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 ...

For the quarter ended December 2023, Yelp (YELP) reported revenue of $342.38 million, up 10.8% over the same period last year. EPS came in at $0.37, compared to $0.28 in the year-ago quarter.The reported revenue represents a surprise of +0.47% over the Zacks Consensus Estimate of $340.79 million. With the consensus EPS estimate being $0.37, the company has not delivered EPS surprise.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to d ...

Financial Data and Key Metrics Changes - Net revenue increased by 12% year-over-year to a record $1.34 billion in 2023 [6] - Net income nearly tripled year-over-year to $99 million, with a net income margin of 7% [6] - Adjusted EBITDA grew to $330 million, resulting in a record adjusted EBITDA margin of 25% [6][14] Business Line Data and Key Metrics Changes - Advertising revenue from services businesses grew 14% year-over-year to a record $793 million [7] - Advertising revenue from restaurants, retail, and other businesses increased by 10% year-over-year to a record $483 million [8] - Monetization of leads in services increased to approximately 30%, up 5 percentage points from 2022 [7] Market Data and Key Metrics Changes - Home services category revenue grew approximately 20% year-over-year, compounding at nearly 20% annually since 2019 [7] - Request to quote requests grew by approximately 5% year-over-year in Q4 [7] - Overall traffic levels remained flat in 2023, but user-generated reviews increased by 8% to 287 million [9] Company Strategy and Development Direction - The company plans to focus on the services category as a major part of its product-led strategy in 2024 [10][11] - Investments will be made to enhance consumer experience and drive more quality leads to advertisers [11] - The company aims to reduce stock-based compensation as a percentage of revenue to less than 8% by the end of 2025 [16] Management's Comments on Operating Environment and Future Outlook - Management noted weakness in the RR&O categories due to macroeconomic factors, including high input costs and inflationary pressures [18][34] - For Q1 2024, net revenue is expected to be in the range of $330 million to $335 million, with full-year guidance of $1.42 billion to $1.44 billion [18] - Adjusted EBITDA for Q1 is anticipated to be between $47 million and $52 million, reflecting a shift from equity to cash compensation [19] Other Important Information - The company repurchased nearly $1.4 billion worth of shares since the program's inception, including $200 million in 2023 [17] - The Board of Directors authorized an additional $500 million for share repurchases in February 2024 [17] Q&A Session Summary Question: Impact of search marketing initiatives on new users and traffic - Management highlighted strong advertiser demand, particularly within services, and noted that SCM initiatives could introduce new users to the platform [20][23] Question: Future goals for monetizing leads in services - Management expressed confidence in further increasing the monetization percentage beyond 30% through continued investment in ad technology and Request-a-Quote improvements [20][24] Question: Product roadmap focus in services - Management indicated that services revenue was up 14% year-over-year and emphasized ongoing enhancements to Request-a-Quote and ad matching technology [27][28] Question: Recovery expectations for RR&O categories - Management acknowledged current weakness in RR&O due to high input costs and inflation but remained optimistic about long-term growth [31][34] Question: Stock-based compensation changes for 2024 and beyond - Management explained that stock-based compensation would be linear throughout the year, with a significant reduction in grants expected [36][37] Question: Scaling SCM efforts in home services - Management stated that they are still in the experimentation stage for SCM and have increased spend modestly, with plans to provide updates as they progress [40][43]

Online business review forum Yelp has added more (artificial intelligence) AI-powered search tools.“For years, we’ve leveraged AI to help reduce consumers’ decision paralysis — from spotlighting the most popular dishes and drinks, to using LLMs (large language models) to power review highlights for more nuanced searches,” the company said Tuesday (Jan. 30) in a news release. “Now, new AI-powered business summaries leverage LLMs to parse recent reviews and describe what you can expect at the business, helpin ...

Yelp is releasing more than 20 new features and updates across the platform that elevate moments of discovery and connection for its users.Yelp is releasing more than 20 new features and updates across the platform that elevate moments of discovery and connection for its users.SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE:YELP), the company that connects people with great local businesses, today is announcing its Winter Product Release with more than 20 new features that elevate the Yelp experience for bo ...

SAN FRANCISCO--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, announced that on January 16, 2024, the Compensation Committee of Yelp’s Board of Directors granted inducement restricted stock unit awards covering 28,916 shares of Yelp’s common stock to five new non-executive employees to induce them to accept employment with Yelp. Each award was granted under the Yelp Inc. 2023 Inducement Award Plan and vests over a four-year period, subject to continued ...

SAN FRANCISCO--(BUSINESS WIRE)--Yelp, the company that connects people with great local businesses, today announced its highly anticipated 11th annual list of the Top 100 Places to Eat in the U.S., celebrating the best eateries across the nation. As Yelp celebrates its 20th anniversary later this year, the brand is spotlighting the stories, trends and data that show how Yelp helps people more meaningfully connect with their local community. Topping this year's list in the No. 1 spot is Tumerico in Tucson ...

Scott Olson/Getty Images News 2024 is going to be a stock pickers' market. So far in the first few trading weeks of the year, the major market indices have swung between gains and losses, but underneath the hood, many stocks especially in the tech sector have swung considerably (EV stocks have tanked, while software and internet names have largely hung on to their December rallies). The way to beat the markets this year is to be choosy on stocks that have very specific upside catalysts as well as an app ...

Yelp CEO Jeremy Stoppelman. Yelp is one of the few internet companies of its generation still run by its founder. Photo: Amy Osborne/Associated PressBuying growth is rarely a cheap concept, especially for small tech companies that lack the pocketbooks of their much larger peers. Yelp knows this well. Founded 19 years ago as a pioneer in the field of online reviews for local businesses, Yelp has established an Internet advertising business now generating more than $1.2 billion a year in revenue. That is a 10 ...

Yelp Inc. (NYSE:YELP) Q3 2023 Earnings Conference Call November 2, 2023 5:00 PM ET Company Participants James Miln - Senior Vice President, Finance and Investor Relations Jeremy Stoppelman - Chief Executive Officer David Schwarzbach - Chief Financial Officer Jed Nachman - Chief Operating Officer Conference Call Participants Jason Kreyer - Craig-Hallum Eric Sheridan - Goldman Sachs Cory Carpenter - J.P. Morgan Sergio Segura - KeyBanc Capital Markets Shweta Khajuria - Evercore ISI Stan Velikov - Wells Fargo O ...