take you And for everybody Bye-bye. joining. care. Thank

Operator

That our for Thank does participating. you conference today. conclude for

You a nice may Have all day. disconnect.

HeadHunter (HHR) 27 May 212021 Q1 Earnings call transcript