Yelp Inc.'s stock has seen a 3% rise in extended trading on Thursday, following the announcement of their quarterly revenue and earnings that exceeded analysts' estimates. In addition to this impressive performance, Yelp has also provided strong annual sales guidance.
Consistent Growth and Positive Impact
Yelp Chief Financial Officer, David Schwarzbach, highlighted that this quarter's results mark the tenth consecutive quarter of double-digit revenue growth. Despite the challenging advertising landscape, Yelp has benefited from high-intent traffic and the trust of their affluent and educated customer base.
Financial Performance Highlights
In their fiscal third-quarter report, Yelp reported a net income of $58 million, or 79 cents a share. This represents a significant increase compared to the net income of $9.1 million, or 13 cents a share, in the same quarter last year. Net revenue has also reached a record-breaking $345 million, indicating a 12% growth from the previous year.
Analysts' Expectations Surpassed
The performance of Yelp's financials exceeded the expectations of analysts surveyed by FactSet. The average forecast was for net earnings of 34 cents a share on revenue of $341 million. Yelp delivered better-than-expected results with their strong earnings per share and higher revenue.
Yelp executives have expressed confidence in their future performance. They anticipate annual revenue to reach between $1.332 billion and $1.337 billion. Similarly, analysts surveyed by FactSet project revenue of $1.33 billion for the year.
Investor sentiment is positive towards Yelp, leading to a notable increase of 57% in their stock value this year. Comparatively, the broader S&P 500 index has witnessed a 12% increase.
As Yelp continues to demonstrate consistent growth and earnings that surpass expectations, its strong market performance and optimistic outlook indicate a promising future for the company.
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