Yandex N.V. / Key word(s): Quarter Results/Quarter Results
Yandex Announces Fourth Quarter and Full-Year 2022 Financial Results
15.02.2023 / 13:00 MSK
The issuer is solely responsible for the content of this announcement.
Yandex Announces Fourth Quarter and Full-Year 2022 Financial Results MOSCOW and AMSTERDAM, the Netherlands, February 15, 2023 -- Yandex (NASDAQ and MOEX: YNDX), a Dutch public limited company and one of Europe's largest internet businesses, today announced its unaudited financial results for the fourth quarter and the full year ended December 31, 2022. Q4 and FY 2022 Financial and Operational Highlights1,2 | | | | | | | | In RUB millions | | Three months ended December 31 | Twelve months ended December 31, | | | 2021 | 2022 | Change | 2021 | 2022 | Change | | Total Revenues | 110,328 | 164,778 | 49% | 356,171 | 521,699 | 46% | | Total Adjusted EBITDA | 9,720 | 17,173 | 77% | 32,143 | 64,140 | 100% | Total Group | Total Adjusted EBITDA margin, % | 8.8% | 10.4% | 1.6 pp | 9.0% | 12.3% | 3.3 pp | | Net income/(loss) | (2,861) | 7,055 | n/m | (14,653) | 47,615 | n/m | | Including one-off non-cash gains as a result of the News and Zen deconsolidation and restructuring of convertible debt | - | - | n/m | - | 47,356 | n/m | | Adjusted Net Income | 2,645 | 747 | -72% | 8,005 | 10,765 | 34% | | Share of Russian search market, % | 60.2% | 62.6% | 2.4 pp | 59.8% | 61.9% | 2.1 pp | | Search share on Android, % | 59.2% | 62.0% | 2.8 pp | 59.2% | 61.4% | 2.2 pp | | Search share on iOS, % | 44.0% | 48.0% | 4.0 pp | 42.8% | 47.6% | 4.8 pp | Search and | Revenues | 47,258 | 69,680 | 47% | 162,715 | 224,669 | 38% | Portal | Ex-TAC revenues | 39,326 | 56,978 | 45% | 133,755 | 187,079 | 40% | | Adjusted EBITDA | 23,921 | 36,048 | 51% | 80,735 | 116,877 | 45% | | Adjusted EBITDA margin, % | 50.6% | 51.7% | 1.1 pp | 49.6% | 52.0% | 2.4 pp | | Revenues | 52,590 | 85,732 | 63% | 166,459 | 260,787 | 57% | E-Commerce, Mobility | GMV of Mobility3 | 174,729 | 218,427 | 25% | 588,846 | 762,848 | 30% | and Delivery | GMV of E-commerce4 | 58,908 | 112,098 | 90% | 160,227 | 307,711 | 92% | | GMV of other O2O services5 | 41,965 | 66,660 | 59% | 126,499 | 192,130 | 52% | | Total Adjusted EBITDA | (7,262) | (10,557) | 45% | (30,167) | (19,058) | -37% | Plus and Entertainment Services | Yandex Plus subscribers6, MM | 11.6 | 19.3 | 66% | 11.6 | 19.3 | 66% |
(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 70.3375 to $1.00, the official exchange rate quoted as of December 31, 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 and Delivery Club 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 and Yandex Fuel services, the value of orders, delivered through the Yandex Eats and Delivery Club Food Delivery services, Lavka Israel, and several other smaller O2O experiments, including VAT.
(6) Starting from June 2022 we made several adjustments to our methodology of subscribers calculation, in particular: included the mobile operators’ subscribers who do not have Yandex account, and improved the quality of counting unique users who have multiple Plus subscriptions. As a result previous numbers for 2021-2022 were restated.
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 expectations 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 November 25, 2022, Yandex N.V. announced that the Board of Directors had commenced a strategic process to review options to restructure the Yandex Group’s ownership and governance. A special committee of the Board has been charged with exploring a variety of potential scenarios and steps, including the development of the international divisions of certain services (including self-driving technologies, cloud computing, data labeling, and ed-tech) independently from Russia, as well as divestment of Yandex N.V.’s ownership and control of all other businesses in the Yandex Group (including search and advertising, mobility, e-commerce, food-delivery, delivery, entertainment services and others in Russia and international markets), including transferring certain elements of governance to management. Any corporate restructuring will be subject to shareholder approval.
- In January 2023, Yandex reported that certain fragments of its program code have been discovered in the public domain. The published fragments of the code are outdated and differ from the version currently used by its services, while some of the published fragments were never actually used in operations. The company is taking this matter extremely seriously and has initiated a thorough investigation into the cause, content and implications of the leak. Based on the r
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