UK markets open in 5 hours 1 minute
  • NIKKEI 225

    28,746.49
    -5.13 (-0.02%)
     
  • HANG SENG

    23,916.01
    -164.51 (-0.68%)
     
  • CRUDE OIL

    71.81
    +3.66 (+5.37%)
     
  • GOLD FUTURES

    1,796.30
    +8.20 (+0.46%)
     
  • DOW

    34,899.34
    -905.06 (-2.53%)
     
  • BTC-GBP

    43,023.71
    +2,082.56 (+5.09%)
     
  • CMC Crypto 200

    1,432.46
    -22.95 (-1.58%)
     
  • ^IXIC

    15,491.66
    -353.54 (-2.23%)
     
  • ^FTAS

    4,020.38
    -146.90 (-3.53%)
     

Yandex Announces Third Quarter 2021 Financial Results

·19-min read

EquityStory.RS, LLC-News: Yandex N.V. / Key word(s): Quarter Results/Quarter Results
27.10.2021 / 13:00 MSK
The issuer is solely responsible for the content of this announcement.

Yandex Announces Third Quarter 2021 Financial Results

 

MOSCOW and AMSTERDAM, the Netherlands, October 27, 2021 -- Yandex (NASDAQ and MOEX: YNDX), one of Europe's largest internet companies and the leading search and ride-hailing provider in Russia, today announced its unaudited financial results for the third quarter ended September 30, 2021

 

Q3 2021 Financial and Operational Highlights 1,2

 

 

 

 

 

 

In RUB millions

 

Three months ended September 30, 

 

 

2020

2021

Change

 

Total Revenues

 59,882

 91,305

52%

Total Group on a

Online Ad Revenues

 33,598

 42,605

27%

like-for-like basis

Online Ad Revenues Ex-TAC

 29,042

 35,730

23%

including

Total Adjusted EBITDA

 14,847

 5,622

-62%

 Yandex.Market

Total Adjusted EBITDA margin, %

24.8%

6.2%

-18.6 pp

in 2020

Net income/(loss)

 21,688

 (3,908)

n/m

 

Adjusted Net Income

 7,506

 1,340

-82%

 

Share of Russian search market, %

59.3%

59.3%

0.0 pp

 

Search share on Android, %

58.7%

58.9%

0.2 pp

Search and Portal3

Revenues

 32,072

 42,713

33%

 

Revenues Ex-TAC

 26,975

 35,075

30%

 

Adjusted EBITDA

 16,781

 20,684

23%

 

Adjusted EBITDA margin, %

52.3%

48.4%

-3.9 pp

 

Revenues

 18,552

 34,011

83%

 

Rides YoY growth in the Ride-hailing service, %

22.0%

44.2%

22.2 pp

 

GMV4 of Ride-hailing

 93,722

 151,987

62%

Taxi (MLU)

GMV of FoodTech

 9,524

 21,206

123%

 

GMV5 of Logistics

 2,317

 7,877

240%

 

Total MLU Adjusted EBITDA

 1,740

 1,223

-30%

 

Ride-hailing Adjusted EBITDA margin (as % of GMV)

3.0%

2.8%

-0.2 pp

 

Total E-Commerce GMV6

 13,307

 41,827

214%

Yandex.Market

Yandex.Market marketplace GMV

 10,145

 31,620

212%

 

Yandex.Market Adjusted EBITDA

 (1,221)

 (11,673)

n/m

Media Services

Yandex Plus subscribers, MM

 5.1

 10.3

102%

Zen

Zen DAU, MM

 18.2

 20.6

13%

 

Share of video as % of time spent on Zen

19.0%

40.0%

21.0 pp

 

(1) Pursuant to SEC rules regarding convenience translations, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 72.7608 to $1.00, the official exchange rate quoted as of September 30, 2021 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, adjusted net income, adjusted net income margin, financial results on a like-for-like basis including Yandex.Market in the prior year period. 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) In Q3 2021 we transferred Yandex.TV from Search & Portal to Other Business Units and Initiatives segment. This change is applied retroactively to all periods presented.

(4) GMV (or gross merchandise value) is the value of orders delivered (and settled by customers) recognized on the date of delivery at their final prices, including VAT.

(5) GMV of Yandex.Delivery (Logistics) is defined as total transaction amounts paid by individual users and B2B clients for a last-mile delivery service, including VAT and excluding any adjustment for consumer discounts and refunds, partner (Driver / Courier) earnings and partner incentives.

(6) E-Commerce GMV is defined as the value of all merchandise sold through our Yandex.Market marketplace and Yandex.Lavka as well as the value of grocery products sold through Yandex.Eats (delivered and paid for) including VAT.

 

Financial outlook

 

Based on recent performance, we currently expect our total group revenues to be between RUB 340 and 350 billion for the full year 2021.

 

We are increasing our Search & Portal ruble-based revenue outlook to high-twenties growth (from mid-twenties previously) for the full year 2021 compared with 2020. The higher-than-expected growth is underpinned by our targeted investments into enhancement of search and advertising technologies, products for small and mid-sized businesses and increases in the search market share on iOS devices. We thus estimate Adjusted EBITDA margin for the full year 2021 to be marginally lower compared with full year 2020, although still over 48%.

 

We also increase our guidance for GMV growth in ride-hailing from the 60% we expected previously to a range of 65% to 70% for the full year 2021 compared to 2020.

 

We expect our total E-Commerce GMV (including GMV of Yandex.Market marketplace, our e-grocery business Yandex.Lavka and grocery-originated GMV of Yandex.Eats) to increase up to 3x for the full year 2021 compared with 2020.

 

Our outlook reflects our current view, based on the trends that we have seen in the first ten months of the year, and may change subject to developments in market conditions, including the economic impact of the coronavirus pandemic and potential further disruptions caused by the health crisis.
 

 

Corporate Events

 

 

 


Consolidated Results

 

The following table provides a summary of our key consolidated financial results for the three and nine months ended September 30, 2020 and 2021, which includes the results of Yandex.Market from July 24, 2020 (the date of consolidation):

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

Revenues

 58,335

 91,305

57%

 146,745

 245,843

68%

Ex-TAC revenues

 53,819

 84,430

57%

 132,715

 227,336

71%

Income/(loss) from operations

 6,258

 (5,684)

n/m

 11,563

 (10,674)

n/m

Adjusted EBITDA

 14,984

 5,622

-62%

 35,580

 22,423

-37%

Net income/(loss)

 21,761

 (3,908)

n/m

 23,445

 (11,792)

n/m

Adjusted net income

 7,521

 1,340

-82%

 14,552

 5,360

-63%

 

The table below provides a summary of our key financial results on a like-for-like basis (including Yandex.Market for the full periods in 2020) for the three and nine months ended September 30, 2020 and 2021:

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

Revenues

 59,882

 91,305

52%

 160,226

 245,843

53%

Ex-TAC revenues

 55,327

 84,430

53%

 145,764

 227,336

56%

Income/(loss) from operations

 5,920

 (5,684)

n/m

 5,434

 (10,674)

n/m

Adjusted EBITDA

 14,847

 5,622

-62%

 31,408

 22,423

-29%

Net income/(loss)

 21,688

 (3,908)

n/m

 20,404

 (11,792)

n/m

Adjusted net income

 7,506

 1,340

-82%

 12,117

 5,360

-56%

 

Our segment disclosure is provided in the Segment financial results section below.

Cash, cash equivalents and term deposits as of September 30, 2021:

*at the exchange rate as of payment date.

 

Segment financial results

 

Search & Portal

 

Our Search and Portal segment includes Search, Geo, Yandex 360, Weather, News, Travel, Alice voice assistant and a number of other services offered in Russia, Belarus and Kazakhstan.

 

Key operational trends:

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

Revenues

32,072

42,713

33%

88,162

117,280

33%

Revenues Ex-TAC

26,975

35,075

30%

72,497

96,252

33%

Adjusted EBITDA

16,781

20,684

23%

42,587

56,094

32%

Adjusted EBITDA margin

52.3%

48.4%

-3.9 pp

48.3%

47.8%

-0.5 pp

 

Revenues increased by 33% and Revenues Ex-TAC increased by 30% year-on-year in Q3 2021. On a two-year stack basis, which we are presenting to provide a clearer picture of our business by smoothing out the effect of the Covid-19 pandemic, the revenues grew by 16% in Q3 2021. The solid growth momentum reflects the robust performance of the core search business, improved search share and mobile monetization as well as strong trends in the Yandex Ad Network on the back of investments in further enhancements of our advertising products, instruments and technologies.

Adjusted EBITDA margin came to 48.4% in Q3 2021 compared with 52.3% in Q3 2020. The year-on-year dynamic was primarily driven by the investments in advertising technologies (including enhancements to the effectiveness of our conversion strategies and development of SMB products) and in product and performance marketing to support the growth of iOS market share, as well as high base effect from the pandemic-related cost cutting measures implemented in 2020.

 

Taxi

 

The Taxi segment includes our mobility businesses, which consist of the (i) Ride-hailing business (including Yandex.Taxi in Russia and 17 other countries across CIS and EMEA, and Uber in Russia and CIS) for both B2C and B2B, (ii) Yandex.Drive, our car-sharing business; (iii) the FoodTech businesses (including Yandex.Eats, our ready-to-eat and grocery delivery service; and Yandex.Lavka, our hyperlocal convenience store delivery service); and (iv) Yandex.Delivery (Logistics), our last mile logistics solution for individuals, SMBs and enterprises.

 

Key operational trends:

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

GMV:

 

 

 

 

 

 

Mobility

 97,052

 156,136

61%

 233,780

 414,118

77%

Ride-hailing

 93,722

 151,987

62%

 226,443

 403,302

78%

Drive

 3,330

 4,149

25%

 7,337

 10,816

47%

Yandex.Delivery (Logistics)

 2,317

 7,877

240%

 4,413

 18,160

312%

FoodTech

 9,524

 21,206

123%

 24,234

 53,654

121%

Total GMV

 108,893

 185,219

70%

 262,427

 485,932

85%

Revenues:

 

 

 

 

 

 

Mobility

 13,697

 22,090

61%

 34,415

 58,670

70%

Ride-hailing

 10,985

 18,632

70%

 28,414

 49,658

75%

Drive

 2,712

 3,458

28%

 6,001

 9,012

50%

Yandex.Delivery (Logistics)

 739

 3,316

349%

 1,544

 7,619

393%

FoodTech

 4,396

 9,840

124%

 10,291

 25,030

143%

Eliminations

 (280)

 (1,235)

341%

 (546)

 (2,625)

381%

Total revenues

 18,552

 34,011

83%

 45,704

 88,694

94%

Adjusted EBITDA:

 

 

 

 

 

 

Mobility

 2,900

 4,785

65%

 4,775

 15,527

225%

Ride-hailing

 2,829

 4,317

53%

 6,644

 14,756

122%

Drive

 71

 468

n/m

 (1,869)

 771

n/m

Yandex.Delivery (Logistics)

 (222)

 (346)

56%

 (407)

 (847)

108%

FoodTech

 (938)

 (3,216)

243%

 (2,698)

 (8,147)

202%

Total Adjusted EBITDA

 1,740

 1,223

-30%

 1,670

 6,533

291%

Adjusted EBITDA margin as % of GMV:

 

 

 

 

 

 

Mobility

3.0%

3.1%

0.1 pp

2.0%

3.7%

1.7 pp

Ride-hailing

3.0%

2.8%

-0.2 pp

2.9%

3.7%

0.8 pp

Drive

2.1%

11.3%

9.2 pp

-25.5%

7.1%

n/m

Yandex.Delivery (Logistics)

-9.6%

-4.4%

5.2 pp

-9.2%

-4.7%

4.5 pp

FoodTech

-9.8%

-15.2%

-5.4 pp

-11.1%

-15.2%

-4.1 pp

Total Adjusted EBITDA as % of GMV

1.6%

0.7%

-0.9 pp

0.6%

1.3%

0.7 pp

 

Taxi segment revenues increased by 83%, with Ride-hailing (including our corporate Taxi business) and Yandex.Lavka as the largest contributors to growth, followed by the Yandex.Delivery (Logistics) business, as well as the growth of car-sharing. Ride-hailing and Drive revenue increased by 70% and 28% respectively, driven by solid growth in rides and even faster growth in GMV. Yandex.Delivery (Logistics) revenue increased by 349% year-on-year and demonstrated acceleration of quarter-over-quarter growth compared to Q2 2021, as a result of continuously increasing demand of last-mile delivery services. FoodTech revenue delivered solid 124% year-on-year growth primarily driven by the growth of Yandex.Lavka on the back of increased demand and new dark stores openings, as well as by the solid performance of Yandex.Eats Grocery; its share reached 22% of Yandex.Eats GMV in Q3. On a two-year stack basis, revenue in Ride-Hailing, Drive and FoodTech increased by 46%, 28% and 235%, respectively (including 108% two-year stack growth for Yandex.Eats).

 

Eliminations related to the Taxi segment represent the eliminations of intercompany revenues between different businesses within the Taxi Group. The increase of 341% in Q3 2021 compared with Q3 2020 was mainly attributed to a higher volume of FoodTech orders fulfilled by our Yandex.Delivery (Logistics) business.

 

Adjusted EBITDA of Taxi was RUB 1,223 million in Q3 2021, down from RUB 1,740 million in Q3 2020. Adjusted EBITDA of the Mobility businesses reached RUB 4,785 million and increased 65% in Q3 2021 compared to Q3 2020, which was however offset by our investments into the rapidly growing Yandex.Lavka and Yandex.Eats (grocery delivery from retail chains in particular) businesses as well as our Logistics services.

 

Yandex.Market

 

The Yandex.Market segment includes our marketplace, price comparison service, and several small experiments.

 

Key operational trends:

 

(7) An active buyer is a buyer who made at least 1 purchase in the last 12 months prior to the reporting date.

(8) An active seller is a seller who made at least 1 sale in the last 1 month prior to the reporting date.

 

The table below presents the financial results of the Yandex.Market segment on a like-for-like basis for the full three and nine months periods ended September 30, 2020 and 2021.

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020 *

2021

Change

2020 *

2021

Change

GMV of Yandex.Market

 10,145

 31,620

212%

 28,920

 75,980

163%

Revenues:

 6,910

 8,662

25%

 20,172

 24,834

23%

     Revenues from sale of goods (1P)

 3,377

 5,795

72%

 10,860

 17,298

59%

     Commission and other marketplace revenues (3P)

 1,367

 1,941

42%

 3,035

 3,582

18%

     CPC revenues9

 2,166

 926

-57%

 6,277

 3,954

-37%

Adjusted EBITDA:

 (1,221)

 (11,673)

n/m

 (5,257)

 (28,079)

n/m

Adjusted EBITDA margin:

-17.7%

-134.8%

-117.1 pp

-26.1%

-113.1%

-87.0 pp

 

* Financial results of Yandex.Market for the three and nine months ended September 30, 2020 were included in Yandex's consolidated financial results on a consolidated basis since July 24, 2020. Yandex's portion of the results of Yandex.Market prior the date of acquisition were recognized in the line item "Loss from equity method investments".

 

(9) CPC revenues are defined as revenues from price comparison services priced on a CPC (cost-per-click) basis and recognized only when a user clicks on product offerings placed by merchants on Yandex.Market. Marketplace revenues (from sales of goods (1P) and commission and other marketplace revenues (3P)) are priced on CPA (cost per action) model.

 

The GMV of Yandex.Market marketplace accelerated to 212% year-on-year in Q3 2021 compared with 144% in Q2 2021. The acceleration was driven by a combination of factors, including audience growth, significant expansion in assortment and logistics infrastructure, swift transition of merchants from CPC to CPA (powered by dropship by seller "DBS" model), product improvement, as well as support from the integration with our Yandex Plus program.

 

Yandex.Market total revenues grew 25% in Q3 2021 compared with Q3 2020. The slower-than-GMV revenue growth is explained by the changes in marketplace revenue mix (increase in the share of 3P GMV to 78% in Q3 2021 compared with 60% in Q3 2020), the decrease of the merchants commission as well as the decline in price comparison revenue (by 57% year-on-year on the back of the conversion of merchants from CPC to our 3P marketplace model). Revenues from sale of goods (1P) grew 72% and were influenced by overall business growth and partially offset by a decrease in 1P as a share of GMV. Commission and other marketplace revenues (3P) increased by 42% driven by the overall growth of 3P GMV, partially offset by the decrease of the merchant commissions and 3P blended take-rates (on the back of the expansion of the DBS model).

 

Adjusted EBITDA loss of the Yandex.Market business was RUB 11.7 billion in Q3 2021, reflecting investments in the growth of our operations, including an expansion of our logistics infrastructure by adding 10 logistics premises, launch of an Express delivery, preparation for the launch of a fashion category as well as targeted marketing campaigns to expand customer base and strengthen our brand's recognition as a multicategory marketplace (including a TV campaign with Yandex Plus).

 

Media Services

 

The Media Services segment includes our subscription service Yandex Plus, Yandex.Music, KinoPoisk, Yandex.Afisha and our production center Yandex.Studio.

 

Key operational trends:

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

Revenues

1,773

4,311

143%

4,906

11,891

142%

Adjusted EBITDA

(1,027)

(1,589)

55%

(2,594)

(4,578)

76%

Adjusted EBITDA margin

-57.9%

-36.9%

21 pp

-52.9%

-38.5%

14.4 pp

 

Media Services revenues grew 143% in Q3 2021 compared with Q3 2020. The increase was primarily driven by the growth of Yandex Plus subscription on the back of the rapid growth of paying members of the Yandex Plus program as well as other revenue streams, including advertising and newly developing licensing revenues (due to increased activities in licensing sales of KinoPoisk Originals and sublicensing of exclusives). The adjusted EBITDA losses of RUB 1.6 billion reflect our investments in content (including original and exclusive content) and marketing to support the growth of the Yandex Plus subscriber base.

 

Classifieds

 

The Classifieds segment includes Auto.ru, Yandex.Realty, Yandex.Jobs, and Yandex Classifieds.

 

 

 

 

 

 

 

 

In RUB millions

Three months ended September 30, 

Nine months ended September 30, 

 

2020

2021

Change

2020

2021

Change

Revenues

1,586

2,078

31%

3,960

5,856

48%

Adjusted EBITDA

495

468

-5%

471

1,581

236%

Adjusted EBITDA margin

31.2%

22.5%

-8.7 pp

11.9%

27.0%

15.1 pp

 

Classifieds revenues increased by 31% in Q3 2021 compared with Q3 2020 and was driven mainly by the increase in revenues from auto dealers' listings, the launch of our auction ...

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting