Yelp (NYSE:YELP) has continued to grow at a rapid pace since its IPO, and has expanded into various new international markets like Norway, Denmark and Finland. Last week, it extended its operations to the U.K., and opened a new sales office in London. Yelp is making an aggressive push to expand into Europe, and will be using its U.K. operations as the main hub for its European expansion plans. 
Yelp has a huge presence in the U.S. and has been trying to expand into international markets to continue with its growth spree. It has launched into several markets worldwide, including Canada, the U.K., Ireland, France, Germany, Austria, The Netherlands, Spain, Italy, Switzerland, Belgium, Australia, Sweden, Denmark, Norway and Finland.
We expect international expansion to drive the next phase of growth for Yelp. Though there might be a decline in the average revenue generated per local business or average ad revenue per user, we expect that to to be outweighed by higher growth in Yelp’s user base and active local business accounts.
Yelp is one of the largest online business search, review and recommendation services that enables consumers to access ratings and read reviews and opinions about local businesses like hotels, restaurants, salons, dentists and mechanics on its website. Local businesses are reviewed and rated by contributors. Yelp generates revenue mainly from local business advertising, display advertising and from additional services like Yelp deals, and deals with reservation services like OpenTable (NASDAQ:OPEN).
It competes primarily with online business review services like Google (NASDAQ:GOOG) Places, Yahoo (NASDAQ:YHOO) Local, Angie’s List, CityLocal and Gumtree; display advertising players like Google, Yahoo, Facebook and AOL (NYSE:AOL); and daily-deal sites like Groupon (NASDAQ:GRPN) and LivingSocial.
We currently have a $10 Trefis price estimate for Yelp, which stands at nearly half its current market price.Notes: