Yandex Earnings Beat, Market Share Concerns AnalystsVW Staff
Yandex NV (NASDAQ:YNDX) announced its Q1 earnings today, indication revenues were up 51% to $200.3million along with a 53% increase in net income to $43 million.
Yandex is the leading search engine in Russia, however, its market share is beginning to concern investors. Last year the firm reported that it held 65% of the market share in Russia, while this year, it maintained only 59% of the total market, losing some ground to Google. However, the overall market in Russia is increasing, hence the growth in Yandex earnings The firm continues to expand into new segments as well as entirely new markets. This includes the powerful Rambler ad network as well as expansion into Turkey, where it launched a mapping application.
Market leader Google Inc (NASDAQ:GOOG), by comparison, had gross revenue increase only 24%, to $10.7 billion. However, their net income increased 61% to $2.9 billion in the first quarter. This shows that top line revenue growth can be greater when looking at emerging players in this space; however, this revenue comes with a cost, as expenses to acquire new visitors and enter new markets erode margins.