Yelp Inc. (NYSE:YELP) Q2 2019 Earnings Conference Call August 8, 2019 5:00 PM ET Company Participants Ronald Clark - Head IR Jeremy Stoppelman - CEO Lanny Baker - CFO Jed Nachman - COO Conference Call Participants Lloyd Walmsley - Deutsche Bank Shweta Khajuria - RBC Capital Markets Tom Champion - Cowen & Company Lee Horowitz - Evercore ISI Andy Hargreaves - KeyBanc Justin Patterson - Raymond James Elliot Alper - D.A. Davidson Tommy Tang - Jefferies Operator Good day, and welcome to the Yelp Second Quarter 2 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from to Commission file number: 001-35444 YELP INC. (Exact Name of Registrant as Specified in Its Charter) Delaware 20-1854266 (State or Other Jurisdiction ...

Yelp, Inc. (NYSE:YELP) Q1 2019 Earnings Conference Call May 9, 2019 5:00 PM ET Company Participants Ronald Clark - Head IR Jeremy Stoppelman - CEO Lanny Baker - CFO Jed Nachman - COO Conference Call Participants Shweta Khajuria - RBC Capital Markets Michael Ng - Goldman Sachs Mark May - Citi Justin Patterson - Raymond James Sameet Sinha - B Riley FBR Elliot Alper - DA Davidson Victor Anthony - Aegis Capital Operator Good day, ladies and gentlemen, and thank you for your patience. You've joined Yelp's First ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35444 YELP INC. (Exact name of Registrant as specified in its charter) Delaware 20-1854266 (State or other jurisdiction of in ...

Financial Data and Key Metrics Changes - In Q4 2018, Yelp reported revenue growth of 11% year-over-year to $244 million, with advertising revenue increasing by 12% to $235 million [32][33] - Adjusted EBITDA grew 27% year-over-year to $53 million, with adjusted EBITDA margin reaching 22%, an increase of nearly 3 percentage points from the previous year [33][25] - For the full year 2018, net revenue grew 11% to $943 million, with adjusted EBITDA increasing by 16% to $183 million, resulting in a margin of 19% [33][25] Business Line Data and Key Metrics Changes - Transaction revenue decreased from $5 million to $3 million due to the sale of Eat24, while other service revenue increased by 23% to $6 million, driven by growth in Yelp Reservations and Yelp Waitlist [32] - The Request-A-Quote service generated over 1.5 million leads in Q4, with a 41% year-over-year increase in project submissions [18][32] Market Data and Key Metrics Changes - Yelp's mobile app had an average of 33 million monthly users in Q4, reflecting a healthy growth rate of 14% year-over-year [42] - The local advertising market is valued at $150 billion annually, with Yelp currently capturing a small fraction of that market, indicating significant growth potential [15][36] Company Strategy and Development Direction - Yelp aims to renew double-digit revenue growth starting in 2020, focusing on enhancing advertiser relationships and diversifying its go-to-market strategy [12][13] - The company plans to optimize its cost structure and improve margins, targeting adjusted EBITDA margins of 30% to 35% in the long term [25][36] - Strategic initiatives include expanding product offerings, enhancing customer experience, and increasing partnerships to drive growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2019 as a transition year with expected slower revenue growth, but expressed confidence in returning to strong growth in subsequent years [35][36] - The company is optimistic about its ability to capitalize on opportunities in the local advertising market and improve customer retention through product enhancements [15][45] Other Important Information - Yelp announced the election of three new board members to enhance its governance and strategic execution [29][30] - The company has increased its share repurchase authorization to $500 million, reflecting confidence in its long-term potential [28] Q&A Session Summary Question: What is driving the near-term slowdown in revenue growth? - Management noted greater than anticipated seasonality in ad budgets during December, impacting January's advertiser base and growth rate [40][41] Question: What are the challenges in optimizing consumer marketing spend? - The company is shifting to more efficient marketing channels and focusing on organic growth through product features rather than paid traffic [44] Question: What opportunities exist in partnerships, particularly in home services? - Yelp is open to partnerships across various verticals, with successful monetization seen in the home services category through Request-A-Quote [48][49] Question: What justifies increasing the national sales team by 20%? - The national advertising segment has shown consistent growth, and expanding the sales team is necessary to cover a large market opportunity [50][52] Question: What are the biggest learnings from the non-term contract transition? - The transition has opened up the funnel for trial users, leading to a more dynamic relationship with advertisers and increased sensitivity to CPC pricing [57][58]