Investors give Yelp a good rating as online review firm beats expectations

 
William Turvill
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Yelp chief executive Jeremy Stoppelman was pleased with a “great second quarter” (Source: Getty)

Online review company Yelp’s share price leapt in after-hours trading on Tuesday after it beat analyst expectations in the second quarter of 2016.

The figures

The US company reported net revenue of $173.4m (£133m) in the three months to 30 June, up 30 per cent. Wall Street had expected a turnover of $169.8m.

Some $151.9m of this came in 'local' revenue, up 41 per cent, with the number of local advertising accounts up 32 per cent to 128,000.

Read more: Yelp share price surges on revenue of $158.6m

The firm said cumulative reviews grew by 30 per cent year-on-year to around 108m.

Yelp’s share price jumped more than eight per cent to $35.20 in after-hours trading.

Yelp Yelp | mobile image

Why it's interesting

For the full year, Yelp now expects to report net revenue of between $700m and $708m, up around 28 per cent on its 2015 performance.

It is predicting adjusted earnings before interest, taxation, depreciation and amortisation (Ebitda) of between $100m and $108m.

Read more: Yelp shares suspended in the US after results released early

What the company said

Jeremy Stoppelman, Yelp’s co-founder and chief executive, hailed a “great second quarter”, pointing to local revenue growth.

Our mission is to connect people with great local businesses and we did that through more than 300m connections in the second quarter – which include mobile calls, clicks for map views and directions, food orders, restaurant reservations, and new reviews, among other actions. In the second half of the year, we look to execute against our three strategic priorities of growing the core local advertising business, boosting awareness of Yelp and driving transactions.

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