The review is in: Yelp’s quarterly results beat expectations

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Yelp's home page featuring Chicago's top restaurants according to the site. Gordy Stillman/Medill
Yelp’s home page featuring Chicago’s top restaurants according to the site.
Gordy Stillman/Medill

UPDATED 3:40 CDT

Yelp Inc. said revenue rose 66 percent to $76.4 million in the first quarter, a larger-than-expected increase, and lifted its outlook for future revenue in 2014. Shares of the San Francisco-based online business review website jumped more than 4 percent in after-hours trading.

Global expansion was a notable factor in the company’s growth, with international traffic rising 95 percent year-over-year. International reviews grew 210 percent in the same period. Chief executive Jeremy Stoppelman said that in the next 5-10 years the international segment could grow to between 30 and 40 percent of Yelp’s business.

Losses per share narrowed to 4 cents per diluted share, an improvement from a loss of 8 cents per diluted share in the year-ago period, and better than the 6-cent-per-share loss expected.

On the growth of international expansion, Stoppelman said that while the Yelp product improves, it still takes a “period of years,” for a new market to develop. Stoppelman gave the example that one market might be more open to an American company like Yelp than another. As of 4:30 p.m. CDT shares are at $60.44, up about 3.6 percent from today’s closing price of $58.32.

Yelp shares are still down significantly from a recent peak of 98.04 on March 4, 2014. In March, Yelp, along with other technology stocks such as Google and Facebook all slid over the course of the month.
11:42 CDT:

Yelp Inc. will announce quarterly results this afternoon at 3:30 p.m. CDT and analysts expect revenue slightly above the company’s published expectations of between $73.5 million and $74.5 million.

According to Bloomberg, the analysts’ consensus is for $75.1 million in revenue for the quarter, up from $46.1 million in the year-ago quarter.

Yelp has reported a loss every quarter going as far back as 2010, according to Bloomberg. Analysts expect the company to report a loss of about 6 cents per share, a narrow improvement from the 7-cent loss in the year-ago period.

Yelp went public in March 2012 and is expected to announce its first positive earnings later this year. As of 10:07 a.m. CDT shares are down 4.6 percent ahead of the earnings announcement.

Click here to view an interactive info-graphic showing Yelp’s first quarter earnings history.

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