Yandex: Announces Third Quarter 2021 Financial Results

Moscow / Amsterdam. (yndx) Yandex Group, one of Europe’s largest internet companies and the leading search and ride-hailing provider in Russia, announced its unaudited financial results for the third quarter ended September 30, 2021 – see the PDF file at the bottom of this page.

Financial outlook

Based on recent performance, the Group currently expects its total group revenues to be between RUB 340 and 350 billion for the full year 2021.

The Group is increasing its 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 the 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. Yandex thus estimates Adjusted Ebitda margin for the full year 2021 to be marginally lower compared with full year 2020, although still over 48 percent.

Yandex also increases the guidance for GMV growth in ride-hailing from the 60 percent it expected previously to a range of 65 percent to 70 percent for the full year 2021 compared to 2020.

The Group expects the total E-Commerce GMV (including GMV of Yandex.Market marketplace, the 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.

The outlook reflects the current view, based on the trends that Yandex has 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

  • On August 30, 2021, Yandex entered into a Framework Agreement with Uber to restructure their joint ventures, MLU B.V. and Yandex Self-Driving Group B.V. Under this agreement, for total consideration of USD 1.0 billion in cash, Yandex acquires from Uber its entire 18.2 percent equity interest in SDG, an additional 4.5 percent equity interest in MLU and Uber’s 29 percent indirect interest in Yandex.Eats, Yandex.Lavka and Yandex.Delivery (after they are demerged from the MLU). Uber has also granted to Yandex an option to acquire Uber’s remaining 29 percent equity interest in the newly restructured MLU (which will focus on mobility businesses) during the two-year period at an initial exercise price of USD 1.8 billion (subject to agreed increases to approximately USD 2.0 billion).
  • Yandex repurchased 581,164 Class A shares in open market repurchases in Q3 2021, for total consideration of USD 46 million, as part of the Company’s ongoing share repurchase program. We intend to hold such shares in treasury for use under the Yandex equity incentive plan.

Financial and Operational Highlights (condensed)