Nebius Group NV Q4 FY2021 earnings call

• Top priorities for 2022 are e-commerce, Yandex.Plus, and FinTech. On e-commerce, focusing on improving operations, delivery channels, and unit economics.
• International potential: Yandex has invested in R&D in Russia, has proprietary technology and proven business models, and is considering international expansion guided by core principles.
• Sustainability: 2021 saw publication of first sustainability report, appointment of Chief Sustainability Officer, and joined Dow Jones Sustainability World Index.
• 2021 revenue was RUB356 billion, ahead of guidance, with advertising, mobility, media, and delivery services performing well. Mobility focused on growth and efficiency, e-commerce GMV grew almost 3x, and cash burn for e-commerce was less than guidance.

Total e-commerce GMV for the year grew almost 3x to RUB160 billion. Yandex.Plus had 12 million subscribers. Taxi rides in 2021 were 2.4 billion. Revenue of Yandex.Delivery grew 4x, devices 2.6x. Advertising revenues exceeded internal expectations. Mobility segment focused on growth and efficiency. E-commerce GMV grew almost 3x, with key metrics like fulfillment diesel structure, active merchants, and assortment seeing significant growth.

• Total group revenues in 2022 expected to be between RUB490 billion and RUB500 billion.
• Search and Portal ruble-based revenue to grow mid-to-high teens, adjusted EBITDA margin stable.
• Mobility GMV expected RUB700 billion to RUB720 billion in 2022, adjusted EBITDA margin to expand by up to 50 basis points.
• E-commerce GMV to double in 2022, with cash burn increase limited to 20% max.
• CapEx excluding campus expected at low teens of revenue, including campus at mid-teens.
• Liquidity: Finished 2021 with $1.4 billion in cash after Uber transaction.

Q: Slava Degtyarev asked about e-commerce cash burn composition and Rovers competitive landscape.

A: Alexander Balakhnin discussed e-commerce cash burn allocation focusing on delivery quality and assortment, while Vadim Marchuk talked about Rovers being in a white space with Yandex ahead in tracking Rovers.

Q: Cesar Tiron inquired about Search and Portal guidance and e-commerce competition.

A: Vadim Marchuk noted January trends comparable to Q4, and Alexander Balakhnin said competitors are well-funded with stable pricing competition.

Q: Ulyana Lenvalskaya asked about ride-hailing EBITDA margin and other business units.

A: Yevgeny Senderov expected further EBITDA margin improvement in ride-hailing, and Svetlana Demyashkevich highlighted e-commerce, Yandex.Plus, and FinTech as top priorities for other business units.

Q: Vladimir Bespalov questioned e-commerce GMV and market strategy.

A: Alexander Balakhnin addressed GMV migration and Vadim Marchuk discussed Yandex's advantages like Yandex.Plus and logistics infrastructure.

Q: Luke Holbrook asked about e-commerce category mix and investment spend.

A: Alexander Balakhnin talked about fashion and kids category expansion and investment phasing.

Q: Dmitry Vlasov inquired about e-commerce unit economics and Express Delivery.

A: Alexander Balakhnin and Vadim Marchuk discussed unit economics balance and Express Delivery progress.

Q: Catherine O'Neill asked about EBITDA losses and fintech investment.

A: Svetlana Demyashkevich and Alexander Balakhnin spoke about EBITDA loss horizons and fintech investment focus