Yandex (YNDX) Misses Q1 EPS by 10c, Revenues Miss

Yandex (NASDAQ: YNDX) reported Q1 EPS of $0.16, $0.10 worse than the analyst estimate of $0.26. Revenue for the quarter came in at $576 million versus the consensus estimate of $613.15 million.

Q1 2019 consolidated financial results

• Revenues of RUB 37.3 billion ($576.0 million), up 40% compared with Q1 2018
• Net income of RUB 3.1 billion ($48.3 million), up 69% compared with Q1 2018; net income margin of 8.4%
• Adjusted net income of RUB 5.4 billion ($84.0 million), up 36% compared with Q1 2018; adjusted net income margin of 14.6%
• Adjusted EBITDA of RUB 10.8 billion ($166.3 million), up 40% compared with Q1 2018; adjusted EBITDA margin of 28.9%

Q1 2019 financial results excluding Yandex.Market in 2018 and 2019

• Revenues excluding Yandex.Market of RUB 37.3 billion ($576.0 million), up 45% compared with Q1 2018
• Net income excluding Yandex.Market of RUB 3.8 billion ($59.4 million), up 92% compared with Q1 2018
• Adjusted net income excluding Yandex.Market of RUB 6.2 billion ($95.2 million), up 49% compared with Q1 2018; adjusted net income margin excluding Yandex.Market of 16.5%
• Adjusted EBITDA excluding Yandex.Market of RUB 10.8 billion ($166.3 million), up 37% compared with Q1 2018; adjusted EBITDA margin excluding Yandex.Market of 28.9%
• Cash, cash equivalents and term deposits as of March 31, 2019:º RUB 73.6 billion ($1,137.5 million) on a consolidated basis º Of which RUB 26.2 billion ($404.5 million) related to Taxi segment

Q1 2019 Operational and Corporate Highlights

• Share of Russian search market, including mobile, averaged 57.0% in Q1 2019, up from 56.5% in Q1 2018 and up from 56.5% in Q4 2018, according to Yandex.Radar
• Search share on Android in Russia was 51.2% in Q1 2019, up from 49.5% in Q4 2018 and 46.3% in Q1 2018, according to Yandex.Radar
• Search queries in Russia grew 11% compared with Q1 2018
• Paid clicks on Yandex’s and its partners’ websites, in aggregate, increased 11% compared with Q1 2018. Excluding Yandex.Market, paid clicks grew 20% compared to Q1 2018
• Average cost per click grew 7% compared with Q1 2018. Excluding Yandex.Market, average cost per click increased 4% compared to Q1 2018
• Number of rides in the Taxi segment grew 64% year-on-year compared with Q1 2018, with Uber rides included from February 7, 2018

“We had an excellent start to 2019 with strong contributions from all our businesses,” said Arkady Volozh, Chief Executive Officer of Yandex. “Continued innovations in ad tech and on the product side allowed us to report robust revenue growth in our core business in Q1.”

“We delivered 45% revenue growth in Q1, excluding the results of deconsolidated Yandex.Market,” said Greg Abovsky, Chief Operating Officer and Chief Financial Officer of Yandex. “The ride-sharing business is demonstrating great results and we continue to see huge promise in a number of our new business initiatives, like Geolocation Services and Zen.”

For earnings history and earnings-related data on Yandex (YNDX) click here.

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