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]
Yandex(YNDX) - 2023 Q2 - Quarterly Report