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.

Forex Loss

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.

Revenues

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.

Margins

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.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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