Yelp Earnings: Revenue Growth And Guidance Boost Stock
Yelp (NYSE:YELP) reported its earnings for Q2 FY16 on August 9th and it continued to report growth in revenue. However, it surprised the market by posting a GAAP net income of $0.499 million, or a penny per share against the widely expected per-share loss of 7 cents. As a result of the growth in revenue, the company has revised its revenue guidance for FY2016 to $700-708 million. The street viewed this revision as a positive for the company, and Yelp’s stock is trading 15% higher in the morning-after market.
On the downside, the company added 7,000 new local advertising businesses during the quarter. This rate of addition was slower than expected. Based on this, we estimate that the company will add 700 businesses each week to exit the year with 146,000 paying business accounts. A summary of the results is as follows:
Have more questions about Yelp? See the links below.
- What’s Yelp’s Revenue And Earnings Breakdown?
- What’s Yelp’s Fundamental Value Based On Expected 2015 Results?
- How Has Yelp’s Revenue Composition Changed Over The Last 5 Years?
- By What Percentage Can Yelp’s Revenues And EBITDA Grow In The Next 3 Years?
- How Big Can Yelp’s International Business Become By 2020?
- How The Value Of Reviews Has Grown For Yelp In The Last Two years?
- How Geographic Expansion Helped Yelp Grow its Claimed Business In The Last 5 Years?
- How Important Has Mobile Platform Become For Yelp In The Last 2 Years?
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