Following the bell, Yelp reported its second-quarter financial performance, including revenue of $133.9 million, and a per-share loss of $0.02. The street had expected Yelp to generate a cent in per-share net income, off revenue of $133.48 million.
Off a fraction in regular trading, Yelp is down in after-hours trading following its earnings miss. The company finished its second quarter with $181.46 million in cash and equivalents. Compared to the year-ago quarter, Yelp’s revenue is up 53 percent. On a dollar basis, Yelp generated about a $4 million loss in profit compared to the same period last year.
Looking ahead, Yelp expects to generate $139 million to $142 million in the current quarter, representing about 37 percent growth compared to the third quarter of 2014. Investors had expected that the company would generate $0.04 per share in its third quarter, and revenue of $152.16 million. Note that there is quite a gap between what Yelp has promised and what the company thinks it can do. This may explain why the shares are down.
Mobile advertising has also become a focus for Yelp’s executive team after the company decided to forgo acquisition.
“Our core local advertising business remains strong, and we are investing in Yelp’s future,” said Yelp CTO Rob Krolik in a statement. “We expect local advertising will continue to be our primary driver of growth as we work towards our goal of generating one billion dollars of revenue in 2017.”