Financial Data and Key Metrics Changes - In 2025, net revenue increased by 4% year-over-year to $1.46 billion, while net income grew by 10% year-over-year to $146 million, resulting in a net income margin of 10% [5][14] - Adjusted EBITDA rose by 3% year-over-year to $369 million, representing a 25% adjusted EBITDA margin [5][14] - For Q4 2025, net revenue decreased by 1% year-over-year to $360 million, and net income fell by 10% year-over-year to $38 million, maintaining a 10% margin [14][15] Business Line Data and Key Metrics Changes - Revenue from RR&O categories declined by 6% year-over-year to $444 million, while advertising revenue from services increased by 8% year-over-year to a record $948 million [6] - Total ad clicks decreased by 7% year-over-year, with average cost per click increasing by 10% year-over-year [7] - Other revenue accelerated significantly, up 17% year-over-year, driven by growth in transaction, subscription, and data licensing revenue [7] Market Data and Key Metrics Changes - Total paying advertising locations decreased by 3% year-over-year, with a decline in RR&O offsetting growth in services [7][15] - App unique devices were down 2% year-over-year as consumers visited restaurants with reduced frequency [7] Company Strategy and Development Direction - The company plans to invest in three strategic initiatives in 2026, focusing on transforming the Yelp experience with AI, delivering AI tools for local businesses, and extending reach in the AI ecosystem [8][10] - The acquisition of Hatch, an AI lead management platform, is expected to enhance Yelp's capabilities in lead management and support growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment for RR&O categories remains challenging, but they are optimistic about the potential of AI to transform consumer experiences and drive engagement [24][25] - For Q1 2026, the company expects net revenue to be in the range of $350 million to $355 million, with full-year revenue guidance of $1.455 billion to $1.475 billion [19] Other Important Information - The company repurchased $292 million worth of shares in 2025, with an additional $500 million authorized for share repurchases in February 2026 [18] - Management aims to reduce stock-based compensation as a percentage of revenue to less than 6% by the end of 2027 [17] Q&A Session Summary Question: Environment for services and revenue outlook for 2026 - Management acknowledged a softening in services demand, particularly in RR&O, but emphasized the importance of Yelp Assistant in driving engagement and monetization [24][25] Question: Details on OpenAI agreement and its impact - Management highlighted the significance of high-quality content for local search and the potential for increased traffic and monetization through the OpenAI partnership [28][29] Question: AI transition and consumer interaction - Management discussed leveraging AI to enhance consumer experiences, including natural language search and the rollout of Yelp Assistant [33][36] Question: Margin trajectory goals for Hatch - Management indicated that the immediate focus for Hatch is on top-line growth rather than margin, with expectations for margins to converge with typical SaaS profiles over time [56] Question: Stabilization of restaurant and retail advertiser base - Management noted the challenges faced by restaurants and retailers but expressed confidence in the potential for recovery and the role of Yelp Assistant in improving consumer interactions [52][53]

Financial Data and Key Metrics Changes - In 2025, net revenue increased by 4% year-over-year to $1.46 billion, while net income grew by 10% year-over-year to $146 million, resulting in a net income margin of 10% [5][14] - Adjusted EBITDA rose by 3% year-over-year to $369 million, representing a 25% adjusted EBITDA margin [5][14] - For Q4 2025, net revenue decreased by 1% year-over-year to $360 million, and net income fell by 10% year-over-year to $38 million, maintaining a 10% margin [14][15] Business Line Data and Key Metrics Changes - Revenue from RR&O categories declined by 6% year-over-year to $444 million, while advertising revenue from services increased by 8% year-over-year to a record $948 million [6] - Total ad clicks decreased by 7% year-over-year, with average cost per click increasing by 10% year-over-year [7] - Other revenue accelerated significantly, up 17% year-over-year, driven by growth in transaction, subscription, and data licensing revenue [7] Market Data and Key Metrics Changes - Total paying advertising locations decreased by 3% year-over-year, with a decline in RR&O offsetting growth in services [7] - App unique devices were down 2% year-over-year as consumers visited restaurants with reduced frequency [7] Company Strategy and Development Direction - The company plans to invest in three strategic initiatives in 2026, focusing on transforming the Yelp experience with AI, delivering AI tools for local businesses, and extending reach in the AI ecosystem [8][10] - The acquisition of Hatch, an AI lead management platform, is expected to enhance Yelp's capabilities in lead management and support growth [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment for RR&O categories remains challenging, but they are optimistic about the potential of AI to transform consumer experiences and drive engagement [23][24] - For 2026, the company expects net revenue to be in the range of $1.455 billion to $1.475 billion, with continued pressure on advertising revenue but growth in other revenue and services [19][20] Other Important Information - The company repurchased $292 million worth of shares in 2025 and authorized an additional $500 million for share repurchases in February 2026 [18] - Management aims to reduce stock-based compensation as a percentage of revenue to less than 6% by the end of 2027 [17] Q&A Session Summary Question: Environment for services and revenue outlook - Management acknowledged a softening in services demand, particularly in RR&O, but emphasized the importance of Yelp Assistant in driving engagement and monetization [23][24] Question: OpenAI agreement and its impact - Management highlighted the significance of the OpenAI agreement, noting that Yelp's high-quality content is essential for competing in local search [27][28] Question: AI transition and consumer interaction - Management discussed leveraging AI to enhance consumer experiences, including natural language search and the rollout of Yelp Assistant [33][36] Question: Hatch acquisition and growth strategy - Management expressed confidence in Hatch's growth potential and the opportunity to leverage Yelp's resources for further expansion [45][46] Question: Revenue mix evolution over five years - Management indicated a focus on diversifying revenue through SaaS offerings, with expectations for SaaS margins to converge with or exceed current ad revenue margins [48][49] Question: Stabilizing restaurant and retail advertising - Management noted the challenges faced by restaurants and retailers but expressed optimism about the potential for recovery and the role of Yelp Assistant in enhancing consumer interactions [52][53]

Financial Data and Key Metrics Changes - In 2025, net revenue increased by 4% year-over-year to $1.46 billion, while net income grew by 10% year-over-year to $146 million, resulting in a net income margin of 10% [5][14] - Adjusted EBITDA rose by 3% year-over-year to $369 million, representing a 25% adjusted EBITDA margin [5][14] - For Q4 2025, net revenue decreased by 1% year-over-year to $360 million, and net income decreased by 10% year-over-year to $38 million, maintaining a 10% margin [14] Business Line Data and Key Metrics Changes - Revenue from RR&O categories declined by 6% year-over-year to $444 million, while advertising revenue from services increased by 8% year-over-year to a record $948 million [6] - Total ad clicks decreased by 7% year-over-year, but average cost per click increased by 10% year-over-year [7] - Other revenue accelerated significantly, up 17% year-over-year, driven by growth in transaction, subscription, and data licensing revenue [8] Market Data and Key Metrics Changes - Total paying advertising locations decreased by 3% year-over-year, with a decline in RR&O offsetting growth in services [8] - App unique devices were down 2% year-over-year as consumers visited restaurants with reduced frequency [8] Company Strategy and Development Direction - The company plans to invest in three strategic initiatives in 2026, focusing on transforming the Yelp experience with AI, delivering AI tools for local businesses, and extending reach in the AI ecosystem [9][10][11] - The acquisition of Hatch, an AI lead management platform, is expected to enhance Yelp's capabilities in lead management and support growth [11][12] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment for RR&O categories remains challenging, but they are optimistic about the potential for growth in services and other revenue streams [19] - For Q1 2026, the company expects net revenue to be in the range of $350 million to $355 million, with full-year expectations of $1.455 billion to $1.475 billion [20] Other Important Information - The company repurchased $292 million worth of shares in 2025, with an additional $500 million authorized for share repurchases in February 2026 [19] - Management aims to reduce stock-based compensation as a percentage of revenue to less than 6% by the end of 2027 [18] Q&A Session Summary Question: Environment for services and revenue expectations for 2026 - Management acknowledged a softening in services demand but emphasized the importance of Yelp Assistant in driving engagement and monetization [25][26] Question: OpenAI agreement and its impact - Management highlighted the significance of the OpenAI agreement for enhancing local search experiences and driving traffic [29] Question: AI transition and consumer interaction - Management discussed leveraging AI to enhance consumer experiences, including natural language search and Yelp Assistant [34][36] Question: Stabilization of restaurant and retail advertiser base - Management noted the challenges faced by restaurants and retailers but expressed confidence in the potential for recovery and the role of Yelp Assistant in improving interactions [52]

February 2026 Investor Presentation Introduction Safe Harbor: Forward-Looking Statements These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the accompanying oral presentation, including statements regarding Yelp Inc.'s ("Yelp" or the "Company") future operations, future performance, expected financial results and future financial position, future revenue and revenue growth rates, futur ...

Introduction Safe Harbor: Forward-Looking Statements These slides and the accompanying oral presentation contain forward-looking statements. All statements other than statements of historical facts contained in these slides and the accompanying oral presentation, including statements regarding Yelp Inc.'s ("Yelp" or the "Company") future operations, future performance, expected financial results and future financial position, future revenue and revenue growth rates, future share repurchase activity, strateg ...

Summary of Yelp Conference Call - December 09, 2025 Company Overview - **Company**: Yelp (NYSE:YELP) - **Industry**: Online local business directory and review platform Key Points and Arguments AI Strategy and Implementation - Yelp is embracing AI to transform user interaction, moving from traditional search methods to conversational interfaces that provide direct answers and actions [4][5] - The company emphasizes the importance of human-generated content, which is seen as a core asset, ensuring trustworthiness and authenticity in reviews [4][5] - Yelp is focusing on practical applications of AI, particularly through the development of the Yelp Assistant and voice products, which aim to enhance user experience and engagement [5][12] Unique Market Position - Yelp boasts nearly 30 million monthly active users, over 7 million businesses, and more than 500,000 paying locations, making it a unique asset in local search [6] - The company claims that 25%-40% of searches on Google have local intent, positioning Yelp as a key player in local search due to its comprehensive directory and curated reviews [8][9] Partnerships and Licensing - Yelp is actively pursuing partnerships to enhance its data licensing initiatives, currently collaborating with platforms like Apple Maps and Alexa [9] - The company believes it is well-positioned to be a leading partner in local search, leveraging its extensive database of reviews and ratings [9][10] User Experience and Engagement - The introduction of the Yelp Assistant aims to improve the request-to-quote process, making it more dynamic and context-specific [12][33] - Initial feedback on voice products has been positive, with users appreciating the human-like quality and responsiveness of the voice assistants [20][21] Financial Performance and Growth - Yelp has shifted its revenue model, with approximately 70% of ad revenue now coming from services, indicating a successful transition towards service-oriented offerings [32] - The company reported a 400% increase in request-to-quote requests through the Yelp Assistant, reflecting improved user engagement and information gathering [37] Cost Management and Margins - Yelp has not experienced significant pressure on margins despite increased spending on data and infrastructure, thanks to effective cost management strategies [41][42] - The company is leveraging competition in the AI model market to keep costs down while maintaining quality [42] Future Outlook - Yelp anticipates that AI will become ubiquitous within three years, although it acknowledges the current challenges in consumer trust and product reliability [29][30] - The company is committed to continuous experimentation and iteration in product development to enhance user experience and engagement [39] Additional Important Insights - The importance of brand equity and perception is highlighted, as users tend to trust Yelp's ratings more than unverified sources [10] - The company recognizes the need for businesses to engage with the platform to ensure their content is accurately represented in AI-driven interactions [21][26] - Yelp is focused on creating a seamless user experience that balances monetization with consumer satisfaction, avoiding an increase in perceived ad load [35][41]

Financial Data and Key Metrics Changes - In Q3 2025, the company reported record net revenue of $376 million, a 4% increase year over year, exceeding the high end of the outlook range by $6 million [11] - Net income rose by 2% year over year to $39 million, representing a net income margin of 10% [11] - Adjusted EBITDA decreased by 3% year over year to $98 million, with an adjusted EBITDA margin of 26%, which was $13 million above the high end of the outlook range [11][12] - Services revenue reached a quarterly record of $244 million, up 7% year over year, while RRNO revenue declined by 2% year over year to $114 million [11][12] Business Line Data and Key Metrics Changes - Services revenue increased by 7% year over year, contributing significantly to overall business performance [5][11] - RRNO revenue experienced a decline of 2% year over year, attributed to a decrease in RRNO locations, which offset growth in services locations [11] - The number of paying advertising locations decreased by 2% year over year to 512,000, with ad clicks declining by 11% year over year [11][12] Market Data and Key Metrics Changes - The operating environment for businesses in the restaurant and retail sectors remained challenging, impacting overall revenue [6] - The company noted a cautious approach among advertisers in their spending as they entered the fourth quarter, particularly in the RRNO segment [19] Company Strategy and Development Direction - The company is focusing on leveraging AI to enhance user experience and business operations, rolling out over 35 new features and updates [5] - The partnership with DoorDash is expected to expand the food ordering network significantly, adding approximately 200,000 new restaurants [9] - The introduction of new AI-driven subscription products, such as Yelp Host and Yelp Receptionist, aims to provide smarter answering services for businesses [9][31] Management's Comments on Operating Environment and Future Outlook - Management highlighted ongoing macroeconomic uncertainties affecting revenue, leading to a lowered full-year revenue outlook [14] - The company anticipates a decrease in net revenue in Q4 compared to Q3, reflecting continued macro pressures [14] - Management remains optimistic about the long-term potential of AI and its ability to transform the business [33] Other Important Information - The company repurchased $75 million worth of shares in Q3 2025, with $127 million remaining under the existing repurchase authorization [13] - The company aims to reduce stock-based compensation as a percentage of revenue to less than 8% by the end of 2025 [12] Q&A Session Summary Question: What is the current macro environment impact on the services segment? - Management noted that macro pressures have persisted, particularly affecting the RRNO segment, while services continue to see consistent demand [19] Question: Can you provide insights on the demand for data licensing products? - Management expressed excitement about the growth in data licensing, emphasizing the value of Yelp's trusted content for AI search platforms [22] Question: How will the DoorDash partnership affect revenue? - The partnership is expected to generate incremental revenue by expanding restaurant coverage and enhancing consumer experience on the Yelp platform [26] Question: What is the scale of the opportunity for Yelp Host and Yelp Receptionist? - Management indicated a large total addressable market (TAM) for these products, with positive early feedback from users [38] Question: What factors are driving the increase in average pricing on the platform? - The increase in average pricing is attributed to a dynamic auction system that optimizes ad budget deployment, resulting in higher cost per click due to fewer clicks overall [40][42]

Core Viewpoint - Yelp's stock experienced an 11.8% increase, closing at $33.83, driven by notable trading volume and a recovery from a 2.1% loss over the past month [1] Group 1: Company Performance - The upcoming quarterly earnings for Yelp are projected at $0.47 per share, reflecting a year-over-year decline of 16.1%, while revenues are expected to reach $367.88 million, marking a 2.1% increase from the previous year [3] - The consensus EPS estimate for Yelp has remained unchanged over the last 30 days, indicating a potential stagnation in stock price movement without earnings estimate revisions [4] Group 2: Strategic Initiatives - Yelp is focusing on AI-driven innovations such as Yelp Assistant, Yelp Host, and Yelp Receptionist, which are contributing to positive market sentiment [2] - The company is experiencing growth in advertising revenue, particularly in the Services category, including Home and Auto Services, which is bolstered by the strategic acquisition of RepairPal [2] - Partnerships and data licensing are expanding monetization opportunities beyond Yelp's core platform [2] Group 3: Industry Context - Yelp operates within the Zacks Internet - Content industry, where another company, DHI Group, has seen a 0.9% decline in its stock price, with a return of -26.9% over the past month [4]

Summary of Yelp (YELP) Conference Call - August 12, 2025 Company Overview - **Company**: Yelp (YELP) - **Industry**: Online local business directory and review service Key Points 1. Q2 Results and Outlook - Yelp experienced a lack of seasonal ramp in advertising budgets due to policy uncertainty, affecting both restaurant retail and services sectors [4][5] - Small businesses are facing rising input costs and consumer uncertainty, impacting Yelp's performance [4][5] 2. Strategic Priorities - **Leading in Services**: Yelp aims to deliver value to advertisers by ensuring high-quality leads through tools like "Request a Quote" and "Yelp Assistant" [6][9] - **Delivering Advertiser Value**: The focus is on matching consumers with service providers effectively, enhancing the overall workflow [10][12] - **Yelp Assistant**: This chatbot has shown a 400% year-on-year increase in generated projects, indicating its effectiveness in consumer interaction [15] 3. Monetization Opportunities - The "Request a Quote" feature generates four times the monetization compared to a single search click, enhancing advertiser value without increasing perceived ad load [17][18] - Yelp is exploring monetization outside its platform, with a tenfold increase in API calls for AI search providers and an annual recurring revenue (ARR) run rate exceeding $10 million [46][47] 4. Acquisition Strategy - The acquisition of RepairPal aims to strengthen Yelp's position in the auto services category, aligning with its goal to lead in various service sectors [31][33] - The integration of RepairPal is progressing well, enhancing Yelp's capabilities in matching consumers with qualified local businesses [32][34] 5. Consumer Experience Transformation - Yelp has modernized its home feed to be more visual and engaging, aiming to provide relevant content to users [35][36] - The company is leveraging AI and chatbots to enhance user engagement and streamline the consumer experience [44] 6. Challenges in Restaurant and Retail Segment - The restaurant sector is under pressure from rising costs and changing consumer behavior, but Yelp remains confident due to its authoritative content and brand recognition [43][44] - The company is modernizing its experience and utilizing chatbots to improve engagement in this segment [44] 7. Internal Efficiency and AI Utilization - Yelp is developing AI voice products for service businesses and restaurants, which will enhance customer interaction and internal processes [49][51] - The company has reduced the time to market for new features by 60% through improved processes and the use of AI [54] 8. Financial Discipline - Yelp is committed to maintaining flat headcount and has a $250 million share repurchase run rate, emphasizing financial discipline in its growth strategy [61][62] 9. Future Outlook - The integration of AI across various business functions is expected to drive significant improvements in efficiency and consumer engagement [60][62] - Yelp is focused on leveraging emergent technologies while ensuring financial success and relevance in the market [62] Additional Insights - The conversation highlighted the importance of human-generated content and its role in Yelp's strategy to maintain authority and relevance in the local business directory space [41][42] - The company is exploring the potential of large language models (LLMs) to enhance internal processes and improve developer productivity [53][54]

Financial Data and Key Metrics Changes - The company reported record net revenue of $370 million, representing a 4% year-over-year increase, exceeding the high end of the outlook range by $3 million [11] - Net income increased by 16% year-over-year to $44 million, translating to $0.67 per share on a diluted basis, with a net income margin of 12% [11][12] - Adjusted EBITDA rose by 10% year-over-year to $100 million, achieving a margin of 27%, which was $11 million above the high end of the outlook range [11][12] - Average cost per click (CPC) increased by 11% year-over-year, reflecting growth in services demand despite a decline in ad clicks by 7% [12][13] Business Line Data and Key Metrics Changes - Services revenue increased by 8% year-over-year to a record $241 million, while revenue from restaurants and retail (RR and O) declined by 5% year-over-year to $113 million [11][12] - The overall number of paying advertising locations decreased by 3% year-over-year to 515,000, driven by a decline in RR and O locations [12] - Project submissions through Yelp Assistant surged by over 400% year-over-year, indicating strong momentum in service offerings [7][10] Market Data and Key Metrics Changes - The operating environment for businesses in the restaurant and retail sectors remains challenging, with macroeconomic pressures impacting consumer sentiment and spending [6][32] - Despite modest increases in advertiser budgets during the second quarter, they did not reach traditional seasonal levels, indicating ongoing caution among advertisers [11][21] Company Strategy and Development Direction - The company is focused on a product-led strategy, emphasizing AI-powered updates and services to enhance user experience and drive growth [6][10] - Yelp is expanding its AI capabilities, including the rollout of Yelp Assistant and live testing of Yelp Host, an AI-powered call answering service for restaurants [9][10] - The company aims to leverage trusted content as a differentiator in an AI-driven market, with significant growth in AI search API calls and data licensing products [9][28] Management's Comments on Operating Environment and Future Outlook - Management noted that heightened macroeconomic uncertainties have affected revenue growth, with expectations of continued flat revenue in the third quarter [15][21] - The company anticipates increased expenses in the second half of the year, primarily due to cost of revenue and seasonal sales and marketing expenses [15][16] - Despite current challenges, management remains optimistic about long-term shareholder value creation through investments in AI and service enhancements [17] Other Important Information - The company repurchased $65.9 million worth of shares at an average price of $35.58 per share, with $2 million remaining under the existing repurchase authorization [14][15] - The company aims to reduce stock-based compensation expense as a percentage of revenue to less than 8% by the end of the year and less than 6% by 2027 [13][14] Q&A Session Summary Question: Can you walk us through the deceleration in services revenue growth this quarter? - Management attributed the softness in services revenue to macroeconomic and policy changes affecting consumer sentiment, noting that budgets increased but not to traditional seasonal levels [21][22] Question: Can you provide more detail on the AI search API and data licensing momentum? - Management reported a 10x increase in API usage over the last two months, indicating strong demand for local content in AI search applications [25][28] Question: Has there been any change in competitive pressure from food delivery providers? - Management indicated that macroeconomic uncertainty continues to be the main story affecting the restaurant segment, with competitive pressures being a secondary factor [32] Question: How does Yelp Assistant support activity in the restaurant category? - Management expressed optimism that Yelp Assistant will enhance user experience by providing tailored recommendations, potentially increasing engagement in high-frequency categories like restaurants [33][34]