As of June 30, 2021, Yandex had cash, cash equivalents and term deposits of RUB 208.2 billion (USD2,876.6 million), including cash, cash equivalents and term deposits of Yandex.Taxi in total amount of RUB 20.9 billion (USD288.5 million).

Net cash flow used in operating activities for Q2 2021 was RUB 4.9 billion (USD67.3 million) and capital expenditures were RUB 13.7 billion (USD189.1 million).

Redeemable noncontrolling interests presented in our unaudited condensed consolidated balance sheets relate to the equity incentive arrangements we have made available to the senior employees of the Classifieds segment, pursuant to which such persons are eligible to acquire depositary receipts, or receive options to acquire depositary receipts, which entitles them to economic interests in the respective business unit subsidiaries.

The total number of shares issued and outstanding as of June 30, 2021 was 357,380,344, including 321,681,669 Class A shares, 35,698,674 Class B shares, and one Priority share and excluding 1,058,810 Class A shares held in treasury and all Class C shares outstanding solely as a result of the conversion of Class B shares into Class A shares. Any such Class C shares will be cancelled.

There were also employee share options outstanding to purchase up to an additional 3.0 million shares, at a weighted average exercise price of USD44.17 per share, 1.7 million of which were fully vested; equity-settled share appreciation rights (SARs) for 0.1 million shares, at a weighted average measurement price of USD32.72, all of which were fully vested; restricted share units (RSUs) covering 15.7 million shares, of which RSUs to acquire 5.2 million shares were fully vested; performance share units (PSUs) for 0.4 million shares and synthetic options for 2.1 million, 0.3 million of which were fully vested. Equity awards in respect of business unit subsidiaries are described under Redeemable noncontrolling interests above.

Impact of the COVID-19 Pandemic

In Q2 2021 we have seen a continuing strengthening of the Russian economy as well as gradual recovery of consumer demand across our key markets. From a lower base of Q2 2020 as a result of the pandemic, we have seen improved financial performance in our key businesses, including online advertising and ride-hailing. We expect the trends to normalize in the following quarters as the low base effect fades. The businesses that saw an acceleration of demand during the pandemic continued to demonstrate solid growth trends on the back of fewer COVID-19 restrictions, including our FoodTech businesses, Yandex.Market marketplace and Media Services. We believe this is related to the change in consumer behavior and habits, and low penetration of these services in Russia. With regards to our financial position as of the end of June 30, 2021, our analysis of the effect from COVID-19 on goodwill, non-current assets and redeemable non-controlling interests shows no measurable impact. The development of the situation with respect to COVID-19 may also lead to changes in estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates.

Conference Call Information

Yandex's management will hold an earnings conference call on July 28, 2021 at 8:00 AM U.S. Eastern Time (3:00 PM Moscow time; 1:00 PM London time).

We recommend using the dial-in option if you plan to ask questions. In this case please dial-in at least 10 minutes prior to the call start time (using dial-in number and confirmation code stated below).

To access the conference call live, please dial:

US: +1 929 477 0324

UK/International: +44 (0) 330 336 9434

Russia: 8 10 800 2867 5011

Passcode: 1800526

A live and archived webcast of this conference call will be available at

https://www.webcast-eqs.com/yandex20210728

Following the call, a webcast replay will be available at the Yandex Investor Relations website at https://ir.yandex /events-and-presentations

ABOUT YANDEX

Yandex (NASDAQ and MOEX: YNDX) is a technology company that builds intelligent products and services powered by machine learning. Our goal is to help consumers and businesses better navigate the online and offline world. Since 1997, we have delivered world-class, locally relevant search and information services. Additionally, we have developed market-leading on-demand transportation services, navigation products and other mobile applications for millions of consumers across the globe. Yandex, which has more than 30 offices worldwide, has been listed on the NASDAQ since 2011 and on the MOEX since 2014.

More information on Yandex can be found at https://ir.yandex/.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve risks and uncertainties. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding our future financial and business performance, our business and strategy and the impact of the COVID-19 pandemic on our industry, business and financial results, are forward-looking statements. The words "anticipate," "believe," "continue," "estimate," "expect," "guide," "intend," "likely," "may," "will" and similar expressions and their negatives are intended to identify forward-looking statements. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements include, among others, the impact of the ongoing COVID-19 pandemic and regulatory and business responses to that crisis, macroeconomic and geopolitical developments affecting the Russian economy or our business, changes in the political, legal and/or regulatory environment, competitive pressures, changes in advertising patterns, changes in user preferences, technological developments, and our need to expend capital to accommodate the growth of the business, as well as those risks and uncertainties included under the captions "Risk Factors" and "Operating and Financial Review and Prospects" in our Annual Report on Form 20-F for the year ended December 31, 2020 and "Risk Factors" in the Shareholder Circular filed as Exhibit 99.2 to our Current Report on Form 6-K, which were filed with the U.S. Securities and Exchange Commission (SEC) on April 1, 2021 and November 18, 2019, respectively, and are available on our investor relations website at https://ir.yandex/sec-filings and on the SEC website at https://www.sec.gov/. All information in this release and in the attachments is as of July 28, 2021, and Yandex undertakes no duty to update this information unless required by law.

USE OF NON-GAAP FINANCIAL MEASURES

To supplement the financial information prepared and presented in accordance with U.S. GAAP, we present the following non-GAAP financial measures: ex-TAC revenues, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted net income margin, financial results on a like-for-like basis including Yandex.Market. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP financial measures to the nearest comparable U.S. GAAP measures", included following the accompanying financial tables. We define the various non-GAAP financial measures we use as follows: ? Ex-TAC revenues means U.S. GAAP revenues less total traffic acquisition costs (TAC) ? Adjusted EBITDA means U.S. GAAP net (loss)/income plus (1) depreciation and amortization, (2) SBC expense, (3)

interest expense, (4) income tax expense/(benefit), (5) one-off restructuring expenses, (6) accrual of expense

related to the contingent compensation payable to employees in connection with certain business combinations, (7)

loss from equity method investments, less (1) interest income and (2) other income, net ? Adjusted EBITDA margin means adjusted EBITDA divided by U.S. GAAP revenues ? Adjusted net income means U.S. GAAP net (loss)/income plus (1) SBC expense adjusted for the income tax attributable

to the SBC expense, (2) accrual of expense related to the contingent compensation payable to certain employees in

connection with certain business combinations, (3) one-off restructuring expenses adjusted for the related

reduction in income tax, (4) amortization of debt discount related to our convertible debt adjusted for the related

reduction in income tax, (5) foreign exchange losses/(gains) adjusted for (reduction)/increase in income tax

attributable to foreign exchange losses/(gains) ? Adjusted net income margin means adjusted net income divided by U.S. GAAP revenues ? Financial results on a like-for-like basis including Yandex.Market means revenues, ex-TAC revenues, income from

operations, adjusted EBITDA and net income of the combined results of operations as if the acquisition of

Yandex.Market completed as of January 1, 2020. These amounts have been calculated after the elimination of revenue

related to intercompany transactions and adjusting the results of Yandex.Market to reflect amortization associated

with intangibles acquired and related income tax results

These non-GAAP financial measures are used by management for evaluating financial performance as well as decision-making. Management believes that these metrics reflect the organic, core operating performance of the company, and therefore are useful to analysts and investors in providing supplemental information that helps them understand, model and forecast the evolution of our operating business.

(MORE TO FOLLOW) Dow Jones Newswires

July 28, 2021 06:00 ET (10:00 GMT)