HeadHunter Group PLC (HHR) Misses Q1 EPS by 5c, Revenues Miss

HeadHunter Group PLC (NASDAQ: HHR) reported Q1 EPS of $0.09, $0.05 worse than the analyst estimate of $0.14. Revenue for the quarter came in at $25.6 million versus the consensus estimate of $27.1 million.

“Despite the current global slowdown in business activity, one of the most significant in modern history, I am very proud of how rapidly and efficiently HeadHunter has adapted to the evolving situation to continue providing consistent service to our customers,” said Mikhail Zhukov, Chief Executive Officer of HeadHunter Group PLC.

“In late March, we started observing a significant drop in recruitment activity from both candidates and employers, which became even more evident after the institution of Russia’s country-wide lockdown on March 25, 2020. Nevertheless, since mid-April we have seen positive dynamics gain a foothold and activity recovering strongly into late May. Various industries are gradually resuming operations and employees returning to work all over the country. We expect business sentiment to be muted until there is more visibility on the consequences for the whole economy of the pandemic and so the outlook for the labor market remains uncertain. However, the trends that we are seeing give us confidence that as business activity returns towards normal, HeadHunter will continue leveraging its strengths to retain and increase market share.

In addition, we believe that the current crisis will give a strong push towards further digitalization across a broader number of business needs and life patterns, including recruitment. We are confident in our 100% online business model, supported by ample financial resources and strong market position, which we believe will enable us to capture exciting opportunities in the future.”

Impact of COVID-19 on Our Operations and Financial Condition

Our first quarter 2020 financial results are affected by the decrease in employer and candidate activity on our platform due to COVID-19 spread and associated government measures from the mid-March 2020, resulting in decrease in revenues, partly offset by our cost-cutting initiatives. We see no specific immediate impact of COVID-19 on our financial condition as of March 31, 2020. We remain fully operational during this pandemic, as nearly all of our employees are successfully working from home.

For earnings history and earnings-related data on HeadHunter Group PLC (HHR) click here.

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