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 second
quarter and six months ended June 30, 2022.
Second Quarter 2022 Key Financial and Operational
Highlights1
- Revenue increased by 31% Y-o-Y to RUB 1,905 million ($37.2
million).
- Loss for the period amounted to RUB 433 million ($8.5 million)
due to foreign currency exchange loss described in the
corresponding section below.
- Adjusted EBITDA2 increased by 303% Y-o-Y and reached RUB 480
million ($9.4 million).
- Adjusted EBITDA Margin2 increased by 17 ppt Y-o-Y to
25.2%.
- Average UMV (Unique Monthly Visitors)3 decreased by 13% Y-o-Y
to 17.3 million.
- Core Business revenue increased by 30% Y-o-Y to RUB 1,781
million ($34.8 million).
- Core Business Adjusted EBITDA4 increased by 106% Y-o-Y to RUB
645 million ($12.6 million).
- Core Business Adjusted EBITDA Margin2,5 improved by 13 ppt
Y-o-Y and reached 36.2%.
Six Months 2022 Key Financial and Operational
Highlights1
- Revenue increased by 34% Y-o-Y to RUB 3,631 million ($71.0
million).
- Loss for the period amounted to RUB 389 million ($7.6
million).
- Adjusted EBITDA2 increased by 951% Y-o-Y and reached RUB 536
million ($10.5 million).
- Adjusted EBITDA Margin2 increased by 13 ppt and amounted to
14.8%.
- Average UMV (Unique Monthly Visitors)3 decreased by 11% Y-o-Y
to 18.2 million.
- Core Business revenue increased by 33% Y-o-Y to RUB 3,403
million ($66.5 million).
- Core Business Adjusted EBITDA4 increased by 103% Y-o-Y to RUB
906 million ($17.7 million).
- Core Business Adjusted EBITDA Margin2,5 improved by 9 ppt Y-o-Y
and reached 26.6%.
Dmitriy Grigoriev, Chief Executive Officer of Cian PLC,
commented: “We are pleased with the growth of the Cian business
during the second quarter, especially as we have been operating in
unprecedentedly adverse market conditions. Our focus has been on
delivering revenue growth in our Core Business while maintaining
operating expense discipline.
The Core Business revenue growth was the result of a strong
uptick in our listing and lead generation revenue from the Moscow
and Moscow region, strong increase in demand for leads from
developers following market cooldown, and the successful roll out
of price increases in key segments of the market. As our revenue
levels are being restored, we resumed our spendings as well.”
Second Quarter and Six Months 2022 Results
Factors affecting year-over-year trends and
comparisons
We believe that trends in the real estate market in the first
half of 2022 were particularly characterized by the following
events: (i) the key interest rate increase to 20.0% in late
February 2022 which, in combination with tight subsidized mortgage
limits, led to an overall decrease in the demand mortgages and
subsequently for primary and secondary real estate; (ii) the
gradual decrease of the key interest rate (from 20.0% in late
February to 8.0% since late July) by the Central Bank of the
Russian Federation (CBR) and recovery in subsidized mortgage
programs both by the Government and developers led to a gradual
demand recovery from the second half of May.
Second Quarter 2022 Results
Audience
Average UMV (Unique Monthly Visitors) for the three months ended
June 30, 2022 decreased by 13% Y-o-Y to 17.3 million. This decline
in visitors was mainly driven by the overall decrease in demand for
primary and secondary real estate following the key interest rate
hike in February 2022. In response to this uncertainty and
decreased overall demand for real estate, the Company decreased its
marketing expenses to avoid ineffective spending.
Revenue
Revenue for the three months ended June 30, 2022 amounted to RUB
1,905 million compared to RUB 1,372 million for the three months
ended June 30, 2021, an increase of RUB 449 million, or 31%. The
revenue increase was primarily driven by growth in the Core
Business segment.
The following table outlines a breakdown of revenue by segment
and type for the periods indicated (in millions of RUB and
USD):
Three months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Total Revenue
1,456
1,905
37.2
31%
Core Business, including
1,372
1,781
34.8
30%
Listing revenue
943
1,143
22.3
21%
Lead generation revenue
295
487
9.5
65%
Display advertising revenue
133
144
2.8
8%
Mortgage Marketplace
74
31
0.6
-58%
Valuation and Analytics
9
15
0.3
67%
C2C Rental
1
-
-
-
End-to-End Offerings
-
78
1.5
-
____________________
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 June 30,
2022 (RUB 51.1580 to USD 1.00)
Core Business segment revenue
Core Business revenue reached RUB 1,781 million for the three
months ended June 30, 2022, an increase of 30% from RUB 1,372
million for the three months ended June 30, 2021. Core Business
revenue growth was driven by strong performance across all key
revenue streams – listing revenue, lead generation, and display
advertising revenue.
Listing revenue (secondary and commercial real estate
verticals)
Listing revenue increased by 21% to RUB 1,143 million for the
three months ended June 30, 2022 from RUB 943 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)
June 30, 2021
June 30, 2022
Y-o-Y growth
Listing revenue, including (RUB,
million)
943
1,143
21%
Moscow and Moscow Region
642
794
24%
Other Russian Regions
301
349
16%
Listings(1), including
(million)
2.25
1.86
(17%)
Moscow and Moscow Region
0.32
0.35
9%
Other Russian Regions
1.93
1.51
(22%)
Average daily revenue per listing(2)
(RUB)
4.6
6.8
48%
Moscow and Moscow Region
22.0
24.9
13%
Other Russian Regions
1.7
2.5
53%
____________________
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
The growth of the Сore Business listing revenue was primarily
driven by the following factors:
- re-launch of paid listing services following their temporary
suspension from April 2020 due to the COVID-19 pandemic; and
- listings services price increases, which were implemented as a
part of a regular review of listing rates.
In the three months ended June 30, 2022, we had approximately
1.86 million listings on our platform, compared to approximately
2.25 million in the three months ended June 30, 2021. The decrease
in the number of listings from the Other Russian Regions was
predominantly driven by monetization re-introduction and price
increases. Meanwhile, a 10% Y-o-Y growth of content in Moscow and
the Moscow region was the important driver of listing revenue
growth in this region. Since April, the number of listings has been
increasing M-o-M. The Company’s successful “+30% of content for
free” campaign also contributed to the growth of listings.
Lead generation and display advertising revenue (primary real
estate vertical)
Lead generation revenue increased by 65% to RUB 487 million in
the three months ended June 30, 2022 from RUB 295 million in the
three months ended June 30, 2021. Display advertising revenue
increased by 8% to RUB 144 million for the three months ended June
30, 2022.
Lead generation revenue growth was mainly driven by the increase
in the average revenue per lead to developers as a result of more
active participation of developers in auctions1, higher investment
by developers in value-added services, price increases, and a new
tariff roll-out.
Mortgage marketplace segment revenue
Mortgage Marketplace revenue was RUB 31 million for the three
months ended June 30, 2022 compared to RUB 74 million for the same
period of the prior year, corresponding to a decrease of RUB 43
million or 58%. This decrease was due to the key interest rate hike
in late February. This segment grew during the second quarter due
to general recovery in the market as a result of the gradual key
interest rate decrease and re-introduction of subsidized mortgage
programs by the government and developers.
Operating expenses
Total operating expenses decreased by 39% to RUB 1,674 million
in the three months ended June 30, 2022 compared with RUB 2,737
million in the three months ended June 30, 2021, primarily driven
by a decrease in marketing and employee-related 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)
June 30, 2021
June 30, 2022
June 30, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Operating expenses
2,737
1,674
32.7
-39%
Marketing expenses
524
349
6.8
-33%
Employee-related expenses, including
1,833
906
17.7
-51%
Wages, salaries and related taxes
567
708
13.8
25%
Share-based payment expense
1,242
178
3.5
-86%
IT expenses
133
126
2.5
-5%
Depreciation and amortization
70
71
1.4
1%
Other operating expenses
177
222
4.3
25%
IPO related expenses
88
-
-
-
Employee-related expenses
Employee-related expenses decreased by 51% to RUB 906 million in
the three months ended June 30, 2022 from RUB 1,833 million in the
three months ended June 30, 2021. This was mainly due to a decrease
in the share-based payment expense, as the previous Phantom Share
Program was settled upon the IPO. Wages, salaries, and related
taxes and other employee-related expenses were a total of RUB 708
million for the three months ended June 30, 2022 compared to RUB
567 million for the three months ended June 30, 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 38.9% for the second quarter of 2021
to 37.2% for the second quarter of 2022.
Marketing expenses
Marketing expenses decreased to RUB 349 million in the three
months ended June 30, 2022 from RUB 524 million in the three months
ended June 30, 2021. This decrease was primarily driven by lower
spending on online marketing due to the uncertainty on the mortgage
market and limited visibility on the broader economic
situation.
Marketing expenses as a percentage of revenue decreased to 18.3%
in the second quarter of 2022 from 36.0% in the second quarter of
2021.
IT expenses
IT expenses decreased by 5% to RUB 126 million in the three
months ended June 30, 2022 from RUB 133 million in the three months
ended June 30, 2021. This decrease was primarily driven by positive
FX effect, as part of the Company’s hosting expenses are
denominated in foreign currency.
Other operating expenses
Other operating expenses increased by 25% to RUB 222 million in
the three months ended June 30, 2022 from RUB 177 million in the
three months ended June 30, 2021. This was primarily driven by the
cost of properties sold as part of our Home Swap service, which
totaled RUB 66 million in the second quarter of 2022. Another
factor contributing to the increase was growth in capital markets
and consulting expenses.
Loss for the period
Loss for the three months ended June 30, 2022 was RUB 433
million compared to a loss of RUB 1,287 million for the three
months ended June 30, 2021. The change in loss for the period was
driven primarily by the same factors as affecting our Adjusted
EBITDA described below as well as a foreign currency exchange loss
of RUB 663 related to our USD-denominated cash balances.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the three months ended June 30, 2022 reached
RUB 480 million compared to RUB 119 million for the three months
ended June 30, 2021. The increase in Adjusted EBITDA was primarily
driven by the revenue growth supported by the decrease in operating
costs.
Adjusted EBITDA Margin increased by 17.0 ppt to 25.2% for the
three months ended June 30, 2022.
Core Business Adjusted EBITDA increased by 106% to RUB 645
million in the three months ended June 30, 2022 from RUB 313
million in the three months ended June 30, 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 13.4 ppt
reaching 36.2% for the three months ended June 30, 2022.
Mortgage Marketplace Adjusted EBITDA was negative RUB 45 million
in the three months ended June 30, 2022 compared to negative RUB
106 million in the three months ended June 30, 2021. The dynamic
was primarily driven by a sharp decrease in demand on mortgage (as
a result of a hike of CBR key rate) and substantial decrease in
marketing spendings due to uncertainty in the mortgage market.
Six Months 2022 Results
Audience
Average UMV (Unique Monthly Visitors) for the six months ended
June 30, 2022 was down by 11% Y-o-Y to 18.2 million. The main
reasons for that decrease were a high level of uncertainty in the
second quarter of 2022 due to the key interest rate increase in
February 2022 (please refer to the corresponding section above for
a more detailed description).
Revenue
Revenue for the six months ended June 30, 2022 amounted to RUB
3,631 million compared to RUB 2,704 million for the six months
ended June 30, 2021, demonstrating an increase of RUB 927 million,
or 34%. The revenue growth was mainly driven by growth of the Core
Business 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):
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Total Revenue
2,704
3,631
71.0
34%
Core Business, including
2,563
3,403
66.5
33%
Listing revenue
1,697
2,141
41.9
26%
Lead generation revenue
595
960
18.8
61%
Display advertising revenue
267
290
5.7
9%
Mortgage Marketplace
119
100
2.0
-16%
Valuation and Analytics
21
29
0.6
38%
C2C Rental
1
-
-
-
End-to-End Offerings
-
99
1.9
-
____________________
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 June 30,
2022 (RUB 51.1580 to USD 1.00)
Core Business segment revenue
Core Business revenue reached RUB 3,403 million for the six
months ended June 30, 2022, increasing by 33% compared to RUB 2,563
million for the six months ended June 30, 2021. Similar to the
second quarter, Core Business revenue growth was driven by a
positive performance across all key revenue streams.
Core Business revenue in Moscow and the Moscow region for the
six months ended June 30, 2022 was RUB 2,516 million, an increase
of RUB 620 million, or 33%, compared to RUB 1,896 million for the
same period of the prior year. Core Business revenue in other
Russian regions for the six months ended June 30, 2022 was RUB 887
million, an increase of RUB 220 million, or 33%, as compared to RUB
667 million for the same period of the prior year.
Listing revenue (secondary and commercial real estate
verticals)
Listing revenue increased by 26% to RUB 2,141 million for the
six months ended June 30, 2022 from RUB 1,697 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:
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
Y-o-Y growth
Listing revenue, including (RUB,
million)
1,697
2,141
26%
Moscow and Moscow Region
1,184
1,482
25%
Other Russian Regions
513
659
29%
Listings(1), including
(million)
2.14
1.78
(17%)
Moscow and Moscow Region
0.31
0.32
2%
Other Russian Regions
1.83
1.46
(20%)
Average daily revenue per listing(2)
(RUB)
4.4
6.6
52%
Moscow and Moscow Region
21.1
25.6
22%
Other Russian Regions
1.5
2.5
67%
____________________
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
The growth of the Сore Business listing revenue was primarily
driven by re-launch of paid listing services after the COVID-19
pandemic and listings services price increases.
In the six months ended June 30, 2022, we had approximately 1.78
million listings on our platform, compared to approximately 2.14
million in the six months ended June 30, 2021. The decrease in the
number of listings was predominantly driven by monetization
re-introduction and price increases. The market has yet to fully
recover following the mortgage rate increase in late
February-March.
Lead generation and display advertising revenue (primary real
estate vertical)
Lead generation revenue increased by 61% to RUB 960 million in
the six months ended June 30, 2022 from RUB 595 million in the six
months ended June 30, 2021. Display advertising revenue increased
by 9% to RUB 290 million for the six months ended June 30,
2022.
Core Business lead generation revenue growth was mainly driven
by the increase in the average revenue per lead to developers.
Increase in the average revenue per lead to developers resulted
from price increases in September 2021, December 2021, and March
2022. Since March 2022, there was increased demand from buyers
attempting to invest their savings in property and utilize
previously approved mortgages on the back of the key rate
increase.
Mortgage marketplace segment revenue
Mortgage Marketplace revenue amounted to RUB 100 million for the
six months ended June 30, 2022 compared to RUB 119 million for the
same period of the prior year, representing a decrease of RUB 19
million, or 16%, as the demand did not fully recover after the key
interest rate increase in late February.
Operating expenses
Total operating expenses decreased by 17% to RUB 3,587 million
in the six months ended June 30, 2022 from RUB 4,345 million in the
six months ended June 30, 2021, primarily driven by a decrease in
marketing and employee-related expenses.
The following table sets forth a breakdown of our operating
expenses for the periods indicated (in millions of RUB and
USD):
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
Y-o-Y growth
RUB
RUB
USD (1)
Operating expenses
4,345
3,587
70.1
-17%
Marketing expenses
1,129
1,040
20.3
-8%
Employee-related expenses, including
2,632
1,790
35.0
-32%
Wages, salaries and related taxes
1,124
1,397
27.3
24%
Share-based payment expense
1,470
353
6.9
-76%
IT expenses
229
262
5.1
14%
Depreciation and amortization
134
139
2.7
4%
Other operating expenses
221
356
7.0
61%
IPO related expenses
88
-
-
-
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 June 30,
2022 (RUB 51.1580 to USD 1.00)
Employee-related expenses
Employee-related expenses decreased by 32% to RUB 1,790 million
in the six months ended June 30, 2022 from RUB 2,632 million in the
six months ended June 30, 2021. Wages, salaries and related taxes
and other employee-related expenses were a total of RUB 1,397
million for the six months ended June 30, 2022 compared to RUB
1,124 million for the six months ended June 30, 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 41.6% for the first half of 2021 to
38.5% for the first half of 2022.
Marketing expenses
Marketing expenses decreased to RUB 1,040 million in the six
months ended June 30, 2022 from RUB 1,129 million in the six months
ended June 30, 2021. This decrease was primarily driven by reduced
spending on online advertising, especially in the second quarter of
2022 in response to increased levels of uncertainty. As the key
interest rate decrease and audience activity started recovering,
the Company increased its marketing activities.
Marketing expenses as a percentage of revenue decreased to 28.6%
in the first half of 2022 from 41.8% in the first half of 2021,
driven primarily by the increase in revenue and decrease of
marketing spendings.
IT expenses
IT expenses increased by 14% to RUB 262 million in the six
months ended June 30, 2022 from RUB 229 million in the six months
ended June 30, 2021. This increase was primarily driven by an
additional rollout of hosting on Yandex (as a backup), 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 61% to RUB 356 million in
the six months ended June 30, 2022 from RUB 221 million in the six
months ended June 30, 2021, primarily driven by the costs of
properties sold as part of our Home swap service, which totaled RUB
81 million in the first half of 2022; another factor was growth in
capital markets and consulting expenses.
Loss for the period
Loss for the six months ended June 30, 2022 was RUB 389 million
compared to a loss of RUB 1,670 million for the six months ended
June 30, 2021. The change in loss for the period was driven
primarily by the same factors as affecting our Adjusted EBITDA
described below as well as a foreign currency exchange loss of RUB
478 related to our USD denominated cash balances.
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the six months ended June 30, 2022 reached
RUB 536 million, compared to RUB 51 million for the six months
ended June 30, 2021. The increase in Adjusted EBITDA was primarily
driven by the revenue growth partially supported by decrease in
operating costs.
Adjusted EBITDA Margin increased by 13 ppt to 14.8% for the six
months ended June 30, 2022.
Core Business Adjusted EBITDA increased by 103% to RUB 906
million in the six months ended June 30, 2022 from RUB 446 million
in the six months ended June 30, 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 9.2 ppt
reaching 26.6% for the six months ended June 30, 2022.
Mortgage Marketplace Adjusted EBITDA was negative RUB 104
million in the six months ended June 30, 2022 compared to negative
RUB 229 million in the six months ended June 30, 2021. The dynamic
was primarily driven by a decrease of more than 40% in operating
expenses, outpacing the decrease in revenue (-16% Y-o-Y) in this
segment.
Second Quarter and Six Months 2022 Financial Results
Conference Call
In light of the existing uncertainty and market volatility, the
Company will not be conducting its second quarter and first six
months 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 seven 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 June 2022). 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
second quarter of 2022, the Company had 1.9 million listings
available through its platform and the monthly audience with an
average UMV of over 17 million and enjoyed 31% Y-o-Y growth in
revenues. 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 annual report on Form
20-F filed with the U.S. Securities and Exchange Commission (“SEC”)
on May 2, 2022 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)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Revenue
1,456
1,905
37.2
Operating expenses:
Marketing expenses
(524)
(349)
(6.8)
Employee-related expenses
(1,833)
(906)
(17.7)
IT expenses
(133)
(126)
(2.5)
Depreciation and amortization
(70)
(71)
(1.4)
Other operating expenses
(177)
(222)
(4.3)
Total operating expenses
(2,737)
(1,674)
(33)
Operating (loss) / profit
(1,281)
231
4.5
Finance costs
(15)
(6)
(0.1)
Finance income
4
19
0.4
Foreign currency exchange loss, net
-
(663)
(13.0)
Other income
-
12
0.2
Loss before income tax
(1,292)
(407)
(8.0)
Income tax (expense) / benefit
5
(26)
(0.5)
Loss for the period
(1,287)
(433)
(8.5)
Total comprehensive loss for the
period
(1,287)
(433)
(8.5)
Loss per share, in RUB
Basic and diluted loss per share
attributable to ordinary equity holders of the parent
(19.80)
(6.20)
(0.12)
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 June 30,
2022 (RUB 51.1580 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)
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Revenue
2,704
3,631
71.0
Operating expenses:
Marketing expenses
(1,129)
(1,040)
(20.3)
Employee-related expenses
(2,632)
(1,790)
(35.0)
IT expenses
(229)
(262)
(5.1)
Depreciation and amortization
(134)
(139)
(2.7)
Other operating expenses
(221)
(356)
(7.0)
Total operating expenses
(4,345)
(3,587)
(70)
Operating (loss) / profit
(1,641)
44
0.9
Finance costs
(31)
(10)
(0.2)
Finance income
7
31
0.6
Foreign currency exchange loss, net
(27)
(478)
(9.3)
Other income
-
21
0.4
Loss before income tax
(1,692)
(392)
(7.7)
Income tax benefit
22
3
0.1
Loss for the period
(1,670)
(389)
(7.6)
Total comprehensive loss for the
period
(1,670)
(389)
(7.6)
Loss per share, in RUB
Basic and diluted loss per share
attributable to ordinary equity holders of the parent
(26.20)
(5.57)
(0.11)
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 June 30,
2022 (RUB 51.1580 to USD 1.00)
Consolidated Statement of Financial Position (in millions of
RUB and USD)
As of
December 31, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
(audited)
(unaudited)
(unaudited)
Assets
Non-current assets
Property and equipment
49
60
1.2
Right-of-use assets
98
75
1.5
Goodwill
785
785
15.3
Intangible assets
1,197
1,133
22.1
Deferred tax assets
226
238
4.7
Other non-current assets
15
12
0.2
Total non-current assets
2,370
2,303
45.0
Current assets
Inventories
108
45
0.9
Advances paid and prepaid expenses
93
91
1.8
Trade and other receivables
408
287
5.6
Prepaid income tax
4
5
0.1
Cash and cash equivalents
2,419
2,586
50.5
Other current assets
198
108
2.1
Total current assets
3,230
3,122
61.0
Total assets
5,600
5,425
106.0
Equity and liabilities
Equity
Share capital
2
2
0.0
Share premium
7,614
7,702
150.6
Equity-settled employee benefits
reserves
110
344
6.7
Accumulated losses
(3,854)
(4,212)
(82.3)
Total equity
3,872
3,836
75.0
Liabilities
Non-current liabilities
Lease liabilities
48
28
0.5
Deferred tax liabilities
135
131
2.6
Deferred income
125
122
2.4
Total non-current liabilities
308
281
5.5
Current liabilities
Contract liabilities
425
460
9.0
Trade and other payables
619
435
8.5
Income tax payable
59
1
0.0
Other taxes payable
241
337
6.6
Lease liabilities
43
42
0.8
Deferred income
33
33
0.6
Total current liabilities
1,420
1,308
25.6
Total liabilities
1,728
1,589
31.1
Total liabilities and equity
5,600
5,425
106.0
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 June 30,
2022 (RUB 51.1580 to USD 1.00)
Consolidated Statement of Cash Flows (in millions of RUB and
USD)
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
(audited)
(audited)
(unaudited)
Cash flows from operating
activities
Loss before income tax
(1,692)
(392)
(7.7)
Adjusted for:
Depreciation and amortization
134
139
2.7
Employee share-based payment expense
1,470
353
6.9
Finance income
(7)
(31)
(0.6)
Finance costs
31
10
0.2
Foreign currency exchange loss, net
27
478
9.3
(Reversal) / Allowance for expected credit
losses
1
(11)
(0.2)
Working capital changes:
Decrease / (increase) in trade and other
receivables
(57)
125
2.4
Decrease in advances paid and prepaid
expenses
16
6
0.1
Decrease / (increase) in other assets
(62)
153
3.0
(Decrease) / increase in trade and other
payables
117
(209)
(4.1)
(Decrease) / increase in contract
liabilities and deferred income
(9)
17
0.3
Increase in other liabilities
101
95
1.9
Cash generated from operating
activities
70
733
9.9
Income tax paid
(18)
(72)
(1.4)
Interest received
5
31
0.6
Interest paid
(30)
(3)
(0.1)
Net cash generated from operating
activities
27
689
9.3
Cash flows from investing
activities
Acquisition of a subsidiary, net of cash
acquired
(1,651)
-
-
Purchase of property and equipment
(24)
(27)
(0.5)
Purchase of intangible assets
(50)
(34)
(0.7)
Net cash used in investing
activities
(1,725)
(61)
(1.2)
Cash flows from financing
activities
Proceeds from the issue of ordinary
shares
2,265
-
-
Repayment of borrowings
(186)
-
-
Payment of principal portion of lease
liabilities
(19)
(21)
(0.4)
Net cash (used in) / generated from
financing activities
2,060
(21)
(0.4)
Net increase in cash and cash
equivalents
362
607
11.9
Cash and cash equivalents at the beginning
of the period
449
2,419
47.3
Effect of exchange rate changes on cash
and cash equivalents
(1)
(450)
(8.8)
Reversal of allowance for expected credit
losses
—
10
0.2
Cash and cash equivalents at the end of
the period
810
2,586
50.5
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 June 30,
2022 (RUB 51.1580 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)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Loss for the period
(1,287)
(433)
(8.5)
Income tax expense
(5)
26
0.5
Loss before income tax
(1,292)
(407)
(8.0)
Depreciation and amortization
70
71
1.4
Finance expenses, net(2)
11
(13)
(0.3)
Foreign currency exchange loss, net
-
663
13.0
Share-based payment expenses
1,242
178
3.5
IPO-related costs
88
-
-
Income from the depositary
-
(12)
(0.2)
Adjusted EBITDA(3)
119
480
9.4
Adjusted EBITDA Margin(4)
8.2%
25.2%
25.2%
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Loss for the period
(1,670)
(389)
(7.6)
Income tax expense
(22)
(3)
(0.1)
Loss before income tax
(1,692)
(392)
(7.7)
Depreciation and amortization
134
139
2.7
Finance expenses, net(2)
24
(21)
(0.4)
Foreign currency exchange loss, net
27
478
9.3
Share-based payment expenses
1,470
353
6.9
IPO-related costs
88
-
-
Income from the depositary
-
(21)
(0.4)
Adjusted EBITDA(3)
51
536
10.5
Adjusted EBITDA Margin(4)
1.9%
14.8%
14.8%
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 June 30,
2022 (RUB 51.1580 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, IPO-related costs 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)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Adjusted EBITDA(2)
119
480
9.4
Core Business Adjusted EBITDA
313
645
12.6
Core Business Adjusted EBITDA for Moscow
and the Moscow region(3)
613
873
17.1
Core Business Adjusted EBITDA for Other
regions(4)
(300)
(228)
(4.5)
Mortgage Marketplace Adjusted EBITDA
(106)
(45)
(0.9)
Valuation and Analytics Adjusted
EBITDA
(17)
(11)
(0.2)
C2C Rental Adjusted EBITDA
(33)
-
-
End-to-End Offerings Adjusted EBITDA
(38)
(109)
(2.1)
Core Business EBITDA margin
22.8%
36.2%
36.2%
Six months ended
(unaudited)
June 30, 2021
June 30, 2022
June 30, 2022
RUB
RUB
USD(1)
Adjusted EBITDA(2)
51
536
10.5
Core Business Adjusted EBITDA
446
906
17.7
Core Business Adjusted EBITDA for Moscow
and the Moscow region(3)
1,087
1,567
30.6
Core Business Adjusted EBITDA for Other
regions(4)
(641)
(661)
(12.9)
Mortgage Marketplace Adjusted EBITDA
(229)
(104)
(2.0)
Valuation and Analytics Adjusted
EBITDA
(34)
(19)
(0.4)
C2C Rental Adjusted EBITDA
(68)
(5)
(0.1)
End-to-End Offerings Adjusted EBITDA
(64)
(242)
(4.7)
Core Business EBITDA margin
17.4%
26.6%
26.6%
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 June 30,
2022 (RUB 51.1580 to USD 1.00) 2 Starting from the first quarter of
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 and six months ended June
30, 2021 has been 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
June 30, 2022
17.3
1.86
0.35
1.51
43.7
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 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 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 previously. 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 the Company’s Form 6-Ks filed with the SEC 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 June 30,
2022 (RUB 51.1580 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
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.
1 Auction – a tool on Cian’s platform that provides customers
with an opportunity to place an auction bid to raise the ranking of
their listings in search results. 2 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 June 30, 2022 (RUB 51.1580 to USD 1.00)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220817005307/en/
Investor contacts: Daria Fadeeva ir@cian.ru
Media contacts: Olga Podoliaka po@cian.ru
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