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Yandex is Russia's largest internet company: a search engine, ride-hailing and delivery services, e-commerce, autonomous driving technology and a cloud platform. Following the separation of the international and Russian businesses, the Russian part operates as an independent group whose shares trade on the Moscow Exchange under the ticker YDEX.
The company is built as several businesses at different stages of maturity under one roof. Search and advertising are the mature and profitable core: the advertiser pays for an impression or a click, and Yandex's share of search makes it a must-have channel for the Russian advertising market. It is this segment that funds everything else.
The second layer is services with real operational work behind them: ride-hailing, food and grocery delivery, car sharing. Revenue here is large but margins are thin, because behind every trip there are real drivers, couriers and cars. Scale is the competitive advantage here: the more orders there are, the shorter the wait and the less each one costs.
The third is the businesses that for now mostly consume cash: the cloud platform, autonomous transport, devices and media services. They are valued not on current profit but on what they could become.
The search engine and advertising products are the group's profitable core.
Ride-hailing, car sharing, scooter rental: mass-market services with thin margins and economies of scale.
The marketplace, grocery and food delivery — a business that is growing fast and requires investment.
The cloud platform, devices with a voice assistant, media services, autonomous driving technology.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The company develops a search engine and advertising products, ride-hailing and delivery services, a marketplace, a cloud platform, media services and autonomous driving technology. Most of its income comes from search advertising.
From advertising in search and on its own services: the advertiser pays for an impression or a click. This is the group's most profitable segment, and it is the one that funds the development of the other businesses.
The Russian services passed to an independent group listed on the Moscow Exchange, while some of the international projects remained with the former structure. For an investor in the Russian market this means that the stock now reflects the Russian business specifically.