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Yelp Inc.’s stock climbed 10% in after-hours trading Thursday, when the company announced record annual revenue and strong guidance for the year.
Yelp
YELP,
reported fourth-quarter net income of $20.15 million, or 28 cents a share, compared with net income of $23.2 million, or 30 cents a share, in the same quarter a year ago. Net revenue improved 13% to a record $309.1 million from $273.4 million last year — Yelp’s sixth consecutive quarterly revenue record.
Analysts polled by FactSet expected net income of 30 cents a share on revenue of $306 million.
Yelp said it expects 2023 net revenue to be between $1.29 billion and $1.31 billion as it continues executing on its strategic initiatives. Analysts surveyed by FactSet expect that figure to be $1.286 billion.
The results and guidance illustrate continued ad demand at Yelp and offer much-needed relief to investors following some disappointing financial numbers from Alphabet Inc.’s
GOOGL,
GOOG,
Google, Facebook parent company Meta Platforms Inc.
META,
and Snap Inc.
SNAP,
Yahoo is also about to eliminate more than 1,600 jobs because of poor ad-tech sales. Those companies, which rely heavily on advertising, have been battered by cost cuts from ad buyers and by foreign-exchange tailwinds.
“It comes down to two parts: Consumers are able to rely on Yelp to make a decision, and for advertisers, it’s a high-intent, more affluent audience,” Chief Financial Officer David Schwarzbach told MarketWatch. He called 2022 the company’s best year yet, with net revenue a record $1.19 billion, up 16% from the prior year.
Yelp’s shares rose 10% in after-hours trading, after declining 3% to $30.87 in regular trading. The stock is up 13% so far this year. The broader S&P 500
SPX,
is up 6.3%.
