Yelp (NYSE:YELP) rose in morning trading after more local advertisements propelled the operator of consumer review website Yelp.com to post a bigger-than-expected 40% rally in quarterly revenue.
Shares gained 5% to $23.19 at 10:08 a.m. in New York, paring this year’s slump to 57%.
Revenue rose to $143.6mln for the September quarter from $102.5mln year-over-year, the San Francisco, California-based company said in a statement late on Wednesday.
Analysts on average had expected revenue of $141.4 million, according to Capital IQ.
Yelp said the number of local advertising accounts rose about 37% to 104,200 in the third quarter. Analysts were expecting the company to report 102,500 accounts in the quarter. The company gets about four-fifths of its revenue from local advertisers.
The company reported a net loss of $8.1mln, or $0.11 per share, for the third quarter, compared with a profit of $3.6mln, or $0.05 per share, a year earlier.
Transactions across the company’s platform more than doubled from the year earlier, while the number of page views rose 40%.
Yelp has been working to grow its website beyond user reviews by investing in services such as restaurant reservations, food ordering and delivery.