YELP Earnings Prediction
The chart below shows how YELP performed 10 days before and after its earnings report, based on data from the past quarters. Typically, YELP sees a +1.84% change in stock price 10 days leading up to the earnings, and a -1.09% change 10 days following the report. On the earnings day itself, the stock moves by -0.74%. This data can give you a slight idea of what to expect for the next quarter's release.
YELP Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
361.95M
5.72%
0.45%
Gross Margin
87.61%
-0.83%
-0.93%
Operating Margin
15.11%
14.90%
3.56%
Net Margin
11.66%
45.75%
9.28%
EPS
0.62
72.22%
10.71%
No Data Available
YELP Earnings Analysis
Yelp Inc Corporation (YELP.N) Earnings Conference Call
Positive
Record Revenue Achievement: Yelp Inc. reported a record net revenue of $1.41 billion in 2024, marking a 6% year-over-year increase.
Net Income Growth 34%: The company achieved a strong profitability with a net income growth of 34% year over year, reaching $133 million.
EBITDA Growth and Management: Yelp's adjusted EBITDA increased by 8% year over year to $358 million, reflecting effective expense management.
Services Revenue Growth: The services category saw significant growth, with revenue up 11% year over year to a record $879 million, driven by the home services category which grew approximately 15%.
AI Chatbot Impact: The introduction of the AI chatbot, Yelp Assistant, led to a 50% increase in project submissions from Q3 to Q4.
Consumer Project Growth: Consumer projects increased by approximately 25% year over year, with a notable 30% growth in Q4 despite minimal paid search spending.
AI-Driven Ad Performance: Yelp introduced smart selection, an AI-powered feature that optimized ad performance, contributing to a 6% increase in ad clicks year over year.
User Review Growth: Yelp users contributed 21 million new reviews in 2024, bringing the total to 308 million cumulative reviews, a 7% increase from the prior year.
Negative
Revenue Decline in Sectors: - Revenue from restaurant, retail, and other categories declined, with RRNO revenue down 3% year over year to $470 million, indicating challenges in these sectors.
Category Performance Divergence: - Despite overall revenue growth, the divergence in performance across categories suggests instability, particularly in the restaurant and retail sectors.
Inefficient Investment Strategy: - The company reduced spending on acquiring services projects through paid search due to unsatisfactory returns, highlighting potential inefficiencies in their investment strategy.
User Engagement Stagnation: - Overall traffic levels remained flat compared to 2023, suggesting stagnation in user engagement despite new features and updates.
Ad Clicks and Pricing Power: - The flat average cost per click (CTC) for the year indicates that while ad clicks increased, the pricing power may not be improving, which could affect future revenue growth.
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YELP Earning Call Sentiment
Yelp Inc. (NYSE:YELP) Q4 2024 Earnings Call Transcript
YELP.N
-2.38%Positive
The earnings call reveals mixed signals: strong financial growth in net income and adjusted EBITDA, but challenges in RRNO revenue and flat traffic levels. The Q&A section highlights competitive pressures and management's lack of clarity on future contributions from RepairPal and AI impacts, which could introduce uncertainty. Despite a share repurchase program, the lack of clear guidance and economic challenges in key sectors suggest a cautious market response. Given the market cap and mixed factors, a neutral stock price movement is anticipated.
