Free Research Report as Yelp’s Revenues Jumped 13% and Net Loss Narrowed

Stock Monitor: Bilibili Post Earnings Reporting

LONDON, UK / ACCESSWIRE / June 11, 2018 / If you want access to our free earnings report on Yelp Inc. (NYSE: YELP), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=YELP. The Company reported its first quarter fiscal 2018 operating and financial results on May 07, 2018. The online business reviews Company outperformed top- and bottom-line expectations. Additionally, the Company updated its revenue guidance for the upcoming quarter and full fiscal year. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Bilibili Inc. (BILI), which also belongs to the Technology sector as the Company Yelp. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Yelp most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the first quarter of the fiscal year 2018, Yelp's total revenues grew to $223.1 million, reflecting an increase of 13% compared to $198.2 million. Excluding the impacts of the sale of Eat24 to Grubhub and the acquisitions of Nowait and Turnstyle, the Company's revenues grew by 22% on a y-o-y basis. Yelp's revenue numbers beat analysts' estimates of $220.1 million.

During Q1 2018, Yelp's cost of revenues was $15 million, down 13% on a y-o-y basis, primarily due to the sale of Eat24. The Company's gross profit was $208 million, up 15% on a y-o-y basis. The Company's gross margins improved 2% compared to the year ago same period, reaching 93% in the reported quarter.

For Q1 2018, Yelp's sales and marketing (S&M) expenses totaled $120 million, up 10% on a y-o-y basis, driven by expenses associated with an increase in the average number of sales employees of 29% since Q1 2017. The Company's product development expenses were $51 million in the reported quarter, driven by a greater investment in the Yelp consumer experience, the business owner product portfolio, and the supporting infrastructure and systems.

Yelp's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) were $33 million in Q1 2018, up 10% from $30 million in Q1 2017. The Company's adjusted EBITDA margin was 15% in the reported quarter, down slightly from the comparable period in 2017, primarily due to an investment in employee growth in sales and product development.

For Q1 2018, Yelp's net loss improved to $2 million, or $0.03 loss per share, compared to a net loss of $4 million, or $0.05 loss per share, in Q1 2017. The Company's revenue numbers were better than Wall Street's estimates for a loss of $0.05 per share.

Segment Results

During Q1 2018, Yelp's advertising revenues were $214 million, reflecting a 20% increase on a y-o-y basis, driven by strong sales productivity and an increase in the size of the local salesforce of 29%. The strength in advertising revenues for the reported quarter also reflected a record increase in advertising customers during the reported quarter. Yelp's paying advertising accounts increased sequentially by 14,000 to 177,000 in Q1 2018, and up 27% on a y-o-y basis. The increase in advertising accounts was primarily due to strong sales productivity driven by the positive response to the Company's transition to offering non-term contracts.

For Q1 2018, Yelp's transactions revenues were $4 million compared to $18 million in Q1 2017. The decrease in transactions revenues reflected the absence of revenues from Eat24, which was sold in October 2017 and which generated $17 million in revenues in Q1 2017.

Cash Matters

As of March 31, 2018, Yelp held $830 million in cash, cash equivalents, and investments on its balance sheet, with no debt. The Company's cash, cash equivalents, and investments have been reduced by $17 million year to date, as cash generated from operations has been offset by capital spending and share repurchase activities.

During Q1 2018, the Company repurchased 822,000 shares at an aggregate purchase price of $33 million. The stock repurchase program, authorized in July 2017, had a remaining unused capacity of $154 million as of March 31, 2018.

Outlook

For the full fiscal year 2018, Yelp is forecasting revenues to be in the range of $943 million to $967 million, with adjusted EBITDA of $179 million to $188 million. For the second quarter of the fiscal year 2018, Yelp is anticipating revenues to be in the band of $230 million to $233 million, and adjusted EBITDA to be in the range of $39 million to $42 million.

Stock Performance Snapshot

June 08, 2018 - At Friday's closing bell, Yelp's stock advanced 1.67%, ending the trading session at $42.04.

Volume traded for the day: 1.21 million shares.

Stock performance in the previous six-month period – up 0.38%; past twelve-month period – up 38.15%; and year-to-date – up 0.19%

After last Friday's close, Yelp's market cap was at $3.50 billion.

Price to Earnings (P/E) ratio was at 24.15.

The stock is part of the Technology sector, categorized under the Internet Information Providers industry. This sector was up 0.2% at the end of the session.

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