Financial Data and Key Metrics Changes - The company reported record net revenue of $370 million, representing a 4% year-over-year increase, exceeding the high end of the outlook range by $3 million [11] - Net income increased by 16% year-over-year to $44 million, translating to $0.67 per share on a diluted basis, with a net income margin of 12% [11][12] - Adjusted EBITDA rose by 10% year-over-year to $100 million, achieving a margin of 27%, which was $11 million above the high end of the outlook range [11][12] - Average cost per click (CPC) increased by 11% year-over-year, reflecting growth in services demand despite a decline in ad clicks by 7% [12][13] Business Line Data and Key Metrics Changes - Services revenue increased by 8% year-over-year to a record $241 million, while revenue from restaurants and retail (RR and O) declined by 5% year-over-year to $113 million [11][12] - The overall number of paying advertising locations decreased by 3% year-over-year to 515,000, driven by a decline in RR and O locations [12] - Project submissions through Yelp Assistant surged by over 400% year-over-year, indicating strong momentum in service offerings [7][10] Market Data and Key Metrics Changes - The operating environment for businesses in the restaurant and retail sectors remains challenging, with macroeconomic pressures impacting consumer sentiment and spending [6][32] - Despite modest increases in advertiser budgets during the second quarter, they did not reach traditional seasonal levels, indicating ongoing caution among advertisers [11][21] Company Strategy and Development Direction - The company is focused on a product-led strategy, emphasizing AI-powered updates and services to enhance user experience and drive growth [6][10] - Yelp is expanding its AI capabilities, including the rollout of Yelp Assistant and live testing of Yelp Host, an AI-powered call answering service for restaurants [9][10] - The company aims to leverage trusted content as a differentiator in an AI-driven market, with significant growth in AI search API calls and data licensing products [9][28] Management's Comments on Operating Environment and Future Outlook - Management noted that heightened macroeconomic uncertainties have affected revenue growth, with expectations of continued flat revenue in the third quarter [15][21] - The company anticipates increased expenses in the second half of the year, primarily due to cost of revenue and seasonal sales and marketing expenses [15][16] - Despite current challenges, management remains optimistic about long-term shareholder value creation through investments in AI and service enhancements [17] Other Important Information - The company repurchased $65.9 million worth of shares at an average price of $35.58 per share, with $2 million remaining under the existing repurchase authorization [14][15] - The company aims to reduce stock-based compensation expense as a percentage of revenue to less than 8% by the end of the year and less than 6% by 2027 [13][14] Q&A Session Summary Question: Can you walk us through the deceleration in services revenue growth this quarter? - Management attributed the softness in services revenue to macroeconomic and policy changes affecting consumer sentiment, noting that budgets increased but not to traditional seasonal levels [21][22] Question: Can you provide more detail on the AI search API and data licensing momentum? - Management reported a 10x increase in API usage over the last two months, indicating strong demand for local content in AI search applications [25][28] Question: Has there been any change in competitive pressure from food delivery providers? - Management indicated that macroeconomic uncertainty continues to be the main story affecting the restaurant segment, with competitive pressures being a secondary factor [32] Question: How does Yelp Assistant support activity in the restaurant category? - Management expressed optimism that Yelp Assistant will enhance user experience by providing tailored recommendations, potentially increasing engagement in high-frequency categories like restaurants [33][34]

[Yelp Q2 2025 Earnings Highlights and Outlook](index=1&type=section&id=Yelp%20Q2%202025%20Earnings%20Highlights%20and%20Outlook) This section details Yelp's strong Q2 2025 financial performance, management's strategic insights, and revised full-year financial outlook [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) Yelp achieved strong financial performance in Q2 2025, with record net revenue, significant growth in net income and Adjusted EBITDA, and improved profitability Key Financial Data for Q2 2025 | Metric | Q2 2025 | Q2 2024 | YoY Change | | :----- | :------ | :------ | :--------- | | Net Revenue | $370 million | $357 million | +4% | | Net Income | $44 million | $38 million | +16% | | Net Income Margin | 12% | 11% | +1 pp | | Adjusted EBITDA | $100 million | $91 million | +10% | | Adjusted EBITDA Margin | 27% | 26% | +1 pp | - Net revenue increased by **4%** year-over-year to a record **$370 million**[1](index=1&type=chunk) - Net income grew by **16%** year-over-year to **$44 million**, with a **12%** margin[1](index=1&type=chunk) - Adjusted EBITDA increased by **10%** year-over-year to **$100 million**, achieving a **27%** margin[1](index=1&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management highlighted effective execution of the product-led strategy, positive progress in AI initiatives, and a commitment to profitable growth and long-term shareholder value amidst macroeconomic uncertainty - CEO Jeremy Stoppelman stated that Q2 results reflect solid execution of the product-led strategy, with encouraging momentum from AI initiatives, including the rollout of Yelp Assistant and testing of Yelp Host[2](index=2&type=chunk) - CFO David Schwarzbach noted record net revenue and strong profitability, with improved net income and Adjusted EBITDA margins, committing to long-term financial performance through disciplined financial approaches and product investments in an uncertain macroeconomic environment[2](index=2&type=chunk) [Business Outlook](index=1&type=section&id=Business%20Outlook) Yelp narrowed its full-year 2025 net revenue and Adjusted EBITDA guidance ranges Full-Year 2025 Financial Outlook (Revised) | Metric | 2025 Outlook (Revised) | | :----- | :--------------------- | | Net Revenue | $1.465 billion to $1.475 billion | | Adjusted EBITDA | $350 million to $360 million | - The 2025 net revenue outlook was narrowed to **$1.465 billion to $1.475 billion**[1](index=1&type=chunk) - The 2025 Adjusted EBITDA outlook was narrowed to **$350 million to $360 million**[1](index=1&type=chunk) [Company Overview and Forward-Looking Statements](index=2&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) This section provides an overview of Yelp Inc. and outlines forward-looking statements, highlighting potential risks and uncertainties [About Yelp](index=2&type=section&id=About%20Yelp) Yelp Inc., founded in 2004, is a community-driven platform connecting users with local businesses through information, reviews, and tools for discovery and transactions - Yelp Inc. is a community-driven platform connecting people with great local businesses[5](index=5&type=chunk) - Millions of users rely on Yelp for local business information, reviews, and photos to aid purchasing decisions[5](index=5&type=chunk) - Founded in 2004, Yelp provides a one-stop local platform for consumers to interact with businesses[5](index=5&type=chunk) [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section contains forward-looking statements regarding Yelp's future performance, cautioning that actual results may differ significantly due to various risks and uncertainties, including macroeconomic conditions and operational challenges - This press release contains forward-looking statements regarding Yelp's future performance, based on current expectations, forecasts, and assumptions, involving risks and uncertainties[7](index=7&type=chunk) - Actual results may differ materially from projected or implied outcomes due to factors such as macroeconomic uncertainties (e.g., inflation, interest rates, labor and supply chain issues, severe weather events) and their impact on consumer behavior, user activity, and advertiser spending[8](index=8&type=chunk)[9](index=9&type=chunk) - Other risk factors include Yelp's ability to maintain and grow its advertiser base, drive sustained growth through strategic initiatives, operate effectively and retain key talent in a primarily remote work model, and generate and maintain high-quality user content[9](index=9&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents Yelp's condensed consolidated balance sheets, statements of operations, and cash flows, detailing financial position and performance [Condensed Consolidated Balance Sheets](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, Yelp's total assets and liabilities slightly decreased from year-end 2024, while total stockholders' equity marginally increased Condensed Consolidated Balance Sheets Overview (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :-------------------- | :------------ | :---------------- | :----- | | Total Assets | $980,175 | $983,567 | $(3,392) | | Total Liabilities | $233,771 | $239,598 | $(5,827) | | Total Stockholders' Equity | $746,404 | $743,969 | $2,435 | - Cash and cash equivalents were **$197,687 thousand** as of June 30, 2025, a decrease from **$217,325 thousand** as of December 31, 2024[11](index=11&type=chunk) - Total current assets decreased from **$516,879 thousand** at year-end 2024 to **$509,411 thousand** at mid-2025[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Yelp achieved significant growth in net revenue, income from operations, and net income for both Q2 and YTD 2025, with corresponding EPS increases, driven by improved operating efficiency and reduced stock-based compensation Condensed Consolidated Statements of Operations Key Data (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :------------------------------------ | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Net Revenue | $370,394 | $357,016 | +3.75% | $728,928 | $689,768 | +5.68% | | Income from Operations | $53,290 | $39,747 | +34.07% | $82,750 | $50,964 | +62.37% | | Net Income | $44,089 | $38,036 | +15.91% | $68,480 | $52,190 | +31.22% | | Basic EPS | $0.69 | $0.56 | +23.21% | $1.06 | $0.77 | +37.66% | | Diluted EPS | $0.67 | $0.54 | +24.07% | $1.03 | $0.73 | +41.10% | - Total costs and expenses for Q2 2025 were **$317,104 thousand**, largely flat compared to **$317,269 thousand** in the prior-year period[13](index=13&type=chunk) - Stock-based compensation expense decreased to **$34,775 thousand** in Q2 2025 from **$41,214 thousand** in the prior-year period[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, Yelp saw a substantial increase in cash flow from operating activities, alongside increased cash outflows from investing and financing activities, resulting in a decrease in period-end cash and cash equivalents Condensed Consolidated Statements of Cash Flows Key Data (in thousands) | Metric | YTD June 30, 2025 | YTD June 30, 2024 | YoY Change | | :------------------------------------ | :---------------- | :---------------- | :--------- | | Net cash provided by operating activities | $156,029 | $112,544 | +38.64% | | Net cash used in investing activities | $(26,620) | $(23,046) | +15.51% | | Net cash used in financing activities | $(151,582) | $(150,411) | +0.78% | | Cash, cash equivalents & restricted cash (End of period) | $198,160 | $252,794 | -21.54% | - Net cash provided by operating activities increased from **$112,544 thousand** in H1 2024 to **$156,029 thousand** in H1 2025[15](index=15&type=chunk) - Net cash used in investing activities was primarily for purchases of marketable securities and property, equipment, and software[15](index=15&type=chunk) - Net cash used in financing activities was primarily impacted by common stock repurchases of **$128,450 thousand** and tax payments related to net share settlement of equity awards of **$35,155 thousand**[15](index=15&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section defines Yelp's non-GAAP financial measures and provides detailed reconciliation tables to GAAP results [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) This section defines Yelp's non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and Free Cash Flow, emphasizing their inherent limitations as analytical tools and their non-substitutability for GAAP results - Adjusted EBITDA is defined as net income (loss) adjusted for provision for income taxes, other income, net, depreciation and amortization, stock-based compensation expense, and certain other non-recurring items[16](index=16&type=chunk) - Free cash flow is defined as net cash provided by (used in) operating activities less cash paid for purchases of property, equipment, and software[16](index=16&type=chunk) - Non-GAAP financial measures, such as Adjusted EBITDA and Free Cash Flow, have limitations and should not be considered as substitutes for or superior to GAAP net income (loss) or net cash provided by operating activities[17](index=17&type=chunk)[19](index=19&type=chunk) [Non-GAAP Reconciliations](index=7&type=section&id=Non-GAAP%20Reconciliations) The report provides detailed reconciliation tables for net income to Adjusted EBITDA and net cash from operating activities to free cash flow for Q2 and YTD 2025, illustrating the calculation of non-GAAP metrics Non-GAAP Reconciliations Key Data (in thousands, except percentages) | Metric | Q2 2025 | Q2 2024 | YoY Change (Q2) | YTD 2025 | YTD 2024 | YoY Change (YTD) | | :-------------------------------------- | :------ | :------ | :-------------- | :------- | :------- | :--------------- | | Adjusted EBITDA | $100,485 | $91,115 | +10.28% | $185,429 | $155,571 | +19.19% | | Adjusted EBITDA margin | 27% | 26% | +1 pp | 25% | 23% | +2 pp | | Free cash flow | $45,010 | $30,102 | +49.52% | $132,474 | $95,970 | +37.99% | - Key adjustments for Adjusted EBITDA primarily include adding back stock-based compensation of **$34,775 thousand** and depreciation and amortization of **$12,365 thousand** for Q2 2025[20](index=20&type=chunk) - Free cash flow is primarily calculated by subtracting purchases of property, equipment, and software of **$13,024 thousand** from net cash provided by operating activities for Q2 2025[20](index=20&type=chunk)

Core Viewpoint - Yelp (YELP) is expected to report quarterly earnings of $0.48 per share, reflecting an 11.1% decline year-over-year, while revenues are forecasted to increase by 2.2% to $364.77 million [1] Financial Estimates - Analysts predict 'Net revenue- Advertising' to be $348.14 million, indicating a year-over-year change of +2% [4] - 'Net revenue- Other services' is projected to reach $16.63 million, reflecting a +6.1% change from the prior-year quarter [4] - 'Net revenue- Advertising revenue- Services' is expected to be $239.85 million, showing a +7.6% change year-over-year [4] Advertising Revenue Insights - 'Net revenue- Advertising revenue- Restaurants, Retail & Other' is estimated at $108.04 million, suggesting an -8.7% year-over-year change [5] - 'Paying Advertising Locations' is forecasted to reach 514.75 thousand, down from 531.00 thousand reported in the same quarter last year [5] - 'Paying Advertising Locations - Restaurants, Retail & Other' is expected to be 251.00 thousand, compared to 277.00 thousand in the same quarter last year [6] - 'Paying Advertising Locations - Services' is projected to reach 263.33 thousand, up from 254.00 thousand reported in the same quarter last year [6] Market Performance - Over the past month, Yelp shares have recorded a return of -1.9%, while the Zacks S&P 500 composite has seen a +1% change [6] - Yelp holds a Zacks Rank 2 (Buy), indicating a likelihood of outperforming the overall market in the upcoming period [6]

Core Viewpoint - The comparison between Yelp (YELP) and RELX PLC (RELX) indicates that YELP presents a better value opportunity for investors at this time due to its stronger earnings outlook and favorable valuation metrics [1][3]. Valuation Metrics - Yelp has a forward P/E ratio of 16.41, while RELX has a significantly higher forward P/E of 30.45 [5]. - Yelp's PEG ratio is 0.82, indicating a more favorable valuation relative to its expected earnings growth, compared to RELX's PEG ratio of 3.38 [5]. - Yelp's P/B ratio stands at 3.1, contrasting sharply with RELX's P/B ratio of 32.45, further highlighting Yelp's superior valuation [6]. Earnings Outlook - Yelp currently holds a Zacks Rank of 2 (Buy), suggesting a positive earnings outlook, whereas RELX has a Zacks Rank of 4 (Sell), indicating a weaker earnings outlook [3]. - The strong improvement in Yelp's earnings outlook compared to RELX is a significant factor for value investors [3][6]. Value Grades - Yelp has received a Value grade of A, while RELX has a Value grade of D, underscoring Yelp's position as the more attractive value option based on various valuation metrics [6].

Company Overview - VIIRL Marketing has acquired the Yelp Division from Phoenix Online Advertising, enhancing its lead generation capabilities and expanding its presence in the home services sector [1][4] - The acquisition aligns with VIIRL's strategy of complementing organic growth with strategic acquisitions that fit its business model [5] Industry Insights - The digital marketing sector, particularly in home services, is experiencing growth as business owners seek external expertise for lead generation while focusing on operations [4] - VIIRL serves over 600 client locations across the US, providing services such as lead generation platform management, website development, SEO, and pay-per-click [7] New Offerings - New clients of VIIRL will benefit from proprietary software solutions, including an AI-driven Yelp Lead Autoresponder and a Lead Cloud reporting suite [2][4] - The transition of the Yelp business to VIIRL allows Phoenix Online Advertising to concentrate on its core services, including SEO, graphic design, and PPC [6]

Core Insights - XWELL's Xpres Spa has been recognized as one of Yelp's "Most Loved Airport Brands," ranking 10 out of 25 based on millions of reviews from U.S. travelers [1] - The CEO of XWELL highlighted the growing demand for comfort and quality at airports, indicating that travelers are increasingly utilizing wellness services [2] Expansion Plans - XWELL will open its first out-of-airport locations in Clearwater, Florida, and New York's Penn Station this summer, aiming to enhance accessibility to premium self-care [2][3] - The Clearwater location will feature a wellness center offering core treatments such as massage, skincare, and recovery, while the Penn Station site will focus on grab-and-go wellness essentials for commuters [3] Strategic Partnerships - XWELL is expanding its reach through strategic partnerships, including a multi-year collaboration with the Orlando Magic, designating XWELL as the "Official Wellness Spa" of the NBA team [4] Future Outlook - The company plans to continue its growth momentum with additional location announcements and partnerships, focusing on equitable and scalable wellness access across various regions [5]

Strong Revenue Growth $0 $25 $50 $75 $100 $125 Q1'13 Q2'13 Q3'13 Q4'13 Q1'14 Q2'14 Q3'14 Q4'14 Local Brand Other 1 ($M) $46M $55M $61M $71M $76M $89M $102M $110M Significant Operating Leverage Note: See Appendix for reconciliation to GAAP Net Income (Loss) for the periods presented 2 Adj. EBITDA ($M) $25M $20M $17M $9M $10M $8M $8M $3M Compelling Metrics 3 Q4'13 Q4'14 Active Local Biz Accts1 12/31/13 12/31/14 71M 135M 94K Cumulative Reviews Unique Visitors* 53M 120M 67K 35% y/y 13% y/y 39% y/y * Per Google ...

Financial Performance & Growth - Yelp's Q4 2015 financials show significant growth since its IPO, with revenue increasing by 517% from $24.9 million to $153.7 million[11] - The number of monthly average unique devices accessing the Yelp app increased by 251% from 5.7 million to 20.0 million between Q4 2011 and Q4 2015[11] - Monthly average users accessing Yelp via the website increased by 114% from 65.8 million to 140.5 million between Q4 2011 and Q4 2015[11] - Cumulative reviews increased by 284% from 24.8 million to 95.2 million between Q4 2011 and Q4 2015[11] - Adjusted EBITDA increased from -$0.0 million to $17.5 million between Q4 2011 and Q4 2015[11] Market Opportunity & User Engagement - Yelp estimates a large addressable market with over 20 million local business locations in the U S [14] - The U S local ad spend is projected to be $151 billion in 2016[15] - Yelp app users view significantly more pages than website users, indicating higher engagement[27] - The number of unique devices accessing the Yelp app grew by 38% year-over-year from Q4 2014 to Q4 2015[27] Advertising & Revenue - Local advertisers see a compelling ROI, with an estimated monthly revenue of $983 from ad-driven leads, compared to an average monthly spend of $267 on CPC or CPM ads, resulting in a 269% ROI[32] - The company's analysis shows strong unit economics, with a contribution margin of 48% in year 1, increasing to 95% in years 2 and 3 for an average local advertiser[37]

Market Opportunity & Growth - The U S local ad spend is projected to be approximately $149 billion in 2017[12] - Yelp claimed 3 4 million local business locations[12] - Yelp has 138 thousand local advertising accounts[12] - Cumulative reviews grew by 27% from 95 million in Q4 2015 to over 121 million in Q4 2016[22] Mobile Engagement - App unique devices increased by 20% from 20 million in Q4 2015 to 24 million in Q4 2016[24] - App users view approximately 10 times as many pages as website users[24] Financial Performance & Targets - Total net revenue increased from $550 million in 2015 to $713 million in 2016[52] - Adjusted EBITDA increased from $69 million in 2015 to $120 million in 2016[52] - The company projects total net revenue between $880 million and $900 million in 2017[52] - The long-term target adjusted EBITDA margin is 35%-40%[55]

Investor Presentation Fourth Quarter 2017 FORWARD-LOOKING STATEMENTS These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the accompanying oral presentation, including statements regarding Yelp Inc.'s ("Yelp" or the "Company") future operations, expected financial results and future financial position, future revenue, the strategic partnership with Grubhub (including its anticipated timi ...