Cian PLC Announces Third Quarter and Nine Months 2022 Financial Results
Cian PLC (NYSE: CIAN) reported strong financial results for Q3 2022, with revenue increasing 44% Y-o-Y to RUB 2,241 million ($39.0 million) and profit of RUB 380 million ($6.6 million). Adjusted EBITDA surged 264% Y-o-Y to RUB 549 million ($9.6 million), with margins up 15 ppt to 24.5%. For the nine-month period, total revenue rose 38% Y-o-Y to RUB 5,872 million ($102.3 million) but recorded a slight loss of RUB 9 million ($0.2 million) due to currency fluctuations. Cian's Core Business showed robust growth, driven by listing and lead generation revenue, despite challenges in the mortgage segment.
- Revenue grew by 44% Y-o-Y to RUB 2,241 million in Q3 2022.
- Adjusted EBITDA increased by 264% Y-o-Y to RUB 549 million.
- Core Business revenue up 46% Y-o-Y to RUB 2,151 million for Q3.
- Loss of RUB 9 million for nine months ended September 30, 2022, due to foreign currency exchange losses.
- Mortgage Marketplace revenue decreased by 26% Y-o-Y in Q3.
LARNACA,
Third Quarter 2022 Key Financial and Operational Highlights1
-
Revenue increased by
44% Y-o-Y toRUB 2,241 million ( ).$39.0 million -
Profit for the period amounted to
RUB 380 million ( ).$6.6 million -
Adjusted EBITDA2 increased by
264% Y-o-Y and reachedRUB 549 million ( ).$9.6 million -
Adjusted EBITDA Margin2 increased by 15 ppt Y-o-Y to
24.5% . -
Core Business revenue increased by
46% Y-o-Y toRUB 2,151 million ( ).$37.5 million
Nine Months 2022 Key Financial and Operational Highlights1
-
Revenue increased by
38% Y-o-Y toRUB 5,872 million ( ).$102.3 million -
Loss for the period amounted to
RUB 9 million ( ) driven by foreign currency exchange loss described in the corresponding section below.$0.2 million -
Adjusted EBITDA2 increased by
437% Y-o-Y and reachedRUB 1,085 million ( ).$18.9 million -
Adjusted EBITDA Margin2 increased by 14 ppt and amounted to
18.5% . -
Core Business revenue increased by
38% Y-o-Y toRUB 5,554 million ( ).$96.7 million
The Core Business revenue grew as the result of a considerable increase in our listing and lead generation revenue from
During 2022 to date, the Company has been generating significant free cash flow and currently accumulated considerable amount of cash on its balance sheet. In case our performance continues to remain strong, we will be considering our options with respect to deployment of this cash, including potential distribution of funds among our shareholders. Nevertheless, the Company’s current corporate structure, together with the current restrictions imposed both by international and Russian law, would create certain difficulties in effecting any such distribution. In the event that such a distribution is planned, we will consider potential solutions and keep all our stakeholders informed on our progress in due course.”
Third Quarter and Nine Months 2022 Results
Factors affecting year-over-year trends and comparisons
We believe that trends in the real estate market in the nine months ended
Third Quarter 2022 Results
Revenue
Revenue for the three months ended
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) |
|||
|
|
|
|
Y-o-Y growth |
|
RUB |
RUB |
USD (1) |
|
Total Revenue |
1,557 |
2,241 |
39.0 |
|
Core Business |
1,470 |
2,151 |
37.5 |
|
|
72 |
53 |
0.9 |
( |
Valuation and Analytics |
7 |
10 |
0.2 |
|
C2C Rental |
1 |
- |
- |
( |
End-to-End Offerings |
7 |
27 |
0.5 |
|
____________________
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
Core Business segment revenue
Core Business revenue reached
Mortgage marketplace segment revenue
Operating expenses
Total operating expenses slightly increased by
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) |
|||
|
|
|
|
Y-o-Y growth |
|
RUB |
RUB |
USD (1) |
|
Operating expenses |
1,842 |
1,897 |
33.0 |
|
Marketing expenses |
593 |
568 |
9.9 |
- |
Employee-related expenses |
916 |
911 |
15.9 |
- |
IT expenses |
144 |
148 |
2.6 |
|
Depreciation and amortization |
72 |
65 |
1.1 |
- |
Other operating expenses |
117 |
205 |
3.6 |
|
Profit for the period
Profit for the three months ended
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the three months ended
Adjusted EBITDA Margin increased by 15 ppt to
Nine Months 2022 Results
Revenue
Revenue for the nine months ended
The following table sets forth a breakdown of our revenue by segment and type for the periods indicated (in millions of RUB and USD):
|
Nine months ended (unaudited) |
|||
|
|
|
|
Y-o-Y growth |
|
RUB |
RUB |
USD (1) |
|
Total Revenue |
4,261 |
5,872 |
102.3 |
|
Core Business |
4,033 |
5,554 |
96.7 |
|
|
191 |
153 |
2.7 |
( |
Valuation and Analytics |
28 |
39 |
0.7 |
|
C2C Rental |
2 |
- |
- |
( |
End-to-End Offerings |
7 |
126 |
2.2 |
|
___________________
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
Core Business segment revenue
Core Business revenue reached
Mortgage marketplace segment revenue
Operating expenses
Total operating expenses decreased by
The following table sets forth a breakdown of our operating expenses for the periods indicated (in millions of RUB and USD):
|
Nine months ended (unaudited) |
|||
|
|
|
|
Y-o-Y growth |
|
RUB |
RUB |
USD (1) |
|
Operating expenses |
6,187 |
5,484 |
95.5 |
- |
Marketing expenses |
1,722 |
1,608 |
28.0 |
- |
Employee-related expenses, including |
3,548 |
2,701 |
47.0 |
- |
IT expenses |
373 |
410 |
7.1 |
|
Depreciation and amortization |
206 |
204 |
3.6 |
- |
Other operating expenses |
338 |
561 |
9.8 |
|
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
Loss for the period
Loss for the nine months ended
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA for the nine months ended
Adjusted EBITDA Margin increased by 14 ppt to
Third Quarter and Nine 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 nine 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
Source:
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
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) |
|||||
|
|
|
||||
|
RUB |
RUB |
USD(1) |
|||
|
|
|
|
|
|
|
Revenue |
|
1,557 |
2,241 |
39.0 |
||
|
|
|||||
Operating expenses: |
|
|||||
Marketing expenses |
|
(593) |
(568) |
(9.9) |
||
Employee-related expenses |
|
(916) |
(911) |
(15.9) |
||
IT expenses |
|
(144) |
(148) |
(2.6) |
||
Depreciation and amortization |
|
(72) |
(65) |
(1.1) |
||
Other operating expenses |
|
(117) |
(205) |
(3.6) |
||
Total operating expenses |
|
(1,842) |
(1,897) |
(33) |
||
|
|
|||||
Operating (loss) / profit |
|
(285) |
344 |
6.0 |
||
Finance costs |
|
(15) |
(7) |
(0.1) |
||
Finance income |
|
5 |
35 |
0.6 |
||
Foreign currency exchange gain / (loss), net |
|
(1) |
127 |
2.2 |
||
Other income |
|
- |
12 |
0.2 |
||
Profit / (loss) before income tax |
|
(296) |
511 |
8.9 |
||
Income tax (expense) |
|
(3) |
(131) |
(2.3) |
||
Profit / (loss) for the period |
|
(299) |
380 |
6.6 |
||
Total comprehensive income / (loss) for the period |
|
(299) |
380 |
6.6 |
||
|
|
|||||
Profit / (loss) per share, in RUB |
|
|||||
Basic profit / (loss) per share attributable to ordinary equity holders of the parent |
|
(4.60) |
5.43 |
0.09 |
||
Diluted profit / (loss) per share attributable to ordinary equity holders of the parent |
|
(4.60) |
|
5.32 |
|
0.09 |
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
Consolidated Statement of Profit or Loss and Other Comprehensive Income (in millions of RUB and USD, except share and per share amounts)
|
Nine months ended (unaudited) |
|||||
|
|
|
||||
|
RUB |
RUB |
USD(1) |
|||
|
|
|
|
|
|
|
Revenue |
|
4,261 |
5,872 |
102.3 |
||
|
|
|||||
Operating expenses: |
|
|||||
Marketing expenses |
|
(1,722) |
(1,608) |
(28.0) |
||
Employee-related expenses |
|
(3,548) |
(2,701) |
(47.0) |
||
IT expenses |
|
(373) |
(410) |
(7.1) |
||
Depreciation and amortization |
|
(206) |
(204) |
(3.6) |
||
Other operating expenses |
|
(338) |
(561) |
(9.8) |
||
Total operating expenses |
|
(6,187) |
(5,484) |
(96) |
||
|
|
|||||
Operating (loss) / profit |
|
(1,926) |
388 |
6.8 |
||
Finance costs |
|
(46) |
(17) |
(0.3) |
||
Finance income |
|
12 |
66 |
1.1 |
||
Foreign currency exchange loss, net |
|
(28) |
(351) |
(6.1) |
||
Other income |
|
— |
33 |
0.6 |
||
Profit / (Loss) before income tax |
|
(1,988) |
119 |
2.1 |
||
Income tax benefit / (expense) |
|
19 |
(128) |
(2.2) |
||
Loss for the period |
|
(1,969) |
(9) |
(0.2) |
||
Total comprehensive loss for the period |
|
(1,969) |
(9) |
(0.2) |
||
|
|
|||||
Loss per share, in RUB |
|
|||||
Basic loss per share attributable to ordinary equity holders of the parent |
|
(30.69) |
(0.13) |
(0.00) |
||
Diluted loss per share attributable to ordinary equity holders of the parent |
|
(30.69) |
|
(0.13) |
|
(0.00) |
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
Consolidated Statement of Financial Position (in millions of RUB and USD)
|
|
As of |
||||
|
|
|
|
|
||
RUB |
RUB |
USD(1) |
||||
|
|
(audited) |
|
(unaudited) |
|
(unaudited) |
Assets |
|
|
|
|
|
|
Non-current assets |
|
|||||
Property and equipment |
|
49 |
65 |
1.1 |
||
Right-of-use assets |
|
98 |
62 |
1.1 |
||
|
|
785 |
785 |
13.7 |
||
Intangible assets |
|
1,197 |
1,093 |
19.0 |
||
Deferred tax assets |
|
226 |
172 |
3.0 |
||
Other non-current assets |
|
15 |
10 |
0.2 |
||
Total non-current assets |
|
2,370 |
2,187 |
38.1 |
||
|
|
|||||
Current assets |
|
|||||
Inventories |
|
108 |
27 |
0.5 |
||
Advances paid and prepaid expenses |
|
93 |
79 |
1.4 |
||
Trade and other receivables |
|
408 |
414 |
7.2 |
||
Prepaid income tax |
|
4 |
1 |
0.0 |
||
Cash and cash equivalents |
|
2,419 |
3,299 |
57.5 |
||
Other current assets |
|
198 |
139 |
2.4 |
||
Total current assets |
|
3,230 |
3,959 |
69.0 |
||
Total assets |
|
5,600 |
6,146 |
107.0 |
||
|
|
|||||
Equity and liabilities |
|
|||||
Equity |
|
|||||
Share capital |
|
2 |
2 |
0.0 |
||
Share premium |
|
7,614 |
7,702 |
134.2 |
||
Equity-settled employee benefits reserves |
|
110 |
484 |
8.4 |
||
Accumulated loss |
|
(3,854) |
(3,832) |
(66.7) |
||
Total equity |
|
3,872 |
4,356 |
75.9 |
||
|
|
|||||
Liabilities |
|
|||||
Non-current liabilities |
|
|||||
Lease liabilities |
|
48 |
20 |
0.3 |
||
Deferred tax liabilities |
|
135 |
130 |
2.3 |
||
Deferred income |
|
125 |
115 |
2.0 |
||
Total non-current liabilities |
|
308 |
265 |
4.6 |
||
|
|
|||||
Current liabilities |
|
|||||
Contract liabilities |
|
425 |
537 |
9.4 |
||
Trade and other payables |
|
619 |
502 |
8.7 |
||
Income tax payable |
|
59 |
60 |
1.0 |
||
Other taxes payable |
|
241 |
357 |
6.2 |
||
Lease liabilities |
|
43 |
36 |
0.6 |
||
Deferred income |
|
33 |
33 |
0.6 |
||
Total current liabilities |
|
1,420 |
1,525 |
26.6 |
||
Total liabilities |
|
1,728 |
|
1,790 |
31.2 |
|
Total equity and liabilities |
|
5,600 |
|
6,146 |
107.0 |
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
Consolidated Statement of Cash Flows (in millions of RUB and USD)
|
Nine months ended (unaudited) |
||||
|
|
|
|
||
|
RUB |
RUB |
USD(1) |
||
|
(audited) |
|
(audited) |
|
(unaudited) |
Cash flows from operating activities |
|
|
|
|
|
Profit / (loss) before income tax |
(1,988) |
119 |
2.1 |
||
Adjusted for: |
|||||
Depreciation and amortization |
206 |
204 |
3.6 |
||
Employee share-based payment expense |
1,785 |
493 |
8.6 |
||
Finance income |
(12) |
(66) |
(1.1) |
||
Finance costs |
46 |
17 |
0.3 |
||
Foreign currency exchange loss, net |
28 |
351 |
6.1 |
||
(Reversal) / Allowance for expected credit losses |
3 |
(16) |
(0.3) |
||
Other non-cash items |
2 |
|
(2) |
|
(0.0) |
Working capital changes: |
|||||
Decrease / (increase) in trade and other receivables |
(97) |
1 |
0.0 |
||
Decrease in advances paid and prepaid expenses |
6 |
20 |
0.3 |
||
Decrease / (increase) in other assets |
(57) |
140 |
2.4 |
||
(Decrease) / increase in trade and other payables |
190 |
(141) |
(2.5) |
||
Increase in contract liabilities and deferred income |
28 |
81 |
1.4 |
||
Increase in other liabilities |
111 |
116 |
2.0 |
||
Cash generated from operating activities |
251 |
1,317 |
22.9 |
||
Income tax paid |
(20) |
(75) |
(1.3) |
||
Interest received |
9 |
65 |
1.1 |
||
Interest paid |
(45) |
(5) |
(0.1) |
||
Net cash generated from operating activities |
195 |
1,302 |
22.7 |
||
|
|||||
Cash flows from investing activities |
|||||
Acquisition of a subsidiary, net of cash acquired |
(1,651) |
- |
- |
||
Purchase of property and equipment |
(37) |
(40) |
(0.7) |
||
Purchase of intangible assets |
(57) |
|
(40) |
|
(0.7) |
Loan issued to a related party |
(6) |
|
- |
|
- |
Net cash used in investing activities |
(1,751) |
(80) |
(1.4) |
||
|
|||||
Cash flows from financing activities |
|||||
Proceeds from the issue of ordinary shares |
2,265 |
- |
- |
||
Repayment of borrowings |
(279) |
- |
- |
||
Payment of principal portion of lease liabilities |
(29) |
(32) |
(0.6) |
||
Net cash (used in) / generated from financing activities |
1,957 |
(32) |
(0.6) |
||
|
|||||
Net increase in cash and cash equivalents |
401 |
1,190 |
20.7 |
||
Cash and cash equivalents at the beginning of the period |
449 |
2,419 |
42.1 |
||
Effect of exchange rate changes on cash and cash equivalents |
(1) |
(323) |
(5.6) |
||
Reversal of allowance for expected credit losses |
- |
13 |
0.2 |
||
Cash and cash equivalents at the end of the period |
849 |
3,299 |
57.5 |
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
Non-IFRS Financial Measures and Supplemental Financial Information
Use of Non-IFRS Financial Measures
We use Adjusted EBITDA and Adjusted EBITDA Margin as non-IFRS financial measure in assessing our operating performance and in our financial communications.
Adjusted EBITDA and 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 and 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) |
||||
|
|
|
|
||
|
RUB |
RUB |
USD(1) |
||
Profit / (loss) for the period |
(299) |
380 |
6.6 |
||
Income tax expense |
3 |
131 |
2.3 |
||
Profit / (loss) before income tax |
(296) |
511 |
8.9 |
||
Depreciation and amortization |
72 |
65 |
1.1 |
||
Finance (income) / expenses, net(2) |
10 |
(28) |
(0.5) |
||
Foreign currency exchange (gain) / loss, net |
1 |
(127) |
(2.2) |
||
Share-based payment expenses |
315 |
140 |
2.4 |
||
IPO-related costs |
49 |
|
- |
|
- |
Income from the depositary |
- |
(12) |
(0.2) |
||
Adjusted EBITDA(3) |
(151) |
549 |
9.6 |
||
Adjusted EBITDA Margin(4) |
|
|
|
|
Nine months ended (unaudited) |
||||
|
|
|
|
||
|
RUB |
RUB |
USD(1) |
||
Loss for the period |
(1,969) |
(9) |
(0.2) |
||
Income tax expense / (benefit) |
(19) |
128 |
2.2 |
||
Profit / (loss) before income tax |
(1,988) |
119 |
2.1 |
||
Depreciation and amortization |
206 |
204 |
3.6 |
||
Finance (income) / expenses, net(2) |
34 |
(49) |
(0.9) |
||
Foreign currency exchange loss, net |
28 |
351 |
6.1 |
||
Share-based payment expenses |
1,785 |
493 |
8.6 |
||
IPO-related costs |
137 |
|
- |
|
- |
Income from the depositary |
- |
(33) |
(0.6) |
||
Adjusted EBITDA(3) |
202 |
1,085 |
18.9 |
||
Adjusted EBITDA Margin(4) |
|
|
|
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
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
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
2 Adjusted EBITDA and 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221117005725/en/
Investor contacts:
ir@cian.ru
Media contacts:
Olga Podoliaka
po@cian.ru
Source:
FAQ
What were Cian's Q3 2022 financial results?
How did Cian perform in the nine-month period ending September 30, 2022?
What factors contributed to Cian's revenue growth in Q3 2022?