[Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Yelp's unaudited condensed consolidated financial statements for Q1 2024 report a **$14.2 million** net income, a significant improvement from a **$1.2 million** net loss in Q1 2023 Condensed Consolidated Statements of Operations Highlights (Q1 2024 vs Q1 2023) | Financial Metric | Q1 2024 (in $ thousands) | Q1 2023 (in $ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Net Revenue** | $332,752 | $312,438 | +6.5% | | Income (loss) from operations | $11,217 | $(6,587) | N/A | | **Net income (loss)** | $14,154 | $(1,178) | N/A | | **Diluted EPS** | $0.20 | $(0.02) | N/A | Condensed Consolidated Balance Sheet Highlights (As of March 31, 2024) | Balance Sheet Item | March 31, 2024 (in $ thousands) | December 31, 2023 (in $ thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $296,045 | $313,911 | | Total current assets | $606,900 | $624,216 | | **Total assets** | $993,477 | $1,014,723 | | Total current liabilities | $191,296 | $175,864 | | **Total liabilities** | $271,504 | $265,189 | | **Total stockholders' equity** | $721,973 | $749,534 | Condensed Consolidated Statements of Cash Flows Highlights (Q1 2024 vs Q1 2023) | Cash Flow Item | Q1 2024 (in $ thousands) | Q1 2023 (in $ thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $72,855 | $74,244 | | Net cash used in investing activities | $(6,402) | $(37,280) | | Net cash used in financing activities | $(83,834) | $(54,706) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2024 financial results, highlighting a **7%** net revenue increase to **$332.8 million**, driven by Services, and strategic AI initiatives Q1 2024 Financial Highlights | Metric | Q1 2024 | YoY Change | | :--- | :--- | :--- | | Net Revenue | $332.8 million | +7% | | Net Income | $14.2 million | N/A (from loss) | | Adjusted EBITDA | $64.5 million | +19% | - Strategic investments in product and marketing drove progress, particularly in Home Services, which saw revenue grow approximately **15%** YoY[106](index=106&type=chunk) - The company launched Yelp Assistant, a conversational AI feature, and the Yelp Fusion AI API to improve user experience and expand content reach to third-party platforms[106](index=106&type=chunk) - Revenue from the Self-serve channel grew approximately **20%** YoY, driven by record customer acquisition[106](index=106&type=chunk) [Key Metrics](index=26&type=section&id=Key%20Metrics) Q1 2024 advertising revenue grew **7%** due to **8%** ad click increase, with Services revenue up **11%** despite a **4%** decrease in total paying advertising locations Ad Clicks and Average CPC (YoY Change) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Ad Clicks | 8% | 1% | | Average CPC | (1)% | 14% | Advertising Revenue by Category (Q1 2024) | Category | Revenue (in $ thousands) | YoY Change | | :--- | :--- | :--- | | Services | $203,288 | 11% | | Restaurants, Retail & Other | $114,350 | 1% | | **Total Advertising Revenue** | **$317,638** | **7%** | Paying Advertising Locations (Q1 2024) | Category | Locations (in thousands) | YoY Change | | :--- | :--- | :--- | | Services | 252 | 6% | | Restaurants, Retail & Other | 278 | (12)% | | **Total Paying Advertising Locations** | **530** | **(4)%** | [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Q1 2024 saw total net revenue increase **7%** to **$332.8 million**, with operating income turning positive at **$11.2 million** due to controlled expense growth - Advertising revenue increased by **7%** YoY, primarily due to an **8%** increase in ad clicks[126](index=126&type=chunk) - Sales and marketing expenses were flat YoY, as increased marketing spend on Services project acquisition was offset by reductions in workplace operating costs[133](index=133&type=chunk) - General and administrative expenses decreased by **3%** YoY, mainly because a **$3.6 million** impairment charge from Q1 2023 did not recur. This was partially offset by a **$4.9 million** increase in the provision for doubtful accounts[138](index=138&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, Yelp's liquidity included **$296.0 million** cash and **$124.7 million** marketable securities, with **$72.9 million** cash from operations in Q1 Liquidity Position as of March 31, 2024 | Item | Amount (in $ millions) | | :--- | :--- | | Cash and cash equivalents | $296.0 | | Marketable securities | $124.7 | | Available under credit facility | $110.9 | - In Q1 2024, the company repurchased **1,526,366** shares for an aggregate price of **$62.5 million**[172](index=172&type=chunk) - Future material cash requirements include **$83.9 million** for operating leases and approximately **$198.9 million** for purchase obligations, primarily for website hosting services[163](index=163&type=chunk)[164](index=164&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's exposure to market risks, including interest rate, foreign exchange, and inflation, remains materially unchanged since year-end 2023 - Primary market risks include interest rate, foreign exchange, and inflation[175](index=175&type=chunk) - There have been no material changes in market risk exposure since the end of 2023[175](index=175&type=chunk) [Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2024[177](index=177&type=chunk) - No material changes to internal control over financial reporting occurred during the first quarter of 2024[178](index=178&type=chunk) [Part II. Other Information](index=36&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The CIPA Action class action lawsuit was settled for **$15.0 million**, receiving final court approval on April 10, 2024, resolving all claims - The CIPA Action lawsuit was settled for **$15.0 million**, with final court approval granted on April 10, 2024[68](index=68&type=chunk) - The company had accrued the full **$15.0 million** for this loss contingency as of March 31, 2024, and expects to fund the settlement in Q2 2024[69](index=69&type=chunk) [Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's previously disclosed risk factors were identified since the Annual Report on Form 10-K - No material changes to risk factors were identified since the last Annual Report[183](index=183&type=chunk) [Issuer Purchases of Equity Securities](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) In Q1 2024, Yelp repurchased **1.53 million** shares for **$62.5 million**, with **$492.2 million** remaining for future repurchases Stock Repurchase Activity (Q1 2024) | Period | Total Shares Purchased (in thousands of shares) | Average Price Paid per Share | | :--- | :--- | :--- | | January 2024 | 541 | $45.04 | | February 2024 | 59 | $44.79 | | March 2024 | 927 | $38.31 | - The Board authorized an additional **$500.0 million** for the stock repurchase program in February 2024[184](index=184&type=chunk) [Other Information](index=36&type=section&id=Item%205.%20Other%20Information) This section discloses that CTO Sam Eaton and COO Jed Nachman entered into Rule 10b5-1 trading plans in February and March 2024, respectively - On February 21, 2024, CTO Sam Eaton entered into a Rule 10b5-1 trading plan[187](index=187&type=chunk) - On March 5, 2024, COO Jed Nachman entered into a Rule 10b5-1 trading plan[188](index=188&type=chunk) [Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents

Yelp Inc. (YELP) reported first-quarter 2024 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines marked a significant year-over-year improvement.The company reported first-quarter earnings of 20 cents per share, which beat the Zacks Consensus Estimate of 4 cents. The company incurred a loss of 2 cents per share in the year-ago quarter. The year-over-year improvement in net income was due to the company's efforts in generating profit.Yelp’s reven ...

Financial Data and Key Metrics Changes - Net revenue increased by 7% year-over-year to $333 million in Q1 2024 [8][12] - Net income was $14 million, reflecting a 4% margin, compared to a net loss of $1 million in Q1 2023 [12] - Adjusted EBITDA rose by 19% year-over-year to $64 million, representing a 19% margin [12][18] - Advertising revenue in services categories grew by 11% year-over-year to $203 million [12][18] Business Line Data and Key Metrics Changes - Home services revenue grew approximately 15% year-over-year, making it a standout performer [8][12] - Request-a-Quote projects increased by approximately 20% year-over-year, driven by paid project acquisition efforts [9][12] - Advertising revenue from restaurants, retail, and other categories grew modestly by 1% year-over-year to $114 million [13] Market Data and Key Metrics Changes - Overall paying advertising locations decreased by 4% year-over-year, while paying advertising locations in services categories increased by 6% [13] - Multi-location revenue increased by approximately 5% year-over-year, reflecting softness in restaurant, retail, and other categories [13][39] Company Strategy and Development Direction - The company continues to focus on enhancing its services categories, particularly in home services [8][11] - New AI-powered initiatives, including the Yelp Assistant and Yelp Fusion AI API, are expected to transform consumer-business interactions [10][11] - The company plans to invest $40 million or more in services project acquisition in 2024 to drive long-term growth [18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging operating environment for businesses in restaurant and retail categories due to inflationary pressures and elevated input costs [13][32] - The company remains confident in its strategy to drive long-term profitable growth and shareholder value [11][20] - For Q2 2024, the company expects net revenue to be in the range of $350 million to $355 million, reaffirming full-year guidance of $1.42 billion to $1.44 billion [17][18] Other Important Information - The company repurchased $62.5 million worth of shares in Q1 2024, with $519 million remaining under its existing repurchase authorization [17][56] - Stock-based compensation expense was reduced to 13% of revenue, with a target to lower it below 8% by the end of 2025 [16] Q&A Session Summary Question: Any learnings from Q1 regarding paid search budget? - Management noted positive early results from expanding the paid search budget, with significant increases in project volume and ad clicks, and a decline in CPC [22][24] Question: Insights on the Yelp Assistant and consumer friction reduction? - Management highlighted that the Yelp Assistant is effectively guiding consumers through project submissions, leading to positive consumer engagement [25][26] Question: Future of the partnership with Perplexity and competition for ad dollars? - Management expressed excitement about the Perplexity partnership, emphasizing Yelp's strong local content and ongoing conversations for potential AI licensing opportunities [28][30] Question: Confidence in increased investment without revenue returns? - Management explained that early results from increased spending in Q1 showed significant project and click increases, which they expect to translate into higher ad budgets over time [35][37] Question: Trends in RR&O segment and expectations for the second quarter? - Management indicated continued weakness in the RR&O segment, with expectations for gradual improvement as macroeconomic conditions stabilize [39]

For the quarter ended March 2024, Yelp (YELP) reported revenue of $332.75 million, up 6.5% over the same period last year. EPS came in at $0.20, compared to $0.02 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $333.66 million, representing a surprise of -0.27%. The company delivered an EPS surprise of +400.00%, with the consensus EPS estimate being $0.04.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

EXHIBIT 99.1 Investments in Services Drove Yelp's First Quarter 2024 Results Net Revenue increased by 7% year over year to $333 million Net Income increased from the prior year to $14 million, reflecting a 4% margin Adjusted EBITDA grew 19% year over year to $64 million SAN FRANCISCO--(BUSINESS WIRE)-- May 9, 2024-- Yelp Inc. (NYSE: YELP), the trusted platform that connects people with great local businesses, today announced its financial results for the first quarter ended March 31, 2024 in the Q1 2024 Sha ...

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Wall Street analysts expect Yelp (YELP) to post quarterly earnings of $0.04 per share in its upcoming report, which indicates a year-over-year increase of 100%. Revenues are expected to be $333.66 million, up 6.8% from the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a company's earnings announcement, it is crucial to consi ...

In this articleYELPDRIYUMCAVAThe new restaurant in your neighborhood may look familiar.Chains owned by publicly traded restaurant companies accounted for half of the top 10 fastest-growing retail brands in the U.S. last year, according to a new Yelp report.Review site Yelp compiled the list by using a blended metric that includes net new openings, searches on its platform from 2022 to 2023 and consumer interest that was measured by page visits, posted photos and written reviews. Of the 50 fastest-growing ch ...

Michael Vi The stock market remains frothy this year, and one of my top strategies to combat against potential broad-based downside is to shift the majority of my tech portfolio into value-oriented names. In particular, I'm keen on stocks that have taken recent unwarranted dips that have an opportunity to rebound throughout the remainder of the year. Yelp (NYSE:YELP) is one big rebound candidate here. The reviews site, long a bastion for restaurant reviews and now also a major hub for home services quer ...

Michael Vi Overview I previously rated a buy rating for Yelp Inc. (NYSE:YELP) in September 2023 as I was bullish on the stock's near-term outlook; in particular, I expected margin to continue expanding as revenue scales. Since then, the stock has moved up as I expected, reaching $48.99 at one point, which is near my target price. After reviewing the recent performance, my recommendation for YELP is a buy rating, as I see the risk-reward situation as attractive today. I believe the market has priced the ...