Cian Q4 and Full Year Results: $18.9M Profit in 2023, Solid Growth Across Key Metrics

Russian real estate marketplace Cian has announced its Q4 2023 and full-year financial results.

Highlights for the fourth quarter include:

• Revenue increased by 37% Y-o-Y to RUB 3,270 million ($36.5 million).
• Profit for the period amounted to RUB 265 million ($3.0 million).
• Adjusted EBITDA increased by 28% YoY and reached RUB 749 million ($8.4 million).
• Adjusted EBITDA Margin decreased by 1.6% YoY, to 22.9%.
• Core Business revenue increased by 29% YoY to RUB 2,998 million ($33.4 million).

Highlights for the full year include:

• Revenue increased by 40% YoY to RUB 11,571 million ($129.0 million).
• Profit for the period amounted to RUB 1,692 million ($18.9 million).
• Adjusted EBITDA increased by 66% YoY and reached RUB 2,778 million ($31.0 million).
• Adjusted EBITDA Margin increased by 3.8%, to 24.0%.
• Average UMV (Unique Monthly Visitors) increased by 7% Y-o-Y, to 19.2 million.
• Core Business revenue increased by 37% YoY, to RUB 10,892 million ($121.4 million).
• Core Business Adjusted EBITDA increased by 35% YoY, to RUB 3,023 million ($33.7 million).
• Core Business Adjusted EBITDA Margin decreased by 0.5% YoY, to 27.8%.

Dmitriy Grigoriev, Chief Executive Officer at Cian PLC, said:

"In 2023 our business demonstrated robust performance in the highly dynamic market environment. I am proud that our team once again proved that our professionalism, dedication and hard work can be translated into strong financial results for the Company.

"Following the completion of Cian’s recently announced restructuring plans we stand ready to introduce a dividend policy and this will allow us to unlock dividend payments to our shareholders.

"This year has already demonstrated that it is likely to remain challenging for the company and its business. A high CBR [Central Bank of Russia] rate and, as a result, high mortgage rates coupled with changes in conditions for government subsidized mortgage programs, will add additional pressure on our business and financial indicators."

It was solid performance across Cian's core business: listing revenue (9%), lead generation revenue (69%) and display advertising revenue (31%) all experienced growth compared to 2022

Cian also recorded a significant boost in revenues from its transactional business in the same period, a 253% increase to 272 million rubles (USD 3 million) in the three months to December 2023. Cian says the bulk of the increased revenue came from an increase in demand and interest rate hikes.

But while interest rates went up, the Russian ruble went down—almost 50%—meaning profits for the period dropped from 489 million rubles in Q4 2022 to just 265 million rubles in Q4 2023.