: Yelp reports fifth straight quarter of record revenue

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Yelp Inc. generated record revenue for a fifth straight quarter, and Chief Financial Officer David Schwarzbach told MarketWatch on Thursday that resilient ad-sales trends continue in the current quarter.

“Advertisers and consumers continue to navigate a complex macro environment, and are using our service to connect them to trusted local businesses,” Schwarzbach said in an interview.

Yelp
YELP,
-1.25%

reported third-quarter net income of $9.1 million, or 13 cents a share, compared with net income of $18.1 million, or 23 cents a share, in the same quarter a year ago. Net revenue improved 15% to $308.9 million from $269.2 million last year.

Analysts polled by FactSet expected net income of 21 cents a share on revenue of $308 million. Yelp’s stock initially rose over 4% in after-hours trading immediately following the release of the results, after declining 1.3% to $36.33 in regular trading.

Record advertising revenue from Yelp’s Services businesses ($181 million, up 15% year-over-year), and Restaurants, Retail & Other businesses ($113 million, up 13%) led sales.

Yelp narrowed its annual net revenue guidance to between $1.185 billion and $1.195 billion in 2022. Analysts are forecasting $1.197 billion, according to FactSet.

The results underscore continued ad demand at Yelp and offered much-needed relief to investors following some disappointing financial numbers from Alphabet Inc.’s 
GOOGL,
-4.07%

GOOG,
-4.11%

Google, Facebook parent company Meta Platforms Inc. 
META,
-1.80%
,
 and Snap Inc.
SNAP,
-3.98%
.
 Those companies, who rely heavily on advertising, have been battered by a confluence of inflation, foreign-exchange tailwinds, the war in Ukraine and a deepening recession.

Yelp shares are flat in 2022; the broader S&P 500 index 
SPX,
-1.06%

is down 22%.

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