Forex Loss Spooks Yandex NV (YNDX)
Yandex NV (NASDAQ:YNDX) suffered losses in foreign exchange that dragged down its profit by 82% in the second quarter. That is despite revenue witnessing 15% YoY growth.
Yandex NV (NASDAQ:YNDX) suffered forex losses of RUB 1.869 billion in the second quarter, wider than the forex loss of RUB 625 million in the year-ago quarter. The company blamed the US dollar depreciation to RUB 55.5240 for one USD from RUB 58.4643 in the March quarter.
The company reported a net income of RUB 0.4 billion or US$ 7.6 million representing 82% YOY downtick. Its adjusted net income also dropped 16% to RUB 2.8 billion or US$50.3 million in the second quarter. Its revenue advanced 14% to RUB 13.9 billion or US$250.7 million. Excluding traffic acquisition costs, revenue would have grown 15% YOY.
Yandex NV (NASDAQ:YNDX)’s total text-based advertising grew 13% YOY while website revenue advanced 9% and ad network revenue jumped 24% in the text-based advertising division. Its Total display ad grew 9% with websites and ad network witnessing a growth of 10% and 8% respectively.
The company indicated that its advertisers grew 17% to 351,000. Sequentially, it represented 9% uptick. The company also unveiled Yandex Radio Music service with the help of audio advertising. Its search market share in Russia averaged 57.3% in the second quarter.
While income from operations witnessed 40% downside, adjusted EBITDA slipped 4% from the previous year quarter. Its operating margin was 15.8% whereas adjusted EBITDA margin stood at 34.6%. Excluding TAC, adjusted EBITDA margin would have been 44.2%. Similarly, its net income margin was only 3.0% whereas adjusted net income margin stood at 20.1%. Excluding TAC, adjusted net income margin would have been 25.6%. Yandex NV (NASDAQ:YNDX) ended the June quarter with cash and cash equivalents of $845.1 million.
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