Yelp Gears Up to Report Q4 Earnings: Is a Beat in the Cards?

Core Viewpoint - Yelp Inc. is expected to report its fourth-quarter 2024 results on February 13, with anticipated revenues and earnings showing positive year-over-year growth [1][2]. Revenue Expectations - The company forecasts revenues between $347 million and$352 million, with a Zacks Consensus Estimate of $350.7 million, indicating a year-over-year increase of 2.4% [2]. - The consensus estimate for earnings is set at 51 cents per share, suggesting a significant year-over-year increase of 37.8% [2]. Historical Performance - Yelp's earnings have outperformed estimates in three of the last four quarters, with an average surprise of 143.7% [3]. Factors Influencing Q4 Performance - Increased advertising revenues are expected to positively impact Yelp's fourth-quarter performance, driven by improved ad formats and retention rates for non-term advertisers [4]. - The company's strategy to offer products at various price points is likely to enhance the number of advertising customers [5]. - Growth in the home services category and Request-a-Quote projects, which saw a 25% year-over-year increase in the last quarter, is anticipated to continue [6]. - Ongoing investments in AI and machine learning to optimize ad content for consumers are expected to attract more advertisers [7]. Earnings Prediction - The earnings model indicates a likely earnings beat for Yelp, supported by a positive Earnings ESP of +12.87% and a Zacks Rank of 3 (Hold) [8][9].