YANDEX N.V. EquityStory.RS, LLC-News: Yandex N.V. / Key word(s): Quarter Results/Quarter Results Yandex Announces Third Quarter 2021 Financial Results 2021-10-27 / 13:00 MSK The issuer is solely responsible for the content of this announcement.
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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 USD1.00, 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
-- On August 30, 2021, Yandex entered into a Framework Agreement with Uber to restructure their jointventures, MLU B.V. and Yandex Self-Driving Group B.V. Under this agreement, for total consideration of USD1.0billion in cash, Yandex acquires from Uber its entire 18.2% equity interest in SDG, an additional 4.5% equityinterest in MLU and Uber's 29% indirect interest in Yandex.Eats, Yandex.Lavka and Yandex.Delivery (after they aredemerged from the MLU). Uber has also granted to Yandex an option to acquire Uber's remaining 29% equity interestin the newly restructured MLU (which will focus on mobility businesses) during the two-year period at an initialexercise price of USD1.8 billion (subject to agreed increases to approximately USD2.0 billion).
-- Yandex repurchased 581,164 Class A shares in open market repurchases in Q3 2021, for total considerationof USD46 million, as part of the Company's ongoing share repurchase program. We intend to hold such shares intreasury for use under the Yandex equity incentive plan. 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:
-- RUB 134.6 billion (USD1,850.1 million) on a consolidated basis
-- Of which RUB 14.1 billion (USD193.3 million) is related to Taxi segment
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