Cian PLC (NYSE: CIAN, MOEX: CIAN) (“Cian”, the “Group” or the
“Company”), a leading online real estate classifieds platform in
Russia, today announced its financial results for the first quarter
ended March 31, 2022.
First Quarter 2022 Key Financial and Operational
Highlights1
- Revenue increased by 38% Y-o-Y to RUB 1,726 million ($20.5
million).
- Profit for the period amounted to RUB 44 million ($0.5
million).
- Adjusted EBITDA2 turned positive and reached RUB 56 million
($0.7 million).
- Adjusted EBITDA Margin2 amounted to 3.2%.
- Average UMV (Unique Monthly Visitors)3 decreased by 10% Y-o-Y
to 19.2 million.
- Core Business revenue increased by 36% Y-o-Y to RUB 1,622
million ($19.3 million).
- Core Business Adjusted EBITDA4 increased by 96% Y-o-Y to RUB
261 million ($3.1 million).
- Core Business Adjusted EBITDA Margin2,5 improved by 5 ppt Y-o-Y
and reached 16.1%.
Maxim Melnikov, Executive Chairperson of the Board of Directors
of Cian PLC, commented: “In the first quarter 2022 Cian showed
strong growth and reached profitability notwithstanding the
challenges that we faced towards the end of the quarter. As a
result of its countercyclical nature our business continues to
demonstrate robust performance despite volatile market conditions
and decreasing demand for real estate. Moreover, based on our prior
experience we believe that during the times of economic downturns
our key customer groups such as realtors and developers tend to
allocate their marketing budgets towards the market leader helping
the first-choice player to solidify its positions. Given existing
uncertainty and market volatility, we will continue to closely
monitor developments in our key markets and make every effort to
minimize any negative impact on our business and secure future
growth.”
Dmitriy Grigoriev, Chief Executive Officer of Cian PLC,
commented: “Despite adverse market environment, our business showed
positive dynamics. Monetization introduction in new regions and
price increases as well as a solid increase in advertising
investments by developers on our platform resulted in a significant
revenue growth that outpaced the increase of operating expenses and
resulted in positive adjusted EBITDA. We believe that even in
challenging market conditions our business will be able to continue
its steady growth.”
First Quarter 2022 Results
Factors affecting year-over-year trends and
comparisons
We believe that trends in the real estate market in the first
quarter of 2022 were particularly characterized by the following
events: (i) key interest rate hike to 20.0% in late February 2022
which in combination with tight subsidized mortgage limits led to
the decrease in the demand for primary and secondary real estate,
as well as in the mortgage market; (ii) that decline was partially
offset by a temporary increase in demand in the real estate market
in the second half of February and March that was driven by the
challenging geopolitical and economic environment.
Although the Central Bank of the Russian Federation (CBR)
decreased the key interest rate three times in a row to 17.0%
(April 8), 14.0% (April 29) and 11.0% (May 26), mortgage interest
rates remain high and we believe continue to pressure the demand
for real estate.
Revenue
Revenue for the three months ended March 31, 2022 amounted to
RUB 1,726 million compared to RUB 1,248 million for the three
months ended March 31, 2021, demonstrating an increase of RUB 478
million, or 38%. 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)
March 31, 2021
March 31, 2022
March 31, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Total Revenue
1,248
1,726
20.5
38%
Core Business, including
1,191
1,622
19.3
36%
Listing revenue
754
998
11.9
32%
Lead generation revenue
300
473
5.6
58%
Display advertising revenue
134
146
1.7
9%
Mortgage Marketplace
45
69
0.8
53%
Valuation and Analytics
12
14
0.2
17%
End-to-End Offerings
-
21
0.2
-
____________________
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
Core Business segment revenue
Core Business revenue reached RUB 1,622 million for the three
months ended March 31, 2022, increasing by 36% compared to RUB
1,191 million for the three months ended March 31, 2021. 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 March 31, 2022 was RUB 1,191 million, an
increase of RUB 290 million, or 32%, compared to RUB 901 million
for the same period of the prior year. Core Business revenue in
other Russian regions for the three months ended March 31, 2022 was
RUB 431 million, an increase of RUB 141 million, or 49%, as
compared to RUB 290 million for the same period of the prior
year.
Listing revenue (secondary and commercial real estate
verticals)
Listing revenue increased by 32% to RUB 998 million for the
three months ended March 31, 2022 from RUB 754 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)
March 31, 2021
March 31, 2022
Y-o-Y growth
Listing revenue, including (RUB,
million)
754
998
32%
Moscow and Moscow Region
542
688
27%
Other Russian Regions
212
310
46%
Listings(1), including
(million)
2.04
1.70
(17%)
Moscow and Moscow Region
0.30
0.28
(6%)
Other Russian Regions
1.74
1.42
(19%)
Average daily revenue per listing(2)
(RUB)
4.1
6.7
59%
Moscow and Moscow Region
19.9
26.9
35%
Other Russian Regions
1.4
2.4
80%
____________________
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
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 42 regions (including
our core markets of Moscow, the Moscow region, Saint Petersburg and
the Leningrad region) as of March 31, 2022 as compared to 8 as of
March 31, 2021;
- listings services price increases, which were implemented as a
part of a regular review of listing rates.
In the three months ended March 31, 2022, we had approximately
1.7 million listings on our platform, compared to approximately 2.0
million in the three months ended March 31, 2021. The decrease in
the number of listings was predominantly driven by monetization
re-introduction, price increases (decline in stale, duplicate and
other illiquid listings) and general market uncertainty. Increase
of the key interest rate motivated people and developers to close
deals swiftly before mortgage rates increase. At the same time,
some owners opted to postpone any deals waiting for the
stabilization of the economy. Both of these factors negatively
affected the amount of content on our platform.
In the beginning of the second quarter 2022, we see that the
number of listings on our platform as well as the exposition time
of a listing is increasing, which significantly supports our
secondary real estate vertical.
Lead generation and display advertising revenue (primary real
estate vertical)
Lead generation revenue increased by 58% to RUB 473 million in
the three months ended March 31, 2022 from RUB 300 million in the
three months ended March 31, 2021. Display advertising revenue
increased by 9% to RUB 146 million for the three months ended March
31, 2022.
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, higher investments in
value-added services in March as a result of increased developers
market activity, and new tariff launch in January 2022. The growth
of average revenue per lead to developers was supported by an
increase in the number of leads to developers from approximately 60
thousand in the first quarter of 2021 to approximately 62 thousand
in the first quarter of 2022. The modest increase in the number of
leads to developers was driven mainly by lower demand in the market
as a result of narrower range of property objects eligible for
subsidized mortgage program after the change of the parameters of
such program such as decrease in July 2021 of maximum mortgage
limits by 4 times for Moscow, St. Petersburg and their regions and
by 2 times for other regions along with the slight increase in rate
from 6.5% to 7.0%.
Mortgage marketplace segment revenue
Mortgage Marketplace revenue was RUB 69 million for the three
months ended March 31, 2022 compared to RUB 45 million for the same
period of the prior year, corresponding to an increase of RUB 24
million or 53% driven primarily by the growth of mortgage market in
Russia in the first quarter of 2022 partially offset by an abrupt
decrease starting from the end of February 2022 driven by a sharp
increase of key interest rate from 9.5% to 20.0% on February 28 by
CBR.
Operating expenses
Total operating expenses increased by 19% to RUB 1,913 million
in the three months ended March 31, 2022 from RUB 1,608 million in
the three months ended March 31, 2021, primarily driven by an
increase in marketing and employee-related expense, as well as
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)
March 31, 2021
March 31, 2022
March 31, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Operating expenses
1,608
1,913
22.8
19%
Marketing expenses
605
691
8.2
14%
Employee-related expenses, including
799
884
10.5
11%
Wages, salaries and related taxes
557
689
8.2
24%
Share-based payment expense
228
175
2.1
-23%
IT expenses
96
136
1.6
42%
Depreciation and amortization
64
68
0.8
6%
Other operating expenses
44
134
1.6
205%
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
Employee-related expenses
Employee-related expenses increased by 11% to RUB 884 million in
the three months ended March 31, 2022 from RUB 799 million in the
three months ended March 31, 2021. Wages, salaries and related
taxes and other employee-related expenses were a total of RUB 689
million for the three months ended March 31, 2022 compared to RUB
557 million for the three months ended March 31, 2021. This
increase was primarily due to headcount growth and salary growth in
line with the market level.
Wages, salaries and related taxes as a percentage of revenue
decreased year-over-year from 44.6% for the first quarter of 2021
to 39.9% for the first quarter 2022.
Marketing expenses
Marketing expenses increased to RUB 691 million in the three
months ended March 31, 2022 from RUB 605 million in the three
months ended March 31, 2021. This increase was primarily driven by
shifting a main focus to offline marketing (TV advertising) and
growth of TV ads costs.
Marketing expenses as a percentage of revenue decreased to 40.0%
in the first quarter of 2022 from 48.5% in the first quarter of
2021, driven primarily by the increase in revenue.
IT expenses
IT expenses increased by 42% to RUB 136 million in the three
months ended March 31, 2022 from RUB 96 million in the three months
ended March 31, 2021. This increase was primarily driven by our
transition to cloud hosting services, expansion of our call
tracking as well as currency rate growth in the first quarter of
2022.
Other operating expenses
Other operating expenses increased by 205% to RUB 134 million in
the three months ended March 31, 2022 from RUB 44 million in the
three months ended March 31, 2021, primarily driven by the capital
markets and consulting expenses growth.
Profit for the period
Profit for the three months ended March 31, 2022 was RUB 44
million compared to a loss of RUB 383 million for the three months
ended March 31, 2021. The change from loss for the period to profit
for the period was driven primarily by the same factors as
affecting our Adjusted EBITDA described below as well as a foreign
currency exchange gain of RUB 185 related to our USD denominated
cash balances.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the three months ended March 31, 2022
reached RUB 56 million, compared to negative RUB 68 million for the
three months ended March 31, 2021. The increase in Adjusted EBITDA
was primarily driven by the revenue growth partially offset by
increase in operating costs.
Adjusted EBITDA Margin increased by 8.7 ppt to 3.2% for the
three months ended March 31, 2022.
Core Business Adjusted EBITDA increased by 96% to RUB 261
million in the three months ended March 31, 2022 from RUB 133
million in the three months ended March 31, 2021. 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 4.9 ppt
reaching 16.1% for the three months ended March 31, 2022.
Mortgage Marketplace Adjusted EBITDA was negative RUB 59 million
in the three months ended March 31, 2022 compared to negative RUB
123 million in the three months ended March 31, 2021. The dynamic
was primarily driven by more than 50% revenue growth outpacing the
growth of operating expenses (24% y-o-y).
Recent Developments
Impact of the Latest Geopolitical Developments on the
Company
On February 24, 2022, Russian military forces commenced a
special military operation in Ukraine and the length, prolonged
impact and outcome of this ongoing military operation remains
highly unpredictable. In response to the military operation in
Ukraine, the United States, the United Kingdom, the European Union
governments and other countries, have imposed unprecedented
sanctions and export-control measures. The imposed sanctions have
targeted large parts of the Russian’s economy. 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.
On February 28, 2022, the Central Bank of the Russian Federation
(CBR) sharply increased the key interest rate from 9.5% to 20.0%.
In the second quarter 2022, in response to a significant slowdown
of inflation after it peaked in March, the CBR subsequently
decreased the key interest rate three times to 17.0% (April 8),
14.0% (April 29) and 11.0% (May 26).
Simultaneously, government continues to support affordability of
real estate by among other measures expanding the maximum limits of
subsidized mortgages to RUB 30 million in Moscow and St. Petersburg
and to RUB 15 million in other regions. Although the subsidized sum
remained the same (RUB 12 million in Moscow and St. Petersburg and
RUB 6 million in other regions) it will be possible to cover the
rest of the limit by a mortgage with market interest rate.
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. 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.
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.
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.
First Quarter 2022 Financial Results Conference Call
In light of the existing uncertainty and market volatility, the
Company will not be conducting its first quarter 2022 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 first
quarter of 2022, the Company had over 1.7 million listings
available through its platform and the monthly audience with an
average UMV of over 19.1 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.
Source: Cian PLC
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)
March 31, 2021
March 31, 2022
March 31, 2022
RUB
RUB
USD(1)
Revenue
1,248
1,726
20.5
Operating expenses:
Marketing expenses
(605)
(691)
(8.2)
Employee-related expenses
(799)
(884)
(10.5)
IT expenses
(96)
(136)
(1.6)
Depreciation and amortization
(64)
(68)
(0.8)
Other operating expenses
(44)
(134)
(1.6)
Total operating expenses
(1,608)
(1,913)
(23)
Operating loss
(360)
(187)
(2.2)
Finance costs
(16)
(4)
(0.0)
Finance income
3
12
0.1
Foreign currency exchange (loss)/gain,
net
(27)
185
2.2
Other income
-
9
0.1
Profit/(loss) before income tax
(400)
15
0.2
Income tax benefit
17
29
0.3
Profit/(loss) for the period
(383)
44
0.5
Total comprehensive income/(loss) for
the period
(383)
44
0.5
Profit/(loss) per share, in RUB
Basic profit / (loss) per share
attributable to ordinary equity holders of the parent
(6.13)
0.63
0.01
Diluted profit / (loss) per share
attributable to ordinary equity holders of the parent
(6.13)
0.62
0.01
Basic weighted average number of ordinary
shares, in thousand
62,464
69,872
69,872
Diluted weighted average number of
ordinary shares, in thousand
62,464
71,299
71,299
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
Consolidated Statement of Financial Position (in millions of
RUB and USD)
As of
December 31, 2021
March 31, 2022
March 31, 2022
RUB
RUB
USD(1)
(audited)
(unaudited)
(unaudited)
Assets
Non-current assets
Property and equipment
49
56
0.7
Right-of-use assets
98
86
1.0
Goodwill
785
785
9.3
Intangible assets
1,197
1,170
13.9
Deferred tax assets
226
262
3.1
Other non-current assets
15
15
0.2
Total non-current assets
2,370
2,374
28.2
Current assets
Inventories
108
112
1.3
Advances paid and prepaid expenses
93
147
1.7
Trade and other receivables
408
354
4.2
Prepaid income tax
4
2
0.0
Cash and cash equivalents
2,419
2,578
30.7
Other current assets
198
94
1.1
Total current assets
3,230
3,287
39.1
Total assets
5,600
5,661
67.3
Equity and liabilities
Equity
Share capital
2
2
0.0
Share premium
7,614
7,614
90.6
Equity-settled employee benefits
reserves
110
285
3.4
Accumulated losses
(3,854)
(3,810)
(45.3)
Total equity
3,872
4,091
48.7
Liabilities
Non-current liabilities
Lease liabilities
48
42
0.5
Deferred tax liabilities
135
134
1.6
Deferred income
125
127
1.5
Total non-current liabilities
308
303
3.6
Current liabilities
Contract liabilities
425
387
4.6
Trade and other payables
619
549
6.5
Income tax payable
59
4
0.0
Other taxes payable
241
256
3.0
Lease liabilities
43
38
0.5
Deferred income
33
33
0.4
Total current liabilities
1,420
1,267
15.1
Total liabilities
1,728
1,570
18.7
Total liabilities and equity
5,600
5,661
67.3
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
Consolidated Statement of Cash Flows (in millions of RUB and
USD)
Three months ended
(unaudited)
March 31, 2021
March 31, 2022
March 31, 2022
RUB
RUB
USD(1)
(audited)
(audited)
(unaudited)
Cash flows from operating
activities
Loss before income tax
(400)
15
0.2
Adjusted for:
Depreciation and amortization
64
68
0.8
Employee share-based payment expense
228
175
2.1
Finance income
(3)
(12)
(0.1)
Finance costs
16
4
0.0
Foreign currency exchange (gain) / loss,
net
27
(185)
(2.2)
(Reversal) / Allowance for expected credit
losses
1
(7)
(0.1)
Working capital changes:
Decrease / (increase) in trade and other
receivables
(40)
57
0.7
Increase in advances paid and prepaid
expenses
(4)
(54)
(0.6)
Decrease / (increase) in other assets
(58)
100
1.2
(Decrease) / increase in trade and other
payables
47
(124)
(1.5)
(Decrease) / increase in contract
liabilities and deferred income
6
(47)
(0.6)
Increase in other liabilities
73
16
0.2
Cash generated from / (used in)
operating activities
(43)
6
0.1
Income tax paid
(18)
(61)
(0.7)
Interest received
3
12
0.1
Interest paid
(16)
(2)
(0.0)
Net cash used in operating
activities
(74)
(45)
(0.6)
Cash flows from investing
activities
Acquisition of a subsidiary, net of cash
acquired
(1,651)
-
-
Purchase of property and equipment
(9)
(15)
(0.2)
Purchase of intangible assets
(20)
(19)
(0.2)
Net cash used in investing
activities
(1,680)
(34)
(0.4)
Cash flows from financing
activities
Proceeds from the issue of ordinary
shares
2,265
-
-
Repayment of borrowings
(93)
-
-
Payment of principal portion of lease
liabilities
(10)
(11)
(0.1)
Net cash (used in) / generated from
financing activities
2,162
(11)
(0.1)
Net (decrease) / increase in cash and
cash equivalents
408
(90)
(1.1)
Cash and cash equivalents at the
beginning of the period
449
2,419
28.8
Effect of exchange rate changes on cash
and cash equivalents
(1)
242
2.9
Reversal of allowance for expected credit
losses
-
7
0.1
Cash and cash equivalents at the end of
the period
856
2,578
30.7
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 March 31,
2022 (RUB 84.0851 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 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)
March 31, 2021
March 31, 2022
March 31, 2022
RUB
RUB
USD(1)
Profit/ (loss) for the period
(383)
44
0.5
Income tax expense
(17)
(29)
(0.3)
Profit/ (loss) before income
tax
(400)
15
0.2
Depreciation and amortization
64
68
0.8
Finance expenses, net(2)
13
(8)
(0.1)
Foreign currency exchange loss / (gain),
net
27
(185)
(2.2)
Share-based payment expenses
228
175
2.1
Income from the depositary
-
(9)
(0.1)
Adjusted EBITDA(3)
(68)
56
0.7
Adjusted EBITDA Margin(4)
-
3.2%
3.2%
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
2 Comprises finance costs and finance income for the respective
periods
3 Defined 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 and income from the depository
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)
March 31, 2021
March 31, 2022
March 31, 2022
RUB
RUB
USD(1)
Adjusted EBITDA(2)
(68)
56
0.7
Core Business Adjusted EBITDA
133
261
3.1
Core Business Adjusted EBITDA for Moscow
and the Moscow region(3)
474
694
8.3
Core Business Adjusted EBITDA for Other
regions(4)
(341)
(433)
(5.1)
Mortgage Marketplace Adjusted EBITDA
(123)
(59)
(0.7)
Valuation and Analytics Adjusted
EBITDA
(17)
(8)
(0.1)
C2C Rental Adjusted EBITDA
(35)
(5)
(0.1)
End-to-End Offerings Adjusted EBITDA
(26)
(133)
(1.6)
Core Business EBITDA margin
11.2%
16.1%
16.1%
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 March 31,
2022 (RUB 84.0851 to USD 1.00)
2 Starting from the first quarter 2022 the Group changed its
management reporting to be more convergent with IFRS. The following
differences were eliminated: (1) Reclassification of lease related
amortization and interest – for the purposes of CODM’s assessment
of operating performance rental expenses were previously considered
operating expenses included in Adjusted EBITDA, rather than
depreciation and interest expense, thus, IFRS 16 ‘Leases’ was not
applied for the purpose of management reporting; (2)
Reclassification of operating expense related to software licenses
to amortization – for the purposes of CODM’s assessment of
operating performance expenses related to software licenses were
considered operating expenses included in Adjusted EBITDA, rather
than amortization of intangible assets. The corresponding
information for the three months ended March 31, 2021 is restated
accordingly.
3 For 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
4 Defined 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
21.2(4)
2.04
0.30
1.74
60.2
June 30, 2021
19.9(4)
2.25
0.32
1.93
53.2
September 30, 2021
20.5(4)
1.90
0.31
1.59
57.3
December 31, 2021
20.3(4)
1.78
0.29
1.49
58.6
March 31, 2022
19.2
1.70
0.28
1.42
62.2
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
4 In the first quarter of 2022 we made a decision to change the
methodology of average UMV calculation. As of March 31, 2022, it
includes UMV of N1 that was not included before. Quarterly
historical numbers for 2021 have been recalculated retrospectively
for comparability with the new methodology and differ from the data
for the same periods published earlier in 6-K forms on April 5,
2022, and November 24, 2021
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 March 31,
2022 (RUB 84.0851 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 2022,
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220602005510/en/
Investor contacts: ir@cian.ru
Media contacts: Olga Podoliaka po@cian.ru
Cian (NYSE:CIAN)
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