Russia’s Yandex reports revenue jump, return to Q1 profitability

Russian internet giant Yandex (YNDX.O) reported a return to profitability and a 54% increase in first-quarter revenue to 163.3 billion roubles ($2 billion) on Thursday. In the same period last year, the company had slipped to a net loss.

Since sending soldiers to Ukraine in February 2022, Yandex—often referred to as “Russia’s Google”—has had difficulty juggling political pressure and the desires of its Western investors. The majority of the Yandex Group will be divested of ownership and control by its Dutch-registered holding company.

Due to a one-time 5.9 billion rouble payment to employees in March 2022, Yandex reported adjusted net income of 2.6 billion roubles but did not provide a comparison.

The first quarter of 2022 saw a net loss of 8.1 billion roubles for Yandex last year.

Investments in advertising technologies, according to the corporation, have been a major driver of revenue growth. Key competitors are less present, according to experts.

Last March, Alphabet’s (GOOGL.O) Google ceased selling online advertising in Russia while continuing to offer some free services, which helped Yandex increase its market share.

Yandex reported that their market share for search and portals increased year over year, averaging 63.3% in the third quarter.

The cost of online shopping and food delivery contributed to a 36% increase in overall operating expenses, according to Yandex.

The business also dominates the ride-hailing sector, and this week it purchased Uber out of a joint venture to take control of its Yandex.Taxi segment entirely.

According to a source close to Yandex, Yandex attempted to depoliticize its business by selling its news feed and homepage to state-controlled rival VK last year.

Since more than a year ago, trading in its Nasdaq-listed shares has been halted. Yandex is suing Nasdaq to stop the company from delisting its stock.