What's your position on ?
Why are you ish?
You voted ish on Vote again
Posts appear on the My Feed page of subscribers to this ticker
Mon, Feb. 8, 2:01 PM
- After coming off a halt following the premature release of its Q4 report, Yelp YELP is down sharply, as it was prior to the report. The Nasdaq is down 3.2%.
- In addition to forecasting ~26% Y/Y 2016 sales growth, Yelp is guiding for adjusted EBITDA to rise to $90M-$105M from 2015's $69.1M; markets may have been hoping for stronger EBITDA growth guidance. Q4 adjusted EBITDA was $17.5M (below guidance of $20M-$24M), and Q1 guidance is at $10M-$12M.
- Q4 metrics: Cumulative reviews +34% Y/Y to 95M, after growing 35% in Q3. Local ad accounts +32% to 111K vs. +37% in Q3. App unique devices (i.e. the # of unique mobile devices accessing Yelp's apps) +38% to 20M vs. +39% in Q3. Yelp claims app users "were more than 10 times as engaged as website users based on number of pages viewed." Diners seated via restaurant reservation platform SeatMe rose 120% Y/Y.
- Top-line performance: Local ad revenue +35% Y/Y to $125.9M. Brand ad revenue -18% to $7.1M; Yelp has finished phasing out brand ad sales, and won't record any in 2016. Transaction revenue up 10x Y/Y to $14M thanks to the Eat24 acquisition; Eat24's sales were up 80%. Other revenue flat at $6.8M.
- Financials: GAAP costs/expenses +57% Y/Y (exceeding revenue growth of 40%) to $160.1M, with sales/marketing spend rising 63% to $87.5M. Cost of revenue totaled $15M, R&D spend $29M, G&A $20.7M, and depreciation/amortization $8M. Yelp ended 2015 with $371M in cash, $16M in restricted cash, and no debt.
- For those wondering, Yelp says its earnings were released early due to "a vendor error by PR Newswire."
- Yelp's results/guidance, earnings release
Mon, Feb. 8, 1:22 PM
- Yelp (NYSE:YELP): Q4 EPS of $0.11 beats by $0.14.
- Revenue of $153.7M (+39.9% Y/Y) beats by $1.3M.
- Expects Q1 revenue of $154M-$157M (+31% Y/Y at the midpoint) vs. a $154.4M consensus.
- Expects 2016 revenue of $685M-$700M (+26% Y/Y at the midpoint) vs. a $687.4M consensus.
- CFO Rob Krolik will be stepping down in the coming months. A search will be carried out to find a successor.
- Shares are halted.
- Press Release
- Update (1:39PM ET): Yelp is down 2.8% after resuming trading. Shares were down more sharply earlier today.
Mon, Feb. 8, 10:43 AM
- Ahead of this afternoon's Q4 report, YELP has tumbled to new post-IPO lows on an ugly morning for equities. 1.82M shares have already been traded; the 3-month daily average is 2.46M.
- The local reviews leader is now just a little more than $1 away from 2012's $15 IPO price. The WSJ published a cautious column over the weekend, criticizing Yelp's relatively low revenue/employee (a result of its heavy reliance on local businesses for ad sales) and dependence on search traffic.
- Shares now go for only 1.8x a 2016 revenue consensus of $687.4M.
Sun, Feb. 7, 5:35 PM
Fri, Feb. 5, 12:43 PM
- On a day the Nasdaq is down 2.4%, Internet stocks are seeing outsized losses after LinkedIn (down 41.3%) issued weak Q1/2016 guidance with its Q4 beat.
- The professional social networking leader forecast its corporate hiring solutions business would see slower growth in 2016 (international macro issues were blamed). It also noted display ad sales fell by a high-30s % Y/Y in Q4 amid ongoing secular industry pressures, and reported just 7% Y/Y unique visitor member growth.
- Facebook (FB -5.5%), which soared last week after blowing away Q4 estimates on the back of 57% Y/Y ad revenue growth, is among the casualties. As is Amazon (AMZN -4.9%), which sold off last week after missing Q4 estimates and issuing in-line Q1 sales guidance, is also down sharply. As is Twitter (TWTR -5.3%), which reports in five days and continues trading near post-IPO lows amid growth/engagement concerns.
- Other decliners include Yelp (YELP -7.9%), TripAdvisor (TRIP -6.3%), Expedia (EXPE -6%), LendingClub (LC -8.3%), Wix.com (WIX -6.8%), Wayfair (W -7.6%), Groupon (GRPN -4.9%), Shopify (SHOP -6.3%), and Zillow (Z -6%), as well as ad tech firms Criteo (CRTO -8.9%) and TubeMogul (TUBE -7.6%). The aforementioned companies are generally expected to post Q4 results in the coming weeks.
- Earlier: Enterprise software and security stocks hammered after Tableau/LinkedIn's earnings
Tue, Jan. 26, 1:33 PM| Tue, Jan. 26, 1:33 PM | 3 Comments
Thu, Jan. 14, 10:30 AM
- B. Riley's Sameet Sinha has downgraded YELP to Sell, and cut his target by $6 to $15. Shares have fallen to new 52-week lows.
- Sinha notes Quantcast estimates Yelp's traffic fell 13% Q/Q in Q4, a decline much larger than the 2% estimated for Q4 2014 and translating into an 8% Y/Y drop. "While management has indicated expectations for a seasonal decline in traffic in 4Q15, we believe -13% is indicative of a major problem as it implies traffic decline for the first time on a Y/Y basis." Google search algorithm changes have been weighing on Yelp's traffic for some time.
- He adds the cost of a new app install rose to $5 in Q3 from $3.30 in Q4, and thinks the trend may have continued in Q4. "This could potentially necessitate higher spend as it is a strategic imperative for YELP to develop its own sources of traffic, especially as GOOGL applies additional pressure."
- Competition from the likes of Facebook, Google, and Amazon (has been around for a while) is also mentioned. Facebook recently began prepping a searchable local services directory that leverages info and reviews on Facebook pages.
Thu, Jan. 14, 9:16 AM
Wed, Jan. 13, 2:59 PM
- It's another ugly day for stocks, with the S&P down 2.1% and the Nasdaq 2.9%. Many high-beta tech names are naturally seeing even steeper declines.
- Major decliners include driver-assistance hardware/software provider Mobileye (MBLY -6.4%), travel reviews/bookings search site TripAdvisor (TRIP -5.8%), mobile payments provider/recent IPO Square (SQ -7%), online furniture leader Wayfair (W -6.2%), craft/vintage goods marketplace Etsy (ETSY -7.2%), SMB Web services provider Wix.com (WIX -7.9%), and CAD/CAM software leader Autodesk (ADSK -7.7%).
- Others include gaming headset vendor local reviews leader Yelp (YELP -6%), Turtle Beach (HEAR -19.5%), wireless charging tech developer Energous (WATT -14.2%), cloud HR software firm Paylocity (PCTY -7.3%), e-commerce software/services firm Shopify (SHOP -8.9%), e-commerce services firm ChannelAdvisor (ECOM -8.5%), mainframe/IT services provider Unisys (UIS -7%), and car-buying site TrueCar (TRUE -6.7%).
- Previously covered: Qorvo, Cimpress, Tableau, Multi-Fineline, LendingTree, Twitter
Dec. 22, 2015, 12:06 PM
- Vague M&A chatter is once more providing a lift to YELP. Priceline (NASDAQ:PCLN) has been mentioned as a suitor this time around.
- Volume is moderate thus far: 1.01M shares vs. a 3-month daily average of 2.85M. 9.5M shares (17% of the float) were shorted as of Nov. 30.
- The rumor comes less than a week after Yelp and Priceline-owned OpenTable confirmed they've ended a multi-year partnership. Yelp bought OpenTable rival SeatMe in 2013.
- 3 months ago: Yelp higher amid vague M&A chatter, call-buying
Dec. 15, 2015, 12:42 PM
- Under the URL facebook.com/services, Facebook (FB +0.9%) has created a searchable directory (still in test mode) of local service providers such as electricians, auto repair shops, veterinarians, and spas. Browsing through category listings provides phone numbers, addresses, links to service provider Facebook pages, and average Facebook review ratings.
- In addition to standard local service providers, searches on the site turn up listings for local businesses such as restaurants, bars, and hotels. TechCrunch observes the site's search rankings suggest Facebook could be leveraging user data (e.g. which business pages a user has previously visited or reviewed) to optimize results.
- As is the norm for new product launches, Facebook isn't monetizing the service for now. Local business search and directory ads would be a natural fit. Facebook recently said it has 50M+ active business pages that collectively receive 2.5B monthly comments. Earlier this year, the company took steps to turn Messenger into a business-to-consumer communication tool.
- Local business reviews leader Yelp (YELP -4.1%) has sold off in response to Facebook's move - this isn't the first time Yelp (still dominant in its core market) has reacted this way to a Facebook product launch. Paid local services marketplace/reviews site Angie's List (ANGI +1.3%) remains up moderately on a day the Nasdaq is up 1.4%.
Nov. 27, 2015, 1:16 PM
- Yelp (YELP -1.1%) has claimed a victory in court, winning a dismissal of a lawsuit challenging the company over the quality of reviews placed on the site.
- The suit claimed that Yelp overstated the authenticity and quality of its reviews, which let Yelp insiders sell at inflated prices, but Judge Jon Tigar said reasonable Yelp investors would understand that reviews aren't firsthand -- a "common-sense understanding of what it means for a website to host user-generated content."
- Tigar said he found no basis to conclude that insider sales of $81.5M worth of stock were out of line with prior sales.
- The plaintiff, Joseph Curry, also tried to show that Yelp tried to extort ad payments from businesses in order to suppress bad or fake reviews.
Nov. 20, 2015, 2:51 PM
- YELP has topped $30 for the first time since July without any major news crossing the wires. 4.7M shares have been traded, well above a 3-month daily average of 2.9M.
- The online local reviews leader. Shares rallied last week after IAC's bid for Angie's List fueled hopes Yelp would also get an offer, and added to their gains on an RBC upgrade. They're up 23% since the IAC offer was disclosed, but still down 44% YTD.
Nov. 13, 2015, 8:45 AM
- It's a risk-reward call, says RBC Capital's Mark Mahaney, upgrading YELP to Outperform with price target boosted to $42 from $34.
- The new price target is 62% above last night's close says Mahaney, but his valuation analysis suggests maybe a 20% downside and 100%+ upside potential using Yelp's historical forward multiples.
- Other factors: There's a realistic path to local ad revenue growth stabilization; strong and improving local solution; significant value to a strategic buyer; core play on mobile and native advertising growth.
- Shares +4.25% to $27 premarket
- Previously: Yelp up 2.5% after IAC offers to buy Angie's List (Nov. 11)
Nov. 11, 2015, 5:09 PM
- YELP has risen to $25.61 after hours after Barry Diller's InterActiveCorp offered to buy Angie's List (competes with IAC's HomeAdvisor platform) for roughly $512M in cash.
- Yelp, whose local services reviews act as a free alternative to Angie's reviews, reportedly hired Goldman earlier this year to help find a buyer, but was later reported to have abandoned its sale efforts. Shares trade 75% below a March 2014 high of $101.75.
Oct. 28, 2015, 4:08 PM
- Yelp (NYSE:YELP): Q3 EPS of $0.03 beats by $0.12.
- Revenue of $143.6M (+40.2% Y/Y) beats by $2.18M.
- Expects Q4 revenue of $149.5M-$154.5M vs. a $152.1M consensus.
- Shares +8.8% after hours.
Other News & PR