Yandex Announces Second Quarter 2012 Financial Results
MOSCOW AND THE HAGUE, July 31, 2012, Yandex (NASDAQ: YNDX), the leading internet company in Russia operating the country’s most popular search engine and most visited website, today announced its unaudited financial results for the quarter ended June 30, 2012.
Q2 2012 Financial Highlights
- Revenues of RUR 6.8 billion ($207.2 million1), up 50% compared with Q2 2011
Ex-TAC revenues2 (excluding traffic acquisition costs) up 45% compared with Q2 2011
- Income from operations of RUR 2.2 billion ($68.4 million), up 63% compared with Q2 2011
- Adjusted EBITDA3 of RUR 3.1 billion ($93.5 million), up 60% compared with Q2 2011
- Operating margin of 33%
- Adjusted EBITDA margin2 of 45%
Adjusted ex-TAC EBITDA margin2 of 54%
- Net income of RUR 2.0 billion ($60.4 million), up 76% compared with Q2 2011
- Adjusted net income3 of RUR 2.1 billion ($63.0 million), up 64% compared with Q2 2011
- Net income margin of 29%
- Adjusted net income margin2 of 30%
- Adjusted ex-TAC net income margin2 of 37%
"Yandex delivered 50% growth in the top-line and expanded profitability margins in the second quarter, driven by strong advertiser dynamics, solid search share performance and overall Russian internet market leadership," said Arkady Volozh, Chief Executive Officer of Yandex. "Technology and innovation are the foundation of our company. Along with ongoing search enhancements, we deployed important new mobile, mapping, and cloud-based services that enhance the relevance of Yandex for users and advertisers across our markets."
The following table provides a summary of key financial results for the three months and six months ended June 30, 2011 and 2012.
1Pursuant to SEC rules regarding convenience translations, Russian ruble (RUR) amounts have been translated into U.S. dollars at a rate of RUR 32.8169 to $1.00, the official exchange rate quoted as of June 30, 2012 by the Central Bank of the Russian Federation.
2 This is a non-GAAP financial measure. Please see "Use of Non-GAAP Financial Measures" below for a discussion of how we define this non-GAAP financial measure. You will find a reconciliation of this non-GAAP financial measure to the most directly comparable US GAAP measure in the accompanying financial tables at the end of this release.
3 Adjusted EBITDA and adjusted net income are non-GAAP financial measures. Beginning with Q1 2012, our adjusted EBITDA and adjusted net income include adjustments for the accrual of expense related to the contingent compensation that may be payable to certain employees through November 2013 in connection with our acquisition of the mobile software business of SPB Software. Please see "Use of Non-GAAP Financial Measures" below for a discussion of how we define adjusted EBITDA and adjusted net income. You will find a reconciliation of adjusted EBITDA and adjusted net income to GAAP net income, the most directly comparable US GAAP measure for both non-GAAP measures, in the accompanying financial tables at the end of this release.