Yandex predicts revenue growth to 490-500 billion rubles. in 2022, according to the company’s 2021 US GAAP financials published on February 15. In 2021, the company increased its revenue by 54% to RUB 356.2 billion.
The adjusted net profit of the company for the year fell by 55% to 8 billion rubles, the net loss for the same period exceeded 14.6 billion rubles. In 2020, Yandex’s net profit was 20 billion rubles, and adjusted – 17.9 billion rubles.
According to the results of the IV quarter of 2021, Yandex’s revenue grew by 54% to RUB 110.3 billion, adjusted net profit decreased by 55% to RUB 2.5 billion, and the net loss amounted to RUB 2.8 billion. against a profit of 95 million rubles. in the fourth quarter of 2020
The main part of Yandex’s income was provided by advertising sales, as well as income from the taxi segment, including food delivery services. The company also predicts a two-fold increase in the turnover of e-commerce services, including Yandex.Market, the Yandex.Lavka grocery delivery service, as well as consumer goods ordered from partner stores through the Yandex.Food service.
Advertising revenue of “Yandex” grew in 2021 by 27% to 166.6 billion rubles (without remuneration to partners of 140.9 billion rubles). Adjusted EBITDA decreased by 29% to RUB 32.1 billion.
The revenue of the Taxi segment, which also includes foodtech services, delivery and Yandex.Drive, almost doubled at the end of the year, to 131.5 billion rubles, according to reports. At the same time, a quarter of all trips are made outside of Russia – in the CIS countries, as well as in a number of countries in Northern and Western Europe, Africa and Israel.
Also, more than doubled, by 136%, revenue from Yandex media services, which the company includes the Yandex.Plus subscription service, the Kinopoisk online cinema, the Yandex.Music streaming service, the Yandex. Studio” and “Yandex.Poster”. This division brought Yandex 18.4 billion rubles. According to the company, the growth of this area was ensured by an increase in revenue from subscriptions, as well as the sale of rights to Yandex’s own and exclusive video content.
The decline in profits can be explained by Yandex’s investments in rapidly developing areas, in particular, food delivery and e-commerce services, says Sergei Libin, an analyst at Raiffeisenbank. According to him, in general, the results of Yandex at the end of the year turned out to be higher than analysts’ expectations, and the company’s forecast for revenue in 2022 “can be called realistic.”
Leonid Delitsyn, an analyst at Finam Group, agrees with Libin’s assessment. He added that his forecast for 2021 was 350 billion rubles. revenue, and the company surpassed it by 2%. Among other reasons for the growth, the analyst named the fact that the revenue of the taxi segment grew by 94%, and the number of trips – by 50%. “And this means that Yandex began to earn more on one trip,” said Leonid Delitsyn.
According to Libin, only unpredictable social, economic or political events can prevent the company from receiving 490-500 billion rubles in 2022. Traditionally, the company is known for giving conservative forecasts, adds Delitzin, and shows better results for the period.
If Yandex manages to fulfill the forecast, then the company may overtake the telecom operator MTS in terms of revenue, Delitsyn notes. In 2020, MTS revenue amounted to 476 billion rubles. and according to this indicator, the company was in 17th place in the Forbes rating of the largest private Russian companies. But Sergei Libin doubts such a forecast. According to him, MTS’s revenues in 2021, the results of which the company has not yet made public, grew “quite actively”, and most likely will exceed 500 billion rubles.
Delitsyn sees risks for Yandex’s forecast only in stopping the rapid growth of the online commerce and food tech market in Russia. But since the penetration of such services in the country is still at a low level, this market has “great potential”, in contrast to the taxi segment, where growth is no longer at such an active stage, Delitsyn concluded.