Yelp's revenue rises despite persisting challenges to restaurant industry
By Sabela Ojea
Yelp (YELP) logged higher revenue in the latest quarter from growth across its home-services business, which offset continued softness across the restaurant industry.
The review site, which generates the vast majority of its revenue from advertising, on Thursday posted a second-quarter net profit of $38 million, or 54 cents a share, compared with $14.7 million, or 21 cents a share, for the same period a year earlier. Analysts polled by FactSet had forecast earnings of 27 cents a share.
Revenue rose 5.9%, to $357 million, beating the $353 million expected by Wall Street, according to FactSet, and ahead of management expectations of $350 million to $355 million.
"While challenges in the operating environment for restaurants, retail and other businesses persisted, our services categories maintained their momentum, with double-digit revenue growth," Chief Executive Jeremy Stoppelman and Finance Chief David Schwarzbach said in a letter to shareholders.
The company said that advertising revenue coming from its services businesses jumped 11%, to a record $223 million, while restaurant advertising fell 2.7% amid competitive pressures from food ordering and delivery providers.
Softness in restaurants and retail business offset growth in services, leading to a decline in paying advertising locations of 6%, to 531,000.
"Yelp's second quarter results demonstrate the profitability of our broad-based local ad platform amid macro headwinds," Stoppelman and Schwarzbach added.
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
08-08-24 1853ET
Copyright (c) 2024 Dow Jones & Company, Inc.-
September Jobs Report Forecasts Show Moderate Hiring Gains
-
Port Strike a Headache for Shippers but a Potential Tailwind for Certain US Transport Stocks
-
13 Charts on Q3′s Roller-Coaster Rally for Stocks and Bonds
-
5 Stocks to Buy Instead of Overpriced US Equities
-
Q4 Stock Market Outlook: Where We See Opportunities for Investors
-
Markets Brief: Non-Farm Payrolls in the Spotlight Again
-
6 Top-Performing Large-Growth Funds
-
What’s the Difference Between the CPI and PCE Indexes?
-
10 Top-Performing Dividend Stocks of Q3 2024
-
33 Undervalued Stocks
-
Communication Services: Cable’s Broadband Dominance Isn’t as Strong as It Once Was
-
Technology: Strength Continues, With Software Presenting the Best Buying Opportunities
-
Best- and Worst-Performing Stocks of Q3 2024
-
Top Stocks to Own From the Best Fund Managers
-
2 Cheap Stocks Top Managers Have Been Buying
-
The 10 Best Companies to Invest in Now