YELP

As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the social networking industry, including Yelp (NYSE:YELP) and its peers. Businesses must meet their customers where they are, which over the past decade has come to mean on social networks. In 2020, users spent over 2.5 hours a day on social networks, a figure that has increased every year since measurement began. As a result, businesses continue to shift their advertising and marketing dollars online. The 5 social networking stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.4% while next quarter’s revenue guidance was 1% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8% since the latest earnings results. Founded by PayPal alumni Jeremy Stoppelman and Russel Simmons, Yelp (NYSE:YELP) is an online platform that helps people discover local businesses through crowd-sourced reviews. Yelp reported revenues of $361.5 million, flat year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ EBITDA and revenue estimates. “We continued to accelerate Yelp's AI transformation in the first quarter,” said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. Yelp delivered the slowest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 18.9% since reporting and currently trades at $23.11. Is now the time to buy Yelp? Access our full analysis of the earnings results here, it’s free. Founded in 2005 by two University of Virginia roommates, Reddit (NYSE:RDDT) facilitates user-generated content across niche communities (called subreddits) that discuss anything from stocks to dating and memes. Reddit reported revenues of $663.4 million, up 69.1% year on year, outperforming analysts’ expectations by 8.8%. The business had a very strong quarter with a solid beat of analysts’ EBITDA and revenue estimates. Reddit scored the biggest analyst estimate beat and fastest revenue growth am...

Shareholders of Yelp would probably like to forget the past six months even happened. The stock dropped 24.6% and now trades at $23.00. This may have investors wondering how to approach the situation. Is there a buying opportunity in Yelp, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Despite the more favorable entry price, we’re cautious about Yelp. Here are three reasons why there are better opportunities than YELP, plus one stock we’d rather own. Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last three years, Yelp grew its sales at a tepid 6.1% compounded annual growth rate. This fell short of our benchmark for the consumer internet sector. Forecasted revenues by Wall Street analysts signal a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Yelp’s revenue to stall.This projection doesn’t excite us and suggests its products and services will face some demand challenges. Unlike enterprise software that’s typically sold by dedicated sales teams, consumer internet businesses like Yelp grow from a combination of product virality, paid advertisement, and incentives. It’s relatively expensive for Yelp to acquire new users as the company has spent 45.3% of its gross profit on sales and marketing expenses over the last year. This inefficiency indicates that Yelp operates in a competitive market and must continue investing to maintain an acceptable growth trajectory. Yelp isn’t a terrible business, but it isn’t one of our picks. After the recent drawdown, the stock trades at 4.6× forward EV/EBITDA (or $23.00 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We’re fairly confident there are better investments elsewhere. Let us point you toward one of our top digital advertising picks. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flag...

Yelp’s first quarter saw mixed results, with the company achieving flat sales despite surpassing Wall Street’s revenue expectations. The market responded negatively, reflecting concerns about persistent challenges in its core advertising business. Management attributed the quarter’s sluggishness to ongoing macroeconomic pressures affecting local businesses and highlighted a notable decline in paying advertising locations and ad clicks. CEO Jeremy Stoppelman commented, “Local businesses have continued to face a challenging economic environment,” and pointed to pressure on ad budgets, especially in categories tied to consumer demand. Is now the time to buy YELP? Find out in our full research report (it’s free). Revenue: $361.5 million vs analyst estimates of $353.7 million (flat year on year, 2.2% beat) Adjusted EPS: $0.66 vs analyst estimates of $0.66 (in line) Adjusted EBITDA: $79.35 million vs analyst estimates of $61.85 million (22% margin, 28.3% beat) The company reconfirmed its revenue guidance for the full year of $1.47 billion at the midpoint EBITDA guidance for the full year is $320 million at the midpoint, below analyst estimates of $322.4 million Operating Margin: 7.6%, in line with the same quarter last year Market Capitalization: $1.26 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Sergio Segura (KeyBanc): asked why Yelp maintained its full-year outlook despite a strong first quarter. CFO David Schwarzbach explained that continued macro uncertainty, including the effects of the Middle East conflict, led to caution regarding the pace of recovery. Cory Carpenter (JPMorgan): inquired about the drivers behind anticipated EBITDA margin growth. Schwarzbach cited both revenue expansion from new AI offerings and operational efficiencies, while CEO Jeremy Stoppelman described productivity gains from AI tools in product development. Colin Sebastian (Baird): requested detail on the impact of Yelp Assistant on conversion rates and advertiser ROI. Stoppelman reported early positive signals, with 15% of Request-A-Quote projects now stemming from the AI assistant, and expects further gains as adoption grows. Ni...

The stock was sluggish on the back of Yelp Inc.'s (NYSE:YELP) recent earnings report. Along with the solid headline numbers, we think that investors have some reasons for optimism. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In high finance, the key ratio used to measure how well a company converts reported profits into free cash flow (FCF) is the accrual ratio (from cashflow). The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. This ratio tells us how much of a company's profit is not backed by free cashflow. Therefore, it's actually considered a good thing when a company has a negative accrual ratio, but a bad thing if its accrual ratio is positive. While having an accrual ratio above zero is of little concern, we do think it's worth noting when a company has a relatively high accrual ratio. Notably, there is some academic evidence that suggests that a high accrual ratio is a bad sign for near-term profits, generally speaking. Over the twelve months to March 2026, Yelp recorded an accrual ratio of -0.27. That implies it has very good cash conversion, and that its earnings in the last year actually significantly understate its free cash flow. In fact, it had free cash flow of US$281m in the last year, which was a lot more than its statutory profit of US$138.9m. Yelp's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. As we discussed above, Yelp's accrual ratio indicates strong conversion of profit to free cash flow, which is a positive for the company. Because of this, we think Yelp's underlying earnings potential is as good as, or possibly even better, than the statutory profit makes it seem! Better yet, its EPS are growing strongly, which is nice to see. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a...

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Jeremy Stoppelman Chief Financial Officer — David Schwarzbach Chief Operating Officer — Jed Nachman Senior Director, Investor Relations — Kate Krieger Kate Krieger: Good afternoon, everyone, and thanks for joining us on Yelp's First Quarter 2026 Earnings Conference Call. Joining me today are Yelp's Chief Executive Officer, Jeremy Stoppelman; Chief Financial Officer, David Schwarzbach; and Chief Operating Officer, Jed Nachman. We published a shareholder letter on our Investor Relations website and with the SEC and hope everyone had a chance to read it. We'll provide some brief opening comments and then turn to your questions. Now I'll read our safe harbor statement. We'll make certain statements today that are forward-looking and involve a number of risks and uncertainties that could cause actual results to differ materially. Please note that these forward-looking statements reflect our opinions only as of the date of this call, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. In addition, we are subject to a number of risks that may significantly impact our business and financial results. Please refer to our SEC filings as well as our shareholder letter for a more detailed description of the risk factors that may affect our results. During our call today, we may discuss adjusted EBITDA, adjusted EBITDA margin and free cash flow, which are non-GAAP financial measures. These measures should not be considered in isolation from or as a substitute for financial information prepared in accordance with generally accepted accounting principles. In our shareholder letter released this afternoon and our filings with the SEC, each of which is posted on our Investor Relations website, you will find additional disclosures regarding these non-GAAP financial measures as well as historical reconciliations of GAAP net income or loss to both adjusted EBITDA and adjusted EBITDA margin and a historical reconciliation of GAAP cash flows from operating activities to free cash flow. And with that, I will turn the call over to Jeremy. Jeremy Stoppelman: Thanks, Kate, and welcome, everyone. Yelp continued to accelerate its AI transformation in the first quarter. We are mak...

Net Revenue increased by 1% year over year to $361 million Net Income decreased from the prior year to $18 million, reflecting a 5% margin Adjusted EBITDA1 decreased 7% year over year to $79 million, reflecting a 22% margin Reaffirms full-year 2026 outlook: Expects Net Revenue in the range of $1.455 billion to $1.475 billion and Adjusted EBITDA in the range of $310 million to $330 million2 SAN FRANCISCO, May 07, 2026--(BUSINESS WIRE)--Yelp Inc. (NYSE: YELP), the company that connects people with great local businesses, today posted its financial results for the first quarter ended March 31, 2026 in the Shareholder Letter available on its Investor Relations website at yelp-ir.com. "We continued to accelerate Yelp's AI transformation in the first quarter," said Jeremy Stoppelman, Yelp's co-founder and chief executive officer. "Even as local businesses continued to navigate a challenging operating environment, we made meaningful progress against our strategic priorities to reconceive Yelp around answers and actions, deliver new AI tools for businesses, and extend the reach of our trusted content through data licensing. We recently rolled out more than 35 new product updates and features, including a new Yelp Assistant that now works across all categories. Product momentum, strong traction from Hatch and Yelp Host, and a growing partner ecosystem give me confidence in Yelp's AI transformation and our ability to drive long-term profitable growth." "First quarter net revenue of $361 million and an adjusted EBITDA margin of 22% both exceeded the high end of our outlook," said David Schwarzbach, Yelp's chief financial officer. "While local economies remained pressured, other revenue grew 75% year over year to a record $29 million. Looking ahead, we see a significant opportunity to drive growth in other revenue by scaling Yelp Host, Hatch, and data licensing. We are targeting an annual run rate of $250 million in other revenue by the end of 2028." Quarterly Conference Call Yelp will host a live webcast today at 2 p.m. Pacific Time to discuss the first quarter financial results and outlook for the second quarter and full year 2026. The webcast of the Q&A can be accessed on the Yelp Investor Relations website at yelp-ir.com. A replay of the webcast will be available at the same website. About Yelp Yelp Inc. (yelp.com) is a community-driven platform that connects people...

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 1% revenue growth to a bifurcated performance where strong AI-driven 'other revenue' offset headwinds in traditional advertising categories. The 11% decline in Restaurant, Retail & Other (RR&O) ad revenue was driven by lower consumer demand and a challenging macroeconomic environment for local businesses. Services ad revenue grew 1% year-over-year, supported by a slight increase in consumer demand and the growing adoption of the AI-powered Yelp Assistant. The acquisition of Hatch in February added a high-growth revenue stream, with an annual run rate exceeding $34 million in March, representing 92% year-over-year growth. Strategic focus has shifted toward 'other revenue' streams, including data licensing with partners like OpenAI and Amazon, which grew 75% year-over-year. Operational efficiency is being driven by AI adoption in engineering, where management noted that tasks previously taking three months are now completed in three weeks. The 8% increase in average CPC reflects a dynamic where advertiser demand continues to outpace consumer demand despite broader economic pressures. Management targets an annual run rate of $250 million in 'other revenue' by the end of 2028, more than doubling the current run rate. Full-year guidance assumes the challenging economic environment for local businesses will persist, with specific caution regarding advertiser budget volatility seen in late Q1. The company expects to reduce stock-based compensation expense to less than 6% of revenue by the end of 2027 to improve GAAP profitability. Future growth initiatives include expanding Yelp Host to enable food ordering over the phone, targeting a $1 billion market opportunity in the U.S. Guidance for Q2 and the full year reflects continued investment in AI transformation, which is expected to drive sequential expense increases. Management flagged a specific dynamic in March where the conflict in the Middle East negatively impacted advertiser budgets, contributing to cautious forward guidance. The company reported a 6% year-over-year decline in paying advertising locations, totaling 485,000, as local businesses face ongoing operational pressures. Adjusted EBITDA outlook excludes approximately $13 milli...

Yelp (YELP) shares were down 9% in Friday trading after the company reported lower Q1 earnings from

Yelp (YELP) reported $361.46 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 0.8%. EPS of $0.36 for the same period compares to $0.36 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $354.57 million, representing a surprise of +1.94%. The company delivered an EPS surprise of +38.46%, with the consensus EPS estimate being $0.26. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Yelp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Paying Advertising Locations: 485 thousand versus 492.5 thousand estimated by three analysts on average. Paying Advertising Locations - Restaurants, Retail & Other: 235 thousand compared to the 236.08 thousand average estimate based on three analysts. Paying Advertising Locations - Services: 250 thousand versus 256.42 thousand estimated by three analysts on average. Net revenue- Advertising: $332.49 million versus $332.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.8% change. Net revenue- Other services: $28.97 million versus $22.4 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +75.2% change. Net revenue- Advertising revenue- Services: $233.79 million versus the three-analyst average estimate of $233.42 million. The reported number represents a year-over-year change of +1%. Net revenue- Advertising revenue- Restaurants, Retail & Other: $98.7 million compared to the $100.13 million average estimate based on three analysts. The reported number represents a change of -10.6% year over year. View all Key Company Metrics for Yelp here>>> Shares of Yelp have returned +11.5% over the past month versus the Zacks S&P 500 composite's +11.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want th...

SAN FRANCISCO (AP) — SAN FRANCISCO (AP) — Yelp Inc. (YELP) on Thursday reported first-quarter net income of $17.7 million. On a per-share basis, the San Francisco-based company said it had net income of 30 cents. Earnings, adjusted for costs related to mergers and acquisitions, were 36 cents per share. The results topped Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 26 cents per share. The online business reviews company posted revenue of $361.5 million in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $354.6 million. Yelp expects full-year revenue in the range of $1.46 billion to $1.48 billion. _____ This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on YELP at https://www.zacks.com/ap/YELP

Yelp (YELP) came out with quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.26 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +38.46%. A quarter ago, it was expected that this online business reviews company would post earnings of $0.47 per share when it actually produced earnings of $0.61, delivering a surprise of +29.79%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Yelp, which belongs to the Zacks Internet - Content industry, posted revenues of $361.46 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.94%. This compares to year-ago revenues of $358.53 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Yelp shares have lost about 6.8% since the beginning of the year versus the S&P 500's gain of 7.6%. While Yelp has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Yelp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here....

(Bloomberg) -- CoreWeave Inc. shares are on a scorching run in 2026 as demand for computing capacity to power artificial intelligence keeps growing. But now investors want to see some proof that the neo-cloud provider is executing on its ambitious plans. Most Read from Bloomberg Billionaire Duke of Westminster to Sell £700 Million of US Real Estate Assets US Has Opened a Passage Through Hormuz, Central Command Says DOJ Plans Intervention in Trump Supreme Court Carroll Appeal China Asks Banks to Pause New Loans to US-Sanctioned Refiner Sony to Pay Almost $4 Billion for Bieber, Neil Young Catalog The chance arrives when CoreWeave reports earnings after the bell on Thursday. Recent results from the biggest AI spenders like Alphabet Inc. and Meta Platforms Inc. made it clear that the need for computing power is insatiable as capital expenditures continue to rise. Considering the company rents access to AI infrastructure featuring the latest chips from Nvidia Corp., that plays right into its hands. “There is an insane amount of demand for AI compute,” said Tejas Dessai, director of thematic research at Global X ETFs. “The backdrop is extremely positive for CoreWeave.” Investors will be closely monitoring CoreWeave’s revenue acceleration, its outlook for the rest of the year and its backlog heading into 2027, he said. The stock is up 78% this year and a stunning 218% since the Livingston, New Jersey-based company went public in March 2025. The latest rally got going roughly a month ago as investors regained faith in the AI trade and CoreWeave announced deals with Meta, Anthropic PBC and Jane Street Group in quick succession. CoreWeave shares were down as much as 9.1% in intraday trading Thursday after rallying 7.9% on Wednesday. Of the 36 analysts tracked by Bloomberg who follow CoreWeave, 23 have buy ratings on the stock and only two have sells. But their average 12-month price target of $131 is below where the shares closed Wednesday, even though it’s been rising over the past six months. Wall Street expects the company to report revenue of nearly $2 billion in the first quarter, twice what it posted a year ago, and a loss of $1.20 per share, which would be an improvement from a loss of $1.49 a share in the first quarter of 2025. CoreWeave’s revenue backlog was nearly $67 billion as of Dec. 31, and the recent deals should raise its remaining performance obligati...