Platform Performance and User Engagement - The company's platform has over 260 million ratings and reviews, with approximately 74% of reviews submitted being recommended as of December 31, 2023[22] - Automated recommendation software analyzes billions of data points, recommending 74% of reviews while de-emphasizing 18% of less reliable content[58][60] - Approximately 9% of reviews were removed as of December 31, 2023, for violating terms of service[66] - Consumer alerts program warns users of suspicious review activity, compensated reviews, and questionable legal threats[64][65] - Community Managers and Yelp Elite Squad foster user engagement through events, local promotions, and recognition of high-quality contributors[71][73] - The company's ability to attract, retain, and engage visitors on its platform is critical to its business and financial success[136] - The company's success depends on attracting consumer traffic with valuable content, which relies on user contributions and perceptions of relevance, helpfulness, and reliability[169][171] - Negative publicity, including allegations of manipulated reviews or biased content, could harm the company's brand and business[175] Advertising and Revenue - Advertising accounted for 95% of the company's revenue in 2023, consistent with the previous two years[34] - Yelp Ads generate a majority of the company's advertising revenue, primarily through performance-based ads priced on a CPC basis[35] - Yelp offers multi-location ad products, including Showcase Ads, Spotlight Ads, and Yelp Audiences, which extend campaign reach to high-intent audiences off-platform[35] - The company's Upgrade Package is its most popular product after Yelp Ads, offering features like competitor ad removal and Business Highlights[35] - The company conducted an average of 19 million ad auctions per day in 2023, optimizing ad delivery through proprietary technology[24] - The company plans to invest in new ad formats and leverage neural networks to improve ad efficiency in 2024[29] - Proprietary ad targeting technology leverages neural networks evaluating over 4,000 signals to deliver hyper-relevant ads in less than half a second[53] - Auction system conducts 19 million auctions daily, predicting demand for 16 million ad categories and optimizing bids 96 times per day per advertiser[55] - The company is focusing on driving sales through its Self-serve and Multi-location channels, which are more margin-accretive than Local sales[31] - Local sales historically comprised the largest share of advertising revenue, but the company is shifting focus to Self-serve and Multi-location channels[43] - Multi-location advertising budgets represent a significant growth opportunity, with plans to expand full-funnel ad products and attribution solutions in 2024[44] - The company's average CPC increased in 2023 compared to 2022 due to strong advertiser demand combined with less robust consumer activity[123] - The company generates a substantial majority of its revenue from advertising delivered on mobile devices, and anticipates this trend to continue[164] - Apple's changes to iOS in 2021 reduced the company's ability to target and measure advertising, potentially limiting future expansion of relevant advertising products[167] - The company must balance advertiser demand for new products with its commitment to prioritizing user experience over short-term monetization[166] Technology and Innovation - The company uses machine learning, AI, and large language models to enhance ad targeting, content moderation, and search capabilities[51] - Mobile platform supports both iOS and Android, with Yelp for Business app providing daily metrics, page view analytics, and ad management[52] - Platform hosted on AWS with high availability, leveraging third-party cloud services for content delivery, storage, and ad serving[56] - The company is increasingly incorporating AI into its platform, but risks include operational failures, legal liabilities, and reputational harm if AI-generated content is perceived as biased or inaccurate[203] - Open source software used in products may expose the company to litigation, licensing costs, or re-engineering challenges[202] - The company is working to improve real-time bidding and click prediction systems by capturing additional data signals[29] - The company plans to enhance its Request-a-Quote feature using advanced technologies to create more personalized request flows in 2024[28] - Yelp Fusion enables developers to integrate Yelp content into products, with partnerships including Apple, Audi, and BMW[40] Competition and Market Challenges - Company faces competition from AI-driven search engines, social media platforms, and traditional advertising channels[80] - Competitors may have advantages such as greater market share, established user bases, and more resources, which could impact the company's ability to compete effectively[81] - The company's success depends on factors like product popularity, content quality, ad targeting capabilities, and audience engagement relative to competitors[83] - Competition intensifies with new technologies (e.g., AI) and market entrants, including major players like Google and Meta leveraging their resources and market positions[150][151] - Google's integration of AI-generated responses and promotion of its own local products in search results could negatively impact the company's traffic and business operations[145] - Potential challenges from changes in app marketplace policies, such as Google's Chrome browser updates limiting data collection for ad targeting[146] - Dependence on third-party partnerships (e.g., Apple Maps, AWS) for traffic, data, and infrastructure, with risks of disruptions or termination impacting operations[156][157] - The company's traffic and app downloads have declined following changes to the display of content in Apple Maps, and it expects this decline to continue[138] Financial Performance and Strategy - The company aims to reduce stock-based compensation expense to less than 8% of revenue by the end of 2025[33] - Revenue is typically lowest in the first quarter and increases sequentially through the third quarter, with fourth quarter revenue similar to the third and first quarter of the subsequent year[114] - Ad budgets for multi-location customers typically increase throughout the year, peaking in the fourth quarter, while SMB ad budgets tend to decrease in the fourth quarter[114] - Traffic is typically weakest in the fourth quarter of the year[114] - Adverse macroeconomic conditions have had, and may continue to have, a significant adverse impact on the company's business and revenue[116] - Weakness in advertiser demand in the RR&O categories was observed in the second half of December 2023 and into 2024 due to macroeconomic pressures[126] - Consumer use of the company's mobile app and web traffic remained below pre-pandemic 2019 levels in 2023 due to economic uncertainty and inflationary pressures[122] - The company's growth strategy includes providing the most trusted local search and discovery platform and optimizing advertiser value through advanced technology[131] - Traffic growth rate is expected to slow and decline due to business maturation and high penetration rates in major U.S. and Canadian markets[141] - Company relies heavily on Internet search engines (e.g., Google) and app marketplaces (e.g., Apple App Store, Google Play) for traffic, with potential risks if these platforms reduce prominence of its links[142][145] - Testing of SEM (Search Engine Marketing) in 2023 to acquire traffic for Services categories, with plans to expand efforts in 2024[142] - Fluctuations in operating results may occur due to macroeconomic conditions, changes in advertiser budgets, and shifts in consumer behavior[207] - The company tracks performance metrics using internal tools, which may contain errors or limitations, potentially distorting reported data and affecting long-term strategies[209] Employee and Workforce Management - As of December 31, 2023, the company had 4,713 employees globally, with 4,872 including those on leave[94] - The company operates on a fully remote working model, which has reduced office footprint and operating costs while providing flexibility to employees[95] - The company conducted employee engagement surveys and implemented changes in 2024, including enhanced retirement plans and additional benefits[98] - The company improved diversity data collection processes in 2023, with underrepresented minority groups including Black, Latinx, Native American, and Native Hawaiian employees[104][106] - The company has 21 employee resource groups (YERGs) with nearly half of the employee population as members, fostering inclusion and belonging[107] - The company focuses on attracting talent through distributed workforce models, competitive compensation, and equity incentive plans[108][110] - Shift in compensation mix from equity to cash may impact employee retention and motivation, with increased hiring costs and competition for skilled personnel[148] - Risks from external factors (e.g., public health crises, natural disasters) affecting employee productivity and operations, especially with a distributed workforce[159] Partnerships and Collaborations - Yelp's partnership with Grubhub facilitates food orders for pickup and delivery, with revenue recognized on a net basis through December 31, 2023[38] - Yelp Guest Manager, a subscription-based suite for restaurants, includes tools like online reservations and waitlist management[40] - Yelp Fusion enables developers to integrate Yelp content into products, with partnerships including Apple, Audi, and BMW[40] - Dependence on third-party partnerships (e.g., Apple Maps, AWS) for traffic, data, and infrastructure, with risks of disruptions or termination impacting operations[156][157] - Potential revenue impact from negative advertiser experiences with resale partners or disputes over contractual obligations[158] ESG and Corporate Responsibility - The company has established ESG goals, including advancing racial and gender equality and reducing its carbon footprint, but failure to achieve these goals could harm its reputation and financial performance[186] - The company faces risks related to evolving ESG standards, which may result in inconsistent or non-comparable data and potential revisions to current goals or reported progress[187] - The company prioritizes consumer experience over short-term gains, which may negatively impact relationships with advertisers but is seen as essential for long-term success[183][185] Operational Risks and Challenges - Service disruptions or outages could damage the company's reputation, lead to user loss, and negatively impact operations, especially if users cannot access the platform as expected[188][189] - Capacity constraints and infrastructure changes may make it difficult to maintain platform availability during peak usage times as traffic increases[190] - The company relies on third-party service providers like AWS, and large-scale outages affecting these providers could disrupt system functionality[190] - Cyber-attacks and security breaches pose significant risks, potentially leading to data loss, reputational damage, and financial harm[195][196][197] - Intellectual property risks include challenges in protecting trademarks, patents, and domain names, which could harm the company's brand and competitive position[200][201][206] - Acquisitions and investments may divert management attention, result in stockholder dilution, and disrupt operations, with potential challenges in integration and realizing expected benefits[177][180]

Shares of Yelp (YELP -12.81%) were getting a 1-star rating from investors after the review site posted another underwhelming earnings report. The company essentially matched estimates in its fourth-quarter earnings report, but issued weak guidance for 2024.As of 1:11 p.m. ET, shares were down 13.6%. Nothing to yelp aboutYelp's results for the quarter were mostly in line with analyst expectations. Revenue in the period rose 11% to $342.4 million, which edged out the consensus at $341.3 million.Growth in 2023 ...

For the quarter ended December 2023, Yelp (YELP) reported revenue of $342.38 million, up 10.8% over the same period last year. EPS came in at $0.37, compared to $0.28 in the year-ago quarter.The reported revenue represents a surprise of +0.47% over the Zacks Consensus Estimate of $340.79 million. With the consensus EPS estimate being $0.37, the company has not delivered EPS surprise.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Financial Data and Key Metrics Changes - Net revenue increased by 12% year-over-year to a record $1.34 billion in 2023 [6] - Net income nearly tripled year-over-year to $99 million, with a net income margin of 7% [6] - Adjusted EBITDA grew to $330 million, resulting in a record adjusted EBITDA margin of 25% [6][14] Business Line Data and Key Metrics Changes - Advertising revenue from services businesses grew 14% year-over-year to a record $793 million [7] - Advertising revenue from restaurants, retail, and other businesses increased by 10% year-over-year to a record $483 million [8] - Monetization of leads in services increased to approximately 30%, up 5 percentage points from 2022 [7] Market Data and Key Metrics Changes - Home services category revenue grew approximately 20% year-over-year, compounding at nearly 20% annually since 2019 [7] - Request to quote requests grew by approximately 5% year-over-year in Q4 [7] - Overall traffic levels remained flat in 2023, but user-generated reviews increased by 8% to 287 million [9] Company Strategy and Development Direction - The company plans to focus on the services category as a major part of its product-led strategy in 2024 [10][11] - Investments will be made to enhance consumer experience and drive more quality leads to advertisers [11] - The company aims to reduce stock-based compensation as a percentage of revenue to less than 8% by the end of 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management noted weakness in the RR&O categories due to macroeconomic factors, including high input costs and inflationary pressures [18][34] - For Q1 2024, net revenue is expected to be in the range of $330 million to $335 million, with full-year guidance of $1.42 billion to $1.44 billion [18] - Adjusted EBITDA for Q1 is anticipated to be between $47 million and $52 million, reflecting a shift from equity to cash compensation [19] Other Important Information - The company repurchased nearly $1.4 billion worth of shares since the program's inception, including $200 million in 2023 [17] - The Board of Directors authorized an additional $500 million for share repurchases in February 2024 [17] Q&A Session Summary Question: Impact of search marketing initiatives on new users and traffic - Management highlighted strong advertiser demand, particularly within services, and noted that SCM initiatives could introduce new users to the platform [20][23] Question: Future goals for monetizing leads in services - Management expressed confidence in further increasing the monetization percentage beyond 30% through continued investment in ad technology and Request-a-Quote improvements [20][24] Question: Product roadmap focus in services - Management indicated that services revenue was up 14% year-over-year and emphasized ongoing enhancements to Request-a-Quote and ad matching technology [27][28] Question: Recovery expectations for RR&O categories - Management acknowledged current weakness in RR&O due to high input costs and inflation but remained optimistic about long-term growth [31][34] Question: Stock-based compensation changes for 2024 and beyond - Management explained that stock-based compensation would be linear throughout the year, with a significant reduction in grants expected [36][37] Question: Scaling SCM efforts in home services - Management stated that they are still in the experimentation stage for SCM and have increased spend modestly, with plans to provide updates as they progress [40][43]

Online business review forum Yelp has added more (artificial intelligence) AI-powered search tools.“For years, we’ve leveraged AI to help reduce consumers’ decision paralysis — from spotlighting the most popular dishes and drinks, to using LLMs (large language models) to power review highlights for more nuanced searches,” the company said Tuesday (Jan. 30) in a news release. “Now, new AI-powered business summaries leverage LLMs to parse recent reviews and describe what you can expect at the business, helpin ...

Yelp is releasing more than 20 new features and updates across the platform that elevate moments of discovery and connection for its users.Yelp is releasing more than 20 new features and updates across the platform that elevate moments of discovery and connection for its users.SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE:YELP), the company that connects people with great local businesses, today is announcing its Winter Product Release with more than 20 new features that elevate the Yelp experience for bo ...

SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, announced that on January 16, 2024, the Compensation Committee of Yelp’s Board of Directors granted inducement restricted stock unit awards covering 28,916 shares of Yelp’s common stock to five new non-executive employees to induce them to accept employment with Yelp. Each award was granted under the Yelp Inc. 2023 Inducement Award Plan and vests over a four-year period, subject to continued ...

SAN FRANCISCO--(BUSINESS WIRE)--Yelp, the company that connects people with great local businesses, today announced its highly anticipated 11th annual list of the Top 100 Places to Eat in the U.S., celebrating the best eateries across the nation. As Yelp celebrates its 20th anniversary later this year, the brand is spotlighting the stories, trends and data that show how Yelp helps people more meaningfully connect with their local community. Topping this year's list in the No. 1 spot is Tumerico in Tucson ...

Scott Olson/Getty Images News 2024 is going to be a stock pickers' market. So far in the first few trading weeks of the year, the major market indices have swung between gains and losses, but underneath the hood, many stocks especially in the tech sector have swung considerably (EV stocks have tanked, while software and internet names have largely hung on to their December rallies). The way to beat the markets this year is to be choosy on stocks that have very specific upside catalysts as well as an app ...

Yelp CEO Jeremy Stoppelman. Yelp is one of the few internet companies of its generation still run by its founder. Photo: Amy Osborne/Associated PressBuying growth is rarely a cheap concept, especially for small tech companies that lack the pocketbooks of their much larger peers. Yelp knows this well. Founded 19 years ago as a pioneer in the field of online reviews for local businesses, Yelp has established an Internet advertising business now generating more than $1.2 billion a year in revenue. That is a 10 ...