Yelp (YELP) Misses Q2 EPS by 3c, Q3 & FY Guidance Falls Short

Yelp (NYSE: YELP) reported Q2 EPS of ($0.02), $0.03 worse than the analyst estimate of $0.01. Revenue for the quarter came in at $133.9 million versus the consensus estimate of $133.48 million.

Yelp sees Q3 2015 revenue of $139-142 million, versus the consensus of $152.66 million.

Yelp sees FY2015 revenue of $544-550 million, versus the consensus of $571.16 million.

Business Outlook

Yelp is providing its outlook for the third quarter and lowering its outlook for the full year of 2015 based on slower sales headcount growth and the elimination of its brand advertising product.

• For the third quarter of 2015, net revenue is expected to be in the range of $139 million to $142 million, representing growth of approximately 37% compared to the third quarter of 2014. Adjusted EBITDA is expected to be in the range of $12 million to $15 million. Stock-based compensation is expected to be in the range of $16 million to $17 million, and depreciation and amortization is expected to be 5%-6% of revenue.
• For the full year of 2015, net revenue is expected to be in the range of $544 million to $550 million, representing growth of approximately 45% compared to full year 2014. Adjusted EBITDA is expected to be in the range of $72 million to $78 million. Stock-based compensation is expected to be in the range of $62 million to $64 million, and depreciation and amortization is expected to be 5%-6% of revenue

For earnings history and earnings-related data on Yelp (YELP) click here.

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