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 ...

Yelp strictly prohibits offering incentives or other compensations in exchange for writing, changing, or removing a review. The platform investigates egregious attempts to manipulate ratings and reviews, and may warn consumers with a pop-up notice on the business's Yelp page. (Graphic: Yelp)Of the reviews contributed to Yelp in 2023, about 20% were either not recommended by its automated recommendation software or removed by its User Operations team as a result of the company's extensive trust and safety me ...

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 ...