Online-reviews site increases yearly guidance, Yelp CFO tells MarketWatch ‘it’s a stronger business than ever’
Yelp Inc. turned a surprising profit in the second quarter and boosted its expectations for the year in response, sending shares higher in after-hours trading Thursday.
Yelp YELP on Thursday afternoon reported second-quarter net income of $4.2 million, or 6 cents a share, compared with a net loss of $24 million, or 33 cents a share, in the year-ago quarter. Adjusted EBITDA rose to $63.8 million in the quarter from $11.1 million a year ago.
Revenue improved 52% to $257.2 million from $169 million a year ago for the online-reviews site. Analysts surveyed by FactSet had expected a net loss of 9 cents a share on revenue of $246 million.
“It’s a stronger business than ever as part of the Yelp evolution,” Yelp Chief Financial Officer David Schwarzbach told MarketWatch before the results were announced. One highlight: advertising revenue from restaurants, retail, and other businesses improved 76% to $92 million year-over-year from $53 million.
Reflecting that bullish outlook, the company raised its full-year revenue guidance to $1.03 billion from $1.01 billion, and adjusted EBITDA to $220 million from $200 million.
Yelp’s stock jumped nearly 14% in after-hours trading immediately following the release of the results Thursday, following a 3.5% gain to $37.20 in the regular trading session.
“The Yelp of 2021 looks very different than it did when we began implementing our strategic initiatives in 2019, as we continue to connect consumers with local businesses through trusted content and reviews,” Yelp Chief Executive
Jeremy Stoppelman said in a statement.
This week, the company unveiled a new logo and suite of app icons. It also added features that let customers filter businesses by “proof of vaccination required” and “all staff fully vaccinated” when searching for local businesses and restaurants.
Yelp’s shares are up 14% so far in 2021. The broader S&P 500 index SPX has gained 18% this year.