Moscow and The Hague, Netherlands – Yandex (Nasdaq:YNDX), one of Europe’s largest internet companies and the leading search provider in Russia, today announced its financial results for the fourth quarter and the full year ended December 31, 2012.
Q4 2012 Financial Highlights:
- Adjusted net income (3) of RUR 3.0 billion ($97.6 million), up 35% compared with Q4 2011
- Net income margin of 30.5%
- Adjusted net income margin (2) of 33.6%
- Adjusted ex-TAC net income margin (2) of 40.1%
- Cash, deposits and investments in debt securities of RUR 27.2 billion ($895.3 million) as of December 31, 2012
FY 2012 Financial Highlights:
- Revenues of RUR 28.8 billion ($947.1 million) (1), up 44% compared with FY 2011
- Ex-TAC revenues (2) (excluding traffic acquisition costs), up 41% compared with FY 2011
- Income from operations of RUR 9.5 billion ($311.2 million), up 34% compared with FY 2011
- Adjusted EBITDA (3) of RUR 13.1 billion ($432.7 million), up 42% compared with FY 2011
- Operating margin of 32.9%
- Adjusted EBITDA margin (2) of 45.7%
- Adjustedex-TAC EBITDA margin (2) of 54.8%
- Net income of RUR 8.2 billion ($270.7 million), up 42% compared with FY 2011
- Adjusted net income (3) of RUR 8.8 billion ($288.7 million), up 46% compared with FY 2011
- Net income margin of 28.6%
- Adjusted net income margin (2) of 30.5%
- Adjustedex-TAC net income margin (2) of 36.6%
“Yandex delivered strong fourth quarter and full year 2012 results with robust revenue growth, solid search share and a continuing stream of important innovations,” said Arkady Volozh, Chief Executive Officer of Yandex. “In Q4, we launched key products aimed at improving the user experience, including new mobile apps, personalized search and our Yandex.Browser, which has already captured a considerable share of the Russian browser market. I am also proud to report that, for the first time ever, we became the fourth largest search engine in the world, according to comScore.”
The following table provides a summary of key financial results for the three and twelve months ended December 31, 2011 and 2012:
1 Pursuant to SEC rules regarding convenience translations, Russian ruble (RUR) amounts have been translated into U.S. dollars at a rate of RUR 30.3727 to $1.00, the official exchange rate quoted as of December 31, 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. Beginning with Q3 2012, our adjusted net income includes adjustment for gains from the sale of our equity investments. 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.
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