The leading Russian search engine and web portal Yandex announced today that its annual revenues increased 130% year-on-year to some $167 million in 2007. The company did $30 million in net income in 2006 and this number could double in 2007.
The revenue breakdown in 2007 remained almost the same as in 2006 when the search/contextual advertisements represented approximately 80 percent and display (banner) advertisements represented the remainder. The company now employs over 1,000 people.
According to various industry estimates, Yandex controls over 60 percent share of searches in Russia and should be ranked the seventh globally ahead of Time Warner Network and Ask Network last December.
This data certainly put Yandex on the radar of international industry analysts and global SEO community.
It looks like Yandex as a company will be rather staying private and paying healthy dividends unless its venture capitalist investors will need to exit. Yandex raised venture capital eight years ago. The consortium of investors led by Baring Vostok Capital Partners invested $5.3 million for 35.7 percent in Yandex in April 2000.
It may be time for its venture capital investors to sell their shares because an investment period of a fund could be close to its end.
I think that we shall know for sure in the next few months if Yandex is going to do an initial public offering (IPO) of shares or not. If the answer is yes, then its IPO could become the largest technology one from Eastern Europe valuing Yandex at several billion U.S. dollars.