A narrow miss on revenue in Q1 and a dim outlook has sent Yelp (YELP -2.8%) sliding 28.4% in postmarket trade -- more than $1B off its market cap.
Its Q2 guidance for revenues of $202M-$206M is short of consensus for $215.3M and a forecast of EBITDA of $32M-$35M short of consensus for $36.9M. For the full year, a revenue forecast of $850M-$865M is short of consensus for $889.5M, and guidance for EBITDA of $130M-$145M light of an expected $160.7M.
For Q1, revenues were up 24% and CEO Jeremy Stoppelman pointed to broad accelerating traffic growth, and net loss narrowed on a GAAP basis to $4.8M.
EBITDA of $29.3M was up from a year-ago $13M, and beat an expected $26.9M.
Revenue by segment: Advertising, $177M (up 24%); Transactions, $18.1M (up 25%); Other services, $2.2M (up 107%).
In operations: Cumulative reviews grew 26% to 127M; app unique devices rose 22% to a monthly average of 26M; and paying ad accounts were up 17% to 139,000.
“While we are lowering our revenue and adjusted EBITDA outlook for the year, sales productivity has rebounded, transactions revenue has accelerated and we’ve seen promising results from our newly expanded retention efforts, giving us confidence in our ability to grow and scale in 2017 and beyond," says CFO Lanny Baker.
Founded in 2010 and based in Pittsburgh, Nowait enables users to check out real-time seating availability and remotely add their name to the waitlist. YELP had previously made a strategic investment in Nowait and integrated it into the Yelp app.