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Ozon (OZON)

Participants
Alexander Shulgin CEO
Igor Gerasimov CFO
Vyacheslav Degtyarev Goldman Sachs
Elena Jouronova JPMorgan
Ivan Kim Xtellus Capital
Maria Sukhanova BCS
Call transcript
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Operator

Ladies and gentlemen, welcome to the Ozon's First Quarter 2021 Financial Results call.

Before I pass the floor to Ozon's management, I would like to advise you that some of the information you will hear today may include forward-looking statements under the Private Securities Litigation Reform Act.

Forward-looking statements are based on management's beliefs, assumptions, and information currently available, and are subject to known and unknown risks and uncertainties, many of which may be beyond our control. And actual results may differ materially. We encourage you to refer to the cautionary statements contained in the Company's press release issued today and SEC filings.

press company other referring of metrics, find the the financial certain you call, in and today. measures reconciliations company's today's will to be non-IFRS will During published release and definitions today be by Q&A a Presentation session. will followed the will of Now, Alexander to pass Instructions] Shulgin, floor [Operator I CEO Ozon. sir. go ahead, Please

Alexander Shulgin

comments with afternoon will Thank to XXXX quarter full-year Ozon's good you our our Igor joining who everyone. on Together Gerasimov, CFO, you. some our XXXX. on Good and morning us on for make first update earnings Thank will the and the quarterly today welcome business, call. and for outlook results, you

will strong We possible see performance as and time momentum business as to try in much XXXX. We for the Q&A. our give in

and a and to our the experience of testimony transforming shopping sellers billion, unparalleled develop to commitment whilst GMV strategic year. generated their grow buyers, our actually the QX, our QX we of simultaneously on businesses comparable are of Russian terms by mission in RUB last our for to to our absolute platform. XX empowering services Our consumers is offering goal results which to In

is pleased businesses. result this are typically much as consumer We quarter stronger for QX with a

Our a platform. triple-digit sixth growth reached year-over-year, for quarter GMV growth row making this our XXX% in with a

resonates offering with Our the Russian consumers.

engine, seller Our in expect buyer growth effects base to scale. also Marketplace, increased base XX% our see increased XX by also allowing our to whilst grown flywheel And million, core Ozon and further year-over-year, accelerating dramatically, our business. nearly we gain

Coupled reliability proposition. enhancing our this with X.X of means customer increased times further and delivery [Ph] adjacent to of rollout year-over-year, million [breadths] assortment SKUs. services, XX Our service our and speed

our number new, the efficient With commission see we opposite equation sellers. our the develop in we structure, on business the sellers. On further more for sellers onboarding and of partners, side toolset growth new are

compared seller QX Our base of to XXXX. nearly quadrupled

sellers and our and well-calibrated to we to logistics meet perform buyers our expectations fulfillment and platform infrastructure. need For of a

provide As the reliable both part and become do fulfillment services to expand and In fulfillment regions fast and we to logistics in our buyers areas continue and sellers, infrastructure. Russia. we of strategy, of to logistics order and our our that, aim our in metropolitan closer to to

fulfillment square and pickup locations enhances of XX% XX,XXX during of season which which Our were our to QX, QX number deliver XXXX, footprint improvement Russia further XXX,XXX on is XX% XXXX. parcels reached meters, high in of offline able reached experience. across a We time, the customer from

about as the words the impact, June combat mid Russian and XXXX, of restrictions year, effects to most, restrictions starting lockdown around from to implemented the but COVID its ease the Now, and from last The started lockdown March a impacted the QX pandemic. government such few onwards. social the distancing measures,

impact isolate Although acknowledge it's we to on COVID certainty, option. of of a services our bring the to that helped the very online business degree forward with difficult great COVID

customers already last with to we of continue buyers' COVID growth to in we lack to the the about look online in adoption partnership was order by with by growth, ordering continue rising see of since colleagues expansion a the with online. at migration hit, restriction growth when and lockdown GMV measures. business and precaution sellers' new which the we eased businesses shopping time Our And triple-digit our while frequency safety Ozon the strong was mode for all reported of three materially, in the ways up both the Despite quarters all eased. necessary approximately. accelerated if the you cohorts, at our Nonetheless, third fast ensure for restrictions,

For such initiatives. example, is delivery contact-less one of

a provide performance. QX color the me on bit more let Now,

XXX% services strong year-over-year, year-over-year in some for our accelerated improving of we customers on them. quality order In focus delivered Russia. of from scale growth XX growth for growth. better our the year-over-year orders benefits reached and supported across million buyers QX, by XXXX. on for GMV Our product delivery we our XXX% QX, to on XXX% QX in In QX, to passing improved buyers, Order further [indiscernible]. terms

pickup As the we customers were allowed regions, Russia. we push into services which more across accessible more make our locations to

showed growth Our GMV doubling core XX.X%, QX. Marketplace, QX almost reached as XXXX. Share of XX.X%, in percentage engine, Ozon tremendous of in performance from XP

the rising XX of number of customers, As in a growth active million. which rapid order reached result frequencies

for [appreciated] which and was the to of expansion tools customers. offered merchant our growth growth addition, of includes their sellers very quality Overall, logistics, business to by of driving important our the which improve fulfillment performance assortment level service platform businesses, significant to is [Ph] and In augmented countrywide analytics, by year-over-year, of them, structures base our help February, commission quadrupling an with and our which engagement was efficient number to utilize and base. large we trading the infrastructure manner. rates customer to changes with on introduced commission we In There in aim to with that platform boosted sellers an fulfillment stimulate adjustment to a XXXX, made platform. the further incentivize the seller the

means take On will higher rates it that by likely offset be trading volumes the the be on should platform. our lower, balance, which

base the base with partnership retailers. Marketplace. sorting great onboarding and that brands its we sellers The also breadth to by regions, onboarded of of launch and to note sellers. attraction by marketplace offered and merchant led seller [sufficient] like fulfillment commission get to big closer We regional the the it in [Ph] quality QX, the regional also led the reliable facilities would In services strengthened the the in number higher to and and like improvement adjustment of onto to Ozon to structure Ozon

like in while facilitate as that, after QX, a beta last digital using we which Storefront independently enables Marketplace would year, note storefront. launched model, to Ozon deliveries I testing Finally, customers to to sellers

sellers. in it the point for this demonstrates big a driver that our develop at not to of continues it's products While Ozon time growth,

we something closely, post-lockdown that is performance monitor in particular cohort in very Our period.

reliability XXXX, increase very million XX% QX year-over-year March X to last XXXX. compared increased remains of speed choice proposition to of over to is SKUs. characteristics with contributing assortment, year-over-year X.X the to delivery, Company due months and on-time and frequency retention, great great order in for of as As driven believes in XXXX, significant by million much growth active Annual cohort X.X cohort in in frequencies. Improved strong XX%, to can overall buyers you by XX million QX the wider as XX were cohort order Marketplace of as increased XX, on well Ozon share customer QX. XX% by of see, XX, Number solid, to and up with deliveries, Ozon greater XX% year-over-year order of times XXXX. performance in frequency as XX to compared in X.X buyers March buyers improvement

Now, on you me verticals. let new our update

significant as We platform, lending BXC Express, BXB see continue and complementary to business services. we streams. and fintech, in rollout In scale such we Ozon around domain, out payments fintech and core build Ozon these to our and e-commerce potential services continue

XXXX, payment more other XXX,XXX often XXXX. activated more [digital of X.X flagship There Our cards product, methods. The the card, use of to on shows Ozon XXX,XXX those than with BXC to cardholders March March as usage great payment over spend [Ph]. format that tend platform compared were expediting] the as ordering traction,

partners not unique while the should flexible higher like platform, On payment drive enables best business and that product launch to payment volumes their boost their of with a into our marketplace together the have This loyalty fits arrange highlight needs, to our is schedule working BXB structured which front, I impact plan. on would to a sellers capital. the significant it

Ozon Express develop average compared this XXXX. In we past This volume service. XXXX December -- in double to quarter daily March, order continue the March was to

expand year the in regions. this the Our former goal is to

solutions spend develop [indiscernible] head to allowing is for continue Ozon which sellers natural to for source we platform. of the Finally, a monetization sellers

markets mid by we're fulfillment in is potential CIS and reference percentage huge this for customer additional to new sales operations plan as similar see our the We unlocking retail year. Ozon. market Russia, estimated to the very logistic we in retail region is launch turnover. in in be single-digit facilities to growth Belarus Although behavior of new Online in Russia. entering

for very So, there growth penetration. scope a lot is of e-commerce in low

over performance. would like to hand financial will Gerasimov who Now, further discuss Igor our to I

Igor Gerasimov

Alexander. everyone. afternoon, Good you, Thank

GMV As we strong and in with supply QX performance the year-over-year. XXX% Alexander reaching have already highlighted

I drivers for related Now, the we expanded to in would Overall personnel, the this. not and additional rents. to like take operating how the the expenses you evolved expenses operating regions requires in also bills, only quarter, sorting additional and first centers capital, but and which through fulfillments

software development. is large team addition, in our To of our platform central In growth operating need with highly we developers infrastructure qualified and and to facilitate order cost associated IT share business, cost product office and strengthening other a growth IT scale specialists. of the

openings orders most and technology and delivery compared administrative go year-over-year million I XX.X effect of employees year require primarily IT reflected across the infrastructure higher talented the logistics in fulfillment was QX driven the GMV, order line Ozon's the the into In as processed of GMV. up acquisition which to general through expense in and of of and is up into pressure talent delivery additional ramp with perceive orders cost year, fulfillment additional our this by take by last line. and despite an on development and benefit delivered increase XXX% If Russia million this XX.X year-over-year platform. puts investment as almost to number We Fulfillment and line year-over-year orders XX% scale and increased line. the a content into Our by of and we in of infrastructure in QX growing objects. new of items result cost investment by which it also expense expense line accelerate we increase which key are remaining for

down In QX the operations, GMV. XX% retention. the QX, year-over-year our fast operations and percent GMV. offline percentage as focus four has together delivery a expense was by better XX% As and the although sold XXX Ozon in cost of down increasing to efficiency GMV GMV, To together in mostly the increase as is on of reduction of optimization. and significantly This up, percentage, result operating attracting top reduced of but year-over-year fulfillment at reflecting the driven with a increased cost a advertising point digital percentage of growing year-over-year increase scale, significant mainly platform GMV COGS expense in basis also a decreased driven of of percent by good and in with new as in to performance. sum they actually QX and were from expansion cost XX% marketing XXXX. and by sales year-over-year accounted XX points work also our aims Ozon Eighty It frequency customers

Our QX expectations. was -- follow profitability in

place, last took Ruble NIT business remained the EBITDA While logistics XXXX previous X.X EBITDA doubled than investments size loss year the and XXXX in of active to the in our to from XX.X scaling on as focusing terms. RUB growth compared GMV GMV to minus a in X.X than scale, while more activities negative GMV QX the quite building including was of period. X.X practically billion more greater time was the gaining logistics negative strategy market Cash and to to six Adjusted continue year of RUB at The X.X same planning Adjusted in a has We're level doubled significantly in comparable of in economies in negative million that percentage over EBITDA out. playing QX improved on share. as rapid negative services negative leverage. billion demonstrates operating and QX due business from well quarters RUB fulfillment for for QX scale operating of XX RUB efficiency flow XXXX. as is billion in row, gains our

this and operations. year provide the QX some significantly impacted general [indiscernible] by fact the of is by for context across flow me typical which our and the is quite that the Let business industry. QX cash is around seasonally dynamics whole effect, typically in our in strongest previous the

CapEx a to cash the expect payments in sold during fourth to cash outflows. of in improvement peak cash expected but look flow in flow in given cash ramp flow be near breakeven. the year. expected for And thus inventory in As a breakeven up we faster and QX, following RUB operating this season year be we're X XXXX for the started of result ramp guidance resulting reiterating more gradual of of We'll CapEx quarter course significant over to up for around the to than QX, year. to even the operating quarters full in billion forward that, our

year-over-year product can our principle aim core RUB enhance well as the billion for The in are million. X.XXX%. guidance XXXX growth of we issued to services market convertible believe increase to USD effect tough GMV QX in XX for even to business business coupon e-commerce that's XXXX, deliver from that and expand of our RUB this improvements, with to in us billion benefit and secured confidence order in follow of sum from more. on So, as In to XXXX. We is higher XXX% infrastructure, to our XXX amount logistics growth strong up fueled and previously These deploy Russia. in flywheel communicated adoption This fueled guidance growth aggregate by trends reiterate performance longer growth future, platform. In We CapEx. between accelerate due year, growing or Ozon bonds bonds comps service despite for gives XXXX. XX continued triple and tactical digit share to investments our online new verticals, XX% our

So helps spanning semi-annually from August our transaction strengthen sheet us This position. to is be to balance XXXX. paid it

transaction of thus As us developing we for banking is impact operations This registered our we to XXXX, Bank project gradually which XX, We closed to the XX Bank. cash sides products faster provide our of us on of cash microfinance should us to that financial end the will the order is delivering XXXX, and base. exciting to for our This the to In bank for to approval the title Therefore, commissions. customers acquisition lower Oney the before cash allows acquisition we amounted end the required February, month. Recent with marketplace. consideration transaction to of migrates April both transaction and a Total the XXX transaction. new May merchant XXX obtain the of the of with the keep also services development be billion. better on have license, expect March RUB our RUB in us allow on create entity million. products Central and the to goal we passed first payment equivalents received to for

the is of to Another of week. with Ozon XX, weight the exciting on as be Russia Index May included in development announced Index close us inclusion XXXX. expected is MSCI for approximate business last MSCI X.X% of

I would we like quarter, note Finally, last third-party to launched that, logistic services.

to partner for Ozon businesses helping of aims to a become As improve online. the across a service, part Russia, new many reliable them their presence

stream service see create increase also cost-effective IKEA. business in so regions utilization able have the on allows demand it for service reliable We for us the during and international payback suboptimal importantly big the forge capacity us, goods logistic alternative These with season, delivery shorten great furniture the returns a provision. for more initiatives to a low capital new revenue and the with We been home period. and partnerships, and to example, already chain, to but improve

throughout this Ozon via Moscow the for service plan Now Q&A. attention, are make we available to you for in move to your available and IKEA as us region country. the let delivery Moscow products in and Thank

Operator

we Sachs. session. Instructions] begin first Vyacheslav question the Ladies your question-and-answer [Operator go now ahead. and Degtyarev of will Please from line the from And is Goldman gentlemen,

Vyacheslav Degtyarev

you throughout cost items costs. during improved a the side, year? Thank year-over-year G&A QX, secondly, QX, Yes, trajectory of what on questions, April-May, GMV on thank very for cost the the same strongest comment performance was the so can month And of How Couple in you month? on throughout to percentage as deceleration except the firstly, you. month progression in the for by first the performance basis the of expect quarter? and basically soft call. the throughout the continue much was a Would GMV the all maybe growth the you

Alexander Shulgin

the thank for you Vyacheslav, questions.

measures in almost the introduced -- largely of and -- you sort time as basis period XXXX, probable year-over-year, creates throughout this expect the lockdown growth lifted it's now, of year-over-year comps Therefore, in XXX% So, were definitely, it the natural was to yes, end by given year. they that therefore, And toughest deceleration. late remember, the was March on some Russia, were across nearing the June Russian regions. the therefore and most of

CAGR it vary into the have terms we're is if the of with we largely rate in might Therefore, expectations. year-over-year our effect, that the However, in of the should performance be because stable, in on account is GMV on CAGR line while taking in the base we terms see growth line performance the with the situation which two-year two-year largely previously observed trends looking growth and XXXX.

performance be cost negative as additional percentage new pressure hiring a objects, of the personnel. well GMV, of some will from cost still the going about a infrastructure in we Speaking the lines, forward experiencing as as openings for

to on of the especially speaking robust mean, the cost year-over-year aim in about lines. cost able many an basis, full-year, improvement I definitely we and be maintain, relative However, GMV, should and

would However, but the cost on on I -- guidance provide mean any focused not discipline. definitely EBITDA, and we remain

Vyacheslav Degtyarev

Okay, thank much. very you

Operator

Thank you.

is Your from of the go JPMorgan. Please from Elena next question ahead. Jouronova line

Elena Jouronova

first good costs. a Yes, of and for delivery should When hi. percentage online, they as and foremost for speak fulfillment think congratulations results. I have few you day, GMV on why? questions, and Good do

Igor Gerasimov

forward. I a thank a varies this guess [indiscernible] and guess I going year, picture as as percentage it's Elena, you, Igor. percentage --

ramps the a we'll be improvement. While observing gradual infrastructure up,

Elena Jouronova

in rising the for outlook order your how how does principle, frequency change profitability? And Understood. does

Igor Gerasimov

us, the order better. in number the way and Therefore in is but more an because beneficial order the frequency it for be economics neutral, and our purchases AV therefore following is cohort is be Increase will lower while items retention our frequent, becoming performance for should be long-term are definitely of beneficial might company. reducing, optically and in

Elena Jouronova

costs, delivery but mean your of see much this frequent orders, I even means you number that… on basically So, though in more pressure the

Igor Gerasimov

line with the fit are people is fact this that doesn't same. communicated the in on costs, shoppers it therefore Ozon, just standpoint, becoming is guidance to that's natural we this reflection you which expectations, it. progression the from professional and our delivery and frequent already factors no, have completely Therefore, our and No, of a more

shouldn't economic implications standpoint. therefore, be the So from any negative there

Elena Jouronova

with Can us the with what you number quarter, on average? share or year per you numbers? shop latest don't per frequently customers are your how I orders know of

Igor Gerasimov

our those the roughly opening more right are now, in points an Therefore, fourth we and we're it's and annualized to infrastructure. In reflection for people natural also a the you orders could therefore it's to quite just on of that mean rapidly year. X.X press Therefore it's a them more, because last actually increase release, faster of for people fact pick-up the have quarter objects QX, basis. use our And as leads offers, our as personal this wanted is I seen own which see can from way in it consumption. our And also beneficial cohorts, also of presentation. -- using you

Elena Jouronova

so you're follow-up, And saying just about customer orders X.X on a small an basis? annual per

Igor Gerasimov

Yes.

Elena Jouronova

[Indiscernible]

Alexander Shulgin

target joined Elena. we theory, that's X.X high-teens average. be countries. longer I which that's something would is Hi, mean in of understand long-term which we is right, the the reality And In customers, platform. includes Yes. definitely something just That already term, like new sure. most that in achieve. to that's would a that for also What mid is to

than are with be who this on for year, those already above For X.X times one would higher. us number more

performance. however So, corporate that's quite our with we're happy --

on six. it's the think I slide

developing that every previous new than better it actually can the rapidly. you that's and is -- continues see cohort So, one,

happy. So, we're quite

improve. the is it's do even for just of if X.X always a not mature, already -- actually difficult calculate, cohorts time to to this So, cohorts new older matter it's

Elena Jouronova

Okay, understood.

[multiple among for shoppers more ones on And who I speakers] XXX a frequent days shop me would year. final of think be -- the those your

Alexander Shulgin

you your frequency, estimates. some can provide be Elena? What's Might

Elena Jouronova

days day it's sometimes you XXX twice year; telling I'm sometimes and day. a every a

tell you like, this I'm So, is that potential. the can

one final we go kind should commission be mean, rates the XXXX? pressure new for How that's about So, the dynamics. the quarters, structure further take we merchants of your rate the would as rest maybe down adjust of or though to there? remaining think this me on take should expect for I

Alexander Shulgin

some changes as you we've since know, done yes, February. So,

see with the So, We versus difficulty] changes not QX. input response -- promises made want result see from you -- any basically just but to we [technical still factoring the any did just actually some in some digesting guidance, know, sellers. clearly we February. this sellers, what changes is them We together these give that we of do here, we

bases our in see We response So we by in seller saw rapidly. of terms actives. particular good of increasing number

goes started you our to equity the it's we actually also infrastructures, So direction. -- your right in the local optimize because interest bring -- you original fulfillment in can now of increase assortment, goal And the -- some much it to see if better that we seeing we've our some of costs the center.

that, will some So a be see technically, you as of reduction having it clear there, right. said well, cost so might reduction but

for today will if if Yekaterinburg, from example, a for you sell activities. to sell Moscow So you transportation pay -- little

report our they gross in the it's pay you Yekaterinburg. the it grows includes If and there. sale so transportation. pay us not from So, right to there. will will some right directly reports, part database, will They growing in of be order for -- and They cost would some what Yekaterinburg not also bring profit, the see and

as visually costs below rate but below, was So well. take will

kind do. that to, so changing of that thoughts So apart not that big we might about commissions. from there working this We're happen is something no are

and cross-dock actually to we're where So, ancillary these pay digest develop this and commissions you services, we lot original we can us, fulfillment -- services, which doing advertising revenue, centers. so need a is also bring and ancillary to today,

costs. important also service that's So

So just and to in -- they on just opposite ancillary this part. the the we cut input it commission's shortly, have I they guess

Elena Jouronova

fast volatile, very change QX. source [Ph] But thank a how has why -- merchants? Okay, I more for underlying And principal, [XP] been any if may, this capital the in been one dynamics has in of cash you. working I understand outflow and there do because pay question, with are actually you Ozone the

Alexander Shulgin

was was nothing changed, it mean, I impact. No, completely

concise. answer, keep it but this mean, will complex be I try I'll to So a

by beginning the we'll look XXXX XXXX COVID with compare of of different and for XXXX, undertake the the bit XXXX. the Therefore, the lagging is impacts, several quarter, to fourth it in at in to you're which performance revolution, quarter see the to in it impacts the therefore, it especially XXXX comparable was better by the to was dynamics working time healthy. than this the you'll if at that is distorted avoid were picture we capital together a combine with of look But first I performance quarter price the which fourth impact And allow So decided across over for to XXXX the and say be distorted ride quarter period. you first processes. dynamics between XXXX, the the it's quarter actually used this segregation would mean, way

Elena Jouronova

thank very Okay, much. you

Igor Gerasimov

Yes, touch I briefly. will

quarter. new And think, first-half year this flow the very the bit -- the little GMV just second that well. well surge -- you it's for surge XP just we see simplest last all sales effectively the weeks not first it's the within basis, [indiscernible] last versus of only a like year can I we first-half in the last as like in year. just in we of and small quarter in yes, actually quarter, in second sales operating versus in was cash March not right. good It's got terms of used at was these a And paid you month -- way and a because -- remember March huge

Elena Jouronova

Yes. you. Understood, thank

Operator

go the Please Ivan Instructions] of Capital. [Operator ahead. Xtellus quest is line Kim of your And you. Thank next from

Ivan Kim

delivery, for value quarter year, January lastly, or shall how let's the on year. in for Can how rest the a -- the year or G&A threshold And so your of you delivers afternoon. quarter we just ahead expenses the I with as compares day, the say? and ago? three expect Good of please? Yes. for what then have questions it free quarter progressing Firstly, is now delivery happens quarter Secondly, growth that of with reduced well, fourth first total last versus order threshold the next the share share maybe in of

something So Thank you. is it reasonable issue? to

Igor Gerasimov

Okay.

I So, and follow-up. begin, Daniil and Alexander will maybe can

implement, has roughly of day still a materially which the nothing material faster of -- different fourth those On that is the quarter year. nothing of share some changes of at because third orders next remains therefore total one versus last and which

effects resulted mean AV, the been it the On hard threshold share of to the lot but in of quite for -- it's small we've time pickup I a into at points. opening tick a the courier so up Therefore, in play spent what how strongest going delivery same for this the pickup of as of share see as were deliveries points But blended say parcel ultimately the forward was yet to XX%. and on we But over out. now, basis. lockers will

doesn't that Just gives whether a whether that and the but remain the it probably a the as from pace way say into much where end -- and it not the agnostic. guidance, definitely XXXX it reminder, are delivery in for lockers quarters still, overall. of somewhat is it's coupled investing we I only and with by or first but talent of ramping acquisition they elevated, investment will noticeable the in not impact wouldn't neutral -- the a respective was matter goods quickly bottom G&A the customer structured I'm line. way kind our growth structured I to that will just growth being in and this G&A of be for points mean, can line or are I XXXX therefore I pickup make the annual Therefore sure channels commissions delivery year, because it I an are mean, mean, and largely cost parcel for for for goods definitely be XXXX, makes expense mean gives of us courier yet in customer whether up cost for G&A

Ivan Kim

for you Thank Great. figure. that

Alexander Shulgin

across but to positive puzzle, very I of that there the sellers we think it takes will GMV. time of new implemented and for well makes [indiscernible] commissions in like us one commission change cost have QX I decision inertia will speed how the think to some which Obviously sellers speed reduce way regions, reasons new So which that of behind because improve potential said in costs. and give incentivize the both as of was both on I the inventory important to delivery what delivery, on impact, is is these communicate eventually also in as

Ivan Kim

on Great. maybe Express. last this. the for Thank much very you one Ozon And

So, growth have said similar been you Thank you. in and before this more see what you GMV, do source? issue trends there, [indiscernible] opening and of was that so quarter revenue you

Alexander Shulgin

to we're has The last low year, in growth this plan of high a base performing from and very we accordingly. open rate, business year, substantial very of stores number

Ivan Kim

Okay, great. Thank you.

Operator

Thank you.

line question Your Please Maria is ahead. from of next BCS. of the go Sukhanova

Maria Sukhanova

I've hi, Yes, two got everyone. questions.

you tell uses Financial on your The merchants is us base, services installment. into if inflation also percentage bought concentration so customer And as Ozon retirement, with but maybe your services question that on you of base that income many you your the your in probably this one what advertising to merchant and do financial tell so tell us of merchants, first if percentage similar merchants? could us Services is are what and of could into cards what the active, of how

Alexander Shulgin

the payments together Okay, penetration of goes dollar so with of the XX% Fintech blending already. to GMV the roughly services

end get is is Obviously, attributable is already able fast very, you, mean vertical So means couple it I of most very a over that I very a it the at up product offerings, just it's quarter, the is services, which fast, to of been this GMV because part more to lending remind mean, MVP very first getting of taken and the pretty a of way significant. small base. but percentage of was scalable payment which course year, gradually to from points has

go Fintech by of GMV. we're initiatives way our in pretty that confident could as bigger forward, a going percentage our share own Before

Maria Sukhanova

And please? advertising

Alexander Shulgin

as increasing somewhere is mentioned. think percentage Daniil development is attributable the as long-term of be you very GMV the In and of mean the far gross its realizing I'm from talking are and obviously single-digits that now team way, sellers the to I've we're very back gradually, potential, is margin its but it's and marketing, marketplace, GMV. the advertising, Advertising using, mostly engine which mostly advertising still which our long-term it's percentage the I as will which obviously but I by in on mind as in and trade alternative of his profit be to impacted potential thing a focused far of to should service need about mid a thing close which from largely

Maria Sukhanova

you very Understood, thank much.

Operator

[Operator Instructions] this questions There are at no Please further continue. time.

to As presenters there back for remarks. questions, let hand the are me no further closing

Alexander Shulgin

with [XXX%] want To your growth this questions QX last We of the for year. everyone all our on up, business and over in cylinders. engine us have we're with joining made today. The core quarterly on pleased [Ph] thank our very we marketplace progress for to-date sum call to firing is

potential moves our and demand business consumers. commercial We've our of XXXX, XP So, from in services for the as warranty growth QX strong seen models.

fast Our our customer base growing and is customers. by we're encouraged

our and in forward as good in updating to business. QX call We as which getting continue our out costs, on and you business to core look focus business August. portfolio afternoon. complementary our you we're We our and Thank additional have progress a expand well is earnings making to

Operator

the That concludes presentation.

disconnect. may You