Yandex N.V.
Yandex Announces Fourth Quarter and Full-Year 2023 Financial Results
15-Feb-2024 / 13:00 MSK
The issuer is solely responsible for the content of this announcement.
Yandex Announces Fourth Quarter and Full-Year 2023 Financial Results AMSTERDAM, the Netherlands, February 15, 2024 -- 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 ended December 31, 2023. Q4 and FY 2023 Financial and Operational Highlights1,2 | | | | | | | | In RUB millions | | Three months ended December 31 | Twelve months ended December 31 | | | 2022 | 2023 | Change | 2022 | 2023 | Change | | Total Revenues | 164,778 | 249,586 | 51% | 521,699 | 800,125 | 53% | | Total Adjusted EBITDA | 17,173 | 32,903 | 92% | 64,140 | 96,970 | 51% | Total Group | Total Adjusted EBITDA margin, % | 10.4% | 13.2% | 2.8 pp | 12.3% | 12.1% | -0.2 pp | | Net income/(loss) | 7,055 | (6,322) | n/m | 47,615 | 21,775 | -54% | | Adjusted Net Income | 747 | 11,829 | n/m | 10,765 | 27,411 | 155% | | Share of Russian search market, % | 62.6% | 63.8% | 1.2 pp | 61.9% | 63.4% | 1.5 pp | | Search share on Android, % | 62.0% | 63.5% | 1.5 pp | 61.4% | 63.0% | 1.6 pp | | Search share on iOS, % | 48.0% | 51.2% | 3.2 pp | 47.6% | 49.9% | 2.3 pp | Search and | Revenues | 69,859 | 101,111 | 45% | 226,022 | 337,514 | 49% | Portal | Ex-TAC revenues | 56,434 | 80,962 | 43% | 186,455 | 274,946 | 47% | | Adjusted EBITDA | 36,866 | 50,205 | 36% | 120,503 | 172,950 | 44% | | Adjusted EBITDA margin, % | 52.8% | 49.7% | -3.1 pp | 53.3% | 51.2% | -2.1 pp | | Revenues | 85,874 | 130,087 | 51% | 261,246 | 420,753 | 61% | E-Commerce, Mobility | GMV of Mobility3 | 218,427 | 326,977 | 50% | 762,848 | 1,104,874 | 45% | and Delivery | GMV of E-commerce4 | 112,098 | 163,918 | 46% | 307,711 | 503,385 | 64% | | GMV of other O2O services5 | 66,660 | 104,103 | 56% | 192,130 | 330,566 | 72% | | Total Adjusted EBITDA loss | (10,542) | (2,209) | n/m | (19,644) | (23,611) | 20% | Plus and Entertainment Services | Yandex Plus subscribers, MM | 19.3 | 30.4 | 58% | 19.3 | 30.4 | 58% |
(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 89.6883 to $1.00, the official exchange rate quoted as of December 31, 2023 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 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 food delivery services, 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 expectations at this stage. We aim to remain transparent about the current performance. Corporate and Subsequent Events
- On February 5, 2024, Yandex N.V. announced that it has entered into a definitive agreement with a purchaser consortium to sell all of the Yandex group’s businesses in Russia and certain international markets. The businesses being sold represented more than 95% of the group’s consolidated revenues in 2023, and approximately 95% of the group’s consolidated assets and employees.
The total consideration for the sale will be RUB 475 billion (approximately USD 5.2 billion as at the date of the announcement), subject to adjustments and payable in a combination of cash and Class A shares of Yandex N.V. where at least 50% of the consideration will be payable in cash. The consideration value reflects a mandatory discount of at least 50% to “fair value”, as currently imposed as a condition to the required approval by the Government Commission for the sale of Russian assets by parent companies that are incorporated in countries considered by the Russian government to be “unfriendly”, including the Netherlands. A portion of the net cash consideration (after adjustments, applicable taxes and other expenses) will be retained to finance the development of certain retained international businesses, with a substantial proportion of such net proceeds to be returned to our shareholders, which we currently expect to be by way of a share repurchase offer.
The transaction has been unanimously approved by the Board of Directors of Yandex N.V. and remains subject to certain conditions precedent, including receipt of required regulatory approvals and our shareholder approval, including a separate approval of our Class A shareholders. Our Extraordinary General Meeting and Class A Meeting are scheduled on March 7, 2024. It is expected that the initial closing pursuant to the transaction will take place in the first half of 2024.
Following the completion of the transaction Yandex N.V. will retain a portfolio of international businesses and other non-Russian assets, including four early-stage technology businesses: (i) Nebius AI, (ii) Toloka AI, (iii) Avride, and (iv) TripleTen. Upon completion of the proposed transaction, we intend to publish pro forma financial information for the Company and the retained businesses, giving effect to the divestment.
- Neither Yandex N.V. nor any of its group companies 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 designated under such sanctions. In July 2023, our “Yandex Pay” subsidiary was designated in Canada; such designation does not apply to Yandex N.V. or its other group companies or operations. Yandex continues to closely monitor developments in this regard.
Impact of the current geopolitical crisis Ongoing geopolitical tensions and their impact on the Russian and global economy have created a challenging environment for our business, team and shareholders. These developments have adversely impacted (and may in the future materially adversely impact) the macroeconomic climate in Russia, resulting in volatility of the ruble, including significant devaluation, currency controls, increased interest rates and inflation, and a potential contraction in consumer spending, as well as the withdrawal of foreign businesses and suppliers from the Russian market. In addition, laws or regulations may be adopted that may adversely affect our non-Russian shareholders and the value of the shares they hold in our company. We provided detailed information on our risk exposure and possible adverse impacts on our businesses in our Annual Report on Form 20-F for the year ended December 31, 2022, which was filed on April 20, 2023. We continue to provide services to our users and partners with no interruptions. We are taking appropriate measures to consider our capital allocation and budget appropriately during this period of uncertainty, while remaining committed to continue investing in the development of our key businesses and services. We are closely monitoring sanctions and export control developments as well as the macroeconomic climate and consumer sentiment in Russia and we are assessing contingency plans to address potential developments. Our Board and management are focused on the wellbeing of our al |
