Yandex, the Russian internet firm, announced on Thursday that its annual revenues exceeded 1 trillion roubles ($11.22 billion) for the first time. This milestone comes after a significant restructuring of the business.
A view shows the headquarters of technology company Yandex in Moscow
In July, a Russian consortium finalized a $5.4 billion deal to acquire Yandex’s Russia-based assets. These assets were previously held by Yandex’s Dutch parent company, which was listed on Nasdaq. This transaction marked the largest corporate exit since Russia’s invasion of Ukraine in February 2022, although it occurred at a substantial discount.
Revenue for 2024 grew by 37% year-on-year, reaching 1.1 trillion roubles. Yandex anticipates continued strong growth, projecting at least 30% revenue growth in 2025. The company’s Moscow-listed shares saw a 1.3% increase on Thursday. “We operate in large and fast-growing markets, in many of which we hold leading positions,” Yandex stated. “This opens significant growth prospects for us for many years to come.”
Russia remains Yandex’s primary market, where it dominates search and advertising. The company also has offices in several former Soviet countries and operates its ride-hailing service in a few African and European countries. However, the business split has largely curtailed Yandex’s access to the U.S. market.
Since its formation during the late 1990s dotcom boom, Yandex has prioritized growth by reinvesting profits in its various tech services, including e-commerce and cloud services. Under its new ownership, Yandex proposed paying dividends for the first time in July.
The company’s management recommended dividends of 80 roubles per share for the full year 2024, following interim dividends distributed last year. Adjusted net profit for the full year rose by 94% year-on-year, reaching 100.9 billion roubles.
Looking ahead, Yandex anticipates that its capital expenditures as a percentage of revenues will decrease year-on-year in 2025, due to the growth in scale of the business.
The corporate restructuring resulted in Yandex’s former Dutch parent company, now renamed Nebius Group, retaining capital-intensive, internationally focused businesses within the cloud, autonomous driving, and education technology sectors. Nebius aims to become a key player in building the infrastructure that supports artificial intelligence, under the leadership of Yandex co-founder and former CEO Arkady Volozh.
($1 = 89.1000 roubles)
