Yelp Shares Tumble 6.2% as Q1 Revenue, Q2 Outlook, Miss Estimates
$Yelp Inc(YELP.US$ shares tumbled 7.2% in after-market trading as the platform for customer reviews on local businesses reported first quarter net revenue that missed analysts' estimates as it faces a "challenging environment."
The company said net revenue rose 7% to $332.7 million in the three months ended March 31. That's still below the $333.43 million expected by analysts.
The company said net revenue rose 7% to $332.7 million in the three months ended March 31. That's still below the $333.43 million expected by analysts.
Top executives at the company flagged weakness at the restaurant, retail and other (RR&O) categories of its business in their letter to shareholders.
Yelp forecast its net revenue to reach $350 million to $355 million in the second quarter. Even the higher end of that range is below the $358.4 million average estimate from analysts polled by LSEG.
"We believe macro pressures, including higher input costs, are presenting challenges for businesses in these categories, while inflationary pressures continue to impact consumer traffic," Chief Executive Officer Jeremy Stoppelman and Chief Financial Officer David Schwarzbach said in their letter to shareholders.
At the same time, the company narrowed its outlook for adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) TO $315 million to $325 million. The company still sees net revenue in the range of $1.42 billion to $1.44 billion in 2024, as it expects its services initiatives to gain traction and drive growth.
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Former editor at Bloomberg, then Lazard Asset Management. Posts aren’t investment advice. Views are just mine.
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