Revenues related to the Taxi segment, excluding sales of goods, grew 99% in Q2 2021 compared with Q2 2020 and accounted for 26% of total revenues, at a similar level as in Q2 2020. On a 2-year stack basis revenues related to the Taxi segment, excluding sales of goods grew by 44%. Revenues related to the Taxi segment include revenues from our Ride-hailing, Logistics, Yandex.Eats and Yandex.Drive businesses, but exclude revenues related to sales of goods from Yandex.Lavka. The increase of revenues related to the Taxi segment was attributed to the recovery of our Ride-hailing and Drive businesses driven by the acceleration of both rides and GMV growth (supported, among others, by the low base effect as the negative impact of the COVID pandemic on our ride-hailing operations peaked in Q2 2020) as well as the strong performance of the Logistics business.
Revenues related to sales of goods grew 365% in Q2 2021 compared with Q2 2020 and accounted for 16% of total revenues. Revenues related to sales of goods include revenues from Yandex.Market 1P sales, revenues from Yandex.Lavka, where we use a first-party (1P) business model and act as a direct retailer, and from our Devices business. This growth principally reflects the consolidation of Yandex.Market. On a like-for-like basis (including Yandex.Market in both Q2 2021 and Q2 2020) revenues related to sales of goods grew by 95% year on year mainly due to Yandex.Market 1P revenue growth, and to a lesser extent the strong performance of Yandex.Lavka and Devices businesses.
Other revenues grew 133% in Q2 2021 compared with Q2 2020 and amounted to 9% of total revenues. Other revenues include revenues from Media Services subscriptions, marketplace 3P fees and commissions, Yandex.Cloud, Education, and other services. On a like-for-like basis (including Yandex.Market's commissions and other marketplace revenues in both Q2 2021 and Q2 2020) other revenues grew 108% year-on-year. This growth was primarily driven by subscription revenues of Media Services and expansion of our Cloud businesses, which was partially offset by the decline in Yandex.Market commission revenue on the back of the lower blended take-rates.
Consolidated Operating Costs and Expenses
Our operating costs and expenses consist of cost of revenues, product development expenses, sales, general and administrative expenses (SG&A), depreciation and amortization expenses (D&A). Apart from D&A, each of the above expense categories include personnel-related costs and expenses, relevant office space rental, and related share-based compensation expense. Increases across all cost categories reflect investments in overall growth. In Q2 2021 our headcount increased by 1,859 full-time employees. The total number of full-time employees was 14,850 as of June 30, 2021, up by 14% compared with March 31, 2021, and up 45% from June 30, 2020, which is primarily driven by gradually accelerating pace of hiring, as well as the consolidation of Yandex.Market. On a like-for-like basis the growth of headcount was 28% YoY, which was primarily driven by accelerated pace of hiring in E-commerce (including Yandex.Market, Lavka and Yandex.Eats) as well as by the fast growth of Cloud, Media Services, Logistics and other businesses.
Cost of revenues, including traffic acquisition costs (TAC)
In RUB millions Three months ended June Six months ended June 30, 30, 2020 2021 Change 2020 2021 Change TAC 4,155 6,231 50% 9,514 11,632 22% Total TAC as a % of total revenues 10.0% 7.7% 10.8% 7.5% Costs related to Taxi segment, excluding sales of goods 5,648 11,842 110% 12,399 22,043 78% Costs related to Taxi segment, excluding sales of goods as a % of 13.6% 14.5% 14.0% 14.3% revenues Cost of devices and other goods sold5 2,402 12,398 416% 3,365 22,334 n/m Cost of devices and other goods sold as a % of revenues 5.8% 15.2% 3.8% 14.5% Other cost of revenues 3,707 11,303 205% 6,869 19,806 188% Other cost of revenues as a % of revenues 9.0% 13.9% 7.8% 12.8% Total cost of revenues 15,912 41,774 163% 32,147 75,816 136% Total cost of revenues as a % of revenues 38.4% 51.3% 36.4% 49.1%
(5) Including sales of 1P products on Yandex.Market marketplace.
TAC grew 50% in Q2 2021 compared with Q2 2020 and represented 7.7% of total revenues, down 238 basis points compared with Q2 2020. The year-on-year dynamic of TAC as a share of revenue was primarily driven by a decrease of the share of advertising revenues as a percentage of total revenues as well as the optimization of TAC rates.
Costs related to the Taxi segment, excluding sales of goods increased 110% compared with Q2 2020. The growth was mainly a result of the increase in our corporate Taxi offering, delivery costs attributed to Yandex.Lavka, Logistics and Yandex.Eats and leasing costs attributed to Yandex.Drive, our car-sharing business. We are the principal in transactions with our Taxi corporate clients; therefore, we recognize both revenues and cost of revenues on a gross basis. B2B revenue amounted to 23% of ride-hailing revenues in Q2 2021 (up from 21% in Q1 2021) and grew 94% compared to Q2 2020.
Costs related to devices and other goods sold increased 416% compared with Q2 2020, which was mainly due to the consolidation of Yandex.Market. On a like-for-like basis (including cost of revenues related to Yandex.Market in both Q2 2021 and Q2 2020) costs related to devices and other goods sold increased 100% on the back of increased 1P sales of Yandex.Market as well as strong growth of Yandex.Lavka and our Devices business.
Other cost of revenues in Q2 2021 increased 205% compared with Q2 2020, primarily driven by the consolidation of Yandex.Market. Other costs of revenues include ?osts of Yandex.Market sales, excluding sales of goods, Media Services subscriptions, Zen content and other services. On a like-for-like basis (including cost of revenues related to Yandex.Market in both Q2 2021 and Q2 2020) other costs of revenues were up 75%, principally reflecting increased Yandex.Market sales, excluding sales of goods, as well as increased investments in content within Media Services and Zen.
Operating Expenses
In RUB millions Three months ended June 30, Six months ended June 30, 2020 2021 Change 2020 2021 Change Product development 8,970 11,234 25% 16,898 22,243 32% As a % of revenues 21.7% 13.8% 19.1% 14.3% Sales, general and administrative 12,357 27,476 122% 25,998 50,571 95% As a % of revenues 29.8% 33.8% 29.4% 32.7% Depreciation and amortization 4,052 5,641 39% 8,062 10,898 35% As a % of revenues 9.8% 6.9% 9.1% 7.1% Total operating expenses 25,379 44,351 75% 50,958 83,712 64% As a % of revenues 61.3% 54.5% 57.6% 54.2%
Total operating expenses increased 75% in Q2 2021 compared with Q2 2020. On a like-for-like basis (including Yandex.Market in both Q2 2021 and Q2 2020) total operating expenses increased 58% in Q2 2021 mainly due to an increase in advertising and marketing activities, which supported revenue growth of Search and Portal, Taxi, Media Services and GMV growth acceleration of Yandex.Market. Q2 2021 dynamics was also affected by the low operating costs base in Q2 2020 due to COVID-related cost optimization measures that were undertaken in Q2 2020.
In RUB millions Three months ended June 30, Six months ended June 30, 2020 2021 Change 2020 2021 Change SBC expense included in cost of revenues 138 126 -9% 214 250 17% SBC expense included in product development 2,598 2,592 0% 4,280 6,034 41% SBC expense included in SG&A 1,473 2,144 46% 2,466 4,382 78% Total SBC expense 4,209 4,862 16% 6,960 10,666 53% As a % of revenues 10.2% 6.0% 7.9% 6.9%
Total SBC expense increased 16% in Q2 2021 compared with Q2 2020. The growth primarily reflects new equity-based grants made in 2020-2021 as well as the increased share price of Yandex N.V. and material appreciation of the U.S. dollar against the ruble, largely offset by the high base effect (related to the replacement of cash bonuses by equity compensation for some senior employees in Q2 2020, in the course of the Company's COVID-19 related cost optimization initiatives).
Income/(loss) from operations
In RUB millions Three months ended June 30, Six months ended June 30, 2020 2021 Change 2020 2021 Change Income/(loss) from operations 116 (4,723) n/m 5,305 (4,990) n/m
Loss from operations amounted to RUB 4.7 billion in Q2 2021 compared to income from operations of RUB 0.1 billion in Q2 2020. Including Yandex.Market in both periods, loss from operations in Q2 2020 was RUB 2.6 billion. The decrease reflects the changes in segment mix amid the continuing investments in our rapidly growing new businesses (primarily Yandex.Market, FoodTech and Media Services).
Segment financial results
Search & Portal
(MORE TO FOLLOW) Dow Jones Newswires
July 28, 2021 06:00 ET (10:00 GMT)