logo
Share SHARE
FONT-SIZE Plus   Neg

Yelp Shares Surge 7% On Rosy Outlook, Q4 Loss Narrows

Shares of Yelp, Inc. (YELP) surged more than seven percent in extended trading on Wednesday after the consumer review website provided rosy revenue outlook for the first quarter and full-year 2014.

The company also reported a loss for the fourth quarter that narrowed from last year, reflecting strong double-digit revenue growth. Loss per share for the quarter matched analysts' expectations, while quarterly revenues topped their estimates.

San Francisco-based Yelp reported a net loss of $2.07 million or $0.03 per share for the fourth quarter, narrower than $5.32 million or $0.08 per share in the prior-year quarter.

On average, 25 analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net revenue for the quarter surged 72 percent to $70.65 million from $41.16 million in the same quarter last year, and topped twenty-eight Wall Street analysts' consensus estimate of $67.27 million.

Yelp said cumulative reviews for the quarter grew 47 percent year-over-year to about 53.0 million. Average monthly unique visitors grew 39 percent to about 120 million, and active local business accounts surged 69 percent from the year-ago quarter to about 67,000.

Yelp added that it had about 53 million mobile unique visitors in the fourth quarter, including both mobile web and mobile app users, with 30 percent of new reviews being contributed through mobile devices.

During the quarter, Yelp said completed the integration of Qype, migrating 1.8 million reviews and 1.4 million photos to Yelp from Qype Germany. Yelp also expanded its European sales efforts and is now selling Yelp products in France, Spain and Germany.

Yelp is now available in 24 countries on five continents, with the launches of New Zealand, the Czech Republic, Brazil and Portugal in 2013.

"2013 was an outstanding year for Yelp. We enhanced the mobile experience, brought on thousands of new local business customers and completed the integration of Qype, which accelerated our European expansion," CEO Jeremy Stoppelman said in a statement.

For fiscal 2013, Yelp reported a net loss of $10.07 million or $0.15 per share, narrower than $19.15 million or $0.35 per share in the prior year. Net revenue for the full year surged 69 percent to $232.99 million from $137.57 million in the previous year.

Street was looking for full-year 2013 loss of $0.15 per share on annual revenues of $229.64 million.

Looking ahead, Yelp expects first-quarter revenues in a range of $73.5 million to $74.5 million, and revenues for the full-year 2014 between $353 million and $358 million. Analysts were looking for first quarter revenues of $73.25 million, and full-year 2014 revenues of $347.85 million.

"Looking to 2014, we will continue our geographic expansion, add new products and programs for our community of writers and find even more ways to drive value to business owners," Stoppelman added.

YELP closed Wednesday's regular trading session at $75.23, down $2.56 or 3.29% on a volume of 6.47 million shares. However, the stock surged $5.57 or 7.40% in the after-hours trading.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The recent week marked the lull before the storm, with very few market moving economic numbers released during the week. However, the economic news flow picks up pace in the upcoming week, offering glimpses into every vehicle of economic growth, ranging from consumers to private sector activity to housing.... Life expectancy at birth in the U.S. is already lower than most other developed nations and is now projected to fall further behind by 2030, according to a new study. It also suggests that by 2030, national female life expectancy in South Korea could break the 90 year barrier. Department store chain J.C. Penney Co. Inc. on Friday reported a turnaround to profit in the fourth quarter as a slight decline in sales was more than offset by lower expenses. Adjusted earnings per share for the quarter beat analysts' expectations, while revenues slightly missed their estimates. Earlier today, J.C. Penny announced a plan to optimize its national retail operations.
comments powered by Disqus
Follow RTT