Yelp Raises Revenue Projection as It Swings to Quarterly Profit

Among some of the highlights, Yelp showed that its local revenue increased 41% versus its second quarter of 2015. Local revenue growth accelerated to 41 percent year-over-year, hitting $151.9 million, helped driven by robustness “across the local, national and self-serve channels and improved revenue retention”. The company also named Jed Nachman as its Chief Operating Officer. But costs rose to $174.6 million. The stock is now up 3.54 on 1.3 million shares. Revenue also came in above expectations at $173.4 million against predictions of $169.8 million, according to Bloomberg.

For the current quarter ending in October, Yelp said it expects revenue in the range of $180 million to $184 million.

The company, which past year called off plans to sell itself, has amassed millions of consumer reviews for small businesses, from restaurants to dentists’ offices and hair salons, but results have faltered amid intense competition from the likes of internet giant Google, now part of Alphabet Inc.

“We see enormous opportunity within a local advertising and transactions and we remain focused on attracting more consumers and more businesses to Yelp”, Chief Executive Jeremy Stoppelman said on a conference call. Adjusted EBITDA is expected to be in the range of $24 million to $28 million.

It’s raising its full-year outlook, forecasting revenue of $700M-$708M (28% growth at midpoint, and vs. consensus for $699.7M) and EBITDA of $100M-$108M (vs. $99.8M expected).

Shares of Yelp, whose website and app allow users to rate restaurants and a variety of other businesses, jumped more than 13 percent to $35.90 in extended trading on Tuesday. Interestingly enough, Yelp’s recover has taken this stock well above the consensus analyst price target of $27.73.