Yelp Stock Rises As Investors Cheer Q4 Beat, Positive Guidance: Retail’s Unimpressed
Synopsis
The company expects Services to continue to drive its business performance in 2025 and RR&O to remain pressured.
Yelp, Inc. (YELP) stock climbed over 2% in Thursday’s extended trading after the B2C platform provider announced better-than-expected fiscal year 2024 fourth-quarter results and issued above-consensus guidance.
San Francisco, California-based Yelp reported fourth-quarter earnings per share (EPS) of $0.62, up from the $0.37 earned a year ago and beating the consensus estimate of $0.53.
Net revenue climbed 5.7% year over year (YoY) to $361.95 million versus the consensus estimate of $350.16 million and the guidance range of $347 million to $352 million.
Advertising revenue rose 6% to $346 million, or about 96% of the total. Services ad revenue increased about 11% to $224.84 million but restaurant, retail and other (RR&O) ad revenue fell about 3% to $120.80 million.
Yelp noted that adjusted earnings before interest, taxes, depreciation and amortization rose 5.2% YoY to $101.06 million, more than the $84 million to $89 million guidance, while adjusted EBITDA margin remained flat at 28%.
The company expects 2025 net revenue to be in the range of $1.470 billion to $1.485 billion and adjusted EBITDA to be in the range of $345 million to $360 million. Analysts, on average, estimate, revenue of $1.48 billion for the year.
It guided first-quarter net revenue in the range of $350 million to $355 million versus $347.75-million consensus estimate, and adjusted EBITDA of $65 million to $70 million.
The company expects Services to continue to drive its business performance in 2025 and RR&O to remain pressured.
On Stocktwits, retail sentiment toward Yelp stock turned ‘bearish’ (36/100) from the bullish mood that prevailed a day ago. The message volume spiked to ‘extremely high’ as the retail discussed the company’s result.
Yelp stock ended Thursday’s after-hours session up 2.34% to $41.50. The stock is up about 5% so far this year.
For updates and corrections, email newsroom[at]stocktwits[dot]com
Stay updated with all the latest Business News, including market trends, Share Market News, stock updates, taxation, IPOs, banking, finance, real estate, savings, and investments. Track daily Gold Price changes, updates on DA Hike, and the latest developments on the 8th Pay Commission. Get in-depth analysis, expert opinions, and real-time updates to make informed financial decisions. Download the Asianet News Official App from the Android Play Store and iPhone App Store to stay ahead in business.