Yelp Stock Gains as Q4 Earnings and Revenues Beat Estimates

Core Insights - Yelp Inc. reported better-than-expected fourth-quarter 2024 results, with shares gaining 2.3% in extended trading [1] - The company's quarterly earnings increased by 67.6% to $0.62 per share, surpassing the Zacks Consensus Estimate by 21.6% [1][6] - Revenue for Q4 2024 rose 6% year over year to $362 million, exceeding the consensus mark by 3.2% [2][6] Financial Performance - Advertising revenues, which constitute 95.6% of total revenues, grew 6% year over year to $346 million, driven by increased ad clicks [3] - The Services business saw advertising revenues increase by 10.7% year over year to $224.8 million, while the RR&O division experienced a decline of 2.8% to $120.8 million due to macroeconomic challenges [4] - Total costs and expenses decreased by 3% year over year to $309 million, with adjusted EBITDA climbing 5% to $101 million, maintaining a margin of 28% [5] Annual Performance - For the full year 2024, Yelp's revenues increased by 6% to $1.41 billion, surpassing the Zacks Consensus Estimate of $1.4 billion [6] - The company's earnings for 2024 jumped 39.3% to $1.88 per share, exceeding the consensus estimate of $1.80 [6] Balance Sheet and Cash Flow - As of December 31, 2024, Yelp had cash and equivalents totaling $317.9 million with no debt [7] - The company generated operating cash flow of $71 million and free cash flow of $60 million in Q4, with annual figures of $285.8 million and $248.5 million, respectively [7] Guidance - For Q1 2025, Yelp anticipates revenues between $350 million and $355 million, with adjusted EBITDA projected at $65-$70 million [8] - For the full year 2025, the company expects revenues between $1.470 billion and $1.485 billion, with adjusted EBITDA in the range of $345-$360 million [9]