Yandex Q3 21 Conference Call Notes

Yandex claims that the improvements in advertising revenues in Q3 21 were driven mainly by Yandex efforts as opposed to the market rebound in Q2 21, meaning market share gain for Yandex in Q3 21.

IDFA has a very limited impact on Yandex advertising revenues, as 80% of those are text-based, and Yandex also have own tools to identify the user with Yandex ID.

Yandex sees its competitive advantages in e-commerce as having probably the most comprehensive proposition both on the consumer side (wide variety of consumer service, including e-commerce, ridetech, entertainment) and on the merchant side (adtech, logistics, fulfilment).

During Q3 21 the dropshipping by seller became very popular along with the e-commerce transition from CPC to marketplace, with a lower quality of service than Yandexs own delivery and under-utilisation of warehouses.

E-commerce spending in FY 22e are expected to be no lower than USD 650 mn guided for FY 21e.

Yandex sees Lavka becoming EBITDA positive in the next 9 months.

Positive dynamics in car sharing are driven by B2B, which made up 12% of revenues in Q3 21 and 30% of EBITDA. Yandex also disclosed its post-leasing EBITDA margin for Yandex.Drive, which was 7% of GMV in Q3 21.

Yandex views Cloud as a most promising among smaller services with a 3x yoy growth and 30,000 active customers.