Core Insights - Yelp reported revenue of $376.04 million for the quarter ended September 2025, reflecting a 4.4% increase year-over-year and a surprise of +2.29% over the Zacks Consensus Estimate of $367.61 million [1] - The earnings per share (EPS) for the quarter was $0.61, up from $0.56 in the same quarter last year, resulting in an EPS surprise of +29.79% compared to the consensus estimate of $0.47 [1] Financial Performance Metrics - The number of Paying Advertising Locations was 512 thousand, matching the three-analyst average estimate [4] - For Restaurants, Retail & Other, the Paying Advertising Locations totaled 254 thousand, slightly above the average estimate of 252 thousand [4] - In the Services category, Paying Advertising Locations were 258 thousand, slightly below the average estimate of 260 thousand [4] - Net revenue from Advertising reached $357.35 million, exceeding the average estimate of $350.93 million, representing a year-over-year increase of +3.8% [4] - Advertising revenue from Services was $243.81 million, surpassing the average estimate of $239.92 million, with a year-over-year growth of +6.9% [4] - Advertising revenue from Restaurants, Retail & Other was $113.55 million, slightly above the average estimate of $110.99 million, but showed a year-over-year decline of -2.5% [4] Stock Performance - Over the past month, Yelp's shares have returned +1.6%, outperforming the Zacks S&P 500 composite's +1.3% change [3] - Yelp currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Yelp reported quarterly earnings of $0.61 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing an increase from $0.56 per share a year ago, resulting in an earnings surprise of +29.79% [1] - The company achieved revenues of $376.04 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.29% and up from $360.34 million year-over-year [2] - Yelp has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise of +29.79% indicates strong performance relative to expectations, with a previous quarter's surprise of +39.58% [1] - The company has shown a pattern of exceeding consensus estimates, with four consecutive quarters of positive surprises in both EPS and revenue [2] Stock Performance - Yelp shares have declined approximately 16.9% year-to-date, contrasting with the S&P 500's gain of 15.6% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.57, with projected revenues of $371.48 million, while the estimate for the current fiscal year is $2.08 on $1.47 billion in revenues [7] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported record net revenue of $376 million, a 4% increase year over year, exceeding the high end of the outlook range by $6 million [11] - Net income rose by 2% year over year to $39 million, representing a net income margin of 10% [11] - Adjusted EBITDA decreased by 3% year over year to $98 million, with an adjusted EBITDA margin of 26%, which was $13 million above the high end of the outlook range [11][12] - Services revenue reached a quarterly record of $244 million, up 7% year over year, while RRNO revenue declined by 2% year over year to $114 million [11][12] Business Line Data and Key Metrics Changes - Services revenue increased by 7% year over year, contributing significantly to overall business performance [5][11] - RRNO revenue experienced a decline of 2% year over year, attributed to a decrease in RRNO locations, which offset growth in services locations [11] - The number of paying advertising locations decreased by 2% year over year to 512,000, with ad clicks declining by 11% year over year [11][12] Market Data and Key Metrics Changes - The operating environment for businesses in the restaurant and retail sectors remained challenging, impacting overall revenue [6] - The company noted a cautious approach among advertisers in their spending as they entered the fourth quarter, particularly in the RRNO segment [19] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance user experience and business operations, rolling out over 35 new features and updates [5] - The partnership with DoorDash is expected to expand the food ordering network significantly, adding approximately 200,000 new restaurants [9] - The introduction of new AI-driven subscription products, such as Yelp Host and Yelp Receptionist, aims to provide smarter answering services for businesses [9][31] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing macroeconomic uncertainties affecting revenue, leading to a lowered full-year revenue outlook [14] - The company anticipates a decrease in net revenue in Q4 compared to Q3, reflecting continued macro pressures [14] - Management remains optimistic about the long-term potential of AI and its ability to transform the business [33] Other Important Information - The company repurchased $75 million worth of shares in Q3 2025, with $127 million remaining under the existing repurchase authorization [13] - The company aims to reduce stock-based compensation as a percentage of revenue to less than 8% by the end of 2025 [12] Q&A Session Summary Question: What is the current macro environment impact on the services segment? - Management noted that macro pressures have persisted, particularly affecting the RRNO segment, while services continue to see consistent demand [19] Question: Can you provide insights on the demand for data licensing products? - Management expressed excitement about the growth in data licensing, emphasizing the value of Yelp's trusted content for AI search platforms [22] Question: How will the DoorDash partnership affect revenue? - The partnership is expected to generate incremental revenue by expanding restaurant coverage and enhancing consumer experience on the Yelp platform [26] Question: What is the scale of the opportunity for Yelp Host and Yelp Receptionist? - Management indicated a large total addressable market (TAM) for these products, with positive early feedback from users [38] Question: What factors are driving the increase in average pricing on the platform? - The increase in average pricing is attributed to a dynamic auction system that optimizes ad budget deployment, resulting in higher cost per click due to fewer clicks overall [40][42]

Core Insights - Yelp reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 4.4% year-on-year to $376 million, and a GAAP profit of $0.61 per share, which was 16.1% above analysts' consensus estimates [1][7]. Company Overview - Yelp, founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, is an online platform that assists users in discovering local businesses through crowd-sourced reviews [4]. Revenue Growth - Over the last three years, Yelp has achieved a compounded annual growth rate of 8.2% in sales, which is considered mediocre compared to the broader consumer internet sector, although there are still positive aspects to note about the company [5]. - In Q3, Yelp's revenue growth of 4.4% surpassed Wall Street's estimates by 2.1%, but analysts project a slowdown in revenue growth to 2.7% over the next 12 months, indicating potential demand challenges for its products and services [6]. Financial Performance - Q3 financial highlights include revenue of $376 million compared to analyst estimates of $368.2 million, an EPS of $0.61 versus estimates of $0.53, and an adjusted EBITDA of $98.07 million against estimates of $84.85 million [7]. - The company revised its full-year revenue guidance to $1.46 billion from $1.47 billion, reflecting a 0.5% decrease, while EBITDA guidance was set at $362.5 million, above analyst estimates of $357.8 million [7]. - Operating margin improved to 14.1% from 12.9% in the same quarter last year, and free cash flow margin increased to 31.6% from 12.2% in the previous quarter [7]. - Yelp's market capitalization stands at $2.03 billion [7].

Financial Performance - Net Revenue for Q3 2025 increased by 4% year over year to a record $376 million[1] - Net Income for Q3 2025 increased by 2% year over year to $39 million, reflecting a 10% margin[1] - Adjusted EBITDA for Q3 2025 decreased by 3% year over year to $98 million, reflecting a 26% margin[1] - Net income for the three months ended September 30, 2025, was $38,440,000, with a net income margin of 10%[20] - Adjusted EBITDA for the same period was $101,364,000, resulting in an Adjusted EBITDA margin of 26%[20] - Total net revenue for the three months ended September 30, 2025, was $360,344,000, compared to $376,038,000 for the same period in 2024[20] - The company reported strong profitability despite ongoing macro challenges, with Services driving business performance[2] Financial Outlook - The company updated its 2025 Net Revenue outlook to a range of $1.460 billion to $1.465 billion[1] - The 2025 Adjusted EBITDA outlook was updated to a range of $360 million to $365 million[1] Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2025, was $287.547 million, compared to $214.842 million for the same period in 2024[15] - Free cash flow for the three months ended September 30, 2025, was $118,937,000, compared to $92,535,000 for the same period in 2024, reflecting a year-over-year increase of 28.7%[20] - Net cash provided by operating activities for the three months ended September 30, 2025, was $131,518,000, up from $102,298,000 in the prior year[20] - Total current assets as of September 30, 2025, were $550.298 million, up from $516.879 million at the end of 2024[11] - Total liabilities as of September 30, 2025, were $256.731 million, compared to $239.598 million at the end of 2024[11] - Net cash used in financing activities for the nine months ended September 30, 2025, was $237,779,000[20] Expenses - The company recorded depreciation and amortization expenses of $9,326,000 for the three months ended September 30, 2025[20] - Stock-based compensation expense for the three months ended September 30, 2025, was $39,472,000[20] - The company expects to be indemnified for certain expenses related to the RepairPal acquisition, which will be excluded from Adjusted EBITDA calculations[20] Product Development - The rollout of over 35 new features and updates, including AI-powered services, is part of the company's product-led strategy[2]

Core Insights - Yelp (YELP) is expected to report quarterly earnings of $0.47 per share, a decline of 16.1% year-over-year, with revenues projected at $367.61 million, reflecting a 2% increase compared to the previous year [1] Earnings Projections - Over the last 30 days, the consensus EPS estimate has been revised downward by 1.3%, indicating a collective reassessment by analysts [2] - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3] Revenue Estimates - Analysts estimate 'Net revenue - Advertising' to be $350.93 million, representing a year-over-year increase of 1.9% [4] - 'Net revenue - Other services' is forecasted to reach $16.68 million, indicating a year-over-year change of 4.7% [5] - 'Net revenue - Advertising revenue - Services' is expected to be $239.92 million, suggesting a 5.2% year-over-year increase [5] - 'Net revenue - Advertising revenue - Restaurants, Retail & Other' is projected at $110.99 million, reflecting a decline of 4.7% from the prior-year quarter [5] Advertising Locations - The estimated number of 'Paying Advertising Locations' is projected to be 512,000, down from 524,000 in the same quarter last year [6] - 'Paying Advertising Locations - Restaurants, Retail & Other' is expected to be 252,000, compared to 272,000 reported in the same quarter of the previous year [6] - 'Paying Advertising Locations - Services' is estimated at 260,000, up from 252,000 in the same quarter last year [7] Stock Performance - Over the past month, Yelp shares have returned +0.7%, while the Zacks S&P 500 composite has changed by +1% [7] - Yelp currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the overall market in the near future [7]

Core Insights - Yelp, Inc. (NYSE:YELP) is a significant player in the internet content industry, connecting users with local businesses through reviews and recommendations [1] - The current stock price of Yelp is $33.70, slightly above Goldman Sachs' price target of $33, indicating a potential decrease of approximately -2.08% [2][5] - Yelp holds a Zacks Rank of 1 (Strong Buy), suggesting a strong earnings outlook and potential undervaluation compared to competitors like RELX, which has a Zacks Rank of 3 (Hold) [2][5] Stock Performance - Yelp's stock has experienced a minor decrease of 0.38%, with a change of $0.13, and fluctuated between a low of $33.07 and a high of $33.80 during the trading session [3] - Over the past year, Yelp's stock has seen a high of $41.72 and a low of $29.96, indicating volatility in its market performance [3][5] Market Metrics - The company has a market capitalization of approximately $2.13 billion, reflecting its size and presence in the market [4] - With a trading volume of 1,175,661 shares, Yelp's stock remains actively traded, attracting investor interest [4]

Core Viewpoint - Yelp's stock experienced an 11.8% increase, closing at $33.83, driven by notable trading volume and a recovery from a 2.1% loss over the past month [1] Group 1: Company Performance - The upcoming quarterly earnings for Yelp are projected at $0.47 per share, reflecting a year-over-year decline of 16.1%, while revenues are expected to reach $367.88 million, marking a 2.1% increase from the previous year [3] - The consensus EPS estimate for Yelp has remained unchanged over the last 30 days, indicating a potential stagnation in stock price movement without earnings estimate revisions [4] Group 2: Strategic Initiatives - Yelp is focusing on AI-driven innovations such as Yelp Assistant, Yelp Host, and Yelp Receptionist, which are contributing to positive market sentiment [2] - The company is experiencing growth in advertising revenue, particularly in the Services category, including Home and Auto Services, which is bolstered by the strategic acquisition of RepairPal [2] - Partnerships and data licensing are expanding monetization opportunities beyond Yelp's core platform [2] Group 3: Industry Context - Yelp operates within the Zacks Internet - Content industry, where another company, DHI Group, has seen a 0.9% decline in its stock price, with a return of -26.9% over the past month [4]

Core Viewpoint - Evercore ISI upgraded Yelp Inc. from In Line to Outperform, raising the price target to $45.00 from $37.00, resulting in an over 8% increase in shares intra-day on Monday [1] Group 1: AI Initiatives and Market Potential - Yelp is viewed as an emerging AI beneficiary, with new initiatives like the AI Receptionist/Host service, which could represent a total addressable market of approximately $13.8 billion based on 7.7 million claimed business locations priced at $149 per month [1] Group 2: Growth Catalysts - Several catalysts for near-term growth include rapid expansion in data licensing to AI platforms, currently at a $10 million annual run rate, with API call volume increasing 20x year-over-year through August 2025 [2] - A growing referral stream from ChatGPT users is expected to enhance Yelp's reach among younger consumers [2] - A new delivery partnership with DoorDash is anticipated to nearly double the number of restaurants enabled for on-platform delivery [2] Group 3: Financial Outlook - Potential upside from ongoing litigation against Google could mirror the DOJ's recent antitrust victory in the search case [3] - Cost discipline, reduced stock-based compensation, and share buybacks are expected to support GAAP EPS growth of 15% year-over-year in 2025 and 23% in 2026 [3]

Core Viewpoint - Evercore ISI upgraded its investment rating on Yelp (NYSE:YELP) to "outperform" from "in line" due to identified growth opportunities for the company [4]. Group 1 - Shares of Yelp increased by 8% in early open market trading following the upgrade [5].