Yandex(YNDX) - 2023 Q3 - Quarterly Report

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].