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Yandex (YNDX) Q4 Earnings Miss Estimates, Revenues Rise Y/Y
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Yandex N.V. (YNDX - Free Report) reported fourth-quarter 2021 adjusted earnings of 4 cents per share, missing the Zacks Consensus Estimate by 76.5%.
Further, the bottom line declined 82.6% year over year.
Revenues were $1.5 billion. In ruble terms, the figure stands at RUB 110.3 billion, which rose 54% on a year-over-year basis.
The reported revenue figure includes the consolidated financial results of Yandex.Market.
Strengthening momentum across the company’s online advertising drove top-line growth. Further, solid growth across the Search, Classifieds, Taxi, Yandex Market and Media Services segments contributed well.
However, the pandemic-induced supply-chain disruptions were concerning.
Total online advertising revenues were RUB 48.4 billion (43.9% of total revenues), reflecting year-over-year growth of 26%.
Taxi revenues, excluding sales of goods, were RUB 32.9 billion (29.9% of total revenues), up 86% on a year-over-year basis, driven by strength in the Yandex.Eats, ride-hailing and logistics businesses.
Other revenues of RUB 11.3 billion (10.2% of total revenues) surged 111% from the prior-year quarter.
Revenues from sales of goods were $17.7 billion (16% of revenues), which grew 74% from the year-ago quarter.
Segments in Detail
Search and Portal: The segment generated RUB 47.9 billion revenues (43.5% of total revenues), up 31% year over year. Notably, its share in the Russian search market was 60.2% in the reported quarter, which expanded 50 basis points (bps) year over year.
Notably, mobile revenues accounted for 57.4% of the company's search revenues. Further, mobile search traffic accounted for 64.4% of total search traffic. This was driven by Yandex’s search share on Android, which was 59.2%, expanding 60 bps from the year-ago quarter.
Taxi: The segment generated RUB 42.9 billion revenues (38.9% of revenues), rising 93% from the year-ago quarter. The impressive year-over-year rise was driven by positive contributions from Yandex Lavka and Yandex Eats, which benefited its FoodTech services in the quarter under review.
An improvement in the ride-hailing business remained a major positive. The number of rides increased 48% from the prior-year quarter. Solid momentum across the mobility business was another positive. Additionally, increasing demand for last-mile delivery services drove the performance of the logistics business, Yandex Delivery.
Classifieds: The segment generated revenues of RUB 2.3 billion (2.1% of revenues), reflecting year-over-year growth of 27%. This was attributed to growing revenues from auto dealers’ listings.
Media Services: The segment generated revenues of RUB 6.5 billion (5.9% of revenues), soaring 125% from the year-ago quarter. This can primarily be attributed to the solid momentum across Yandex.Plus subscription. Also, accelerating licensing, devices and transactional revenues contributed well.
Other Business Units and Initiatives: The segment accounted for revenues of RUB 8.6 billion (7.8% of total revenues), up 87% from the prior-year quarter. This was driven by the robust performance of Yandex’s Zen and Devices businesses. Further, the growing cloud business contributed well.
Yandex Market: The segment accounted for revenues of RUB 10.4 billion (9.5% of total revenues) in the reported quarter, up 21% year over year. The continued momentum across its marketplace business contributed well. Notably, the active buyer number grew 95% year over year to 8.4 million. Solid growth of 192% on a year-over-year basis in the e-commerce GMV remained noteworthy. The active seller number increased 214% year over year to 23.9 thousand. Also, the active buyer number surged 96% year over year to 9.8 million in the reported quarter.
Operating Details
In fourth-quarter 2021, the adjusted net income margin was 2.4%, contracting 580 bps from the year-ago quarter.
Operating expenses were RUB 60.5 billion, which was up 68% from the prior-year quarter. As a percentage of revenues, the figure expanded 450 bps year over year.
The company incurred a loss of RUB 2.6 billion from operations compared with RUB 4.1 billion of operating income.
The company’s total traffic acquisition costs amounted to RUB 7.2 billion, up 21% on a year-over-year basis. As a percentage of revenues, the figure contracted 180 bps year over year to 6.5% in the reported quarter.
Balance Sheet & Cash Flows
As of Dec 31, 2021, cash and cash equivalents were $1.07 billion, down from $1.12 billion as of Sep 30, 2021.
Accounts receivable totaled $586.4 million, increasing from $441.3 million in the previous quarter.
In the fourth quarter, the company generated $45.8 million of cash from operations compared with $30.3 of cash used in operations in the prior quarter.
The company repurchased 645,191 Class A shares in the reported quarter for a total consideration of $50.1 million.
2022 Guidance
For 2022, the company expects total revenues of RUB 490-RUB 500 billion.
It anticipates Search & Portal revenues to grow in the mid-to-high teens from that reported in 2021.
Yandex projects mobility GMV at RUB 700-RUB 720 billion. The company’s e-commerce GMV is expected to double from that reported in 2021.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. It has gained 24.9% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26.9% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 27.2% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.
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Yandex (YNDX) Q4 Earnings Miss Estimates, Revenues Rise Y/Y
Yandex N.V. (YNDX - Free Report) reported fourth-quarter 2021 adjusted earnings of 4 cents per share, missing the Zacks Consensus Estimate by 76.5%.
Further, the bottom line declined 82.6% year over year.
Revenues were $1.5 billion. In ruble terms, the figure stands at RUB 110.3 billion, which rose 54% on a year-over-year basis.
The reported revenue figure includes the consolidated financial results of Yandex.Market.
Strengthening momentum across the company’s online advertising drove top-line growth. Further, solid growth across the Search, Classifieds, Taxi, Yandex Market and Media Services segments contributed well.
However, the pandemic-induced supply-chain disruptions were concerning.
Yandex N.V. Price, Consensus and EPS Surprise
Yandex N.V. price-consensus-eps-surprise-chart | Yandex N.V. Quote
Top-Line Details
Total online advertising revenues were RUB 48.4 billion (43.9% of total revenues), reflecting year-over-year growth of 26%.
Taxi revenues, excluding sales of goods, were RUB 32.9 billion (29.9% of total revenues), up 86% on a year-over-year basis, driven by strength in the Yandex.Eats, ride-hailing and logistics businesses.
Other revenues of RUB 11.3 billion (10.2% of total revenues) surged 111% from the prior-year quarter.
Revenues from sales of goods were $17.7 billion (16% of revenues), which grew 74% from the year-ago quarter.
Segments in Detail
Search and Portal: The segment generated RUB 47.9 billion revenues (43.5% of total revenues), up 31% year over year. Notably, its share in the Russian search market was 60.2% in the reported quarter, which expanded 50 basis points (bps) year over year.
Notably, mobile revenues accounted for 57.4% of the company's search revenues. Further, mobile search traffic accounted for 64.4% of total search traffic. This was driven by Yandex’s search share on Android, which was 59.2%, expanding 60 bps from the year-ago quarter.
Taxi: The segment generated RUB 42.9 billion revenues (38.9% of revenues), rising 93% from the year-ago quarter. The impressive year-over-year rise was driven by positive contributions from Yandex Lavka and Yandex Eats, which benefited its FoodTech services in the quarter under review.
An improvement in the ride-hailing business remained a major positive. The number of rides increased 48% from the prior-year quarter. Solid momentum across the mobility business was another positive. Additionally, increasing demand for last-mile delivery services drove the performance of the logistics business, Yandex Delivery.
Classifieds: The segment generated revenues of RUB 2.3 billion (2.1% of revenues), reflecting year-over-year growth of 27%. This was attributed to growing revenues from auto dealers’ listings.
Media Services: The segment generated revenues of RUB 6.5 billion (5.9% of revenues), soaring 125% from the year-ago quarter. This can primarily be attributed to the solid momentum across Yandex.Plus subscription. Also, accelerating licensing, devices and transactional revenues contributed well.
Other Business Units and Initiatives: The segment accounted for revenues of RUB 8.6 billion (7.8% of total revenues), up 87% from the prior-year quarter. This was driven by the robust performance of Yandex’s Zen and Devices businesses. Further, the growing cloud business contributed well.
Yandex Market: The segment accounted for revenues of RUB 10.4 billion (9.5% of total revenues) in the reported quarter, up 21% year over year. The continued momentum across its marketplace business contributed well. Notably, the active buyer number grew 95% year over year to 8.4 million. Solid growth of 192% on a year-over-year basis in the e-commerce GMV remained noteworthy. The active seller number increased 214% year over year to 23.9 thousand. Also, the active buyer number surged 96% year over year to 9.8 million in the reported quarter.
Operating Details
In fourth-quarter 2021, the adjusted net income margin was 2.4%, contracting 580 bps from the year-ago quarter.
Operating expenses were RUB 60.5 billion, which was up 68% from the prior-year quarter. As a percentage of revenues, the figure expanded 450 bps year over year.
The company incurred a loss of RUB 2.6 billion from operations compared with RUB 4.1 billion of operating income.
The company’s total traffic acquisition costs amounted to RUB 7.2 billion, up 21% on a year-over-year basis. As a percentage of revenues, the figure contracted 180 bps year over year to 6.5% in the reported quarter.
Balance Sheet & Cash Flows
As of Dec 31, 2021, cash and cash equivalents were $1.07 billion, down from $1.12 billion as of Sep 30, 2021.
Accounts receivable totaled $586.4 million, increasing from $441.3 million in the previous quarter.
In the fourth quarter, the company generated $45.8 million of cash from operations compared with $30.3 of cash used in operations in the prior quarter.
The company repurchased 645,191 Class A shares in the reported quarter for a total consideration of $50.1 million.
2022 Guidance
For 2022, the company expects total revenues of RUB 490-RUB 500 billion.
It anticipates Search & Portal revenues to grow in the mid-to-high teens from that reported in 2021.
Yandex projects mobility GMV at RUB 700-RUB 720 billion. The company’s e-commerce GMV is expected to double from that reported in 2021.
Zacks Rank & Stocks to Consider
Currently, Yandex has a Zacks Rank #4 (Sell).
Other better-ranked stocks in the broader technology sector are Broadcom (AVGO - Free Report) , Intuit (INTU - Free Report) and Zscaler (ZS - Free Report) , each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Broadcom is scheduled to release first-quarter fiscal 2022 results on Mar 3. It has gained 24.9% over a year. The long-term earnings growth rate for AVGO is currently projected at 14.5%.
Intuit is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 26.9% over a year. The long-term earnings growth rate for INTU is currently projected at 15.7%.
Zscaler is slated to report second-quarter fiscal 2022 results on Feb 24. It has gained 27.2% over a year. The long-term earnings growth rate for ZS is currently projected at 37.1%.