Yandex NV (NASDAQ:YNDX) released the earnings results from its most recently completed quarter early this morning, posting net profits of 4.4 billion roubles ($111 million), a 12% year over year decline. Adjusted net income increased 24% to 3.9 billion roubles ($99.4 million). Revenues rose 28% to 13.1 billion roubles ($331.5 million).

Yandex Midday performance

Key metrics from Yandex’s earnings report

Revenue excluding traffic acquisition costs rose 29% year over year. Adjusted EBITDA rose 34% to 5.9 billion roubles ($114.1 million). Yandex reported an operating margin of 34.4% and an adjusted EBITDA margin of 45.2%. Excluding traffic acquisition costs, the adjusted EBITDA margin was 57.4%.

The company reported an average 60.3% share of the Russian search market, including mobile devices. Yandex saw search queries increase 13% and its number of advertisers climb 20% to surpass 300,000.

Text-based ad revenues made up 93% of Yandex’s total third quarter revenues. Text-based ad revenues from its own websites made up 71% of total revenues and increased 33% year over year. Text-basedad revenues from the company’s own ad network improved 19% and contributed 21% of the company’s total third quarter revenues.

Paid clicks on boy Yandex’s and its partners’ websites rose 19% year over year. The average cost per click increased 8%. Display ad revenue made up 6% of the search giant’s total revenue and increased 6% year over year.

Traffic acquisition costs edged lower from 22% in the same quarter last year to 21.2% in this year’s third quarter. The company cited slower ad network revenue growth compared to ad revenue growth from its own websites.

Yandex tightens guidance

This morning the Russian search engine also said it expects revenues to increase by between 27% and 30% this year. The company’s previous estimate was for a 25% to 30% improvement in revenue.

“Q3 was another strong quarter notable for an acceleration in growth of our owned and operated properties and excellent cost control,” said Yandex CEO Arkady Volozh in a statement. “We launched a number of new products designed to make people’s lives easier and better and continued to provide market-leading advertising technologies to our customers.”

During the September quarter, Yandex also acquired ad technology platform AdFOx and Auto.ru. In addition, the company launched online domestic project marketplace Yandex.Master and relaunched Yandex.Music.