HeadHunter Group PLC (HHR) Q2 2021 Earnings Call Transcript

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HeadHunter Group PLC (HHR)
Q2 2021 Earnings Call
Aug 16, 2021, 9:00 a.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by, and welcome to the second quarter 2021 financial results conference call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your first speaker today, Arman Arutyunian. Please go ahead, sir.

Arman Arutyunian -- Investor Relations

Hello, everyone, and welcome to HeadHunter Group's Second Quarter 2021 Earnings Call. On the call today, we have Mikhail Zhukov, our Chief Executive Officer; Grigorii Moiseev, our Chief Financial Officer; and Dmitry Sergienkov, our Chief Strategy Officer. A press release containing our second quarter 2021 results was issued earlier today and the copy may be obtained through our website at investor.hh.ru.

Before we begin, we would like to remind you that today's discussion will contain forward-looking statements. Actual results may differ materially from the results predicted or implied by such statements, and forward-looking statements made today speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For a discussion of some of the risk factors that could cause actual results to differ, please see the Risk Factors section in our annual report on Form 20-F for the year ended December 31, 2020.

During this call, we will refer to some non-IFRS financial measures. These non-IFRS financial measures are not prepared in accordance with IFRS. A reconciliation of the non-IFRS financial measures to the most directly comparable IFRS measures is provided in the earnings release we issued today and the slide presentation, each of which is available on our website at investor.hh.ru. Now I would like to turn the call over to Mikhail. Please go ahead.

Mikhail Zhukov -- Chief Executive Officer

Thanks, Arman. Hi, everyone. Thanks for joining us today. Halfway through 2021, and I'm increasingly optimistic about the strength of our business. Driven by fundamental market trends, we are currently seeing dramatic corporate activity in the recruiting market. This is evidenced by historical high number of vacancies on our platform and the record intake of new customers. As a result, our total paying customer base in the first half of 2021 exceeded 300,000.

Along with customer base expansion, we have completed migration of our users to the new pricing model for subscriptions, allowing us to improve monetization and set the ground for its future enhancement. I'm also excited about our product development in the second quarter. For example, we released to millions of our users an in-platform functionality of direct and instant communication between candidates and employers.

Chats and messengers are becoming an increasingly important way people consume various digital products. So we are focusing here on integrating recruitment in the broadly used interfaces. Another example, we launched cross-positive options for our clients to advertise their vacancies across Zarplata platform, thereby extending their candidate outreach. All these are crucial steps in order to help our clients to succeed in this challenging labor market situation.

Now let me turn it to Dmitry to walk you through the key highlights of the second quarter. Thank you.

Dmitry Sergienkov -- Chief Strategy Officer

Thank you, Mikhail, and good afternoon. Thank you for joining us on this call. As Mikhail said, we are very happy to report that our business continued to gain strong momentum and significantly accelerated in the second quarter, delivering across all strategic priorities.

Against low comparison base last year, our revenue in Q2 was up 165% year-on-year, driven by average consumption growth, accelerated intake of new small and medium businesses, monetization rollout and the full consolidation of new assets acquired.

Despite some diluting effect from Skillaz, Zarplata consolidation, we improved our profitability with adjusted EBITDA margin came above 57%. Our capex comprised just 2.3% of revenues, contributing to a strong cash flow generation over the quarter.

Turning now to our results of the customer segment. As a result of organic growth and acquisition of Zarplata, we have increased our customer base by circa 125,000 customers. And as of the first half of 2021, we already have more paying client than the entire pre-COVID 2019.

During the second quarter, almost all client categories demonstrated triple-digit revenue growth, with small and medium business segment being mostly driven by customer base expansion, both organic and inorganic, while key accounts segment also reported strong RPC growth, which are going to be explained by target monetization initiatives.

Revenue in Moscow and St. Petersburg increased by 145% year-on-year. Our revenue from other regions of Russia went up by 178% year-on-year, now regions reaching nearly 36% share in total revenue.

In terms of product dynamics, we're seeing tremendous growth in job posting categories, soaring by circa 240% year-on-year and capitalizing on unprecedently high demand for labor and labor supply.

In Small and Medium segment, the consumption growth explains circa 70% of total job posting growth, while on Key Accounts segment, consumption growth and pricing were nearly equal contributors.

CV data base access and bundled subscriptions demonstrated 133% and 95% growth year-on-year, respectively. This quarter, we completed transition of our clients to a new subscription model, and we see that circa 75% of CVDB revenue increase in Key Accounts segment, is explained by purchase of additional contracts, actually exceeding our original expectations. So overall, in terms of top line performance, it was really the best quarter in our recent history.

Having these strong historical numbers, coupled with a very robust leading indicators such as long-term subscription bookings and package vacancy purchases, we decided to significantly upgrade our official guidance on full year revenue growth basis to the range of 63%-68% year-on-year. Of course, resumes continues recovery trend, and economy, no major restrictive measures in the second half.

Now let Grigorii talk about our profitability and other financial metrics.

Grigorii Moiseev -- Chief Financial Officer

Thank you, Dmitry, and hello, everyone. Let me give you some detail on our expenses and margins first. As Dmitry just said, our adjusted EBITDA margin has increased to almost 58% in the second quarter of 2021 compared to 43.4% in the second quarter of 2020. This improvement was mostly due to the increase in our revenue.

Consolidation of Zarplata and Skillaz diluted adjusted EBITDA margin by circa 3 percentage points. Therefore, the increase in margin in our organic business segments was even steeper than on the consolidated basis.

Our operating costs and expenses increased by 93% in the second quarter of 2021. There were three key factors to this growth. First, we added expenses of Zarplata and Skillaz, which explains about one-third of the growth. Second, there was a low base effect as our expenses in the second quarter of 2020 were quite low on the back of COVID and related cost savings. And third, we increased our headcount, wages and marketing expenses in accordance to our 2021 budget.

Let me briefly discuss the key expense buckets. Our personnel expenses increased by 95% compared to the second quarter of 2020. The largest driver here was the addition of Zarplata and Skillaz personnel expenses, which explains one-third of the total growth in this bucket.

The growth was also driven by the low cost base. Our cost savings program in the second quarter of 2020 saved us about RUB60 million through reduction in bonuses. Also, our performance-based sales team bonuses increased by circa RUB65 million in the second quarter of 2021 on the back of our performance in the internal sales teams targets while in the second quarter of 2020, these performance sales -- performance-based bonuses burn quite low.

And finally, not including Zarplata and Skillaz consolidation, we increased our head count by circa 13% or 120 people over the last 12 months, primarily in customer support, development and sales teams. And we also increased wages by circa 10% in the second half of 2020 and by circa 7% in the second quarter of 2021.

As a percentage of revenue, personnel expenses, excluding share-based compensations and other items have decreased from 31.4% in the second quarter of 2020 to 23.1% in the second quarter of 2021, or by 8 percentage points, mostly due to the increase of revenue.

Moving on to our marketing expenses. They increased by 53% year-on-year. The growth was driven mostly by expansion of our marketing expense across various channels in accordance with our annual budget, while approximately one-third of the growth was due to Zarplata consolidation. And there was also a moderate loan base effect for our cost sales last year.

As a percentage of revenue, marketing has also decreased quite sizably from 15.3% in the second quarter last year to 9.2% in the second quarter of 2021 or by circa 6 percentage points. Again, mostly due to the increase in our revenue.

Our other general and administrative expenses increased by 141.6% compared to the second quarter of 2020. Key driver here again was the addition of Zarplata and Skillaz, which contributed approximately one-third of the growth in the bucket. And the other factors were, SPO-related expenses of RUB76 million in the second quarter of 2021, the low base effect of the COVID-related cost savings program in the second quarter last year, and the increase in cost of sales on the back of increase in revenues from other value-added services this year.

As a percentage of revenue, other general and administrative expenses adjusted for various nonoperational items were 9.9% in the second quarter, flat compared to 10% in the second quarter of 2020. Margins achieved in the second quarter of 2021 are explained by a significant revenue increase, while cost base being at somewhat conservative level taking into account yet unstable market environment. So we don't think these high margins are sustainable in the short term and expect them to trend down toward 50% plus later in the year.

Moving on to other key indicators. Our capex in the second quarter of 2021 was RUB88 million compared to RUB41 million in the second quarter of 2020. And this increase was mainly due to our investment in solar infrastructure on the back of the increase in user traffic.

As Dimi said, CapEx was about 2% of revenue in the second quarter. Our net working capital as of June 30, 2021 was negative RUB4.8 billion compared to negative RUB3.8 billion as of December 31, 2020. The change was primarily due to customer advances we received over the last six months.

Income tax expense in the second quarter of 2021 was RUB440 million compared to RUB75 million in the second quarter of 2020. This increase was driven by the increase in revenue and consecutive increase in the taxable profit. Our effective tax rate in the second quarter was 24.5%, relatively flat compared to 23.9% in the second quarter of 2020.

Now turning to cash generation metrics. In the second quarter of 2021, we generated RUB1.7 billion from operating activities compared to RUB1.5 billion in the second quarter of 2020. The growth was primarily driven by the increase in sales. We used RUB803 million in investment activities compared to RUB28 million used in the second quarter last year. The increase was mainly due to the consideration paid for acquisition of additional 40% ownership interest in Skillaz.

We used RUB205 million in financing activities compared to RUB572 million used in the second quarter of 2020. This decrease was mostly due to timing of bank loan repayments last year due to COVID-related period of nonworking days.

Our net debt decreased from RUB5 billion as of December 31, 2020, to RUB2.6 billion as of June 30, 2021, primarily due to the increase in cash balances from trading activities. On the back of the decrease in net debt and the increase in adjusted EBITDA, leverage decreased to 0.4 times adjusted EBITDA as of June 30, 2021 compared to 1.2 times adjusted EBITDA as of December 31, 2020. Post period end in July 2021, we settled earlier announced dividend for the year 2020 of circa RUB2 billion. Therefore, our net debt and net debt to adjusted EBITDA ratio increased in July compared to the quarter-end measures.

And finally, in July 2021, we established a new restricted Stock Units Plan to provide a more competitive long-term mitigation model to our key talent. Prior to this, our management incentive programs included the 2016 Unit Option Plan and the 2018 Unit Option Plan. Our 2016 Option Plan focused mostly on our top management level. It is now fully granted and the outstanding awards vest from May 2023.

Part of the awards issued under the legacy 2018 Option Plan will be replaced with awards under our new RSU plan. The maximum number of shares provided under the new RSU plan is 6% of the total shares issued and outstanding from time to time. The awards are expected to be granted in tranches over the period of four years until August 2025. Each individual grant will be subject to approval by our Board of Directors, upon recommendation of the management and the Compensation Committee based on certain selection criteria.

Vesting period for each tranche will be four years commencing on the grand date. The new RSU plan will be reasonably wide in its coverage and will reward, among others, our key personnel in development, product, sales and marketing teams. We believe that with the new RSU plan, we will be able to better attract, motivate and retain our key talent.

This concludes our presentation of the results of the second quarter of 2021. And we are now opening the floor to your questions. Thank you.

Questions and Answers:

Operator

Thank you. [Operator Instructions] And the first question comes from the line of Vyacheslav Degtyarev from Goldman Sachs. Please ask your question. Your line is now open.

Vyacheslav Degtyarev -- Goldman Sachs -- Analyst

Yes. Thank you very much for the presentation. A couple of questions. So firstly, can you share your thoughts on the medium-term monetization plans? Are you looking to do any new steps with regard to the monetization this year? Or it's more for the next year? And how would you qualitatively assess how much of the upside from the April price increases as well as the last August price increases were not yet reflected in the second quarter results and will be reflected in the coming quarters?

And my second question is more technical. It looks like you increased the stake in Skillaz further. Are you considering the full 100% ownership ultimately? Thank you.

Dmitry Sergienkov -- Chief Strategy Officer

Hi, Vyacheslav. Dimi here. I'll try to answer your questions. The first one on the monetization. We are very pleased with the results of the transition -- implementation of our new subscription monetization model. So this year, we've actually moved all lines to new monetization models. And yes, it actually kind of was executed quite smoothly without any churn, spike, etc. At the same time, it -- as you can already see in the results and you'll be observing this next quarters, the result and the impact on revenue was quite significant.

Looking then forward, of course, we're -- we believe that there is really a huge opportunity and a lot of -- various areas that can actually explore our monetization ideas. So every year, we plan to actually kind of move to our longer-term target. This year, we are as we migrate clients to new monetization model, we will try to get the actual realized price for the contract a bit closer to the target level. To remind you, we sell the contract for RUB6 per contact per unit. Now the realized prices are RUB40. So we'll try to get closer to RUB60, and then we'll kind of inflate further that number.

We are, at the moment, kind of technologically, we are very focused on getting the infrastructure and the tariff structure in place by end of this year to kind of make close their actual willingness to payroll clients. So we focus -- equal focusing on regional differentiation. First of all, differentiate Moscow price from other regions, because at the moment there's a lot of uniformity in that. We also pay attention to kind of depreciation of role and what profession also see that at this point of time, the tariffs are not flexible enough, and we will see a significant upside from that.

In terms of April impact, I would say the growth was quite moderate, right, because major initiatives, monetization were actually implemented before COVID. And then we also announced the new subscription model. So we didn't actually plan to make the kind of April as a major pricing event, right. Before, I would say it's quite moderate this year. Already in the second quarter, of course, you will be seeing the impact throughout the year, right? Because the kind of tariff changes, they are not affected in any particular quarter given the spread throughout the year. But I wouldn't call April somewhat one off -- one off to the end.

In terms of Skillaz, yes, it's a separate transaction from the acquisition of the regional control. And to the extent it was kind of a good gesture toward the founder, who have been writing this business very successfully over the last five years, so we gained certain liquidity. At the same time he remained significant stake in the company at 25%, and he's fully motivated and longer -- and long-term success of this business. So we're also very much interested in him being fully invested and involved. Therefore, kind of consolidation of 100% is possible. Maybe it's a kind of ultimate end game, but we're not seeing it in kind of shorter term definitely.

Vyacheslav Degtyarev -- Goldman Sachs -- Analyst

Okay. Thank you very much.

Operator

Thank you. And the next question comes from the line of Ivan Kim from Xtellus. Please ask your question. Your line is now open.

Ivan Kim -- Xtellus -- Analyst

Yes. Good afternoon. Two questions from me, please. Firstly, just on the longer-term growth. So the current high demand sets a fairly high base for next year. So I was just wondering how confident are you the company will be able to maintain this sort of 25%, 30% growth in '22?

And my second question is on profitability and the marketing spend. So the marketing spend has been fairly modest vis-a-vis revenue but not in absolute terms, vis-a-vis revenue definitely this quarter? What would you expect for the second half? And on your marketing spend, is it driven by competition? So basically, is it more you responding to the competitors or it's kind of normal, let's say, course of business? Thank you very much.

Dmitry Sergienkov -- Chief Strategy Officer

Thank, Ivan. I will answer the first one on the growth. I think it's a little bit premature now in discussing growth for next year, right? We still have two quarters. But at the same time, part of today's growth is definitely unsustainable, right, in terms of the last year comps are quite favorable. And you also have some acquisitions affecting revenue line. But at the same time, there are certain sectors that we believe are definitely sustainable. And they will be heading significant -- but next year, for example, monetization and new subscription model, we expect to have at least 2 times bigger impact on revenue next year than this year just because of the full year effect. That's first thing.

And then there will be new organization initiatives. There will be a significant customer growth we expect. And therefore, growth rates that you mentioned -- it's not our guidance at the moment, had no plan to do it now, but it looks quite sensible, yes, we believe that we can sustain this level of growth next year as we see the situation at the moment unfolding.

And I'll hand it to Grigorii to comment on marketing spend.

Grigorii Moiseev -- Chief Financial Officer

Yes. Thanks, Dimi. Hi, Ivan, this is Grigorii. So profitability, as I said, we kind of expect it to trend down a little in the second half of the year. Of course, first unknown is what's the revenue trajectory would be, whether the Q2 high demand and high number of job postings will continue into Q3 or into Q4 as well, right? Secondly, on the cost side, we kind of expect to increase investment because we were on somewhat conservative side in the first half of the year, just not being sure of what the full year revenue performance would be. We now see -- we are now heading into autumn, right, which will probably be quite heavy in terms of marketing plan, for instance, as much as typically busy season for recruitment.

Also, Zarplata and Skillaz, which we consolidate now fully in our P&L, they do have the dilutive impact. We estimate it to be about 3% on full year results as well, just as it was in the Q2. So basically, given all those factors, we think in kind of conservative revenue scenario, we're looking at about 50% adjusted EBITDA margin for the full year, maybe more if revenue will be performing better than conservative, of course, provided kind of no severe COVID-related lockdowns or etc., occurring in the second half of the year.

And then I think on marketing, as I said, we are looking forward to increase in the second half. Percentage-wise, you saw that it was about 9% in Q2. I think it will be kind of closer to the last year, about 13% -- maybe 12%, 13%, maybe 12% of revenue as we saw in 2020. I think we will see something like that in 2021 as well, maybe a little bit less.

As for the -- how it's driven, I wouldn't say that it's kind of entirely competition-wise. We can still see the kind of positive effect from marketing investment in both just brand awareness and performance-based. So we are kind of targeting marketing level as a percentage of revenue, for instance, as well. But in some instances, yes, we are responding to competition as well. I think in the second half of the year, it will be pretty much increase in every -- of course, kind of every market and channel, including performance-based and online brand awareness and offline as well.

Ivan Kim -- Xtellus -- Analyst

Great. Thank you very much for the detailed answers.

Operator

Thank you. And the next question comes from the line of Dmitry Vlasov from Wood. Please ask your question. Your line is now open.

Dmitry Vlasov -- WOOD -- Analyst

Hi. Thank you very much for the opportunity to ask questions and congrats on the impressive results. So my first question would be on your revenue growth. If you could break down your second quarter revenue growth, like how much of this growth came from the base effect overall, positive like labor market dynamics, improved business performance and consolidation of acquired assets? That would be my first question.

And my second question would be, maybe if you could provide some comments and some color on the July and the early August trends in terms of how you see the overall market is performing, whether this positive labor market trend is changing or even accelerating? Yes. Thank you.

Grigorii Moiseev -- Chief Financial Officer

Yes. Thanks, Dmitry. It's Grigorii here. Okay. So of course, in second quarter, second quarter revenue worth decomposing in sustainable factors and the less sustainable, of course. As per our estimate, it's around 80 percentage points are actually attributed to just the low base effect from last year. And circa 20 percentage points attributable to acquisitions we made in Zarplata and Skillaz. So effectively, you can kind of take out this 100 percentage point, and that remains 55%, 60% that could be kind of called organic, driven by underlying fundamentals.

It's still quite a nominal growth for the business on scale like ours. And that 60%, you can also kind of decompose in the three major factors that Vyacheslav already mentioned. 25% of those 60%, like one-fourth, kind of relates to monetization of existing business and -- as I said already, we see ample opportunities in the coming years here. So the shift to new monetization scheme was kind of exceptional then, but it opens up lot of opportunities for further monetization. So we have lot of monetization ideas to -- on dynamic and real pricing, that I already answered this. So this part is quite robust. And we don't expect the deceleration or kind of a diminishing impact from this.

Another factor is actually average consumption per client. So at the moment, we see that small and medium businesses consume circa 50% more than they did historically. And key accounts consume almost 100% more. So they doubled the consumption on average.

We believe this area where we actually may have some kind of temporary effect that may actually fade way, not entirely, but to the extent as we see the Russian labor market can stabilize, life get normal, people can start moving again and people in general improves. So this is the part where probably encompasses the highest kind of unsustainable fragment.

And the major 50 -- that explains half of that growth, 60% is attributable to kind of intake of new customers. And this is what we call digitalization and acceleration in digitalization. More companies get involved in online transactions on the back of this COVID circumstances.

So we believe this actually what drives up the fundamental trajectory and that accelerates our long-term growth. So last year, we also significantly improved our client onboarding experience that gave a pretty impressive immediate effect that could be hard to replicate or it's not always to come up with such a great interface improvement. That gave us around 7% of total growth, but the remaining is what actually accelerated digitalization.

In terms of trends, they remain very strong. I think that that's one of the reasons why we upgraded guidance in July and -- which is quarter-to-date. We see that the fundamental factors did not decelerate and we see still even kind of accelerating impact from our monetization, stable consumption, and the market is still pretty tough. If you look broadly, the market, I think all our competitors face very similar challenges with a kind of shortage of supply of candidates, right? And in this environment, we believe that we held up for pretty well and we acquired 2 million new CDs. So we sustained candidate delivery levels. So that most likely resulted in market share gain in terms of delivery.

So the market remains to be tough. We don't expect this situation, as we said at last call, because it's driven by demographics. We don't expect that to significantly change. So the market will be quite stretched next years, five years more. But yes, but some factors may should disappear over time.

Operator

[Operator Instructions] And the next question comes from Anna Kurbatova from Alfa Bank. Please ask your question. Your line is now open.

Anna Kurbatova -- Alfa Bank -- Analyst

Yes. Thank you very. And also congratulations with great numbers. I have two questions. First of all, could you elaborate a bit on your future approach to pricing? So you mentioned in your speech you are considering some price differentiation by region, by profession. So maybe you could tell a bit more what profession are in most demand now, where do you see like the most potential to the average check, what like categories or industries are more or less, I don't know, performing where budgets have not such opportunities, so the -- well, points of growth?

Yes. And the second question will be on your rescue plan and buyback. So you tell us that the rescue plan is equal to 6%, yes, of your number of shares and that you will be fund it by both buyback, new share issue and allotment. So could you provide more information, how much of rescue plan will be backed by buyback? And a bit more if it's possible, on the buyback technics -- buyback program techniques. So do I understand correctly that you will be like from time to time, buying your shares from the market during the next 12 months period? Thank you.

Dmitry Sergienkov -- Chief Strategy Officer

Thanks, Anna. It's Dmitry again. On the pricing, well, actually, there are various angles how you can differentiate. And we believe that we should end up having a fully dynamic pricing that is not kind of bound by certain logic, but it just responds to the actual labor supply balance in the market. Because some professions, they may actually look quite kind of knowledge intensity and attractive, but there's oversupply of candidates in certain vertical, right? And so the price and our pricing should reflect the actual station, not only the kind of potential salary.

What we see as the kind of biggest opportunity, I think, for us, it's, of course, to differentiate the kind of low-skilled labor and blue collar. And this is the area where we even actually may foresee certain price reduction, just to win this market, but it's really huge and growing fast. And on the other hand, we have kind of high end of the market, white collar professionals, where at the moment, our pricing I think is not anyhow tied to actual value and the importance of such professions for businesses.

So I think that angle would be probably important. Also IT professionals, we see the highest and growing demand. That's another area, because at the moment, whether it's courier or engineer, you kind of, for most products, you're just paying the same price and I think that's not really fair.

In terms of the impact, we're -- at the moment, we are entirely kind of reengineering our role catalog in the company. And that's actually entrenched quite deeply into our service. So by end of this year, we should have a fully kind of brand-new professional catalog, which will be like kind of ground for this differentiation. And starting from Q1 next year, we will start and launch experiments. We'll be kind of finding this -- the differentiation points. And as we see the opportunity we can get it -- implement tariffs. That's the first question. And second, I think we well, I'll just give it to Grigorii. Grigorii?

Grigorii Moiseev -- Chief Financial Officer

Yes. Thanks, Dimi. Hi, Anna. So I just wanted to reiterate again that this new RSU plan sales of 6% is actually quite deferred in time, right? We were going to grant these awards not kind of immediately, but over the period of when this program remains valid, it's four years. So it's expiring in August 2025. And we expect these awards to be granted over this period. Specifically, I think in this year, we would grant about 10% or 15% of this total program in the remaining -- in the next three years.

As for the buyback, yes, the primary purpose of the program is to fund these share-based incentives without diluting existing shareholders. At this point, I'm kind of not ready to give you any indication or specific on when and what volumes we are going to buy back. As you saw, the program is kind of a framework. It assumes the maximum 10% of equity to be bought back. That's the kind of statutory limitation. Well, it's for 12 months. And the buyback price should not exceed the average -- five-day average by more than 5%. So we will kind of occasional do the purchases from the market, as you said, and we will inform accordingly as soon as we decide on any specific kind of buyback tranche.

Just as an indication, right, we offer the buyback size, maybe it's useful, we estimate that in next year we will issue about -- we will have to issue about 40 -- sorry, 400,000 shares under our 2016 Option Plan and the new RSU plan. And all the shares would probably be purchased from the market maybe in some part his year and next year.

Anna Kurbatova -- Alfa Bank -- Analyst

Thank you very much. Very clear. Thanks.

Operator

Thank you. There are no further questions. Please continue.

Arman Arutyunian -- Investor Relations

Thanks a lot for joining the call. Bye-bye.

Mikhail Zhukov -- Chief Executive Officer

Thank you. Bye-bye.

Arman Arutyunian -- Investor Relations

Thanks. Bye.

Operator

[Operator Closing Remarks]

Duration: 42 minutes

Call participants:

Arman Arutyunian -- Investor Relations

Mikhail Zhukov -- Chief Executive Officer

Dmitry Sergienkov -- Chief Strategy Officer

Grigorii Moiseev -- Chief Financial Officer

Vyacheslav Degtyarev -- Goldman Sachs -- Analyst

Ivan Kim -- Xtellus -- Analyst

Dmitry Vlasov -- WOOD -- Analyst

Anna Kurbatova -- Alfa Bank -- Analyst

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