Yelp Inc. generated record revenue for a fifthstraight quarter, and Chief Financial Officer David Schwarzbach told MarketWatch on Thursday that resilient ad-sales trends continue in the current quarter.
“Advertisers and consumers continue to navigate a complex macro environment, and are using our service to connect them to trusted local businesses,” Schwarzbach said in an interview.
reported third-quarter net income of $9.1 million, or 13 cents a share, compared with net income of $18.1 million, or 23 cents a share, in the same quarter a year ago. Net revenue improved 15% to $308.9 million from $269.2 million last year.
Analysts polled by FactSet expected net income of 21 cents a share on revenue of $308 million. Yelp’s stock initially rose over 4% in after-hours trading immediately following the release of the results, after declining 1.3% to $36.33 in regular trading.
Record advertising revenue from Yelp’s Services businesses ($181 million, up 15% year-over-year), and Restaurants, Retail & Other businesses ($113 million, up 13%) led sales.
Yelp narrowed its annual net revenue guidance to between $1.185 billion and $1.195 billion in 2022. Analysts are forecasting $1.197 billion, according to FactSet.
The results underscore continued ad demand at Yelp and offered much-needed relief to investors following some disappointing financial numbers from Alphabet Inc.’s
Google, Facebook parent company Meta Platforms Inc.
and Snap Inc.
Those companies, who rely heavily on advertising, have been battered by a confluence of inflation, foreign-exchange tailwinds, the war in Ukraine and a deepening recession.
Yelp shares are flat in 2022; the broader S&P 500 index
is down 22%.