Yelp Earnings: This is Not What Investors Wanted
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 down 5% after hours after being up 5% in regular trading.
Results: Net income increased to $-5.3 million (-8 cents per diluted share) in the quarter versus a net loss of $9.1 million in the year-earlier quarter.
Revenue: Increased 64% to $41.2 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Reported adjusted net loss of 8 cents per share. By that measure, the company missed the mean analyst estimate of $-0.04. It beat the average revenue estimate of $40.29 million.
Quoting Management: “2012 was a tremendous year for Yelp,” said Jeremy Stoppelman, Yelp’s chief executive officer. “We completed a successful IPO, launched new products to improve the Yelp experience for consumers and business owners, expanded into new markets while increasing our presence in existing ones, and completed our first acquisition. We believe 2013 will be a tipping point for our brand in Europe as Yelp continues to become a trusted local resource. Our mobile strategy will remain a top priority as engagement increases, and we will continue to focus on the business owner, creating more ways to measure the value of Yelp leads.”
Key Stats (on next page)…
Revenue increased 13.28% from $36.37 million in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials.)