Yelp revenues up 67%, with distribution on mobile and with partners being the key to growth
Skift Take
Now that it is in saturation mode in major U.S. markets, the key to growth is mid-market destinations and abroad, as well as better integration and distribution on mobile platforms.
Yelp reported its second ever earnings since becoming public, and had a good Q2: revenues rose to $32.7 million from $19.6 million last year, up 67%, though net losses came in at $2 million, higher than $1.2 million the year ago but better than analyst expectations. It also raised its full year expectations, and Yelp's stock is up after hours.
The skinny: it is expanding into lots of new markets, and its mobile usage is increasing rapidly. In the next few quarters, key metric would be to see how its new deals with Bing and Apple iOS work out, in terms of usage metrics and revenues.
Release below:
Yelp Announces Second Quarter 2012 Financial Results
Net Revenue Increases 67% Over Second Quarter 2011
SAN FRANCISCO, Aug. 1, 2012 /PRNewswire/ -- Yelp Inc. (NYSE: YELP), the company that connects consumers with great local businesses, today announced financial results for the second quarter ended June 30, 2012.
(Logo: http://photos.prnewswire.com/prnh/20050511/SFW134LOGO)
Net revenue was $32.7 million in the second quarter of 2012, reflecting 67% growth in net revenue from the second quarter of 2011
Cumulative reviews grew 54% year over year to more than 30 million
Average monthly unique visitors grew 52% year over year to more than 78 million*
Active local business accounts grew 113% year over year to approximately 32,000
Net loss in the second quarter of 2012 was $(2.0) million or $(0.03) per share, compared to a net loss of $(1.2) million, or $(0.08) per share, in the second quarter of 2011. Adjusted EBITDA for the second quarter of 2012 was approximately $1.6 million, compared to$649,000 for the second quarter of 2011.
"Yelp's second quarter performance highlights the underlying power of our model," said Jeremy Stoppelman, Yelp's chief executive officer. "By focusing almost singularly on cultivating rich, authentic local content, we have created a unique platform that is rapidly becoming the de facto local search engine for connecting consumers with great local businesses. We are now active in 90 Yelp markets around the world and are seeing an increase in our consumer engagement, especially on mobile, where their connection to local businesses is enhanced by the location-based capabilities of their mobile devices."
"We achieved record results across all of our financial and operating metrics and notably delivered $1.6 million of adjusted EBITDA," added Rob Krolik, Yelp's chief financial of
