Yelp: You'll Be Sorry You Missed It
Futuristics • 30 Comments
Futuristics • 30 Comments
Wed, Jul. 20, 12:16 PM
- Yelp (NYSE:YELP) has turned higher, up 1.7%, after opening low following a downgrade at Citigroup.
- The firm bumped its price target, though, to $31 from $27, implying 6% upside from yesterday's closing. Shares have doubled up from February's 52-week low of $14.53.
- That's despite no change to consensus forecasts, notes Citi's Mark May, which means Yelp's now more in line with comps. Meanwhile, management has downplayed positive growth in ad revenues (making surprises less likely), and user mobile and transaction revenue growth slowed more than expected.
- Earnings also face a risk so long as margins stay under pressure: Company expectations "assume a significant increase in margins/leverage in 2H16."
Wed, Jul. 13, 11:57 AM
- While the Street has reasonable expectations for H2 of this year, too high of a bar has been set for 2017 and 2018, say analyst Peter Stabler and team, downgrading Yelp (YELP -3.9%) to Underperform from Market Perform. The price target range is trimmed by $1 at both ends to $21-$23 (current price is $29).
- They take note of increasing competition and challenges associated with the CPC (cost-per-click) migration. By Stabler and team's figuring, Yelp needs to serve between 2x and 10x as many impressions to generate the same level of ad revenue vs. CPM packages.
Mon, Jun. 20, 7:11 AM
- Deutsche Bank raises Yelp (NYSE:YELP) shares to Buy from Hold, while increasing its price target on the stock to $33 from $26.
- The firm cites "stabilized salesforce productivity, more confidence in management, and improvements in ad units and systems bolstering our long-term outlook."
- YELP +2.2% premarket
Fri, May 6, 3:56 PM
- Yelp (NYSE:YELP) has gained 23.2% today after yesterday's earnings showed strong guidance and a revenue beat paced by big increases in local revenue.
- Analysts came in with boosted price targets in response. RBC Capital, already bullish on the stock, raised its target to $36 from $33 (implying greater than 36% upside even from current price), and Mizuho and MKM Partners have each raised price targets to $24 (below today's price, but 12% higher than yesterday's close).
- Deutsche Bank raised to $26, speculating whether the standout quarter might be "the beginning of a run with estimates moving higher."
- There are cautions: "The company noted special promotions around the self-serve channel that suggest the Q/Q growth in LAA (local advertising accounts) accounts may not be sustainable," says analyst Lloyd Walmsley. Meanwhile, a change in CFO to Lanny Baker effective on Monday always presents some guidance risk; he's a strong choice, but "any transition poses some risk."
- Now read Yelp: Local Game Changer »
Fri, May 6, 12:45 PM
Fri, May 6, 9:11 AM
Thu, May 5, 5:35 PM
Thu, May 5, 4:36 PM
- Yelp (YELP -1%) has gained 7% in immediate after-hours trade after its Q1 earnings beat expectations and featured upbeat forward guidance.
- Revenues grew 34% Y/Y; excluding brand advertising revenue, sales grew 42%. The company lost $15.5M on a GAAP basis, but non-GAAP income came to $0.08/share vs. expectations for $0.03/share.
- Local revenue growth hit 40%, to $138.1M. Transactions revenue was $14.5M, mainly due to acquiring Eat24 in Q1 2015.
- About 21M unique devices on average accessed the mobile app each month in Q1, up 32%.
- The company guided to Q2 revenues of $167M-$171M (vs. consensus for $167.5M) and EBITDA of $21M-$25M (vs. $21.2M consensus). For the full year, revenues are forecast at $690M-$702M (vs. expected $691M) -- about 27% growth at the midpoint -- and EBITDA is expected at $93M-$105M (vs. $94.9M expected).
- Press Release
Thu, May 5, 4:17 PM
Tue, May 3, 9:15 AM
Mon, May 2, 5:04 PM
- David Einhorn has reportedly made positive remarks about YELP in his Q1 letter to Greenlight Capital investors.
- In February, Greenlight disclosed it took a 380K-share position in the local reviews leader in Q4. Greenlight's Q1 13-F filing (due later this month) will show how many Yelp shares the firm owned at the end of March.
- Yelp is up 6% after hours to $22.79.
- Earlier: Cantor argues Yelp's local ad opportunity is substantial
Wed, Mar. 9, 9:15 AM
- Gainers: LINE +27%. ATSG +24%. REXX +21%. DNR +19%. CRC +17%. BUFF +14%. LNCO +14%. BIOC +14%. SXE +14%. CJES +14%. SGY +14%. BETR +11%. AMRN +10%. BTE +9%. DANG +9%. BCEI +8%. GGB +7%. WLL +7%. SDLP +7%. EXPR +7%. CLF 6%. PBR 6%. CHK 6%. PBR.A 5%.
- Losers: SDRL -13%. DSX -9%. BPT -9%. GRPN -5%. PLNT -5%. YELP -5%.
Wed, Mar. 9, 8:17 AM
- UBS lowers Yelp (NYSE:YELP) to Sell from Neutral, stating that the consumer review website operator has lagged peers in user growth, product innovation, and technology investments.
- The firm currently has a price target of $17 on the stock, implying a downside of 20%.
- YELP -4.1% premarket
Fri, Feb. 19, 12:39 PM
- Arguing risk/reward is favorable and that the local ad market "represents an immense opportunity" for the company, Tigress Financial has upgraded Yelp (YELP +4.1%) to Buy.
- Shares are adding to the Wednesday gains seen following news David Einhorn's Greenlight Capital took a stake in Yelp in Q4. They sold off post-earnings last week, in spite of a Q4 beat and good sales guidance.
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, 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.
Yelp, Inc. hosts an online database of user-generated reviews of local businesses. It provides reviews on local businesses, which include restaurants, boutiques and salons, dentists, mechanics and plumbers. The company provides multiple free and paid advertising solutions to engage with... More
Industry: Internet Information Providers
Country: United States
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