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.
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.