Q1 2021 HeadHunter Group PLC Earnings Call
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Good day and thank you for standing by welcome to the first quarter 'twenty 'twenty 1 financial results conference call. At this time all participants are in listen only mode. After the speaker's presentation. There will be the question and answer session task of question. During the session you will need to press star and 1 on the telephone keypad please be it.
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And I'd like to kind of the consists of almost the first speaker of today robots. If you go on and please go ahead Sir.
And Jim and Hello, everyone and welcome to the group first quarter 2021 earnings call on the Gulf of day, which gives me high on Zucker, Our Chief Executive Officer of Gregory might see of our Chief financial officer, and really sort of the M.
Because of our Chief strategy Officer, and press release containing our first quarter 2021 results was issued earlier today and of course, he may be obtained through our website at Investor day. The H as you thought are you now.
We will go through the Safe Harbor statements today's discussions will contain forward looking statements actual results may differ materially from the results predicted or implied by such statements and forward looking statements made today speak only to our expectations as of today and we undertake no obligation to publicly update or revise these statements for a discussion of some of the research.
After the could cause actual results to differ please see the risk factors section and our annual report on form 20-F for the year ended December 31st 2020.
During this call and it'll be referring to some of the night for the financial measures. These non <unk> financial measures are not prepared in accordance with I forget the reconciliation of the non life of real financial measures to the most directly comparable <unk> measures is provided in the earnings release we.
We issued today and the slide presentation, each of which is available on our website at Investor day, a change of that hurt you.
Now I'll turn the call over to me for you for opening remarks. Please go ahead.
Hello, and thank you Ramon and good afternoon, everyone of.
A year ago, we were at the points of great uncertainty and couldn't imagine how much stronger our business would emerge from this crisis. So today, we're especially happy to deliver a solid set of financial and operating results.
The positive market trends this year keeps driving businesses confidence up resulting in ever increasing competition for labor and.
And this environment of short supply employers have to allocate the budget towards the most effective recruitment channels and that is the way we see over 1 million extra joke bankruptcies on our platform right now.
Recently, we consolidated all of ownership and HR Tech companies Skus, which we believe would result in foods the expansion of our business beyond GOP advertising finally, as we have seen fundamental trends and strengthening we are significantly upgrading our growth guidance and also would like to reward osha.
Holders with the 75% of 2020 net profit to be paid in dividends no alternative Missouri to walk you through the key highlights over the first quarter.
Oh, Hey, good afternoon, and thank you for joining us on this call.
All of the house the idea of we happy to reported an excellent set of results and Q1 I agree with you was up 42% year on year, even despite the relative limited a little bit the 6 debt fourth quarter last year.
Growth rates accelerated significantly and compare to Q4 across all client and product categories.
The adjusted EBITDA margin, including the blood the.
The game at 47%, while our core business EBITDA margin, excluding the block the reached 51% our capex comprise just 1 point of 9% of revenues, thereby contributing to a strong cash flow generation all of the quarter.
I will keep growing and dynamic is generally consistent with the previous quarter of jump ball things demonstrated the strongest growth trends and the first quarter and growing 59% year on year. The growth came on the back of solid and take on new customers, but you don't want the small and medium businesses as well as it does that 1 way and to differentiate it and musician apply to key accounts.
1 of the subscription ice TVD of debates the access demonstrated solid revenue growth of 33% and the way in your 5%, respectively, mainly driven by small and medium business consumption growth.
Even though our over 90% of our clients already migrated and use substitution of integration model the impact on our reading of the stages reality of small and we expect it to gradually accelerate over the year has had the users use up all their contacts and closed and the basic substitution and start kind of see when you go on a per contract basis.
The other services outperformance is explained by strong growth and the use of show of immediate ads and and price of performance products like virtual the colder both by key accounts and small and medium businesses.
We managed the accelerated revenue and growth across all client categories. The set.
Apart from rapid organic growth and head concert and Q1, we added the big part of unique customers from their blood on almost all of them were allocated on the regional key accounts or small and medium businesses.
For those customers, who are not unique to a headhunter has significantly increased the combined average revenue per customer almost doubling its growth and the regional care accounts and small and medium business category.
Cohort of dynamics remained strong with small and medium businesses acquired during 2020, increasing their spend more than 100 per standard of Q1, and the key accounts by more than 60 per cent.
Our key accounts revenue increased by 31% and the first quarter 'twenty 'twenty, 1 year on year and the growth is mainly on and see what the real to the age and percent RPC and growth driven by both a substantial enhancement and monetization and high consumption per customer, it's really nice to see whether the limited consumption of adjustment. Despite all of the amortization moves and the key.
Current segment and just give you a sense of the actual price empowered potential.
Small and medium on the revenue increased by impressive 56% and the first quarter, primarily because of the growth of the number of clients the share on with the knee Arabian you reached 62% versus Skipton and 7% year ago, our business day count more diverse and when the Lai market penetration keeps on growing.
Revenue and was concerned Petersburg increased by 36% while revenue from other regions of Russia went up by embracing of 65% year on year, and Q1, where each day of share of revenue was generated outside of Moscow and St. Petersburg on 61 per cent compared to 56% of year ago.
This numbers provided evidence of great attraction on the cross.
But to your growth areas as well as indicators of the potential that is still ahead of US now of his Gregory to talk about profitability on cash flow.
And I think the demand and Hello, everyone and.
And the first quarter 'twenty to 'twenty, 1 of our total operating cost and expenses increased by 37, 8% compared to the first quarter of 22 and chip.
Almost half of this increase is related to consolidation on the shop water.
And going by the H buckets all of personnel expenses increased by 45, 5% compared to the first quarter 'twenty to 'twenty and.
Most of the growth in sales buckets came from our main business, where we increased our head count by circa 8% or 6 to 8 people over the last 12 months.
All of this new higher and was the mostly in our development and sales functions.
It was smaller than in the same period last year of Jupiter.
Covid related hiring freeze and congratulate Jim.
We also have increased wages by circa 10% and the second half of 'twenty or 'twenty.
Additionally, our part of the segment has driven and approximately 1 third of the growth and our personnel expenses and the first quarter of 'twenty or 'twenty 1.
We also had the COVID-19 related cost cutting initiative and the first quarter of 2020 of which saved us approximately a third of 5 billion rubles throw of a reduction in bonuses and the which does not occur and in the first quarter 'twenty 'twenty, 1 and thus also contributes to the growth in our personnel expenses.
As a percentage of revenue our personnel expenses, excluding share based compensation and other items.
And have increased and the first quarter of 2021 by circa of 1 percentage point to $27.5.
This was the result of edge of Kris and personnel expenses as a percentage of revenue and our main business, which was offset by additional of surplus of the segment and reach of personnel expenses as a percentage of revenue of Esquire and.
And as far as Covid related savings and the first quarter of 2020 and not the cure and in the first call and talk quarter.
Quarter of 2021.
Moving on Oh, and Washington expenses increased by 39% compared to the first quarter of 'twenty to 'twenty 2.
More than half of this increase was attributable to sort of pull out the consolidation and.
Marketing expenses for 15, 5% of revenue a slight decrease compared to 16% and the first quarter of 2020 channel.
And this was similar to the personnel expenses and result of a decrease in per annum.
Mark and the expenses as percentage of revenue in our main business, which was partly offset by additional stock bought the segment and which market is spelled S. Prior as a percentage of revenue and general and also skewed towards the first quarter and lease here in particular.
Our other general and administrative expenses and the first quarter of 2021 increased by 17, 4% to 281 million of rubles.
And on the back of area on the hours of the quarter segment expenses.
Now a few words on margins, our adjusted EBITDA margin and the first quarter of 2021 decreased by circa 1 and the health percentage.
Percentage points to 47, 2%.
We saw sizable margin increase and our main business, which was offset by lower margins and on our surplus of segment due to a more accentuated revenue seasonality and timing of marketing expenses and this segment in the first quarter 'twenty to 'twenty, 1 which is why we think there's degrees of is not indicative of the.
Full year results.
We expect that in the 40 years and so what does lower profitability will continue to have a dilutive impact on the or margins, but this impact will be absorbed by operating leverage and whether its in our weighted business.
Moving on to other key indicators, our capital expenditure and the first quarter of 2021, excluding the acquisition of assets of scale US was 59 million or approximately 2% of revenue.
Which was a sharp decrease compared to a country and $3 million and the first quarter 'twenty 'twenty of primarily because our office fit out project was completed in 2020.
Oh, and net working capital as of the first quarter and decreased by $1.4 billion roubles to 1 of those $5.3 billion compared to 2020 year and primarily due to customer wants us and we received and the first quarter of 2021, and an increase and the other payables due to $630 million.
Consideration payable for the acquisition of <unk>.
Our income tax expense was 264 million and the first quarter of 2021 of compared to $231 million and the first quarter of 2020 ratio of circa 10% increase.
Our effective tax rate.
<unk> excuse me the on Claris short term effects was the 26% in the first quarter of 2021 same as in the first quarter 'twenty or 'twenty of olfactory began the bedroom short term effects.
And I will turn into cash generation metrics and the first quarter of 2021 wagering rate at almost 2 billion rubles from operating activities compared to $142 million and the first quarter of 2020 and theirs.
Growth was primarily driven by the increase on sales.
We used the circa $200 million in investing activities on the first quarter of 2021 compared to approximately $100 million and the first quarter of 2020 of them.
This increase was mainly due to the intra cellular 34 million consideration paid in the first quarter of 2021 for traditional on site.
And <unk>, which was partly offset by a decrease in the acquisition of fixed assets as we complete the tower and the operations in last call and the Eros, while the office and the second quarter of 2020 of them.
Net cash used in the financing activities was 258 million and the first quarter 2021, compared to 50 and lie in the.
The first quarter of 2020.
The change between the periods was primarily due to the repayment of bank on the other loans and the amount of $121 million and the first quarter 2021 lots of cure and in the first quarter 2020 due to Covid to later periods of total working days as well as 42 million.
So your spreads and our relation with the affordability and non convertible bond issue and the fourth quarter of 2020.
To finance the acquisition I was last quarter.
Our net debt decreased by circa 1 and to help union rumbles and leverage cash decreased from 1.2 times to several points. So in times of EBITDA compared to <unk>.
At December 31st 2020 of it.
Primarily due to an increase and cash balances from cash generated and operating activities and the first quarter of 2022 of them.
Now moving on to the dividend.
Oh It took some time this year to evaluate market situation and Cassandra and a strong performance year to date, we're glad to announce sales mix I would say.
And the full year 2020 dividend of 55 cents per share or plants and approximately 75 per cent of our adjusted net income for the year of 2020 of the.
The record date for this dividend is the dream lengths 'twenty 'twenty, 1 and the payment date is July 16th 2021.
We encourage investors who believes they are eligible to lower withholding tax rates on the double taxation treaty is to submit the relevance of communication to us and to apply for a lower floor rate plus the details on this process and our earnings release.
And now I would like to churn and the warrants back to Dmitry to discuss the keyless consolidation and provide updated guidance for 2020.1 thank you.
And then thank you Gregory and we're pretty excited and announced the acquisition of additional 40% stake and as he loves. This week, we wanted the juniors alcohol option rights and we received and the time of the original transaction. The 2 years ago I've had the pretty convenient and final decision timeline or we should skew us without held its day.
And that the revenue base by almost 10 times and evolved from a promising and see how would you start the up to 1 of the leading SaaS platform.
In the market.
We acquired 40% in Q1 from the waiters financial investors for 600 million rubles, and building the company and circa $1.5 billion and and blend of over 60% discount to headhunter filter embraer. The multiple so the implied price is quite attractive use of the way we structure of the goal of option.
Both calls the and cut hundreds of all 65%, while the remaining 35% will stay with the founder and CEO.
To remind you of skew us develop the cloud based AI and software, allowing and automate many integral parts of the recoupment process and significantly improve speed and of course per higher because of their product strategy. The skew us target watch of enterprises with complex recoup of growth of suits and high customization demands.
The company operates a highly attractive blocks of business model. The average contract duration of of 2.3 years, leading to high revenue visibility.
And we're quickly and scalable and our view of enjoying hybrids and leverage of Phoenix.
And went on scale and at the group.
Strategically, we believe that getting control of our basic recruitment of system is very important for headhunter future growth and this is expected to increase the client redemption.
Guy Day reported development strategy and also allow us to expand on the radios to each of the areas down the road.
And total SKU of separating traction.
The company demonstrated sound there was the key issue and then doing enterprise client base now heading towards the or feature and different industry segments and.
And therefore see the data's strong expansion of the contract portfolio and growing share.
Recurring SaaS revenue.
And for this year, we expect the company to at least doubled their revenue base is there pre booked revenue range of 21 to date already exceeding full year revenue of the integrated.
If you weren't smell of the market opportunity of the the addressable market for enterprise ETF solution is estimated to be over 10 billion rubles, which on the 7%. This current retaken by skew us and the smaller competitors are the bar.
The majority of the market steel use our data the legacy homebuilding system and lacking to compete with modern cloud solutions. So in terms of real impact on core regroup and keep your eyes.
This facilitates the rapid penetration of Softs Ags platform, we're seeing overall over 60% CAGR since 2018, but skew us has been the growing even faster and we believe that the company share and sausage as Mark has almost doubled over the last 2 years, reaching over 60% now.
Going forward being seamlessly integrated with our sourcing platform SKU lots with the represent the total unique customer proposition and Thats whats held there and benefit from the structural trends and graduate and grab the biggest share of the 10 billion market.
1 of the generally successful precedent of building sizeable and profitable business and this space globally and that's why we are really excited about these opportunities.
Finally, turning to our guidance to reflect the impact of the skyros consolidation as well as the core business outperformance year to date like to increase our revenue growth guidance range by 8% to 45% to 50% year on year.
And that does this for Q1.2021, we're now moving forward for your questions.
Thank you Dear participants we will now begin the question and answer session. As a reminder, if you wish to ask a question. Please press star and 1 on the telephone keypad.
The first question comes from the line of Slava <unk> from Goldman Sachs. Please ask your question.
Yes. Thank you had them on share for the presentation of a couple of questions. Firstly can you share your thoughts how much of the recent spike and vacancies is attributed to the temporary 1 off factors like the lack of new growth for example, and how much of the structural of development of like them.
Demographics problems in Russia, or digitalization across the industries that is happening on the back of Covid and.
My second question would be if you can elaborate on how you approached the addressable market definition and basically this 10 billion of global opportunity for scale of thank you.
The same things follow on things.
Discretions.
On the first 1.
And of trying to decompose the outperformance happened in Q1, well first of all sort of a 10% growth is driven by the cloud the consolidation right and.
And our estimate their own and 5% growth due to all basis the net.
The kind of was there 2 weeks a lot of the 2.
With the last year and the only.
And of March.
The rest of these are now where you is the are.
And our guiding growth and largely that debt is caused by intensifying competition for labor and just general and wine market.
Consolidation.
You you rightfully mentioned that the actually the market isn't the only really driven now by the kind of existing these balances are we believe that they are quite well.
And the mental and are well entrenched and the long lasting growth.
At the moment.
Of course, the as the market is kind of means balanced day, and unprecedented and employer and activity and acute shortage of candidates.
We see business confidence are generally going up on the back of the what's the nature of wild and just general growing consumer activities. So a lot of demand from new economy of especially for low skilled labor and such clear drivers morphs et cetera and the.
More of activity in January and in our in our estimate grew by circa 60% of.
While at the end of activity grew but sort of like a single digit.
Same time right. So the major trend that is the kind of behind this and why we believe it's quite from the mantle as the kind of negative demography prevailing in Russia over the last 10 years, there was a kind of amplified by the kind of and duration schools by low downs and because of its station employee population.
And especially in certain categories like weighted basis for each of the glide by the who will be 50% over 10 years.
And in the age of 24.25 of the decline was sort of a 25%. So this is actual the core labor force the target will the new economy, right and obviously the demand and it's coming from the mobile ads from ecommerce there mostly the targeting the these categories net are in the sharp decline.
And now you as you also mentioned the you adding to this the circle million immigrants all 4 of that hit the construction of Needless to first of all of the model. So e-commerce and the new economy and also the ease of Japan and a general on getting the so the employees, we see the authority job and this environment, so that probably the debut.
Kind of on rolled back overtime, but the overall MACRA and the Democratic sedation and I don't think of it will change and we probably just answering the face of the very kind of gains of the centric market.
And so that is kind of forcing large companies advertised the big a number that can see it's more intense of the use of new channels and its immediate and turning the online when the expedited manner.
And so we all we see this kind of the actual daily beans, and the south.
We'd mash of disappear overtime as the kind of the situation normalizes and try it and the employees become more again more willing to the belief, but the vast majority of it will stay for some years.
That's the answer to the first question and second the addressable market are we actual D. The certain of its kind of bottom up research and we'll look at the companies in the market. The profiles that we kind of created the target profile for the systems like the skew us the caterers and so.
<unk> ended up having circle, 1 of the house thousand companies and kind of.
And the biggest 500 from every day leased and then.
Most of them with more but still quite big enterprises, and we look at their existing solutions and the potential kind of average check. The there's these companies could be just full of the best example, and in the industry right because we see actually the hour skew us affects the improves the cost a bit higher.
And the company. So we believe that do Addis who just follow suit.
And actually we just did it 1 of them up and multiplying the number of clients by the average check through the end up having the 10 billion and and all of you.
It's quite a conservative estimate we believe that this kind of total and Goldman spent with growth of the of course, we we kind of apply a pretty small check I think the Jack would be even the big overtime.
Thank you very much.
Thank you. The next question comes from 1 of Stephen Ju from Credit Suisse. Please ask the question.
Okay. Thank you so much so when you talk about the overlap of the scale of client versus the headhunter acquire it seems like the overlap should be.
Among your perhaps that the larger of key accounts and I guess from an integration perspective, when do you anticipate that your salespeople will also begin to sell at the scale of this product.
As well thank you.
And the face and Stephen this is <unk> here again.
In terms of the water lap, it's actually 100% overlap because the the really target the blue chip clients and.
The way it is small.
The exemptions, we actually sort of all of the debt market and though in its entirety. So we don't expect the 80.
Clients of various key less to be and that's not using basic headhunter services and it's rather actually of more for us to up sell of Skus Protos and <unk>.
We actually have been working with skew us for for 2 years, 3 and the right, where we I think we're quite and good shape in terms of understanding the differences between the selling car and marketplace and.
The access brought on 2 versus the SaaS product.
And the automation product because of the later I shall requires quite a lot of kind of client work for maybe a month or 2 although even technically it's a lot of automated on the on the scale of side as I said, but steel and extra requires what is true and kind of customer success. Our team. So from that perspective I think of.
It would be off the skew is to build up that the capability, mostly and we see our sales force rather than kind of lead generation and force keyless right, because we have Chris and deepen client.
The I look we understand their needs and we kind of identified the need first and.
And then we kind of transfer of debt.
A very professional and very focused to own the SaaS sales and supports by skew us and I think the definitely but we had already been doing and the.
Some successful upsell on our sites and on site and we'll just kind of roll it out further.
Okay. Thank you.
Okay.
Thank you. The next question comes from the line of Ivan Kim from ex Tellers capital. Please ask the question.
Hi.
Just kind of talk about the longer term outlook.
So I guess, it's just doing it on what you've been talking before you reached impressive 1 year lines of forcing some of your platform.
And but what is an accidental shapes and do you see.
All of these sort of next year of significant upsides of risk and this number so kind of liquidity the kind of increase significantly and further from here.
That's the first question.
The second question on the Skyros.
Do you expect it to reach positive EBITDA and what would be the state of the state of the game of margin in that business.
And lastly, just on.
<unk>.
The marketing expense so that was 16% revenue. So I was just wondering what should we expect and the remainder of the year of your comfortable just.
Providing some of sort of estimate of marketing to sales for the year of the whole. Thank you.
Yeah.
And thanks, everyone and I think of the merger here I'll take the first 2 and then.
Good day will come and the marketing.
Look I think the we clearly kind of revising the moment our longer term targets alright, because the it was always the bit of a kind of unknown zone, whereas the potential and these are.
Especially small and medium businesses, the penetration and when the market is going to saturate now and we see with the dynamics that the they've been and absorbed the last half.
Half of year.
The starwood definitely should be revised upwards.
And.
We we believe that with the level of digitalization in Russia, among the population.
We should be actually exceeding even the kind of European and benchmarks set by the company's life, that's the owner and seek some.
U S. Examples just the because of the pace of adoption at the moment and the Kansas had been to Asia, which is most important and so I think that that should result in the kind of accelerated adoption, especially from small and medium businesses.
I think on the kind of general growth upside and it is a big chunk of it and it's a key.
Key accounts and monetization.
And I think are in the environment the debt there as I said, we are entering and it's kind.
And if it's much more favorable to.
And execute our monetization strategy, so I think from that perspective.
We also now are kind of revising the our monetization plan and doors the acceleration.
And then the third 1 and I think the kind of third pillar of what will grow as the entering are the other areas of the each are and I think that the situation that is happening at the moment that should also spur the and high demand not only in sourcing of the candidate, but also in the and the processing and just the increasing overall.
The efficiency of the process and I think the that's highly beneficial for each of debt market and that's why I think debt in the in the longer on and should also benefit the <unk>.
<unk> keyboard and.
And the others so.
And I think we we actually see the of course, there and we may not be experience of these type of growth quarter over quarter 4 of gallant the long storm right and at some point of albeit small deceleration of the set the market normalize, but I think the in terms of gains achieving longer term targets I think where we've really.
And we kind of a few steps ahead of our on plan 2 years ago.
And on the EBITDA from ski lots of I think the quick quick answer where we're at.
It's gonna be kind of dilutive for this year, probably a few percentage points and.
Skew us of course is a free.
Walk us on the developing their products on their hiring a lot of wear and D and and sales and so there was a bit less concerned about the profitability and the short term, but I think.
Our internal models, even lost from next year, the mail or any of Breo, just on breakeven and they believe that should've done radio and great job over the last 2 years on this front, but I don't think we will kind of squeeze there the growth potential just to kind of keep them on.
EBITDA margin on the skyros level, because as I said, even on our and.
The group level at the <unk>.
It's not not material right, 2% and it'll go further overtime.
And over to Greg of incremental marketing.
Yeah Hello on.
No.
Yeah.
And.
During the presentation that we will see the.
The decrease in markets and as a percent of the truck revenue in our Oh.
When piece of us and the first quarter right.
Basically we are.
Expect the same.
Decrease in marketing as a percentage of revenue for the full year in the.
And the Oh.
Core business, but.
But at the same time.
As a.
And south, Florida market, and the slightly higher as a percentage of freight and Youll Ben.
In the center.
And I think the kind of kept on consolidated level.
It will be essentially.
Probably flat compared to the year.
Last year and I understand and.
And if that answers your question.
Okay.
Yes. Thank you.
Okay.
Thank you Dear participants as a reminder, if you wish to ask a question. Please press star and 1 on the telephone Keypads and the next question comes from the line of and Quebec to flow from Alfa Bank. Please ask your question.
Yes. Good afternoon. Thank you very much.
And for the call and for a great the plant.
Performance.
Have of Chile 3 questions are this.
First 1 and he will indicate on your chart really of the total addressable market. The first keyless. That's M. S. Keyless the has 51% share that market share and there is another and I'm, a big and arrival leaves 18% share and we.
She is a more or less 3 times are bigger than all the all the remaining participants so of the grades to understand the who the slip lares advantages or the strong and part of strong parts of the business of disadvantage.
The second question would be what the preserves you'll know from and.
Giving giving us a price stability to guidance.
Because if I'm not mistaken when the U.
Right. After the IPO 2 years ago I'm now this was the common practice the Pew gave top line growth guidance, both on the EBITDA guidance and.
And just so the third question the technical 1 and Uh Huh.
Did I understand correctly, the skus will be consolidated in your P&L statement and the financial results from the first of April.
21, and thank you.
And thanks, Thanks on the outbound from the first 1.
And then the second second player in the kind of special of Cts market that we Oh. The carve out is you know the company had called hung Hom flow is true.
And finally private on the company we've.
Obviously are tracking their performance I think they are on.
And beat the more kind.
Kind of position.
<unk> positioned in the lower end of the enterprise market.
And the hour them and our view there and if.
They are get the deal it is of delivering complex enterprise solutions are and.
Not that strong as the ski loss and a few years ago. When we actually decided to go after are the best kind of.
The horse and the market, we were obviously considering income both assets and the and the time. The these companies who are more or less equal size and on.
And now and actually we see that the skyros is much more just the scalable because of the kind of addressing the probably the part of the market that is the most advanced and and their demand because the they're really struggling now the mall.
And the it.
It seems like they kind of 4 and reach the point when the the budgets for each of our easily more easily and do all kind of.
The acceptance.
And within the touch and the prices than let's say 5 years ago.
On the you know if it.
Answers the question I'll hand over to the rigor comment on profitability since keyless competition.
Yeah.
And this is Gregory.
Hum.
And frankly this year and so on the first question of rights relative stability. This year, we are kind of more focused on the business expenses because as you can see it.
And all the market is.
Quite turbulent sales.
We sold the of tremendous demand for Labor force and the Q1 right.
Oh, the world like true kind of keep our Amtrust open on this kind of market in terms of expenses sales.
And we'll target.
Kind of a specific EBITDA margin and in 2020 'twenty 1.
What are what we see.
On the contractual Q1 results right, we were sort of expansion in our main business and our adjusted EBITDA margin.
It's the most said before I think.
And the Wii.
Probably expect a true kind of go on.
And the rest of the year.
As we said the quarter will face.
What we.
And I expect that.
And we felt to be.
I've worked at the.
Fully.
While the separate the leverage and the wind business plus kill US will also help us more of that reach if effect right.
And basically overall for the full year, we're kind of walk and net margin and in the ballpark of.
50% as we share the law of coal.
Yeah.
Plus quarter.
Which is slightly above.
Wafting its the year.
2020 of adjusted EBITDA margin, but again, that's the ballpark right could be a slight the less scope of recyclable.
Yeah.
Oh, yes. Thank you. Thank you very much and on the likes of debate of consolidation of keyless.
Yep.
Yeah, It's your total of rights.
And the are we will consolidate the company from.
And from the April 1st for the share.
The quarter, so second quarter will have the full scale of <unk> results for the fourth quarter.
Thank you okay. Thank you very much.
Thank you. The next question comes from line of John Kim from UBS. Please ask the question.
Hi, everybody.
2 questions. Please can you comment on business philosophy, and the April and March.
Are those sustainable level 3 of those cars are a bit of time and place and secondly are you seeing anything newer innovative from competitors on any of the core products.
Hi, John.
Well I'll start with the or is the second I don't I don't think we and we see any there.
The significant changes and the on the competitor front or the Groanings wise, we see there.
The sleep trying to kind of explore the existing market opportunities and the generally.
The whole market, you've kind of benefiting from this situation and we see there. They can see I can see so and it may cause some ways also growing although if you look on the kind of gap against the number 2 between us and competitors the things of the the GAAP was growing are both on the.
Kind of content side and also on Canada sides of people go to the traffic dynamics again, the the whole market is kind of.
And kind of struggled for 4 of candidates and the in this environment, but the EBITDA disproportionately and so we believe that our types of market share also keeps growing but for product wise and we'd be really see that and kind of any of the competitors coming off of is anything that is kind of what do you need to the market more of them now or 2 kind of interesting bid at this and that is.
And coming up and the market from the audience perspective, and kind of claim perspective.
And again, the first of all I could you jumped the therapy, because I was really and he didn't get very hardly.
Sure. So just about the business philosophy and April and May I think the back half growth rates throughout 50, 240% does that makes sense and is that sustainable.
And and the first quarter of I think we were more or less discussed. This question then and the.
Before I was because of what.
The there were some sectors that the work on helping right we were coming into the business sector and at the end of Q1 and that will continue and accelerate as you may expect in the in the second quarter right because I.
And I think we're kind of consistently seeing and our triple digit growth numbers and there could be a low base last year.
And there are some I've heard the same.
Kind of the fees.
Seizures and the market that are with me to lead the man on the met changeover time, especially of kind of again of the behavior of the moment, there and b to a relaxed and the they might be kind of more active in the with the kind of high confidence overtime, but the man what drives at the moment.
The and if the market is.
Demographics of duration and.
We do you don't see how this can be resolved.
And in the short base, so from that perspective, I think the debt and core growth driver will just remain true.
The 1 time and also monetization of this data was the really strong factor and in our numbers you see very limited impact from our last year of change of a subscription model right because.
As of Sept, most of the clients already immigrated the new subscriptions, but the steel using kind of the packages and included in the and the basis attrition and so are in the Eagle Ford Zone. So that the review from these contracts are the kind of.
Exceeded the revenue for the preceding 3 months so the that will accelerate on let's say the port is very strong and why.
And for monetization.
Movement, and so we believe that may even enhance well from current level overtime.
Okay. Thank you.
Thank you Dear participants as a reminder, if you wish to ask a question. Please press star and 1 on the telephone keypad and the next question comes from the line of Ivan Kim from ex FX tell.
Tell us capital please ask the question.
Thank you for that franchise and I just wanted to follow up on the margin dilution effect from skew us I'm not sure I heard of it right.
That is going to be a 3 percentage point impact on margin seems a little high such a good job on the right going.
Congrats on the great.
And then secondly.
Just on the key accounts of RPC.
And what was driving the exploration and.
And the first quarter, which was quite significant and before the price increase in April and also as Richard mentioned before paper context, the effect kicks on this year, which of which was later thank you.
And 1 level of Gregory I think I'll take the first question.
Low actual at the estimate is a much lower I think.
Yeah.
But they'll surely might be around 1.
The percentage point.
On the full year results.
Yeah.
Iran and the meter here on the on your second question on RPC.
Actually there are there are 2 major.
Centers are the stores these are the.
Addition of the blood there either and so because we really acquired a lot of regional key accounts.
And that was not the not acquired but actually on those 2 Hoover and if you're not unique we added the RPC on top of ours and so that.
The kind of quite of technical and I think.
Well, but that doesn't all of the major the major 1 was essentially the initiatives that we rolled out last year first of all if you remember maybe a year ago, we were discussing at length, our head of initiate the broached. The words key accounts alright, and the what was the all the initiatives that are and kind of purples and the.
Market, they're having sort of delay the fact and are in the starting from January we kind of started to reap the rewards and I think the that was probably the major.
The major driver, especially given the dynamics and the key accounts just posting right because.
And it was a well first the intensified competition. So the started consume more and also and side effects of our new subscriptions, because they're kind of trying to optimize the budget and replacing our contacts with the job postings and at the same time, we don't see really really backed on the contacts or any of it.
But on the job postings side, we see incremental demand and the revenue.
Okay.
Alright, Thank you very much.
Thank you the participants and once again, if you wish to ask a question. Please press star and 1 on the telephone keypad the.
Next question comes from the line of the Korea, So kind of of from BCS. Please ask the question.
Yes, Hello, just a quick 1.
So what did you much about the revenue and growth guidance is it would you say based on conservative assumptions or you think that's true.
And the board of Flex of C. Now thank you.
Yes, Hi, Mary is the dream.
And where.
Well I would say that the kind of the range they were pretty much confident at this point and Oh we.
And you said the sort of of 2% we expect to be added from ski lots of consolidation and the remaining kind of we've upgraded the guidance by 8% the remaining.
6% the extra stems from our business outperformance.
We see very strong year to day or 3 quarters of date, our results and no signs of deterioration at this point of time, but we kind of bear in mind that carries the patients not over yet and.
It won't be over in the second half rights were not safe from any of.
And the potential of down on this popular non working days announcement all of the southern and so we think of this point of time, we are pretty much confident to kind of hit this range and.
We also of the reserve the right to review it later in the year.
Thank you.
Yeah.
Okay.
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Yeah.
And on no further questions at this time please continue.
Yeah.
Thank you everybody for joining and take care Bye bye.
That does conclude the conference for today. Thank you for participating in the older disconnect have a nice day.
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Yes.
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