Russian tech giant Yandex’s consolidated yearly revenues grew 37% in 2019 from a year earlier, reaching 175.4 billion rubles ($2.83 billion), the company reported this month, according to bne Intellinews.
However, the company’s adjusted net income increased by a more modest 6% to 23.5 billion rubles ($380.3 million).
These results are below what analysts had predicted, and they pushed Yandex’s share price down 4% from recent record highs. Stocks in the tech conglomerate were trading at $46.57 on Tuesday morning trading in New York.
Yandex’s diversification away from advertising revenues intensified, with ad income accounting for 69.4% of total revenues — down from 95.6% in 2016. The shift was led by a surge in income from the taxi segment, which now accounts for nearly 22% of total revenues, compared with just 3% in 2016.
“Taxi segment” refers not only to Yandex.Taxi, the ride-hailing joint venture, which was formed after a merger with Uber in 2017. Yandex’s self-driving cars division (“SDC”) and foodtech businesses (including Yandex.EATs, Yandex.Chef, a meal kit subscription service, and Yandex.Lavka, a hyperlocal grocery delivery service) are also included.
Yandex’s other revenues are also on the rise. They grew 127% year-on-year in Q4 2019, accounting already for 11% of total revenues. The growth was primarily driven by the car-sharing service Yandex.Drive, subscription revenues of Media Services and the company’s IoT activities.