VK reports 21% revenue growth for the first nine months of 2024

Network infrastructure for digital services

VK increased revenue by 21% year on year to RUB109.6 billion in the first nine months of 2024. Third-quarter revenue reached RUB39.4 billion, up 19%. The quarterly result exceeded the RUB38.8 billion Interfax consensus forecast. Online advertising remained the principal contributor to the group’s revenue growth.

Online advertising generated RUB65.9 billion in January–September, increasing 19%. Revenue from small and medium-sized advertisers rose 27%, while video-advertising revenue on VK platforms doubled. Non-advertising revenue grew 25% to RUB43.8 billion. VK released its third-quarter operating results and nine-month segment information on 21 November 2024.

VK technology group

Nine-month performance by operating segment

Social platforms and media content remained VK’s largest segment. EdTech growth reflected demand for Skillbox and Uchi.ru courses and the consolidation of Uchi.ru and Tetrika. Segment revenue for the nine months was:

Social platforms and media content: RUB72.4 billion, up 22.1%.
EdTech: RUB12.9 billion, up 15.4%.
VK Tech: RUB7.7 billion, up 60.1%.
Ecosystem services and other business lines: RUB17.5 billion, up 14.5%.

VK Cloud and VK WorkSpace supported VK Tech’s expansion: their revenue increased 70.4% and 117.5%, respectively. Mail.ru Email and Cloud Mail revenue rose 10%, contributing to the ecosystem segment alongside the effect of acquiring YCLIENTS in December 2023. The group’s quarterly update provides the segment information.

Moscow riverfront and business district — Moscow urban landscape

Earlier reporting and infrastructure investment

VK had published its unaudited first-half IFRS results on 8 August 2024. First-half revenue was RUB70.2 billion, up 23% year on year. Advertising contributed RUB42.0 billion, increasing 20%, while non-advertising revenue reached RUB28.2 billion, up 27%. Second-quarter revenue was RUB36.4 billion, an increase of 21%. VK Cloud’s first-half revenue grew 62.2%, while VK WorkSpace communication solutions grew 2.2-fold.

During the first half, VK continued developing its data-processing-centre network and introduced unified infrastructure management for its content platforms and social networks through its one-cloud platform. Investment also covered product development, content, recruitment, technical equipment and new technologies. The company implemented machine-learning models to protect social networks and content platforms against automated activity and distributed denial-of-service attacks.