Yelp Earnings Preview: Revenue Expected To Increase Even As Growth In Performance Metrics Slow

YELPYTD-34.6%SPYYTD+12.5%XLCYTD-5.7%
Analyze YELP →

Yelp (NYSE:YELP) is set to release its Q2 2015 earnings on Tuesday, August 9th. [1] Although, the company continues to report good revenue growth, its performance metrics have grown at a decreasing pace — indicating that growth across its businesses is slowing down. Nevertheless, most of Yelp’s growth stems from the adoption of its mobile app. Because user base growth for its app continues, we believe that revenue for the company grew in Q2. However, the pace of local ads growth slowed due to international expansion that directly impacts the monetization rate of the division. In this earnings announcement, we will continue to monitor the monetization rate of its existing and new markets, from both mobile and desktop ads. A summary of our expectations is as follows:

Yelp Q2 2016ReDo

Have more questions about Yelp? See the links below.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Yelp
Notes:
  1. Yelp’s Investor Website [↩]