Yelp (YELP) Posts Surprise Q1 Profit; Offers Q2 Revenue Outlook

Yelp (NYSE: YELP) reported Q1 adjusted EPS of $0.08, $0.24 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $158.6 million versus the consensus estimate of $155.57 million.

Business Highlights

• Community: In March 2016, Yelp achieved a major milestone, surpassing 100 million cumulative reviews. By the end of the first quarter, Yelp had 102 million cumulative reviews, representing growth of 31% compared to the same period last year. As of March 31, 2016, approximately 50% of reviews on Yelp had been added in the last two and a half years.
• App Engagement: Approximately 21 million unique devices accessed Yelp via the mobile app on a monthly average basis in the first quarter of 2016, an increase of 32% compared to the same period in 2015. App users viewed approximately 70% of page views in the first quarter and were more than 10 times as engaged as website users, as measured by number of pages viewed.
• Local revenue: Local revenue growth accelerated to 40% year over year to $138.1 million driven by continued strength in Yelp’s recurring revenue base, strong sales team results, and better than expected ad budget fulfillment. Yelp’s national business comprised approximately 20% of local revenue in the first quarter of 2016.

GUIDANCE:

Yelp sees Q2 2016 revenue of $167 million - $171 million, versus the consensus of $167.7 million.

Yelp sees FY2016 revenue of $690-702 million, versus the consensus of $691.4 million.

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

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