Yelp Earnings: Here’s Why Investors are Happy Now

Yelp (NYSE:YELP) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 10.67%.

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Yelp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.08 in the quarter versus EPS of $-0.31 in the year-earlier quarter.

Revenue: Rose 68.42% to $46.13 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Yelp reported adjusted EPS loss of $0.08 per share. By that measure, the company missed the mean analyst estimate of $-0.06. It beat the average revenue estimate of $44.57 million.

Quoting Management: “We had a great start to the year and are excited about the large opportunity in front of us,” said Jeremy Stoppelman, Yelp’s chief executive officer. “This quarter we achieved many milestones including a record 102 million unique visitors on a monthly average basis, demonstrating the strength of our content and the trust we have earned from consumers. We provide valuable leads to local businesses because consumers turn to Yelp at the critical point when they are making purchase decisions. Looking to the rest of the year, we will continue to focus our product innovation around the mobile experience and new features to better serve the consumer and local business owners, and we will continue integrating Qype into the Yelp platform.”

Key Stats (on next page)…

Revenue increased 12.07% from $41.16 million in the previous quarter. EPS decreased to $-0.08 in the quarter versus EPS of $-0.06 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0 to a loss $0.01. For the current year, the average estimate has moved down from a profit of $0.02 to a loss of $0.04 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)