Russian job board operator HeadHunter Group plc  reported revenue of RUB 8.49 billion (USD 93.5 million) for the fourth quarter of 2023 ended 31 December 2023, up 72.0% over the previous year.

Revenue growth was mostly driven by the increase in average revenue per customer (ARPC) and an increase in the number of paying customers due to the strong demand for our products amid fierce competition for candidates.

Controversially, it is claimed that HeadHunter’s more recent growth has been due to the recruitment of military personnel, privateers and police to take part in the Russian invasion of Ukraine. Headhunter was previously listed on the US Nasdaq stock exchange, but its shares were suspended soon after Russia despatched troops to Ukraine in February 2022, and subsequently delisted.

Last month, HeadHunter announced that Mikhail Zhukov, then president of the company, passed away at the age of 56. Zhukov led HeadHunter from 2008 to 2023 as CEO and, in January 2023, he became president of the company.

Net income growth was driven by a significant increase in revenue, which was partially offset by an increase in income tax expense and foreign exchange loss on cash in foreign currency.

Adjusted EBITDA for the fourth quarter of 2023 increased by 91.9% and Adjusted EBITDA Margin increased by 6.1 points from 52.5% to 58.6%, compared to the fourth quarter of 2022, due to the strong increase in revenue.

In the Key Accounts customer segment, revenue increased by 68.2%, driven mostly by ARPC growth as well as an increase in the number а paying customers. In the Small and Medium Accounts customer segment, revenue increased by 73.2% due to an increase in the number of paying customers and ARPC growth.

In the Other segments, revenue increased by 94.8%, largely as a result of the increase in number of paying customers.

HeadHunter also reported full year revenue increased by 62.8% to RUB 29.44 billion. Strong competition for candidates resulted in an increase in the number of paying customers and average consumption of the group’s services. These factors were further enhanced by the company’s pricing initiatives in place since January 2023 and the low base effect of 2022.

“In 2023, the Russian recruitment market continued its transformation, with a rapid shift to online,” said Dmitry Sergienkov, CEO of HeadHunter Group PLC. “We ended the year 2023 with a very strong performance, as the total number of our customers exceeded 600,000 and revenue went above RUB 29 billion. We are focused on introducing innovative products that help HeadHunter remain a robust and reliable partner for our customers in a labour market where supply is very scarce.

Sergienkov added, “Corporate-wise, in 2024 we are planning to re-list our shares on the Moscow Exchange and create conditions to resume dividend payments to our shareholders.”