Yelp posts strong year, but weak guidance sends its stock sliding

By Jon Swartz

Yelp Inc.'s stock dropped more than 9% in extended trading Thursday after the company reported quarterly results that topped analysts' revenue and earnings estimates but offered weak guidance.

Yelp (YELP) reported fiscal fourth-quarter net income of $27.4 million, or 40 cents a share, compared with net income of $20.15 million, or 29 cents a share, in the year-ago quarter.

Net revenue was $342.4 million, compared with $309.1 million a year ago. Annual net revenue increased 12% year over year to a record $1.34 billion.

Analysts surveyed by FactSet had expected on average net income of 38 cents a share on revenue of $341 million.

"Investments in our long-term strategic initiatives have led to multiple records as local advertisers continued to see the value of Yelp's high-intent audience in 2023," Yelp Chief Financial Officer David Schwarzbach said in a phone interview. "It was the best year in our history."

Yelp offered fiscal first-quarter revenue guidance of between $330 million and $335 million, while analysts tracked by FactSet are modeling for $345 million.

Shares of Yelp have soared 43% over the past 12 months, while the broader S&P 500 index SPX has improved 23%.

-Jon Swartz

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02-15-24 2010ET

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