Ozon reports its unaudited financial and operating results for the first quarter of 2023. The Company delivered a record adjusted EBITDA of RUB 8 billion and reduced operating expenses per order by more than 50% y-o-y.
GMV incl. services increased by 71% year-on-year to RUB 303 billion in Q1 2023. The growth of the sellers' GMV rose at an even faster rate, nearly doubling, and their share of the Marketplace as a percentage of GMV incl. services reached 79.5% (up 9 p.p.).
The number of active buyers increased by almost a third to 37 million, up from 28.7 million a year earlier. A loyal customer base drove a 50% year-on-year increase in order frequency: Ozon customers placed an average of 15 orders per annum in Q1 2023, compared to 10 a year earlier. The total number of orders rose by 93% year-on-year to 179.3 million.
Total revenue increased by 47% year-on-year in Q1 2023, driven mainly by more than two-fold growth in revenues from Marketplace services. Service revenue, including revenues from advertising and financial services, outpaced Ozon’s 1P sales, and accounted for 57% of total revenue, or RUB 53.4 billion. The Company’s revenues from Ozon’s advertising platform for our sellers tripled, exceeding RUB 10 billion.
During the reporting period, the Company has been improving its gross profit and operating profit margins. In Q1 2023 the Company’s gross profit [1] exceeded RUB 15.5 billion and amounted to 5.1% as a percentage of GMV incl. services. Adjusted EBITDA was positive for the fourth consecutive quarter, reaching a record RUB 8 billion in Q1 2023, as a result of the fast growing GMV, economies of scale, and optimization of logistics, fulfilment and other costs. In Q1 2023, the Company reduced operating costs per order by more than 50%, from RUB 187 in Q1 2022 to RUB 87.
In Q1 2023, profit for the period amounted to RUB 10.7 billion, compared to a loss for the period of RUB 19.1 billion in Q1 2022. This was mainly due to a one-off gain related to the extinguishment of financial liabilities and solid revenue growth.
Cash, cash equivalents and short-term bank deposits amounted to USD 1.1 billion [2] as of March 31, 2023.
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[1] On January 1, 2023, we changed our definition of gross profit from total revenue less cost of sales in a given period to total revenue less cost of revenue in a given period. More information about changes available in the full version of the press release
[2] The USD equivalent was calculated as RUB amounts of cash, cash equivalents and short-term bank deposits converted from RUB using the exchange rate as of March 31, 2023: RUB 77.0863 per 1 USD (source: the Central Bank of the Russian Federation).
GMV incl. services increased by 71% year-on-year to RUB 303 billion in Q1 2023. The growth of the sellers' GMV rose at an even faster rate, nearly doubling, and their share of the Marketplace as a percentage of GMV incl. services reached 79.5% (up 9 p.p.).
The number of active buyers increased by almost a third to 37 million, up from 28.7 million a year earlier. A loyal customer base drove a 50% year-on-year increase in order frequency: Ozon customers placed an average of 15 orders per annum in Q1 2023, compared to 10 a year earlier. The total number of orders rose by 93% year-on-year to 179.3 million.
Total revenue increased by 47% year-on-year in Q1 2023, driven mainly by more than two-fold growth in revenues from Marketplace services. Service revenue, including revenues from advertising and financial services, outpaced Ozon’s 1P sales, and accounted for 57% of total revenue, or RUB 53.4 billion. The Company’s revenues from Ozon’s advertising platform for our sellers tripled, exceeding RUB 10 billion.
During the reporting period, the Company has been improving its gross profit and operating profit margins. In Q1 2023 the Company’s gross profit [1] exceeded RUB 15.5 billion and amounted to 5.1% as a percentage of GMV incl. services. Adjusted EBITDA was positive for the fourth consecutive quarter, reaching a record RUB 8 billion in Q1 2023, as a result of the fast growing GMV, economies of scale, and optimization of logistics, fulfilment and other costs. In Q1 2023, the Company reduced operating costs per order by more than 50%, from RUB 187 in Q1 2022 to RUB 87.
In Q1 2023, profit for the period amounted to RUB 10.7 billion, compared to a loss for the period of RUB 19.1 billion in Q1 2022. This was mainly due to a one-off gain related to the extinguishment of financial liabilities and solid revenue growth.
Cash, cash equivalents and short-term bank deposits amounted to USD 1.1 billion [2] as of March 31, 2023.
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[1] On January 1, 2023, we changed our definition of gross profit from total revenue less cost of sales in a given period to total revenue less cost of revenue in a given period. More information about changes available in the full version of the press release
[2] The USD equivalent was calculated as RUB amounts of cash, cash equivalents and short-term bank deposits converted from RUB using the exchange rate as of March 31, 2023: RUB 77.0863 per 1 USD (source: the Central Bank of the Russian Federation).
Full version of press-release is available here.
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Press Office
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Disclaimer
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Ozon Holdings PLC (“we”, “our” or “us”, or the “Company”) about future events and financial performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.
These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Ozon’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, the geopolitical crisis surrounding Ukraine and sanctions and governmental measures imposed in response, other negative developments in Ozon’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Please refer to our Annual Report on Form 20-F for the year ended December 31, 2022 and other filings with the SEC concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Ozon may elect to update such forward-looking statements at some point in the future, Ozon disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing Ozon’s views as of any date subsequent to the date of this press release.
This press release includes “Adjusted EBITDA”, a non-IFRS financial measure not presented in accordance with IFRS. These financial measures are not measures of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See “Presentation of Financial and Other Information” in this press release for a reconciliation of certain of these non-IFRS measures from the most directly comparable IFRS measure.
This press release includes interim financial information for the three months ended March 31, 2023 and 2022. The quarterly information has not been audited by the Company’s auditors.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Ozon Holdings PLC (“we”, “our” or “us”, or the “Company”) about future events and financial performance. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements.
These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Ozon’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, the geopolitical crisis surrounding Ukraine and sanctions and governmental measures imposed in response, other negative developments in Ozon’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Please refer to our Annual Report on Form 20-F for the year ended December 31, 2022 and other filings with the SEC concerning factors that could cause actual results to differ materially from those described in our forward-looking statements.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While Ozon may elect to update such forward-looking statements at some point in the future, Ozon disclaims any obligation to do so, even if subsequent events cause its views to change. These forward-looking statements should not be relied upon as representing Ozon’s views as of any date subsequent to the date of this press release.
This press release includes “Adjusted EBITDA”, a non-IFRS financial measure not presented in accordance with IFRS. These financial measures are not measures of financial performance or liquidity in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. See “Presentation of Financial and Other Information” in this press release for a reconciliation of certain of these non-IFRS measures from the most directly comparable IFRS measure.
This press release includes interim financial information for the three months ended March 31, 2023 and 2022. The quarterly information has not been audited by the Company’s auditors.
The trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the products or services of the Company.