Yandex has concentrated resources on the Market

Yandex today reported a 70% year-on-year revenue growth in the second quarter of 2021. The turnover of Yandex.Market, on which the company makes a special bet, grew two and a half times, but the rapid growth of costs for this business hit the company's EBITDA as a whole, and adjusted net income in the second quarter was two times lower than in first. Investors took the report of "Yandex" positively - the company's shares after its release rose by 1.7%

In the second quarter, Yandex's total revenue grew by 70% year-on-year to RUB 81.4 billion. Revenue in April-June grew almost twice as fast as in the first three months of the year (39% yoy) - but this can be explained by the fact that the second quarter of 2020 was the most difficult due to the start of the coronavirus pandemic in Russia.

In the second quarter, as in the first, advertising revenue accounted for less than half of the total - it accounted for only 49%, and growth was almost half that of the company's total revenue - 48% year-on-year. The search share in Russia has not changed much - 59.7%.

In contrast to the advertising business, non-advertising grew at a faster pace in almost all areas. The turnover of the e-commerce business grew by 155%, to 35.1 billion rubles, the turnover of the transportation segment (Yandex.Taxi, Yandex.Drive) - by 161%, to 135 billion rubles. The turnover of the company's foodtech services, Yandex.Food and Yandex.Lavka, grew by 74% to RUB 17.4 billion.

The main forces of "Yandex" threw on the development of the "Market". This was reflected in EBITDA and net income. Adjusted EBITDA fell by 13% to 5.8 billion rubles, the company explains that this is due to investments in e-commerce. And compared to the first quarter of 2020, this figure has almost halved. The adjusted net profit of the corporation grew by 34% year-on-year, but amounted to only 1 billion rubles. In the first quarter of 2021, this figure was 2.2 billion rubles.

Following successful quarterly results, Yandex improved its 2021 revenue forecast from RUB 315–330 billion to RUB 330–340 billion. Yandex does not give a forecast for the revenue of specific segments, but predicts a threefold increase in the turnover of the e-commerce segment (Yandex.Market, Yandex.Lavka and Yandex.Food) by the end of 2021.

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In early July, Yandex announced that it was withdrawing from a deal to buy an online clothing and footwear store KupiVIP. about the company's new policy : they were transferred to payouts from issuances instead of guaranteed ones. complained Recently , the owners of Yandex.Market issuance points