Summary of Yelp (YELP) Conference Call - May 29, 2025 Company Overview - **Company**: Yelp (YELP) - **Industry**: Online review and local services platform Key Points Evolution of Business Model - Transition from a sales headcount-driven growth model to a product-driven growth model, focusing on product delivery and leveraging emerging technologies like AI and large language models [4][5] - Approximately two-thirds of revenue now comes from services, marking a significant shift from the traditional focus on restaurant and retail reviews [5] Services Business Performance - Services grew at approximately 11% each quarter in 2024, with a 14% growth in Q1 2025, partly due to the acquisition of RepairPal [6][7] - Home services have been a major driver of growth, with enhancements in the "Request Quote" feature allowing better matching of consumers with service providers [7][8] - Expansion into other service categories, including auto services through the RepairPal acquisition, is expected to drive further growth [8][20] Multi-Location Services Strategy - Focus on mid-market and enterprise customers to increase advertising revenue from services [12][13] - Development of APIs and lead management systems to support enterprise customers across multiple locations [13][14] Challenges in Restaurant and Retail Sector - The restaurant and retail segment has faced challenges due to rising input costs and inability to pass these costs onto consumers, resulting in a 3% decline in Q1 2025 [24][25] - Competition from food delivery platforms and retail ad networks has increased, impacting advertising budgets [28][29] - Yelp is enhancing consumer experience and ad matching technology to retain advertiser interest [26][30] Traffic and Engagement Insights - Experimentation with paid traffic acquisition led to increased project generation but did not result in higher ad budgets from advertisers, prompting a pullback in spending [31][33] - Focus on ROI-driven strategies to ensure that advertising budgets are effectively utilized [34] AI Integration and Future Outlook - AI is viewed as a significant opportunity, with investments in Yelp Assistant and other AI-driven features to enhance user experience and service matching [35][36] - Plans to leverage AI for improving call handling and customer engagement [37][38] Macroeconomic Sensitivity - The restaurant and retail business is more cyclical and sensitive to economic downturns, while the services business has a significant non-discretionary component [41][42] - Service professionals tend to increase advertising during economic slowdowns to maintain business [42] Revenue Guidance and Margin Outlook - Revenue guidance for Q2 2025 indicates a slowdown, with expectations for acceleration in the second half of the year [44] - Factors contributing to margin pressure include increased data spending for AI products, the lower gross margin from RepairPal, and fluctuations in employee-related expenses [48][51] Conclusion - Yelp is focused on delivering value to both consumers and advertisers, with a strong emphasis on enhancing product offerings and leveraging AI technologies to drive future growth [43][52]

May 9, 2025 08:00 AM GMT Internet | North America 1Q SMID Cap Wrap | What's Changed | | | | --- | --- | --- | | Playtika Holding Corp (PLTK.O) | From | To | | Price Target | $5.75 | $5.50 | | Compass, Inc. (COMP.N) | | | | Price Target | $8.50 | $8.00 | | Reaction to earnings | | | | Unchanged | Modest upside | Largely unchanged | | Impact to our thesis | Financial results versus consensus | Direction of next 12-month | | | | consensus EPS | | Source: Company data, Morgan Stanley Research | | | | Reaction t ...

Yelp (YELP) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Kate Krieger - Director of Investor RelationsJeremy Stoppelman - Co-Founder, CEO & DirectorDavid Schwarzbach - CFOSergio Segura - Vice PresidentJed Nachman - COONitin Bansal - Vice President Conference Call Participants Cal Bartyzal - Equity Research AnalystNone - Analyst Operator Hello, and welcome to Yelp's First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After ...

Yelp (YELP) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Company Participants Kate Krieger - Director of Investor RelationsJeremy Stoppelman - Co-Founder, CEO & DirectorDavid Schwarzbach - CFOSergio Segura - Vice PresidentJed Nachman - COONitin Bansal - Vice President Conference Call Participants Cal Bartyzal - Equity Research AnalystNone - Analyst Operator Hello, and welcome to Yelp's First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After ...

Yelp Inc. (NYSE:YELP) Q4 2024 Results Conference Call February 13, 2025 5:00 PM ET Company Participants Kate Krieger - Director, IR Jeremy Stoppelman - CEO David Schwarzbach - CFO Jed Nachman - COO Conference Call Participants Eric Sheridan - Goldman Sachs Jason Cryer - Craig Hallam Sergio Segura - KeyBanc Capital Markets Shweta Khajuria - Wolfe Research Kishan Patel - Raymond James Nitin Bansal - Bank of America. Colin Sebastian - Baird Jeremy Stoppelman Welcome everyone. Yelp Inc. delivered record net rev ...