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Yelp (YELP -10.9%) has plunged after delivering a Q3 beat and in-line Q4 guidance. The fact...

Yelp (YELP -10.9%) has plunged after delivering a Q3 beat and in-line Q4 guidance. The fact sales/marketing expenses totaled 58.5% of revenue, and revenue per new business account fell 11%, is likely raising fresh concerns about the operating leverage in Yelp's business model. Yelp noted on its earnings call its mobile apps were used on 8M devices/month in Q3, up from 7.2M in Q2. Total monthly unique visitors rose 7% Q/Q and 37% Y/Y to 83.5M - the Y/Y growth rate is down from Q2's 52%. Mobile site ad pricing is said to be similar to PC ad pricing, and ads will be rolled out on Yelp's apps by the end of Q4.
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Comments (4)
  • Atkins
    , contributor
    Comments (1045) | Send Message
     
    Told you so.
    2 Nov 2012, 10:58 AM Reply Like
  • corte33
    , contributor
    Comments (78) | Send Message
     
    YELP's business model is to extort people into buying their phony reviews. There's ample evidence that their reviews are phony. Business owners who can't afford YELP's ads have positive reviews buried. Why anyone would own this dog is beyond me; there are so many good investments on the market.
    2 Nov 2012, 11:08 AM Reply Like
  • Trainer
    , contributor
    Comments (136) | Send Message
     
    "Sales/marketing expenses totaled 58.5% of revenue, and revenue per new business customer fell 11% - that's likely raising fresh concerns about the operating leverage in Yelp's business model."....

     

    The only way they can market this turkey is to beat the bushes for the dwindling supply of small business owners who are gullible/naive enough to buy Yelp's overpriced ads. This is not sustainable and will fail. It's not a question of if it will totally collapse but when.

     

    The accompanying part of the Yelp scam is directed toward investors. News of new international markets and mobile monetization are simply head fakes to distract the market from the cold, hard dismal numbers of their downward spiral. As stated in previous comments, Yelp is a scam.
    2 Nov 2012, 11:38 AM Reply Like
  • anonymos68
    , contributor
    Comments (8) | Send Message
     
    Jeremy Stoppelman CEO of Yelp is a real winner. Well, no, not really. This man runs a company that not only thrives on negative attention, but refuses to respond to legitimate concerns.

     

    I am not sure how he can sleep at night knowing that he is running such a joke of a company.

     

    Don't take my word for it. See here for yourself what others are saying about this company:

     

    http://bit.ly/YuQdAj

     

    If any of Yelp's investors or advertisers are reading this, I urge you to immediately pull out of Yelp while you still can. You do not want to be associated with a company that is being run in such a reckless manner. Yelp is a company with no core values. No core - period. Like an onion. Peel away the layers, and you'll never get to the core. I can honestly say that I do not think Yelp will be around much longer. Jeremy obviously does not care about doing the right thing. He is unethical and unprofessional.
    2 Nov 2012, 01:20 PM Reply Like
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