Cian PLC (NYSE: CIAN, MOEX: CIAN) (“Cian” or the “Company”), a
leading online real estate classifieds platform in Russia, today
announced its financial results for the fourth quarter and
full-year ended December 31, 2021.
Fourth Quarter 2021 Key Financial and Operational
Highlights1
- Revenue increased by 42% Y-o-Y to RUB 1,772 million ($23.9
million).
- Loss for the period widened to RUB 888 million ($12.0 million)
Y-o-Y.
- Adjusted EBITDA2 decreased by 22% Y-o-Y to RUB 116 million
($1.6 million).
- Adjusted EBITDA Margin2 was down by 5.3 ppt Y-o-Y to 6.5%.
- Average UMV (Unique Monthly Visitors)3 increased by 5% Y-o-Y to
18.5 million.
- Core Business revenue increased by 36% Y-o-Y to RUB 1,608
million ($21.6 million).
- Core Business Adjusted EBITDA4 increased by 55% YoY to RUB 393
million ($5.3 million).
- Core Business Adjusted EBITDA Margin2,5 improved by 3 ppt Y-o-Y
and reached 24.4%.
Full Year 2021 Key Financial and Operational
Highlights1
- Revenue increased by 52% Y-o-Y to record high RUB 6,033 million
($81.2 million).
- Loss for the period widened to RUB 2 857 million ($38.5
million) Y-o-Y.
- Adjusted EBITDA2 increased by 76% Y-o-Y to RUB 318 million
($4.3 million).
- Adjusted EBITDA Margin2 improved by 0.7 ppt Y-o-Y to 5.3%.
- Average UMV (Unique Monthly Visitors)3 increased by 18% Y-o-Y
to 19.5 million.
- Core Business revenue increased by 48% Y-o-Y to RUB 5,641
million ($75.9 million).
- Core Business Adjusted EBITDA4 increased by 114% YoY to RUB
1,139 million ($15.3 million).
- Core Business Adjusted EBITDA Margin2,5 improved by 6.3 ppt
Y-o-Y and reached 20.2%.
Maxim Melnikov, Chief Executive Officer of Cian PLC commented:
“The past weeks have been marked by unprecedented changes and
turbulence in the geopolitical and economic environment in Russia
and globally. Although we believe in the strong fundamentals of our
business as demonstrated by the 2021 operating and financial
results, given existing uncertainty and market volatility, it is
difficult to assess how the unfolding events will affect the
Russian economy, real estate market in Russia and, consequently,
our business and operating performance in 2022. We will continue to
closely monitor developments in the key markets in which we operate
and make every effort to ensure that we minimize any negative
impact on our business and secure the safety of our partners, users
and employees, while continuing to support the uninterrupted
operation of our services. We hope for the peaceful resolution of
the current situation.”
Fourth Quarter and Full-Year 2021 Results
Factors affecting year-over-year trends and comparisons6
When reviewing year-over-year dynamics for 2021 versus 2020 we
believe it is important to take into account certain factors that
affected the Russian real estate market demand and supply as well
as corresponding annual and quarterly trends in 2020.
We believe that quarterly trends in the real estate market in
2020 were particularly characterized by the following events: (i)
measures introduced by the government to contain the spread of the
COVID-19 pandemic, primarily including lockdowns in Moscow and
other regions which led to a low level of real estate demand in the
second quarter of 2020 and, correspondingly, a low comparative base
for the same period of 2021; (ii) extensive economic stimulus,
including the mortgage subsidy program introduced by the government
shortly after the outbreak of COVID-19 which led to historically
low mortgage rates resulting in unusually high levels of real
estate demand in the second half of 2020, establishing a high
comparative base for the same period of 2021. This was further
amplified by the low level of supply of new properties on the
market impacted by a slowdown in construction due to the COVID-19
pandemic resulting in a significant decrease in the number of
properties available by mid-2021. We believe that the
aforementioned factors and the corresponding fluctuation in real
estate market, which affected our revenues and results of
operations, were in some ways specific to 2020 and should be taken
into account when analyzing year-over-year dynamics for the
abovementioned periods and may not be representative of any future
trends.
____________________
1 Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
2 Adjusted EBITDA, Adjusted EBITDA Margin
and Core Business Adjusted EBITDA Margin are non-IFRS measures. See
“Non-IFRS Financial Measures and Supplemental Financial
Information” elsewhere in this release for a description of these
measures and their reconciliation from the most directly comparable
IFRS financial measures.
3 Average Unique Monthly Visitors (UMV)
means the average number of users and customers visiting our
platform (websites and mobile application) per month in a
particular period, excluding bots. Average UMV for a particular
period is calculated by aggregating the UMV for each month within
such period and dividing by the number of months. For 2020, 2019
and their respective interim periods, Average UMV is calculated
based on Google Analytical data; for 2021 and the fourth quarter
thereof, Average UMV is calculated as a sum of Average UMV for the
Cian Group (excluding the N1 Group) based on Google Analytics data
and Average UMV for the N1 Group based on Yandex.Metrica data.
4 Core Business Adjusted EBITDA, Mortgage
Marketplace Adjusted EBITDA, Valuation and Analytics Adjusted
EBITDA, C2C Rental Adjusted EBITDA and End-to-End Offerings
Adjusted EBITDA presented in this release are our segment measures
of profit or loss and, therefore, are not considered non-IFRS
financial measures. See “Non-IFRS Financial Measures and
Supplemental Financial Information” elsewhere in this release for
further information.
5 Defined as Core Business Adjusted EBITDA
divided by Core Business revenue for the respective periods.
6 For the full disclosure of the Impact of
the COVID-19 pandemic on our operations and financial position
please see the relevant section of this release
Fourth Quarter 2021 Results
Revenue Revenue for the three months ended December 31,
2021 amounted to RUB 1,772 million compared to RUB 1,249 million
for the three months ended December 31, 2020, demonstrating an
increase of RUB 523 million, or 42%. Revenue growth was primarily
driven by growth of the Core Business segment, as well as the
Mortgage Marketplace segment.
The following table sets forth a breakdown of our revenue by
segment and type for the periods indicated (in millions of RUB and
USD):
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
Y-o-Y growth
RUB
RUB
USD(1)
Total Revenue
1,249
1,772
23.9
42%
Core Business, including
1,186
1,608
21.6
36%
Listing revenue
760
1,047
14.1
38%
Lead generation revenue
299
386
5.2
29%
Display advertising revenue
125
168
2.3
34%
Mortgage Marketplace
48
104
1.4
117%
Valuation and Analytics
15
17
0.2
13%
C2C Rental
-
1
0.0
-
End-to-End Offerings
-
42
0.6
-
____________________ 1 Dollar translations
throughout this release are included solely for the convenience of
the reader and were calculated at the exchange rate quoted by the
Central Bank of Russia as of December 31, 2021 (RUB 74.2926 to USD
1.00)
Core Business segment revenue Core Business revenue
reached RUB 1,608 million for the three months ended December 31,
2021, increasing by 36% compared to RUB 1,186 million for the three
months ended December 31, 2020. Core Business revenue growth was
driven by a positive performance across all key revenue streams –
listing revenue, representing secondary real estate and commercial
real estate verticals, as well as lead generation and display
advertising revenue, predominantly representing the primary real
estate vertical.
Core Business revenue in Moscow and the Moscow region for the
three months ended December 31, 2021 was RUB 1,150 million, an
increase of RUB 208 million, or 22%, compared to RUB 942 million
for the same period of the prior year. Core Business revenue in
other Russian regions for the three months ended December 31, 2021
was RUB 458 million, an increase of RUB 214 million, or 88%, as
compared to RUB 244 million for the same period of the prior
year.
Listing revenue (secondary and commercial real estate verticals)
Listing revenue increased by 38% to RUB 1,047 million for the three
months ended December 31, 2021 from RUB 760 million for the same
period of the prior year.
The following table presents the listing revenue, the number of
listings and the average daily revenue per listing for the periods
indicated:
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
Y-o-Y growth
Listing revenue, including (RUB,
million)
760
1,047
38%
Moscow and Moscow Region
600
705
18%
Other Russian Regions
160
342
113%
Listings(1), including
(million)
2.14
1.78
(17%)
Moscow and Moscow Region
0.32
0.29
(8%)
Other Russian Regions
1.82
1.49
(18%)
Average daily revenue per listing(2)
(RUB)
3.9
6.4
65%
Moscow and Moscow Region
20.4
26.2
28%
Other Russian Regions
1.0
2.5
160%
____________________
1 Listings means the daily average number
of real estate listings posted on our platform by agents and
individual sellers for a particular period
2 Average daily revenue per listing is
calculated as listing revenue divided (i) by the total number of
listings for the corresponding period and (ii) by the number of
days during the period
We believe that the growth of the Сore Business listing revenue
was primarily driven by the following factors:
- re-launch of monetization of listing services following its the
temporary suspension from April 2020 due to the COVID-19 pandemic,
primarily including the continued re-launch of monetization in
certain Russian regions with the total number of monetized regions
(where base listing services in both secondary residential and
commercial listing are monetized) reaching 21 regions (including
our core markets of Moscow, the Moscow region, Saint Petersburg and
the Leningrad region) by the end of 2021;
- listings services price increases, which were implemented as a
part of a regular review of listing rates;
- increasing penetration of the subscription model with over
51.4% of listing revenue coming from subscriptions in the three
months ended December 31, 2021 as compared to 35.6% in the
comparable period of the prior year; and
- revenue contribution from the N1 Group, which was acquired in
February 2021.
Listing revenue growth was partially offset by changes into the
VAT exemption rules under the Russian Tax Code which came in effect
on January 1, 2021. Following those changes, we no longer qualify
for a VAT exemption applied prior to January 1, 2021 and hence
starting from beginning of 2021, we bear the applicable VAT in
full.
In the three months ended December 31, 2021, we had
approximately 1.8 million listings on our platform (not including
the N1 Group), compared to approximately 2.1 million in the three
months ended December 31, 2020. The decrease in the number of
listings was predominantly driven by the temporary decrease in the
numbers of properties listed in the market following a period of
active demand stimulated by the Russian government measures
described above. In addition, the decrease in the number of
listings was amplified by re-launch of monetization in certain
regions throughout 2021. We observed that re-launches of
monetization customarily lead to removal of predominantly stale,
duplicate and otherwise illiquid listings.
Lead generation and display advertising revenue (primary real
estate vertical) Lead generation revenue increased by 29% to RUB
386 million in the three months ended December 31, 2021 from RUB
299 million in the three months ended December 31, 2020. Display
advertising revenue increased by 34% to RUB 168 million for the
three months ended December 31, 2021.
The growth of Core Business lead generation revenue was driven
mainly by the increase in the average revenue per lead to
developers. Increase in the average revenue per lead to developers
resulted primarily from price increases, which were introduced on
lead generation products in April 2021 as well as the enhancement
and growing penetration of some of the value-added services, such
as, for example, the auction tool. The growth of average revenue
per lead to developers was offset by a decline in the number of
leads to developers from approximately 66 thousand in the fourth
quarter of 2020 to approximately 59 thousand in the fourth quarter
of 2021. The decline in the number of leads to developers was
driven by several factors including, predominantly, abnormally high
levels of real estate demand in the fourth quarter 2020 as compared
to the fourth quarter 2021 driven by the Russian government’s
mortgage subsidy program that was initially launched in April 2020
and prolonged, but scaled back in July 2021. The pressure on the
number of leads was further exacerbated by the low level of supply
of new properties on the market impacted by a slowdown in
construction due to the COVID-19 pandemic. The decline in the
number of leads to developers was further balanced by the growth of
online display advertising driven by a shift in developers’
advertising budgets from offline advertising channels to
online.
Mortgage marketplace segment revenue Mortgage Marketplace
revenue was RUB 104 million for the three months ended December 31,
2021 compared to RUB 48 million for the same period of the prior
year, corresponding to an increase of RUB 56 million or 117% driven
by the promotion and development of the Mortgage Marketplace
service and favorable market conditions.
Operating expenses Total operating expenses increased by
121% to RUB 2,660 million in the three months ended December 31,
2021 from RUB 1,205 million in the three months ended December 31,
2020, primarily driven by an increase in employee-related and other
operating expenses.
The following table sets forth a breakdown of our operating
expenses for the periods indicated (in millions of RUB and
USD):
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
Y-o-Y growth
RUB
RUB
USD(1)
Operating expenses
1,205
2,660
35.8
121%
Marketing expenses
558
531
7.1
-5%
Employee-related expenses, including
485
1,514
20.4
212%
Wages, salaries and related taxes
418
702
9.4
68%
Share-based payment expense
55
764
10.3
1289%
IT expenses
57
154
2.1
170%
Depreciation and amortization
49
73
1.0
49%
Other operating expenses, including
56
388
5.2
593%
IPO related expenses
-
167
2.2
100%
____________________
1 Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Employee-related expenses Employee-related expenses increased by
212% to RUB 1,514 million in the three months ended December 31,
2021 from RUB 485 million in the three months ended December 31,
2020. Wages, salaries and related taxes and other employee-related
expenses were a total of RUB 750 million for the three months ended
December 31, 2021 compared to RUB 430 million for the three months
ended December 31, 2020. This increase was primarily due to growth
in headcount, driven by the roll-out of some of the new initiatives
as well as hiring freeze in the fourth quarter 2020, the
acquisition of the N1 Group and hirings made in preparation for our
IPO.
Wages, salaries and related taxes as a percentage of revenue
increased year-over-year from 33.5% for the fourth quarter of 2020
to 39.6% for the fourth quarter 2021.
Marketing expenses Marketing expenses decreased to RUB 531
million in the three months ended December 31, 2021 from RUB 558
million in the three months ended December 31, 2020. This decrease
was primarily driven by a decrease in online marketing partially
offset by the increase in offline marketing spend resulting from
the implementation of our marketing strategy including a reversal
to a more common marketing mix as compared to the fourth quarter
2020 which was affected by COVID-19 pandemic.
Marketing expenses as a percentage of revenue decreased to 30.0%
in the fourth quarter of 2021 from 44.7% in the fourth quarter of
2020, driven primarily by the increase in revenue.
IT expenses IT expenses increased by 170% to RUB 154 million in
the three months ended December 31, 2021 from RUB 57 million in the
three months ended December 31, 2020. This increase was primarily
driven by our transition to cloud hosting services and expansion of
our call tracking as well as the acquisition of the N1 Group.
Other operating expenses Other operating expenses increased by
593% to RUB 388 million in the three months ended December 31, 2021
from RUB 56 million in the three months ended December 31, 2020,
primarily driven by the IPO-related expenses and other consulting
costs.
Loss for the period Loss for the three months ended
December 31, 2021 was RUB 888 million compared to a profit of RUB
18 million for the three months ended December 31, 2020. The change
from profit for the period to loss for the period was driven by
factors affecting our Adjusted EBITDA described below, as well as
by an increase in the share-based payment expenses as well as
IPO-related expenses.
Adjusted EBITDA and Adjusted EBITDA Margin Adjusted
EBITDA for the three months ended December 31, 2021 reached RUB 116
million, a decrease of RUB 32 million, or 22% compared to RUB 148
million for the three months ended December 31, 2020. The decline
in Adjusted EBITDA was primarily driven by the increase in
operating costs offset by revenue growth.
Adjusted EBITDA Margin fell by 5.3 ppt to 6.5% for the three
months ended December 31, 2021.
Core Business Adjusted EBITDA increased by 55% to RUB 393
million in the three months ended December 31, 2021 from RUB 254
million in the three months ended December 31, 2020. This increase
was driven primarily by revenue growth of the Core Business
segment, including the growth in listing, lead generation and
display advertising revenue that outpaced the growth of Core
Business operating expenses.
Core Business Adjusted EBITDA Margin improved by 3.0 ppt
reaching 24.4% for the three months ended December 31, 2021.
Mortgage Marketplace Adjusted EBITDA was negative RUB 130
million in the three months ended December 31, 2021 compared to
negative RUB 92 million in the three months ended December 31,
2020. The dynamic was primarily driven by our investments in
marketing associated with the promotion and development of the
Mortgage Marketplace project and was partially offset by growth in
revenue generated by the Mortgage Marketplace platform.
Full-Year 2021 Results
Revenue Revenue for the year ended December 31, 2021
amounted to RUB 6,033 million compared to RUB 3,972 million for the
year ended December 31, 2020, demonstrating an increase of RUB
2,061 million, or 52%. Revenue growth was primarily driven by
growth of the Core Business segment, as well as the Mortgage
Marketplace segment.
The following table sets forth a breakdown of our revenue by
segment and type for the periods indicated (in millions of RUB and
USD):
Year ended
December 31, 2020
December 31, 2021
December 31, 2021
Y-o-Y growth
RUB
RUB
USD (1)
(audited)
(unaudited)
Total Revenue
3,972
6,033
81.2
52%
Core Business, including
3,822
5,641
75.9
48%
Listing revenue
2,383
3,699
49.8
55%
Lead generation revenue
991
1,329
17.9
34%
Display advertising revenue
439
596
8.0
36%
Mortgage Marketplace
110
295
4.0
168%
Valuation and Analytics
39
45
0.6
15%
C2C Rental
1
3
0.0
200%
End-to-End Offerings
-
49
0.7
-
____________________
1 Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Core Business segment revenue Core Business revenue
reached RUB 5,641 million for the year ended December 31, 2021,
increasing by 48% compared to RUB 3,822 million for the year ended
December 31, 2020. Core Business revenue growth was driven by a
positive performance across all key revenue streams – listing
revenue, representing secondary real estate and commercial real
estate verticals, as well as lead generation and display
advertising revenue, predominantly representing the primary real
estate vertical.
Core Business revenue in Moscow and the Moscow region for the
year ended December 31, 2021 was RUB 4,104 million, an increase of
RUB 1,104 million, or 37%, compared to RUB 3,000 million for the
same period of the prior year. Core Business revenue in other
Russian regions for the year ended December 31, 2021 was RUB 1,537
million, an increase of RUB 715 million, or 87%, as compared to RUB
822 million for the same period of the prior year.
Listing revenue (secondary and commercial real estate verticals)
Listing revenue increased by 55% to RUB 3,699 million for the year
ended December 31, 2021 from RUB 2,383 million for the same period
of the prior year.
We believe that the growth of the Сore Business listing revenue
was primarily driven by the following factors:
- re-launch of monetization of listing services following its the
temporary suspension from April 2020 due to the COVID-19 pandemic.
This includes the effect of the listing services monetization
re-launch in Moscow, the Moscow region, St. Petersburg and the
Leningrad region in June 2020 that was partially offset by certain
discounts offered in the third quarter of 2020 as well as the
continued re-launch of monetization in certain other Russian
regions with the total number of monetized regions (where base
listing services in both secondary residential and commercial
listing are monetized) reaching 21 regions (including our core
markets of Moscow, the Moscow region, Saint Petersburg and the
Leningrad region) as of December 31, 2021;
- listings services price increases, which were implemented as a
part of a regular review of listing rates;
- increasing penetration of the subscription model with over
45.9% of listing revenue coming from subscriptions in the twelve
months ended December 31, 2021 as compared to 12.8% in the
comparable period of the prior year; and
- revenue contribution from the N1 Group, which was acquired in
February 2021.
Listing revenue growth was partially offset by changes into the
VAT exemption rules under the Russian Tax Code which came in effect
on January 1, 2021. Following those changes, we no longer qualify
for a VAT exemption applied prior to January 1, 2021 and hence
starting from beginning of 2021, we bear the applicable VAT in
full.
In the twelve months ended December 31, 2021, we had
approximately 2.0 million listings on our platform (not including
the N1 Group), compared to approximately 2.1 million in the twelve
months ended December 31, 2020. The decrease in the number of
listings was predominantly driven by the temporary decrease in the
numbers of properties listed in the market following a period of
active demand stimulated by the Russian government measures
described above. In addition, the decrease in the number of
listings was amplified by re-launch of monetization in certain
regions throughout 2021. We observed that re-launches of
monetization customarily lead to removal of predominantly stale,
duplicate and otherwise illiquid listings.
Lead generation and display advertising revenue (primary real
estate vertical) Lead generation revenue increased by 34% to RUB
1,329 million in the year ended December 31, 2021 from RUB 991
million in the year ended December 31, 2020. Display advertising
revenue increased by 36% to RUB 596 million for the year ended
December 31, 2021.
The growth of Core Business lead generation revenue was driven
mainly by the increase in the average revenue per lead to
developers. Increase in the average revenue per lead to developers
resulted primarily from price increases, which were introduced on
lead generation products in April 2021 as well as the enhancement
and growing penetration of some of the value-added services, such
as for example the auction tool. The growth of average revenue per
lead to developers was offset by a decline in the number of leads
to developers from approximately 245 thousand in 2020 to
approximately 229 thousand in 2021. The decline in the number of
leads to developers was driven by several factors including,
predominantly, abnormally high levels of real estate demand in the
second half of 2020 as compared to the second half of 2021 driven
by the Russian government’s mortgage subsidy program that was
initially launched in April 2020 and prolonged, but scaled back in
July 2021. The pressure on the number of leads was further
exacerbated by the low level of supply of new properties on the
market impacted by a slowdown in construction due to the COVID-19
pandemic. The decline in the number of leads to developers was
further balanced by the growth of online display advertising driven
by a shift in developers’ advertising budgets from offline
advertising channels to online.
Mortgage marketplace segment revenue Mortgage Marketplace
revenue was RUB 295 million for the year ended December 31, 2021
compared to RUB 110 million for the same period of the prior year,
corresponding to an increase of RUB 185 million or 168% driven by
the strong performance of the overall mortgage market in the first
half of 2021 (resulting largely from the governmental mortgage
subsidy support) underpinned by the promotion and development of
the Mortgage Marketplace service including the addition of new
banks to the platform.
Operating expenses Total operating expenses increased by
94% to RUB 8,847 million in the year ended December 31, 2021 from
RUB 4,549 million in the year ended December 31, 2020, primarily
driven by an increase in employee-related, marketing and other
operating expenses.
The following table sets forth a breakdown of our operating
expenses for the periods indicated (in millions of RUB and
USD):
Year ended
December 31, 2020
December 31, 2021
December 31, 2021
Y-o-Y growth
RUB
RUB
USD (1)
(audited)
(unaudited)
Operating expenses
4,549
8,847
119.1
94%
Marketing expenses
1,697
2,253
30.3
33%
Employee-related expenses, including
2,208
5,062
68.1
129%
Wages, salaries and related taxes
1,610
2,394
32.2
49%
Share-based payment expense
558
2,549
34.3
357%
IT expenses
264
527
7.1
100%
Depreciation and amortization
200
279
3.8
40%
Other operating expenses, including
180
726
9.8
303%
IPO related expenses
-
304
4.1
100%
____________________
1 Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Employee-related expenses Employee-related expenses increased by
129% to RUB 5,062 million in the year ended December 31, 2021 from
RUB 2,208 million in the year ended December 31, 2020. Wages,
salaries and related taxes and other employee related expenses were
a total of RUB 2,513 million for the year ended December 31, 2021
compared to RUB 1,650 million for the year ended December 31, 2020.
This increase was primarily due to growth in headcount, driven by
the roll-out of some of the new initiatives, the acquisition of the
N1 Group and hirings made in preparation for our IPO.
Wages, salaries and related taxes as a percentage of revenue
decreased year over year from 40.5% for 2020 to 39.7% for 2021.
Marketing expenses Marketing expenses increased to RUB 2,253
million in the year ended December 31, 2021 from RUB 1,697 million
in the year ended December 31, 2020. This increase was primarily
driven by growth in online and offline marketing, following the end
of the COVID-19 lockdown-related restrictions and the
implementation of our marketing strategy.
Marketing expenses as a percentage of revenue decreased to 37.3%
in 2021 from 42.7% in 2020, driven primarily by the increase in
revenue.
IT expenses IT expenses increased by 100% to RUB 527 million in
the year ended December 31, 2021 from RUB 264 million in the year
ended December 31, 2020. This increase was primarily driven by our
transition to cloud hosting services and expansion of our call
tracking as well as the acquisition of the N1 Group.
Other operating expenses Other operating expenses increased by
303% to RUB 726 million in the year ended December 31, 2021 from
RUB 180 million in the year ended December 31, 2020, primarily
driven by the IPO-related expenses and other consulting costs.
Loss for the period Loss for the year ended December 31,
2021 was RUB 2,857 million compared to a loss of RUB 627 million
for the year ended December 31, 2020. The change in the loss for
period was driven by factors affecting our Adjusted EBITDA
described below as well as by an increase in the share-based
payment expenses as well as IPO-related expenses.
Adjusted EBITDA and Adjusted EBITDA Margin Adjusted
EBITDA for the year ended December 31, 2021 reached RUB 318
million, an increase of RUB 137 million, or 76%, compared to RUB
181 million for the year ended December 31, 2020. The growth in
Adjusted EBITDA was primarily driven by the increase in revenue as
well as operating leverage in our business.
Adjusted EBITDA Margin improved by 0.7 ppt to 5.3% for the year
ended December 31, 2021.
Core Business Adjusted EBITDA increased by 114% to RUB 1,139
million for the year ended December 31, 2021 from RUB 532 million
in the year ended December 31, 2020. This increase was driven
primarily by revenue growth of the Core Business segment, including
the growth in listing, lead generation and display advertising
revenue that outpaced the growth of Core Business operating
expenses.
Core Business Adjusted EBITDA Margin improved by 6.3 ppt
reaching 20.2% for the year ended December 31, 2021.
Mortgage Marketplace Adjusted EBITDA was negative RUB 482
million in the year ended December 31, 2021 compared to negative
RUB 254 million in the year ended December 31, 2020. The dynamic
was primarily driven by our investments in marketing associated
with the promotion and development of the Mortgage Marketplace
project and was partially offset by growth in revenue generated by
the Mortgage Marketplace platform.
Recent Developments
Impact of the Latest Geopolitical Developments on the
Company Given the vast scope of the recent sanctions introduced
by the United States, the United Kingdom, the European Union or
other countries and other measures such as corporate boycotts as
well the constantly evolving market environment, it is hard to
predict the full impact of such sanctions or the measures taken by
the Russian government in response to such sanctions on the Russian
economy or certain sectors thereof.
For example, in response to accelerating inflation and
depreciation of the ruble, on February 28, 2022, the Central Bank
of the Russian Federation (CBR) increased its key interest rate
from to 9.5% to 20.0%. Due to these monetary policy changes and the
anticipated decline in the Russian economy, the domestic financial
and banking markets may experience periodic shortages of liquidity
in the domestic money market. Lower money supply and higher funding
costs may cause banks to cut their lending programs and decrease
exposure limits and become significantly more risk averse. We
expect the sharp rise in interest rates caused by the CBR’s key
interest rate hike to have a materially negative impact on the
Russian mortgage market. All major Russian banks have increased
mortgage rates since January 2022 and, in some cases, have
announced plans to significantly curtail or altogether suspend
mortgage operations for the foreseeable future. Decreased
availability of mortgage loans and high interest rates will
directly impact the volume of mortgage deals on the market.
A high level of inflation could lead to market instability,
reductions in consumer purchasing power and an erosion of consumer
confidence. This may adversely affect the Russian real estate
market, as reduced disposable income and purchasing power is likely
to have an adverse effect on consumers’ ability or willingness to
invest in new housing or real estate.
Although neither the Company nor any of its subsidiaries is
subject to any sanctions announced to-date, the impact of these and
further developments on the future operations and financial
position of the Group may be significant, but at this stage is
difficult to determine. Current and future risks to the Group
include, among others, the deterioration of the Russian economy,
the risk of reduced or blocked access to capital markets and
ability to obtain financing, and the risk of restrictions on the
usage of certain software.
As of today, Cian’s management believes that the ability of the
Group to conduct business has not been inhibited and we continue to
operate our business in accordance with the circumstances that
arise. The Company has a strong balance sheet, with a significant
cash balance and no debt. All of these factors should allow us to
maintain financial flexibility even in the case of a significant
economic downturn. Management believes, based on the current
operating plan, that existing cash and cash equivalents combined
with the negative working capital innate to our business model will
allow the Company to meet anticipated cash needs for working
capital, capital expenditures and general and administrative
expenses in 2022. However, we cannot guarantee that the current
geopolitical situation, conflict surrounding Russia and Ukraine and
the resulting economic developments in Russia will not adversely
affect our operations and financial results in the future. Given
all of the above we are currently not in a position to provide
guidance for the full year 2022.
On February 28, 2022, Nasdaq and the New York Stock Exchange
imposed a suspension of trading in securities of a number of
companies with operations in Russia, including Cian, which
suspension currently remains in place.
The Company notes that there are no restrictions on the ability
of U.S. persons to acquire and trade in the Company’s securities
other than the suspension of trading mentioned above, and non-U.S.
persons are not exposed to any U.S. secondary sanctions risks in
connection with such transactions.
We will continue to closely monitor all developments in the key
markets where we operate and analyze recently introduced and
potential additional sanctions in order to be able to react to the
changing environment accordingly and to make every effort to ensure
we minimize any negative impact on our business and secure the
safety of our partners, users and employees, while continuing to
support the uninterrupted operation of our services.
Impact of COVID-19 on Our Operations and Financial
Position Since its outbreak in December 2019 to date, the
COVID-19 pandemic has impacted our business operations and demand
across all customer and user groups. Similar to other countries, at
several points in 2020, Russian federal and local government
authorities introduced diverse measures aimed at preventing the
further spread of COVID-19. For example, in March 2020, the Russian
government imposed a country-wide lockdown. In June 2021 and in
September to November 2021, there have been further spikes in the
spread of COVID-19 in Moscow and numerous other Russian regions,
and the governmental authorities introduced a number of
recommendations and restrictions.
The COVID-19 pandemic, its broad impact and the preventive
measures taken to contain or mitigate the pandemic have had, and
are likely to continue to have, significant negative effects on the
Russian and global economy, employment levels, employee
productivity, residential and commercial real estate and financial
markets. This, in turn, has had and may continue to have a negative
impact on our customers and users, their ability to effectuate real
estate transactions and, in turn, our profitability and ability to
operate our business.
In 2020, in response to the COVID-19 pandemic, we introduced
several measures to mitigate its effects on our business as well as
our customer and user base. Specifically, to support our customers
in these unprecedented circumstances, from April 2020, we
temporarily offered our listing services free of charge across all
cities and regions. The monetization of our listings in Moscow, the
Moscow region, St. Petersburg and the Leningrad region was
reinstated in July 2020, with certain discounts offered in the
third quarter of 2020. Throughout 2021 as well as in the first
quarter of 2022, we also reinstated monetization in certain
additional regions, bringing the number of monetized regions to
over 30. The monetization in some other regions remains temporarily
suspended and its potential reintroduction is being assessed on a
region-by-region basis.
Furthermore, during the COVID-19 crisis in 2020, we optimized
our marketing and advertising expenses in order to align our
marketing budgets with the suspension in monetization discussed
above. Additionally, we also reduced discretionary spending and
paused hiring for non-critical roles. Overall, we believe that the
combination of these cost optimization efforts and changes in our
monetization approach helped us to address the COVID-19 crisis in
2020.
The broader macroeconomic environment remains highly uncertain,
and we are continuing to closely monitor the impact of the COVID-19
pandemic on our market, customers, users and business, as it may
continue to affect our financial results going forward.
Fourth Quarter 2021 Financial Results Conference Call
In light of the existing uncertainty and market volatility, the
Company will not be conducting its fourth quarter and full year
2021 conference call. Investors, analysts, and media are welcome to
send their inquiries to the Company using the contact details
provided in this release.
About Cian
Cian is a leading online real estate classifieds platform in the
large, underpenetrated and growing Russian real estate classifieds
market, with a strong presence across Russia and leading positions
in the country’s key metropolitan areas. The Company ranks among
the top ten most popular online real estate classifieds globally in
terms of traffic (based on SimilarWeb traffic data for other online
real estate classifieds and Google Analytics data for Cian for
September 2021). Cian’s networked real estate platform connects
millions of real estate buyers and renters to millions of
high-quality real estate listings of all types — residential and
commercial, primary and secondary, urban and suburban. In the
fourth quarter of 2021, the Company had over 1.8 million listings
available through its platform and an average UMV of over 18.5
million. Through its technology-driven platform and deep insights
into the Russian real estate market the Company provides an
end-to-end experience for its customers and users and helps them
address multiple pain points on their journey to a new home or
place to work.
Forward-Looking Statements This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any express or implied
statements contained in this press release that are not statements
of historical fact may be deemed to be forward-looking statements,
including, without limitation, statements regarding our financial
outlook for 2021 and long-term growth strategy, as well as
statements that include the words “target,” “believe,” “expect,”
“aim,” “intend, intend,” may,” “anticipate,” “estimate,” “plan,”
“project,” “will,” “can have,” “likely,” “should,” “would,” “could”
and other words and terms of similar meaning or the negative
thereof. Forward-looking statements are neither promises nor
guarantees, but involve known and unknown risks and uncertainties
that could cause actual results to differ materially from those
projected, including, without limitation: the negative impact on
the Russian economy of the ongoing military actions between Russia
and Ukraine, any negative effects of sanctions, export controls and
similar measures targeting Russia as well as other responses to the
military conflict in Ukraine; our ability to maintain our leading
market positions, particularly in Moscow, St. Petersburg and
certain other regions, and our ability to achieve and maintain
leading market position in certain other regions; our ability to
compete effectively with existing and new industry players in the
Russian real estate classifieds market; our heavy dependence on our
brands and reputation; any potential failure to adapt to any
substantial shift in real estate transactions from, or demand for
services in, certain Russian geographic markets; any downturns in
the Russian real estate market and general economic conditions in
Russia; any effect on our operations due to cancellation of, or any
changes to, the Russian mortgage subsidy program or other
government support programs; further widespread impacts of the
COVID-19 pandemic, or other public health crises, natural disasters
or other catastrophic events which may limit our ability to conduct
business as normal; our ability to establish and maintain important
relationships with our customers and certain other parties; any
failure to establish and maintain proper and effective internal
control over financial reporting; any failure to remediate existing
deficiencies we have identified in our internal controls over
financial reporting, including our information technology general
controls; any new or existing government regulation in the area of
data privacy, data protection or other areas and the other
important factors discussed under the caption “Risk Factors” in
Cian’s prospectus pursuant to Rule 424(b) filed with the U.S.
Securities and Exchange Commission (“SEC”) on November 4, 2021 and
our other filings with the SEC as such factors may be updated from
time to time.
Any forward-looking statements contained in this press release
speak only as of the date hereof and accordingly undue reliance
should not be placed on such statements. We disclaim any obligation
or undertaking to update or revise any forward-looking statements
contained in this press release, whether as a result of new
information, future events or otherwise, other than to the extent
required by applicable law.
Consolidated Statement of Profit or Loss and Other
Comprehensive Income (in millions of RUB and USD, except share and
per share amounts)
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
Revenue
1 249
1 772
23.9
Operating expenses:
Marketing expenses
(558)
(531)
(7.1)
Employee-related expenses
(485)
(1 514)
(20.4)
IT expenses
(57)
(154)
(2.1)
Depreciation and amortization
(49)
(73)
(1.0)
Other operating expenses
(56)
(388)
(5.2)
Total operating expenses
(1 205)
(2 660)
(36)
Operating profit/(loss)
44
(888)
(12.0)
Finance costs
(17)
(15)
(0.2)
Finance income
4
7
0.1
Foreign currency exchange (loss)/gain,
net
(1)
81
1.1
Other income
-
6
0.1
Profit/(loss) before income tax
30
(809)
(10.9)
Income tax expense
(12)
(79)
(1.1)
Profit/(loss) for the period
18
(888)
(12.0)
Total comprehensive profit/(loss) for
the period
18
(888)
(12.0)
Profit/(loss) per share
Basic and diluted profit/(loss) per share
attributable to ordinary equity holders of the parent
0.3
(13)
(0.2)
Basic and diluted weighted average number
of ordinary shares, in thousand
59 433
67 848
67 848
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Consolidated Statement of Profit or Loss and Other
Comprehensive Income (in millions of RUB and USD, except share and
per share amounts)
Year ended
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
(audited)
(audited)
(unaudited)
Revenue
3 972
6 033
81.2
Operating expenses:
Marketing expenses
(1 697)
(2 253)
(30.3)
Employee-related expenses
(2 208)
(5 062)
(68.1)
IT expenses
(264)
(527)
(7.1)
Depreciation and amortization
(200)
(279)
(3.8)
Other operating expenses
(180)
(726)
(9.8)
Total operating expenses
(4 549)
(8 847)
(119)
Operating loss
(577)
(2 814)
(37.9)
Finance costs
(72)
(61)
(0.8)
Finance income
11
19
0.3
Foreign currency exchange gain/ (loss),
net
(1)
53
0.7
Other income
-
6
0.1
Loss before income tax
(639)
(2 797)
(37.6)
Income tax (expense)/ benefit
12
(60)
(0.8)
Loss for the period
(627)
(2 857)
(38.5)
Total comprehensive loss for the
period
(627)
(2 857)
(38.5)
Loss per share
Basic and diluted loss per share
attributable to ordinary equity holders of the parent
(11)
(44)
(0.6)
Basic and diluted weighted average number
of ordinary shares, in thousand
59 433
65 093
65 093
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Consolidated Statement of Financial Position (in millions of
RUB and USD)
As of
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
(audited)
(audited)
(unaudited)
Assets
Non-current assets
Property and equipment
31
49
0.7
Right-of-use assets
125
98
1.3
Goodwill
-
785
10.6
Intangible assets
257
1 197
16.1
Deferred tax assets
237
226
3.0
Other non-current assets
9
15
0.2
Total non-current assets
659
2 370
31.9
Current assets
Inventories
-
108
1.5
Advances paid and prepaid expenses
88
93
1.3
Trade and other receivables
154
408
5.5
Prepaid income tax
-
4
0.1
Cash and cash equivalents
449
2 419
32.6
Other current assets
20
198
2.7
Total current assets
711
3 230
43.5
Total assets
1 370
5 600
75.4
Equity and liabilities
Equity
Share capital
-
2
0.0
Share premium
125
7 614
102.5
Equity-settled employee benefits
reserves
-
110
1.5
Accumulated losses
(997)
(3 854)
(51.9)
Total equity
(872)
3 872
52.1
Liabilities
Non-current liabilities
Employee share-based payment liability
636
-
-
Lease liabilities
77
48
0.6
Deferred tax liabilities
28
135
1.8
Deferred income
-
125
1.7
Total non-current liabilities
741
308
4.1
Current liabilities
Borrowings
728
-
-
Contract liabilities
332
425
5.7
Trade and other payables
316
619
8.3
Income tax payable
15
59
0.8
Other taxes payable
74
241
3.2
Lease liabilities
36
43
0.6
Deferred income
0
33
0.4
Total current liabilities
1 501
1 420
19.1
Total liabilities
2 242
1 728
23.3
Total liabilities and equity
1 370
5 600
75.4
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Consolidated Statement of Cash Flows (in millions of RUB and
USD)
Year ended
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
(audited)
(audited)
(unaudited)
Cash flows from operating
activities
Loss before income tax
(639)
(2 797)
(37.6)
Adjusted for:
Depreciation and amortization
200
279
3.8
Employee share-based payment expense
558
2 549
34.3
Finance income
(11)
(19)
(0.3)
Finance costs
72
61
0.8
Foreign currency exchange (gain) / loss,
net
1
(53)
(0.7)
Allowance for expected credit losses
-
16
0.2
Working capital changes:
Increase in trade and other
receivables
(61)
(238)
(3.2)
Increase in advances paid and prepaid
expenses
(32)
(9)
(0.1)
Increase in other assets
(13)
(232)
(3.1)
Increase / (decrease) in trade and other
payables
(4)
235
3.2
Increase in contract liabilities and
deferred income
148
230
3.1
(Decrease) / increase in other
liabilities
98
(2 017)
(27.1)
Cash generated from operating
activities
317
(1 995)
(26.9)
Income tax paid
(28)
(26)
(0.3)
Interest received
11
16
0.2
Interest paid
(70)
(59)
(0.8)
Net cash generated from operating
activities
230
(2 064)
(27.8)
Cash flows from investing
activities
Acquisition of a subsidiary, net of cash
acquired
-
(1 651)
(22.2)
Purchase of property and equipment
(21)
(52)
(0.7)
Purchase of intangible assets
(90)
(89)
(1.2)
Loan issued to a related party
-
(25)
(0.3)
Loans collected from employees
2
-
-
Net cash used in investing
activities
(109)
(1 817)
(24.5)
Cash flows from financing
activities
Proceeds from the issue of ordinary
shares
-
6 520
87.8
Proceeds from borrowings
320
-
-
Repayment of borrowings
(71)
(728)
(9.8)
Payment of principal portion of lease
liabilities
(67)
(38)
(0.5)
Net cash generated from financing
activities
182
5 754
77.5
Net increase in cash and cash
equivalents
303
1 873
25.2
Cash and cash equivalents at the
beginning of the period
148
449
6.0
Effect of exchange rate changes on cash
and cash equivalents
(2)
111
1.5
Effect of an allowance for expected credit
losses
-
(14)
(0.2)
Cash and cash equivalents at the end of
the period
449
2 419
32.6
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
Non-IFRS Financial Measures and Supplemental Financial
Information
Use of Non-IFRS Financial Measures
We use Adjusted EBITDA, Core Business Adjusted EBITDA for Moscow
and the Moscow region, Core Business Adjusted EBITDA for Other
regions, Adjusted EBITDA Margin and Core Business Adjusted EBITDA
Margin as non-IFRS financial measure in assessing our operating
performance and in our financial communications.
Adjusted EBITDA, Core Business Adjusted EBITDA for Moscow and
the Moscow region, Core Business Adjusted EBITDA for Other regions,
Adjusted EBITDA Margin and Core Business Adjusted EBITDA Margin are
financial measures that are not calculated in accordance with IFRS.
These non-IFRS financial measures should not be considered in
isolation or as an alternative or a substitute to loss for the
period, which is the most directly comparable IFRS measure, or any
other measure of financial performance calculated and presented in
accordance with IFRS. Adjusted EBITDA, Core Business Adjusted
EBITDA for Moscow and the Moscow region, Core Business Adjusted
EBITDA for Other regions, Adjusted EBITDA Margin and Core Business
Adjusted EBITDA Margin have limitations as analytical tools. Some
of these limitations are:
- they exclude depreciation and amortization expense and,
although these are non-cash expenses, the assets being depreciated
may have to be replaced in the future, increasing our cash
requirements;
- they do not reflect interest expense, or the cash required to
service our debt, which reduces cash available to us;
- they do not reflect income tax payments that reduce cash
available to us;
- they do not reflect share-based compensation expenses and,
therefore, do not include all of our employee-related expenses;
and
- other companies, including companies in our industry, may
calculate those measures differently, which reduces their
usefulness as comparative measures.
The sum of Core Business Adjusted EBITDA, Mortgage Marketplace
Adjusted EBITDA, Valuation and Analytics Adjusted EBITDA, C2C
Rental Adjusted EBITDA and End-to-End Offerings Adjusted EBITDA
differs from Adjusted EBITDA because Core Business Adjusted EBITDA,
Mortgage Marketplace Adjusted EBITDA, Valuation and Analytics
Adjusted EBITDA, C2C Rental Adjusted EBITDA and End-to-End
Offerings Adjusted EBITDA presented in the table below are our
segment measures of profit or loss and, therefore, are not
considered non IFRS financial measures and include adjustments for
share-based payment expenses, income from the depository,
IPO-related costs as well as lease related amortization and
interest, capitalized development costs, and operating expense
related to software licenses.
The tables below provide detailed reconciliations of each
non-IFRS financial measure we use from the most directly comparable
IFRS financial measure.
Reconciliation of Adjusted EBITDA from Loss for the period,
the most directly comparable IFRS financial measure (in millions of
RUB and USD)
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
Profit/ (loss) for the period
18
(888)
(12.0)
Income tax expense
12
79
1.1
Profit/ (loss) before income
tax
30
(809)
(10.9)
Depreciation and amortization
49
73
1.0
Finance expenses, net(2)
13
8
0.1
Foreign currency exchange loss / (gain),
net
1
(81)
(1.1)
Share-based payment expenses
55
764
10.3
IPO-related costs
-
167
2.2
Income from the depositary
-
(6)
(0.1)
Adjusted EBITDA(3)
148
116
1.6
Adjusted EBITDA Margin(4)
11.8%
6.5%
6.5%
Year ended (unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
Loss for the period
(627)
(2 857)
(38.5)
Income tax (benefit) / expense
(12)
60
0.8
Loss before income tax
(639)
(2 797)
(37.6)
Depreciation and amortization
200
279
3.8
Finance expenses, net(2)
61
42
0.6
Foreign currency exchange loss / (gain),
net
1
(53)
(0.7)
Share-based payment expenses
558
2 549
34.3
IPO-related costs
-
304
4.1
Income from the depositary
-
(6)
(0.1)
Adjusted EBITDA(3)
181
318
4.3
Adjusted EBITDA Margin(4)
4.6%
5.3%
5.3%
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
2Comprises finance costs and finance
income for the respective periods
3Defined as profit / (loss) for the period
adjusted to exclude income tax (benefit) / expense, finance costs,
finance income, foreign currency exchange loss / (gain), net,
depreciation and amortization, share-based payments under
equity-based incentive program consisting of phantom share options
and restricted share units, IPO-related costs, income from the
depository and goodwill impairment
4 Defined as Adjusted EBITDA divided by
revenue for the respective periods
Segment Data and Reconciliation to Adjusted EBITDA (in
millions of RUB and USD)
Three months ended
(unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
Adjusted EBITDA
148
116
1.6
Capitalized development costs
(12)
-
-
Reclassification of lease related
amortization and interest
(18)
(18)
(0.2)
Reclassification of operating expense
related to software licenses to amortization
(9)
(11)
(0.1)
Segment Adjusted EBITDA
109
87
1.2
Core Business Adjusted EBITDA(2)
254
393
5.3
Core Business Adjusted EBITDA for Moscow
and the Moscow region(3)
585
663
8.9
Core Business Adjusted EBITDA for Other
regions(3)
(331)
(270)
(3.6)
Mortgage Marketplace Adjusted EBITDA
(92)
(130)
(1.7)
Valuation and Analytics Adjusted
EBITDA
(24)
(26)
(0.3)
C2C Rental Adjusted EBITDA
(29)
(43)
(0.6)
End-to-End Offerings Adjusted EBITDA
-
(107)
(1.4)
Core Business Adjusted EBITDA
Margin(4)
21.4%
24.4%
24.4%
Year ended (unaudited)
December 31, 2020
December 31, 2021
December 31, 2021
RUB
RUB
USD(1)
Adjusted EBITDA
181
318
4.3
Capitalized development costs
(43)
-
-
Reclassification of lease related
amortization and interest
(74)
(60)
(0.8)
Reclassification of operating expense
related to software licenses to amortization
(31)
(45)
(0.6)
Segment Adjusted EBITDA
33
213
2.9
Core Business Adjusted EBITDA(2)
532
1 139
15.3
Core Business Adjusted EBITDA for Moscow
and the Moscow region(3)
1 714
2 362
31.8
Core Business Adjusted EBITDA for Other
regions(3)
(1 182)
(1 223)
(16.5)
Mortgage Marketplace Adjusted EBITDA
(254)
(482)
(6.5)
Valuation and Analytics Adjusted
EBITDA
(119)
(72)
(1.0)
C2C Rental Adjusted EBITDA
(126)
(148)
(2.0)
End-to-End Offerings Adjusted EBITDA
-
(224)
(3.0)
Core Business Adjusted EBITDA
Margin(4)
13.9%
20.2%
20.2%
1Dollar translations throughout this
release are included solely for the convenience of the reader and
were calculated at the exchange rate quoted by the Central Bank of
Russia as of December 31, 2021 (RUB 74.2926 to USD 1.00)
2The sum of Core Business Adjusted EBITDA,
Mortgage Marketplace Adjusted EBITDA, Valuation and Analytics
Adjusted EBITDA, C2C Rental Adjusted EBITDA and End-to-End
Offerings Adjusted EBITDA differs from Adjusted EBITDA because Core
Business Adjusted EBITDA, Mortgage Marketplace Adjusted EBITDA,
Valuation and Analytics Adjusted EBITDA, C2C Rental Adjusted EBITDA
and End-to-End Offerings Adjusted EBITDA presented in the table
below are our segment measures of profit or loss and, therefore,
are not considered non IFRS financial measures and include
adjustments for lease related amortization and interest,
capitalized development costs, and operating expense related to
software licenses
3For the purpose of calculating Core
Business Adjusted EBITDA for Moscow and the Moscow region and Core
Business Adjusted EBITDA for Other regions: (i) revenues are
attributed to the relevant region based primarily on the location
of the relevant property listed; and (ii) costs are directly
attributed to the relevant region with respect to which they were
incurred, when possible. Due to the integrated structure of our
business, certain costs may benefit all our regions. These costs
primarily include certain headcount-related expenses, certain
marketing and advertising costs, product development, IT expenses
(including hosting and technical support expenses and
telecommunication services), office maintenance expenses and other
general corporate expenses, such as finance, accounting, legal,
human resources, recruiting and facilities costs. These costs are
allocated to Moscow and the Moscow region and Other regions based
on the estimated benefit each region receives from such expenses,
using specific allocation drivers representing this benefit
4Defined as Core Business Adjusted EBITDA
divided by Core Business revenue for the respective periods.
Other Historical Operational Data
Average UMV (1) (in
millions)
Listings (2) (in
millions)
Listings Moscow and the Moscow
region
Listings Other regions
Leads to developers (3) (in
thousands)
March 31, 2019
12.7
1.98
0.38
1.60
48.0
June 30, 2019
12.6
1.98
0.39
1.59
41.5
September 30, 2019
14.0
1.92
0.37
1.55
45.8
December 31, 2019
14.1
1.78
0.35
1.43
44.3
March 31, 2020
15.5
1.74
0.32
1.42
54.0
June 30, 2020
14.9
2.30
0.46
1.83
49.9
September 30, 2020
18.0
2.38
0.37
2.01
75.1
December 31, 2020
17.6
2.14
0.32
1.82
65.8
March 31, 2021
21.0
2.04
0.30
1.74
60.2
June 30, 2021
19.7
2.25
0.32
1.93
53.2
September 30, 2021
18.7
1.90
0.31
1.59
57.3
December 31, 2021
18.5
1.78
0.29
1.49
58.6
1 Average Unique Monthly Visitors (UMV)
means the average number of users and customers visiting our
platform (websites and mobile application) per month in a
particular period, excluding bots. Average UMV for a particular
period is calculated by aggregating the UMV for each month within
such period and dividing by the number of months. For 2020, 2019
and their respective interim periods, Average UMV is calculated
based on Google Analytical data; for 2021, Average UMV is
calculated as a sum of Average UMV for the Cian Group (excluding
the N1 Group) based on Google Analytics data and Average UMV for
the N1 Group based on Yandex.Metrica data
2 Listings means the daily average number
of real estate listings posted on our platform by agents and
individual sellers for a particular period
3 Leads to developers means the number of
paid target calls, lasting 30 seconds or longer, made through our
platform by home searchers to real estate developers, for a
particular period
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220404005951/en/
Investors: Varvara Kiseleva Head of Capital Markets and
IR ir@cian.ru
Media: Russian media: Olga Podoliaka po@cian.ru
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