Yelp's stock is rising on strong advertising sales

By Jon Swartz

Yelp Inc.'s stock climbed 2% in extended trading Thursday after the reviews website reported quarterly results that topped analysts' revenue and earnings estimates.

The company (YELP) reported a fiscal first-quarter net loss of $1 million, or 2 cents a share, compared with a net loss of $1 million, or a penny a share, in the year-ago quarter.

Net revenue improved 13% to $312 million from $277 million a year ago. The company slightly raised its full-year sales outlook to between $1.295 billion and $1.315 billion. Analysts are forecasting about $1.32 billion, according to FactSet.

Analysts surveyed by FactSet had expected on average a quarterly net loss of 5 cents a share on revenue of $306 million.

"We can continue to generate strong advertising demand as a combination of our high-end audience telling us what they're looking for and meeting their demand," Yelp Chief Financial Officer David Schwarzbach said in an interview. He said advertising sales from Yelp's Services businesses jumped 15% year over year to a record $184 million.

Meanwhile, ad revenue from Restaurants, Retail & Other businesses increased 10% year over year to $114 million, and Home Services (moving, handymen) jumped 25%.

Shares of Yelp are flat so far this year, while the broader S&P 500 index has advanced nearly 6%.

-Jon Swartz

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05-04-23 1609ET

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