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Yandex Announces First Quarter 2020 Financial Results

Written by Customer Service on . Posted in Earnings Releases And Operating Results.

MOSCOW and AMSTERDAM, the Netherlands, April 28, 2020 (GLOBE NEWSWIRE) — Yandex (NASDAQ and MOEX: YNDX), one of Europe’s largest internet companies and the leading search provider in Russia, today announced its unaudited financial results for the first quarter ended March 31, 2020.Q1 2020 Financial Highlights(1)(2)Q1 2020 consolidated financial resultsRevenues of RUB 47.0 billion ($604.7 million), up 26% compared with Q1 2019Net income of RUB 5.5 billion ($70.7 million), up 76% compared with Q1 2019; net income margin of 11.7%Adjusted net income of RUB 5.1 billion ($66.2 million), down 5% compared with Q1 2019; adjusted net income margin of 11.0%Adjusted EBITDA of RUB 12.1 billion ($156.3 million), up 13% compared with Q1 2019; adjusted EBITDA margin of 25.8%Cash, cash equivalents and term deposits as of March 31, 2020:RUB 197.2 billion ($2,536.8 million) on a consolidated basisOf which RUB 30.6 billion ($393.1 million) related to Taxi segmentQ1 2020 Operational and Corporate HighlightsSearchShare of Russian search market, including mobile, averaged 58.1% in Q1 2020, up from 57.0% in Q1 2019 and 57.5% in Q4 2019, according to Yandex.RadarSearch share on Android in Russia was 55.5% in Q1 2020, up from 51.2% in Q1 2019 and 54.3% in Q4 2019, according to Yandex.RadarSearch queries in Russia grew 7% compared with Q1 2019Paid clicks on Yandex’s and its partners’ websites, in aggregate, increased 23% compared with Q1 2019Average cost per click decreased 9% compared with Q1 2019Business Units and ExperimentsNumber of rides in the Taxi service grew 40% year-on-year compared with Q1 2019Number of Media Services subscribers was 4.3 million as of the end of Q1 2020Zen’s daily audience reached 14.6 million users in March 2020, up 57% from March 2019CorporateAs part of its response to the coronavirus pandemic, Yandex has launched the “Helping Hand” project to support medical and social services under which we organize transport for doctors and deliveries of medicine, coronavirus testing kits and other essential goods. We have committed approximately 1.5 billion rubles across various initiatives including a support fund for taxi drivers and couriers, advertising credits to small and medium-sized businesses and our education efforts.Yandex has launched Yandex School, a platform combining all key educational projects of Yandex, offering a full-scale online school for grades 5-11 covering 15 subjects with video broadcasting and class chats.Yandex issued $1.25 billion aggregate principal amount of 0.75% convertible senior notes due 2025.Yandex repurchased 3.5 million Class A shares in Q1 2020, as part of the share repurchase program announced in November 2019.“The year started off well, but by mid-March our markets began to be impacted by the coronavirus outbreak,” said Arkady Volozh, Chief Executive Officer of Yandex. “I am very proud of how fast we mobilized our resources to support our users, our partners and our communities who use our services during this difficult time. We have become the leading destination for our users where they can receive accurate and reliable information, consume educational content, view streaming videos, and order food delivery. We launched our “Helping Hand” project which provides transportation for medical staff and facilitates the delivery of medicine, the provision of coronavirus testing kits and distribution of essential goods. Along with social responsibility our key priority remains to ensure Yandex emerges from this crisis stronger than before as we continue to manage the company for the long term.”“We delivered 26% year-on-year revenue growth in Q1, or 30% on an Ex-TAC basis,” said Greg Abovsky, Chief Operating Officer and Chief Financial Officer of Yandex. “The second quarter is likely to be more challenging for us, and we are focusing on recalibrating our expenses, our pace of investments and allocation of capital between the businesses to ensure that Yandex is well positioned for the long-term. Our strong balance sheet should help us to withstand the short-term challenges, while providing flexibility to invest in strategic projects.”The following table provides a summary of our key consolidated financial results for the three months ended March 31, 2019 and 2020:

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