Group 1 - The core viewpoint of the article highlights significant adjustments in the overseas holdings of domestic private equity firms, particularly focusing on the changes in the portfolio of Jinglin Asset Management [1][2][3] Group 2 - Jinglin Asset's top holdings in US stocks as of the end of Q2 2025 include Meta, which accounts for 25.46% of its portfolio, with a market value exceeding $730 million [2] - The total value of Jinglin Asset's US stock holdings reached $2.873 billion, approximately 20.6 billion RMB, indicating a substantial shift towards internet companies [2] - The firm has sold off several major tech stocks, including Apple, UnitedHealth Group, Regeneron Pharmaceuticals, Pfizer, Legend Biotech, and ZTO Express [2] - The new focus on internet stocks is evident, with significant positions in companies like NetEase, Manbang Group, Pinduoduo, Futu Holdings, and 360 DigiTech [2] Group 3 - Jinglin Asset expressed optimism about China's future development, noting a shift in the competitive strength of Chinese companies from being undervalued to attracting global investment [3] - The new generation of Chinese entrepreneurs is seen as having advantages over the previous generation, leveraging a strong supply chain and engineering talent to create aesthetically pleasing products [3] - Dongfang Harbor's overseas fund has also accelerated its portfolio adjustments, reducing holdings in Nvidia, Amazon, and Apple, while increasing positions in Alphabet, Montreal Bank, and initiating purchases of Tesla, Netflix, and Coinbase [3]

随着国际趋势，俄罗斯以及东亚等地区，很多欧美企业离场，这正是中国企业拓展国际市场的重要利好契机，也正因如此， Yandex Ads 在此次 展会中受到了中国很多行业企业的热烈关注。 电商企业首当其冲，跨境交易最爱 " 本土 " 流量引擎。 也许你还不了解 Yandex Ads ，但是如果说 Yandex Ads 是俄罗斯以及一带一路周边俄语国家的 " 超级搜索引擎 + 网络广告窗口 " ，你或许就 能理解这份火爆的原因了。 Yandex Ads 在俄罗斯的搜索市场份额达到七成以上，超越第二名两倍有余，因此，所有拓展俄语市场的跨境商业、 外贸企业，都把 Yandex Ads 当成最好的窗口。 01 亮相国际，就需要这样的建站服务 他来了，他来了，他带着海外的流量到中国来了！ 2025 年 8 月 1 日， Yandex Ads 以参展商身份参与 2025 ChinaJoy 展会。现场异常火热。 （ △ Yandex Ads 展位现场） 展会现场， Yandex Ads 门庭若市，除了一些被展台的科技感、专业感以及美感所吸引的 " 过客 " ，绝大部分还是国内的游戏、电商、旅游、移 动应用公司，以及一些品牌企业， ...

Financial Condition and Profitability - The company operates in early-stage, capital-intensive markets and has not yet achieved profitability, which may adversely affect its financial condition and future prospects[57]. - The need for additional equity or debt financing is critical for the company to support its growth and capital expenditures, especially in the current volatile macroeconomic environment[61]. - The company has identified material weaknesses in its internal control over financial reporting, which could affect the accuracy and timeliness of its financial results[50]. - The company may incur significant costs to execute its remediation plans, although it cannot provide a reasonable estimate of these costs at this time[142]. - The company faces risks related to fluctuations in operating results due to the early stage of business development and market conditions[130]. - The company may face significant additional legal and accounting expenses if it ceases to qualify as a foreign private issuer[168]. Competition and Market Dynamics - Significant competition exists in the AI infrastructure sector, with key competitors including CoreWeave, Crusoe, and Lambda, as well as major cloud providers like Amazon, Google, and Microsoft[59]. - The company anticipates increasing competitive pressure that may lead to pricing pressures, potentially reducing margins and adversely affecting business prospects[75]. - The company may face pricing pressures as the industry evolves, which could reduce margins and adversely affect its business[40]. - The company’s smaller business units, such as Avride and Toloka, operate in evolving industries and face significant competition, which may limit their growth prospects[78]. Growth and Expansion Plans - The company is actively seeking third-party investment for its autonomous vehicles business unit, Avride, to secure necessary financing and partnerships[45]. - The company is expanding its data center footprint, but difficulties in site selection and obtaining reliable power could limit revenue growth and profitability[45]. - The company is significantly investing in expanding compute capacity and data centers worldwide, which requires substantial capital and resources[99]. - The company is actively expanding its global sales team, which has been rapidly growing from a low base, but faces challenges in managing sales processes and achieving expected revenues[71]. - The company is expanding its data center infrastructure, including new facilities in Finland and the U.S., but faces risks related to site selection, construction delays, and supply chain disruptions[87][88]. Customer Acquisition and Retention - The company’s future growth relies on successfully attracting and retaining customers, as well as increasing the portion of business under longer-term contracts[40]. - The company relies heavily on attracting new customers and retaining existing ones to maximize revenues and cash flow, with a focus on securing longer-term contracts[64]. - Insufficient customer demand for the newly built compute capacity could adversely affect future operating results and financial condition[99]. Supply Chain and Operational Risks - The company faces risks related to supply chain disruptions and dependency on a limited number of suppliers for sophisticated hardware, which could impact growth plans[45]. - The company is dependent on a limited number of suppliers, particularly Nvidia for GPU chips, which exposes it to risks related to supply chain disruptions and increased costs[84]. - The company relies on third-party suppliers for essential services like power and network connectivity, exposing it to risks of service failures[100]. - Limitations on power availability may hinder the company's growth plans and ability to service customers adequately[101]. Regulatory and Compliance Issues - Compliance with evolving environmental standards is critical, as failure to do so could result in reputational and legal risks[107]. - Regulatory scrutiny regarding AI tools and data centers is increasing, potentially affecting the company's business model and operations[109]. - The company has implemented measures to comply with economic sanctions and export controls, but risks remain regarding third-party compliance[112]. Cybersecurity and Intellectual Property - Cybersecurity risks are escalating, with potential incidents posing threats to the company's financial condition and reputation[116]. - The company may be involved in intellectual property infringement claims, which could adversely affect its competitive position and financial condition[122]. - The company relies on various legal protections for its intellectual property, but cannot guarantee their effectiveness against unauthorized use[121]. - The company incorporates open-source software in its offerings, which poses risks related to compliance with licensing terms and potential claims from copyright holders[124]. Financial Instruments and Shareholder Dynamics - Approximately 33 million Class A shares were issued to institutional and strategic investors in a private offering in December 2024, with plans to register these shares for resale[160]. - As of March 31, 2025, the CEO and other pre-IPO shareholders held approximately 65% of the voting power of the company's ordinary shares, which may limit minority shareholders' influence[161]. - The company may issue additional equity or equity-linked securities in the future, which could dilute existing shareholders' interests[159]. - The company does not comply with all provisions of the Dutch Corporate Governance Code, which may affect shareholder rights[173]. Market Outlook and Projections - The AI technology market is projected to reach $800 billion by 2030, growing at a 29% CAGR from 2023 to 2030[185]. - The total addressable market for GPU-as-a-Service and AI cloud is estimated to exceed $260 billion by 2030, with a 35% CAGR over the same period[185]. Technological Developments and Innovations - The company's AI cloud platform was completely rebuilt and launched in October 2024, leveraging NVIDIA's accelerated computing platform[196]. - AI Studio, launched in November 2024, is an inference-as-a-service platform that monetizes through a token-based model, offering greater flexibility and cost efficiency[211]. - TractoAI, introduced in Q4 2024, is a serverless platform for scalable AI workloads, optimizing resource allocation and offering a pay-as-you-go model for compute consumption[213]. - The company maintains a close-knit team with over a decade of expertise in designing and operating data centers and cloud-based infrastructure[190]. Business Unit Developments - In 2024, Avride partnered with Uber to deploy autonomous vehicles and delivery robots, launching services in Austin and Dallas, with further expansion planned[228]. - Toloka transitioned to a new technology platform in 2024, expanding its generative AI data offerings and serving a global client base, including Fortune 500 companies[233]. - TripleTen, recognized as the best overall provider of software engineering bootcamps in the US, saw a 149% increase in student enrollment in 2024, reaching over 14,000 students[236].

Core Insights - The Russian e-commerce market has seen significant changes since 2022, with the initial boom period for sellers now giving way to increased competition and higher entry barriers [1][3] - By 2025, Russia remains heavily sanctioned, with over 20,000 sanctions imposed by around 50 countries since the Ukraine conflict began, leading to a systemic shock in the supply chain [1][3] - The trade relationship between China and Russia has flourished, with trade volume reaching a record $244.8 billion in 2024, and e-commerce sales in Russia growing by 28% in 2023 and projected to grow by 41% in 2024 [3][4] E-commerce Growth and Challenges - The number of sellers offering Chinese products in Russia has surged, with a 16-fold increase in the past year, and over 70% of Russians now willing to purchase Chinese goods [4][5] - The competitive landscape in Russian e-commerce has intensified, with new regulations increasing the cost of entry and operational expenses for sellers [12][13] - Payment and logistics remain significant challenges, with sanctions affecting international transactions and increasing costs for shipping and logistics [15][17] Market Dynamics and Consumer Behavior - Russian consumers are increasingly sensitive to prices due to inflation, with essential goods seeing significant price hikes [19][22] - Despite economic challenges, the demand for affordable products remains strong, and e-commerce platforms are adapting to meet this demand by lowering logistics costs for low-priced items [19][25] - The online shopping penetration in Russia has reached 35%, driven by high internet usage and the convenience of e-commerce platforms [11] Long-term Opportunities for Chinese Brands - The Russian market presents long-term opportunities for Chinese brands, especially in filling gaps left by Western brands that have exited [22][26] - Localized strategies, such as establishing domestic stores and adapting products to meet local preferences, are crucial for success in the Russian market [26][27] - The ongoing conflict has created a unique environment where Chinese brands can establish a foothold and build long-term relationships with Russian consumers [27][28]

Financial Performance - In 2023, total revenues reached RUB 800,125 million, a 53.1% increase from RUB 521,699 million in 2022[281] - Service revenues accounted for 82% of total revenues in 2023, increasing by RUB 228,364 million or 53.1% year-over-year[282] - The Search and Portal segment generated revenues of RUB 337,514 million in 2023, up from RUB 226,022 million in 2022[279] - The E-commerce, Mobility, and Delivery segment saw revenues rise to RUB 420,753 million in 2023, compared to RUB 261,246 million in 2022[279] - Revenues from the Search and Portal segment grew by RUB 111,492 million or 49.3% in 2023, contributing approximately 42.2% of total revenues[304] - E-commerce, Mobility and Delivery segment revenues increased by RUB 159,507 million or 61.1% in 2023, representing 52.6% of total revenues[305] - E-commerce revenues surged by RUB 77,592 million or 76.7% in 2023, driven by a normalization of the 1P/3P revenue mix[306] - Mobility revenues rose by RUB 43,941 million or 36.0% in 2023, with the number of rides increasing to 3.6 billion[307] - Revenues from the Plus and Entertainment services segment increased by RUB 35,117 million or 110.5% in 2023, driven by subscription revenue growth[309] Profitability and Expenses - Adjusted EBITDA for 2023 was RUB 96,970 million, reflecting a significant increase from RUB 64,142 million in 2022[279] - Operating costs as a percentage of revenues decreased to 96.4% in 2023 from 97.5% in 2022, indicating improved operational efficiency[276] - Cost of goods sold increased by RUB 35,757 million in 2023, aligning with revenue growth[290] - Product development expenses rose by RUB 30,713 million or 42.5% in 2023, totaling RUB 102,991 million, which is 12.9% of revenues[292] - Sales, general and administrative expenses increased by RUB 95,460 million or 55.5% in 2023, reaching RUB 267,552 million, accounting for 33.4% of revenues[294] - Adjusted EBITDA for the Search and Portal segment increased by RUB 52,447 million or 43.5% in 2023, with a margin of 51.2%[313] - Adjusted EBITDA losses for the E-commerce, Mobility and Delivery segment expanded by RUB 3,967 million or 20.2% in 2023[314] - Adjusted EBITDA loss for Other Business Units and Initiatives increased by RUB 26,950 million or 90.3% in 2023, primarily due to unallocated corporate expenses and investments in FinTech and Yandex SDG businesses[317] Cash Flow and Debt - Net cash provided by operating activities increased by RUB 28,594 million in 2023, attributed to positive trends in advertising revenue and operational efficiency in Mobility services[340] - Net cash used in investing activities amounted to RUB 106,943 million in 2023, primarily due to increased acquisitions of property and equipment[342] - Net cash provided by financing activities was RUB 41,843 million in 2023, including proceeds from debt issuance of RUB 227,151 million[345] - As of December 31, 2023, cash and cash equivalents totaled RUB 96,519 million, with total debt recorded at RUB 141,484 million[333] - Total contractual obligations as of December 31, 2023, amount to RUB 262,840 million, with RUB 130,168 million due within one year[350] - Debt obligations total RUB 141,484 million, with RUB 92,046 million due within one year[350] - Operating lease obligations are RUB 43,766 million, with RUB 13,216 million due within one year[350] - Finance lease obligations total RUB 43,651 million, with RUB 7,087 million due within one year[350] Interest and Other Income - Interest income rose from RUB 4,723 million in 2022 to RUB 5,637 million in 2023, driven by higher applicable interest rates[318] - Interest expense surged to RUB 10,863 million in 2023 from RUB 3,396 million in 2022, mainly due to new debt facilities and increased interest rates[320] - A gain of RUB 9,305 million was recognized from the restructuring of convertible debt, with over 99% of the $1.25 billion Convertible Notes repurchased[322] - The sale of the news aggregation platform and Zen resulted in a gain of RUB 38,051 million, marking a strategic exit from media businesses[323] - Other income increased to RUB 21,514 million in 2023, representing 2.7% of revenues, compared to 1.8% in 2022[325] Economic Outlook and Risks - The Central Bank of Russia forecasts inflation could drop to 4.0-4.5% in 2024, impacting operating expenses and capital expenditures[268] - Foreign exchange fluctuations could result in additional foreign exchange losses/gains of RUB 2,279 million if the U.S. dollar fluctuates by 20% against the Russian ruble[363] - A hypothetical increase in the base interest rate by one percentage point would result in an additional interest expense of approximately RUB 1,061 million annually[366] - The company recorded a loss of RUB 9,369 million in accumulated other comprehensive income for the year ended December 31, 2023, due to translation effects[365] - The fair value of share consideration related to convertible debt was determined based on appropriate valuation techniques amid trading halts[361] - The company has made significant judgments regarding uncertain tax positions, which may impact future income tax expenses[356] - Management's estimates regarding deferred tax assets could materially impact consolidated financial statements if actual events differ from expectations[356] Employee and Management Information - In 2023, the aggregate cash compensation for senior management was RUB 1,607 million ($17.9 million), including RUB 989 million ($11.0 million) paid instead of vested equity awards[379] - The total number of employees increased from 20,850 in 2022 to 26,361 in 2023, with product development staff rising from 10,708 to 13,003[390] - The company granted 131,227 Synthetic Options and Business Unit Equity Awards in 2023, which will vest 25% after one year and the remaining part quarterly over three years[379] - Approximately 3.3 million RSUs were exchanged for cash bonuses in 2022, and an additional 2.7 million RSUs were exchanged in 2023[401][402] - The company has not experienced any work stoppages and believes employee relations are good[391] - The 2016 Equity Incentive Plan allows for equity awards equal to 20% of the aggregate number of Class A and Class B shares outstanding[394] - The company employs several thousand part-time contract workers, which are not included in the total employee count[390] Governance and Oversight - The audit committee oversees the financial reporting processes and audits of consolidated financial statements[382] - The compensation committee is responsible for reviewing and approving compensation structures for directors and management[383] - The investment committee reviews potential corporate transactions, including mergers and acquisitions[392]

Financial Performance - Total revenues for Q4 2023 reached RUB 249,586 million, a 51% increase from RUB 164,778 million in Q4 2022[2] - Adjusted EBITDA for Q4 2023 was RUB 32,903 million, reflecting a 92% increase compared to RUB 17,173 million in Q4 2022[2] - The net loss for Q4 2023 was RUB 6,322 million, compared to a net income of RUB 7,055 million in Q4 2022, marking a significant decline[2] - Adjusted net income for the full year 2023 was RUB 27,411 million, a 155% increase from RUB 10,765 million in 2022[2] - Adjusted net income for the twelve months ended December 31, 2023, was RUB 19,870 million, down from RUB 39,465 million in 2022, indicating a decline of 49.7%[72] - The company experienced a significant decline in net income for the full year, with a 54% drop to RUB 21,775 million from RUB 47,615 million in 2022[83] Revenue Growth - E-commerce revenues grew by 51% year-on-year in Q4 2023, reaching RUB 130,087 million, compared to RUB 85,874 million in Q4 2022[2] - Total revenues increased by 51% year-on-year in Q4 2023, reaching RUB 130,087 million, compared to RUB 85,874 million in Q4 2022[23] - E-Commerce GMV grew by 46% year-on-year in Q4 2023, with total GMV reaching RUB 163,918 million, up from RUB 112,098 million in Q4 2022[24] - Revenues from Plus and Entertainment Services grew by 72% year-on-year in Q4 2023, totaling RUB 20,638 million, compared to RUB 11,984 million in Q4 2022[30] - Classifieds segment revenues increased by 79% year-on-year in Q4 2023, reaching RUB 7,038 million, up from RUB 3,938 million in Q4 2022[32] - Other Business Units and Initiatives revenues rose by 84% year-on-year in Q4 2023, totaling RUB 34,852 million, compared to RUB 18,907 million in Q4 2022[34] Subscriber Growth - The number of Yandex Plus subscribers increased by 58% year-on-year, reaching 30.4 million in Q4 2023[2] - The number of Yandex Plus subscribers reached 30.4 million as of the end of Q4 2023, up 58% from the end of Q4 2022[30] Market Share - The share of the Russian search market increased to 63.8% in Q4 2023, up from 62.6% in Q4 2022[2] - The share of GMV sold by third-party sellers on Yandex Market reached 90% in Q4 2023, up from 81% in Q4 2022[24] Operating Expenses - Total operating expenses increased by 55% in Q4 2023 compared to Q4 2022, primarily due to the cost of revenues and personnel expenses[42] - Total operating expenses as a percentage of revenues increased to 98.8% in Q4 2023 from 96.3% in Q4 2022[42] - Share-based compensation (SBC) expenses rose by 203% in Q4 2023, totaling RUB 14.6 billion, influenced by changes in equity awards and currency fluctuations[45] - The company reported a significant increase in share-based compensation expense, which rose by 339% to RUB 12,388 for the three months ended December 31, 2023[81] Cash Flow and Assets - Cash and cash equivalents as of December 31, 2023, amounted to RUB 96.5 billion (USD 1,076.2 million)[16] - Cash provided by operating activities was RUB 11.9 billion, while cash paid for property and equipment was RUB 38.6 billion in Q4 2023[49] - Cash and cash equivalents increased to RUB 96,519 million as of December 31, 2023, from RUB 83,131 million as of December 31, 2022, a growth of 16.5%[70] - Total current assets increased to RUB 310,895 million as of December 31, 2023, up from RUB 239,934 million as of December 31, 2022, reflecting a growth of 29.5%[70] Liabilities and Equity - Total liabilities rose to RUB 490,336 million as of December 31, 2023, compared to RUB 278,541 million as of December 31, 2022, marking an increase of 76.0%[70] - Total equity attributable to Yandex N.V. decreased to RUB 296,276 million as of December 31, 2023, down from RUB 316,308 million as of December 31, 2022, a decline of 6.3%[70] Impairment and Tax - Income from operations decreased by 52% in Q4 2023 to RUB 2.9 billion, impacted by a RUB 6.3 billion impairment of intangible assets[46] - The effective tax rate for Q4 2023 was 1,403.5%, significantly higher than 57.8% in Q4 2022, influenced by various factors including non-deductible SBC expenses[48] - Impairment of goodwill and other intangible assets increased by 175% in 2023, reaching RUB 7,539 million, compared to RUB 2,740 million in 2022[83] Future Plans - The company plans to return a substantial portion of net proceeds from the sale to shareholders through a share repurchase offer[8] - The company plans to continue focusing on restructuring efforts and managing foreign exchange impacts in the upcoming quarters[83] - The company continues to focus on expanding its operations across various business units, including E-commerce and Mobility[42]

Core Viewpoint - Yandex NV, known as "Russia's Google," is selling its operations in Russia for approximately US$5.2 billion in a cash-and-share transaction, transitioning its core business to a consortium of domestic investors [1][2] Group 1: Company Operations - The sale involves Yandex's core Russian business, which is the primary source of its revenue, and will be led by Russian investors, including Lukoil [1] - Yandex plans to spin off some of its international operations before the sale is finalized [1] Group 2: Market Context - Prior to the Ukraine conflict, Yandex aimed to expand internationally and had a peak valuation of US$30 billion [1] - The ongoing war led to a significant exodus of employees and a distancing of international investors and partners from the company [1] Group 3: Financial Implications - The deal is subject to a mandatory discount of at least 50% to the company's fair value, as mandated by the Russian government for the exit of international companies [2] - Yandex is expected to remain a private entity, with management retaining control over major decisions and strategies [2] Group 4: Government Perspective - Dmitry Peskov, spokesperson for Putin, emphasized the importance of Yandex as a national champion in high tech and its continued operation within Russia [2]

Financial Performance - Revenues for the three months ended September 30, 2023, increased to RUB 204,769 million, a 54% increase from RUB 133,163 million in the same period of 2022[8]. - Net income for the three months ended September 30, 2023, was RUB 7,681 million, a decrease of 83% compared to RUB 45,541 million in the same period of 2022[10]. - The total comprehensive income for the three months ended September 30, 2023, was RUB 3,330 million, a significant decrease from RUB 44,885 million in the same period of 2022[10]. - Net income for the nine months ended September 30, 2023, was RUB 28,097 million, a decrease of 30.6% compared to RUB 40,560 million in 2022[16]. - For the three months ended September 30, 2023, net income allocated for basic shareholders was RUB 739 million ($7.5 million), compared to RUB 39,013 million for the same period in 2022, reflecting a significant decrease[47]. - Net income before income taxes for Q3 2023 was RUB 15,385 million, down from RUB 52,359 million in Q3 2022[123]. Assets and Liabilities - Total assets as of September 30, 2023, amounted to RUB 712,067 million, up from RUB 616,719 million as of December 31, 2022, representing a 15% increase[4]. - Total liabilities increased to RUB 410,079 million as of September 30, 2023, compared to RUB 278,541 million as of December 31, 2022, reflecting a 47% rise[4]. - The company’s total current assets increased to RUB 266,706 million as of September 30, 2023, from RUB 239,934 million as of December 31, 2022, reflecting an 11% increase[4]. - The total shareholders' equity as of September 30, 2023, was RUB 301,988 million, down from RUB 326,661 million as of September 30, 2022, indicating a decrease of about 7.5%[26]. - The total liabilities from loans rose significantly to RUB 88,841 million as of September 30, 2023, compared to RUB 46,134 million as of December 31, 2022, marking an increase of 92.6%[65]. Cash Flow and Investments - Net cash provided by operating activities increased to RUB 58,430 million, representing a 34.9% increase from RUB 43,287 million in the same period of 2022[16]. - Cash flows used in investing activities significantly increased to RUB (67,089) million, compared to RUB (988) million in 2022, indicating a substantial rise in investment expenditures[20]. - Proceeds from issuance of debt rose to RUB 161,468 million, a significant increase from RUB 50,228 million in the previous year, reflecting a 221.5% growth[20]. - The company reported a net cash used in financing activities of RUB 727 million, a recovery from a net cash used of RUB (4,815) million in the same period of 2022[20]. - The total cash and cash equivalents at the end of the period was RUB 86,671 million, a decrease from RUB 101,016 million at the end of the previous year[20]. Operating Costs and Expenses - Operating costs for the three months ended September 30, 2023, were RUB 192,685 million, up from RUB 122,366 million in the same period of 2022, marking a 57% increase[8]. - Cash paid for income taxes increased to RUB 12,546 million, up from RUB 6,989 million in 2022, marking an increase of 80.5%[20]. - Share-based compensation expense rose to RUB 6,472 million in 2023, compared to RUB 4,270 million in 2022, reflecting a 51.5% increase[16]. - The Group's share-based compensation expense related to RSUs for the nine months ended September 30, 2023, was RUB 14,242 million ($146.2 million), slightly up from RUB 13,991 million for the same period in 2022, indicating a growth of 2%[103]. Segment Performance - Search and Portal segment revenues increased to RUB 90,442 million in Q3 2023, up 48% from RUB 61,151 million in Q3 2022[121]. - E-commerce, Mobility and Delivery segment revenues rose to RUB 107,240 million in Q3 2023, a 69% increase from RUB 63,448 million in Q3 2022[121]. - Plus and Entertainment segment revenues grew to RUB 17,402 million in Q3 2023, up 123% from RUB 7,817 million in Q3 2022[121]. - Classifieds segment revenues increased to RUB 7,125 million in Q3 2023, a 111% rise from RUB 3,371 million in Q3 2022[121]. - Total segment revenues reached RUB 241,014 million in Q3 2023, a 64% increase from RUB 146,990 million in Q3 2022[121]. Foreign Exchange and Impairments - The company experienced a foreign exchange loss of RUB (22,378) million in 2023, compared to a gain of RUB (11) million in 2022, indicating a significant negative impact from currency fluctuations[16]. - The company reported an impairment of long-lived assets amounting to RUB 1,199 million in 2023, down from RUB 3,644 million in 2022, indicating improved asset management[16]. - The accumulated impairment loss increased from RUB 1,338 million as of December 31, 2022 to RUB 2,474 million as of June 30, 2023[80]. Other Financial Metrics - The Group's total debt increased to RUB 109,357 million ($1,122.6 million) from RUB 51,191 million as of December 31, 2022, representing a growth of 114%[98]. - The Group's long-term liabilities rose to RUB 1,501 million ($15.4 million) as of September 30, 2023, compared to RUB 401 million as of December 31, 2022, indicating a significant increase of 273%[93]. - The Group accrued RUB 13,600 million ($139.6 million) for contingencies related to non-income taxes and fees as of September 30, 2023, up from RUB 10,913 million as of December 31, 2022, reflecting a 25% increase[97].

Financial Performance - Revenues for Q2 2023 reached RUB 182,495 million ($2,096.8 million), a 55% increase from RUB 117,748 million in Q2 2022[8] - Net income for Q2 2023 was RUB 14,631 million ($168.1 million), compared to RUB 8,056 million in Q2 2022, reflecting an increase of 82%[10] - Net income for the six months ended June 30, 2023, was RUB 20,416 million, a significant recovery from a net loss of RUB 4,981 million in the same period of 2022[16] - For the three months ended June 30, 2023, net income allocated for basic shares was RUB 12,859 million ($147.8 million), a significant increase from RUB 5,211 million in the same period of 2022[42] - The basic net income per ordinary share for the six months ended June 30, 2023, was RUB 56.5, compared to a loss of RUB 13.8 per share in the same period of 2022[24] - Net income before income taxes for Q2 2023 was RUB 19,540 million, compared to RUB 11,788 million in Q2 2022, marking a 65.7% increase[115] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RUB 651,975 million ($7,491.0 million), up from RUB 616,719 million as of December 31, 2022[4] - Total liabilities increased to RUB 356,809 million ($4,099.7 million) as of June 30, 2023, compared to RUB 278,541 million at the end of 2022, marking a 28% rise[4] - The company’s total equity attributable to Yandex N.V. decreased to RUB 295,150 million ($3,391.2 million) as of June 30, 2023, from RUB 316,308 million at the end of 2022[4] - Cash and cash equivalents decreased to RUB 71,885 million ($825.9 million) as of June 30, 2023, down from RUB 83,131 million as of December 31, 2022[4] - The total shareholders' equity as of June 30, 2023, was RUB 295,166 million, reflecting a decrease from RUB 338,178 million as of December 31, 2022[24] Operating Costs and Expenses - Operating costs for Q2 2023 were RUB 171,001 million ($1,964.8 million), up from RUB 109,002 million in Q2 2022, indicating a 57% increase[8] - The company plans to continue investing in product development, with expenses rising to RUB 23,911 million ($274.7 million) in Q2 2023, up from RUB 16,826 million in Q2 2022[8] - Cash paid for income taxes increased to RUB 9,659 million in 2023 from RUB 5,990 million in 2022, representing a 61.0% increase[20] - Share-based compensation expense for the six months ended June 30, 2023, was RUB 2,980 million, down from RUB 3,627 million in the same period of 2022[24] - The Group's total share-based compensation expenses for the three months ended June 30, 2023, were RUB 5,499 ($63.2 million), compared to RUB 6,495 in the same period of 2022[95] Cash Flow and Financing Activities - Operating cash flows provided by operating activities increased by 114.5% to RUB 36,069 million in 2023, compared to RUB 16,827 million in 2022[16] - Proceeds from the issuance of debt rose to RUB 81,681 million in 2023, compared to RUB 46,781 million in 2022, reflecting a 74.5% increase[20] - Net cash used in financing activities increased significantly to RUB 23,197 million in 2023 from RUB 3,935 million in 2022[20] - The company reported a net change in cash and cash equivalents of RUB (11,819) million for the period, compared to RUB (3,531) million in the previous year[20] Segment Performance - Search and Portal segment revenues increased by 53.2% year-over-year to RUB 78,416 million for Q2 2023, with adjusted EBITDA rising to RUB 41,011 million[113] - E-commerce, Mobility and Delivery segment revenues grew by 67.3% year-over-year to RUB 94,951 million for Q2 2023, although adjusted EBITDA showed a loss of RUB 6,119 million[113] - Plus and Entertainment segment revenues surged by 152.5% year-over-year to RUB 15,503 million for Q2 2023, with adjusted EBITDA turning positive at RUB 1,800 million[113] - Classifieds segment revenues increased by 117.8% year-over-year to RUB 5,573 million for Q2 2023, while adjusted EBITDA recorded a slight loss of RUB 46 million[113] - Total segment revenues for Q2 2023 reached RUB 209,334 million, a 64% increase compared to the same period in 2022[113] Impairments and Gains - The company reported a goodwill impairment of RUB 1,136 million ($13.1 million) in Q2 2023[8] - The company reported a foreign exchange gain of RUB 14,878 million in 2023, a turnaround from a loss of RUB 4,231 million in 2022, marking a 470.5% improvement[16] - The company incurred an impairment of long-lived assets amounting to RUB 1,199 million in 2023, down from RUB 3,644 million in 2022, indicating a 67.0% decrease[16] Legal and Contingency Matters - The Group recorded liabilities for pending legal matters amounting to RUB 908 million as of June 30, 2023[84] - The Group has not recognized a liability for legal claims amounting to RUB 813 and RUB 264 ($3) as of December 31, 2022, and June 30, 2023, respectively, due to management's belief that no probable material loss has been incurred[85] - The Group estimated possible contingencies related to non-income taxes and fees to be up to RUB 41,362 ($475.2 million), an increase from RUB 25,232 as of December 31, 2022[88] Strategic Initiatives - The Group's strategic restructuring included transferring services to enhance operational efficiency, such as moving Yandex 360 to Yandex Cloud and Alice voice assistance to Devices and Alice[111] - The Group's principal operations are in Russia, facing challenges due to geopolitical tensions impacting the macroeconomic climate, including currency volatility and increased inflation[86]

Financial Performance - Revenues for the three months ended March 31, 2023, increased to RUB 163,275 million ($2,118.1 million), up from RUB 106,010 million in the same period of 2022, representing a growth of 54%[8] - Net income attributable to Yandex N.V. for Q1 2023 was RUB 4,282 million ($55.5 million), a significant recovery from a net loss of RUB 14,423 million in Q1 2022[8] - Operating costs and expenses for Q1 2023 totaled RUB 161,305 million ($2,092.5 million), up from RUB 118,444 million in Q1 2022, indicating a rise of 36%[8] - The basic net income per Class A and Class B share for Q1 2023 was RUB 11.55 ($0.15), a recovery from a loss of RUB 39.56 in Q1 2022[8] - Yandex's net income for the three months ended March 31, 2023, was RUB 4,282 million ($55.5 million), compared to a net loss of RUB 14,423 million in the same period of 2022[23] - For the three months ended March 31, 2023, the net income allocated for basic shares was RUB 3,870 million ($50.2), a significant recovery from a net loss of RUB 14,423 million in the same period of 2022[40] - The net income before income taxes for Q1 2023 was RUB 7,737 ($100.4), compared to a loss of RUB 10,519 in Q1 2022[103] Assets and Liabilities - Total assets as of March 31, 2023, were RUB 663,138 million ($8,602.5 million), an increase from RUB 616,719 million as of December 31, 2022[5] - Total liabilities increased to RUB 319,610 million ($4,146.1 million) as of March 31, 2023, compared to RUB 278,541 million as of December 31, 2022[5] - The company’s total shareholders' equity as of March 31, 2023, was RUB 343,528 million ($4,456.4 million), up from RUB 338,178 million at the end of 2022[5] - The total shareholders' equity as of March 31, 2023, was RUB 343,528 million, an increase from RUB 338,178 million as of December 31, 2022[23] - As of March 31, 2023, total debt increased to RUB 71,564 million ($928.4) from RUB 51,191 million as of December 31, 2022, representing an increase of 39.7%[80] Cash Flow - The company reported a net cash provided by operating activities of RUB 22,519 million ($292.2 million) for Q1 2023, a turnaround from a cash used of RUB 4,049 million in Q1 2022[15] - Yandex reported net cash provided by financing activities of RUB 19,570 million ($253.9 million) for the three months ended March 31, 2023, compared to a net cash used of RUB 3,532 million in the same period of 2022[20] - Cash and cash equivalents rose to RUB 119,398 million ($1,548.9 million) as of March 31, 2023, compared to RUB 83,131 million as of December 31, 2022, reflecting a growth of 43.6%[5] - Cash and cash equivalents increased from RUB 83,131 million as of December 31, 2022, to RUB 119,398 million ($1,548.9 million) as of March 31, 2023[41] - Cash and cash equivalents, and restricted cash increased to RUB 120,138 million ($1,558.5 million) at the end of March 31, 2023, up from RUB 86,312 million at the end of March 31, 2022, representing a 39.1% increase[20] Investments and Expenses - The company plans to continue investing in product development, with expenses rising to RUB 22,304 million ($289.3 million) in Q1 2023, up from RUB 19,161 million in Q1 2022[8] - The company paid RUB 6,466 million ($83.9 million) in income taxes during the three months ended March 31, 2023, compared to RUB 2,785 million in the same period of 2022, reflecting a 132.3% increase[20] - Share-based compensation expenses for the three months ended March 31, 2023, amounted to RUB 5,800 million ($75.2), a decrease of 7.4% compared to RUB 6,265 million in the same period of 2022[83] Segment Performance - For the three months ended March 31, 2023, total segment revenues increased to RUB 188,000 ($2,438.8), up from RUB 115,044 in the same period of 2022, representing a growth of approximately 63.4%[101] - The Search and Portal segment generated revenues of RUB 67,545 ($876.2) for Q1 2023, a 54.2% increase from RUB 43,803 in Q1 2022[101] - The E-commerce, Mobility and Delivery segment reported revenues of RUB 88,475 ($1,147.7) for Q1 2023, up from RUB 55,194 in Q1 2022, marking a growth of 60.2%[101] - The Plus and Entertainment segment's revenues rose to RUB 13,356 ($173.3) in Q1 2023, compared to RUB 5,831 in Q1 2022, reflecting an increase of 129.5%[101] - Adjusted EBITDA for the total segments reached RUB 12,516 ($162.4) in Q1 2023, a significant increase from RUB 1,171 in Q1 2022[101] Acquisitions and Debt Management - The company acquired Uber's remaining interest in MLU B.V. for $702.5 million (RUB 57,337) on April 21, 2023, which will be accounted for as an equity transaction[106] - The company repaid RUB 20,000 of loan principal in May 2023 and received additional loan proceeds of RUB 34,000 to finance operating activities[105] - The Group completed the repurchase of over 99% of its 0.75% convertible notes due March 3, 2025, as part of its debt restructuring strategy[39] Other Financial Metrics - The Group's foreign exchange gains increased from RUB 1,672 million to RUB 5,924 million ($76.8) for the three months ended March 31, 2023[49] - The allowance for current expected credit losses on trade receivables increased from RUB 3,344 million to RUB 4,745 million, reflecting a rise of 42%[44] - The Group's past due receivables exceeding one year amounted to RUB 2,595 million ($33.7) as of March 31, 2023[44] - The Group's accrued liabilities for contingencies related to non-income taxes, including penalties and interest, totaled RUB 11,839 million ($153.6) as of March 31, 2023[79]