Yandex Q3 2013 Earnings Report Analysis

Yandex Q3 2013 earnings report

Yandex (NASDAQ: YNDX), the leading online search engine in Russia, announced its results before market open yesterday. The company has had a phenomenal run over the last few quarters delivering noticeable topline growth without compromising on its margins. The growth at the company was mainly driven by text based advertising revenues which grew 43% on a Y/Y basis.

Yandex Q3 2013 performance

The company has delivered a good quarterly performance. The topline grew 40% Y/Y with the revenues touching $315.9 million. The growth rate of 40% was slightly below the 45% managed in the year ago quarter, but the growth still has been very rapid. Another important fact is the very high operating margins which the company operates at. The quarter saw the company’s operating margins come in at 31.5%, a 3 percentage points fall from the year ago quarter. However the fall in margins is along expected lines as the company has seen robust topline growth. The Net Income margin went up by 17 percentage points mainly due to the 62.6 million income resulting from the sale of a 75% stake in Yandex.Money to Sberbank on July 4, 2013. However, the profits saw meaningful growth, a fact reflected in the adjusted EBITDA, which grew 28% on a Y/Y basis.

The company delivered a good quarter overall which is reflected in the over 100% jump in the earning-per-share. The EPS for the quarter was 46 cents per share compared to 22 cents in the year ago quarter.

Actuals v/s Estimates

The company maintained its solid earnings history beating analysts’ revenue as well as earnings estimates. The analyst consensus was quarterly revenue of $311.5 million and earnings per share of 25 cents. The quarter was the 6th time (in the last 8 quarters) that the company came out on top of analyst expectations.


The company has delivered a strong quarterly performance beating analyst expectations on both topline as well as the bottom line. The growth of 28% in adjusted EBITDA has been significant and we are impressed with the performance of the company. This is definitely one stock we will be keeping an eye on for any possible investment opportunities.

To see Yandex’s current stock price, please click here: (NASDAQ: YNDX)

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Neither Amigobulls, nor any members of its staff hold positions in any of the stocks discussed in this post. The author may not be a certified/registered investment advisor, and the opinions expressed should not be treated as investment advice. Buying and selling of securities carries the risk of monetary losses. Readers/Viewers are advised to carry out their own due diligence and consult their investment advisors before making any investment decisions. Neither Amigobulls, nor the author have any business relationship with any of the companies covered in this post.

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