Yandex: 2Q22 financial results review

Yandex yesterday reported US GAAP results for 2Q22. The numbers were strong, mainly due to improved performance in advertising revenues (+22% YoY) on the back of reallocation of budgets to domestic advertising platforms and E-commerce (GMV +67% YoY), which sustained total top-line growth at the level of the previous quarter. An overall focus on unit economics, cash preservation and stricter capital allocation resulted in a stronger EBITDA margin of 21.8% (vs. 1.2% in 1Q22), returning to the 2020 level of ~20%, just prior to heavy investment in e-commerce. The company introduced a change to its business segment reporting by renaming the Media Services segment to Plus and Entertainment Services.
In our view, the 2Q22 results again reflect the management team’s strong operational execution and ability to deliver results quickly. That said, a number of questions remain open regarding the halt in trading of the company’s shares on Nasdaq and the future asset structure.