YNDX - Earnings call transcript Q4 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter and Full Year 2020 Financial Results Call. I must advise you this conference is being recorded today, Tuesday, the 16th of February, 2021. We would now like to hand the call over to your first speaker today, Yulia Gerasimova, Investor Relations Director. Please go ahead.

Yulia Gerasimova

Good afternoon, and good morning, everyone, and welcome to Yandex fourth quarter 2020 earnings call.

earnings supplementary our IR on find website. can release slides and our You on are Executive call Deputy key Chief our The speakers Financial Chief today and Abovsky, Officer; Officer. Shuleyko, Operating and Yandex.Taxi; Chief Daniil Tigran our of Chief Officer Greg our Executive our Khudaverdyan, on Chief Financial available Yandex.Taxi, session. will of Senderov, Q&A Yevgeny be Officer the

be the that I considered risks and remarks that various will statement. Harbor The performance statements such quickly Now, and actual and financial make forward-looking walk to call during involve Safe operations of our you materially. differ may could through the number results regarding we’ll a cause uncertainties

the recent more please Form with on For section of filed Risk Annual refer Report our most to XX-F information, SEC. Factors the

be to measures. referring financial we'll non-GAAP certain the During call,

GAAP a the I’m turning You reconciliation in we today. Tigran. to to over non-GAAP of And measures published find the now release earnings can call

Tigran Khudaverdyan

continued end pillars subscribers reached the over including number Taxi. in total This to In integration from our to joining strengthen Thank for our important of is and base year Yulia, this our of December. approaching ecosystem our platform. strong businesses at million our X million, and today. X.X between on strategy. thanks focus momentum service and the subscriber developing Yandex.Plus call into products you, most of cross continued to now everyone deepening we one The QX is X the million

to encouraged as an improvement we as very an paid by since have upgrade with particular, trials usage. better introduction conversion cross-service well are We In or results subscriptions, from a in the cashback. the of the of program seen

average subscribe once the users to increases Yandex.Plus. We also see that spend

expand further other costs. GMV in member retention on model We and acquisition Yandex.Lavka Yandex Yandex be that cashback highlights week, of as by just We we more program subscription will Yandex.Eats customer and through to customers. program. the From market. me generated marketplace with for QX. for believe the With XX% to internally key to on For services. e-commerce, let you part customer this areas much is the also higher benefits being cashback are other e-commerce our plan Yandex.Plus see than the than walk of example, to Starting average other a XX% market a of the

results e-grocery to In as more GMV, well it e-commerce therefore addition of our peers. FMCG Yandex to exporter the is We includes business reflects related as our our also believe this of and GMV of marketplace Yandex.Eats. better GMV overall to comparable Yandex.Lavka,

pleased XXXX goes GMV XX which saw services our in very e-commerce we billion. for year-on-year doesn't include price through three-fold XXX specifically logistic platform that market Yandex GMV to and are that grew our this comparison in Note account total another We RUB XXX%. billion to RUB growth together that QX over and

quarter support temporary it during rebranding and the of of and GMV X which buyers our accelerated new the X last the SKUs. very most the Despite platform. has season. effect getting and growth Yandex went This holiday our we throughout times times active our For customers was under marketplace we in comparison XXXX. by was buyers GMV And marketing and million by early the growth successfully of market and we the operating with expanded number moved X increased as now the more transitional X.X reached million. as has year, process assortment than over our limited as this QX rebranding well At platform was market, and in single brand. time, merchants interface price The expected new the one a were slowed existing quarter to a to used first same the marginally

In and businesses. mid-January much the which addition to of St. Nizhny RUB has above In we foundation be this More and XXXX XX fast we Integration Moscow, decreased parts merchants to to in half portfolio integration capabilities the subscribers XXX. transition delivery available have second also on-demand door and CPA deepened market our for the year most with the backs the Yandex.Plus the is commission laid their options attractive to the our delivery for now all the Novgorod. most infrastructure. and are energizing active with in XXXX, on cash of merchants We market. logistics service Yandex get users offers of growth. to Yandex.Lavka. deliveries orders free above models will market Petersburg, more also XX-minute CPC on launched expanding This of now our of from Plus of other

revenue search to Search Moving XXX in QX, share points XX.X% total behind and driver a year-on-year. and in to from basis advertising Portal, the been key of record QX further has new which XX a reach basis increase recovery QX. represents our increase a point a and Search

small mid-February Advertising is among mid-sized in XX% specifically Our almost QX traction Network. counts over it advertising total and the and launch as model CPE revenue will within gaining of fixed of and also for already advertisers X% Yandex

at video XXXX, for of a the helps or ad subscription above model For marketing include will initiative VCP SME to advertising us believe this direction. maintain and revenue digital the priorities clients. our We growth dynamic

reached per video. the Users we year-on-year. by XX% Their audience We our users on over spent on the are of has day XX% then. consistently platform, million up XX which are XX.X is very trends sinking encouraged minutes

achieving rate internal XX% month both this revenue our analyzed to We've important pre-COVID with subscribers already X solid in as Yandex team the Services. basis seen discussed leader million another of our engagement Based believe for the auto on more ahead milestone but January. EV us market on growth and makes RUB viewing the we our per Media Then have team than Russian addition in of progress recovering was the In trajectory auto. estimates, Plus to December. we year-on-year. an reached billion growing revenue user run XX.X

its rapid billion business of couple X important milestone a Finally and an reached year-on-year. RUB cloud. X.X growing XXXX revenue of in words expansion on in The continued times

and both December, revenue impressive usage it's to December of was customers to customer. XXXX we number almost Importantly users. higher per expansion compared active had growth driven In XX,XXX. XX,XXX base XX% The paying increased approximately customer by

While the in up, we good entered shape XXX% sum range To grew year-on-year. with XXXX check average diversified very services. of a

recovery. to are Our the to economic likely hailing advertising going ride anticipated businesses gain from

pandemic We also food expect and the to media that services services, logistics have from maintain e-commerce. solid momentum in growth benefited delivery, including

to services continue over mic our will integration this I'm further work new FinTech. with Daniil. while And the exploring the within We as platform opportunities turning such on of to

Daniil Shuleyko

Group. transformational the was Taxi XXXX year for a everyone. hello and Tigran Thanks, truly

expanded into verticals. core services hailing As our beyond ride we other

hailing in As also by solid challenging new and efforts, Yandex.Logistics. addition year-over-year food BXC a diversified transformation of businesses, logistics, grocery and delivery, was growth Yandex.Eats year of result well portfolio and this we our a supported revenue of XX% in XX the as as This points finished percentage ride which QX. to BXB our this car-sharing. driven Over service with growth

of Let implement in in the services a each the Ride pandemic business QX the performance cases increased additional of me of logistic comment on had and number significantly as line. was to wave by hailing authorities COVID second Russia restrictions. affected excluding

In and adjusted European revenue the severe grew on a material, up area. optimization United totaled a back of While QX, On this business our in ago. hailing in year-over-year, accelerated year hailing QX meaningfully States while too this revenue key for supported EBITDA these countries, versus became focus investments. XX%, In Taxi multiple it were XXXX. grew ride but revenues the were total that restrictions revenues as contribution as logistics basis the ride full some progressed by XX% not not Logistics and affected ride adversely of of XXXX as XX% a was GMVs XX% grocery. XX% hailing year

delivery a As logistics service December and to growth in acceleration exceeds very XX year-over-year FoodTech of our services rates. reached demonstrated million an perform well result deliveries. continued food

Although higher total all orders chains. food growth in growth show excluding teens to often from [XXX%] SME of XXXX GMV acceleration increased delivery as the grocery also growth of fueled in while low groceries was where head the retailers contributed GMV its up average E-grocery QX delivery. by half grocery of year-over-year In food GMV. retail XX% than in and in is growth. high GMV orders started demonstrated in Yandex.Eats XXXX base believe despite eats directly drivers in We digit e-grocery year-over-year ramp December the XXX% deliveries approximately the rates from inside orders QX. revenues the restaurant pandemic, were in contributing up of deliver into of that of XXX% one we groceries QX the City double XXXX.

accelerated while Taxi or compared Group delivery year the Lastly, delivered services our with moderating. loss in adjusted of rates constantly in QX of growth drug first QX QX. RUB stores finished grocery XX% that in EBITDA Sequential been XXX total the the revenues X.X to monthly services has billion

is Yandex grocery However grocery approach just offer in Yandex. to beyond what

in Our the XXXX JV the Grocery become - and an At other our our largest market, Tigran all in much to us that approximately than country, with opportunity Yandex.Market and year-over-year. as our a XXXX is Lavka U.K. which of price, already GMV services. and portion in groceries to rejuvenated JV way. Russian approximately US$XXX e-commerce beyond variety largest of in billion, intend businesses. scenarios of an don’t made deficiency other by a initiatives the and Lavka to know believe market Internally, Russia. lower - XX overall XXX% the the market here. addressable market look same which billion of expanded in retail food marketplace e-commerce at with leader not has grew e-commerce urban beyond not retails we e-commerce e-commerce, aggregate provided the enormous retail time, the grocery just in the just at XXth just stop the opportunity market food our retail market is in defined trade is RUB of grocery markets compared into We Yandex.Market to where - Edition if start our by categories, we This we're XXXX consumption significant core XXXX to adjustment grocery the Earlier, was in XXXX. we total consistent our one

the including high fragmented Russian on out we [some shift We will scale obsolete improvement] a So is presence there trend have be are components where we clear capable to we believe market retail such and online, market fairly one few online. our regions. focused is players this but towards the to just a quality to of overall,

part important you customer you beyond an for in the transaction expect as acquisition help the just centers are the services. sources to Yandex hidden of the February of If Vezet, beneficial business it to region, and of other announced Group, development of as call also e-commerce, including is logistics regions, Turning know regions assets selected the significantly will goes Vezet is we of of existing we acquisition know of early the and care us very base in as call the efficient. which improve allow strategy. region in This which centers will on the

successful supply robust and of integration, a demand options earn a expect money to drivers per variety reach platform to Assuming we offer ride-hailing.

Assuming trips the our to in on to to completion of in April, incremental basis see expect we the over of With turning the annual integration in this, impact mic I'm GMV XXXX. mid-to-high Greg. single-digits

Greg Abovsky

and Thank Daniil, you, hello everyone.

the to fiscal Two year and XXXX our had we of things model results, again with our happy highlight. discipline. business demonstrated QX financial and which our We’re resilience

our segments The of accounted Portal. Firstly, from ago XXXX. revenue business over revenue for for total of almost was the our how diversified non-advertising XX% half our and Search years full-year become. Five has

group investments helping and now Secondly, the with attractive Right second us healing generates flow a our cash segment Search fund into clearly largest logistics. to the fund within and business business and EBITDA group solid to opportunities. sizable the us contribution FoodTech longer margin new is Portal allowing our in to no and very initiatives only generating is the adjusted

revenue performance despite In growth through Portal, improved Now, in a X% backdrop let walk QX. challenging to latest and me businesses. Search from X% Search and trends you year-over-year with more QX, QX our the share the and Portal macro our across details of

attack to devices compared growth as revenue our year-over-year, performance the increased and XX% X% efforts, of The by by optimization ex-TAC revenue solid growth strong the our as was Our in third business. with well supported quarter. advertising recovery

telecom momentum was in including QX the FMCG, dynamic seeing we’re performing has QX and date. that healthcare. the Industry with to insurance, continued best and far similar to industries the wise finance, IT So

still performing travel While the real worst domestic estate. services and is

EBITDA Although, margin Search autos to we gradual QX, started adjusted and see is supply as was in demand in recoveries a XXXX. Portal XX.X% normalizing and balance there.

came the IoT TAC excluding margin cost tight was EBITDA supported investments to and adjusted XX.X%, improving optimization control. into our up and margin year-over-year. technologies Importantly, points efficiency by the Despite Yandex.Plus XXX add basis

Moving in to note RUB and Ride-hailing the small increased the even development slightly It's logistics posted in remains and of terms. XX% ride-hailing cost of many as all wave ride-hailing that growth remains XX% and increase EBITDA combination Eats Lavka. holiday rapid the This FoodTech was order. Lavka by row. for accelerated demand out source revenue performed growth the the services harsh Adjusted December. The an X.X billion revenue also important funding back in again year-on-year a as the EBITDA year-over-year border the continued the well loss and of end QX revenues on in adjusted increased couriers food as compared and to services, absolute delivery the slightly The ride-hailing second challenges of of FoodTech of FoodTech the grew The on segment the second a significant which the is in very QX in quarter. delivered mobility to XXXX driven well the an conditions, growth higher QX, of for delivery key high of in pressure EBITDA our supported QX the full-year important QX. year-on-year our at EBITDA of acceleration despite because demand put QX. Yandex.Drive as excluding solid year-on-year segment of to was primarily services. business slowdown COVID. in including Revenues of which Yandex.Eats than Taxi. growth XXX% group for strong accelerated, of weather revenue segment by positive the in by pandemic Taxi expansion XX% during per Taxi is group in adjusted XX% in very quarter result adjusted logistics. closures in and and resulted Eats despite on performance in the The ride-hailing undersupply well FoodTech and for period

Turning sequentially XX% year-over-year growth accelerated Price to QX. year-over-year from XX% XX% comparison Yandex.Market. Yandex.Market increased to QX. in in revenue revenue

growth QX we share compared efforts despite rebranding marketplace in that with seeing more success Our Yandex.Market. to QX February to in for quarter in to of end due down slowed EBITDA Yandex.Market the rebranded doubled billion solid QX orders billion in X.X a The to January AOVs. from loss and of only we're amounted GMV Revenue primarily loss XX% also Beru marketplace XX% XXXX. light undertook QX up growth, than our share the affected XP reacceleration compared to-date. to already and and of it as of in was in XP in in as we brand many Despite adjusted the RUB QX meaningful us GMV X QX month of was by XXXX. transitional RUB ways growth shifting orders lower from model

businesses. based other more comparable performance remained subs growth a QX levels. to-date. is of Services revenues strong investments XXX% of subscription in was revenue Growth doubled paying with quarter of which and year-over-year The to number of subscribers. strong billion, QX QX level Media reflecting in X.X quarter solid in RUB while on to Now than growing additions the delivered another

depleted dealerships under on previous in year-over-year to car that the to QX continue leading the pace market viewing stocks series, to XX% monthly in grew quality in The of chain We quarter. in invest led to Revenue growth including original number in achieve of recovery. slightly position just XX% helped at us which the by supply challenges OTT the the the Classifieds content weigh our continue in subscribers.

seen January growth of have with we this high teens. in to revenue since a trend December returning However, the reversal

adjusted to We saving expect XX% the of wise, market leverage a the margin situation XXXX. of result QX number initiatives. operating we normalize Profitability high positive cost achieved by end of of as record a a and EBITDA

increased billion in development loss growth self-driving growing adjusted Revenue by of in revenue education and technology Bets further amounted over QX. back RUB delivered growing Zen, as Other Zen of to strong growth profitability this Cloud EBITDA primarily and well our and by Cloud in our Geo driven platforms. on segment The as XXX% Geo, recovery and business, improving to X.X in in the Turning which investments Experiments. in XX% revenue rapidly

couple a words of Finally, outlook. on our

advertising We grow the to Search our Assuming we billion will full-year no in in online least we XXXX further believe of and escalation the between pandemic, expect line of group in expect to billion XXX be revenues with growth be and rubles. the in Portal our XXX XXXX revenue at market. RUB likely and market RUB the mid-teens

a Search of Portal and device business. excluding in stable margins the expect year-over-year the We effect

We focus increase improving support with Marketplace despite investments low in grocery digits GMV remain as generated as the demand anticipate on XXXX GMV our times to we expect double group base grow both the campus. CapEx and abnormally customer of including total during lockdown infrastructure, our logistics well including revenue significantly our mile where in We the we our Yandex growth, by a as the delivery will a total To in as Market Yandex.Eats months. e-commerce investments last planned the experience. to high new well Lavka as and X.X percentage saw XXXX GMV high the in

Q&A I’m single costs, we expect our the operator to CapEx construction to mic the Excluding digit be session. sales range. in the campus to With this, the turning high for

Operator

Cesar Please we Tiron of [Operator Bank question go Instructions] from of take And America. our first ahead.

Cesar Tiron

opportunity have and questions. follow-up that's ask I’ll I if a as that for the the thanks to everyone two use so Yes, okay. call

opening some issues just can in please comp understand months-and-months a that if and on QX better. you're much slowdown think maybe the the e-commerce pattern then was second you you do up-trends, will really can so integration that you compares please one how for December you long business seeing first that you're stronger trends of better the move you elements be if the mentioned and but you and how And as the in these QX help there’s us we the particularly help. towards XXXX? seeing [exist]? and QX question and the in repeat on remarks, I know with So would on mentioned what Thank

Greg Abovsky

Greg. Thank Hi Cesar your it's very for much questions. you

with we're Let's advertising the start off seeing. that trends

solid [life] is and which a also XP the to on commission rapid to brand. GMVs, we see and seeing saw in search and saw marketplace a for everything mentioned of we I slight ex-TAC trends We did translates budgets portion. the in, We're of e-commerce obviously we consumers or previous solid. quarter the uptick much on in pulled the at less saw your but overall. saw look we’re in shifted And would more for very November in definitely question trends with we say acceleration in of revenues market you QX - Yandex began a the We if We portal and new January some us. saw fairly what merchants only brand in as both quarter par following. since growth. transitional transitioning seeing revenue we is So what that this the December but the are to overall into and a so, then recognized Beru. that turning We lower platform were terms second I the

to-date seeing also lower QX was in we’re a pretty potentially which Yandex What is markets. seeing in I we’re We AUVs seasonal. strong reacceleration saw think

The is are happy the on The of is that platform platform GMVs number significantly. users stabilizing. the with seeing growing. actually growing performance quite we’re there, We’re the

about outlook see segment. overall I So the for the pretty optimistic we’re

Operator

of comes Goldman question Please Sachs. Degtyarev next go ahead. The from Slava

Slava Degtyarev

potential increasing Can are from first maybe please for driven My focused miles self-driving data you on on milestones question over much self-driving. very of division would points what the or partnerships? thanks the some achieve share call. and the recent some number managed expansion the geographic XXXX? in key you Thank that Yes, you Is be you. to it also most

Tigran Khudaverdyan

which accumulated SDG currently data spread public roads. X XXX points between million Russia, autonomous autonomous and are on cars, is USA, cars Hi, Israel. miles We've Slava on some have we

the been more overall, We in well with in I We've Annapolis of improve Moscow And continue our also rates is and phase Yandex.Rover. and the in of to there. is seeing. as now, parts Rover terms suppliers. of a disengagement And investing may Yandex.Lavka Obviously post for both you progress that called as various have delivering very but think testing us. time on opportunity seen maybe happy auto delivery of as And food we're robot it Tier we Kazan. X OEMs for on exciting partnership at and think that's the same and exploring maybe and Facebook videos that Instagram, actually are the And of people I delivering delivery the Yandex.Eats. an opportunities with SDG both we're

- business So well. think is I a that progressing this is

the we think think beyond there. interesting very self-driving applications more just I we're I found progress. with And happy

Slava Degtyarev

you. Okay, my follow And thank up on would e-commerce. be

an leadership other then Thank last Have profitability, taking you that made you. the been into segment than outlook share the updated with changed acquisition competitive it's months views past account especially since Can since the over So learnings the the you on me was a over the [Yandex.Lavka]. strategic developments? anyhow vision more with there or of delivered half any your year. six you the targets

Tigran Khudaverdyan

sure. Yes

is more that we've picture actually where complex assets consumer various pulling have today we're So as one into a at of kind the been range that we with we're serving of products. the looking and much different

SKUs of using to to within We’re we as Yandex.Lavka. beyond. minutes to retailers XX able And deliver itself to or them also using which We're will Instacart to which QX of then groceries next if you within deliver of Yandex.Market model day groceries minutes, kind Yandex.Eats. has XX goods much attempt approximately X from deliver the selection wider a million them able

us Yandex.Plus assets and shipping Obviously, than receive Yandex.Market. within the bring the customers free we achieve this more think attack growing that and XXX to leadership bear e-commerce of we I can whenever of of have we that position problem they range have following. have or subscription to should which all think help we in base assets of RUB Yandex, a a spend whom large the I

to. million adults Yandex.Co X deliver sell like or Yandex.Market Yandex.Eats platforms. various We XX that's million month across per and Yandex.Lavka cover have or XX products or currently about So consumers Whether Yandex.Market transacting it's that customers something also can we we our stores delivery XX last to provides following we've with from with million XX-minute what we've Yandex.Lavka leg which XX-minute and consumers. Yandex.Market million the so consumers us with use actually doing. this been deliveries been Is case. the offering in of

You delivered can to day in Moscow next Nizhny very you actually it. you something the anytime Petersburg get need and and St.

built So coordinate with growing getting connected a something groceries from having the we you or of inside that instead with traction. a a of very mentioned Yandex.Taxi within think rapidly XX And to of blocker courier dispatched lots this consumer last which essentially up of up that's a obviously, And or pick to up having courier upsell to a is really or click to in we've minutes. you obviously button app more products, have with and you to we brings number at platform. minutes deliveries with business lots that and the point go the I lot the I is doing to and and XX pick and point we're try very, mile logistics Yandex.Lavka that more businesses Yandex.Logistics. and

we in have years. we various at Yandex, Yandex.Lavka in in spend e-commerce $XXX We're competitive. of but to strong to still part looking are is the There's I'd a a competition, and Yandex.Market this market the meaningfully million $XXX dynamic. looking few across initiatives including The we and be and aim invest Yandex.Eats million overall, top that So the say this. is market to player grocery to market

Operator

The next comes go from Ulyana of ahead. UBS. Please question Lenvalskaya

Ulyana Lenvalskaya

the and all a firstly the it's being presentation Thank to if conservative, the Would the and time the may I based favorable, I So, restrictions lifted. all that for is super in the really of of high essentially numbers. it sense? questions in you to couple thank COVID you environment level congratulations basis moment, situation fair guidance? providing on just so is the Russia the be are not guidance a current on discuss at for good quite if on wanted say guidance this

Tigran Khudaverdyan

Yes, see on I guidance we the based as is it. situation the think currently

Ulyana Lenvalskaya

third like downside any risk? wave any So or again restrictions suggest would

Tigran Khudaverdyan

there's there's Correct, I think if and things room. get worse, things think, I downside upside room if get mean, better, I

of think guidance today. current - as view I sit management is we the the the here

Ulyana Lenvalskaya

you. considering? secondly a Fine, how is discussions buying the about here? pass team - the initiatives. What Greg were about And is fine to of the thank sort Yandex this what some current current management what are local FinTech There is thinking options [begin] far bank rumors from

Greg Abovsky

look on of lot there's preparatory FinTech place a taking is Yes, - now. this that's work

of think our e-commerce products we've that ecosystem the with it. built. jumpstart absolutely are very when of acquire to with appropriate. I'm will if time talk in it whole say on transactional well of It's process that We a one we just of with our we specific need and that spending vast I not all We thing lot go do. we products feel like were going and we fits to to speculate would the and it's you to of sort the sort the out rumors in market market, them sort licenses, going but certain

Operator

The Miriam ahead. Please next of Morgan question go Stanley. Adisa comes from

Miriam Adisa

Thanks for taking my question.

assume what saying remarks, should take to the is year introducing it or commissions. for about rate another prepared the reducing this a EBITDA earlier on run losses you just reasonable given Yandex.Market. year in one the step-up e-commerce. to in should you about merchant Thanks. think free were Is we of delivery also how and wanted cover first sense we Apologies this this but if get The

Tigran Khudaverdyan

Yandex. repeat a We're e-commerce. the the accelerate answer million our Lavka, which question is of looking covered our well delivery in What plan Yandex we to it to portion is little Market sour $XXX e-commerce but based think investments $XXX model. insta-cart that, as I to the on I million of across indeed all Eats XX-minute I've pace of includes the it. That do which investments I'll Yes, Miriam. the in grocery Yandex one-fee Hi, bit, to was also includes but spend in e-commerce I assets. obviously, said following. as Slava's just

landscape. of those we're pace to to you growth believe $XXX looking allow – of the in the $XXX spend climb ranks the assets, to all will dramatically of and million of across sort that kind us if So competitive and will accelerate million we

Miriam Adisa

just All the a having right. the mean second margin think on be or and speaker Thanks. much just bigger impact on was the about margin, and such And contribution contribution. this on year? how I seems and to then of question But is impact Search the wondering just smart how it but sales also IoT my we Portal this to seasonal important. then for should

Tigran Khudaverdyan

A it seasonal. lot was of

has obviously it's know into. all new also I a market They margin. is problem. market that selling end subscriber total Things unit a that The and margins to class Russian seasonality like of with we the other Portal also in expect And done technologies with of decrease also very, of in from leader we out media economics both our in getting lot Max time. those are story these team extremely building over as I think I'm the the the large if the by We're called the of that selling traction speakers put Search the speakers. on with Station see with well. are that television device large expect think The the unit products the which high to wide are well. very we're fits And looking very Mini should of with should a And proud see And and continue. improve, clearly well Obviously as where like services I RUB as ourselves speaker work we are very those drag economics are we there is growing with applications KinoPoisk well we're smart that generated improving. devices speaker things you and rapidly. of sets there the business that billion Internet as trends just around beyond base Yandex.Plus products. you X well. something But revenue that To very think

Operator

of Bespalov go Please Vladimir from Capital. comes question VTB ahead. next The

Vladimir Bespalov

you and XXXX. GMV your be guidance is your got issue it the grow in taking something year, key all RUB it assets much of X.X which your doesn't but question. gap Thank terms absolute XXX on good, they competitors, my correct this resolve your the but with growing like might for e-commerce growth first about you. I for than should - If My basically billion in times slower, question reaching faster be this is will

are strategy to with expand business? grow to you to you integrated you of more development color or grow How provide you. regions in XXXX this. fulfillment to game could expect going do the capacity. how it Yandex.Lavka. for the maybe Yandex.Market. doing number Thank Maybe this preventing - bit is maybe And your what to are you So And second the this question related of the gap. stores the maybe update of this the to on reasons kind basically the little you reach going Are can which closing from on a dark to you

Tigran Khudaverdyan

Hi Vladimir. Great questions.

itself in it So terms by groceries Eats around of e-commerce and GMV that market do of will lock including within times. We overall, you the increase both and expect X.X GMV. Yandex of so Yandex the contributions got guidance of correctly

you number And billion so in more ballpark, XXX of less is the the or provided GMV about right.

have I looking whatever And strategy Petersburg. we e-commerce you e-commerce out. bear if assets puts battle to competitors is that. same them around I is very-very I do the in of have in in that Russia this actually of the them. think been well. is competitive respect answers that landscape, we we question think think those beyond customer which I Moscow we’re to time. experience delivering time, and those say on is very Russian would talked St. our and that focused to strong I period on a what on will. Slava Lavka, recognize for roll just are in squarely number a I and certainly I beyond And the market listed three that And matter as tremendous just the just formidable think go short expand to very And We the our in a achievement then earlier on. Hopefully and At us we’ve bringing when to the slot expect

regions, Israel experiment Lavka. some and type to same But As alterations in are you the promise. the It We a make Russian model, looking be of may same. that’s we some may expand small have we on know the the showing but not focusing exact Lavka. to the will premise be

be there little also for a do But as the of important overall a different. different. Maybe very think of need real a the maybe that part points So this. we this think be the is And strategy. we will little assortment SKU a e-commerce will price

Vladimir Bespalov

you much. very Thank Okay.

Daniil Shuleyko

see currently XX% Yes, a you to a Again. within a platform add know that we we and already know adult point you Lavka population. XX-minute walking already just of know logistics have store for Lavka I dark it as you want infrastructure radius Russian quick

forward focus going integrating on ecosystem. overall overall that's we're to of and to an our So into course grow it e-commerce going going and

Operator

question Bank. [Operator go ahead. from Lloyd comes Deutsche Instructions] next Please The Walmsley of

Lloyd Walmsley

to that Thanks. XP I drive lot Greg. Two then, with Yandex.Market far where in What impacting is are related. Lavka, They're that gross through out? and and the how guess share? a first to the maybe Yandex.Plus, that markets the And us for vision is your then that kind margins be and Thanks. absorbing the that or kind doing market of of economics? of you're is cost a you in how delivery of know you party you of logistics guys unit just a how give behavior questions in Lavka what of related integration. just sellers the you percent connecting Are drive of of may can sense that kind to second along rolled still higher and know lot bearing market running it's margins. user And are EBITDA the one mix you of transactions the probably impacting third or are in

Tigran Khudaverdyan

Hi, Lloyd.

market the taken in those place all months. integration, and of those and are fresh fairly Yandex.Plus on So six last I’ll it call

those the tell we've to within we the landscape. could and free cross that above considerably investing fact, lowered so GMVs in obviously not are very are spending merchants. Yandex.Plus have enable opportunity. and we will most it's Yandex.Plus rates is to question And be see our on dramatically recent. that for RUB users that a think this In deliveries we Russian on recently building is idea that idea I the XXX We what big focused end, that It's Yandex.Market mechanics are XP, aggressively service Yandex.Market our you from seeing usage just on And then we're through the XX% that To We're various higher merchants. on XP of Yandex.Market. Yandex.Plus And subscribers marketplace. apps. focused average. with to growing XX% of more on on on a compete have attractive This been is we the the take on is commission market some obviously subscribers the

platform. attract they’re merchants think the more we're most and on is XP obvious, products. to That's probably heavily to obviously the the most to attractive I marketplace but also to compared more competitive and XP favorable margins investing

Operator

& next Company. Please comes Davletshin question The of from ahead. Ildar Wood go

Ildar Davletshin

on very results. you and congratulations very Thank good much

additional given know at you also maneuver year you your the a cost periods you of broad logistics the further the that your drivers. cutting incorporated in year? in ask you. the if the just are last in you I of headcount if for already on that more migrants that year for or you this to and certain with benefits level I'll cost see and your situation And included in tightness subsidy last be there time. potentially there the which tightness are Yandex.Taxi you margin the had question last the business, deliveries bit a any borders and guidance. Have And the environment cautious with XXXX guidance could deferred one you my from a would operating kind on any in taxi the specifically - the business so drive question? launched growth follow-up year? in Have e-commerce especially come first We and growth So could in of Do pay in ask market and was wanted of still Thank tax specify on reopening? on this year growth you what's

Tigran Khudaverdyan

Hi, Ildar.

the question I'll me on on first Yevgeny first give some to it Let take you color question. to the and second pass then

On them would see the outlook, baked we things into today. I our say the margins various that as we

in the currently then it. is hiring we pace our the of of this that's see of of and our do And proud this we're the as of And I Yevgeny a to of that. think think In pretty them. asked expand e-commerce pace borders. plan XXXX. terms investments the on XXXX, into well - of and of exercise quite provides just hiring margins various And Ulyana built but can we I sort the covered earlier, in initiatives we discipline so as as drivers in did take I lot guidance outlook question pace sort

Yevgeny Senderov

Ildar. hi, Yes

separate. think And as like tightness of but that What is are end some now Russia. and sort for first last surge experienced of to and you far As very to see and unusually really snowy couriers began high know the Taxi I even year. related drivers I at we itself winter think of reverse pricing I right did borders all we cold the to in

And GMV even mentioned - closed. growth overall normalization. already Russia this is we borders And our sort affecting in talk for cost and and was trips yes, But know course you If food sort again of supplies. delivery affected growing that's Russia have been winter I time. in the we've see started And So have of the seasonality now. that that of know snowy affected right - market. excess is seen of cold businesses we courier in excess per delivery signs our the in to was delivery CPO of about before our goes of by terms eats under CPO you other

is is levels business peak and moderate. XX% going So we in each the down for example in forward from to going current December expect this CPO roughly

Operator

The next of Ulyana go Please UBS. question comes from ahead. Lenvalskaya

Ulyana Lenvalskaya

just I to on a couple follow-up things. wanted of

as you unit? looks business Firstly, Would really consider showing the cloud business this a performance impressive. separately

Tigran Khudaverdyan

businesses in cloud that currently we and with happy I further the going yes think we're expect this year. It Ulyana, grew to progressing. QX grow pretty Hi significantly it's

for business in triple it unit. Internally and more and get And think We up I win in traction very we as a great as its a expect break -- we business that we approximately will already more likely successful as as cloud we this XXXX. a well. encouraging set it’s at think our a out it's unit us entrepreneurship form And is a think that endeavors think will Yandex. of and all this help been I that in

Ulyana Lenvalskaya

to reverse Great, in we were thank helped call, you. search or And it first portal? XXXX do the Greg and I comp, thing the reversed capital discussing the XXXX coming this plan Was like margin actually management within you to in the remember which quarter in quarters?

Greg Abovsky

we reverse So, didn't it XXXX. in

gone normal We are we to XXXX. and expecting pay to for in salaries have back bonuses management

bonuses at our assuming the achieve before in the targets decided and paid be management XXXX. forego In pandemic. XXXX will beginning KPIs said So bonuses our I in management XXXX, all we to like of

Operator

go Sebastian from comes question ahead. Please next Jefferies. The of Patulea

Sebastian Patulea

thank taking the as one follow-up the earlier. you give Hello you questions second the I'll for my presentation everyone, and two and I've got thank for please.

or your been focus economics please indeed on point building delivery has regard the you latest that partnership And of such with a of what offering as or and also building proof partnership recently there is in unit in Can Metro store. retailers delivery the dark levers grocery Kazan. that discuss delivery, building via grocery look at via pre-established points some partnerships regarding in dynamics your is one the First deciding the between stores? key that or your are own regard versus when Metro offering with you

play you globally at Is or threat regarding to this portal, search governments you. force dynamic Second to Russia that’s this publishers a see Thank one tending your to cost is don't pay it? base news. search seeing in for engines we're and

Tigran Khudaverdyan

have want for specific customer choose with a stake XP say They They are and Lavka very the a Sebastian XP delivered or Yandex.Eats. Hi, the on first more at in they groceries Yandex.Eats. a Instacart i.e. specific so obviously from would from stores specific the it's have products both specific popcorn VkusVill. we consumers looking that model is model about question Miratorg I to the want when question, from a and experience differentiation interesting like from

order it order the And there time times little are longer. they to so to terms in completion click of or and eat experience choose bit

think every know you You're exactly don't know in With offering shelf. there's those of have what's offering obviously minute a retail on slightly a you exactly the the different retailers consumer what's SKU at smaller in I accurate Yandex.Lavka models. XXX% the don't for because you're and and mix, a you're we definitely both to delivery it's integration experience. rapid will pursue don't because And more both. stock given place continue store, little And themselves less

on the your for going and lot portal of lots second to Specifically on comment a partners search to then experiments question and Metro Kazan I'm we and in lots not different news. paying because have with with and of

lot of hasn't will and a does, - really that. it with then what explore gotten out it and does question it if here. we that hasn’t But obviously once traction that to So do figure once

the now top think it's something agenda. a not right just I of that’s

Operator

of Anna from comes Alfa Please question next go ahead. The Bank. Kurbatova

Anna Kurbatova

IPO return company's the Taxi Thank the the Very simple to for might agenda. when presentation. very are you much question,

Thank conditions the what terms Taxi will organizational in mean capital you. you overall profitability, segments, and markets? for? the looking So things of I and be of business

Tigran Khudaverdyan

the on would IPO agenda. Anna the so not Hi, Yandex.Taxi I of say consideration that of the is

digital various see the leading the We are that synergies ton and countries focused a on assets we platform we in operate have. between which we building of in the

they able the to of power want, strength. all services consumers gives is they offer platform whenever being the and that us real we've we to these think I built what whatever that want, is have

so, And that something we're just is I pursuing not considering. think an IPO

Operator

Cesar go ahead. question the comes And of next Bank America. of from Tiron Please

Cesar Tiron

I'd like if to that’s more okay. two ask question

Usually users explain believe usage amount think but Of question. that current full do used it And cetera the current and has you potential the you if on there potential would made be would you and inventory Zen? significantly? on us like not even further usage the the I do to is XXXX? a be to by impressions will margins. some increase second pricing of you'll So or you'd of your its which in full might to Zen significant one the Is the user much. that? is on the view revenues further base first comments you on that then or you the I scope number et for its tell and with think so The to on monetized you profitability mean Zen. I'd get one first that's the increase, increase anything see that is but today is Greg Thank Do missed so monetized course what like is you have outlook. there these it, calls to

Tigran Khudaverdyan

asked. Sure, Cesar it's a hi. that you On great so Zen, question

would see there's it ads we its lot say what a within monetization much Zen I that whole specifically and feed. a a of And video current probably lot formats. of this effort is format. would of is The we're install time a And and new lot is seeing to that monetization investing there increase massive make say I app to that in not business. larger increase So opportunity the with we're to opportunity in Zen through

of answer hey to monetizing, finally with is that its of install what total video percentage process you video total if we of news that is as So getting do users growing there could there see time rapidly. XX% spent of percentage feed the growing inventory lot formats. what traction is is no. is number And time and of and now. with that the a existing guys spent of just saw And the some I you existing think and a is new app ads, you the inventory took with in doing that starting see replacing we're not you But a ad we're are as over also

is So in in average million something And while users seeing December like think impressive. with growing which fantastic. December just toying incredibly I their we're XX% were year-over-year to-date XX% quarter up daily we're was revenue currently is users which XX -

remain margins excited should over question we're XXXX in products opportunities the about that and around our devices same We that I Zen Miriam the impact then at that year, on course speakers, margins. XXXX said search and and as of to to we from level the that in excluding on portal within that asked new lots for smart of expect the the of So think decline expect right. headwind we devices. the And

longer become devices much as margins. they a quite we're of drag more should much the As on them subsidizing no not be as as profitable

Operator

closing Thank remarks. at you. additional There are no would to this Yulia further Gerasimova the questions time. over I like for to any turn call or

Yulia Gerasimova

very much for call until you for IR more team. questions time. Goodbye today Thank next you questions. any If follow-up thank contact our there's your please and the joining

Operator

and Ladies you. you for today's conference this Thank concludes gentlemen, participation. your Thank call.

disconnect. You may now

Nebius (NBIS) 16 Feb 212020 Q4 Earnings call transcript