“Yandex” in the first quarter of 2015 increased its revenue and reduced profit

For the first 3 months of 2015, Yandex's revenue increased by 13% (12.3 billion rubles), and net profit declined by 12% (2.2 billion rubles), compared to the same period last year.

This is due, primarily, to ongoing cost optimization in the largest domestic IT company. The final report is published in the company's blog .

Despite the difficult macroeconomic environment, we achieved good financial performance and increased sales of contextual advertising on Yandex websites by 14%

These are the words of Arkady Volozh, confirming that in a growing contextual advertising market, a company can feel confident even in spite of the instability introduced by a volatile exchange rate.

Sberbank CIB analysts (Sberbank of Russia investment fund) suggest that: “In order to compensate for the weakness of the ruble and maintain its competitiveness as an employer in the world, we believe Yandex has increased salaries for key developers of its products. We also expect a significant increase in rental costs as a result of expanding office space, while rental rates are fixed in dollars. ”
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In general, the company spent 27.1% of its revenue on teams working on Yandex products. In the first three months of the year, Yandex also attracted 60 new developers and a total team of programmers in the company grew to 3,390 people.

Despite all this, the net profit of the search engine was higher than analysts' forecasts, and the first quarter itself may be the worst of the year. Although Yandex does not overestimate its own capabilities further by year, objectively the worst for the Russian IT giant is over.