Yandex N.V. (NASDAQ:YNDX) Q1 2020 Results Conference Call April 28, 2020 8:00 AM ET Company Participants Yulia Gerasimova - Head of Investor Relations Tigran Khudaverdyan - Deputy Chief Executive Officer Daniil Shuleyko - Chief Executive Officer of Yandex.Taxi Greg Abovsky - Chief Operating and Chief Financial Officer Arkady Volozh - Founder and Chief Executive Officer Vadim Marchuk - Vice President of Corporate Development Yevgeny Senderov - Chief Financial Officer of Yandex, Taxi Conference Call Particip ...

Revenue Structure - Yandex's revenue is broken down into Yandex Properties Online Ad Revenues, Advertising Network Online Ad Revenues, and Other Revenues[2] - Starting in Q1 2016, the company no longer provides a breakdown of online ad revenues into text-based and display revenues, but continues to present online advertising revenues from Yandex properties and revenues from its Ad Network separately[4] Traffic Acquisition Costs (TAC) - Partner TAC is presented as a percentage of Ad Network revenue, while Distribution TAC is presented as a percentage of online advertising revenues from Yandex websites[16] - In Q1'14, Partner TAC was 1,039 MM RUB, and Distribution TAC was 1,149 MM RUB[15] - In Q1'20, Partner TAC was 1,740 MM RUB, and Distribution TAC was 1,740 MM RUB[15] Costs - Total Cost of Sales (COS) in Q1'20 was 16,235 MM RUB, representing 35% of revenue[23] - Product Development (PD) expenses in Q1'20 totaled 7,928 MM RUB, which is 17% of revenue[23] - Selling, General & Administrative (SG&A) expenses in Q1'20 were 13,542 MM RUB, accounting for 29% of revenue[23] - Depreciation & Amortization (D&A) in Q1'20 amounted to 4,010 MM RUB, or 9% of revenue[23] Segment Performance - Search and Portal revenue in Q1'20 grew 11% year-over-year to 30,126 MM RUB[24] - Taxi (Ride-hailing & FoodTech) revenue in Q1'20 increased 50% year-over-year to 11,422 MM RUB[24] - Classifieds revenue in Q1'20 grew 35% year-over-year to 1,488 MM RUB[24] - Media Services revenue in Q1'20 increased 95% year-over-year to 1,433 MM RUB[24]

TABLE OF CONTENTS YANDEX N.V. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS Table of Contents | --- | --- | --- | --- | --- | |-------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

Yandex Morgan Stanley TMT Conference March 2020 Forward Looking Statement Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These include statements regarding the anticipated development of the internet search and the online advertising markets, the planned growth of our business, our anticipated revenues and capital. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be consi ...

Financial Data and Key Metrics Changes - Full year revenues grew 39% year-on-year excluding Yandex.Market, with consolidated revenue growth of 33% year-on-year in Q4 [7][16] - Adjusted net income in Q4 was down 22% year-on-year, primarily due to increased losses from equity method investments related to Yandex.Market [19] - Total online advertising revenues increased 16% year-on-year, with ex-TAC revenues up 38% compared to Q4 of 2018 [16][20] Business Line Data and Key Metrics Changes - Search and Portal revenues grew 16.2% year-on-year, with adjusted EBITDA margin at 43.8%, down 140 bps compared to a year ago [20] - Taxi segment revenues grew 72% year-on-year, driven by solid growth in ride-hailing and FoodTech, with ride-hailing GMV annual run rate at $6.2 billion [12][21] - Media Services revenue grew 96% year-on-year, mainly reflecting growth in subscription services and video advertising [22] Market Data and Key Metrics Changes - Mobile search share reached 54.6% on Android, up 160 basis points from September and 520 bps from December 2018 [9] - Zen's annual revenue run rate reached RUB8.8 billion, growing 49% year-on-year, with a daily audience of 13.4 million users [10] - Classifieds revenue grew 45% year-on-year, driven by listing fees and value-added services [21] Company Strategy and Development Direction - The company aims to continue focusing on the development of Zen and expects its revenues to grow at a similar pace [10] - Investments in self-driving technology are ongoing, with a focus on enhancing software and hardware capabilities [14] - The company is optimistic about the impact of new regulations mandating the installation of Russian software on mobile devices, which could benefit domestic players [9][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining market share despite competition, emphasizing the importance of product quality and technology [36] - The company expects ruble-based revenues to grow between 22% to 26% for the full year 2020 compared to 2019 [24] - Management noted that the Media Services segment is expected to continue incurring losses in 2020, similar to 2019 levels [70] Other Important Information - The company ended the quarter with approximately RUB88.3 billion in cash and cash equivalents [23] - A total of 460,000 Class A shares were repurchased as part of the share repurchase program [24] Q&A Session Summary Question: Key drivers of the slowdown in ad partner revenue - Management noted a mix shift in partners and a decrease in traffic received by partners, leading to declining absolute revenues from the ad network [27] Question: Impact of new legislation on market share and TAC - Management expects positive impacts from the legislation but noted it is too early to determine specific effects [34] Question: Trends in advertising sectors at the beginning of 2020 - Management observed continued weakness in the apparel segment and slower growth in finance, insurance, and real estate sectors [39] Question: Contribution of corporate taxi rides to revenue growth - Approximately 8 percentage points of revenue growth was attributed to the growth in B2B taxi rides [42] Question: Update on Yandex.Market partnership with Sberbank - Management expressed satisfaction with the performance of the joint venture and emphasized its exclusivity for e-commerce activities [53] Question: Margins of different segments, particularly in Taxi - The ride-hailing segment's margins are higher when excluding the loss-making FoodTech component [56]

Yandex N.V. (NASDAQ:YNDX) Q3 2019 Results Earnings Conference Call October 25, 2019 8:00 AM ET Company Participants Katya Zhukova - Investor Relations Arkady Volozh - Founder and Chief Executive Officer Tigran Khudaverdyan - Deputy Chief Executive Officer Greg Abovsky - Chief Operating and Chief Financial Officer Conference Call Participants Lloyd Walmsley - Deutsche Bank Cesar Tiron - Bank of America Miriam Adisa - Morgan Stanley Slava Degtyarev - Goldman Sachs Masha Kahn - HSBC Vladimir Bespalov - VTB Cap ...

Financial Data and Key Metrics Changes - In Q2 2019, consolidated revenue grew by 41% year-over-year, marking the fifth consecutive quarter of over 40% growth for Yandex [8][14] - Online advertising revenues, excluding Yandex.Market, increased by 21% year-over-year [14] - Adjusted net income rose by 16% year-over-year, with an adjusted net income margin of 14.1% [16] Business Line Data and Key Metrics Changes - Search and Portal revenues increased by 21% year-on-year, with adjusted EBITDA growing by 18% [17] - The Taxi segment saw a remarkable 117% year-on-year revenue growth, with adjusted EBITDA turning profitable at RUB 423 million [10][11] - Yandex.Eats, the food delivery service, reported over 600% revenue growth year-on-year [12] Market Data and Key Metrics Changes - The overall mobile surcharge surpassed 50% for the first time, averaging 58.1% in June, up 400 basis points year-on-year [9] - The number of rides in the Taxi segment increased by 49% year-on-year, with significant growth in both mature cities and regions [11] - Revenues from Other Bets and Experiments reached RUB 3.4 billion, a 203% increase year-on-year [20] Company Strategy and Development Direction - Yandex is focusing on enhancing its voice assistant, Alice, and integrating it into various platforms, including smart home devices [9][10] - The company is committed to expanding its Taxi services into regional markets and improving service quality through technology [11][12] - Yandex is investing in its cloud services, viewing it as a long-term opportunity despite slower market development compared to the U.S. [71][72] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging advertising market but expressed confidence in continued growth in online advertising due to a shift towards digital [8][14] - The company expects consolidated revenue growth, excluding Yandex.Market, to be between 32% and 36% year-over-year for the upcoming period [22] - Management emphasized the importance of safety, earnings for drivers, and affordability in the evolving regulatory environment for the Taxi segment [78][79] Other Important Information - Yandex ended the quarter with approximately RUB 75 billion in cash and cash equivalents, excluding Yandex.Market [22] - The company is actively working on alternatives for its headquarters lease, which expires in 2021 [68] Q&A Session Summary Question: Can you elaborate on the deceleration in CPC growth in the core search business? - Management explained that the focus is on driving higher returns for advertisers, which may lead to lower CPCs but higher paid clicks [25] Question: What is the current GMV run rate for the Taxi segment? - Management did not disclose the GMV but noted that the Taxi segment revenues increased by 117% in Q2 [29][30] Question: Are you seeing cannibalization between taxi rides and car-sharing? - Management acknowledged potential cannibalization but emphasized the goal of promoting a sharing economy [34] Question: What are the drivers behind the acceleration in media services growth? - The rollout of Yandex.Plus subscriptions and co-branded cards with banks were highlighted as key growth drivers [58] Question: How is the competitive landscape evolving in the cloud business? - Management stated that Yandex is a clear leader in technology within the Russian market, with significant potential for growth [71][72]