Yandex, Russia’s biggest search company, has posted Q2 earnings, with revenues up 50% over the same quarter in the previous year to $207.2 million, and net income up 76% to $68.4 million.
And as impressive as the numbers sound, the results were just shy of analyst expectations: on average analysts expected revenues of $207.70 million, according to Yahoo Finance, while Bloomberg is reporting differently.
Better news comes in the company’s share of the Russian search market: 60.4% in Q2 2012, says Yandex, citing LiveInternet. As we’ve previously noted, search share has been a concern with heavy competition from Google and others. This appears to be up from the previous quarter (59%), although not back to the high 60s it was at last year.
Search queries are also up, growing 30% from Q2 2011, while the company has increased the number of advertisers to more than 193,000, up 34% from Q2 2011 and up 8% from Q1 2012.
Breaking down the numbers further, Yandex says:
Text-based advertising revenues accounted for 89% of total revenues in Q2 2012 i.e. it was the main driver. Specifically, text-based advertising revenues from Yandex’s own websites accounted for 72% of total revenues during Q2 2012, and increased by 43% compared with Q2 2011. Meanwhile, text-based advertising revenues from the company’s ad network increased 93% compared with Q2 2011 and contributed 17% of total revenues during Q2 2012.
Paid clicks on Yandex’s and its partners’ websites, in aggregate, increased 62% in Q2 2012 compared with Q2 2011. Interestingly, average cost per click is 7% lower compared with Q2 2011, but up 18% compared with Q1 2012. Display advertising revenue, on the other hand, accounted for 9% of total revenues during Q2 2012, an increase 43% compared with Q2 2011.
Finally, online payment commissions accounted for 2% of revenues during Q2 2012, and increased 40% compared with Q2 2011.