Nebius Group NV Q4 FY2020 earnings call

• Yandex.Plus subscribers reached 6.8 million at end of 2020, approaching 8 million in early 2021. - Total e-commerce GMV grew three-fold in 2020 to over RUB 56 billion, with Q4 growth 127%. - Search share in Q4 2020 was 59.7%, fixed CPE model for advertisers gaining traction. - Taxi group diversified into new verticals like food delivery and logistics. - Yandex.Market rebranding completed, with plans for fast growth in 2021.

Search and Portal: Total search share reached a new record of 59.7% in Q4 2020, with search being a key driver for advertising revenue recovery. Taxi: Taxi group revenues increased by 54% year-on-year in Q4 2020, driven by FoodTech and logistics. Yandex.Market: Revenue increased 17% year-on-year in Q4 2020, but adjusted EBITDA loss was RUB 3 billion. Media Services: Revenue grew 118% year-on-year in Q4 2020, with subscription-based revenues more than doubling. Cloud: Business continued rapid expansion, reaching RUB 1 billion in revenue in 2020, growing 4.5 times year-on-year.

Assumes no further pandemic escalation, expects group revenues in 2021 to be between RUB 305 billion and RUB 320 billion. Sees online advertising market growth in mid-teens, expects Yandex Market and e-commerce GMV including Lavka and grocery GMV from Yandex.Eats to grow 2.5 times in 2021. Will increase investments in logistics infrastructure, last mile delivery, etc.

Pandemic resurgence could impact economic recovery and business growth. Intense competition in e-commerce and other segments may affect market share. Logistics and delivery cost pressures due to factors like courier shortages and harsh weather.

Q: Cesar Tiron asked about up-trends in Q1 and e-commerce integration issues.

A: Greg Abovsky said advertising trends in Q1 are solid, e-commerce Q4 was transitional with rebranding, Q1 shows reacceleration.

Q: Slava Degtyarev asked about self-driving milestones and e-commerce vision.

A: Tigran Khudaverdyan said self-driving has 160 cars with 6 million autonomous miles, e-commerce has various assets and aims for leadership.