HeadHunter Group PLC (NASDAQ:HHR) Q2 2020 Earnings Conference Call - Final Transcript

Aug 27, 2020 • 09:00 am ET


HeadHunter Group PLC (NASDAQ:HHR) Q2 2020 Earnings Conference Call - Final Transcript


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Q & A

Thank you. [Operator Instructions] Your first question comes from Vyacheslav Degtyarev from Goldman Sachs. Please go ahead.

Vyacheslav Degtyarev

Yes. Thank you very much for the presentation. A couple of questions. Firstly, how do you think about the price increases for the next year? Apart from the consumption-based approach that you introduced recently, do you plan to have price increases for the Job Postings, CV Database Access and your other products? And secondly, can you probably elaborate a bit on the competitive trend that you observed over the course of the last couple of months? Thank you.

Dmitry Sergienkov

Hi, Slava. It's Dmitry here. I'll try to answer your questions. I think on the first one, regarding price increase, as you understand that what we kind of put forward with this transition to our new monetization model for CV Database was quite important event for our clients, right? And despite it affected only 50% of the universe, it still had a lot of kind of different reaction, right, on the various fronts. And therefore, at this point of time, we decided that probably we shouldn't be discussing any further price increases with clients, although normally, we start doing this in summer period because, especially with those clients who are running through their budgeting at this time.

At the same time, we understand that, again, 85% of our clients won't be affected by the CV Database limits, right? And I think if the economy performs well, and we continue -- we see continued trend on recovery, then definitely we'll be considering raising the other product prices. And most likely that would happen in the fourth quarter. So we try to retain as much flexibility with us this year, particularly in this environment and just assess how -- what we see with the virus evolution over autumn, right, and so what are the other economic shocks that could be happening. Therefore, yeah, to answer your questions, our base scenario will be to just to raise prices for other products as well, but not for CV Database.

And the second question, I think, quite a broad one, on the competitive dynamics. We generally see and consider summer being kind of a downtime period from competition wise. This year is slightly different because, obviously, due to COVID situation and the quarantine, we saw that all competitors significantly trim their budgets in the second quarter, right, especially in May. And obviously, we saw them also returning to the market in June and July because the candidate and employer activity clearly picking up.

So everyone actually understand that it's important to be in the market. So now we're seeing quite intense competition in mobile digital auctions, especially with their both ends working. Pretty, I would say, silent on the offline in terms of the TV presence and outdoor, etc. So those expenses were quite moderate. So in terms of our KPIs, we are very satisfied how it actually is unfolding this summer because, especially on the back of our active promo