26.07.2022 / 13:00 MSK
The issuer is solely responsible for the content of this announcement.
Yandex Announces Second Quarter 2022 Financial Results
MOSCOW and AMSTERDAM, the Netherlands, July 26, 2022 -- Yandex (NASDAQ and MOEX: YNDX), one of Europe's largest internet companies, today announced its unaudited financial results for the second quarter ended June 30, 2022.
Q2 2022 Financial and Operational Highlights1,2
In RUB millions
Three months ended June30
2021
2022
Change
Total Revenues
81,402
117,748
45%
Online Ad Revenues
39,586
48,430
22%
Total Adjusted EBITDA
5,780
25,694
345%
Total Group
Total Adjusted EBITDA margin, %
7.1%
21.8%
14.7 pp
Net income/(loss)
(4,664)
8,056
n/m
Adjusted Net Income
1,012
13,134
n/m
Share of Russian search market, %
59.7%
62.1%
2.4 pp
Search share on Android, %
59.5%
61.9%
2.4 pp
Search share on iOS, %
42.2%
48.4%
6.2 pp
Search and
Revenues
39,212
51,233
31%
Portal
Revenues Ex-TAC
32,151
43,215
34%
Adjusted EBITDA
18,543
28,461
53%
Adjusted EBITDA margin, %
47.3%
55.6%
8.3 pp
Revenues
37,007
56,474
53%
E-Commerce, Mobility
GMV of Mobility3
138,580
178,963
29%
and Delivery
GMV of E-commerce4
35,007
58,568
67%
GMV of other O2O services5
15,071
23,439
56%
Total Adjusted EBITDA
(9,062)
2,139
n/m
Plus and Entertainment Services
Yandex Plus subscribers, MM
9.0
13.7
53%
(1) Pursuant to SEC rules regarding convenience translations, Russian ruble (RUB) amounts have been translated into U.S. dollars in this release at a rate of RUB 51.1580 to $1.00, the official exchange rate quoted as of June 30, 2022 by the Central Bank of the Russian Federation.
(2) The following measures presented in this release are “non-GAAP financial measures”: ex-TAC revenues, adjusted EBITDA, adjusted EBITDA margin and adjusted net income. Please see the section “Use of Non-GAAP Financial Measures” below for a discussion of how we define these measures, as well as reconciliations at the end of this release of each of these measures to the most directly comparable U.S. GAAP measures.
(3) GMV (or gross merchandise value) of Mobility is defined as the total amount paid by customers for ride-hailing, car-sharing and scooters rent services booked through our platform, including VAT.
(4) GMV of E-commerce is defined as the value of all merchandise sold through our Yandex Market marketplace and Yandex Lavka as well as the value of products sold through Yandex Eats grocery service (delivered and paid for), including VAT.
(5) GMV of other O2O (online-to-offline) services includes the total amount paid by customers and partner businesses for Yandex Delivery services, the value of orders, delivered through Yandex Food Delivery service, Lavka Israel, and several other smaller O2O experiments, including VAT.
Financial outlook
Given that uncertainty concerning future geopolitical developments and the macro environment remains high, our visibility over the short- and medium-term is limited and we remain unable to provide any forward-looking outlook at this stage. We aim to remain transparent about the performance and key trends across our businesses with our quarterly Letter to Shareholders.
Corporate and Subsequent Events
On February 28, 2022, Nasdaq and the New York Stock Exchange suspended the trading in securities of a number of companies with material operations in Russia, including Yandex N.V. Class A shares, and as of the reporting date, trading in our Class A shares remains halted. There is still no clarity on when and whether trading may be resumed. The trading on the Moscow Exchange continues, however the international settlement systems remain closed for trading in rubles and in any securities of Russian businesses, and it is currently not possible for trades to settle between shareholders that acquired our shares on Nasdaq and investors on the Moscow Exchange. The liquidity of our shares remains limited to the number of shares held in the Russian National Stock Depository (NSD) system. The situation has been further complicated by the sanctions that have been imposed on the NSD and the impact such sanctions have had on the relationships within settlement systems. We continue to review different options to find a workable solution for our shareholders to trade our shares.
On April 28, 2022, Yandex announced that its principal Russian operating subsidiary, Yandex LLC, has reached an agreement in principle with VK to sell Yandex’s news aggregation platform and infotainment service Zen. Definitive binding documentation has not yet been signed. The transaction would be subject to the approval of Russian Federal Anti-Monopoly Service (FAS).
On June 23, 2022, Arkady Volozh, the company’s co-founder, stepped down with immediate effect from his positions as Executive Director and Chief Executive Officer of Yandex N.V. and from his board and executive positions with its international subsidiaries. As the settlor of a trust which holds Class B shares in the Company for the benefit of his family, Mr. Volozh has given an irrevocable undertaking to the trustee not to instruct the trustee as to how to vote such Class B shares for so long as Arkady remains subject to sanctions. Pursuant to the terms of the trust, the trustee will vote such shares on all matters proposed to the shareholders in accordance with the recommendations of the independent members of the Board of Directors.
On June 22, 2022, Yandex announced that its 2022 Annual General Meeting of Shareholders (AGM) will be held later this year. The date will be communicated in due course.
In June 2022, Yandex announced that it has completed its purchase of 93.2% in aggregate principal amount of its $1.25 billion 0.75% Convertible Notes due 2025 (the “Notes”) pursuant to a Purchase Agreement dated June 15, 2022. Following the amendment of the terms of the Notes made on June 10, 2022, Yandex also has a call option to redeem all of the remaining Notes pursuant to certain conditions, and Yandex anticipates that all of such remaining Notes will either be purchased or redeemed on or prior to September 12, 2022.
Neither Yandex N.V. nor any of its subsidiaries is a target of sanctions in the United States, European Union, Switzerland or United Kingdom, and the Yandex group is not owned or controlled by any persons who have been designed under such sanctions. Yandex continues to closely monitor developments in this regard.
Consolidated Results
The following table provides a summary of our key consolidated financial results for the three and six month periods ended June 30, 2021 and 2022:
In RUB millions
Three months ended June30,
Six months ended June30,
2021
2022
Change
2021
2022
Change
Revenues
81,402
117,748
45%
154,538
223,758
45%
Ex-TAC revenues
75,171
110,412
47%
142,906
210,276
47%
Income/(loss) from operations
(4,723)
8,746
n/m
(4,990)
(3,688)
-26%
Adjusted EBITDA
5,780
25,694
345%
16,801
26,965
60%
Net income/(loss)
(4,664)
8,056
n/m
(7,884)
(4,981)
-37%
Adjusted net income
1,012
13,134
n/m
4,020
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