Q3 2020 HeadHunter Group PLC Earnings Call
[music].
And gentlemen, thank you for standing by welcome just wanted too much Twentys financial results conference call.
At this time, all participants on and.
And after the presentation you may ask your question.
Sorry, and one on your telephone keypad.
I must advise you conference is being recorded and.
I'd now like tend to have less because day from.
From and stuff you then please go ahead.
Thank you.
Hello, everyone and welcome to hit from two group third quarter Twentytwenty earnings call on the Golden Day, What gets me sales Lucas, our Chief Executive Officer, Gregory and we see our Chief Financial Officer, and maybe sort of young our chief strategy Officer, and a press release containing our third quarter Twentytwenty results was issued earlier today and the book and May be obtained through our web.
Site at Investor Day, what age and <unk> are you.
And I will.
I'll briefly walk you through the Safe Harbor statement that these discussions will contain forward looking statements and.
Actual results may differ materially from the results predicted or implied by such statements and forward looking statements.
Made the day speak on that to our expectations as of today, we undertake no obligation to publicly update or revise these statements for a discussion of some of the risk factors that could cause actual results and deeper please see the respective section in our annual report on the form 20-F for the year ended December 31st and thousands.
And team and our final prospectus in connection with our public offering that was filed with the U.S. Security and Exchange Commission on June 16th Twentytwenty.
You're on these calls we will be referring to some non like for S. financial measures reconciliation and then on my first financial measures to the most directly comparable I for EPS measures is provided in the earnings release, we issued today and the slide presentation each of which is available on our website at Investor day on Asia or you know.
Now I will turn the call over to me failed to make a Greek opening remarks. Please go ahead.
Thank you Ron and good afternoon, everyone and welcome to todays call.
We believe that our performance in the third quarter confirmed the state and that efficient remote solutions in such an important function as recruitment of vital for any enterprise Julie.
During this challenging year, we managed to grow our customer base, serving almost 290000 companies over Russia and to see I guess since the beginning of the year. Many of our clients have adopted to remote operations and now conduct hiring and sorry, what on line importantly on.
Timely recovery and measures helped us to gain market momentum and accelerate growth even despite the impact from the second wave of corporate magazine, we are glad to see all customer segments, which on so expansion and keep improving week. After week. This gives us confidence that once we are finally total food.
And businesses regain confidence and future we may reach our strategic targets, even faster than we thought before the crisis hit the market in March now I will turn the worst Dimitri to walk you through the key highlights on the third quarter. Thank you.
Thank you and.
Hello, everyone.
And me has said and the third quarter, we continue and you must trading and steady recovery and across all major grazing and financial measures and.
And it was on against the backdrop on continuous economic bullets, you, a gym and specifically in terms of new Cds inflow with or a net for the improvements with double digit a year on year growth.
Total number of cities on the blast from her reached 40 million and indicating that Acquisitional for 6 million CV since the beginning of the year.
Hi, and this new active for audience acquisition on coupled with the sort on product improvements, resulting and growing number of application. They can see which is one of the main efficiency great theater for our clients and sold and they look forward when utilization per month.
Audience growth as vital, especially for put into context over a rapid and recovering and we're actively Jim and since the beginning of September the average daily and number of job postings on the platform hold on a historical high range of stock was 720 704 to sell them back and says.
And again that was so despite the kinda force Inc., probably 90, and sedation and with them.
We believe from what we are actually one of very few jumped platforms global it had reached and even exceed its pre crisis, you and your level because so many I will be your score, but its struggling because there was inventory and this time.
Due to our constant improving sorts of recommendation on algorithms, we've managed to sustain high conversion from applications limitations.
Typically without compromising on GLEI and efficiency and during this scale expansion.
Debt encouraging dynamic and operating metrics during third quarter translated and some and set of financial results.
Revenue grew 7.7% year on year and.
Our core Russian segment revenue grew even a higher 9.1% year on year.
All right and the deeper and see that we're doing and explained by the continuous political turbulence and dollars.
Our EBITDA adjusted EBITDA margin was up to 56.1% from 53.5% and 19.
Mainly due to reallocation of part of the marketing expenses and later in the year and some ongoing antichrist measures that were eventually lifted in the fourth quarter of two integration.
Got big adjusted from office innovation cost was around 2% and reported.
Most of our capital expenditure and each to some holes and during this current as you know.
And solid performance by product type, please turn to page five.
And as expected the most rapidly recovering product was job posting growing 11% year on year as our key accounts.
And they're hiring was pulled down and then whats important is small and medium business Catsix reported back off the sharp fall and the Q2 our.
These dynamics will also supported by our aggressive pro more target the most effective market areas.
Bundles subscriptions and other time proved to be highly stable and predictable part of our business and.
Despite we are currently absorbing significant growth the new long term contract activations to take a certain time before and finds reflection revenue numbers. So you're going to you and you don't see it in these numbers yet.
I see you did a base.
Access being exposed more to small and medium and segment buying one and seven day duration finally returned to growth as well and we expect it to accelerate in Q4.
Of course, there can be no impact from recent transition to new subscriptions model, yet, although we see first clients migrating to baber quanta contracts and so far we don't see visible and quite sure growth for this transition.
Our strong performance and value added services, mainly explained by higher share of our subscription based a little bit on revenue and predominantly from key accounts acquired and greater some branding products our.
We also saw at least in the retail demand flow our price per branch performance product works on a quarter that is driving a.
Boss revenue share in total.
Turning now to Q2 result by customer segment, which you can find on page 678.
We saw revenue and according to growth across all customer segments.
Our customers the region of Russia were added on to less impacted by the on Dentek and keep growing faster than Moscow and services.
Importantly on revenue growth was mostly driven by the increase and number of paying customers across all quite and categories and that explained by intake of both new customers and the customers are joining post crisis GAAP.
Total number of customers grew more than 10% year on year.
For key accounts ARPC was affected by growing customer base as a set especially diligence and therefore diluting net as Chuck for small and medium businesses apart from intake of new small customers ARPC was affected by aggressive portable down per Omar and we are actually convinced that this push for new.
Costs from acquisitions will positively impact our revenue share and going forward.
And now his Gregory talk about other financial metrics.
Thank you Jim and.
However, low oil.
Let me give you some detail on the expenses on the margins.
The third quarter of two assets when share.
Total operating expenses grew 8% year on year. This was primarily due to expenses related to our MSP low restrict your interest line for integrated.
Our total adjusted operating expense, which excludes IPO and fewer layers expenses that could just settled awards sales. The other non loads and other items were actually flow into the third quarter, two and just when share compared to the third quarter to instantly and team.
For convenience, we actually added to the adjusted operating expense reconciliation table and our press release from this quarter and I will refer to the adjusted operating expenses and discussion.
So as I said, the total adjusted upgrades and expenses growth last year on year and this was the combination of low flow several multi directional collectors.
First our personnel expenses adjusted for equity settled awards sales low Chris purely on the expense or converts and 61 medium, which was and then increased pressure on land percent year on year low.
Most in June to indexation on wagers from the beginning of Twentytwenty and as an increase in petco and tool eight contract employees from the third quarter, two and just when you compare two circuits. So congrats on 60 people.
In the third quarter of two and 19.
In Twentytwenty and the third quarter as we saw operating and financial expense performance turn and.
Back on track.
Have resumed.
Bonuses for our employees as well as at least at our Clarins balance.
However, some personnel expenses such as comfort the wells and training or education are still on hold partially for later on.
Reasons.
And moving to marketing expense as you saw from the release in the third quarter Twentytwenty markets and also to cover third and quite museum, which was a decrease from circa 20%.
Vs markets and then the third quarter.
In 2018 now this decrease was due to a per.
Lead you to a different allocation on our TV complete as we have allocated significantly more it adds to the second quarter and less total third quarter increase year compared to two and might achieve.
In the fourth quarter, we in sales to spend more on received in the third quarter and as I think we've discussed on previous calls we stick to our per well that market expenses.
It will be relatively uplift in the second call 2020 compared to the second quarter 20 led and team.
And lastly on or other general and administrative expenses adjusted for US too earlier this professional services sales other.
Financing on transactional costs are up 200 channel to eight medial uplift compared to 203 million gallons and for third quarter, two and lay a team and as a percentage of revenue adjusted EPS. Other gently are in line for sales relative sweat comfort to line on the helper cells in the third quarter of 2000 latency and.
So as a result.
Our adjusted EBITDA for the third quarter two inch its weighted average circa 1.3 billion rubles pictures on increased by 13% compared to the third quarter of two inch and late June and.
Our adjusted EBITDA margin has also expanded by circa three percentage points to 56.1 for sales in the third.
Well the transit revenue.
Now moving on to pitch as do my thing said before in the second quarter Twentytwenty, we have substantially completed our large project on.
Our last quarter's results and as a result, our capacity and the third quarter and just went it was 70 media.
Rob will switch and down by 20 led to sales growth versus previous years same quarter.
And as a percentage of revenue.
It was a historically low levels for two or 3%.
For revenue, which was the year for low for us over the years.
Our income tax expense increased by 73 meals or by circa 38% compared to the third quarter of 2019, which was primarily due to increase in the effective tax rate to 31%.
And this was mainly because of the non deductible US dollar weighted professional services and also the reversal on the provision for uncertain tax positions in the third quarter and Atlanta team.
Excluding these effects will be.
Effective tax rate for the third quarter sequential trends you have been on 28 per settled.
Now turning to cash generation metrics, which are on page 11, and lower supplementary slides debt.
In the nine months Twentytwenty, we generated circuit to behave on Rubbished roll up rates and activity as compared to approximately 1.7 billion and let alone 2019.
This increase was mostly due to a decrease in interest rate on the back on.
Over the years decrease and the key rates.
From Banco from Russia.
Which are on our backlog and interest expenses sales tool and also a decrease and income tax rates sales other changes on working capital led.
Net cash used in investing activities was 181 million in the nine months 2020 compared to 494 medium used to same period last year and this was mostly driven by index position on interest in low steel us, which we concluded 2019.
Net cash used from financing activities in the third quarter, sorry over the nine month strength in that 20 to 24, So 2.7 billion rubles GAAP virtual 2.3 billion income by low Twentys 19. This change all 401 billion and Wearables was mainly due to and increase.
On annual dividend, which we paid in September 2020, and this increase were partly offset by repayment of the flow through on associated with that non controlling for older Wayne.
During March 20 and leveraging.
As a result of is.
Changes and cash our net debt was.
3.1 be from as of September 32020, less compared to three b and as of December 31st two inch and lighting and the leverage also remained flat and is currently 0.8 times EBITDA, though.
Additionally, in the third quarter of Twentytwenty, we've we have agreed with BGB back to expense the ultimate maturity of our sales from October transits venture tool to drill to enter two and your flow.
As well as.
We agreed on temporarily relaxation on performance covenants to account for equivalents Lance you embarked on low performance.
While interest rates on our credit facility remains unchanged.
Thank you and no like true opening the floor from acuity.
Thank you, ladies and gentlemen, and she'd like to ask a question and please.
Please press star.
Thank you and wage.
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That's true.
Good question come from.
Your first question comes from me is on Kim from Exelis Capital. Please go ahead.
Yes.
And to.
Two questions from my side please.
Firstly on the revenue growth trends lately. So can you. Please talk about the revenue growth trends on the coal burn November what you're saying.
And then secondly on.
He is.
On the street fixation changes.
Is there more clarity on how these changes will reflect on your business and.
And maybe also your business.
Youre right wells and are much.
Thank you on and.
I will take the first one on greater will do is net and the second on the revenue and trends.
Looking at our cash.
Wonderful day numbers.
We can.
On the free up from our previous guidance given at the last call for and.
For the fourth quarter, we expect on a.
Solid double digit growth.
Revenues and we actually expect the double digit growth across all mark.
Market segments.
We actually see a weighted strong turnaround and recovery and growth in our key accounts.
Both on regions, especially on the regions and share an orphan Moscow and a growing already or.
And 2% year on year and also quite pleased that are kind of lagging on whats probably much and GITR, where business was kind of hit the most during cries and Moscow.
And on Biz work small and medium businesses. They also started growing pretty nicely already on.
Reached the double double digit growth, so we've kind of reaffirming guidance and.
And if that yes, we are tracking our original expectations.
Total.
And I and lower to gravitate to answer and sandwich.
Yes, Hello, one.
As you and all the.
These initiatives were actually and Luxoft and.
They are effective from January.
First when share 21.
This includes reduction and the income tax sales.
Social success as well as.
Emulation Opus zero percent VT rates.
On software assets.
Unless some criteria and web.
I think what's important.
And look for our industry is that the legislation and actually contains a specific provision.
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In relation to leave each year rates.
We assess that.
In case, the software is used for factory or for.
And Ryan and the plus four range two sided business Centrus our sales.
This effect and really is.
Low to the kind of activity, which is subject to zero percent between.
So we believe that the legislation and actually clarifies that.
For light and recruitment is north and by flow towards share repurchase at between so from lease position, we think that the competitors will need to adjust for this new legislation from January 1st.
But.
On this let's begin with them and have the.
Sales confirmation lower and so there's too much information that and the.
Companies like Superdrug for instance for argues and dessert sales volume.
Exceptional.
We'll move to <unk>.
20% of each day rate from January.
And we'll have to wait and see all day, our price price this will change.
Also as you probably heard and we know that that there are ongoing discussions between.
The community and the government on expand and deserves and BT.
Rates on.
Effectively on.
Platforms.
Such as ourselves I think as low and.
Probably.
We will we will have to see how this process also.
Ultimately turns out.
All right. Thank you very much like to share recovery and fourth quarter.
And your next question comes from Seattle.
That's terrific from Goldman Sachs. Please go ahead.
Hi, yes. Thank you so much on the presentation.
And that actually to think about that tradeoff on revenue growth and the margins going into Twentytwenty one.
Your next year should be good and see it is from the growth standpoint on.
And and always have Twentytwenty and I look in to support that growth with high marketing and potentially product investments and Jeff and you filled that action and it would be helpful to think about and margin set for the next year.
I appreciate that.
I didn't know guidance and lots of moving parts here.
And also secondly can you highlight seven unit growth trend.
And that you see I mentioned on the back on that from Danny if any and.
How are your position and for them technologically or simply I do think that side of it is having on net pulls per day for and that negative effect on the business over the longer on thank you.
Yes, because while I wish leftists does this this is Craig Murray and probably it from Libya, and Yemen will lead to me and whaler.
We are currently in the budgeting process from 20 to 21 and those I think it's kind of good earlier true.
So to give you any assets.
Even directionally.
And.
Information on on this topic.
Also I think you are right about the.
Revenue growth for the total for.
For the 2021, but at the same place and.
There is also on the effect on the expense the flow of course and waste for Twentytwenty. A win win is in low we have the some cost savings rates and.
Importantly, this will what's real and give some pressure on 2020 one on the.
Total assets will.
Hi, slow and demand on on the on your second question.
I don't think we are really notice any incremental trends that we have noted before and during the first wave from them on them and.
And I think we kind of from.
To some extent we are being.
Being the rewards from our investment into their technology and product and platform. There were suffocation debt, we expect and started to feed four years ago.
When we kind of redirect our product and marketing efforts towards these.
Newly emerging real core segment, which you say total accelerated during the crisis and the.
And now we're seeing our effective job postings and we.
Or area grow and 40% year on year and already reaching nearly 50% of total content items. So obviously the pandemic helped this market actually true.
He fostered tour on line and.
And hopefully have once they adopt new going in for.
And you services, they will kind of remain in online because the efficient sale. One line services, we hire sales line. So.
So from that perspective, and that's kind of the most tangible each.
Influence from the bundle mix and a positive thing and the negative way, we will however, as because obviously the vessel and grow faster.
Business had and.
Higher confidence and tomorrow.
And also there start.
Start on kind of.
Patterns from our clients that were is to digesting how sustainable that will be in line.
Longer on on first of all remote ward.
And cry that and working them area arrangements was BC that now when you apply and stay and either decided to or considering you meaning.
Lastly, kind of hybrid.
On the remote.
For an hour ride and that's completely different.
I would say the pattern and that requires certain products and solutions when our EMS as well and that's why we decided to push ahead was there we do interviews.
Decided that we really need to pay higher attention to work on temporary workers to especially considering the distillation changes right and well see that your competitors and moving in this area. It and we believe that that's a big opportunity and there will be also spurred by their bundle income.
And also legislation development.
So so far we really see kind of more benefits from the longer on.
ER development and Thats why and the high on mentioned in the beginning you Martin debt, who make share at each hour and a penetration targets Foster Debbie thought a year ago.
Okay and get much okay.
Your next question comes from Karel tolerance from Renaissance capital. Please go ahead.
Yeah, Hi, everyone and thanks for taking my questions two from me. Please firstly.
Firstly on competition it looks like some competitors have caught up with headhunter in terms of listings and have be show in materially higher growth rates and so could you comment on the competitive dynamics whats happening with your market share and do you see any implications for growth and margin outlook.
That's the first line and then secondly, just a quick follow up on your comments around marketing costs in Q3.
Could you could you talk a bit more why did you decide to spend less on on marketing and.
I thought you were previously talking about the blessed to be quite aggressive during the market recovery in order to to catch some extra market share gains.
So just trying to understand why wasn't the case and Inc. third quarter and that's it. Thanks.
Think group.
I'll answer the first from.
On competition well first of all as you know leasing numbers. There there are good indications, but they don't really provide the full picture and ride and they're much more we'll dial and the easier to kind of influence.
In the shorter term then.
And for example revenue.
But talk in particular in terms of leasing and dynamic and vacancy. So first of all as you saw we kind of each day on historic high number of inventory on our what from all right and.
And we already here.
And if beyond the levels, we saw pre crisis. So thats group and that was held by as I said the way Bluecollar acquisitions.
In terms of.
Kind of relative performance we.
We don't really seeing that.
And you have a competitor's eye catching up in terms of listings the longer on because I don't I tried to explain it also you might actually be referring to other names, but I think first of all we're talking EBITDA and on Superdrug period.
And I think on a beat on.
It's just.
To some extent, it's actually two factor as we understand they did definitely demonstrated bridges from dynamics over the last three months to four months and.
And force the reason why.
Was that day drop the collapse effects and doing crisis. They as you know the business as you just skewed towards new course, this effect and 100% blue color all skill.
And then.
On the inventory in that area or actual told by more than 50% during crisis. So was.
Hugely a global base.
And obviously it was a kind of foster recovery right and we see this and in the Blue core area, as well and but our numbers like on the beverage and closing.
Whitehorse, who were kind of proved to be much more resilient and during crisis.
And that was the first thing and second the EBITDA historically and always will last.
Okay. Three four yes, when we basically launched the monetization and in jobs. They always have a peak numbers in during summer season, and just because they.
They present quite strongly in.
On growth and accordingly.
So thank you said there are two other two factors low base and the kind of rebound and.
And it's just the summer season.
And we expected them to kind of normalize over time and even if you will cut last last month that index was already kind of declining somehow or on 10% and expects to go further down.
Well that's on either.
And we don't really think that they're gaining market share and in terms of Blue force that probably on par with us, but they are not present and whitehorse at all.
And so the soup and job that's the kind of traditional quite traditional.
And.
We saw this last year viewed member low end of last year.
Circuit half of a super job count on these the religion or need to buy.
Two thousands of clients alright, Quincy they tend to top line.
If you look at our vacant space or top 20 clients contribute from that.
Simple marks on 15% and so it's much more robust diversified and sustainable and won't growth growth.
And once you kind of rules this content.
You take the superbowl, which showed the complementing dynamics and.
We saw this in January and February right, and we expect it to go further down from today's level as well and we already see this trend next from there was already kind of off peak.
And also we don't think actually these dynamic is somehow legal store revenue revenue performance and because they're definitely somebody decision and free busting symbol.
And our if cancer.
Your questions.
On the west and the way you definitely did.
Yeah, and I'll you did thanks, so yes, just to comment on marketing spend and Q3 would be helpful as well. Thanks.
Yes, Mike Ellis Gregory.
Well.
Basically we are definitely and up.
Kind of reduce on our stock and lower.
Market and activities.
For instance in September.
Specifically we are already.
Comparable with the last year level in terms on the.
TV ads Brendan.
I think it's.
To some extent, it's kind of low from optical.
We are seeing we're seeing here in the third quarter.
As you are and where we were told that the.
We would like true invest more upturn immediately after the low Dell ended and weight and we've done on this.
So in Q2, we spent more on TV and specifically in weight.
And we usually spent virtually nothing just because it's a very sleepy all day month.
And in these here it was the opposite.
We spent a lot more than usual way per month in this specific months of weight.
And so therefore, it just turned out that kind.
And of first and helpful for your expense is rather fight the.
The question is how we kind of allocates or on the subsequent months right and the decision on those that we will probably slightly reduced August and then.
Go back on track from September and.
We know our.
Going to spend that thing.
While significantly more I don't think I have true disposals.
This falls on Wednesday.
Specifically, but are you and spend more in Q4 on TV.
And we have deep in the third quarter.
And I think as we disclosed in the release.
As a result.
Total expense in the second quarter will be.
From what was the last year.
And we will have the some growth from for the full year results as well.
Okay. That's clear thanks a lot.
Your next question comes from to me she from self.
From Wood and company. Please go ahead.
Hi, Thank you I have two questions. So the first one on raise the just taking into account on your large and as a base I guess, you're looking to responding to other complementary segments like lumps and or what line courses to build and monetize that.
Great and the second question is a follow up on bills question on competitive as a basic there maybe if you can share the pro.
Right some color on the rubber and market share with notice they specifically increased marketing budgets and new and.
And two and CIS, especially on the TV just interested to it.
There was some success on the gaming thank.
Thank you very much.
And thank you onethree.
Our loans for more questions.
Our first yes, your total to right.
And expansion beyond our traditional markets being.
Always sir and.
Sports and part of our growth strategy price, maybe not in terms of revenue or in the shorter term, but in terms of and longer term growth for on a wait and.
And we are all and on a kind of cost and look out for opportunities specifically on freelance we look at this and two years ago, We decided the market is not.
Really sizable and Russia, and you can't really big.
Build their operating anything sizable and on our kind of drug and.
On scheme of things.
And in terms of education, clearly, it's a kind of strategic air for us and we have been discussing with number of potential partners and targets.
Certain time and.
Our country and give timing, but there again.
And for the next four or five years and have quite high confidence that we may actually be present and lay in this space because it's also quite synergetic to employment and thats growing and.
Quite potential growth sizeable.
And the other areas as well all right automation for example, a temporary workers as I mentioned.
On boarding and other areas definitely will be paying high attention to these areas and.
Deal with debt either wire acquisition sore and.
So on all in house development.
On our border share.
Similar to other players shares a.
To be honest.
The last reported Reconvenes Commission kind of assessing market share as was that time over and IPO.
IPO and and and since then I don't think there is a really good.
Good financial numbers from manual players.
Before we kind of try and find a any proxsys that would be good and.
Gaming revenue my remark share dynamics are first of all the low cat traffic and content on.
On our bolt on.
We obviously seeing them as the most active spender and the market for first on time.
Restocking breaks and by the way but.
I think they probably spend the most this year.
And ER, we see them quite active for both and in all channels effects and wealth line in digital auctions, we see them in the west that quite a lot on mobile app downloads on it and accumulate and sort of non installation base, but what we also see that the majority of this installation on that kind of incentive based.
The Bates and our.
We suspect that there and that actual results on a quite low audience engagement afterwards Francisco because clients are not buying installation piece right well it could be used as a market and government of course, but in the and clients are buying debt.
The video of going on candidates yes.
And if you look at the.
Our board.
And for active audience dynamic and.
You will see that kind of level of engagement and their audience compared to their installation base is extremely hard low compared to head hunter and because we effectively and a.
Half of our and Felicia base translates to move on.
Active audience monster.
All right and that actually deliver essentially rates efficiency for clients and we don't see the same dynamics by far and either from our water on off of work it costs and Thats a quite a lot on installations before we were not seeing them catching up and that's why we're not seeing dumped and grabbing revenue market share at all at least now we.
Oh I understand that on this operating CPI squid, b and leading indicator for future. That's why we're tracking down right, we are making conclusions and growth responding in terms of marketing and product, but so far there is no reason and should we see that there in terms of kind of candidate delivery metrics that they are getting gaining market share from us but.
But it's it's our comprehension.
Thank you very much very useful.
And your next question comes from.
And the true from.
Please go ahead.
Thanks, Mike.
My question on the dual.
Hi.
Well do you Mike.
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Feel comfortable or not so comfortable.
[laughter] flow.
Yeah.
And the Nielsen and next year on.
And you know what the dealer.
[laughter].
And.
And with the cash flow.
So on.
Thank you on on.
I Hope I got the question right because the connection was no profit.
And I said that Youre going are asking about the pricing strategy, especially in the beginning from this year.
Our our plans as we mentioned last call on our actual grow on prices.
Gross debt.
On the old products next year. Despite the recent introduction of New York substitution transition model will most likely not to grow a subscription price is.
And fewer axis non bundles.
But for other products, we plan to raise prices and we are we going to discuss this with our board of directors and on this months so part of our.
Budget from horses.
And most likely given we already on announced a significant pricing initiative for a few months ago.
Don't want to be going if.
First the too often on the on the from this prospective clients. So most likely we will do those price range is starting from Q on Q2.
And from April.
And obviously that will be subject to or the commodity situation because now were and all.
And getting gaining more confidence right about the vaccine and overall economic recovery.
And if actually continues this wade and will get higher confidence and we actually and push ahead and kind of.
Total higher prices and that's moving higher prices or if not what was that we are forced to fall where we are targeting in this environment. When we see a lot of new clients in the market. We are targeting connects our share in total client base.
And the four and that's what we're we're solving for.
But.
Considering today's dynamics, we reported profitable Walter price rises from April next year.
Yes. Thank you.
Hi, Thanks.
Your next question comes from.
Stuff from you.
Please go ahead.
Hi, everyone I have a question on and this revenue per cost and that especially incentives and segment.
And this comment on where you see in the fourth quarter and is it correct to say that you expect that it goes to growth.
And the net next question on and the on road shows could you please comment and leach on rate what you see there.
Which raises form best.
Thank you.
Thank you and Europe.
On primary sure. It's always you know this.
Share dynamics is always impacted by our customer base growth right.
Yes.
We are on that.
Many occasions, we acquire and client score.
I mean kind of lower first Chuck and so you may see similar to this quarter you may see kind of a total dilution of average check.
Especially in small and medium category, but that's that's going well compensated by customer base and.
Expansion.
And what we see now and Thats quite a strong growth.
Growth in up and customer base.
And therefore, I wouldn't actually give any guidance for the fourth quarter and so is the RPC you.
You might receive from similar.
Numbers that you've already seen in there.
And the third quarter.
And the revenue growth will be higher.
And we believe that.
Bolt on and kind of the accounts from turned on.
Small and medium businesses from we will see revenue expansion.
I would kind of from not to comment on that and RPC except.
On director and now.
And in terms of from.
Growth in sort on years, we're we we actually see and pretty strong.
Growth and all the regions.
And coal to Russia nationwide and we.
Yes.
Certain regions tore it comes.
And our heat a higher bar the economic recession. So was that they are kind of underperforming.
For example, and severe and.
But no dose.
Those regions will revenue came out earlier from the from low down.
For now on and it was down and regions, we saw strong and that makes the junior.
Generally across the board our regional clients, they're performing stronger.
Both key accounts and.
And small medium businesses in regions outside of from its important matters.
Thank you.
[noise] on their next kind of questions and once again, it star and Wonder if you would like to ask a question.
And Weve received no question.
Thanks Sarah.
Thank you.
Thanks, Phil and Mike.
Thank you for the color.
That does conclude the presentation. Thank you for joining you may now disconnect.
[music].
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Yes.
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And.
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And.
[music].
Hello, everyone and welcome to head Hunter Group third quarter Twentytwenty earnings call on the call today, we've got from if I look at our Chief Executive Officer, Gregory May save our Chief Financial Officer, and maybe sort of young our chief strategy Officer and press release containing our third quarter Twentytwenty results was issued earlier today and the Cook and may be obtained through our.
Our website at Investor Day, what age and <unk> are you.
Now I will.
I'll briefly walk you through the Safe Harbor statements. This discussion will contain forward looking statements actual results may differ materially from the results predicted or implied by such statements and forward looking statements made.
Made today speak on the to our expectations as of today, we undertake no obligation to publicly update or revise these statements for a discussion of some of the risk factors that could cause actual results to differ please see the respective section in our annual report on the form 20-F for the year ended December 31st and thousand.
Line team and our final prospectus in connection with our public offering that was filed with the U.S. Security and Exchange Commission on June 16th Twentytwenty.
During this call we will be referring to some non life or EPS financial measures a reconciliation of the non I from a financial measures to the most directly comparable I for EPS measures is provided in the earnings release, we issued today and the slide presentation each of which is available on our website at Investor day on H H are you.
Now I'll turn the call over to me high yield to make a Greek opening remarks.
Go ahead.
Oh, Thank you run on and good afternoon, everyone and welcome to todays call.
We believe that our performance in the third quarter confirmed the statement that efficient remote solutions in such an important function as recruitment of vital for and enterprise Julie.
During this challenging year, we managed to grow our customer base, serving almost 290000 companies over Russia and the CIA is since the beginning of the year. Many of our clients have adopted to remote operations and now conduct hiring entirely on line importantly on.
With timely recovery and measures helped us to gain market momentum and accelerate growth even despite the impact from the second wave of COVID-19, we are glad to see all customer segments return to expansion and keep improving week. After week. This gives us confidence that once we have finally out of food.
And businesses regain confidence and future we may reach our strategic targets, even faster than we thought before the crisis hits the market in March and now I'll turn the worst of metering to walk you through the key highlights on the third quarter. Thank you.
Thank you and Hello, everyone.
And he has said and the third quarter, we continue and demonstrating and steady recovery and across all major a grazing and financial measures.
And was on against the backdrop of continuous economic both you and Jim and.
And specifically in terms of and you see these inflow with or a net for the improvements with double digit a union growth.
Our total number of Cvs and the platform reached 40 million, indicating net acquisition of 4.6 million CV since the beginning of the year.
And this new active for audience acquisition, coupled with our sort on product improvements, resulting and growing number of application that you can see on which is one of the main efficiency great theater for our clients and a simple to enable our forward when utilization per month.
On audience growth as vital, especially for put into context over revenue recovering and Blair activity, Jim and since the beginning of September the average daily and number of job postings on the platform hold on historical high range of our stock was 720 740 seldom balance is and again that was so despite the Kinda Force Inc.
Got it 19, sedation and autumn we.
We believe from what we are actually one off a weighted if you jump platforms globally has reached and even exceed its pre crisis and entry level because so many I will be your squabbled is struggling because there was inventory and this time.
Due to our constantly improving source of income additional embedded and we've managed to sustain high conversion from applications on the patients.
Total without compromising on GLEI and efficiency and doing just a scale expansion.
Debt encouraging dynamic and operating metrics during third quarter translated and someone set of financial results.
Our revenue grew 7.7% year on year, and our core Russian segment revenue grew even a higher 9.1% year on year.
All right and the deeper and see the burden and explained by the continuous political turbulence and dollars.
Our either adjusted EBITDA margin was up to 56.1 per cent for 53.5% and 19.
Mainly due to a reallocation of part of the marketing expenses and later this year and some ongoing undergrads measures that were eventually lifted in the fourth quarter of two integration.
Got big adjusted on office, and Novation cost was around 2% and reported.
Most of our capital expenditure and reached its a whole different discouraged as you know.
And solid performance by product type, please turn to page five on.
And as expected the most rapidly recovering product was job posting growing 11% year on year as our key accounts a resume their harding possible down and then whats important to small and medium business catsuit bones back off the sharp fall and Q2.
Are these dynamics will also supported by our aggressive pro more or target that most effective marketers.
Bundles subscriptions and other time group to be highly stable and predictable part of our business and.
Despite we are currently absorbing significant growth and you wont do on contracts Activations to take a certain time before and finds reflection revenue numbers. So you can't you don't see it in this numbers yet.
I see that the base.
Axis being exposed more to a small and medium and segment buying one and seven day duration finally returned to growth as well and we expect it to accelerate in Q4.
Oh of course, there can be no impact from recent transition to new subscriptions model yet, although we see first clients migrating to maybe go into contracts and so far we don't see visible and quite sure growth for this transition.
Our strong performance and value added services, mainly explained by high share for subscription based a lot on revenue and predominantly from Ikea accounts acquired and greater some branding products we.
We also saw uplift in a retail demand flow on price for Grad performance product works, what and holder that is driving a boss revenue share and thoughtful.
Turning now to Q2 result by customer segment. If you can find on page 678.
We saw revenue and according to growth across all customer segments.
From a customer said each line of Russia were added on to less impacted by the on Dentek and keep growing faster than Moscow and services.
Importantly, and revenue growth was mostly driven by the increase and number of paying customers across all quite and caterpillars and that explained by intake of both new customers and the customers are starting post crisis, but.
Total number of customers grew more than 10% year on year.
For the accounts ARPC was affected by growing customer base is a set especially and lesions and therefore diluting net as Chuck for small and medium businesses apart from a intake and use more customers ARPC was affected by aggressive possible down promo and we are extra Cummins that this push up important new.
<unk> from acquisition, what is going to impact our revenue share and going forward.
And now his Gregory talk about other financial metrics.
Thanks, good anymore and flow everyone.
Let me give you some detail on the expenses on the margins and.
The third quarter of Twentytwenty here.
Total operating expenses grew 8% year on year. This was primarily due to expenses related to our EPS people restrict your enjoy what answered weighted.
Our total adjusted operating expense, which excludes IPO asked you want to weighted expenses that could just settled awards sales. The other loaded on their items were actually flat in the third quarter two answers when share compared to the third quarter two inch and led to you.
For convenience, we actually added to the adjusted operating expense reconciliation table and our press release from this quarter and I will refer to be adjusted operating expenses and the discussion of dual so as I said the total adjusted operating expenses are flat year on year and this was the combination will flow several.
So a lot of directional collectors.
First our personnel expenses adjusted for records and settled awards and low Chris purely on that spreads are covered on 61 medium, which was an increase British American land per cent year on year most.
Most and due to a indexation wagers from the beginning of 2020 and an increase in headcount tool and concert and plays and the third quarter, two and just when you compare two circuits, so and with and seeks to people.
In the third quarter of 2019.
In Twentytwenty and the third quarter as we saw operating and the financial expense performance during and back on track we have resumed.
Bonuses for our employees as well as listed on Clarins Ben.
However, some personnel expenses such as comfort the wells and trade names or litigation are still on a whole partially for late April.
Reasons.
And on the wins from Washington expense as you saw from the release in the third with our Twentytwenty markets and also from for third quite easy on which was a decrease by a circa two and 2%.
Versus markets and then the third order.
In 2019 now this decrease was due to a derby is due to a different allocation on our TV company as we have allocated significantly more it adds to the second quarter and less total third quarter includes here compared to two and might achieve.
In the fourth quarter, we in sales to spend more on the indeed in the third quarter and as I think we've discussed on previous calls we stick to our people and the marketing expenses will be relatively a flip in the second helped went it wedge and compared to the second quarter 2019.
And lastly on or other general and administrative expenses adjusted terrestrial and as a professional services and other.
On a central is actionable costs are up to profits and the eight meal uplift compared to 203 million and for third quarter, two and lay a team and as a percentage of revenue adjusted EPS other gently remind ourselves relative flat compared to line up for sale in the third quarter.
And you might as you.
So as a result Oh.
Our adjusted EBITDA up would be a third quarter Twentytwenty reach circa 1.3 billion rubles features on increased by 13% compared to the third quarter two inch and my team and our adjusted EBITDA margin has also expanded by circa three percentage points to 56.1%.
In the third quarter expenses went you.
Now moving on to that this is Jim I think said before in the second quarter rented Wenski, we have substantially completed our large project on.
Our last quarter's results and as a result, our capacity of the third quarter ended Wednesday, It was 17 medium.
I will switch and Dong boy when she led to sales growth versus previous years same quarter.
And as a percentage of revenue.
It was a historically a euro level sure to 3%.
Revenue, which was the usual low for us over the years.
Our income tax expense increased price and went to three meals, a day or why circa 38% compared to the third quarter 2019, which was primarily due to increase in the effective tax rate from 1%.
And this was wanes and because of the non deductible that's too early and professional services and also they also will be a provision for uncertain tax positions in the third whether it was two and if you might be.
Excluding these effects will be effective tax rate for the third quarter expenses went you have been on 28 per settled.
Now turning to cash generation metrics, which are on page 11, and our supplementary slides debt.
And the nine month Twentytwenty, we generated circuit to be on rubbish roll up recent activity as compared to approximately 1.7 billion in line.
2019.
This increase was mostly due to a decrease and interest paid on the back on.
On the decrease on the key range.
Total bank with Russia.
We channel we're back low interest expenses stayed tool and also a decrease in income Dutch grades and other changes and working capital.
Net cash used from investing activities was 181 million in the nine months 2020 it compared to 494 really and used in the same period last year and this was mostly driven by their position on interest in low steel us, which we concluded.
19.
Net cash used in financing activities is in line.
Third quarter growth story over the nine month strength and that Twentytwenty was up 2.7 billion rubles, GAAP virtual 2.3 billion in the low Twentys my team.
This change on 401 billion rubles was mainly due to an increase in annual dividend, which we paid in September two as well and this increase was partly offset by repayment of low two and associate non accrual true over Wade.
On March 20, managing.
As a result of is.
Changes and cash our net debt was so low.
8.1 billion from this is on September 30, Twentytwenty flow.
Net compared to three B and as of December 31st weights and lighting and the leverage also remained flat and is currently 0.8 times and though.
Additionally, in the third quarter of Twentytwenty, we have agreed with BGB, but to expense the ultimate maturity on our deals from October two and just mentioned dual dual drilling to answer too and you flow.
As well as Uh huh.
We agreed on temporarily relaxations on performance covenants to account for it or with Lance you you back to low performance.
While interest rates on our credit facility remains unchanged.
Thank you and no like true opening the floor from acuity.
Thanks.
And gentlemen, and she'd like to ask a question.
<unk>.
Thank you.
[music].
I want to ask a question.
So.
Your first question comes from either on came from mix.
Please go ahead.
Oh, yes.
And two questions from my side please.
Firstly on the revenue growth translates week. So can you. Please talk about the revenue growth trends and that's over and November fortress and.
And then secondly on see.
Industry fixation changes.
Is there more clarity on how these changes will reflect on your business and maybe also your business.
Youre right sales, thanks very much.
Thank you one and Oh.
Take the first one on greater deal was net in the second on the revenue trends a little.
Looking at our Oh what.
Wonderful day numbers and we can kind.
And free up from our previous guidance given at the last call for and.
For the fourth quarter, we expect on a solid double digit growth.
Revenues, and we actually expect a double digit growth across all.
Market segments.
We actually see a weighted strong trend and a recovery and growth in our key accounts.
Both on regions, especially on the regions extra and will from Moscow, and a growing already or 20% year on year and also quite pleased that are kind of lagging I'm was probably much and get her heart business was that kind of hit the most during cries and some most growth.
And on B is working small and medium businesses. They also started growing per ton nicely already almost reached the double double digit growth. So we kind of reaffirming guidance and a belief that yes, weve and tracking our original expectations pretty comfortably.
And I and lower to riveted on answered and sandwich.
Yes, Hello, one.
Is your low the these initiatives were actually and Luxoft and.
They are effective from January.
First when share 21.
This includes reduction and the income touch and the.
Social success as well as so.
Emulation over zero percent VPG rates are low.
On software unless some criteria and web.
I think what's important.
And look for our industry is that the legislation and actually it contains a specific provision.
In relation to leave each year rates.
Which says that.
In case, the software is used for a factory or for.
And from riding on the platform right. So true sided business I Trust our sales.
This effect and really is a.
Low to the kind of activity, which is subject to zero percent between.
And so we believe that the legislation and actually clarifies that.
One way and recruitment is not on platelets towards your share between so from lease position on with thinks that the competitors will need to adjust for this new legislation from January 1st well.
But oh, let's let's begin we do not have the.
From a confirmation or so therefore, that's information that the.
Companies like Super joke, restaurants, where argues and dessert sales volume.
Exemption.
We'll move to <unk>.
20% of each day rate from January.
We'll have to wait and see out there for us.
Price this will change.
Also as you probably heard and we know that there are ongoing discussions between.
On the community and the governments on expenses is your sense of the G.
Right on.
Effectively on.
Platforms.
Such as ourselves I think as low and.
Probably.
We will we'll have to see how this process also.
Ultimately turns out.
All right. Thank you very much license on recovering from quarter.
And your next question comes from.
That's true Goldman Sachs. Please go ahead.
Hi, yes, thank you and much of the presentation.
Hello, Directionally think about that trade off on the revenue growth and margins going into Twentytwenty, one well so.
Your next year should be good and see you do from that standpoint.
Thanks.
Now looking to support that goes with high marketing and potentially product investments and just any thoughts that action and it would help.
Hello, and think about and margins for the next year and it will be established.
GAAP.
So lots of moving parts here.
And also secondly can you highlight seven unit growth and threatened.
See I mentioned on the back of that on Danny if any and so on.
How are you positioned for them technologically or simply do you think that some of it is having a net positive for and that negative effect on the business over the longer on thank you.
Yes, the Guildhall I wish leftists does this this is gregory and probably it from where it is you will last from me whaler.
We are currently and the budgeting process from 20 to 21, and I think it's kind of been through their true.
To give you any if you.
Even directionally.
And.
Information on this book.
Also I think you are right about the.
From a revenue growth for the low.
For the expense 21, but as sales line. There's also on the effect on the kind of low cost ways for Twentytwenty when well as you know we have the some cost savings rates and apparently this well was from give some pressure on 2020 one on the go.
Total as well.
Yes.
And our slow and zuma on on the on your second question.
Look I don't think we are really notice any incremental trends that we have noted before and during the first label in London and.
And I think we kind of from to some extent we're happy.
Being the rewards from our investment into their technology and product and platform. There were suffocation that we've already started three four years ago.
Right, when we kind of redirect our product and marketing efforts towards these newly emerging Blue color segment would you say that accelerated during the crisis and are now where are seeing our factory job postings in blue.
Or area growing 4% year on year and already reaching nearly 50% of top of onetime items. So obviously they pandemic helped this market actually true.
And the Foster tour on line.
And hopefully have once they adopt a new and for.
New services, they will kind of remain in on one I because the efficiency on one line services, we hire them off line.
So from that perspective, and that's kind of the most tangible inc.
Influence from the pandemic and a positive thing and the negative way, we will however, as because obviously with the vessel can grow will foster a fair.
Business had.
And higher confidence and tomorrow.
And also are there sort.
Stuart on kind of a patterns from OCC winds that where is to digesting how sustainable that will be in line.
And Graham enforceable remote.
War Cry that award from area arrangements was we see that now when you acquire and stay and they decided or considering you meaning are quietly on kind of hybrid.
On the remote.
A four hour ride and that's completely different Oh, let's say the pattern and that requires a certain product solutions, one hour and as well and that's why we decided to push ahead was there we do interviews to be decided that we really need to pay higher debt.
And talk on temporary workers, especially considering translation changes right and we'll see that our competitors and moving in this area and we believe that that's a big opportunity to Adobe also spurred by their bundle Nick.
And also legislation development.
So so far we really see a kind of more benefits for the longer on.
ER development and that's why and you mentioned in the beginning and carry Martin that we'll make sure each hour kind of penetration targets foster they'd be thought a year ago.
Okay. Thanks, so much.
Our next question comes from Carol.
And from Renaissance capital. Please go ahead.
Yeah, Hi, everyone. Thanks for taking my questions two from me. Please firstly.
Firstly on competition it looks like some competitors have caught up with headhunter in terms of listings and have been showing materially higher growth rates and so could you comment on debt competitive dynamics whats happening with your market share and do you see any implications for growth and margin outlook.
That's the first line and then secondly, just a quick follow up on your comments around marketing costs in Q3.
Could you could you talk a bit more why did you decide to spend less on on marketing and.
I thought you were previously talking about the blessed to be quite aggressive during the market recovery in order to true to catch some extra market share gains. So just trying to understand why it wasn't the case and.
The Tech watch and that's it thanks.
Think group.
I'll answer the first one.
On competition and well first of all as you know leasing numbers. There there are good indications, but they don't really provide for future and ride begun they're much more well dial.
And the easier to kind of influence.
In the shorter term and.
Then for example revenue.
But talking but particularly in terms of leasing and dynamic and they can say so first of all as you saw we kind of each day on historic high number of inventory on our what form right and.
And we already here.
And if beyond the levels, we saw pre crisis. So that's good and that was held by as I said the way Bluecollar acquisitions.
In terms of kind of relative performance, we don't really see that any.
Any of our competitors eye catching up in terms of listings of the low.
Longer on because I don't I tried to explain it also you might actually be referring to other names, but I think first of all we're talking of each day and on Superdrug here right.
And I think on a beat on it.
It's.
To some extent, it's actually two factor as we understand are they did definitely demonstrated bridges from dynamics over the last three months to four months and.
And force a reason why.
Was that debt they dropped the collapse and take the duty and crisis. They as you know their business is usually skewed towards new course, this effect and 100% real color on all skilled.
And the unit three in that area are actually controlled by more than 50% you'd and crisis. So it was a hugely like low base.
And obviously it was a kind of a faster recovery right and we see this and in the Blue core area as well and but our numbers are kind of average, including and white coerced who were kind of proved to be much more resilient and during credits.
And that was the first thing and second a deep that historically and always will last.
Okay. Three four yes, when we basically launched the monetization and in jobs. So they always have a peak numbers in during summer season, and just because.
They.
No they are present quite strongly in.
On growth and accordingly.
Hi, this effect from that there are two other two factors a low base and the kind of rebound and ER.
The summer season and.
And we expect them to kind of normalize over time and even if you will cut the or lost last month that index was already kind of declining somehow or on 10% and expected to go on sort of down.
Thats on either.
And we don't really see that they are gaining market share and in terms of blue collars that probably on par with us, but they are not present and white horse at all.
And so the soup and job that's the kind of traditional quite traditional threeg we.
We saw this last year and viewed member will end of last year.
Circuit Hoffer, so good job count on these the religion or aided by dozens of clients right 20 day bench top line if.
If you look at our our vacant space or top 20 clients contribute from them.
Simple marks on 15% and so it's much more robust diversified and sustainable on loan growth was once you kind of rules this content.
You talked to your you slippage of always shoulder and plummeting dynamics and.
We saw this day in January and February right, and we expect it to go further down from todays level as well and that we already see this trend extra day was already kind of off peak.
And also we don't think actually this dynamic is somehow linked to revenue revenue performance and because they're definitely somebody decision and free plastics involved.
And I know if I answered your.
Your question sufficient.
Otherwise so on the way you definitely did.
Yeah, and you did thanks, so yeah, just a comment on marketing spend and Q3 would be helpful as well. Thanks.
Yes, Mike Ellis from Gregory.
Well.
Basically we are definitely not kind of reduce on our stopping or.
Market and activities for instance in September more specifically.
Specifically we are already.
Comparable with the last year level in terms on the.
On the TV ads on spending.
I think its.
To some extent its share kind of low from optical.
Optical we're seeing we're seeing here in the third quarter.
As you remember, we were told and drill that the.
We would like to invest more upturn immediately after a little low Dell ended and weight and we've done on it. So in Q2, we spent more on TV and specifically in weight.
Well.
We usually spent virtually nothing just because it's a very sleepy all day month and in this year. It was the opposite.
We spent a lot more than usual eight per month.
The specific months away.
And so therefore, it just turned out that and.
From first half of the year expense is rather fight.
The question is are we kind of allocates or on the subsequent months right and the decision on is that were low prolaris slightly reduced August and then.
Go back on track from September and.
Oh, we know are.
Going to spend I think.
While significantly more I don't think I have and true.
Disclose how many white specifically what are you and spend more in Q4 on TV and.
And with deep into the third quarter.
And I think as we disclosed in the release.
As a result.
Total expense in the second quarter will be.
Affordable to the last year.
And so we will have the some growth from for the full year results as well.
Okay. That's clear thanks a lot.
Your next question comes from.
And company. Please go ahead.
Hi, Thank you I have two questions on sold the first one is the just thinking it's OK on your large and is a base I guess, you're looking to expanding to other complementary segments like lumpy anymore. What line courses to further monetize the base and.
And the second question follow up on kills question on competitiveness basically and maybe if you could.
Freud some color on the rubber total market share and wouldn't notice they specifically increase their marketing budgets and the range of them quench, especially on the TV just interested it goes.
Some success on the gaming.
Thank you very much.
And thank you and me three.
Oh on loans for more questions on.
First the yeah.
Total debt writes a kind of expansion beyond our traditional markets been.
Always sir and.
And part of our growth strategy right and maybe not.
In terms of revenue or in the shorter term, but are in terms of who and longer term growth for on a wait and.
And we are all and on a GAAP constant who called for a price changes are specifically on freelance we look at this and two years ago, We decided the market is not.
Really sizable in Russia, and you can't really big look on.
Deal the operating anything sizable and on our kind of drug and.
Grand scheme of things.
And in terms of education, clearly, it's a kind of strategic air for us and we have been discussing with number of our potential partners and targets.
Certain time and.
I can read and give timing, but are you kind of an index for five years on have quite high confidence that we may actually be present in the in this space because it's also quite synergetic to employment and that's growing and it's quite potential growth sizeable.
And the other areas as well all right automation for example of temporary workers as I mentioned on.
On boarding and other areas definitely will be being height and simple these areas and our.
Deal with that either wire acquisitions or internal housebroken.
On a more to share.
Similar to other players shares a day.
To be honest I'm delighted to report that we can means commission kind of assessing market share as was the time over and IPO and and since then I don't think there is a really good.
From a good financial numbers from manual players and they.
Before we kind of try and find a any proxies that would be good.
Indicating the revenue my remarks heard anaemic, Sara first of all the low cat traffic and content on line.
On our bought on.
We obviously seeing them as the most active spender and the market for first on time.
Total breaks and by the way but.
I think they probably spend the most.
This year.
And ER, we see them quite active for both and they will all channels effect and wealth line and digital auctions.
We see them and west that quite a lot on mobile app downloads.
And I can wait and sort of non installation base, but what we also see that the majority of this installation and that kind of incentive based on the Bates and our we.
We expect a stack them and that actual results on a quite low audience engagement afterwards, Frances because clients are not buying installation piece right well it could be used as a market and government of course, but in the and clients are buying debt.
On the video button on candidates yes.
And if you look at the low.
Our board or kind of active audience, they lending and you.
And we'll see that kind of level of engagement and their audience compare to their installation base is extremely hard a low compared to head hunter and because we effectively and a.
Half of our and Felicia based on fleet store on.
Active audience monster.
All right and that's actually a deliver essentially rates efficiency for clients and we don't see the same dynamics by far and either from a were brought on over working also invested quite a lot installations before we were not seeing them catching up and that's why we're not seeing dumped and grabbing grabbing market share ITL and at least now we.
Oh I understand that on this operating keep your eyes could be and if leading indicator for future. That's why we're tracking down right, we are making conclusions and growth responding in terms of marketing and product, but so far there is no reason it should see that yeah in terms of kind of candidate delivery metrics that they are getting gaining market share from us but.
But it's it's our comprehension.
Thank you very much very useful.
Your next question comes from.
True.
Oh.
[noise] microcephaly and all the deal Oh.
Hi.
And.
Mike on that.
Feel comfortable or not so comfortable.
Oh.
[laughter] and.
Neil from next year on.
And you know what's yours.
[laughter] assets.
And with the cash talk moms [laughter].
[laughter] zone.
Thank you on on well.
Well I hope I got the question right because the connection with no profit.
But I and I set up you work on are asking about the pricing strategy, especially in the beginning from this year.
Our our plans as we mentioned last call.
Actual growth prices gross.
And it's really old products next year.
Despite the recent introduction of New York sufficiently this model will most likely not to grow a subscription price is and fewer axis non bundles.
But for other products, we plan to raise prices and we are we going to discuss this with our board of directors and on this months so part of our.
Budget from horses.
And most likely given we already on announced significant pricing initiative for a few months ago, we don't want to be kind of and.
First the too often on the on the from this prospective clients. So most likely we will do those price range is starting from Q on Q2.
And from April.
And obviously that will be subject to or the commodity situation because now we and all.
And getting gaining more confidence right about the vaccine and overall economic recovery.
And if actually continues this wade and we'll get higher confidence said, we actually and push ahead.
And kind of.
Total higher prices and that's moving higher prices or if not what was that we are forced to fall where we are targeting a in this environment. When we see a lot of new clients in the market. We are targeting connects our share in total client base.
And the four and that's what we're we're solving for.
But.
Considering carried the day dynamics, we repurchase comfortable Walter price rises from April next year.
Yes. Thank you.
Hi.
Your next question comes from.
Uh huh.
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[noise], Oh, hi, everyone. A I have a question on administration and the costs and that especially names and ER segment growth.
Let's come and on where you see and fourth quarter and is it correct to say that you expect that it goes on so can go.
And the next day next question on the on road shows could you. Please comment on beach on what you see there.
Which raises.
And last.
Thank you.
And thank you from Europe.
On primary sure. It's it's always you know this share dynamics is always impacted by our customer base growth right because.
We and.
On many occasions, we're acquiring GLEI and score and.
And kind of lower artist Chuck and so you may see similar to this quarter you may see kind of a total dilution of Robert as Chuck.
And especially small and medium category, but that's that's going well compensated by a customer base expansion.
And what we see now and that's quite as strong a growth and enough and you've got to meet.
[noise] and.
Before I wouldn't actually given you any guidance for the fourth quarter and so is the RPC.
You may actually see and similar.
Numbers that you've already seen in there and.
And the third quarter.
And the revenue growth will be higher.
And ER, we believe that bolt on and kind of the accounts front and on on.
Small and medium businesses from we will see revenue expansion, but I would kind of from not to comment on the on RPC except.
Our director now.
And in terms of from growth in their sort on years, we're we we actually see and pretty strong.
Growth in all the regions.
On the call to Russia nationwide and we.
The certain regions toric and.
[noise], our heat a higher bar the economic recession. So was that they are kind of underperforming.
For example, and severe and.
But no dose.
Those regions will revenue came out earlier from the from low down.
For now on intermodal and regions, we sold and stronger than anything but junior.
Generally on a accruals the boards to our regional clients, they're performing stronger both key accounts and the.
And small medium businesses in regions outside of Middle coordinators.
Thank you.
[noise] nice kind of questions and once again it starts on one if you would like to ask a question.
And she's Nemo question.
Thanks, everyone.
Thank you.
Okay.
Thanks, Mike.
Thank you for the call.