Shares of Yelp Inc. (NYSE:YELP) fell on Friday, as profit-taking more than offset buying on the back of the San Francisco company’s strong corporate results that beat Wall Street expectations.
Yelp was down 4.71% to US$45.50 in morning trade.
For the quarter ended March 31, Yelp posted a loss of US$0.01per share on revenue of US$223.1mln. The company handily beat the Street consensus number which was a loss of $0.05 per share on revenue of US$220.1mln.
“We had a great start to 2018, accelerating advertising revenue growth and attracting a record number of new advertisers in the first quarter,” said Jeremy Stoppelman, Yelp’s co-founder and CEO.
Yelp started out by giving users a way to see what others have said about a business or what dishes are popular at a restaurant. Since its founding in 2004, Yelp has amassed 127 million reviews in areas such as retail, restaurants, home and local services and beauty in more than 30 countries.
Users can now make restaurant reservations, get price quotes from businesses, hold a place in line for a restaurant, get food delivered and earn cash from Yelp’s loyalty program.
For its reservation system Yelp charges restaurants a flat monthly fee but its main bread and butter comes through local advertisers.
Brighter Outlook
The company said it expects second quarter revenue of US$230mln to US$233mln. The current consensus revenue estimate is US$231.1mln for the quarter ending June 30, 2018.
The company also raised its full-year revenue and outlook by forecasting revenue of US$943mln to US$967mln.
The company's previous guidance was revenue of $935mln to US$965mln and the current consensus estimate is revenue of US$953.6mln for the year ending December 31, 2018.