HeadHunter Group PLC

Hello everyone and welcome to Headhunter Group third quarter 2021 earnings call. Joining me today to discuss our results are Mikhail Zhukov, our chief executive officer, Dmitry Sergiyenko, our deputy chief executive officer, and Gregory Moiseev, our chief financial officer. Before we begin, we would like you to remind 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 may today speak only to our expectations as of today. We undertake no obligation to publicly update or revise these statements. For discussion of some of the risk factors that could cause actual results to differ, please see the risk factors section in our most recent annual report on Form 20F filed with the SEC. During this call, we'll be referring 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 released we issued today and the slide presentation, each of which is available on our website at investor.hh.ru. Now, I'd like to turn the call over to Mikhail.

Thank you, Aron. Good afternoon, everyone. Thanks for joining us today. This was an exceptionally solid quarter for our product and business development. Dmitry and Grigory will walk this through in detail later on, but we have yet again managed to double our revenue base compared to 2020 and hit all major business KPIs. As our user base strikes new historical records, it's essential to stay laser focused on product innovation and adaptation of our platform to distinct customer segments. One of our key product priorities continues to be seamless and enjoyable experience for non-recruitment professionals from SMAs. This customer category has been the key driver of our business growth and following candidate migration to mobile devices, we are now observing similar trends in that area. That is why we decided to come up with a fully reworked employee mobile application built on predictive interfaces. It's too early to draw any strong conclusions, but at the moment we see that the key conversions to user target actions in the new app have improved by 10-20%, thereby delivering high recruitment efficiency and business results for our clients. On the job seeker side, we launched wide experiments with employee review functionality integrated with our strategic partner DreamJob and that showed very encouraging engagement from both candidates and employers. Even though it's in experimental phase, yet circa 15% of our vacancies already have corporate reviews and we plan to scale functionality across the entire customer base. in the next few quarters. On the investment side, we have finally made the deal with Udo and now we're institutionally ready to move along our joint strategy in a self-employed market where we continue to see major growth opportunities for us. Now, I'll turn it to Dima to walk you through the key highlights of the third quarter. Thank you.

Thank you, Michelin. Good afternoon. Thank you for joining us on this call. This quarter our revenue was 4.7 billion rubles, and we managed to sustain, as Misha said, a triple-digit revenue growth despite a much higher comparison base than in the second quarter. Market conditions remain very strong. We have significantly expanded our business across the key strategic areas, including acquisition of small and medium businesses and monetization of key accounts. Despite a significant increase in marketing spend, our other cost items are significantly behind the top-line expansion, leading to elevated profitability. In Q3, our adjusted EBITDA margin came at 60.4%. This year, we follow conservative CapEx policy, resulting in strong cash generation for shareholders. Our CapEx in Q3 as a percentage of revenue came at just circa 1%. In terms of performance by operating segments, in small and medium accounts, revenue increased by 106% year-on-year, driven by both increase in number of paying customers and RPC growths. Acquisition of new clients explained circa 56 percentage points of revenue growth in small and medium segment. Our total customer base reached 450,000 clients and this quarter already exceeding full year 2020. In key account segment, average consumption growth and monetization initiatives were the key drivers of our strong performance. Notably, average check in this segment increased by 71% year-on-year and that is largely explained by the humanization model for subscriptions gaining pace across the customer base. Geographically, revenue from Moscow and St. Petersburg increased by 98% year-on-year, while revenue from other regions of Russia went up by 110%, which is totally in line with our expansive strategy in Russian regions. Product dynamics this quarter is somewhat similar to what we've seen in the second quarter. Job postings remain the fastest-growing area on the back of increased consumption in small and medium and key accounts. In this competitive environment, clients utilize advertising tools more intensely, leading to ever-growing consumption per client. As a result, the total number of vacancies on the platform reached a historical record of 1.1 million, of which over 1 million are paid vacancies. CV database access and bundle subscriptions demonstrated 94% and 89% growth year-on-year, respectively. As you can see, the growth in subscriptions is kind of converging with listing products thanks to monetization enhancement of the former. Apart from our core products, we are very satisfied with the solid dynamics of our value-added services, including recruitment automation, branding products, our performance-based solutions, ClickMe, and Virtual Recruiter. Skill has demonstrated yet another strong quarter of customer base expansion, with revenue came close to 300 million rubles, representing 200% growth year-on-year and reaching GB down-breaking level first time in company history. This group of value-added services generated over half billion revenues in Q3, yielding growth of 136%. This just underscores market openness for innovative HR tech solutions in today's challenging environment. Now, returning to our full-year 2021 outlook. This year, as you understand, is particularly difficult to make precise projections. From the one hand, our business performance is exceptionally strong and market backdrop is very robust. But from the other hand, the pandemic stats in Russia is far from being stable yet. Taking those factors into consideration, we've decided to upgrade our full year 2021 outlook to 81-84% revenue growth range, indicating over 15 billion revenues for Headhunter Group in total. Now here's Gregory to talk about our profitability and cash flow metrics.

Yeah, thanks, Dima, and good afternoon, everyone. Let me give you some detail first on our expenses and margins. As Dima said, in the third quarter of 2021, the adjusted EBITDA margin exceeded a milestone of 60%. Consolidation of Zarplata and Scewas diluted margin by circa 4 percentage points. So therefore, our organic segments margin was even higher in the ballpark of 64%. which is a significant improvement compared to 56.6% in the same segments in the third quarter of 2020, which was explained mostly by the increase in our revenue. At the same time, with autumn being the busy season in recruiting, the third quarter is usually the highest quarter of any year in terms of revenue. and consequently has the lowest expenses as percentage of revenue and the highest margin. Therefore, margin in Q3 is somewhat elevated and we expected to trend down in Q4. Historically, over the last two years, margin in the fourth quarter was four to 10 percentage points lower compared to a third quarter. Our total operating expenses excluding depreciation and amortization were circa 2 billion rubles in the third quarter of 2021, which was the increase of 69.5% compared to the third quarter of 2020. Adjusted for equity settlement awards, SPO and M&A related costs, operating expenses were around 1.9 billion, which was an 85% increase compared to the third quarter of 2020. And let me briefly discuss the growth drivers in the key expense buckets. First of all, personnel expenses adjusted for equity settled awards and SPO-related costs increased by 61% year-on-year. About one-third of this growth is explained by consolidation of Zarplata and Scyllas. The other factors were the increase in our headcount by circa 15% or 126 people over the last 12 months. an increase in our sales team bonuses on the back of exceeding revenue targets and wages inflation. As a percentage of revenue, personnel expenses, excluding equity settled awards and SPO-related costs, have decreased to 19.3% in the Q3 of 2021 from 24.3% in the third quarter of 2020, improving margin by five percentage points. We think that in the fourth quarter we will sustain this operating leverage and personnel expenses will be the key contributor to our margin expansion in the full year 2021. Speaking of personnel expenses, our equity settled awards increased to 136 million rubles in the third quarter of 2021 compared to 56 million for the third quarter last year or by circa 80 million This was mostly due to a new 2021 RSU plan we established in July, under which we granted approximately 250,000 units of circa 8% of the total program capacity to approximately 100 of our employees. Moving on to marketing expenses, they increased significantly by 140% year-on-year, outpacing revenue growth. The increase in marketing was mostly due to our decision to increase spending on both performance and brand awareness marketing in 2021 on the back of the increased demand for candidates. In addition, approximately one-third of this growth was due to Zarplato consolidation. As a percentage of revenue, marketing increased to 12% in the third quarter of 2021 compared to 10% in the third quarter of 2020. Going forward for the full year 2021, we think that the operating leverage potential in this bucket will be offset by our decision to increase spending. Other general and administrative expenses adjusted for SPO and M&A related costs increased by 90% compared to the third quarter last year. The key drivers of this growth were the addition of Zarplata and Skillas, which contributed almost half of the growth in the bucket, as well as an increase in subcontractor costs in our Russia segment due to the increase in revenue from other value-added services and the increase in professional services. As a percentage of revenue, other general and administrative expenses adjusted for SPO and M&A related costs were 8.4% relatively flat compared to 9% in the third quarter of 2020. In the full year 2021 results, we expect this expense bucket to remain relatively flat as percentage of revenue compared to last year. Now moving on to other key indicators, our capex in the third quarter of 2021 has decreased to $49 million compared to $70 million in the third quarter last year as we completed our Moscow office renovation project last year. On the back of the increase in revenue, as Jim already said, capex decreased to circa 1% of revenue in the third quarter this year compared to around 3% in the third quarter of 2020. The net working capital as of the end of Q3 was negative 5.1 billion rubles compared to negative 3.8 billion as of the end of 2020, and the change was primarily due to customer advances we received. Income tax expense in the third quarter of 2021 was 548 million compared to 264 million in the third quarter of 2020. The increase was driven by the increase in revenues and consecutive increase in the taxable profit. The effective tax rate in the Q3 was 23.7% compared to the 31.1% in the third quarter last year. This decrease was mainly attributable to non-deductible SPO-related expense last year, not occurring in this third quarter. Now turning to cash generation metrics in the third quarter of 2021, we generated significant 2.5 billion rubles from upgrading activities compared to 902 million in the third quarter last year, primarily driven by the increase in sales, which generated 16 million rubles from investing activities compared to 50 million used in the third quarter last year, mainly on the back of the increase in interest income on cash deposits. In financing activities, we used 2.4 billion rubles in the third quarter 2021, mostly to pay an earlier announced dividend for the year 2020. compared to 2.1 billion we used in the third quarter last year, which was also mostly attributable to a dividend payout. Our net debt decreased from 5 billion as of the 2020 year end to 2.3 billion as of the end of Q3 2021, primarily due to the increase in cash. On the back of this increase in net debt and the increase in adjusted EBITDA, our leverage is now 0.3 times adjusted EBITDA compared to 1.2 times adjusted EBITDA as of the 2020 year end. Finally, starting from October 2021, we are making daily repurchases of our ADRs through our broker in a form on an autonomous buyback program. The program stipulates that during nine months until June 2022, our broker should purchase ADRs for approximately $27 million in more or less equal daily installments. Accordingly, as of November 8, 2021, the most recent date of the broker's report obtainable while we prepared this release, we have repurchased 52,000 ADRs for circa $3 million. This concludes our presentation of the results of the third quarter of 2021. And we are now opening the floor to your questions. Thank you.

Thank you. We will now begin the question and answer session. And as a reminder, for those who want to ask a question, just press star and one on your telephone keypad and wait for your name to be announced. Once again, star and one if you wish to ask a question. Thank you. We have questions that came through. The first question comes from the line of from Goldman Sachs. Your line is now open. Please go ahead.

Yes, thank you very much for the call. A couple of questions. So firstly, how do you directionally think over 2022 budgeting? Obviously, I know it's probably too early, but what are the key moving factors to keep in mind over the growth and margins for the next year? obviously the base is quite high but what are the key drivers that will be having a lasting effect in the medium term and maybe how would you split them for the next year between volumes and pricing and my second question would be with regards to the mobile product for employers can you elaborate what are the user cases there how popular is that how differentiated is that versus the competition and maybe broadly new other product initiatives that are in the pipeline. Thank you.

I can quickly answer the first part of the first question on the budgeting. and how we think about next year. Obviously, you're not going to be unduly surprised that at this point of time, it's quite hard to give precise or official guidance for next year. There are definitely certain moving parts, mostly with regard to the customer base growth next year. That would be a function of overall market and labor market situation development I think we're having pretty, at this point of time, if you look into the 2022, we have quite an optimistic view on the health mix between monetization and the customer base expansion. On monetization, it's more visible already and predictable because certain initiatives that we already kicked in this year and we can more or less precisely calculate the impact for next year. Obviously, one of the major initiatives would be the continuous rollout of our new subscription model. As we said, this year this product has been performing exceptionally well and actually above our original expectation and the guidance we gave. And I think next year, therefore, we're also kind of upgrading our expectations. We believe that this one single monetization could define up to 7% of revenue growth next year. And on top of that, you have the other pricing initiatives. We're going to inflate prices starting from January, not April. This year, there will be some timing difference effect as well. In terms of price increase, we expect at least 10% growth in subscriptions. In bigger packages of job postings, we expect sort of 20% growth plus. Of course, all these components will go on top of those I already mentioned, the subscription model. And we actually made good progress in upgrading our back-end infrastructure and business logic for monetization this year. And next year, we're going to be putting more on the differentiation by professions, roles, regions. That should also give us incremental share growth and also may actually help us to kind of differentiate between small and medium businesses and key accounts. So on monetization, it looks very robust next year. on a customer base, I think it's again, it's a bit probably premature to guide at the moment. It looks quite strong, right? But again, this situation is evolving quite quickly. So it will be hard. And I will defer to comment on expenses to Grisha.

Yeah. So for me, we are kind of in the middle of the budget session right now. And um as we as we discuss uh we definitely see uh uh several uh areas for growth the numerous kind of sensitive uh sensible initiatives for the 2022 and um certainly it doesn't make sense from our point of view to kind of just cut them off just for the sake of the efforts on profitability. Therefore, as Dima said, we are not prepared to give any guidance at this point on 2022 actually in both revenue growth and margins. What I can say is that the budget will definitely contain certain, uh, investment, uh, component in terms of, uh, in terms of the expenses. Um, I think, um, I think also important to kind of understand again, that the 2021 was the year of very steep, uh, revenue, uh, growth. And, um, sometimes in some areas we struggled for resources. So, um, it's probably a kind of, uh, not the best reference points as well for the future planning. Yeah, so I guess that's the comment I can give you on the margin front.

I think we can move on to the second question from Slava on our new mobile product.

I can say that Historically, we were a little bit dismissive on kind of mobile platform for employers because we saw very limited use cases. And most of our clients actually prefer to use either mobile interface wire, well, actually just wire and mobile devices, but not in any app functionality, or they just continue to use desktop. So historically, we didn't invest much in that area. And over the last few years, especially during COVID, that situation has significantly changed in our view. We saw a peak up in demand and usage, and predominantly from obviously small and medium businesses, from non-recruitment professionals. And this is how actually we designed this new app. So that's clearly designed for a very easy, simplified workflow. with the kind of call to action approach when there are a lot of predictive actions when you don't need to fill out the details and the machine using some machine learning instruments and backend trying to kind of predict the answers and kind of minimize the questions we ask. So that's clearly targeted at the SMA usage. At the same time, we try to kind of factor and incorporate the functionality that is usually very popular among the key accounts as well, like, for example, working with archive and the integrations of the ETS and, for example, communication platform that we introduced in our JobSeeker platform earlier this year. We actually did the same for employer app because it's becoming kind of core functionality. And also, we believe that our new app, especially on Android platform, is going to be much more stable. And all the metrics that we collected over the last one and a half months since the launch of the Android platform shows us that that's actually the case. And we look at the, again, it's early to draw some strong conclusions yet, right? And there are a lot of product works required for this new app. But we already see up to 20% improvement in conversions, especially in registration, in purchases, etc. And for small and medium business, we believe that should be quite helpful for all the key metrics and efficiency of our platform overall for this category.

Okay, thank you very much.

Thanks, Logan.

Thank you. And the next question comes from Ivan Kim from Excellus Capital. Your line is now open. Please go ahead.

Yes, good afternoon. I guess three questions from my side, please. Firstly, on the fourth quarter, we didn't see any impact on job postings on your platform in November. But if you can just comment. on what sort of impact lockdown had or has on your numbers so far. Secondly, on skillets, what sort of growth outlook you foresee for 22-4 skillets in particular? Ballpark, very wide ranges or directionally would be great. And related question to that is whether you consider further expansion to adjacencies And because this skill is experience shows you increase your targets aggressive market massively with one small acquisition. So just wondering, there was you would you obviously, but if you think about expansion, they are more aggressive in 22 in adjacencies. Thank you very much.

Thanks, Ryan. You know, handle these questions.

The first the first on the November lockdown, Of course, we saw deceleration in billing and bookings of that week of non-working days. Luckily, it was just a week for the majority of regions. Of course, certain regions extended the term, so we saw a certain underperformance in the shorter-term products, especially short subscriptions, small packages of job postings. In rough terms, we lost that week circa 25% percentage points of growth compared to the week before the lockdown. That is clearly a better picture that we observed last year when we were in a constant non-working mode in June and May. That just shows that the business has been adopted to a large extent and been operating in this environment for more than a year already. And especially in key accounts, we saw very little disruption. And most of our clients and big enterprises just continued operations as normal. But of course, in small, medium businesses, there was an impact. But it was not as severe as we saw in previous lockdowns. That's only... On the lockdown and I think on the fourth quarter, otherwise, so far, quarter to date, the performance is quite encouraging. But no one knows actually what to expect in the next one month and a half, right? So the risk of restrictive measures is quite high and it's not binary. It's not that it's either there are or not. It's certain regions that are taking some local decisions, so it's actually having impact on certain regions. It's quite hard to predict the exact impact in the first quarter. On the ski loss, the fourth quarter traditionally is the strongest quarter. You may expect that these large contours that they sign, they tend to be signed at the last minute when the budgets allocated to the department go low. And historically, I think two or three years in a row, the fourth quarter was the strongest. Generally, we believe that they should post circa 400 million revenues this year. But there are certain big contracts with very large enterprises that are underway that actually may kind of be a swing factor here, right? Therefore, I think at this point of time, when they acquire new customers quite intensely, they are a bit less predictable compared to headhunter. But we expect a strong quarter. And the last one, I think, is quite the right one. It's exactly in line with our thinking that in today's environment, we see a lot of opportunities in adjacent areas, and many of them could be actually tackled in a quicker and more efficient way were some smaller stage acquisitions. And we actually were quite active on the search out for this type of assets like Scylla, Streamjob, Yudu, etc. So I would say I would guide that on quite high acquisitions for the next two to three years pursuing these opportunities.

Great. Thank you very much.

Thank you. And the next question comes from the line of Luke Holbrook from Morgan Stanley. Your line is now open. Please go ahead.

Thank you for letting me on the call, and congratulations on a strong set of results. I just had a question on market share dynamics. Given your strong revenue performance this quarter, I just wondered if you could comment a bit on what you were seeing in the regions in particular. How has the PLATA changed that dynamic a bit as well, particularly around Siberia regions? Do you feel that you're gaining share at this point in time? And then I've just got a follow-up after that. Thank you.

Yeah, sure. Thanks for the question.

Well, the regional business is performing stronger in terms of growth than in the capital cities. In Moscow and St. Petersburg, it's 110% growth. And in particular, in the Zarplata region and in Siberia, it's one of the strongest areas where we have probably the biggest market share, even compared to Moscow. We recently made a survey and that actually kind of resulted in a quite astonishing fact that we deliver over 95% of all applications in Yekaterinburg, for example. like the whole market delivers just 5% if you take out the assets of Zerplata. So it's a very, very strong region. Zerplata is a slightly underperforming headhunter, and I think we always guide it this way because they are deprived of certain benefits of nationwide very effective marketing that we are enjoying. Therefore, their revenue is not growing as fast as headhunters, so we kind of grabbing share from Zerplatta but combined with Zerplatta collectively we're definitely in an ever strong position. So I think that actually kind of unlocks a lot of monetization potential for us.

Okay, thanks. And just in terms of then your marketing spend that you mentioned there, is there a certain regional or product focus or are you targeting more blue collar or white collar? Would you split it like that internally? Any color there would be useful.

Yeah, look, this is Gregory. Really, I don't think I can give you the kind of details by marketing channel or by segment, because for kind of competition reasons, we prefer not to go into so much detail, right? But what I probably can tell you is that In the second quarter of this year and in the third as well, we are strengthening marketing on both brand awareness formats, such as outdoor campaign, for instance, and performance marketing as well. As we see kind of high demand for candidates and also on the back of kind of low activity of job seekers. So we think it makes all the sense to spend more for audience acquisition to balance with demand, provide better efficiency to customers who are essentially paying extra nowadays to get the recruiting going. So we are Frankly, increasing across the board. For instance, we had a significant outdoor campaign in Moscow recently, and we saw a sizable increase in top-of-mind brand awareness by circa 8%, or I'd say 8 percentage points probably, to 66% according to our last measure. We also see traffic going up at around between 20% and 30% as we increase more in digital channels. So it's across the board and rather successful, I'd say.

Great. Thank you very much. That's very good.

Thank you. And the next question comes from the line of Dimitri Vlasov from Wood & Company. Your line is now open. Please go ahead.

Oh, yeah. Thank you very much for the opportunity to ask question. I have two, please. The first one, could you please break down the revenue growth for third quarter of 2021? Basically, what came as a result of Zalplata and Skillaz? What came from the organic growth and what came from this labor market deficit, so to speak? The other question is on the gig economy. If you could maybe comment on how big do you see the total addressable market opportunity here? Like what's the opportunity now and how big could it become once the transition from the grey market to the legal one will occur? Thank you.

Thank you, Dmitry. I'll handle both.

On the first one, If we try to decompose this, the growth in the third quarter, 103%, or in absolute terms, 2.4 billion, you can actually split up into a low base effect, then organic growth, and kind of more sustainable organic. So in terms of low base effect, obviously it's arbitrary, right? Because it depends on what you set as a base for last year. But we estimate that it's around 15% out of 103% which is equal to 350 million that is explained by low base. So the percentage is obviously going down compared to Q2 for this reason. Then more or less equal impact came derived from inorganic growth around 15% of 350 million That's a collective impact from skill as a part of consolidation this year. And then, so effectively, if you take out these two buckets, 30%, then remaining 70% or 1.7 billion rubles could be also broken into three major guiding growth buckets of always having in consideration. First, monetization. Second, client-based expansion. And the third, consumption growth. So the first... explains a circle 40 percent of that 1.7 billion that's monetization or client base of course price differentiation and coupled with the effect of a new subscription model the key contributors already said that pay-per-contact products performing exceptionally well this year then 25 percent of 1.7 billion relates to increased consumption of services That's the impact of the market situation and labor force shortage and the general low candidate activity in the market. We discussed last time, so part of it probably diminished over time, so it's kind of semi-sustainable because we see that, for example, small-mini businesses, they consume twice bigger packages than they usually do. And the remaining 35% is the customer base expansion, predominantly small and medium businesses, predominantly regions. So that's driven by online adoption, our marketing investments and B2B channels, our product adoption, platform adoption, etc. And that's the most encouraging number, probably, because that's just helping us to grow the base, which we can monetize in the future. So generally, if you compare Q2, the low base effect went down, the immunization effect went up, the other buckets remained more or less the same. And the second question was on gig economy. Yeah, I think we touched upon this, but yeah, I'm happy to repeat that generally we see globally that the independent workforce constitutes up to 30%, or not up to, on average 30%. labor force. It's quite a stable measure if you look at it. So in Russia, even including that unofficial gray market, that's only 15%. And of course, the 95% of that 15% are currently in the gray zone because there were very limited incentives created and Upon the legislation change in 2018, we saw huge intake and registration of self-registered. So we believe at the moment there are, according to official statistics, around 2 million self-employed. And we expect actually this number to grow, say 10x, up to 20 million in the next three to five years. That's a huge emerging market for us. It's highly dynamic, and not only the volumes that matter, but also the business model that could be applied matters. Because if you compare with our traditional permanent work, it's much easier in this market to cut into transactions, because it's a more frequent market. It's quite similar to what we've seen in master equipment. And therefore, it's much easier to cut in transactions, processing payroll, processing some admin work. So it's very sticky, potentially, if you're successful in onboarding especially big enterprises. So that's our strategy together with YouDo. We kind of officially declared this strategic partnership in June. tried to test this solution with the clients and the direction was exceptional. So we decided to invest in UDO as a minority partner at this stage, but of course it's a strategic type transaction for us. We were having and securing all the necessary paths to control in the future to consolidate this business should it actually take off in the end. But we are very optimistic and in the end temporary market, contingent market could be bigger in monetary terms than the permanent sourcing market.

Thank you very much. Very clear.

Thank you. And no further questions that came through. I will now like to hand the conference back to your speaker, Dmitry Sergeyev. Your line is now open, sir. You may go ahead.

Yeah, thank you. I'll be right here.

Yeah, just a few remarks. First of all, thanks for your participation. This is the last quarterly call for this year. Time flies by quickly. Needless to say that it's been an outstanding quarter for us. In terms of financial results, it's probably the best quarter we've had since we've gone public. It's really nice to see how a strategy execution of folding, we showcase how we can really continue to grow client volumes while concurrently rolling out differentiated monetization. So it speaks of the deaths of the online equity market. It speaks of the kind of pricing power, rising out of our competitive position. But what's even more encouraging, I think, that kind of stems from the question we just received from Vanya on adjacent markets, In this challenging kind of candidate work, we clearly see that the process of kind of rethinking and upgrading the role of HR function and HR funding within organizations. So coupled with the recruitment interactions migrating online, so this creates unique window opportunities beyond our traditional market boundaries. This is already evidence in our results in value-added service performance, including skill as dynamics in our experiments with dream jobs and you do so we we just want to stress that for us as the market leader in traditional market it's really important we are the best position to kind of catch this opportunity it's important strategic task to kind of lead the next way for which our tech development in russia that's our ambition and the goal for years to come thanks for your attention have a great week goodbye